Document:

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                                                                     Exhibit 4.2

                                  The Gap, Inc.

                                  $200,000,000
                        8.15% Notes due December 15, 2005
                                  $500,000,000
                        8.80% Notes due December 15, 2008
                                    _________

                   Exchange and Registration Rights Agreement
                   ------------------------------------------

                                                               November 21, 2001
Goldman, Sachs & Co.,
J.P. Morgan Securities Inc.
Salomon Smith Barney Inc.
ABN AMRO Incorporated
Banc of America Securities LLC
HSBC Securities (USA) Inc.
Fleet Securities, Inc.
Mizuho International plc
Scotia Capital (USA) Inc.
US Bancorp Piper Jaffray Inc.
85 Broad Street
New York, New York 10004

Ladies and Gentlemen:

       The Gap, Inc., a Delaware corporation (the "Company"), proposes to issue
and sell to the Purchasers (as defined herein) upon the terms set forth in the
Purchase Agreement (as defined herein) its 8.15% Notes due December 15, 2005
(the "2005 Notes") and its 8.80% Notes due December 15, 2008 (the "2008 Notes").
As an inducement to the Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Purchasers thereunder, the
Company agrees with the Purchasers for the benefit of holders (as defined
herein) from time to time of the Registrable Securities (as defined herein) as
follows:

       1.   Certain Definitions. For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

       "Additional Interest" shall have the meaning assigned thereto in Section
    2(c).

       "Base Interest" with respect to the Securities shall mean the interest
    (as such interest may be adjusted pursuant to the terms of the indenture
    from time to time as a result of a downgrade of the credit ratings ascribed
    to the Securities) that would otherwise accrue on the 2005 Notes and the
    2008 Notes in each case under the terms of such series of Securities and the
    Indenture, without giving effect to the provisions of this Agreement.

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       The term "broker-dealer" shall mean any broker or dealer registered with
    the Commission under the Exchange Act.

       "Closing Date" shall mean the date on which the Securities are initially
    issued.

       "Commission" shall mean the United States Securities and Exchange
    Commission, or any other federal agency at the time administering the
    Exchange Act or the Securities Act, whichever is the relevant statute for
    the particular purpose.

       "Effective Time," in the case of (i) an Exchange Registration, shall mean
    the time and date as of which the Commission declares the Exchange
    Registration Statement effective or as of which the Exchange Registration
    Statement otherwise becomes effective and (ii) a Shelf Registration, shall
    mean the time and date as of which the Commission declares the Shelf
    Registration Statement effective or as of which the Shelf Registration
    Statement otherwise becomes effective.

       "Electing Holder" shall mean any holder of Registrable Securities that
    has returned a completed and signed Notice and Questionnaire to the Company
    in accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

       "Exchange Act" shall mean the Securities Exchange Act of 1934, or any
    successor thereto, as the same shall be amended from time to time.

       "Exchange Offer" shall have the meaning assigned thereto in Section 2(a)
    hereof.

       "Exchange Registration" shall have the meaning assigned thereto in
    Section 3(c) hereof.

       "Exchange Registration Statement" shall have the meaning assigned thereto
    in Section 2(a) hereof.

       "Exchange Securities" shall have the meaning assigned thereto in Section
    2(a) hereof.

       The term "holder" shall mean each of the Purchasers and other persons who
    acquire Registrable Securities from time to time (including any successors
    or assigns), in each case for so long as such person owns any Registrable
    Securities, and such term shall include any person that has a beneficial
    interest in any Registrable Securities in book-entry form.

       "Indenture" shall mean the Indenture, dated as of November , 2001 between
    the Company and The Bank of New York, as Trustee, as the same shall be
    amended from time to time.

       "Notice and Questionnaire" means a Notice of Registration Statement and
    Selling Securityholder Questionnaire substantially in the form of Exhibit A
    hereto.

       The term "person" shall mean a corporation, association, partnership,
    organization, business, individual, government or political subdivision
    thereof or governmental agency.

       "Purchase Agreement" shall mean the Purchase Agreement, dated as of
    November 16, 2001 between the Purchasers and the Company relating to the
    Securities.

       "Purchasers" shall mean the Purchasers named in Schedule I to the
    Purchase Agreement.

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       "Registrable Securities" shall mean the Securities; provided, however,
    that a Security shall cease to be a Registrable Security when (i) in the
    circumstances contemplated by Section 2(a) hereof, the Security has been
    exchanged for an Exchange Security in an Exchange Offer as contemplated in
    Section 2(a) hereof (provided that any Exchange Security that, pursuant to
    the last two sentences of Section 2(a), is included in a prospectus for use
    in connection with resales by broker-dealers shall be deemed to be a
    Registrable Security with respect to Sections 5, 6 and 9 until resale of
    such Registrable Security has been effected within the 180-day period
    referred to in Section 2(a)); (ii) in the circumstances contemplated by
    Section 2(b) hereof, a Shelf Registration Statement registering such
    Security under the Securities Act has been declared or becomes effective and
    such Security has been sold or otherwise transferred by the holder thereof
    pursuant to and in a manner contemplated by such effective Shelf
    Registration Statement; (iii) such Security is sold pursuant to Rule 144
    under circumstances in which any legend borne by such Security relating to
    restrictions on transferability thereof, under the Securities Act or
    otherwise, is removed by the Company or pursuant to the Indenture; (iv) such
    Security is eligible to be sold pursuant to paragraph (k) of Rule 144; or
    (v) such Security shall cease to be outstanding.

       "Registration Default" shall have the meaning assigned thereto in Section
    2(c) hereof.

       "Registration Expenses" shall have the meaning assigned thereto in
    Section 4 hereof.

       "Resale Period" shall have the meaning assigned thereto in Section 2(a)
    hereof.

       "Restricted Holder" shall mean (i) a holder that is an affiliate of the
    Company within the meaning of Rule 405, (ii) a holder who acquires Exchange
    Securities outside the ordinary course of such holder's business, (iii) a
    holder who has arrangements or understandings with any person to participate
    in the Exchange Offer for the purpose of distributing Exchange Securities
    and (iv) a holder that is a broker-dealer, but only with respect to Exchange
    Securities received by such broker-dealer pursuant to an Exchange Offer in
    exchange for Registrable Securities acquired by the broker-dealer directly
    from the Company.

       "Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such rule
    promulgated under the Securities Act (or any successor provision), as the
    same shall be amended from time to time.

       "Securities" shall mean, collectively, the 2005 Notes and the 2008 Notes
    of the Company to be issued and sold to the Purchasers, and securities
    issued in exchange therefor or in lieu thereof pursuant to the Indenture.

       "Securities Act" shall mean the Securities Act of 1933, or any successor
    thereto, as the same shall be amended from time to time.

       "Shelf Registration" shall have the meaning assigned thereto in Section
    2(b) hereof.

       "Shelf Registration Statement" shall have the meaning assigned thereto in
    Section 2(b) hereof.

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       "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or any
    successor thereto, and the rules, regulations and forms promulgated
    thereunder, all as the same shall be amended from time to time.

       Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the case may be, of this
Exchange and Registration Rights Agreement, and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

           2. Registration Under the Securities Act.

       (a) Except as set forth in Section 2(b) below, the Company agrees to file
    under the Securities Act, as soon as practicable, but no later than 90 days
    after the Closing Date, a registration statement relating to an offer to
    exchange (such registration statement, the "Exchange Registration
    Statement", and such offer, the "Exchange Offer") any and all of the 2005
    Notes and the 2008 Notes, in each case for a like aggregate principal amount
    of debt securities issued by the Company, which debt securities are
    substantially identical to the 2005 Notes and the 2008 Notes, respectively
    (and are entitled to the benefits of a trust indenture which is
    substantially identical to the Indenture or is the Indenture and which has
    been qualified under the Trust Indenture Act), except that they have been
    registered pursuant to an effective registration statement under the
    Securities Act and do not contain provisions for the Additional Interest
    contemplated in Section 2(c) below (such new debt securities hereinafter
    called "Exchange Securities"). The Company agrees to use its best efforts to
    cause the Exchange Registration Statement to become effective under the
    Securities Act as soon as practicable, but no later than 180 days after the
    Closing Date. The Exchange Offer will be registered under the Securities Act
    on the appropriate form and will comply with all applicable tender offer
    rules and regulations under the Exchange Act. The Company further agrees to
    use its reasonable best efforts to commence and complete the Exchange Offer
    promptly, but no later than 45 days after such registration statement has
    become effective, hold the Exchange Offer open for at least 30 days and
    exchange the applicable Exchange Securities for all Registrable Securities
    that have been properly tendered and not withdrawn on or prior to the
    expiration of the Exchange Offer. The Exchange Offer will be deemed to have
    been "completed" with respect to a series of Securities only if the debt
    securities received by holders other than Restricted Holders in the Exchange
    Offer for Registrable Securities of such series are, upon receipt,
    transferable by each such holder without restriction under the Securities
    Act and the Exchange Act and without material restrictions under the blue
    sky or securities laws of a substantial majority of the States of the United
    States of America. The Exchange Offer shall be deemed to have been completed
    with respect to a series of Securities upon the earlier to occur of (i) the
    Company having exchanged the Exchange Securities for all outstanding
    Registrable Securities of such series pursuant to the Exchange Offer and
    (ii) the Company having exchanged, pursuant to the Exchange Offer, Exchange
    Securities of the appropriate series for all Registrable Securities of such
    series that have been properly tendered and not withdrawn before the
    expiration of the Exchange Offer, which shall be on a date that is at least
    30 days following the commencement of the Exchange Offer. The Company shall
    (x) include in the Exchange Registration Statement a prospectus for use in
    any resales by any holder of Exchange Securities that is a broker-dealer and
    (y) keep such Exchange Registration Statement effective for a period (the
    "Resale Period") beginning when Exchange Securities are first issued in the
    Exchange Offer and ending upon the earlier of

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    the expiration of the 180th day after the Exchange Offer has been
    completed or such time as such broker-dealers no longer own any Registrable
    Securities. With respect to such Exchange Registration Statement, such
    holders shall have the benefit of the rights of indemnification and
    contribution set forth in Sections 6(a), (c), (d) and (e) hereof.

       (b) If (i) on or prior to the time the Exchange Offer is completed,
    existing Commission interpretations are changed such that the debt
    securities received by holders other than Restricted Holders in the Exchange
    Offer for Registrable Securities of a series are not or would not be, upon
    receipt, transferable by each such holder without restriction under the
    Securities Act, (ii) the Exchange Offer has not been completed within 225
    days following the Closing Date or (iii) the Exchange Offer is not available
    to any holder of the Securities of a series, the Company shall, in lieu of
    (or, in the case of clause (iii), in addition to) conducting the Exchange
    Offer contemplated by Section 2(a), file under the Securities Act as soon as
    practicable, but no later than the later of 30 days after the time such
    obligation to file arises, a "shelf" registration statement providing for
    the registration of, and the sale on a continuous or delayed basis by the
    holders of, all of the Registrable Securities of such series, pursuant to
    Rule 415 or any similar rule that may be adopted by the Commission (such
    filing, the "Shelf Registration" and such registration statement, the "Shelf
    Registration Statement"). The Company agrees to use its reasonable best
    efforts (x) to cause the Shelf Registration Statement to become or be
    declared effective no later than 120 days after such Shelf Registration
    Statement is filed and to keep such Shelf Registration Statement
    continuously effective for a period ending on the earlier of the second
    anniversary of the date the Securities are issued or such time as there are
    no longer any Registrable Securities outstanding; provided, however, that no
    holder shall be entitled to be named as a selling securityholder in the
    Shelf Registration Statement or to use the prospectus forming a part thereof
    for resales of Registrable Securities unless such holder is an Electing
    Holder, and (y) after the Effective Time of the Shelf Registration
    Statement, promptly upon the request of any holder of Registrable Securities
    that is not then an Electing Holder, to take any action reasonably necessary
    to enable such holder to use the prospectus forming a part thereof for
    resales of Registrable Securities, including, without limitation, any action
    necessary to identify such holder as a selling securityholder in the Shelf
    Registration Statement; provided, however, that nothing in this Clause (y)
    shall relieve any such holder of the obligation to return a completed and
    signed Notice and Questionnaire to the Company in accordance with Section
    3(d)(iii) hereof. The Company further agrees to supplement or make
    amendments to the Shelf Registration Statement, as and when required by the
    rules, regulations or instructions applicable to the registration form used
    by the Company for such Shelf Registration Statement or by the Securities
    Act or rules and regulations thereunder for shelf registration, and the
    Company agrees to furnish to each Electing Holder copies of any such
    supplement or amendment prior to its being used or promptly following its
    filing with the Commission.

       (c) In the event that (i) the Company has not filed the Exchange
    Registration Statement or Shelf Registration Statement with respect to a
    series of Securities on or before the date on which such registration
    statement is required to be filed pursuant to Section 2(a) or 2(b),
    respectively, or (ii) such Exchange Registration Statement or Shelf
    Registration Statement with respect to a series of Securities has not become
    effective or been declared effective by the Commission on or before the date
    on which such registration statement is required to become or be declared
    effective pursuant to Section 2(a) or 2(b), respectively, (iii) the Exchange
    Offer has not been completed with respect to a series of Securities within
    45 days after the initial effective date of the Exchange Registration
    Statement relating to the

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    Exchange Offer (if the Exchange Offer is then required to be made), (iv)
    any Exchange Registration Statement or Shelf Registration Statement with
    respect to a series of Securities required by Section 2(a) or 2(b) hereof is
    filed and declared effective but shall thereafter either be withdrawn by the
    Company or shall become subject to an effective stop order issued pursuant
    to Section 8(d) of the Securities Act suspending the effectiveness of such
    registration statement (except as specifically permitted herein) without
    being succeeded immediately by an additional registration statement filed
    and declared effective or (v) the holders of Registrable Securities of a
    series are prevented or restricted by the Company from effecting sales
    pursuant to any Shelf Registration Statement except as expressly permitted
    by Section 2(f) (each such event referred to in clauses (i) through (v), a
    "Registration Default" and each period during which a Registration Default
    has occurred and is continuing, a "Registration Default Period"), then, as
    liquidated damages for such Registration Default, subject to the provisions
    of Section 9(b), additional interest ("Additional Interest"), in addition to
    the Base Interest, shall accrue with respect to such affected series of
    Securities at a per annum rate of 0.25% for the first 90 days of the
    Registration Default Period, at a per annum rate of 0.50% for the second 90
    days of the Registration Default Period, at a per annum rate of 0.75% for
    the third 90 days of the Registration Default Period and at a per annum rate
    of 1.0% thereafter for the remaining portion of the Registration Default
    Period; provided, however, that Additional Interest shall not accrue at a
            --------  -------
    per annum rate in excess of 1% in respect of all Registration Defaults.
    Additional Interest on such Securities shall cease to accrue (A) in the case
    of clause (i) above, upon the filing of the Exchange Registration Statement
    or Shelf Registration Statement, (B) in the case of clause (ii) above, upon
    the effectiveness of the Exchange Registration Statement or Shelf
    Registration Statement, (C) in the case of clause (iii) above, upon the
    completion of the Exchange Offer, (D) in the case of clause (iv) above, upon
    the effectiveness of a new Exchange Registration Statement or Shelf
    Registration Statement succeeding a withdrawn Exchange Registration
    Statement or Shelf Registration Statement or upon the cessation of the stop
    order suspending the effectiveness of such Exchange Registration Statement
    or Shelf Registration Statement, as applicable, (E) in the case of clause
    (v) above, when the holders of Registrable Securities are no longer
    prevented or restricted by the Company from effecting sales pursuant to any
    Shelf Registration Statement and (F) other than with respect to a holder
    that is an affiliate of the Company or a holder that is not otherwise
    eligible to utilize the provisions of Rule 144(k) under the Securities Act,
    upon the expiration of two years (or such shorter period as may be
    prescribed by paragraph (k) of Rule 144) commencing on the Closing Date, in
    each case (A)-(E), subject to the new accrual of Additional Interest upon
    the occurrence of a new Registration Default.

       (d) The Company shall take all actions necessary or advisable to be taken
    by it to ensure that the transactions contemplated herein are effected as so
    contemplated.

       (e) Any reference herein to a registration statement as of any time shall
    be deemed to include any document incorporated, or deemed to be
    incorporated, therein by reference as of such time and any reference herein
    to any post-effective amendment to a registration statement as of any time
    shall be deemed to include any document incorporated, or deemed to be
    incorporated, therein by reference as of such time.

       (f) The Company may suspend the use of the Shelf Registration Statement
    for a period not to exceed 30 days in any 90-day period or an aggregate of
    90 days in any 12-month period if the Board of Directors of the Company
    shall have determined in good faith that because of valid business reasons
    (not including avoidance of the Company's obligations

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    hereunder), including the acquisition or divestiture of assets, pending
    corporate developments and similar events, it is in the best interests of
    the Company to suspend such use, and prior to suspending such use the
    Company provides the holders with written notice of such suspension, which
    notice need not specify the nature of the event giving rise to such
    suspension. Each suspension period, with respect to each holder, shall begin
    on the date following the date written notice of such suspension is received
    by such holder (or such later date as shall be marked in the notice) and
    shall end on the earlier of (i) the date such holder receives from the
    Company a written notice that such suspension has been terminated and (ii)
    the 31st calendar day from the date on which the written notice of
    suspension is received by such holder (or such later date as shall be marked
    in the notice).

       3.  Registration Procedures.

       If the Company files a registration statement pursuant to Section 2(a)
or Section 2(b), the following provisions shall apply:

       (a) At or before the Effective Time of the Exchange Offer or the Shelf
    Registration, as the case may be, the Company shall qualify the Indenture
    under the Trust Indenture Act of 1939.

       (b) In the event that such qualification would require the appointment of
    a new trustee under the Indenture, the Company shall appoint a new trustee
    thereunder pursuant to the applicable provisions of the Indenture.

       (c) In connection with the Company's obligations with respect to the
    registration of Exchange Securities as contemplated by Section 2(a) (the
    "Exchange Registration"), if applicable, the Company shall, as soon as
    practicable (or as otherwise specified):

               (i)  prepare and file with the Commission, as soon as practicable
           but no later than 90 days after the Closing Date, an Exchange
           Registration Statement on any form which may be utilized by the
           Company and which shall permit the Exchange Offer and resales of
           Exchange Securities by broker-dealers during the Resale Period to be
           effected as contemplated by Section 2(a), and use its reasonable best
           efforts to cause such Exchange Registration Statement to become
           effective as soon as practicable thereafter, but no later than 180
           days after the Closing Date;

               (ii) as soon as practicable prepare and file with the Commission
           such amendments and supplements to such Exchange Registration
           Statement and the prospectus included therein as may be necessary to
           effect and maintain the effectiveness of such Exchange Registration
           Statement for the periods and purposes contemplated in Section 2(a)
           hereof and as may be required by the applicable rules and regulations
           of the Commission and the instructions applicable to the form of such
           Exchange Registration Statement, and promptly provide each
           broker-dealer holding Exchange Securities with such number of copies
           of the prospectus included therein (as then amended or supplemented),
           in conformity in all material respects with the requirements of the
           Securities Act and the Trust Indenture Act and the rules and
           regulations of the Commission thereunder, as such broker-dealer
           reasonably may request prior to the expiration of the Resale Period,
           for use in connection with resales of Exchange Securities;

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                  (iii) promptly notify each broker-dealer that has requested or
              received copies of the prospectus included in such registration
              statement, and confirm such advice in writing, (A) when such
              Exchange Registration Statement or the prospectus included therein
              or any prospectus amendment or supplement or post-effective
              amendment has been filed, and, with respect to such Exchange
              Registration Statement or any post-effective amendment, when the
              same has become effective, (B) of any comments by the Commission
              and by the blue sky or securities commissioner or regulator of any
              state with respect thereto or any request by the Commission for
              amendments or supplements to such Exchange Registration Statement
              or prospectus or for additional information, (C) of the issuance
              by the Commission of any stop order suspending the effectiveness
              of such Exchange Registration Statement or the initiation or
              threatening of any proceedings for that purpose, (D) if at any
              time the representations and warranties of the Company
              contemplated by Section 5 cease to be true and correct in all
              material respects, (E) of the receipt by the Company of any
              notification with respect to the suspension of the qualification
              of the Exchange Securities for sale in any jurisdiction or the
              initiation or threatening of any proceeding for such purpose, or
              (F) at any time during the Resale Period when a prospectus is
              required to be delivered under the Securities Act, that such
              Exchange Registration Statement, prospectus, prospectus amendment
              or supplement or post-effective amendment does not conform in all
              material respects to the applicable requirements of the Securities
              Act and the Trust Indenture Act and the rules and regulations of
              the Commission thereunder or contains an untrue statement of a
              material fact or omits to state any material fact required to be
              stated therein or necessary to make the statements therein not
              misleading in light of the circumstances then existing;

                  (iv) in the event that the Company would be required, pursuant
              to Section 3(c)(iii)(F) above, to notify any broker-dealers
              holding Exchange Securities, without delay prepare and furnish to
              each such holder a reasonable number of copies of a prospectus
              supplemented or amended so that, as thereafter delivered to
              purchasers of such Exchange Securities during the Resale Period,
              such prospectus shall conform in all material respects to the
              applicable requirements of the Securities Act and the Trust
              Indenture Act and the rules and regulations of the Commission
              thereunder and shall not contain an untrue statement of a material
              fact or omit to state a material fact required to be stated
              therein or necessary to make the statements therein not misleading
              in light of the circumstances then existing;

                  (v) use its best efforts to obtain the withdrawal of any order
              suspending the effectiveness of such Exchange Registration
              Statement or any post-effective amendment thereto at the earliest
              practicable date;

                  (vi) use its best efforts to (A) register or qualify the
              Exchange Securities under the securities laws or blue sky laws of
              such jurisdictions as are contemplated by Section 2(a) no later
              than the commencement of the Exchange Offer, (B) keep such
              registrations or qualifications in effect and comply with such
              laws so as to permit the continuance of offers, sales and dealings
              therein in such jurisdictions until the expiration of the Resale
              Period and (C) take any and all other actions as may be reasonably
              necessary or advisable to enable each broker-dealer holding
              Exchange Securities to consummate the disposition thereof in such
              jurisdictions; provided, however, that the Company shall not be
              required for any such purpose to (1) qualify

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             as a foreign corporation in any jurisdiction wherein it would not
             otherwise be required to qualify but for the requirements of this
             Section 3(c)(vi), (2) consent to general service of process in any
             such jurisdiction, (3) make any changes to its certificate of
             incorporation or by-laws or any agreement between it and its
             stockholders, or (4) subject itself to taxation in any such
             jurisdiction if it is not then so subject;

                (vii)  use its best efforts to obtain the consent or approval of
             each governmental agency or authority, whether federal, state or
             local, which may be required to effect the Exchange Registration,
             the Exchange Offer and the offering and sale of Exchange Securities
             by broker-dealers during the Resale Period;

                (viii) provide a CUSIP number for each series of Exchange
             Securities, not later than the applicable Effective Time;

                (ix)   comply with all applicable rules and regulations of the
             Commission, and make generally available to its securityholders as
             soon as practicable but no later than eighteen months after the
             effective date of such Exchange Registration Statement, an earning
             statement of the Company and its subsidiaries complying with
             Section 11(a) of the Securities Act (including, at the option of
             the Company, Rule 158 thereunder).

         (d)    In connection with the Company's obligations with respect to the
     Shelf Registration, if applicable, the Company shall, as soon as
     practicable (or as otherwise specified):

                (i)    prepare and file with the Commission, as soon as
             practicable but in any case within the time periods specified in
             Section 2(b), a Shelf Registration Statement on any form which may
             be utilized by the Company and which shall register all of the
             Registrable Securities of the relevant series for resale by the
             holders thereof in accordance with such method or methods of
             disposition as may be specified by such of the holders as, from
             time to time, may be Electing Holders and use its reasonable best
             efforts to cause such Shelf Registration Statement to become
             effective as soon as practicable but in any case within the time
             periods specified in Section 2(b);

                (ii)   not less than 30 calendar days prior to the Effective
             Time of the Shelf Registration Statement, mail the Notice and
             Questionnaire to the registered holders of Registrable Securities
             of the relevant series (and, so long as Cede & Co., as nominee of
             The Depositary Trust Company ("DTC"), is the registered holder of a
             reasonable number of copies thereof, to the direct participants of
             DTC for delivery to the beneficial owners of such Registrable
             Securities); no holder shall be entitled to be named as a selling
             securityholder in the Shelf Registration Statement as of the
             Effective Time, and no holder shall be entitled to use the
             prospectus forming a part thereof for resales of such Registrable
             Securities at any time, unless such holder has returned a completed
             and signed Notice and Questionnaire to the Company by the deadline
             for response set forth therein; provided, however, holders of
             Registrable Securities shall have at least 28 calendar days from
             the date on which the Notice and Questionnaire is first mailed to
             such holders to return a completed and signed Notice and
             Questionnaire to the Company;

                (iii)  after the Effective Time of the Shelf Registration
             Statement, upon the request of any holder of Registrable Securities
             of the relevant series that is not then

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             an Electing Holder, promptly send a Notice and Questionnaire to
             such holder; provided that the Company shall not be required to
             take any action to name such holder as a selling securityholder in
             the Shelf Registration Statement or to enable such holder to use
             the prospectus forming a part thereof for resales of Registrable
             Securities until such holder has returned a completed and signed
             Notice and Questionnaire to the Company;

                (iv)   as soon as practicable prepare and file with the
             Commission such amendments and supplements to such Shelf
             Registration Statement and the prospectus included therein as may
             be necessary to effect and maintain the effectiveness of such Shelf
             Registration Statement for the period specified in Section 2(b)
             hereof and as may be required by the applicable rules and
             regulations of the Commission and the instructions applicable to
             the form of such Shelf Registration Statement, and furnish to the
             Electing Holders copies of any such supplement or amendment
             simultaneously with or prior to its being used or filed with the
             Commission;

                (v)    comply with the provisions of the Securities Act with
             respect to the disposition of all of the Registrable Securities
             covered by such Shelf Registration Statement in accordance with the
             intended methods of disposition by the Electing Holders provided
             for in such Shelf Registration Statement;

                (vi)   provide (A) the Electing Holders, (B) the underwriters
             (which term, for purposes of this Exchange and Registration Rights
             Agreement, shall include a person deemed to be an underwriter
             within the meaning of Section 2(a)(11) of the Securities Act), if
             any, thereof, (C) any sales or placement agent therefor, (D)
             counsel for any such underwriter or agent and (E) not more than one
             counsel for all the Electing Holders the opportunity to participate
             in the preparation of such Shelf Registration Statement, each
             prospectus included therein or filed with the Commission and each
             amendment or supplement thereto;

                (vii)  for a reasonable period prior to the filing of such Shelf
             Registration Statement, and throughout the period specified in
             Section 2(b), make available at reasonable times at the Company's
             principal place of business or such other reasonable place for
             inspection by the persons referred to in Section 3(d)(vi) who shall
             certify to the Company that they have a current intention to sell
             the Registrable Securities to be covered by the Shelf Registration
             pursuant to the Shelf Registration such financial and other
             information and books and records of the Company, and cause the
             officers, employees, counsel and independent certified public
             accountants of the Company to respond to such inquiries, as shall
             be reasonably necessary, in the judgment of the respective counsel
             referred to in such Section, to conduct a reasonable investigation
             within the meaning of Section 11 of the Securities Act; provided,
             however, that each such party shall be required to maintain in
             confidence and not to disclose to any other person any information
             or records reasonably designated by the Company as being
             confidential, until such time as (A) such information becomes a
             matter of public record (whether by virtue of its inclusion in such
             registration statement or otherwise except by reason of a breach by
             such party of its obligation to keep such information in
             confidence), or (B) such person shall be required so to disclose
             such information pursuant to a subpoena or order of any court or
             other governmental agency or body having jurisdiction over the
             matter

                                       10

<PAGE>

             (subject to the requirements of such order, and only after such
             person shall have given the Company prompt prior written notice of
             such requirement), or (C) such information is required to be set
             forth in such Shelf Registration Statement or the prospectus
             included therein or in an amendment to such Shelf Registration
             Statement or an amendment or supplement to such prospectus in order
             that such Shelf Registration Statement, prospectus, amendment or
             supplement, as the case may be, complies with applicable
             requirements of the federal securities laws and the rules and
             regulations of the Commission and does not contain an untrue
             statement of a material fact or omit to state therein a material
             fact required to be stated therein or necessary to make the
             statements therein not misleading in light of the circumstances
             then existing;

                (viii) promptly notify each of the Electing Holders, any sales
             or placement agent therefor and any underwriter thereof (which
             notification may be made through any managing underwriter that is a
             representative of such underwriter for such purpose) and confirm
             such advice in writing, (A) when such Shelf Registration Statement
             or the prospectus included therein or any prospectus amendment or
             supplement or post-effective amendment has been filed, and, with
             respect to such Shelf Registration Statement or any post-effective
             amendment, when the same has become effective, (B) of any comments
             by the Commission and by the blue sky or securities commissioner or
             regulator of any state with respect thereto or any request by the
             Commission for amendments or supplements to such Shelf Registration
             Statement or prospectus or for additional information, (C) of the
             issuance by the Commission of any stop order suspending the
             effectiveness of such Shelf Registration Statement or the
             initiation or threatening of any proceedings for that purpose, (D)
             if at any time the representations and warranties of the Company
             contemplated by Section 3(d)(xvii) or Section 5 cease to be true
             and correct in all material respects, (E) of the receipt by the
             Company of any notification with respect to the suspension of the
             qualification of the Registrable Securities for sale in any
             jurisdiction or the initiation or threatening of any proceeding for
             such purpose, or (F) if at any time when a prospectus is required
             to be delivered under the Securities Act, that such Shelf
             Registration Statement, prospectus, prospectus amendment or
             supplement or post-effective amendment does not conform in all
             material respects to the applicable requirements of the Securities
             Act and the Trust Indenture Act and the rules and regulations of
             the Commission thereunder or contains an untrue statement of a
             material fact or omits to state any material fact required to be
             stated therein or necessary to make the statements therein not
             misleading in light of the circumstances then existing;

                (ix)   use its best efforts to obtain the withdrawal of any
             order suspending the effectiveness of such registration statement
             or any post-effective amendment thereto at the earliest practicable
             date;

                (x)    if requested by any managing underwriter or underwriters,
             any placement or sales agent or any Electing Holder, promptly
             incorporate in a prospectus supplement or post-effective amendment
             such information as is required by the applicable rules and
             regulations of the Commission and as such managing underwriter or
             underwriters, such agent or such Electing Holder specifies should
             be included therein relating to the terms of the sale of such
             Registrable Securities, including information with respect to the
             principal amount of Registrable Securities being sold

                                       11

<PAGE>

             by such Electing Holder or agent or to any underwriters, the name
             and description of such Electing Holder, agent or underwriter, the
             offering price of such Registrable Securities and any discount,
             commission or other compensation payable in respect thereof, the
             purchase price being paid therefor by such underwriters and with
             respect to any other terms of the offering of the Registrable
             Securities to be sold by such Electing Holder or agent or to such
             underwriters; and make all required filings of such prospectus
             supplement or post-effective amendment promptly after notification
             of the matters to be incorporated in such prospectus supplement or
             post-effective amendment;

                (xi)    furnish to each Electing Holder, each placement or sales
             agent, if any, therefor, each underwriter, if any, thereof and the
             respective counsel referred to in Section 3(d)(vi) an executed copy
             (or, in the case of an Electing Holder, a conformed copy) of such
             Shelf Registration Statement, each such amendment and supplement
             thereto (in each case including all exhibits thereto (in the case
             of an Electing Holder of Registrable Securities, upon request) and
             documents incorporated by reference therein) and such number of
             copies of such Shelf Registration Statement (excluding exhibits
             thereto and documents incorporated by reference therein unless
             specifically so requested by such Electing Holder, agent or
             underwriter, as the case may be) and of the prospectus included in
             such Shelf Registration Statement (including each preliminary
             prospectus and any summary prospectus), in conformity in all
             material respects with the applicable requirements of the
             Securities Act and the Trust Indenture Act and the rules and
             regulations of the Commission thereunder, and such other documents,
             as such Electing Holder, agent, if any, and underwriter, if any,
             may reasonably request in order to facilitate the offering and
             disposition of the Registrable Securities included or to be
             included in such Shelf Registration Statement owned by such
             Electing Holder, offered or sold by such agent or underwritten by
             such underwriter and to permit such Electing Holder, agent and
             underwriter to satisfy the prospectus delivery requirements of the
             Securities Act; and the Company hereby consents to the use of such
             prospectus (including such preliminary and summary prospectus) and
             any amendment or supplement thereto by each such Electing Holder
             and by any such agent and underwriter, in each case in the form
             most recently provided to such person by the Company, in connection
             with the offering and sale of the Registrable Securities covered by
             the prospectus (including such preliminary and summary prospectus)
             or any supplement or amendment thereto after the Company has
             provided notice pursuant to Section 3(d)(viii)(F) and for so long
             as such notice is in effect;

                (xii)   use its best efforts to (A) register or qualify the
             Registrable Securities to be included in such Shelf Registration
             Statement under such securities laws or blue sky laws of such
             jurisdictions as any Electing Holder and each placement or sales
             agent, if any, therefor and underwriter, if any, thereof shall
             reasonably request, (B) keep such registrations or qualifications
             in effect and comply with such laws so as to permit the continuance
             of offers, sales and dealings therein in such jurisdictions during
             the period the Shelf Registration is required to remain effective
             under Section 2(b) above and for so long as may be necessary to
             enable any such Electing Holder, agent or underwriter to complete
             its distribution of Securities pursuant to such Shelf Registration
             Statement and (C) take any and all other actions as may be
             reasonably necessary or advisable to enable each such Electing
             Holder, agent, if any, and underwriter, if any, to consummate the
             disposition in such jurisdictions of such

                                       12

<PAGE>

             Registrable Securities; provided, however, that the Company shall
             not be required for any such purpose to (1) qualify as a foreign
             corporation in any jurisdiction wherein it would not otherwise be
             required to qualify but for the requirements of this Section
             3(d)(xii), (2) consent to general service of process in any such
             jurisdiction, (3) make any changes to its certificate of
             incorporation or by-laws or any agreement between it and its
             stockholders, or (4) subject itself to taxation in any such
             jurisdiction if it is not then so subject;

                (xiii) use its best efforts to obtain the consent or approval of
             each governmental agency or authority, whether federal, state or
             local, which may be required to effect the Shelf Registration or
             the offering or sale in connection therewith or to enable the
             selling holder or holders to offer, or to consummate the
             disposition of, their Registrable Securities included or to be
             included in such Shelf Registration Statement;

                (xiv)  unless any Registrable Securities of the relevant series
             shall be in book-entry only form, cooperate with the Electing
             Holders and the managing underwriters, if any, to facilitate the
             timely preparation and delivery of certificates representing
             Registrable Securities to be sold, which certificates, if so
             required by any securities exchange upon which any Registrable
             Securities are listed, shall be penned, lithographed or engraved,
             or produced by any combination of such methods, on steel engraved
             borders, and which certificates shall not bear any restrictive
             legends; and, in the case of an underwritten offering, enable such
             Registrable Securities to be in such denominations and registered
             in such names as the managing underwriters may request at least two
             business days prior to any sale of the Registrable Securities;

                (xv)   provide a CUSIP number for each series of Registrable
             Securities included in such Shelf Registration Statement, not later
             than the applicable Effective Time;

                (xvi)  enter into one or more underwriting agreements,
             engagement letters, agency agreements, "best efforts" underwriting
             agreements or similar agreements, as appropriate, including
             customary provisions relating to indemnification and contribution,
             and take such other actions in connection therewith as any Electing
             Holders aggregating at least 20% in aggregate principal amount of
             the Registrable Securities of the relevant series at the time
             outstanding shall request in order to expedite or facilitate the
             disposition of such Registrable Securities;

                (xvii) if requested by the managing underwriters, placement or
             sales agent, if any, or any Electing Holders of at least 20% in
             aggregate principal amount of the Registrable Securities of the
             relevant series at the time outstanding, whether or not an
             agreement of the type referred to in Section 3(d)(xvi) hereof is
             entered into and whether or not any portion of the offering
             contemplated by the Shelf Registration is an underwritten offering
             or is made through a placement or sales agent or any other entity,
             (A) make such representations and warranties to the Electing
             Holders and the placement or sales agent, if any, therefor and the
             underwriters, if any, thereof in form, substance and scope as are
             customarily made in connection with an offering of debt securities
             pursuant to any appropriate agreement or to a registration
             statement filed on the form applicable to the Shelf Registration;
             (B) obtain an opinion of counsel to the Company in customary form
             and covering such matters, of the type

                                       13

<PAGE>

             customarily covered by such an opinion, as the managing
             underwriters, if any, or as any Electing Holders of at least 20% in
             aggregate principal amount of the Registrable Securities of the
             relevant series at the time outstanding may reasonably request,
             addressed to such Electing Holder or Electing Holders and the
             placement or sales agent, if any, therefor and the underwriters, if
             any, thereof and dated the effective date of such Shelf
             Registration Statement (and if such Shelf Registration Statement
             contemplates an underwritten offering of a part or all of the
             Registrable Securities of such series, dated the date of the
             closing under the underwriting agreement relating thereto) (it
             being agreed that the matters to be covered by such opinion shall
             include the due incorporation and good standing of the Company and
             its subsidiaries; the qualification of the Company and its
             subsidiaries to transact business as foreign corporations; the due
             authorization, execution and delivery of the relevant agreement of
             the type referred to in Section 3(d)(xvi) hereof; the due
             authorization, execution, authentication and issuance, and the
             validity and enforceability, of the Securities of such series; the
             absence of material legal or governmental proceedings involving the
             Company; the absence of a breach by the Company or any of its
             subsidiaries of, or a default under, material agreements binding
             upon the Company or any subsidiary of the Company; the absence of
             governmental approvals required to be obtained in connection with
             the Shelf Registration, the offering and sale of the Registrable
             Securities of such series, this Exchange and Registration Rights
             Agreement or any agreement of the type referred to in Section
             3(d)(xvi) hereof, except such approvals as may be required under
             state securities or blue sky laws; the material compliance as to
             form of such Shelf Registration Statement and any documents
             incorporated by reference therein and of the Indenture with the
             requirements of the Securities Act and the Trust Indenture Act and
             the rules and regulations of the Commission thereunder,
             respectively; and, as of the date of the opinion and of the Shelf
             Registration Statement or most recent post-effective amendment
             thereto, as the case may be, the absence from such Shelf
             Registration Statement and the prospectus included therein, as then
             amended or supplemented, and from the documents incorporated by
             reference therein (in each case other than the financial statements
             and other financial information contained therein) of an untrue
             statement of a material fact or the omission to state therein a
             material fact necessary to make the statements therein not
             misleading (in the case of such documents, in the light of the
             circumstances existing at the time that such documents were filed
             with the Commission under the Exchange Act)); (C) obtain a "cold
             comfort" letter or letters from the independent certified public
             accountants of the Company addressed to the selling Electing
             Holders, the placement or sales agent, if any, therefor or the
             underwriters, if any, thereof, dated (i) the effective date of such
             Shelf Registration Statement and (ii) the effective date of any
             prospectus supplement to the prospectus included in such Shelf
             Registration Statement or post-effective amendment to such Shelf
             Registration Statement which includes unaudited or audited
             financial statements as of a date or for a period subsequent to
             that of the latest such statements included in such prospectus
             (and, if such Shelf Registration Statement contemplates an
             underwritten offering pursuant to any prospectus supplement to the
             prospectus included in such Shelf Registration Statement or
             post-effective amendment to such Shelf Registration Statement which
             includes unaudited or audited financial statements as of a date or
             for a period subsequent to that of the latest such state ments
             included in such prospectus, dated the date of the closing under
             the underwriting agreement relating thereto), such letter or
             letters to be in customary form and covering such matters of the
             type

                                       14

<PAGE>

             customarily covered by letters of such type; (D) deliver such
             documents and certificates, including officers' certificates, as
             may be reasonably requested by any Electing Holders of at least 20%
             in aggregate principal amount of the Registrable Securities of the
             relevant series at the time outstanding or the placement or sales
             agent, if any, therefor and the managing underwriters, if any,
             thereof to evidence the accuracy of the representations and
             warranties made pursuant to clause (A) above or those contained in
             Section 5(a) hereof and the compliance with or satisfaction of any
             agreements or conditions contained in the underwriting agreement or
             other agreement entered into by the Company; and (E) undertake such
             obligations relating to expense reimbursement, indemnification and
             contribution as are provided in Section 6 hereof;

                (xviii) notify in writing each registered holder of Registrable
             Securities (and, so long as Cede & Co., as nominee of DTC, is the
             registered holder, provide a reasonable number of such notices to
             the direct participants and DTC for delivery to the beneficial
             owners of Registrable Securities) of any proposal by the Company to
             amend or waive any provision of this Exchange and Registration
             Rights Agreement pursuant to Section 9(h) hereof and of any
             amendment or waiver effected pursuant thereto, each of which
             notices shall contain the text of the amendment or waiver proposed
             or effected, as the case may be;

                (xix)   in the event that any broker-dealer registered under the
             Exchange Act shall underwrite any Registrable Securities or
             participate as a member of an underwriting syndicate or selling
             group or "assist in the distribution" (within the meaning of the
             Conduct Rules (the "Conduct Rules) of the National Association of
             Securities Dealers, Inc. ("NASD") or any successor thereto, as
             amended from time to time) thereof, whether as a holder of such
             Registrable Securities or as an underwriter, a placement or sales
             agent or a broker or dealer in respect thereof, or otherwise,
             assist such broker-dealer in complying with the requirements of
             such Conduct Rules, including by (A) if such Conduct Rules shall so
             require, engaging a "qualified independent underwriter" (as defined
             in such Conduct Rules) to participate in the preparation of the
             Shelf Registration Statement relating to such Registrable
             Securities, to exercise usual standards of due diligence in respect
             thereto and, if any portion of the offering contemplated by such
             Shelf Registration Statement is an underwritten offering or is made
             through a placement or sales agent, to recommend the yield of such
             Registrable Securities, (B) indemnifying any such qualified
             independent underwriter to the extent of the indemnification of
             underwriters provided in Section 6 hereof (or to such other
             customary extent as may be requested by such underwriter), and (C)
             providing such information to such broker-dealer as may be required
             in order for such broker-dealer to comply with the requirements of
             the Conduct Rules; and

                (xx)    comply with all applicable rules and regulations of the
             Commission, and make generally available to its securityholders as
             soon as practicable but in any event not later than eighteen months
             after the effective date of such Shelf Registration Statement, an
             earning statement of the Company and its subsidiaries complying
             with Section 11(a) of the Securities Act (including, at the option
             of the Company, Rule 158 thereunder).

                                       15

<PAGE>

         (e)   In the event that the Company would be required, pursuant to
     Section 3(d)(viii)(F) above, to notify the Electing Holders, the placement
     or sales agent, if any, therefor and the managing underwriters, if any,
     thereof, the Company shall without delay prepare and furnish to each of the
     Electing Holders, to each placement or sales agent, if any, and to each
     such underwriter, if any, a reasonable number of copies of a prospectus
     supplemented or amended so that, as thereafter delivered to purchasers of
     Registrable Securities, such prospectus shall conform in all material
     respects to the applicable requirements of the Securities Act and the Trust
     Indenture Act and the rules and regulations of the Commission thereunder
     and shall not contain an untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in light of the circumstances then
     existing. Each Electing Holder agrees that upon receipt of any notice from
     the Company pursuant to Section 3(d)(viii)(F) hereof, such Electing Holder
     shall forthwith discontinue the disposition of Registrable Securities
     pursuant to the Shelf Registration Statement applicable to such Registrable
     Securities until such Electing Holder shall have received copies of such
     amended or supplemented prospectus, and if so directed by the Company, such
     Electing Holder shall deliver to the Company (at the Company's expense) all
     copies, other than permanent file copies, then in such Electing Holder's
     possession of the prospectus covering such Registrable Securities at the
     time of receipt of such notice.

         (f)   In the event of a Shelf Registration, in addition to the
     information required to be provided by each Electing Holder in its Notice
     Questionnaire, the Company may require such Electing Holder to furnish to
     the Company such additional information regarding such Electing Holder and
     such Electing Holder's intended method of distribution of Registrable
     Securities as may be required in order to comply with the Securities Act.
     Each such Electing Holder agrees to notify the Company as promptly as
     practicable of any inaccuracy or change in information previously furnished
     by such Electing Holder to the Company or of the occurrence of any event in
     either case as a result of which any prospectus relating to such Shelf
     Registration contains or would contain an untrue statement of a material
     fact regarding such Electing Holder or such Electing Holder's intended
     method of disposition of such Registrable Securities or omits to state any
     material fact regarding such Electing Holder or such Electing Holder's
     intended method of disposition of such Registrable Securities required to
     be stated therein or necessary to make the statements therein not
     misleading in light of the circumstances then existing, and promptly to
     furnish to the Company any additional information required to correct and
     update any previously furnished information or required so that such
     prospectus shall not contain, with respect to such Electing Holder or the
     disposition of such Registrable Securities, an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading in light
     of the circumstances then existing.

         (g)   Until the expiration of two years after the Closing Date, the
     Company will not, and will not permit any of its "affiliates" (as defined
     in Rule 144) to, resell any of the Securities that have been reacquired by
     any of them except pursuant to an effective registration statement under
     the Securities Act.

         4.    Registration Expenses.

         The Company agrees to bear and to pay or cause to be paid promptly all
expenses incident to the Company's performance of or compliance with this
Exchange and Registration Rights Agreement, including (a) all Commission and any
NASD registration, filing and review

                                       16

<PAGE>

fees and expenses including fees and disbursements of one counsel for all the
placement or sales agents or underwriters in connection with such registration,
filing and review, (b) all fees and expenses in connection with the
qualification of the Securities for offering and sale under the State securities
and blue sky laws referred to in Section 3(d)(xii) hereof and determination of
their eligibility for investment under the laws of such jurisdictions as any
managing underwriters or the Electing Holders may designate, including
reasonable fees and disbursements of one counsel for all the Electing Holders or
underwriters in connection with such qualification and determination, (c) all
expenses relating to the preparation, printing, production, distribution and
reproduction of each registration statement required to be filed hereunder, each
prospectus included therein or prepared for distribution pursuant hereto, each
amendment or supplement to the foregoing, the expenses of preparing the
Securities for delivery and the expenses of printing or producing any
underwriting agreements, agreements among underwriters, selling agreements and
blue sky or legal investment memoranda and all other documents in connection
with the offering, sale or delivery of Securities to be disposed of (including
certificates representing the Securities), (d) messenger, telephone and delivery
expenses relating to the offering, sale or delivery of Securities and the
preparation of documents referred in clause (c) above, (e) fees and expenses of
the Trustee under the Indenture, any agent of the Trustee and any counsel for
the Trustee and of any collateral agent or custodian, (f) internal expenses
(including all salaries and expenses of the Company's officers and employees
performing legal or accounting duties), (g) fees, disbursements and expenses of
counsel and independent certified public accountants of the Company (including
the expenses of any opinions or "cold comfort" letters required by or incident
to such performance and compliance), (h) reasonable fees, disbursements and
expenses of any "qualified independent underwriter" engaged pursuant to Section
3(d)(xix) hereof, (i) reasonable fees, disbursements and expenses of one counsel
for the Electing Holders retained in connection with a Shelf Registration, as
selected by the Electing Holders of at least a majority in aggregate principal
amount of the Registrable Securities held by Electing Holders (which counsel
shall be reasonably satisfactory to the Company), (j) any fees charged by
securities rating services for rating the Securities, and (k) fees, expenses and
disbursements of any other persons, including special experts, retained by the
Company in connection with such registration (collectively, the "Registration
Expenses"). To the extent that any Registration Expenses are incurred, assumed
or paid by any holder of Registrable Securities or any placement or sales agent
therefor or underwriter thereof, the Company shall reimburse such person for the
full amount of the Registration Expenses so incurred, assumed or paid promptly
after receipt of a request therefor. Notwithstanding the foregoing, the holders
of the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such holders (severally or jointly), other
than the counsel and experts specifically referred to above.

          5.    Representations and Warranties.

          The Company represents and warrants to, and agrees with, each
Purchaser and each of the holders from time to time of Registrable Securities
that:

          (a)   Each registration statement covering Registrable Securities and
     each prospectus (including any preliminary or summary prospectus) contained
     therein or furnished pursuant to Section 3(d) or Section 3(c) hereof and
     any further amendments or supplements to any such registration statement or
     prospectus, when it becomes effective or is filed with the Commission, as
     the case may be, and, in the case of an underwritten offering of
     Registrable

                                       17

<PAGE>

     Securities, at the time of the closing under the underwriting agreement
     relating thereto, will conform in all material respects to the requirements
     of the Securities Act and the Trust Indenture Act and the rules and
     regulations of the Commission thereunder and will not contain an untrue
     statement of a material fact or omit to state a material fact required to
     be stated therein or necessary to make the statements therein not
     misleading; and at all times subsequent to the Effective Time when a
     prospectus would be required to be delivered under the Securities Act,
     other than from (i) such time as a notice has been given to holders of
     Registrable Securities pursuant to Section 3(d)(viii)(F) or Section
     3(c)(iii)(F) hereof until (ii) such time as the Company furnishes an
     amended or supplemented prospectus pursuant to Section 3(e) or Section
     3(c)(iv) hereof, each such registration statement, and each prospectus
     (including any summary prospectus) contained therein or furnished pursuant
     to Section 3(d) or Section 3(c) hereof, as then amended or supplemented,
     will conform in all material respects to the requirements of the Securities
     Act and the Trust Indenture Act and the rules and regulations of the
     Commission thereunder and will not contain an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading in the
     light of the circumstances then existing; provided, however, that this
     representation and warranty shall not apply to any statements or omissions
     made in reliance upon and in conformity with information furnished in
     writing to the Company by a holder of Registrable Securities expressly for
     use therein.

          (b)   Any documents incorporated by reference in any prospectus
     referred to in Section 5(a) hereof, when they become or became effective or
     are or were filed with the Commission, as the case may be, will conform or
     conformed in all material respects to the requirements of the Securities
     Act or the Exchange Act, as applicable, and none of such documents will
     contain or contained an untrue statement of a material fact or will omit or
     omitted to state a material fact required to be stated therein or necessary
     to make the statements therein not misleading; provided, however, that this
     representation and warranty shall not apply to any statements or omissions
     made in reliance upon and in conformity with information furnished in
     writing to the Company by a holder of Registrable Securities expressly for
     use therein.

          (c)   The compliance by the Company with all of the provisions of this
     Exchange and Registration Rights Agreement and the consummation of the
     transactions herein contemplated will not conflict with or result in a
     breach of any of the terms or provisions of, or constitute a default under,
     any indenture, mortgage, deed of trust, loan agreement or other agreement
     or instrument to which the Company or any subsidiary of the Company is a
     party or by which the Company or any subsidiary of the Company is bound or
     to which any of the property or assets of the Company or any subsidiary of
     the Company is subject which conflict breach or violation would have a
     material adverse effect on the current or future consolidated financial
     position, stockholders' equity or results of operations of the Company and
     its subsidiaries, taken as a whole, or impair the validity of this Exchange
     and Registration Rights Agreement or the rights of the Purchasers or
     holders of Registrable Securities hereunder, nor will such action result in
     any violation of the provisions of the certificate of incorporation, as
     amended, or the by-laws of the Company or any statute or any order, rule or
     regulation of any court or governmental agency or body having jurisdiction
     over the Company or any subsidiary of the Company or any of their
     properties; and no consent, approval, authorization, order, registration or
     qualification of or with any such court or governmental agency or body is
     required for the consummation by the Company of the transactions
     contemplated by this Exchange and Registration Rights Agreement, except the
     registration under the Securities Act of the Securities, qualification of
     the Indenture under

                                       18

<PAGE>

     the Trust Indenture Act and such consents, approvals, authorizations,
     registrations or qualifications as may be required under State securities
     or blue sky laws in connection with the offering and distribution of the
     Securities.

          (d)   This Exchange and Registration Rights Agreement has been duly
     authorized, executed and delivered by the Company.

          6.    Indemnification.

          (a)   Indemnification by the Company. The Company will indemnify and
     hold harmless each of the holders of Registrable Securities included in an
     Exchange Registration Statement, each of the Electing Holders of
     Registrable Securities included in a Shelf Registration Statement and each
     person who participates as a placement or sales agent or as an underwriter
     in any offering or sale of such Registrable Securities against any losses,
     claims, damages or liabilities, joint or several, to which such holder,
     agent or underwriter may become subject under the Securities Act or
     otherwise, insofar as such losses, claims, damages or liabilities (or
     actions in respect thereof) arise out of or are based upon an untrue
     statement or alleged untrue statement of a material fact contained in any
     Exchange Registration Statement or Shelf Registration Statement, as the
     case may be, under which such Registrable Securities were registered under
     the Securities Act, or any preliminary, final or summary prospectus
     contained therein or furnished by the Company to any such holder, Electing
     Holder, agent or underwriter, or any amendment or supplement thereto, or
     arise out of or are based upon the omission or alleged omission to state
     therein a material fact required to be stated therein or necessary to make
     the statements therein not misleading, and will reimburse such holder, such
     Electing Holder, such agent and such underwriter for any legal or other
     expenses reasonably incurred by them in connection with investigating or
     defending any such action or claim as such expenses are incurred; provided,
     however, that the Company shall not be liable to any such person in any
     such case to the extent that any such loss, claim, damage or liability
     arises out of or is based upon an untrue statement or alleged untrue
     statement or omission or alleged omission made in such registration
     statement, or preliminary, final or summary prospectus, or amendment or
     supplement thereto, in reliance upon and in conformity with written
     information furnished to the Company by such person expressly for use
     therein; provided, further, that the Company shall not be liable to any
     holder, Electing Holder, agent or underwriter under the indemnity agreement
     in this subsection (a) with respect to any preliminary prospectus to the
     extent that any such loss, claim, damage or liability of such holder,
     Electing Holder, agent or underwriter results from the fact such holder,
     Electing Holder, agent or underwriter sold Registrable Securities to a
     person to whom there was not sent or given, at or prior to the written
     confirmation of such sale, a copy of the final prospectus (excluding
     documents incorporated by reference) in any case where such delivery is
     required by the Securities Act if the Company has previously furnished
     copies thereof to such holder, Electing Holder, agent or underwriter on a
     timely basis, and the loss, claim, damage or liability of such holder,
     Electing Holder, agent or underwriter results from an untrue statement or
     omission of a material fact contained in the preliminary prospectus which
     was corrected in the final prospectus.

          (b)   Indemnification by the Holders and any Agents and Underwriters.
     The Company may require, as a condition to including any Registrable
     Securities in any registration statement filed pursuant to Section 2(b)
     hereof and to entering into any underwriting agreement with respect
     thereto, that the Company shall have received an undertaking

                                       19

<PAGE>

     reasonably satisfactory to it from the Electing Holder of such Registrable
     Securities and from each underwriter named in any such underwriting
     agreement, severally and not jointly, to (i) indemnify and hold harmless
     the Company, and all other holders of Registrable Securities, against any
     losses, claims, damages or liabilities to which the Company or such other
     holders of Registrable Securities may become subject, under the Securities
     Act or otherwise, insofar as such losses, claims, damages or liabilities
     (or actions in respect thereof) arise out of or are based upon an untrue
     statement or alleged untrue statement of a material fact contained in such
     registration statement, or any preliminary, final or summary prospectus
     contained therein or furnished by the Company to any such Electing Holder,
     agent or underwriter, or any amendment or supplement thereto, or arise out
     of or are based upon the omission or alleged omission to state therein a
     material fact required to be stated therein or necessary to make the
     statements therein not misleading, in each case to the extent, but only to
     the extent, that such untrue statement or alleged untrue statement or
     omission or alleged omission was made in reliance upon and in conformity
     with written information furnished to the Company by such Electing Holder
     or underwriter expressly for use therein, and (ii) reimburse the Company
     for any legal or other expenses reasonably incurred by the Company in
     connection with investigating or defending any such action or claim as such
     expenses are incurred; provided, however, that no such Electing Holder
     shall be required to undertake liability to any person under this Section
     6(b) for any amounts in excess of the dollar amount of the proceeds to be
     received by such Electing Holder from the sale of such Electing Holder's
     Registrable Securities pursuant to such registration.

          (c)   Notices of Claims, Etc. Promptly after receipt by an indemnified
     party under subsection (a) or (b) above of written notice of the
     commencement of any action, such indemnified party shall, if a claim in
     respect thereof is to be made against an indemnifying party pursuant to the
     indemnification provisions of or contemplated by this Section 6, notify
     such indemnifying party in writing of the commencement of such action; but
     the omission so to notify the indemnifying party shall not relieve it from
     any liability which it may have to any indemnified party otherwise than
     under the indemnification provisions of or contemplated by Section 6(a) or
     6(b) hereof. In case any such action shall be brought against any
     indemnified party and it shall notify an indemnifying party of the
     commencement thereof, such indemnifying party shall be entitled to
     participate therein and, to the extent that it shall wish, jointly with any
     other indemnifying party similarly notified, to assume the defense thereof,
     with counsel reasonably satisfactory to such indemnified party (who shall
     not, except with the consent of the indemnified party, be counsel to the
     indemnifying party), and, after notice from the indemnifying party to such
     indemnified party of its election so to assume the defense thereof, such
     indemnifying party shall not be liable to such indemnified party for any
     legal expenses of other counsel or any other expenses, in each case
     subsequently incurred by such indemnified party, in connection with the
     defense thereof other than reasonable costs of investigation. No
     indemnifying party shall, without the written consent of the indemnified
     party, effect the settlement or compromise of, or consent to the entry of
     any judgment with respect to, any pending or threatened action or claim in
     respect of which indemnification or contribution may be sought hereunder
     (whether or not the indemnified party is an actual or potential party to
     such action or claim) unless such settlement, compromise or judgment (i)
     includes an unconditional release of the indemnified party from all
     liability arising out of such action or claim and (ii) does not include a
     statement as to or an admission of fault, culpability or a failure to act
     by or on behalf of any indemnified party.

                                       20

<PAGE>

          (d)   Contribution. If for any reason the indemnification provisions
     contemplated by Section 6(a) or Section 6(b) are unavailable to or
     insufficient to hold harmless an indemnified party in respect of any
     losses, claims, damages or liabilities (or actions in respect thereof)
     referred to therein, then each indemnifying party shall contribute to the
     amount paid or payable by such indemnified party as a result of such
     losses, claims, damages or liabilities (or actions in respect thereof) in
     such proportion as is appropriate to reflect the relative fault of the
     indemnifying party and the indemnified party in connection with the
     statements or omissions which resulted in such losses, claims, damages or
     liabilities (or actions in respect thereof), as well as any other relevant
     equitable considerations. The relative fault of such indemnifying party and
     indemnified party shall be determined by reference to, among other things,
     whether the untrue or alleged untrue statement of a material fact or
     omission or alleged omission to state a material fact relates to
     information supplied by such indemnifying party or by such indemnified
     party, and the parties' relative intent, knowledge, access to information
     and opportunity to correct or prevent such statement or omission. The
     parties hereto agree that it would not be just and equitable if
     contributions pursuant to this Section 6(d) were determined by pro rata
     allocation (even if the holders or any agents or underwriters or all of
     them were treated as one entity for such purpose) or by any other method of
     allocation which does not take account of the equitable considerations
     referred to in this Section 6(d). The amount paid or payable by an
     indemnified party as a result of the losses, claims, damages, or
     liabilities (or actions in respect thereof) referred to above shall be
     deemed to include any legal or other fees or expenses reasonably incurred
     by such indemnified party in connection with investigating or defending any
     such action or claim. Notwithstanding the provisions of this Section 6(d),
     no holder shall be required to contribute any amount in excess of the
     amount by which the dollar amount of the proceeds received by such holder
     from the sale of any Registrable Securities (after deducting any fees,
     discounts and commissions applicable thereto) exceeds the amount of any
     damages which such holder has otherwise been required to pay by reason of
     such untrue or alleged untrue statement or omission or alleged omission,
     and no underwriter shall be required to contribute any amount in excess of
     the amount by which the total price at which the Registrable Securities
     underwritten by it and distributed to the public were offered to the public
     exceeds the amount of any damages which such underwriter has otherwise been
     required to pay by reason of such untrue or alleged untrue statement or
     omission or alleged omission. No person guilty of fraudulent
     misrepresentation (within the meaning of Section 11(f) of the Securities
     Act) shall be entitled to contribution from any person who was not guilty
     of such fraudulent misrepresentation. The holders' and any underwriters'
     obligations in this Section 6(d) to contribute shall be several in
     proportion to the principal amount of Registrable Securities registered or
     underwritten, as the case may be, by them and not joint.

          (e)   The obligations of the Company under this Section 6 shall be in
     addition to any liability which the Company may otherwise have and shall
     extend, upon the same terms and conditions, to each officer, director and
     partner of each holder, agent and underwriter and each person, if any, who
     controls any holder, agent or underwriter within the meaning of the
     Securities Act; and the obligations of the holders and any agents or
     underwriters contemplated by this Section 6 shall be in addition to any
     liability which the respective holder, agent or underwriter may otherwise
     have and shall extend, upon the same terms and conditions, to each officer
     and director of the Company (including any person who, with his consent, is
     named in any registration statement as about to become a director of the
     Company) and to each person, if any, who controls the Company within the
     meaning of the Securities Act.

                                       21

<PAGE>

          7.    Underwritten Offerings.

          (a)   Selection of Underwriters. If any of the Registrable Securities
     covered by the Shelf Registration are to be sold pursuant to an
     underwritten offering, the managing underwriter or underwriters thereof
     shall be designated by Electing Holders holding at least a majority in
     aggregate principal amount of the Registrable Securities to be included in
     such offering, provided that such designated managing underwriter or
     underwriters is or are reasonably acceptable to the Company.

          (b)   Participation by Holders. Each holder of Registrable Securities
     hereby agrees with each other holder that no holder may participate in any
     underwritten offering hereunder unless such holder (i) agrees to sell such
     holder's Registrable Securities on the basis provided in any underwriting
     arrangements approved by the persons entitled hereunder to approve such
     arrangements and (ii) completes and executes all questionnaires, powers of
     attorney, indemnities, underwriting agreements and other documents
     reasonably required under the terms of such underwriting arrangements.

          8.    Rule 144.

          The Company covenants to the holders of Registrable Securities that to
the extent it shall be required to do so under the Exchange Act, the Company
shall timely file the reports required to be filed by it under the Exchange Act
or the Securities Act (including the reports under Section 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by
the Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder's sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.

          9.    Miscellaneous.

          (a)   No Inconsistent Agreements. The Company represents, warrants,
     covenants and agrees that it has not granted, and shall not grant,
     registration rights with respect to Registrable Securities or any other
     securities which would be inconsistent with the terms contained in this
     Exchange and Registration Rights Agreement.

          (b)   Specific Performance. The parties hereto acknowledge that there
     would be no adequate remedy at law if the Company fails to perform any of
     its obligations hereunder and that the Purchasers and the holders from time
     to time of the Registrable Securities may be irreparably harmed by any such
     failure, and accordingly agree that the Purchasers and such holders, in
     addition to any other remedy to which they may be entitled at law or in
     equity, shall be entitled to compel specific performance of the obligations
     of the Company under this Exchange and Registration Rights Agreement in
     accordance with the terms and conditions of this Exchange and Registration
     Rights Agreement, in any court of the United States or any State thereof
     having jurisdiction.

                                       22

<PAGE>

          (c)   Notices. All notices, requests, claims, demands, waivers and
     other communications hereunder shall be in writing and shall be deemed to
     have been duly given when delivered by hand, if delivered personally or by
     courier, or three days after being deposited in the mail (registered or
     certified mail, postage prepaid, return receipt requested) as follows: If
     to the Company, to it at One Harrison Street, San Francisco, California
     94105 and if to a holder, to the address of such holder set forth in the
     security register or other records of the Company, or to such other address
     as the Company or any such holder may have furnished to the other in
     writing in accordance herewith, except that notices of change of address
     shall be effective only upon receipt.

          (d)   Parties in Interest. All the terms and provisions of this
     Exchange and Registration Rights Agreement shall be binding upon, shall
     inure to the benefit of and shall be enforceable by the parties hereto and
     the holders from time to time of the Registrable Securities and the
     respective successors and assigns of the parties hereto and such holders.
     In the event that any transferee of any holder of Registrable Securities
     shall acquire Registrable Securities, in any manner, whether by gift,
     bequest, purchase, operation of law or otherwise, such transferee shall,
     without any further writing or action of any kind, be deemed a beneficiary
     hereof for all purposes and such Registrable Securities shall be held
     subject to all of the terms of this Exchange and Registration Rights
     Agreement, and by taking and holding such Registrable Securities such
     transferee shall be entitled to receive the benefits of, and be
     conclusively deemed to have agreed to be bound by all of the applicable
     terms and provisions of this Exchange and Registration Rights Agreement. If
     the Company shall so request, any such successor, assign or transferee
     shall agree in writing to acquire and hold the Registrable Securities
     subject to all of the applicable terms hereof.

          (e)   Survival. The respective indemnities, agreements,
     representations, warranties and each other provision set forth in this
     Exchange and Registration Rights Agreement or made pursuant hereto shall
     remain in full force and effect regardless of any investigation (or
     statement as to the results thereof) made by or on behalf of any holder of
     Registrable Securities, any director, officer or partner of such holder,
     any agent or underwriter or any director, officer or partner thereof, or
     any controlling person of any of the foregoing, and shall survive delivery
     of and payment for the Registrable Securities pursuant to the Purchase
     Agreement and the transfer and registration of Registrable Securities by
     such holder and the consummation of an Exchange Offer.

          (f)   Governing Law. This Exchange and Registration Rights Agreement
     shall be governed by and construed in accordance with the laws of the State
     of New York.

          (g)   Headings. The descriptive headings of the several Sections and
     paragraphs of this Exchange and Registration Rights Agreement are inserted
     for convenience only, do not constitute a part of this Exchange and
     Registration Rights Agreement and shall not affect in any way the meaning
     or interpretation of this Exchange and Registration Rights Agreement.

          (h)   Entire Agreement; Amendments. This Exchange and Registration
     Rights Agreement and the other writings referred to herein (including the
     Indenture and the form of Securities) or delivered pursuant hereto which
     form a part hereof contain the entire understanding of the parties with
     respect to its subject matter. This Exchange and Registration Rights
     Agreement supersedes all prior agreements and understandings between the
     parties with respect to its subject matter. This Exchange and Registration
     Rights Agreement may be amended and the observance of any term of this
     Exchange and Registration Rights Agreement may be waived (either generally
     or in a particular instance

                                       23

<PAGE>

     and either retroactively or prospectively) only by a written instrument
     duly executed by the Company and the holders of at least a majority in
     aggregate principal amount of the Registrable Securities at the time
     outstanding. Each holder of any Registrable Securities at the time or
     thereafter outstanding shall be bound by any amendment or waiver effected
     pursuant to this Section 9(h), whether or not any notice, writing or
     marking indicating such amendment or waiver appears on such Registrable
     Securities or is delivered to such holder.

          (i)   Inspection. For so long as this Exchange and Registration Rights
     Agreement shall be in effect, this Exchange and Registration Rights
     Agreement and a complete list of the names and addresses of all the holders
     of Registrable Securities shall be made available for inspection and
     copying on any business day by any holder of Registrable Securities for
     proper purposes only (which shall include any purpose related to the rights
     of the holders of Registrable Securities under the Securities, the
     Indenture and this Agreement) at the offices of the Company at the address
     thereof set forth in Section 9(c) above and at the office of the Trustee
     under the Indenture.

          (j)   Counterparts. This agreement may be executed by the parties in
     counterparts, each of which shall be deemed to be an original, but all such
     respective counterparts shall together constitute one and the same
     instrument.

                                       24

<PAGE>

     If the foregoing is in accordance with your understanding, please sign and
return to us 15 counterparts hereof, and upon the acceptance hereof by you, on
behalf of each of the Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement between each of the Purchasers and the Company.
It is understood that your acceptance of this letter on behalf of each of the
Purchasers is pursuant to the authority set forth in a form of Agreement among
Purchasers, the form of which shall be submitted to the Company for examination
upon request, but without warranty on your part as to the authority of the
signers thereof.

                                        Very truly yours,

                                        The Gap, Inc.

                                        By:         /s/ SABRINA SIMMONS
                                             -----------------------------------
                                             Name:  Sabrina Simmons
                                             Title: Vice President and Treasurer

Accepted as of the date hereof:
Goldman, Sachs & Co.
J.P. Morgan Securities Inc.
Salomon Smith Barney Inc.
ABN AMRO Incorporated
Banc of America Securities LLC
HSBC Securities (USA) Inc.
Fleet Securities, Inc.
Mizuho International plc
Scotia Capital (USA) Inc.
US Bancorp Piper Jaffray Inc.

By:      /s/ GOLDMAN, SACHS & CO.
     --------------------------------
          (Goldman, Sachs & Co.)

                                       25

<PAGE>

                                                                       Exhibit A

                                  The Gap, Inc.

                         INSTRUCTION TO DTC PARTICIPANTS
                         -------------------------------

                                (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                        DEADLINE FOR RESPONSE: [DATE]*
                        -----------------------------

The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in the 8.15% Notes due December 15, 2005
and/or 8.80% Notes due December 15, 2008 (collectively, the "Securities") of The
Gap, Inc. (the "Company") are held.

The Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof. In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

It is important that beneficial owners of the Securities receive a copy of the
------------------------------------------------------------------------------
enclosed materials as soon as possible as their rights to have the Securities
--------------------------------------
included in the registration statement depend upon their returning the Notice
and Questionnaire by [Deadline For Response]. Please forward a copy of the
enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact The Gap, Inc., One
Harrison Street, San Francisco, California 94105, (415) 427-2000.

____________________
*Not less than 28 calendar days from date of mailing.

                                      A-1

<PAGE>

                                  The Gap, Inc.

                        Notice of Registration Statement
                                       and
                      Selling Securityholder Questionnaire
                      ------------------------------------

                                     (Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the
"Exchange and Registration Rights Agreement") between The Gap, Inc. (the
"Company") and the Purchasers named therein. Pursuant to the Exchange and
Registration Rights Agreement, the Company has filed with the United States
Securities and Exchange Commission (the "Commission") a registration statement
on Form [S-3] (the "Shelf Registration Statement") for the registration and
resale under Rule 415 of the Securities Act of 1933, as amended (the "Securities
Act"), of the Company's 8.15% Notes due December 15, 2005 (the "2005 Notes")
and/or 8.80% Notes due December 15, 2008 (the "2008 Notes" and, together with
the 2005 Notes, the "Securities"). A copy of the Exchange and Registration
Rights Agreement is attached hereto. All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Exchange and Registration
Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement. In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Company's counsel at the address set
forth herein for receipt ON OR BEFORE [Deadline for Response]. Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the Prospectus forming
a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related Prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

The term "Registrable Securities" is defined in the Exchange and Registration
          ----------------------
Rights Agreement.

                                      A-2

<PAGE>

                                    ELECTION

The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Exchange and Registration Rights
Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                      A-3

<PAGE>

                                  QUESTIONNAIRE

(1)  (a)  Full Legal Name of Selling Securityholder:

          ______________________________________________________________________

     (b)  Full Legal Name of Registered Holder (if not the same as in (a) above)
          of Registrable Securities Listed in Item (3) below:

          ______________________________________________________________________

     (c)  Full Legal Name of DTC Participant (if applicable and if not the same
          as (b) above) Through Which Registrable Securities Listed in Item (3)
          below are Held:

          ______________________________________________________________________

(2)       Address for Notices to Selling Securityholder:

                                __________________________________
                                __________________________________
                                __________________________________
          Telephone:            __________________________________
          Fax:                  __________________________________
          Contact Person:       __________________________________

(3)       Beneficial Ownership of Securities:

          Except as set forth below in this Item (3), the undersigned does not
          beneficially own any Securities.

     (a)  Principal amount of Registrable Securities beneficially owned:
          $___________ (2005 Notes); $___________ (2008 Notes); CUSIP No(s). of
          such Registrable Securities: _________________________________________

     (b)  Principal amount of Securities other than Registrable Securities
          beneficially owned: $___________ (2005 Notes); $___________ (2008
          Notes); CUSIP No(s). of such other Securities: _______________________

     (c)  Principal amount of Registrable Securities which the undersigned
          wishes to be included in the Shelf Registration Statement: $__________
          (2005 Notes); $___________ (2008 Notes); CUSIP No(s). of such
          Registrable Securities to be included in the Shelf Registration
          Statement: ___________________________________________________________

(4)       Beneficial Ownership of Other Securities of the Company:

          Except as set forth below in this Item (4), the undersigned Selling
          Securityholder is not the beneficial or registered owner of any other
          securities of the Company, other than the Securities listed above in
          Item (3).

          State any exceptions here:

                                      A-4

<PAGE>

(5)       Relationships with the Company:

          Except as set forth below, neither the Selling Securityholder nor any
          of its affiliates, officers, directors or principal equity holders (5%
          or more) has held any position or office or has had any other material
          relationship with the Company (or its predecessors or affiliates)
          during the past three years.

          State any exceptions here:

(6)       Plan of Distribution:

          Except as set forth below, the undersigned Selling Securityholder
          intends to distribute the Registrable Securities listed above in Item
          (3) only as follows (if at all): Such Registrable Securities may be
          sold from time to time directly by the undersigned Selling
          Securityholder or, alternatively, through underwriters, broker-dealers
          or agents. Such Registrable Securities may be sold in one or more
          transactions at fixed prices, at prevailing market prices at the time
          of sale, at varying prices determined at the time of sale, or at
          negotiated prices. Such sales may be effected in transactions (which
          may involve crosses or block transactions) (i) on any national
          securities exchange or quotation service on which the Registered
          Securities may be listed or quoted at the time of sale, (ii) in the
          over-the-counter market, (iii) in transactions otherwise than on such
          exchanges or services or in the over-the-counter market, or (iv)
          through the writing of options. In connection with sales of the
          Registrable Securities or otherwise, the Selling Securityholder may
          enter into hedging transactions with broker-dealers, which may in turn
          engage in short sales of the Registrable Securities in the course of
          hedging the positions they assume. The Selling Securityholder may also
          sell Registrable Securities short and deliver Registrable Securities
          to close out such short positions, or loan or pledge Registrable
          Securities to broker-dealers that in turn may sell such securities.

          State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus. The Selling

                                      A-5

<PAGE>

Securityholder understands that such information will be relied upon by the
Company in connection with the preparation of the Shelf Registration Statement
and related Prospectus.

In accordance with the Selling Securityholder's obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect. All notices hereunder and pursuant to the Exchange and Registration
Rights Agreement shall be made in writing, by hand-delivery, first-class mail,
or air courier guaranteeing overnight delivery as follows:

     (i)  To the Company:

                                The Gap, Inc.
                                One Harrison Street
                                San Francisco, CA 94105
                                Attention: General Counsel

     (ii) With a copy to:

                                Orrick, Herrington & Sutcliffe LLP
                                Old Federal Reserve Bank Building
                                400 Sansome Street
                                San Francisco, CA 94111
                                Attention: John F. Seegal, Esq.

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company's counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above. This
Agreement shall be governed in all respects by the laws of the State of New
York.

                                      A-6

<PAGE>

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated: _____________________

              __________________________________________________________________
              Selling Securityholder
              (Print/type full legal name of beneficial owner of Registrable
              Securities)

              By: ______________________________________________________________
              Name:
              Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:

                          ____________________________

                          ____________________________

                          ____________________________

                          ____________________________

                          ____________________________

                                      A-7

<PAGE>

                                                                       Exhibit B

              NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

The Gap, Inc.
c/o The Bank of New York
20 Broad Street, Lower Level
Attention: Corporate Trust Reorg. Department
New York, New York 10005

Attention: Trust Officer

        Re:  The Gap, Inc. (the "Company")
             8.15% Notes due December 15, 2005
             8.80% Notes due December 15, 2008

Dear Sirs:

Please be advised that ____________________ has transferred [$_______________
aggregate principal amount of the 8.15% Notes due December 15, 2005] [and]
[$___________ aggregate principal amount of 8.80% Notes due December 15, 2008]
pursuant to an effective Registration Statement on Form [S-3] (File No. 333-___)
filed by the Company.

We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a "Selling Holder" in the Prospectus
dated [date] or in supplements thereto, and that the aggregate principal amount
of the Notes transferred are the Notes listed in such Prospectus opposite such
owner's name.

Dated:

                                                Very truly yours,

                                                     __________________________
                                                     (Name)

                                                By:  __________________________
                                                     (Authorized Signature)

                                       B-1EXECUTION COPY

                   STRUCTURED ASSET MORTGAGE INVESTMENTS INC.,

                                     SELLER,

                            EMC MORTGAGE CORPORATION,

                                MASTER SERVICER,

                                       AND

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                                     TRUSTEE

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

                         POOLING AND SERVICING AGREEMENT

                          Dated as of September 1, 2001

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

               Structured Asset Mortgage Investments Trust 2001-4

                Mortgage Pass-Through Certificates Series 2001-4

<PAGE>

                                TABLE OF CONTENTS

                                                                          PAGE

                                    ARTICLE I

                                   Definitions

                                   ARTICLE II

         Conveyance of Mortgage Loans; Original Issuance of Certificates

Section 2.01.    Conveyance of Mortgage Loans to Trustee....................29
Section 2.02.    Acceptance of Mortgage Loans by Trustee....................30
Section 2.03.    Representations, Warranties and Covenants of
                 the Master Servicer........................................32
Section 2.03A.   Representations, Warranties and Covenants of the Seller....33
Section 2.04.    Substitution of Mortgage Loans.............................34
Section 2.05.    Representations and Warranties of the Trustee..............35
Section 2.06.    Issuance of Certificates...................................36
Section 2.07.    Representations and Warranties Concerning the Seller.......36

                                   ARTICLE III

                 Administration and Servicing of Mortgage Loans

Section 3.01.    Master Servicer to Assure Servicing........................38
Section 3.02.    Sub-Servicing Agreements Between Master Servicer and
                 Sub-Servicers..............................................39
Section 3.03.    Successor Sub-Servicers....................................39
Section 3.04.    Liability of the Master Servicer...........................40
Section 3.05.    Assumption or Termination of Sub-Servicing
                 Agreements by Trustee......................................40
Section 3.06.    Collection of Mortgage Loan Payments.......................41
Section 3.07.    Collection of Taxes, Assessments and Similar Items;
                 Servicing Accounts.........................................42
Section 3.08.    Access to Certain Documentation and Information
                 Regarding the Mortgage Loans...............................43
Section 3.09.    Maintenance of Primary Mortgage Insurance Policies;
                 Collection Thereunder......................................43
Section 3.10.    Maintenance of Hazard Insurance and Fidelity Coverage......44
Section 3.11.    Due-on-Sale Clauses; Assumption Agreements.................45
Section 3.12.    Realization Upon Defaulted Mortgage Loans; Title,
                 Management and Disposition of REO Property.................46
Section 3.13.    Trustee to Cooperate; Release of Mortgage Files............49
Section 3.14.    Servicing and Master Servicing Compensation................50
Section 3.15.    Annual Statement of Compliance.............................51
Section 3.16.    Annual Independent Public Accountants' Servicing Report....51
Section 3.17.    REMIC-Related Covenants....................................52
Section 3.18.    Additional Information.....................................52
Section 3.19.    Optional Purchase of Defaulted Mortgage Loans..............52
Section 3.20.    Required Purchase of Restricted Loans......................53
Section 3.21.    Reports Filed with the Securities and Exchange Commission;
                 Additional Information.....................................53

                                   ARTICLE IV

                                    Accounts

Section 4.01.    Protected Accounts.........................................54
Section 4.02.    Certificate Account........................................55
Section 4.03.    Permitted Withdrawals and Transfers from the Certificate
                 Account....................................................57
Section 4.04.    Accrued Interest Account...................................60

                                   ARTICLE IVA

                        The Certificate Insurance Policy

Section 4A.01.   Claims Under the Certificate Insurance Policy..............61
Section 4A.02.   Rights of the Certificate Insurer..........................61

                                    ARTICLE V

                                  Certificates

Section 5.01.    Certificates...............................................63
Section 5.02.    Registration of Transfer and Exchange of Certificates......67
Section 5.03.    Mutilated, Destroyed, Lost or Stolen Certificates..........71
Section 5.04.    Persons Deemed Owners......................................72
Section 5.05.    Transfer Restrictions on Residual Certificates.............72
Section 5.06.    Restrictions on Transferability of Private Certificates....73
Section 5.07.    ERISA Restrictions.........................................74
Section 5.08.    Rule 144A Information......................................74

                                   ARTICLE VI

                         Payments to Certificateholders

Section 6.01.    Distributions on the Certificates..........................76
Section 6.02.    [Reserved].................................................78
Section 6.03.    Allocation of Losses.......................................78
Section 6.04.    [Reserved].................................................79
Section 6.05.    Payments...................................................79
Section 6.06.    Statements to Certificateholders...........................80
Section 6.07.    Reports to the Trustee.....................................82
Section 6.08.    Monthly Advances...........................................84
Section 6.09.    Compensating Interest Payments.............................84
Section 6.10.    Reports of Foreclosures and Abandonment of Mortgaged
                 Property...................................................85

                                   ARTICLE VII

                               The Master Servicer

Section 7.01.    Liabilities of the Master Servicer.........................86
Section 7.02.    Merger or Consolidation of the Master Servicer.............86
Section 7.03.    Indemnification of the Trustee.............................86
Section 7.04.    Limitation on Liability of the Master Servicer and Others..86
Section 7.05.    Master Servicer Not to Resign..............................87
Section 7.06.    [Reserved].................................................88
Section 7.07.    Sale and Assignment of Master Servicing....................88

                                  ARTICLE VIII

                                     Default

Section 8.01.    Events of Default..........................................89
Section 8.02.    Trustee to Act; Appointment of Successor...................91
Section 8.03.    Notification to Certificateholders.........................92
Section 8.04.    Waiver of Defaults.........................................92
Section 8.05.    List of Certificateholders.................................92

                                   ARTICLE IX

                             Concerning the Trustee

Section 9.01.    Duties of Trustee..........................................94
Section 9.02.    Certain Matters Affecting the Trustee......................96
Section 9.03.    Trustee Not Liable for Certificates or Mortgage Loans......97
Section 9.04.    Trustee May Own Certificates...............................98
Section 9.05.    Trustee's Fees and Expenses................................98
Section 9.06.    Eligibility Requirements for Trustee.......................99
Section 9.07.    Insurance..................................................99
Section 9.08.    Resignation and Removal of the Trustee.....................99
Section 9.09.    Successor Trustee..........................................100
Section 9.10.    Merger or Consolidation of Trustee.........................100
Section 9.11.    Appointment of Co-Trustee or Separate Trustee..............101
Section 9.12.    Master Servicer Shall Provide Information as
                 Reasonably Required........................................102
Section 9.13.    Federal Information Returns and Reports to
                 Certificateholders.........................................102

                                    ARTICLE X

                                   Termination

Section 10.01.   Termination Upon Repurchase by the Seller or its
                 Designee or Liquidation of All Mortgage Loans..............104
Section 10.02.   Additional Termination Requirements........................106

                                   ARTICLE XI

                            Miscellaneous Provisions

Section 11.01.   Intent of Parties..........................................108
Section 11.02.   Amendment..................................................108
Section 11.03.   Recordation of Agreement...................................109
Section 11.04.   Limitation on Rights of Certificateholders.................109
Section 11.05.   Acts of Certificateholders.................................110
Section 11.06.   Control by Certificate Insurer.............................111
Section 11.07.   Governing Law..............................................111
Section 11.08.   Notices....................................................111
Section 11.09.   Severability of Provisions.................................112
Section 11.10.   Successors and Assigns.....................................112
Section 11.11.   Article and Section Headings...............................112
Section 11.12.   Counterparts...............................................112
Section 11.13.   Notice to Rating Agency....................................112
Section 11.14.   Third Party Beneficiary....................................113

EXHIBITS
Exhibit A       -   Forms of Certificates
Exhibit B       -   Mortgage Loan Schedule
Exhibit C       -   Representations and Warranties of the Seller
                    Concerning the Mortgage Loans
Exhibit D       -   Form of Request for Release
Exhibit E       -   Form of Affidavit pursuant to Section 860E(e)(4)
Exhibit F-1     -   Form of Investment Letter
Exhibit F-2     -   Form of Rule 144A and Related Matters Certificate
Exhibit G       -   Form of Trustee's Initial Certification
Exhibit H       -   Form of Trustee's Final Certification
Exhibit I       -   Schedule of Mortgage Loans with Lost Notes
Exhibit J       -   Schedule of Restricted Loans

<PAGE>

                         POOLING AND SERVICING AGREEMENT

          Pooling and Servicing Agreement dated as of September 1, 2001, among
Structured Asset Mortgage Investments Inc., a Delaware corporation, as the
seller (the "Seller"), EMC Mortgage Corporation, a Delaware corporation ("EMC"),
as master servicer (the "Master Servicer"), and Wells Fargo Bank Minnesota,
National Association, a national banking association, as trustee (the
"Trustee").

                              PRELIMINARY STATEMENT

          On or prior to the Closing Date, the Seller has acquired the Mortgage
Loans from EMC. On the Closing Date, the Seller will sell the Mortgage Loans and
certain other property to the Trust Fund and receive in consideration therefor
Certificates evidencing the entire beneficial ownership interest in the Trust
Fund. EMC will be the Master Servicer for the Mortgage Loans.

          As provided herein, the Trustee shall make an election for the assets
included in the Trust Fund to be treated for federal income tax purposes as a
REMIC ("REMIC I"). The Trustee shall also make an election for the certificates
issued by REMIC I, other than the Class R-1 Certificates, to be treated for
federal income tax purposes as a REMIC ("REMIC II"). For federal income tax
purposes, REMIC II shall be considered to have issued the Certificates, other
than the Class R-1 Certificates. On October 18, 2001 (the "Startup Day"), each
class of REMIC I Regular Certificates and each Class of Certificates except for
the Class R-1 and Class R-2 Certificates will be designated "regular interests"
in a REMIC. The Class R-1 and Class R-2 Certificates will be designated
"residual interests" in REMIC I and REMIC 2, respectively.

          The Mortgage Loans will consist of two Mortgage Loan Groups. The Group
1 Mortgage Loans and the Group 2 Mortgage Loans will have an aggregate Scheduled
Principal Balance as of the Cut-off Date, after deducting all Scheduled
Principal due or, in the case of the Simple Interest Loans in such Mortgage Loan
Group, the principal portion of all scheduled payments received, on or before
the Cut-off Date, of $67,065,251 and $15,137,663, respectively, or $82,202,914
for all of the Mortgage Loans. The initial principal amount of the Certificates
will not exceed such aggregate Scheduled Principal Balance.

          In consideration of the mutual agreements herein contained, the
Seller, the Master Servicer and the Trustee agree as follows:

                                   ARTICLE I

                                   Definitions

          Whenever used in this Agreement, the following words and phrases,
unless otherwise expressly provided or unless the context otherwise requires,
shall have the meanings specified in this Article.

          ACCOUNT: The Certificate Account (including each subaccount thereof),
the Protected Accounts, the Servicing Accounts or the Accrued Interest Account
as the context may require.

          ACCRUED CERTIFICATE INTEREST: For any Certificate for any Distribution
Date, the interest accrued during the related Interest Accrual Period at the
applicable Pass-Through Rate on the Current Principal Amount of such Certificate
immediately prior to such Distribution Date, calculated on the basis of a
360-day year consisting of twelve 30-day months, less (i) in the case of a
Senior Certificate, such Certificate's share of any Net Interest Shortfall and,
on and after the Cross-Over Date, the interest portion of any Realized Losses
and (ii) in the case of a Subordinate Certificate, such Certificate's share of
any Net Interest Shortfall and the interest portion of any Realized Losses.

          ACCRUED INTEREST ACCOUNT: The non-interest bearing trust account
created and maintained pursuant to Section 4.04 which shall be denominated
"Wells Fargo Bank Minnesota, National Association, as Trustee f/b/o holders of
Structured Asset Mortgage Investments Trust 2001-4 Mortgage Pass-Through
Certificates, Series 2001-4, Accrued Interest Account."

          ACCRUED INTEREST REIMBURSEMENT AMOUNT: With respect to the
Distribution Date in November 2001, an amount equal to $10,630.95, which is
equal to the sum of (a) the excess of (i) seventeen days of interest at the
weighted average Net Rate of the Group 1 Mortgage Loans times the Current
Principal Amount of the Group 1 Senior Certificates, measured as of the close of
business on September 1, 2001, over (ii) seventeen days of interest at the
weighted average Net Rate of the Group 1 Mortgage Loans times the Current
Principal Amount of the Group 1 Senior Certificates measured as of the close of
business on October 1, 2001 and (b) the excess of (i) seventeen days of interest
at the weighted average Net Rate of the Group 2 Mortgage Loans times the Current
Principal Amount of the Group 2 Senior Certificates, measured as of the close of
business on September 1, 2001, over (ii) seventeen days of interest at the
weighted average Net Rate of the Group 2 Mortgage Loans times the Current
Principal Amount of the Group 2 Senior Certificates measured as of the close of
business on October 1, 2001.

          ADVANCING DATE: The Business Day preceding the related Distribution
Date.

          AFFILIATE: As to any Person, any other Person controlling, controlled
by or under common control with such Person. "Control" means the power to direct
the management and policies of a Person, directly or indirectly, whether through
ownership of voting securities, by contract or otherwise. "Controlled" and
"Controlling" have meanings correlative to the foregoing. The Trustee may
conclusively presume that a Person is not an Affiliate of another Person unless
a Responsible Officer of the Trustee has actual knowledge to the contrary.

          AGREEMENT: This Pooling and Servicing Agreement and all amendments
hereof and supplements hereto.

          ALLOCABLE SHARE: With respect to each Class of Subordinate
Certificates:

               (1)  as to any Distribution Date and amounts distributable
                    pursuant to clauses (i) and (iv) of the Subordinate Optimal
                    Principal Amount, the fraction, expressed as a percentage,
                    the numerator of which is the Current Principal Amount of
                    such Class and the denominator of which is the aggregate
                    Current Principal Amount of all Classes of Subordinate
                    Certificates; and

               (2)  as to any Distribution Date and amounts distributable
                    pursuant to clause (ii), (iii) and (v) of the Subordinate
                    Optimal Principal Amount, and as to each Class of
                    Subordinate Certificates (other than the Class of
                    Subordinate Certificates having the lowest numerical
                    designation as to which the Class Prepayment Distribution
                    Trigger shall not be applicable) for which (x) the related
                    Class Prepayment Distribution Trigger has been satisfied on
                    such Distribution Date, the fraction, expressed as a
                    percentage, the numerator of which is the Current Principal
                    Amount of such Class and the denominator of which is the
                    aggregate Current Principal Amount of all Classes of
                    Subordinate Certificates and (y) the related Prepayment
                    Distribution Trigger has not been satisfied on such
                    Distribution Date, 0%; provided that if on a Distribution
                    Date, the Current Principal Amount of any Class of
                    Subordinate Certificates for which the related Class
                    Prepayment Distribution Trigger was satisfied on such
                    Distribution Date is reduced to zero, any amounts
                    distributed pursuant to this clause (b), to the extent of
                    such Class's remaining Allocable Share, shall be distributed
                    to the remaining Classes of Subordinate Certificates which
                    satisfy the Class Prepayment Distribution Trigger and to the
                    subordinate Class having the lowest numerical designation in
                    reduction of their respective Current Principal Amounts in
                    the order of their numerical Class designations.

          APPLICABLE CREDIT RATING: A credit rating of Aaa for any long-term
deposit or security or a rating of P-1 for any short-term deposit or security.

          APPLICABLE STATE LAW: For purposes of Section 9.13(d), the Applicable
State Law shall be (a) the law of the State of New York; and (b) the law of the
State of Minnesota, (c) the law of the State of Maryland and (d) such other
state law whose applicability shall have been brought to the attention of the
Trustee by either (i) an Opinion of Counsel delivered to it or (ii) written
notice from the appropriate taxing authority as to the applicability of such
state law.

          APPRAISED VALUE: With respect to any Mortgaged Property, the value
thereof determined by use of the original value of such Mortgage Property as
determined by the appraisal at the time of origination thereof.

          ASSUMED FINAL DISTRIBUTION DATE: With respect to each Class of
Certificates, the Distribution Date in October 2024.

          AVAILABLE FUNDS: With respect to any Distribution Date, an amount
equal to the aggregate of the following amounts with respect to the Mortgage
Loans: (a) all previously undistributed payments on account of principal
(including the principal portion of Monthly Payments, Principal Prepayments and
the principal portion of Liquidation Proceeds) and all previously undistributed
payments on account of interest received after the Cut-off Date and on or prior
to the related Advancing Date, (b) any Monthly Advances (including Certificate
Account Advances) and Compensating Interest Payments by the Master Servicer with
respect to such Distribution Date, (c) any amount reimbursed by the Trustee
pursuant to Subsection 4.02(d) in connection with losses on Permitted
Investments, (d) the Repurchase Price or Defaulted Mortgage Loan Repurchase
Price received in connection with the purchase or repurchase of a Mortgage Loan
required hereunder and (e) all amounts received in respect of REO Property,
PROVIDED, HOWEVER, that Available Funds will not include:

               (i) all payments that were due on or before the Cut-off Date
          except for the principal portion of payments on Simple Interest Loans
          due before the Cut-Off Date but received after the Cut-Off Date;

               (ii) all Principal Prepayments and Net Liquidation Proceeds
          received after the applicable Prepayment Period and all related
          payments of interest and any scheduled principal payments due in the
          related Due Period on Simple Interest Loans but received after the
          related Prepayment Period;

               (iii) all payments, other than Principal Prepayments, that
          represent early receipt of Monthly Payments due on a date or dates
          subsequent to the related Due Date;

               (iv) amounts received on particular Mortgage Loans as late
          payments of principal or interest and respecting which, and to the
          extent that, there are any unreimbursed Monthly Advances (including
          Certificate Account Advances);

               (v) amounts of Monthly Advances (including Certificate Account
          Advances) determined to be Nonrecoverable Advances;

               (vi) amounts permitted to be withdrawn from the Certificate
          Account pursuant to Subsection 4.03(a); and

               (vii) amounts withdrawn by the Trustee in respect of earnings on
          Permitted Investments.

          BALLOON MORTGAGE LOAN: A Mortgage Loan that provided on the Cut-off
Date for amortization on the basis of an amortization schedule with a
disproportionately large Monthly Payment due on its stated maturity date equal
to the remaining principal balance of such Mortgage Loan.

          BALLOON PAYMENTS: With respect to a Balloon Mortgage Loan, the
principal portion of the Monthly Payment due on its stated maturity equal to the
remaining principal balance of the Balloon Mortgage Loan.

          BANKRUPTCY CODE: The United States Bankruptcy Code, as amended as
codified in 11 U.S.C. ss.ss.101-1330.

          BANKRUPTCY MORTGAGE LOAN: Any Mortgage Loan that is the subject of a
proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code.

          BANKRUPTCY PLAN: An annual payment plan or other arrangement pursuant
to which a Mortgagor of a Bankruptcy Mortgage Loan is obligated to pay interest,
principal and any overdue interest or principal to the extent approved by the
bankruptcy court and certain other amounts in satisfaction of the related
Mortgage Loan.

          BOOK-ENTRY CERTIFICATES: Initially, all Classes of Certificates other
than the Class B-4, Class B-5, Class B-6 and Residual Certificates.

          BPO: With respect to any Mortgaged Property, (i) a drive-by valuation
(i.e. the interior of the property is generally not inspected) prepared by a
real estate broker in the community in which the Mortgaged Property is located
who is independent of the Seller and the Master Servicer or (ii) a statistical
market valuation which takes into account regional market data such as
historical trends, recent sales prices, property types and market conditions, in
each case obtained within three months prior to the Cut-off Date.

          BSMCC: Bear Stearns Mortgage Capital Corporation.

          BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which the New York Stock Exchange is closed or on which banking
institutions in New York City, Texas, Maryland, Minnesota or any other
jurisdiction in which either the Corporate Trust Office or the principal place
of business of the Master Servicer is located are authorized or obligated by law
or executive order to be closed.

          CASH FLOW PERFORMING: With respect to a Mortgage Loan, the Mortgagor
(i) has made at least three Original Scheduled Payments in the three months
immediately preceding the Cut-off Date, (ii) has made at least five Original
Scheduled Payments in the six months immediately preceding the Cut-off Date or
(iii) has made at least four Original Scheduled Payments in the six months
immediately preceding the Cut-off Date and at least two Original Scheduled
Payments in the three months immediately preceding the Cut-off Date.

          CERTIFICATE: Any mortgage pass-through certificate evidencing a
beneficial ownership interest in the Trust Fund signed and countersigned by the
Trustee in substantially the forms annexed hereto as Exhibit A, with the blanks
therein appropriately completed.

          CERTIFICATE ACCOUNT: The account or accounts created and maintained
pursuant to Section 4.02, which shall be denominated "Wells Fargo Bank
Minnesota, National Association, as Trustee f/b/o holders of Structured Asset
Mortgage Investments Trust 2001-4, Mortgage Pass-Through Certificates, Series
2001-4 and MBIA Insurance Corporation as Certificate Insurer - Certificate
Account," which shall have two subaccounts as provided in Section 4.02.

          CERTIFICATE ACCOUNT ADVANCE: As of any Determination Date, the amount
on deposit in a Protected Account which is not required to be transferred to the
Certificate Account for distribution during the calendar month in which such
Determination Date occurs but which is deposited in the Certificate Account and
used to make a Monthly Advance.

          CERTIFICATE INSURANCE POLICY: The financial guaranty insurance policy,
Policy No. 36410, issued by the Certificate Insurer for the benefit of the
Holders of the Senior Certificates.

          CERTIFICATE INSURER: MBIA Insurance Corporation or its successor in
interest.

          CERTIFICATE INSURER PREMIUM: On any Distribution Date, the monthly
premium owed to the Certificate Insurer pursuant to the Certificate Insurance
Policy, in an amount equal to one-twelfth of the product of the Certificate
Insurer Rate and the Current Principal Amount of the Senior Certificates as of
the related Determination Date.

          CERTIFICATE INSURER RATE: 0.10% per annum.

          CERTIFICATE OWNER: Any Person who is the beneficial owner of a
Certificate registered in the name of the Depository or its nominee.

          CERTIFICATE REGISTER: The register maintained pursuant to Section
5.02.

          CERTIFICATEHOLDER: A Holder of a Certificate.

          CLASS: With respect to the Certificates, A-1, A-2, B-1, B-2, B-3, B-4,
B-5, B-6, R-1 and R-2.

          CLASS PREPAYMENT DISTRIBUTION TRIGGER: For each Class of Subordinate
Certificates for any Distribution Date, the Class Prepayment Distribution
Trigger is satisfied if the fraction (expressed as a percentage), the numerator
of which is the aggregate Current Principal Amount of such Class and each Class
of Subordinate Certificates subordinate thereto, if any, and the denominator of
which is the aggregate Scheduled Principal Balance of all of the Mortgage Loans
as of the related Due Date, equals or exceeds such percentage calculated as of
the Closing Date.

          CLOSING DATE: October 18, 2001.

          CODE: The Internal Revenue Code of 1986, as amended.

          COMPENSATING INTEREST PAYMENTS: As defined in Section 6.09.

          CORPORATE TRUST OFFICE: The office of the Trustee at which at any
particular time its corporate trust business is administered, which office, at
the date of the execution of this Agreement, is located, for purposes of
presentment and surrender to the Trustee of the Certificates for the final
distribution thereon, at Sixth Avenue and Marquette, Minneapolis, Minnesota
55479, Attention: SAMI 2001-4, and for all other purposes, at 11000 Broken Land
Parkway, Columbia, Maryland 21044, Attention: SAMI 2001-4, or at any other
address that the Trustee may designate from time to time by notice to the
Certificateholders, the Master Servicer and the Certificate Insurer.

          CROSS-OVER DATE: The first Distribution Date on which the aggregate
Current Principal Amount of the Subordinate Certificates has been reduced to
zero (giving effect to all distributions on such Distribution Date).

          CURRENT LOAN-TO-VALUE RATIO: As of any date of determination with
respect to a Mortgage Loan, a fraction, expressed as a percentage, the numerator
of which is the Outstanding Principal Balance of such Mortgage Loan, and the
denominator of which is the Value for the related Mortgaged Property.

          CURRENT PRINCIPAL AMOUNT: With respect to any Certificate (other than
the Residual Certificates) as of any Distribution Date, the initial principal
amount of such Certificate as of the Closing Date as reduced by (A) the sum of
(i) all amounts distributed on previous Distribution Dates on such Certificate
on account of principal, (ii) the principal portion of all Realized Losses (in
the case of the Senior Certificates, with respect to the related Mortgage Loan
Group) allocated prior to such Distribution Date to such Certificate (taking
into account the applicable Loss Allocation Limitation and, in the case of a
Senior Certificate, any payments prior to such Distribution Date by the
Certificate Insurer pursuant to the Certificate Insurance Policy allocated to
such Senior Certificate), and (iii) in the case of a Subordinate Certificate,
such Certificate's PRO RATA share, if any, of the Subordinate Certificate
Writedown Amount for previous Distribution Dates. With respect to any Class of
Certificates (other than the Residual Certificates), the Current Principal
Amount thereof will equal the sum of the Current Principal Amounts of all
Certificates in such Class. The Residual Certificates do not have Current
Principal Amounts.

          CUT-OFF DATE: September 1, 2001.

          CUT-OFF DATE SCHEDULED PRINCIPAL BALANCE: $82,202,914.

          DEBT SERVICE REDUCTION: Any reduction of the Monthly Payments which a
Mortgagor is obligated to pay with respect to a Mortgage Loan as a result of any
proceeding under the Bankruptcy Code or any other similar state law or other
proceeding.

          DEBTOR RELIEF LAWS: Any applicable liquidation, conservatorship,
receivership, bankruptcy, insolvency, rearrangement, moratorium, reorganization,
or similar debtor relief laws affecting the rights of creditors generally from
time to time in effect.

          DEFAULTED MORTGAGE LOAN: Any Mortgage Loan as to which the Mortgagor
has failed to make unexcused payment in full of three or more consecutive
Monthly Payments.

          DEFICIENCY AMOUNT: The meaning given to such term in the Certificate
Insurance Policy.

          DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation of
the Mortgaged Property by a court of competent jurisdiction in an amount less
than the then outstanding indebtedness under the Mortgage Loan, which valuation
results from a proceeding initiated under the Bankruptcy Code or any other
similar state law or other proceeding.

          DEPOSITORY: The Depository Trust Company, the nominee of which is Cede
& Co., or any successor thereto.

          DEPOSITORY AGREEMENT: The meaning specified in Subsection 5.01(a)
hereof.

          DEPOSITORY PARTICIPANT: A broker, dealer, bank or other financial
institution or other Person for whom from time to time the Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

          DESIGNATED DEPOSITORY INSTITUTION: A depository institution
(commercial bank, mutual savings bank or savings and loan association) or trust
company (which may include the Trustee), the deposits of which are insured by
the FDIC or Bank Insurance Fund to the extent provided by law or the Federal
Home Loan Bank of Cincinnati.

          DETERMINATION DATE: The 18th day of the month of the Distribution
Date, or if such day is not a Business Day, the following Business Day (but in
no event less than two Business Days prior to the related Distribution Date).

          DIRECTLY OPERATE: With respect to any REO Property, the furnishing or
rendering of services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for sale to
customers, the performance of any construction work thereon or any use of such
REO Property in a trade or business conducted by the Trust Fund other than
through an Independent Contractor; provided, however, that the Trustee (or the
Master Servicer on behalf of the Trustee) shall not be considered to "Directly
Operate" an REO Property solely because the Trustee (or the Master Servicer on
behalf of the Trustee) establishes rental terms, chooses tenants, enters into or
renews leases, deals with taxes and insurance, or makes decisions as to repairs
or capital expenditures with respect to such REO Property.

          DISTRIBUTION DATE: The 25th day of any month, beginning in October
2001, or, if such 25th day is not a Business Day, the Business Day immediately
following.

          DTC CUSTODIAN: Wells Fargo Bank Minnesota, National Association, or
its successors in interest as custodian for the Depository.

          DUE DATE: With respect to each Mortgage Loan, the date in each month
on which its Monthly Payment is due if such due date is the first day of a month
and otherwise is deemed to be the first day of the following month.

          DUE PERIOD: With respect to any Distribution Date, the period
commencing on the second day of the month preceding the month in which the
Distribution Date occurs and ending at the close of business on the first day of
the month in which the Distribution Date occurs.

          EMC: EMC Mortgage Corporation, a Delaware corporation, or its
successors in interest.

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

          EVENT OF DEFAULT: An event described in Section 8.01.

          EXCESS LIQUIDATION PROCEEDS: To the extent that such amount is not
required by law to be paid to the related Mortgagor, the amount, if any, by
which Liquidation Proceeds with respect to a Liquidated Mortgage Loan exceed the
sum of (i) the Outstanding Principal Balance of such Mortgage Loan and accrued
but unpaid interest at the related Mortgage Rate through the last day of the
month in which the related Liquidation Date occurs, plus (ii) related
Liquidation Expenses.

          FANNIE MAE: Fannie Mae (formerly the Federal National Mortgage
Association) or any successor thereto.

          FDIC: Federal Deposit Insurance Corporation or any successor thereto.

          FHA: Federal Housing Authority or any successor thereto.

          FHA LOAN: Any Mortgage Loan that is insured by the FHA.

          FORBEARANCE MORTGAGE LOAN: Any Mortgage Loan that is subject to a
Forbearance Plan.

          FORBEARANCE PLAN: An annual payment plan pursuant to which a Mortgagor
of a Forbearance Mortgage Loan is obligated to pay interest, principal and any
related overdue interest or principal to the extent agreed to by EMC and certain
other amounts in satisfaction of the related Mortgage Loan.

          FRACTIONAL UNDIVIDED INTEREST: With respect to any Class of
Certificates (other than the Residual Certificates), the fractional undivided
interest evidenced by any Certificate of such Class, the numerator of which is
the Current Principal Amount of such Certificate and the denominator of which is
the Current Principal Amount of such Class. With respect to the Class R-1 and
Class R-2 Certificates, in each case, 100%. With respect to the Certificates in
the aggregate, the fractional undivided interest evidenced by each of the Class
R-1 and Class R-2 Certificates will be deemed to equal 1% and (ii) a Certificate
of any other Class will be deemed to equal 98% multiplied by a fraction, the
numerator of which is the Current Principal Amount of such Certificate and the
denominator of which is the Current Principal Amount of all the Certificates.

          FREDDIE MAC: Freddie Mac, formerly the Federal Home Loan Mortgage
Corporation, or any successor thereto.

          FUNDS TRANSFER DATE: The Business Day prior to the related
Distribution Date in any month.

          GLOBAL CERTIFICATE: Any Private Certificate registered in the name of
the Depository or its nominee, beneficial interests in which are reflected on
the books of the Depository or on the books of a Person maintaining an account
with such Depository (directly or as an indirect participant in accordance with
the rules of such Depository). As of the Closing Date there will be no Global
Certificates.

          GROUP AVAILABLE FUNDS: Group 1 Available Funds or Group 2 Available
Funds, as applicable.

          GROUP 1 AVAILABLE FUNDS: With respect to any Distribution Date,
Available Funds attributable to the Group 1 Mortgage Loans.

          GROUP 2 AVAILABLE FUNDS: With respect to any Distribution Date,
Available Funds attributable to the Group 2 Mortgage Loans.

          GROUP 1 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 2 MORTGAGE LOANS: The Mortgage Loans identified as such on the
Mortgage Loan Schedule.

          GROUP 1 SENIOR CERTIFICATES: The Class A-1 Certificates

          GROUP 2 SENIOR CERTIFICATES: The Class A-2 Certificates.

          HOLDER: The Person in whose name a Certificate is registered in the
Certificate Register, except that, subject to Subsections 11.02(b) and 11.05(e),
solely for the purpose of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Seller, the Master Servicer, a
Sub-Servicer, if any, or the Trustee, or any Affiliate thereof shall be deemed
not to be outstanding and the Fractional Undivided Interest evidenced thereby
shall not be taken into account in determining whether the requisite percentage
of Fractional Undivided Interests necessary to effect any such consent has been
obtained, unless all the relevant Certificates are held by such Person.

          HUD: The United States Department of Housing and Urban Development and
any Successor thereto.

          INDEMNIFIED PERSONS: The Trustee, its officers, directors, agents and
employees and any separate or co-trustee and its officers, directors, agents and
employees.

          INDEPENDENT: When used with respect to any specified Person, this term
means that such Person (a) is in fact independent of the Seller or the Master
Servicer and of any Affiliate of the Seller or the Master Servicer, (b) does not
have any direct financial interest or any material indirect financial interest
in the Seller or the Master Servicer, or any Affiliate of the Seller or the
Master Servicer, and (c) is not connected with the Seller or the Master
Servicer, or any Affiliate as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions.

          INDEPENDENT CONTRACTOR: Either (i) any Person (other than the Master
Servicer) that would be an "independent contractor" with respect to the Trust
Fund within the meaning of Section 856(d)(3) of the Code if the Trust Fund were
a real estate investment trust (except that the ownership tests set forth in
that Section shall be considered to be met by any Person that owns, directly or
indirectly, 35% or more of any Class of Certificates), so long as the Trust Fund
does not receive or derive any income from such Person and provided that the
relationship between such Person and the Trust Fund is at arm's length, all
within the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any
other Person (including the Master Servicer) if the Trustee has received an
Opinion of Counsel to the effect that the taking of any action in respect of any
REO Property by such Person, subject to any conditions therein specified, that
is otherwise herein contemplated to be taken by an Independent Contractor will
not cause such REO Property to cease to qualify as "foreclosure property" within
the meaning of Section 860G(a)(8) of the Code (determined without regard to the
exception applicable for purposes of Section 860D(a) of the Code), or cause any
income realized in respect of such REO Property to fail to qualify as Rents from
Real Property.

          INDIVIDUAL CERTIFICATE: Any Private Certificate registered in the name
of the Holder other than the Depository or its nominee.

          INSTITUTIONAL ACCREDITED INVESTOR: Any Person meeting the requirements
of Rule 501 (a)(1), (2), (3) or (7) of Regulation D under the Securities Act or
any entity all the equity holders in which come within such paragraphs.

          INSURANCE AGREEMENT: The Insurance Agreement, dated as of October 18,
2001, among the Certificate Insurer, the Master Servicer, the Seller and the
Trustee, and all amendments thereof and supplements thereto.

          INSURANCE POLICY: With respect to any Mortgage Loan, any Primary
Mortgage Insurance Policy, standard hazard insurance policy, flood insurance
policy or title insurance policy, or any FHA Insurance or VA guarantee.

          INSURANCE PROCEEDS: Amounts paid by the insurer under any Insurance
Policy covering any Mortgage Loan or Mortgaged Property other than amounts
required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note or Security Instrument and other than amounts used to repair or
restore the Mortgaged Property or to reimburse Insured Expenses.

          INSURED EXPENSES: Expenses covered by any Insurance Policy.

          INSURED PAYMENT: With respect to any Distribution Date, the sum of the
Deficiency Amount and any Preference Amount.

          INSURER: Any issuer of an Insurance Policy.

          INTEREST ACCRUAL PERIOD: With respect to each Distribution Date, for
each Class of Certificates, the calendar month preceding the month in which the
Distribution Date occurs, commencing with September 2001 for the initial
Distribution Date.

          INTEREST SHORTFALL: With respect to any Distribution Date and each
Mortgage Loan that during the related Prepayment Period was the subject of a
Voluntary Principal Prepayment, or constitutes a Relief Act Mortgage Loan, an
amount determined as follows:

                    (1) partial principal prepayments: The difference between
               (i) one month's interest at the applicable Net Rate on the amount
               of such prepayment and (ii) the amount of interest for the
               calendar month of such prepayment (adjusted to the applicable Net
               Rate) received at the time of such prepayment;

                    (2) principal prepayments in full received during the
               relevant Prepayment Period: The difference between (i) one
               month's interest at the applicable Net Rate on the Scheduled
               Principal Balance of such Mortgage Loan immediately prior to such
               prepayment and (ii) the amount of interest for the calendar month
               of such prepayment (adjusted to the applicable Net Rate) received
               at the time of such prepayment; and

                    (3) Relief Act Mortgage Loans: As to any Relief Act Mortgage
               Loan, the excess of (i) 30 days' interest (or, in the case of a
               principal prepayment in full, interest to the date of prepayment)
               on the Scheduled Principal Balance thereof (or, in the case of a
               principal prepayment in part, on the amount so prepaid) at the
               related Net Rate over (ii) 30 days' interest (or, in the case of
               a principal prepayment in full, interest to the date of
               prepayment) on such Scheduled Principal Balance (or, in the case
               of a Principal Prepayment in part, on the amount so prepaid) at
               the Net Rate required to be paid by the Mortgagor as limited by
               application of the Relief Act.

          INVESTMENT LETTER: The letter to be furnished by each Institutional
Accredited Investor which purchases any Class of Private Certificates in
connection with such purchase, substantially in the form set forth as Exhibit
F-1 hereto.

          LIQUIDATED MORTGAGE LOAN: Any defaulted Mortgage Loan as to which the
Master Servicer has determined that all amounts it expects to recover from or on
account of such Mortgage Loan have been recovered.

          LIQUIDATION DATE: With respect to any Liquidated Mortgage Loan, the
date on which the Master Servicer has certified that such Mortgage Loan has
become a Liquidated Mortgage Loan.

          LIQUIDATION EXPENSES: With respect to a Mortgage Loan in liquidation,
unreimbursed expenses paid or incurred by or for the account of the Master
Servicer and not recovered by the Master Servicer under any Primary Mortgage
Insurance Policy for reasons other than the Master Servicer's or sub-servicer's
failure to ensure the maintenance of or compliance with a Primary Mortgage
Insurance Policy, such expenses including (a) property protection expenses, (b)
property sales expenses, (c) foreclosure and sale costs, including court costs
and reasonable attorneys' fees, and (d) similar expenses reasonably paid or
incurred in connection with liquidation.

          LIQUIDATION PROCEEDS: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through trustee's sale, foreclosure sale,
Insurance Proceeds, condemnation proceeds or otherwise.

          LOAN SUMMARY AND REMITTANCE REPORT: The report to be submitted by the
Master Servicer to the Trustee pursuant to Subsection 6.07.

          LOSS ALLOCATION LIMITATION: The meaning specified in Section
6.03(b)(B) hereof.

          LOST NOTES: The Original Mortgage Notes that are reported by the
Seller as being lost, as indicated on Exhibit I hereto.

          MASTER SERVICER: With respect to the Mortgage Loans, EMC, or its
successor in interest, or any successor master servicer with respect to the
Mortgage Loans appointed as herein provided.

          MASTER SERVICING FEE: As to any Mortgage Loan and Distribution Date,
an amount equal to the product of (i) the Scheduled Principal Balance of such
Mortgage Loan as of the Due Date in the preceding calendar month and (ii) the
Master Servicing Fee Rate.

          MASTER SERVICING FEE RATE: With respect to each Mortgage Loan, the per
annum rate set forth on the Mortgage Loan Schedule with respect to such Mortgage
Loan.

          MONTHLY ADVANCE: The advance, other than in respect of delinquent
payments of principal on Simple Interest Loans, (including a Certificate Account
Advance) required to be made by the Master Servicer on the related Advancing
Date pursuant to Section 6.08.

          MONTHLY PAYMENT: With respect to any Mortgage Loan and any month, the
scheduled payment of principal and interest due during such month on such
Mortgage Loan which either is payable by a Mortgagor in such month under the
related Mortgage Note or, in the case of REO Property, would otherwise have been
payable under the related Mortgage Note.

          MOODY'S: Moody's Investors Services, Inc., or its successors in
interest.

          MORTGAGE FILE: The mortgage documents listed in Section 2.01(b)
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

          MORTGAGE LOAN: A mortgage loan transferred and assigned to the Trustee
pursuant to Section 2.01 or Section 2.04 and held as a part of the Trust Fund,
as identified in the Mortgage Loan Schedule, including a mortgage loan the
property securing which has become an REO Property.

          MORTGAGE LOAN GROUP: The Group 1 Mortgage Loans or the Group 2
Mortgage Loans, as applicable.

          MORTGAGE LOAN SCHEDULE: The schedule, attached hereto as Exhibit B
with respect to the Mortgage Loans and as amended from time to time to reflect
the repurchase or substitution of Mortgage Loans pursuant to this Agreement,
which shall separately identify the Group I Mortgage Loans and the Group 2
Mortgage Loans.

          MORTGAGE NOTE: The originally executed note or other evidence of the
indebtedness of a Mortgagor under the related Mortgage Loan.

          MORTGAGE RATE: The annual rate at which interest accrues from time to
time on any Mortgage Loan pursuant to the related Mortgage Note, which rate as
of the Cut-off Date is equal to the "Mortgage Rate" set forth with respect
thereto on the Mortgage Loan Schedule.

          MORTGAGED PROPERTY: Land and improvements securing the indebtedness of
a Mortgagor under the related Mortgage Loan or, in the case of REO Property,
such REO Property.

          MORTGAGOR: The obligor on a Mortgage Note.

          MULTIFAMILY LOAN: The Group 1 Mortgage Loan having a Scheduled
Principal Balance as of the Cut-Off Date of $1,014,755, and located in Boston,
Massachusetts, which, as of the Closing Date, is being sub-serviced by Reilly,
as indicated on the Mortgage Loan Schedule.

          NET INTEREST SHORTFALL: With respect to any Distribution Date, the
Interest Shortfall, if any, for such Distribution Date net of Compensating
Interest Payments and payments under the Certificate Insurance Policy made with
respect to such Distribution Date.

          NET LIQUIDATION PROCEEDS: As to any Liquidated Mortgage Loan,
Liquidation Proceeds net of (i) Liquidation Expenses which are payable therefrom
to the Master Servicer in accordance with this Agreement and (ii) unreimbursed
Servicing Advances by the Master Servicer or a Sub-Servicer and Monthly Advances
including Certificate Account Advances.

          NET RATE: With respect to each Mortgage Loan, the Mortgage Rate in
effect from time to time less the sum of the Master Servicing Fee (each such fee
being expressed as a per annum rate).

          NONRECOVERABLE ADVANCE: Any Monthly Advance or Servicing Advance (i)
which was previously made or is proposed to be made by the Master Servicer and
(ii) which, in the good faith judgment of the Master Servicer, as evidenced by
an Officer's Certificate, will not or, in the case of a proposed advance, would
not, be ultimately recoverable by the Master Servicer from Liquidation Proceeds,
Insurance Proceeds or future payments on the Mortgage Loan for which such
advance was made.

          OFFERED CERTIFICATE: Any Class A-1, Class A-2, Class B-1, Class B-2
and Class B-3 Certificate.

          OFFERED SUBORDINATE CERTIFICATES: The Class B-1, Class B-2 and Class
B-3 Certificates.

          OFFICER'S CERTIFICATE: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a Vice President or
Assistant Vice President or other authorized officer of the Master Servicer and
delivered to the Trustee, as required by this Agreement.

          OPINION OF COUNSEL: A written opinion of counsel who is or are
acceptable to the Trustee and who, unless required to be Independent (an
"Opinion of Independent Counsel"), may be internal counsel for the Master
Servicer.

          ORIGINAL SCHEDULED PAYMENT: With respect to any Mortgage Loan and any
month, the original scheduled payment or payments of principal and interest due
during such month on such Mortgage Loan which either is payable by a Mortgagor
in such month under the related Mortgage Note (or the Mortgage Note as formally
modified) or, in the case of REO Property, would otherwise have been payable
absent any subsequent modifications under the related Mortgage Note, as
determined pursuant to the amortization schedule created in connection with
origination of the related Mortgage Note.

          ORIGINAL SUBORDINATE PRINCIPAL AMOUNT: The sum of the aggregate
Current Principal Amounts of each Class of Subordinate Certificates as of the
Cut-off Date.

          OUTSTANDING MORTGAGE LOAN: With respect to any Due Date, a Mortgage
Loan which, prior to such Due Date, was not the subject of a Principal
Prepayment in full, did not become a Liquidated Mortgage Loan and was not
purchased pursuant to Sections 2.02, 2.03A, 3.19 or 3.20 or replaced pursuant to
Section 2.04.

          OUTSTANDING PRINCIPAL BALANCE: As of the time of any determination,
the principal balance of a Mortgage Loan, or, in the case of an REO Property,
the principal balance of the related Mortgage Loan at the time such property was
acquired by the Trust Fund less any Net Insurance Proceeds with respect thereto
to the extent applied to principal.

          PASS-THROUGH RATE: As to each Class of Certificates, other than the
Residual Certificates, the rate of interest set forth, or determined as provided
with respect thereto, in Section 5.01. Any monthly calculation of interest at a
stated rate shall be based upon annual interest at such rate divided by twelve.
The Residual Certificates do not have Pass-Through Rates.

          PERMITTED INVESTMENTS: Any one or more of the following obligations or
securities held in the name of the Trustee for the benefit of the
Certificateholders and the Certificate Insurer:

                    (i) direct obligations of, and obligations the timely
               payment of which are fully guaranteed by the United States of
               America or any agency or instrumentality of the United States of
               America the obligations of which are backed by the full faith and
               credit of the United States of America;

                    (ii) demand or time deposits, federal funds or bankers'
               acceptances issued by any depository institution or trust company
               incorporated under the laws of the United States of America or
               any state thereof (including the Trustee acting in its commercial
               banking capacity) and subject to supervision and examination by
               federal and/or state banking authorities, provided that the
               commercial paper and/or the short-term debt rating and/or the
               long-term unsecured debt obligations or deposits of such
               depository institution or trust company at the time of such
               investment or contractual commitment providing for such
               investment have the Applicable Credit Rating or better from the
               Rating Agency;

                    (iii) repurchase obligations approved by the Certificate
               Insurer so long as the Senior Certificates are outstanding or any
               amounts are owed to the Certificate Insurer, and the Certificate
               Insurer is not in default under the Certificate Insurance Policy,
               and thereafter, with respect to (a) any security described in
               clause (i) above or (b) any other security issued or guaranteed
               by an agency or instrumentality of the United States of America,
               the obligations of which are backed by the full faith and credit
               of the United States of America, in either case entered into with
               a depository institution or trust company (acting as principal)
               described in clause (ii) above where the Trustee holds the
               security therefor;

                    (iv) securities bearing interest or sold at a discount
               issued by any corporation (including the Trustee) incorporated
               under the laws of the United States of America or any state
               thereof that have the Applicable Credit Rating or better from the
               Rating Agency at the time of such investment or contractual
               commitment providing for such investment; PROVIDED, HOWEVER, that
               securities issued by any particular corporation will not be
               Permitted Investments to the extent that investments therein will
               cause the then outstanding principal amount of securities issued
               by such corporation and held as part of the Trust to exceed 10%
               of the aggregate Outstanding Principal Balances and amounts of
               all the Mortgage Loans and Permitted Investments held as part of
               the Trust;

                    (v) commercial paper (including both non-interest-bearing
               discount obligations and interest-bearing obligations payable on
               demand or on a specified date not more than one year after the
               date of issuance thereof) having the Applicable Credit Rating or
               better from the Rating Agency at the time of such investment;

                    (vi) a Reinvestment Agreement issued by any bank, insurance
               company or other corporation or entity;

                    (vii) any other demand, money market or time deposit,
               obligation, security or investment as may be acceptable to the
               Rating Agency and the Certificate Insurer as evidenced in writing
               by the Rating Agency and the Certificate Insurer to the Trustee;

                    (viii) any money market or common trust fund having the
               Applicable Credit Rating or better from the Rating Agency,
               including any such fund for which the Trustee or any affiliate of
               the Trustee acts as a manager or advisor; and

                    (ix) any other investment acceptable to the Rating Agency
               and the Certificate Insurer.

PROVIDED, HOWEVER, that no instrument or security shall be a Permitted
Investment if such instrument or security evidences a right to receive only
interest payments with respect to the obligations underlying such instrument or
if such security provides for payment of both principal and interest with a
yield to maturity in excess of 120% of the yield to maturity at par or if such
instrument or security is purchased at a price greater than par.

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

          PHYSICAL CERTIFICATES: Initially, the Private Certificates.

          PLAN: As defined in Section 5.07(a).

          POOL 1 BALANCE: For any Distribution Date, the Scheduled Principal
Balance of the Group 1 Mortgage Loans as of the close of business on the last
day of the related Due Period (adjusted upwards if delinquent payments have not
been advanced by the Master Servicer or the Servicer).

          POOL 2 BALANCE: For any Distribution Date, the Scheduled Principal
Balance of the Group 2 Mortgage Loans as of the close of business on the last
day of the related Due Period (adjusted upwards if delinquent payments have not
been advanced by the Master Servicer or a Servicer).

          PREFERENCE AMOUNT: The meaning given to such term in the Certificate
Insurance Policy.

          PREPAYMENT PERIOD: With respect to any Mortgage Loan and any
Distribution Date, the calendar month preceding the month of such Distribution
Date.

          PRIMARY MORTGAGE INSURANCE POLICY: Any primary mortgage guaranty
insurance policy issued in connection with a Mortgage Loan which provides
compensation to a Mortgage Note holder in the event of default by the obligor
under such Mortgage Note or the related Security Instrument, or any replacement
policy therefor.

          PRINCIPAL PREPAYMENT: Any payment (whether partial or full) or other
recovery of principal on a Mortgage Loan which is received in advance of its
scheduled Due Date to the extent that it is not accompanied by an amount as to
interest representing scheduled interest due on any date or dates in any month
or months subsequent to the month of prepayment, including Insurance Proceeds
and the purchase price in connection with any purchase of a Mortgage Loan, any
cash deposit in connection with the substitution of a Mortgage Loan, and the
principal portion of Net Liquidation Proceeds.

          PRIVATE CERTIFICATE: Any Class B-4, Class B-5, Class B-6, Class R-1,
or Class R-2 Certificate.

          PROTECTED ACCOUNT: A segregated account established and maintained by
the Master Servicer or any Sub-Servicer with respect to the Mortgage Loans and
with respect to REO Property in a Designated Depository Institution for receipt
of principal and interest and other amounts as described in Section 4.01.

          QIB: A Qualified Institutional Buyer as defined in Rule 144A
promulgated under the Securities Act.

          QUALIFIED INSURER: Any insurance company duly qualified as such under
the laws of the state or states in which the related Mortgaged Property or
Mortgaged Properties is or are located, duly authorized and licensed in such
state or states to transact the type of insurance business in which it is
engaged and approved as an insurer by the Master Servicer, so long as the claims
paying ability of which is acceptable to the Rating Agency for pass-through
certificates having the same rating as the Certificates rated by the Rating
Agency as of the Closing Date.

          RATING AGENCY: Moody's.

          RATING AGENCY ELIGIBLE ACCOUNT: An account, including one maintained
with the Trustee, which either (i) is a trust account maintained with the
corporate trust department of a depository institution or trust company
(including, without limitation, the Trustee) organized under the laws of the
United States of America or any one of the states thereof or the District of
Columbia which is not affiliated with the Master Servicer, any Sub-Servicer or
any other master servicer other than the Trustee, (ii) is maintained with an
entity which is an institution whose deposits are insured by the FDIC or the
Bank Insurance Fund, the unsecured and uncollateralized long-term debt
obligations of which shall be rated "A2" or higher by Moody's, or one of the two
highest short-term ratings by Moody's, and which is either (a) a federal savings
association duly organized, validly existing and in good standing under the
federal banking laws, (b) an institution duly organized, validly existing and in
good standing under the applicable banking laws of any state, (c) a national
banking association under the federal banking laws or, (d) a principal
subsidiary of a bank holding company, or (iii) otherwise meets the requirements
of the Rating Agency for the maintenance of the ratings on the Certificates.

          REALIZED LOSS: Any (i) Deficient Valuation or (ii) as to any
Liquidated Mortgage Loan, the positive amount, if any, of (x) the Outstanding
Principal Balance of such Liquidated Mortgage Loan plus accrued and unpaid
interest thereon at the Mortgage Rate through the last day of the month of such
liquidation LESS (y) the related Net Liquidation Proceeds with respect to such
Mortgage Loan.

          RECORD DATE: With respect to (i) the first Distribution Date, the
Closing Date and (ii) any Distribution Date thereafter, the close of business on
the last Business Day of the month immediately preceding the month of such
Distribution Date.

          REILLY: Reilly Mortgage Group, Inc.

          REINVESTMENT AGREEMENTS: One or more reinvestment agreements,
acceptable to the Rating Agency and the Certificate Insurer, from a bank,
insurance company or other corporation or entity (including the Trustee).

          RELIEF ACT: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

          RELIEF ACT MORTGAGE LOAN: Any Mortgage Loan as to which the Monthly
Payment thereof has been reduced due to the application of the Relief Act.

          REMIC: A real estate mortgage investment conduit, as defined in the
Code.

          REMIC I: For federal income tax purposes, the REMIC consisting of the
assets included in the Trust Fund, as described in Section 5.01(c).

          REMIC I REGULAR CERTIFICATES: The meaning given to such term in
Section 5.01(c).

          REMIC II: For federal income tax purposes, the REMIC consisting of the
REMIC I Regular Certificates, as described in Section 5.01(c).

          REMIC II REGULAR CERTIFICATES: The meaning given to such term in
Section 5.01(d).

          REMIC OPINION: An Opinion of Independent Counsel, to the effect that
the proposed action described therein would not, under the REMIC Provisions, (i)
cause either REMIC I or REMIC II to fail to qualify as a REMIC while any regular
interest in such REMIC is outstanding, (ii) result in a tax on prohibited
transactions or (iii) constitute a taxable contribution after the Startup Day.

          REMIC PROVISIONS: The provisions of the federal income tax law
relating to REMICs, which appear at Sections 860A through 860G of the Code, and
related provisions and regulations promulgated thereunder, as the foregoing may
be in effect from time to time.

          RENTS FROM REAL PROPERTY: The meaning given to such term in Section
3.12(c).

          REO PROPERTY: A Mortgaged Property acquired in the name of the
Trustee, for the benefit of Certificateholders and the Certificate Insurer, by
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

          REPURCHASE PRICE: With respect to any Mortgage Loan (or any property
acquired with respect thereto) required to be repurchased pursuant to Section
2.02, 2.03A or 3.20 or optionally purchased pursuant to Section 3.19 an amount
equal to the sum of (i) 100% of the Outstanding Principal Balance of such
Mortgage Loan as of the date of repurchase (or if the related Mortgaged Property
was acquired with respect thereto, 100% of the Outstanding Principal Balance at
the date of the acquisition) plus (ii) accrued but unpaid interest on the
Outstanding Principal Balance at the related Mortgage Rate, through and
including the last day of the month of repurchase reduced by (ii) any portion of
the Master Servicing Fee or advances payable to the purchaser of the Mortgage
Loan.

          REQUEST FOR RELEASE: A request for release in the form attached hereto
as Exhibit D.

          REQUIRED INSURANCE POLICY: With respect to any Mortgage Loan, any
insurance policy which is required to be maintained from time to time under this
Agreement with respect to such Mortgage Loan.

          RESIDUAL CERTIFICATES: The Class R-1 and Class R-2 Certificates.

          RESPONSIBLE OFFICER: Any officer assigned to the corporate trust
department or similar department of the Trustee (or any successor division or
department thereto), and also, with respect to a particular matter, any other
officer to whom such matter is referred because of such officer's knowledge of
and familiarity with the particular subject.

          RESTRICTED LOAN: A Mortgage Loan which as of the Cut-Off Date was 60
days or more contractually delinquent (and, if there was a Bankruptcy Plan or
Forbearance Plan in place as of the Cut-Off Date, 60 days or more delinquent
under such Plan as of such date), unless it was Cash Flow Performing. All of the
Restricted Loans are listed in Exhibit J hereto.

          RULE 144A CERTIFICATE: The certificate to be furnished by each
purchaser of a Private Certificate which is a Qualified Institutional Buyer as
defined under Rule 144A promulgated under the Securities Act, substantially in
the form set forth as Exhibit F-2 hereto.

          S&P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc., or its successors in interest.

          SAMI: Structured Asset Mortgage Investments Inc.

          SCHEDULED PRINCIPAL: The principal portion of any Monthly Payment.

          SCHEDULED PRINCIPAL BALANCE: On any Distribution Date, (i) (A) for any
Mortgage Loan other than a Simple Interest Loan, the unpaid principal balance of
such Mortgage Loan as of the close of business on the related Due Date (i.e.,
taking account of the principal payment to be made on such Due Date and
irrespective of any delinquency in its payment), as specified in the
amortization schedule at the time relating thereto (before any adjustment to
such amortization schedule by reason of any bankruptcy or similar proceeding
occurring after the Cut-off Date (other than a Deficient Valuation) or any
moratorium or similar waiver or grace period) or (B) for any Simple Interest
Loan, the actual principal balance of such Mortgage Loan as of the Cut-off Date
less the principal portion of all scheduled payments made by the Mortgagor
during or prior to the immediately preceding Prepayment Period less (ii) any
Principal Prepayments (including the principal portion of Net Liquidation
Proceeds) received during or prior to the related Prepayment Period; provided
that the Scheduled Principal Balance of a Liquidated Mortgage Loan is zero.

          SECURITIES ACT: The Securities Act of 1933, as amended.

          SECURITIES LEGEND: "THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS
CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
("RULE 144A") TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A "QIB"), PURCHASING FOR
ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3)
IN CERTIFICATED FORM TO AN "INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE
MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT
OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS
PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO
(A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN
THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE
ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY
OTHER APPLICABLE JURISDICTION.

          SECURITY INSTRUMENT: A written instrument creating a valid first lien
on a Mortgaged Property securing a Mortgage Note, which may be any applicable
form of mortgage, deed of trust, deed to secure debt or security deed, including
any riders or addenda thereto.

          SELLER: Structured Asset Mortgage Investments Inc. (formerly known as
Bear Stearns Mortgage Securities, Inc.), a Delaware corporation, or its
successors in interest.

          SELLER CONTRACT: The Mortgage Loan Purchase Agreement, dated as of
October 28, 2001, between EMC, as Seller, and SAMI, as purchaser, and all
amendments thereof and supplements thereto.

          SENIOR CERTIFICATE GROUP: The Group 1 Senior Certificates or the Group
2 Senior Certificates, as applicable.

          SENIOR CERTIFICATEHOLDER: The Holder of a Senior Certificate.

          SENIOR CERTIFICATES: The Class A-1 and Class A-2 Certificates.

          SENIOR OPTIMAL PRINCIPAL AMOUNT: As to any Distribution Date, for each
Senior Certificate Group, an amount equal to the sum, without duplication, of
the following (but in no event greater than the aggregate Current Principal
Amount of such Senior Certificate Group immediately prior to such Distribution
Date):

                    (i) the applicable Senior Percentage of (a) all scheduled
               payments of principal due on each Mortgage Loan in the related
               Mortgage Loan Group (other than a Simple Interest Loan) on the
               related Due Date, as specified in the amortization schedule at
               the time applicable to such Mortgage Loan (after adjustment for
               previous Principal Prepayments but before any adjustment to that
               amortization schedule by reason of any bankruptcy or similar
               proceeding or any moratorium or similar waiver or grace period)
               and (b) actual payments of principal received on each Simple
               Interest Loan in the related Mortgage Loan Group during the
               related Due Period;

                    (ii) the applicable Senior Prepayment Percentage of the
               Scheduled Principal Balance of each Mortgage Loan in the related
               Mortgage Loan Group which was the subject of a Voluntary
               Principal Prepayment in full received by the Master Servicer
               during the applicable Prepayment Period;

                    (iii) the applicable Senior Prepayment Percentage of all
               Voluntary Principal Prepayments in part with respect to each
               Mortgage Loan in the related Mortgage Loan Group received by the
               Master Servicer during the applicable Prepayment Period;

                    (iv) the lesser of:

                         (a) the applicable Senior Prepayment Percentage of the
                             sum of:

                         (1) the aggregate Scheduled Principal Balance of all
                    Mortgage Loans in the related Mortgage Loan Group that a
                    private mortgage insurer purchased from the Trustee during
                    that Prepayment Period as an alternative to paying a claim
                    under the related Insurance Policy; and

                         (2) the aggregate Net Liquidation Proceeds allocable to
                    principal of all other Mortgage Loans in the related
                    Mortgage Loan Group that became Liquidated Mortgage Loans
                    during the related Prepayment Period; and

                         (b) the applicable Senior Percentage of the sum of:

                         (1) the aggregate Scheduled Principal Balance of all
                    Mortgage Loans in the related Mortgage Loan Group that a
                    private mortgage insurer purchased from the Trustee during
                    the related Prepayment Period as an alternative to paying a
                    claim under the related Insurance Policy; and

                         (2) the aggregate Scheduled Principal Balance of all
                    other Mortgage Loans in the related Mortgage Loan Group that
                    became Liquidated Mortgage Loans during the related
                    Prepayment Period; and

               (v) the applicable Senior Prepayment Percentage of the sum of:

                    (a)  the aggregate Scheduled Principal Balance of all
                         Mortgage Loans in the related Mortgage Loan Group
                         repurchased by the Seller, the Master Servicer or
                         BSMCC, as applicable, on such Distribution Date
                         pursuant to Section 2.02, Section 2.03A(b), Section
                         3.19 or Section 3.20 and

                    (b)  with respect to all Mortgage Loans in the related
                         Mortgage Loan Group replaced by the Seller with
                         Substitute Mortgage Loans pursuant to Section 2.04 on
                         such Distribution Date, the excess, if any, of the
                         Scheduled Principal Balance of each such Mortgage Loan
                         over the Scheduled Principal Balance of the related
                         Substitute Mortgage Loan.

          SENIOR PERCENTAGE: Initially 96.50% for each Senior Certificate Group.
On any Distribution Date, the lesser of (i) 100% and (ii) the percentage
(carried to six places rounded up) obtained by dividing the aggregate Current
Principal Amount of the Senior Certificates of a Senior Certificate Group
immediately preceding such Distribution Date by the aggregate Scheduled
Principal Balance of the Mortgage Loans in the related Mortgage Loan Group as of
the beginning of the related Due Period.

          SENIOR PREPAYMENT PERCENTAGE: On any Distribution Date occurring
during the periods set forth below, for each Senior Certificate Group, as
follows:

          Period (dates inclusive)     Senior Prepayment Percentage October 25,

2001 - September 25, 2006               100%
October 25, 2006 - September 25, 2007   Applicable Senior Percentage plus 70% of
                                        the applicable Subordinate Percentage
October 25, 2007 - September 25, 2008   Applicable Senior Percentage plus 60% of
                                        the applicable Subordinate Percentage
October 25, 2008 - September 25, 2009   Applicable Senior Percentage plus 40% of
                                        the applicable Subordinate Percentage
October 25, 2009 - September 25, 2010   Applicable Senior Percentage plus 20% of
                                        the applicable Subordinate Percentage
October 25, 2010 and thereafter         Applicable Senior Percentage.

PROVIDED, HOWEVER, that (i) if on any Distribution Date, a fraction, the
numerator of which is the Current Principal Amount of the Senior Certificates
and the denominator of which is the aggregate Scheduled Principal Balance of the
Mortgage Loans, in each case on such Distribution Date, exceeds such fraction
measured as of the Cut-Off Date, the Senior Prepayment Percentage for each
Senior Certificate Group for such Distribution Date shall be 100%, (ii)
notwithstanding any scheduled reduction of a Senior Prepayment Percentage, no
such reduction shall occur unless the Senior Prepayment Percentage Stepdown
Condition has been satisfied and (iii) on the Distribution Date on which the
Current Principal Amount of the applicable Senior Certificate Group would,
following application of Available Funds, be reduced to zero, the related Senior
Prepayment Percentage shall be the minimum percentage necessary to effect such
reduction and thereafter shall be zero.

          SENIOR PREPAYMENT PERCENTAGE STEPDOWN CONDITION: With respect to any
Distribution Date, as of the close of business of the last day of the related
Due Period, either (A) (i) the aggregate Scheduled Principal Balance of the
Mortgage Loans delinquent 60 days or more (including for this purpose any such
Mortgage Loans in foreclosure and such Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust), averaged over the
last six months, as a percentage of the sum of the aggregate Current Principal
Amount of the Subordinate Certificates does not exceed 50%; and (ii) cumulative
Realized Losses on the Mortgage Loans do not exceed, as a percentage of the
Original Subordinate Principal Amount, (i) 30%, if such Distribution Date occurs
between and including October 2006 and September 2007, (ii) 35%, if such
Distribution Date occurs between and including October 2007 and September 2008,
(iii) 40%, if such Distribution Date occurs between and including October 2008
and September 2009, (iv) 45%, if such Distribution Date occurs between and
including October 2009 and September 2010 and (v) 50%, if such Distribution Date
occurs during or after October 2010.

          SERVICING ACCOUNT: The separate account(s) created and maintained by
the Master Servicer or each Sub-Servicer with respect to the Mortgage Loans or
with respect to REO Property in a Designated Depository Institution for
collection of taxes, assessments, insurance premiums and comparable items as
described in Section 3.07.

          SERVICING ADVANCES: All reasonable and customary "out of pocket" costs
and expenses incurred in the performance by the Master Servicer or any
Sub-Servicer of its servicing obligations, including, but not limited to, the
cost of (i) the preservation, restoration and protection of the Mortgaged
Property, (ii) any enforcement or judicial proceedings, including foreclosures,
(iii) the management and liquidation of the REO Property, including reasonable
fees paid to any independent contractor in connection therewith, (iv) compliance
with the obligations under Section 3.07 or 3.10, and (v) in connection with the
liquidation of a Mortgage Loan, expenditures relating to the purchase or
maintenance of the first lien on the Mortgaged Property pursuant to Section
3.12, all of which reasonable and customary out-of-pocket costs and expenses are
reimbursable to the Master Servicer or any Sub-Servicer to the extent provided
in Sections 4.02(b) and 4.03(a).

          SERVICING OFFICER: Any officer of the Master Servicer or of an agent
or independent contractor through which all or part of the Master Servicer's
master servicing responsibilities are carried out, involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
specimen signature appear on a list of servicing officers furnished to the
Trustee by the Master Servicer as such list may from time to time be amended in
accordance with the foregoing.

          SIMPLE INTEREST LOAN: A Mortgage Loan that provides for daily accrual
of interest and identified as such on the Mortgage Loan Schedule.

          STARTUP DAY: October 18, 2001.

                  SUBORDINATE BALANCE RATIO: The ratio of the aggregate
principal balance of the Class 1-b Certificates (as defined in Section 5.01(c))
to the aggregate principal balance of the Class 2-b Certificates (as defined in
Section 5.01(c)) equal to the ratio of (1) the excess of the Pool 1 Balance over
the Current Principal Amount of the Class A-1 Certificates to (2) the excess of
the Pool 2 Balance over the Current Principal Amount of the Class A-2
Certificates.

          SUBORDINATE CERTIFICATES: The Class B-1, Class B-2, Class B-3, Class
B-4, Class B-5 and Class B-6 Certificates.

          SUBORDINATE CERTIFICATE WRITEDOWN AMOUNT: As to any Distribution Date,
the amount by which (a) the sum of the Current Principal Amounts of all of the
Certificates (after giving effect to the distribution of principal and the
allocation of applicable Realized Losses in reduction of the Current Principal
Amounts of such Certificates on such Distribution Date) exceeds (b) the
aggregate Scheduled Principal Balances of the Mortgage Loans on the Due Date
related to such Distribution Date.

          SUBORDINATE OPTIMAL PRINCIPAL AMOUNT: As to any Distribution Date, an
amount equal to the sum, without duplication, of the following with respect to
the Mortgage Loans in both Mortgage Loan Groups (but in no event greater than
the aggregate Current Principal Amounts of the Subordinate Certificates
immediately prior to such Distribution Date):

                    (i) the sum of, for each Mortgage Loan Group, the applicable
               Subordinate Percentage of (a) all scheduled payments of principal
               due on each Mortgage Loan in that Mortgage Loan Group (other than
               a Simple Interest Loan) on the related Due Date, as specified in
               the amortization schedule at the time applicable to that Mortgage
               Loan (after adjustment for previous Principal Prepayments but
               before any adjustment to that amortization schedule by reason of
               any bankruptcy or similar proceeding or any moratorium or similar
               waiver or grace period) and (b) actual payments of principal
               received on each Simple Interest Loan in that Mortgage Loan Group
               during the related Due Period;

                    (ii) the sum of, for each Mortgage Loan Group, the
               applicable Subordinate Prepayment Percentage of the Scheduled
               Principal Balance of each Mortgage Loan in that Mortgage Loan
               Group which was the subject of a Voluntary Principal Prepayment
               in full received by the Master Servicer during the applicable
               Prepayment Period;

                    (iii) for each Mortgage Loan Group, the applicable
               Subordinate Prepayment Percentage of all Voluntary Principal
               Prepayments in part of each Mortgage Loan in the related Mortgage
               Loan Group which was received by the Master Servicer during the
               applicable Prepayment Period;

                    (iv) for each Mortgage Loan Group, the excess, if any, of:

                      (a)  the sum of:

                         (1) the aggregate Scheduled Principal Balance of all
                    Mortgage Loans in that Mortgage Loan Group that a private
                    mortgage insurer purchased from the Trustee during the
                    related Prepayment Period as an alternative to paying a
                    claim under the related Insurance Policy; and

                         (2) the aggregate Net Liquidation Proceeds allocable to
                    principal for all other Mortgage Loans in that Mortgage Loan
                    Group, if that Mortgage Loan became a Liquidated Mortgage
                    Loan during the related Prepayment Period; over

                    (b)  the sum of amounts distributable to the related Senior
                         Certificate Group pursuant to clause (iv) of the
                         definition of "Senior Optimal Principal Amount" on such
                         Distribution Date;

               (v) for each Mortgage Loan Group, the applicable Subordinate
          Prepayment Percentage of the sum of:

                    (a)  the Scheduled Principal Balance of each Mortgage Loan
                         in that Mortgage Loan Group repurchased by the Seller,
                         the Master Servicer or BSMCC, as applicable, pursuant
                         to Section 2.02, Section 2.03A, Section 3.19 or Section
                         3.20 on such Distribution Date and

                    (b)  the excess, if any, of the Scheduled Principal Balance
                         of each Mortgage Loan in that Mortgage Loan Group
                         replaced by the Seller with a substitute Mortgage Loan
                         pursuant to Section 2.04 on such Distribution Date and
                         the Scheduled Principal Balance of such Substitute
                         Mortgage Loan; and

               (vi) on the Distribution Date on which the Current Principal
          Amounts of the Senior Certificates have all been reduced to zero, 100%
          of any Senior Optimal Principal Amount remaining undistributed on such
          Distribution Date.

          SUBORDINATE PERCENTAGE: On any Distribution Date with respect to each
Mortgage Loan Group, 100% minus the Senior Percentage for the related Senior
Certificate Group, initially 3.50% for each Mortgage Loan Group.

          SUBORDINATE PREPAYMENT PERCENTAGE: On any Distribution Date, with
respect to each Mortgage Loan Group, 100% minus the related Senior Prepayment
Percentage, except that on any Distribution Date after the aggregate Current
Principal Amount of the Senior Certificates in the related Mortgage Loan Group
has been reduced to zero, the Subordinate Prepayment Percentage with respect to
that Mortgage Loan Group will equal 100%.

          SUBORDINATION TRIGGER: A test which will be met on any Distribution
Date, if an amount equal to 100% minus a fraction, the numerator of which is the
Current Principal Amount of the Senior Certificates and the denominator of which
is the aggregate Scheduled Principal Balance of the Mortgage Loans, in each
case, on such Distribution Date, equals or exceeds 7%.

          SUB-SERVICER: Any Person with which the Master Servicer has entered
into a Sub-Servicing Agreement and which meets the qualifications of a
Sub-Servicer pursuant to Section 3.02. Initially, Reilly will act as
Sub-Servicer with respect to the Multifamily Loan.

          SUB-SERVICING AGREEMENT: The written contract between the Master
Servicer and a Sub-Servicer and any successor Sub-Servicer relating to servicing
and administration of certain Mortgage Loans as provided in Section 3.02.

          SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan tendered to the Trustee
pursuant to Section 2.04, which will, in each case, in the opinion of the Master
Servicer, (i) have a Scheduled Principal Balance, after deduction of all
scheduled payments due in the month of substitution, not in excess of (and not
more than $10,000 less than) the Scheduled Principal Balance, after deduction of
all unpaid scheduled payments due as of the date of substitution, of the
Mortgage Loan for which it is being substituted, (ii) have a fixed Mortgage Rate
not less than (and not more than 1% greater than) the Mortgage Loan for which it
is being substituted, (iii) have a Net Rate not less than (and not more than 1%
greater than) the Net Rate of the Mortgage Loan for which it is being
substituted, (iv) have a remaining term to maturity not greater than (and not
more than one year less than) that of the Mortgage Loan for which it is being
substituted, (v) pay the same or a greater percentage of its Original Scheduled
Payment and (vi) comply with all representations and warranties set forth in
this Agreement as of the date of substitution. Notwithstanding the foregoing, if
the Mortgage Loan being substituted for is an FHA Loan or a VA Loan, the
Substitute Mortgage Loan shall also be an FHA Loan or a VA Loan, as the case may
be. In the event that one Mortgage Loan is substituted for more than one
Mortgage Loan, or more than one Mortgage Loan is substituted for one or more
Mortgage Loans, then the amount described in clause (i) will be determined on
the basis of aggregate Scheduled Principal Balances, the rates described in
clauses (ii) and (iii) with respect to Mortgage Loans being substituted for will
be determined on the basis of weighted average Mortgage Rates and Net Rates, as
the case may be, and the terms described in clause (iv) will be determined on
the basis of weighted average remaining terms to maturity. The opinion of the
Master Servicer shall be evidenced by an Officer's Certificate delivered to the
Trustee. For all purposes hereunder, a Substitute Mortgage Loan shall be in the
same Mortgage Loan Group as the Mortgage Loan for which it was substituted.

          TAX MATTERS PERSON: The Holder of the Class R-1 Certificate and the
Holder of the Class R-2 Certificate shall be the Tax Matters Person for REMIC I
and REMIC II, respectively, as more particularly set forth in Section 9.13
hereof.

          TRUST FUND or TRUST: The trust created by this Agreement, consisting
of the Mortgage Loans and the other assets described in Section 2.01(a).

          TRUSTEE: Wells Fargo Bank Minnesota, National Association or its
successor in interest, or any successor trustee appointed as herein provided.

          UNINSURED CAUSE: Any cause of damage to a Mortgaged Property or REO
Property such that the complete restoration of such Mortgaged Property or REO
Property is not fully reimbursable by the hazard insurance policies required to
be maintained pursuant to Section 3.10, without regard to whether or not such
policy is maintained.

          VA: The United States Veterans Administration.

          VA LOANS: Any Mortgage Loan that is guaranteed by the VA.

          VALUE: With respect to any Mortgaged Property, (i) the original value
thereof, equal to (a) the lesser of the sales price and the Appraised Value of
such Mortgaged Property, in each case, at the time of origination of the related
Mortgage Loan or (b) in some cases, the Appraised Value of such Mortgaged
Property or (ii) the value thereof obtained by use of a BPO, using, if such BPO
provides a range of values, the highest value provided by such BPO.

          VOLUNTARY PRINCIPAL PREPAYMENT: With respect to any Distribution Date,
any Principal Prepayment received from the related Mortgagor on a Mortgage Loan.

<PAGE>

                                   ARTICLE II

         Conveyance of Mortgage Loans; Original Issuance of Certificates

          Section 2.01. CONVEYANCE OF MORTGAGE LOANS TO TRUSTEE. (a) The Seller
concurrently with the execution and delivery of this Agreement, sells, transfers
and assigns to the Trust without recourse all its right, title and interest in
and to (i) the Mortgage Loans identified in the Mortgage Loan Schedule,
including (A) in the case of all Mortgage Loans other than Simple Interest Loans
all interest and principal due after the Cut-off Date (i.e., excluding any
payments of principal and interest due on or prior to the Cut-off Date) and (B)
in the case of Simple Interest Loans, including all principal and interest due
after the Cut-Off Date and any payments of principal due on or prior to the
Cut-Off Date but received after the Cut-Off Date (i.e., excluding any interest
and principal due and received on or prior to the Cut-Off Date); (ii) the
Certificate Account and such assets as shall from time to time be credited or
are required by the terms of this Agreement to be credited to the Certificate
Account (excluding any income to the Trustee from Permitted Investments under
Subsection 4.02(d)), (iii) such assets relating to the Mortgage Loans as from
time to time may be held by the Master Servicer or a Sub-Servicer in Protected
Accounts (excluding any income to the Master Servicer or any Sub-Servicer from
Permitted Investments under Subsection 4.01(a)), (iv) any Servicing Accounts (to
the extent the mortgagee has a claim thereto and excluding any income to the
Master Servicer or Sub-Servicer or interest payable to Mortgagors pursuant to
applicable law), (v) any REO Property, (vi) the Required Insurance Policies and
any amounts paid or payable by the insurer under any Insurance Policy, FHA
insurance or VA guaranty (to the extent the mortgagee has a claim thereto),
(vii) rights under the Certificate Insurance Policy (for the benefit of the
Holders of the Senior Certificates only) and (viii) any proceeds of the
foregoing. Although it is the intent of the parties to this Agreement that the
conveyance of the Seller's right, title and interest in and to the Mortgage
Loans and other assets in the Trust Fund pursuant to this Agreement shall
constitute a purchase and sale and not a loan, in the event that such conveyance
is deemed to be a loan, it is the intent of the parties to this Agreement that
the Seller shall be deemed to have granted to the Trustee for the benefit of the
Certificateholders and the Certificate Insurer a first priority perfected
security interest in all of the Seller's right, title and interest in, to and
under the Mortgage Loans and other assets in the Trust Fund, and that this
Agreement shall constitute a security agreement under applicable law.

          (b) In connection with the above transfer and assignment, the Seller
hereby deposits with the Trustee, with respect to each Mortgage Loan, (i) the
original Mortgage Note, including any riders thereto, endorsed without recourse
to the order of the Trustee and showing to the extent available to the Seller an
unbroken chain of endorsements from the original payee thereof to the Person
endorsing it to the Trustee, (ii) the original Security Instrument, which shall
have been recorded (or if the original is not available, a copy), with evidence
of such recording indicated thereon, (iii) the assignment (either an original or
a copy, which may be in the form of a blanket assignment if permitted in the
jurisdiction in which the Mortgaged Property is located) to the Trustee of the
Security Instrument, in recordable form, with respect to each Mortgage Loan,
(iv) an original or a copy of all intervening assignments of the Security
Instrument, if any, to the extent available to the Seller, with evidence of
recording thereon, (v) the original policy of title insurance or mortgagee's
certificate of title insurance or commitment or binder for title insurance, if
available, or a copy thereof, (vi) any evidence of FHA Insurance or VA Guaranty,
if applicable, (vii) [intentionally omitted] and (viii) originals or copies of
all available assumption, modification or substitution agreements, if any;
PROVIDED, HOWEVER, that the assignment of the Security Instrument to the Trustee
will not be required to be submitted for recording with respect to any Mortgage
Loan if the Trustee and the Certificate Insurer shall have received an Opinion
of Counsel satisfactory to the Trustee and the Certificate Insurer stating that
in such counsel's opinion, the recordation of the assignment to the Trustee of
the Security Instrument securing a particular Mortgage Note is not necessary to
transfer to the assignee thereof all the benefits and security provided by the
Security Instrument as against the related assignor or any creditor of such
assignor, and the Security Instrument will continue to secure the Mortgage Note
to the same extent as if the Mortgage Note and Security Instrument had not been
assigned and delivered; and PROVIDED, FURTHER, HOWEVER, that in lieu of the
foregoing, the Seller may deliver the following documents, under the
circumstances set forth below: (x) if any Security Instrument, assignment
thereof to the Trustee or intervening assignments thereof have been delivered or
are being delivered to recording offices for recording and have not been
returned to the Seller in time to permit their delivery as specified above, the
Seller may deliver a true copy thereof with a certification by EMC or the title
company issuing the commitment for title insurance, on the face of such copy,
substantially as follows: "Certified to be a true and correct copy of the
original, which has been transmitted for recording"; and (y) in lieu of the
Mortgage Notes relating to 314 Group 1 Mortgage Loans and 45 Group 2 Mortgage
Loans with an aggregate Scheduled Principal Balance of approximately $7,669,228
and $1,115,168, respectively, as of the Cut-Off Date and identified in the list
set forth on Exhibit I, the Seller may deliver a lost note affidavit and
indemnity and a copy of the original note, if available (which lost note
affidavit and indemnity may be in the form of a blanket affidavit and indemnity
covering all Lost Notes as of the Closing Date so long as individual affidavits
and indemnities are provided to the Trustee within 30 days thereafter); and
PROVIDED, FURTHER, HOWEVER, that in the case of Mortgage Loans which have been
prepaid in full after the Cut-Off Date and prior to the Closing Date, the
Seller, in lieu of delivering the above documents, may deliver to the Trustee a
certification of a Servicing Officer to such effect and in such case shall
deposit all amounts paid in respect of such Mortgage Loans in the Certificate
Account on the Closing Date. In the case of the documents referred to in clause
(x) above, the Seller shall deliver such documents to the Trustee promptly after
they are received. The Master Servicer shall cause, at its expense, the Security
Instrument and intervening assignments, if any, and to the extent required in
accordance with the foregoing, the assignment of the Security Instrument to the
Trustee to be submitted for recording promptly after the Closing Date.

          Section 2.02. ACCEPTANCE OF MORTGAGE LOANS BY TRUSTEE. (a) The Trustee
acknowledges receipt of, subject to its further review and the exceptions it
notes pursuant to the procedures described below, the documents (or certified
copies thereof) delivered to it pursuant to Section 2.01 and declares that it
holds and will continue to hold those documents and any amendments, replacements
or supplements thereto and all other assets of the Trust Fund delivered to it as
Trustee in trust for the use and benefit of all present and future Holders of
the Certificates. On the Closing Date, the Trustee will deliver a certification
confirming whether or not it has received the Mortgage File for each Mortgage
Loan, but without review of such Mortgage File, except to the extent necessary
to confirm whether such Mortgage File contains the original Mortgage Note. No
later than 90 days after the Closing Date (or, with respect to any Substitute
Mortgage Loan, within 5 Business Days after the receipt by the Trustee thereof),
the Trustee agrees, for the benefit of the Certificateholders and the
Certificate Insurer, to perform a limited review of the Mortgage Files delivered
to it and to execute and deliver, or cause to be executed and delivered, to the
Seller and EMC an Initial Certification substantially in the form annexed hereto
as Exhibit G. In conducting such review, the Trustee will ascertain whether all
required documents have been executed and received and whether those documents
relate, determined on the basis of the Mortgagor name, original principal
balance and loan number, to the Mortgage Loans it has received, as identified in
Exhibit B to this Agreement, as supplemented (PROVIDED, HOWEVER, that with
respect to those documents described in subclauses (b)(iv) and (b)(viii) of
Section 2.01, the Trustee's obligations shall extend only to documents actually
delivered pursuant to such subclauses). In performing any such review, the
Trustee may conclusively rely on the purported due execution and genuineness of
any such document and on the purported genuineness of any signature thereon. If
the Trustee finds any document constituting part of the Mortgage File not to
have been executed or received, or to be unrelated to the Mortgage Loans
identified in Exhibit B or to appear to be defective on its face, the Trustee
shall include such information in the exception report attached to Exhibit G.
EMC shall (or shall cause a prior transferor of the Mortgage Loan to) correct or
cure any such defect or shall deliver to the Trustee and the Certificate Insurer
an Opinion of Counsel to the effect that such defect does not materially or
adversely affect the interests of Certificateholders or the Certificate Insurer
in such Mortgage Loan within 90 days from the date of notice from the Trustee of
the defect and if EMC fails to correct or cure the defect or deliver such
opinion within such period, EMC will, subject to Section 2.04, within 90 days
from the Trustee's notification purchase such Mortgage Loan at the Repurchase
Price; PROVIDED, HOWEVER, that if such defect relates solely to the inability of
EMC to deliver the Security Instrument, assignment thereof to the Trustee, or
intervening assignments thereof with evidence of recording thereon because such
documents have been submitted for recording and have not been returned by the
applicable jurisdiction, EMC shall not be required to purchase such Mortgage
Loan if EMC delivers such documents promptly upon receipt, but in no event later
than 360 days after the Closing Date.

          (b) No later than 180 days after the Closing Date (or with respect to
any Substitute Mortgage Loan becoming a part of the Trust after such 180 day
period, within 5 Business Days after the receipt by the Trustee thereof) , the
Trustee will review, for the benefit of the Certificateholders and the
Certificate Insurer, the Mortgage Files and will execute and deliver or cause to
be executed and delivered to the Seller and EMC, a Final Certification
substantially in the form annexed hereto as Exhibit H. In conducting such
review, the Trustee will ascertain whether (i) each document required to be
recorded has been returned from the recording office with evidence of recording
thereon and the Trustee has received either an original or a copy thereof, as
required in Section 2.01(b) (PROVIDED, HOWEVER, that with respect to those
documents described in subclauses (b)(iv) and (b)(viiii) of Section 2.01, the
Trustee's obligations shall extend only to documents actually delivered pursuant
to such subclauses); and (ii) an original title insurance policy (or if a master
title policy has been issued by the title insurer, a mortgagee's certificate of
title insurance), if available, or a copy thereof, whenever a title insurance
binder or commitment or other assurance of title was originally delivered to the
Trustee. If the Trustee finds any document discussed in clauses (i) or (ii) of
the preceding sentence with respect to a Mortgage Loan has not been received, or
to be unrelated, determined on the basis of the Mortgagor name, original
principal balance and loan number, to the Mortgage Loans identified in Exhibit B
or to appear defective on its face, the Trustee shall note such defect in the
exception report attached to the Final Certification. EMC shall correct or cure
any such defect or shall deliver to the Trustee and the Certificate Insurer an
Opinion of Counsel to the effect that such defect does not materially or
adversely affect the interests of Certificateholders or the Certificate Insurer
in such Mortgage Loan within 90 days from the date of notice from the Trustee of
the defect and if EMC is unable to correct or cure such defect within such
period or to deliver such opinion, EMC shall, subject to Section 2.04, within 90
days from the Trustee's notification purchase such Mortgage Loan at the
Repurchase Price; PROVIDED, HOWEVER, that if such defect relates solely to the
inability of EMC to deliver the Security Instrument, assignment thereof to the
Trustee or intervening assignments thereof with evidence of recording thereon,
because such documents have not been returned by the applicable jurisdiction,
EMC shall not be required to purchase such Mortgage Loan, if EMC delivers such
documents promptly upon receipt, but in no event later than 360 days after the
Closing Date.

          (c) In the event that a Mortgage Loan is purchased by EMC in
accordance with Subsections 2.02(a) or (b) above or by the Master Servicer in
accordance with Section 3.19 or by BSMCC in accordance with Section 3.20, EMC,
the Master Servicer or BSMCC, as applicable, shall remit the applicable
Repurchase Price to the Trustee for deposit in the appropriate subaccount of the
Certificate Account and shall provide written notice to the Trustee detailing
the components of the Repurchase Price, signed by a Servicing Officer. Upon
deposit of the Repurchase Price in the appropriate subaccount of the Certificate
Account and receipt of a properly completed Request for Release, the Trustee
shall release to EMC, the Master Servicer or BSMCC, as applicable, the related
Mortgage File and shall execute and deliver all instruments of transfer or
assignment, without recourse, furnished to it by such party, as are necessary to
vest in such party title to and rights under the Mortgage Loan. Such purchase
shall be deemed to have occurred on the date on which certification of the
deposit of the Repurchase Price in the Certificate Account was received by the
Trustee. The Trustee shall promptly notify the Rating Agency and the Certificate
Insurer of such repurchase. The obligation of EMC to repurchase any Mortgage
Loan pursuant to subclauses 2.02(a) or (b) as to which a defect in a constituent
document exists or of BSMCC to purchase Restricted Loans pursuant to Section
3.20 shall be the sole remedy respecting such defect or Restricted Loans
available to the Certificateholders or to the Trustee on their behalf.

          Section 2.03. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE MASTER
SERVICER. (a) EMC hereby represents and warrants to the Trustee and the
Certificate Insurer as of the Closing Date that:

               (i) It is a corporation duly organized, validly existing and in
          good standing under the laws of the state of its incorporation and is
          in good standing as a foreign corporation in each jurisdiction where
          such qualification is necessary and throughout the term of this
          Agreement will remain a corporation duly organized, validly existing
          and in good standing under the laws of the state of its incorporation
          or any state of reincorporation and in good standing as a foreign
          corporation in each jurisdiction where such qualification is necessary
          (except, in the case of foreign corporation qualification both on the
          date hereof and in the future, where the failure so to qualify would
          not reasonably be expected to have a material adverse effect on the
          Master Servicer's ability to enter into this Agreement or to perform
          its obligations hereunder), and has the corporate power and authority
          to perform its obligations under this Agreement;

               (ii) The execution and delivery of this Agreement have been duly
          authorized by all requisite corporate action;

               (iii) This Agreement, assuming due authorization, execution, and
          delivery by the other parties hereto, will constitute its legal, valid
          and binding obligation, enforceable in accordance with its terms,
          except only as such enforcement may be limited by applicable Debtor
          Relief Laws and that certain equitable remedies may not be available
          regardless of whether enforcement is sought in equity or at law;

               (iv) Its execution and delivery of this Agreement and its
          performance and compliance with the terms of this Agreement will not
          (A) violate its certificate of incorporation or bylaws (B) to its
          knowledge, violate any law or regulation, or any administrative or
          judicial decree or order to which it is subject or (C) constitute a
          default (or an event which, with notice or lapse of time, or both,
          would constitute a default) under, or result in the breach of, any
          material contract, agreement or other instrument to which it is a
          party or which may be applicable to it or any of its assets;

               (v) To its best knowledge, after reasonable investigation, it is
          not in default with respect to any order or decree of any court or any
          order, regulation or demand of any federal, state, municipal or
          governmental agency, which default would reasonably be expected to
          have consequences that would materially and adversely affect its
          financial condition or operations or its performance hereunder;

               (vi) It does not believe, nor does it have any reason or cause to
          believe, that it cannot perform each and every covenant contained in
          this Agreement to be performed by it;

               (vii) The consummation of the transactions contemplated by this
          Agreement are in the ordinary course of its business;

               (viii) No litigation is pending or, to its best knowledge,
          threatened against it, which could be reasonably expected to
          materially and adversely affect its entering into this Agreement or
          performing its obligations under this Agreement or which would have a
          material adverse effect on its financial condition; and

               (ix) As to each Mortgage Loan, the Seller Contract is in full
          force and effect.

          Section 2.03A. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
SELLER. (a) The Seller hereby makes the representations and warranties to the
Trustee and the Certificate Insurer set forth in Exhibit C hereto regarding the
Mortgage Loans. (b) If the Seller, the Master Servicer, the Certificate Insurer
or the Trustee discovers a breach of any of the representations and warranties
set forth in Exhibit C or Section 7 of the Seller Contract, and such breach
existed on the date the representation and warranty was made, which breach
materially and adversely affects the value of the interests of
Certificateholders, the Certificate Insurer or the Trustee in the related
Mortgage Loan, the party discovering the breach shall give prompt written notice
of the breach to the other parties and to EMC. EMC, within 90 days of its
discovery or receipt of notice that such breach has occurred (whichever occurs
earlier), shall (i) deliver to the Trustee an Opinion of Counsel to the effect
that such breach does not materially and adversely affect the interests of the
Certificateholders or the Trustee in such Mortgage Loan, (ii) cure the breach in
all material respects, or (iii) subject to Section 2.04, shall purchase the
Mortgage Loan or any property acquired with respect thereto from the Trustee;
PROVIDED, HOWEVER, that if there is a breach of any representation set forth in
Exhibit C and the Mortgage Loan or the related property acquired with respect
thereto has been sold, then EMC shall pay, in lieu of the Repurchase Price, any
excess of the Repurchase Price over the Net Liquidation Proceeds received upon
such sale. (If the Net Liquidation Proceeds exceed the Repurchase Price, any
excess shall be paid to EMC to the extent not required by law to be paid to the
borrower.) Any such purchase by EMC shall be made by remitting to the Trustee
for deposit in the appropriate subaccount of the Certificate Account an amount
equal to the Repurchase Price and the Trustee, upon receipt of the Repurchase
Price a properly completed Request for Release and of written notification of
such deposit by a Servicing Officer (which notification shall detail the
components of such Repurchase Price), shall release to EMC the related Mortgage
File and shall execute and deliver all instruments of transfer or assignment
furnished to it by EMC, without recourse, as are necessary to vest in EMC title
to and rights under the Mortgage Loan or any property acquired with respect
thereto. Such purchase shall be deemed to have occurred on the date on which
certification of the deposit of the Repurchase Price in the appropriate
subaccount of the Certificate Account was received by the Trustee. The Trustee
shall promptly notify the Rating Agency and the Certificate Insurer of such
repurchase. Enforcement of the obligation of EMC to purchase (or substitute a
Substitute Mortgage Loan for) any Mortgage Loan or any property acquired with
respect thereto (or pay the Repurchase Price as set forth in the above proviso)
as to which a breach has occurred and is continuing shall constitute the sole
remedy respecting such breach available to the Certificateholders or the Trustee
on their behalf.

          Section 2.04. SUBSTITUTION OF MORTGAGE LOANS. Notwithstanding anything
to the contrary in this Agreement, in lieu of purchasing a Mortgage Loan
pursuant to Sections 2.02 or 2.03A, EMC may, no later than the date by which
such purchase by EMC would otherwise be required, tender to the Trustee a
Substitute Mortgage Loan accompanied by an Officer's Certificate of EMC that
such Substitute Mortgage Loan conforms to the requirements set forth in the
definition of "Substitute Mortgage Loan"; PROVIDED, HOWEVER, that substitution
pursuant to this Section 2.04 in lieu of purchase shall not be permitted after
the termination of the two-year period beginning on the Startup Day. The Trustee
shall examine the Mortgage File for any Substitute Mortgage Loan in the manner
set forth in Section 2.02(a) and shall notify the Master Servicer in writing,
within five Business Days after receipt, whether or not the documents relating
to the Substitute Mortgage Loan satisfy the requirements of the third sentence
of Subsection 2.02(a). Within two Business Days after such notification, EMC
shall remit to the trustee for deposit in the appropriate subaccount of the
Certificate Account the amount, if any, by which the Scheduled Principal Balance
as of the next preceding Due Date of the Mortgage Loan for which substitution is
being made, after giving effect to Scheduled Principal due on such date, exceeds
the Scheduled Principal Balance as of such date of the Substitute Mortgage Loan,
after giving effect to Scheduled Principal due on such date, which amount shall
be treated for the purposes of this Agreement as if it were the payment by EMC
of the Repurchase Price for the purchase of a Mortgage Loan by EMC. After such
notification to EMC, and, if any such excess exists, upon receipt of such
deposit and of written notification thereof signed by a Servicing Officer, the
Trustee shall accept such Substitute Mortgage Loan, which shall thereafter be
deemed to be a Group 1 Mortgage Loan or a Group 2 Mortgage Loan, as applicable,
hereunder. In the event of such a substitution, accrued interest on the
Substitute Mortgage Loan for the month in which the substitution occurs and any
Principal Prepayments made thereon during such month shall be the property of
the Trust Fund and accrued interest for such month on the Mortgage Loan for
which the substitution is made and any Principal Prepayments made thereon during
such month shall be the property of EMC. The Scheduled Principal on a Substitute
Mortgage Loan due on the Due Date in the month of substitution shall be the
property of EMC and the Scheduled Principal on the Mortgage Loan for which the
substitution is made due on such Due Date shall be the property of the Trust
Fund. Upon acceptance of the Substitute Mortgage Loan and receipt of a properly
completed Request for Release, the Trustee shall release to EMC the related
Mortgage File related to any Mortgage Loan released pursuant to this Section
2.04 and shall execute and deliver all instruments of transfer or assignment,
without recourse, in form as provided to it as are necessary to vest in EMC
title to and rights under any Mortgage Loan released pursuant to this Section
2.04. EMC shall deliver the documents related to the Substitute Mortgage Loan in
accordance with the provisions of Subsections 2.01(b) and 2.02(b), with the date
of acceptance of the Substitute Mortgage Loan deemed to be the Closing Date for
purposes of the time periods set forth in those Subsections. The representations
and warranties set forth in Exhibit C shall be deemed to have been made by EMC
with respect to each Substitute Mortgage Loan as of the date of acceptance of
such Mortgage Loan by the Trustee. The Trustee shall amend the Mortgage Loan
Schedule to reflect such substitution and shall provide a copy of such amended
Mortgage Loan Schedule to the Master Servicer and the Rating Agency.

          Section 2.05. REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE. The
Trustee hereby represents and warrants to the Seller, the Master Servicer and
the Certificate Insurer, as of the Closing Date (and in the case of paragraph
(v) below throughout the term of the Agreement), that:

               (i) The Trustee is a national banking association duly organized,
          validly existing and in good standing under the laws of the United
          States of America;

               (ii) Subject to the right of the Trustee to appoint a co-trustee
          or separate trustee under Section 9.11 hereof in order to meet the
          legal requirements of a particular jurisdiction, the Trustee has full
          power, authority and legal right to execute and deliver this Agreement
          and to perform its obligations under this Agreement and has taken all
          necessary corporate action to authorize the execution and delivery of
          the Certificates, and the execution, delivery and performance by it of
          this Agreement;

               (iii) To the best of the Trustee's knowledge, after reasonable
          investigation, the execution and delivery by the Trustee of this
          Agreement and the Certificates and the performance by the Trustee of
          its obligations under this Agreement will not violate any provision of
          the Trustee's Articles of Incorporation or By-Laws or any law or
          regulation governing the Trustee or any order, writ, judgment or
          decree of any court, arbitrator or governmental authority or agency
          applicable to the Trustee or any of its assets. To the best of the
          Trustee's knowledge, after reasonable investigation, such execution,
          delivery and performance will not require the authorization, consent
          or approval of, the giving of notice to, the filing or registration
          with, or the taking of any other action with respect to, any
          governmental authority or agency regulating the activities of a
          national banking association. To the best of the Trustee's knowledge,
          after reasonable investigation, such execution, delivery and
          performance will not conflict with, or result in a breach or violation
          of, any material indenture, mortgage, deed of trust, lease or other
          agreement or instrument to which the Trustee is a party or by which it
          or its properties is bound;

               (iv) This Agreement has been duly executed and delivered by the
          Trustee. This Agreement, when executed and delivered, will constitute
          the valid, legal and binding obligation of the Trustee, enforceable
          against the Trustee in accordance with its terms, except as the
          enforcement thereof may be limited by applicable Debtor Relief Laws
          and that certain equitable remedies may not be available regardless of
          whether enforcement is sought in equity or at law; and

               (v) All funds received by the Trustee and required to be
          deposited in the Certificate Account pursuant to this Agreement will
          be promptly so deposited.

          Section 2.06. ISSUANCE OF CERTIFICATES. The Trustee acknowledges the
assignment to it of the Mortgage Loans and the other assets comprising the Trust
Fund and, concurrently therewith, has signed, and countersigned and delivered to
the Seller, in exchange therefor, Certificates in such authorized denominations
representing such Fractional Undivided Interests as the Seller has requested.
The Trustee agrees that it will hold the Mortgage Loans and such other assets as
may be from time to time delivered to it segregated on the books of the Trustee
in trust for the benefit of the Certificateholders and the Certificate Insurer.

          Section 2.07. REPRESENTATIONS AND WARRANTIES CONCERNING THE SELLER.
The Seller hereby represents and warrants to the Trustee, the Certificate
Insurer and the Master Servicer as follows:

               (i) the Seller (a) is a corporation duly organized, validly
          existing and in good standing under the laws of the State of Delaware
          and (b) is qualified and in good standing as a foreign corporation to
          do business in each jurisdiction where such qualification is
          necessary, except where the failure so to qualify would not reasonably
          be expected to have a material adverse effect on the Seller's business
          as presently conducted or on its ability to enter into this Agreement
          and to consummate the transactions contemplated hereby;

               (ii) the Seller has full corporate power to own its property, to
          carry on its business as presently conducted and to enter into and
          perform its obligations under this Agreement;

               (iii) the execution and delivery by the Seller of this Agreement
          have been duly authorized by all necessary corporate action on the
          part of the Seller; and neither the execution and delivery of this
          Agreement, nor the consummation of the transactions herein
          contemplated, nor compliance with the provisions hereof, will conflict
          with or result in a breach of, or constitute a default under, any of
          the provisions of any law, governmental rule, regulation, judgment,
          decree or order binding on the Seller or its properties or the
          articles of incorporation or by-laws of the Seller, except those
          conflicts, breaches or defaults which would not reasonably be expected
          to have a material adverse effect on the Seller's ability to enter
          into this Agreement and to consummate the transactions contemplated
          hereby;

               (iv) the execution, delivery and performance by the Seller of
          this Agreement and the consummation of the transactions contemplated
          hereby do not require the consent or approval of, the giving of notice
          to, the registration with, or the taking of any other action in
          respect of, any state, federal or other governmental authority or
          agency, except those consents, approvals, notices, registrations or
          other actions as have already been obtained, given or made;

               (v) this Agreement has been duly executed and delivered by the
          Seller and, assuming due authorization, execution and delivery by the
          other parties hereto, constitutes a valid and binding obligation of
          the Seller enforceable against it in accordance with its terms
          (subject to applicable bankruptcy and insolvency laws and other
          similar laws affecting the enforcement of the rights of creditors
          generally); and

               (vi) there are no actions, suits or proceedings pending or, to
          the knowledge of the Seller, threatened against the Seller, before or
          by any court, administrative agency, arbitrator or governmental body
          (i) with respect to any of the transactions contemplated by this
          Agreement or (ii) with respect to any other matter which in the
          judgment of the Seller will be determined adversely to the Seller and
          will if determined adversely to the Seller materially and adversely
          affect the Seller's ability to enter into this Agreement or perform
          its obligations under this Agreement; and the Seller is not in default
          with respect to any order of any court, administrative agency,
          arbitrator or governmental body so as to materially and adversely
          affect the transactions contemplated by this Agreement.

<PAGE>

                                  ARTICLE III

                 Administration and Servicing of Mortgage Loans

          Section 3.01. MASTER SERVICER TO ASSURE SERVICING. (a) The Master
Servicer shall supervise, or take such actions as are necessary to ensure, the
servicing and administration of the Mortgage Loans and any REO Property in
accordance with this Agreement and its normal servicing practices (including
making any Servicing Advances), which generally conform to the standards of an
institution prudently servicing mortgage loans for its own account and shall
have full authority to do anything it reasonably deems appropriate or desirable
in connection with such servicing and administration. The Master Servicer may
perform its responsibilities relating to servicing through other agents or
independent contractors, but shall not thereby be released from any of its
responsibilities as hereinafter set forth. The authority of the Master Servicer,
in its capacity as master servicer, shall include, without limitation, the power
to (i) consult with and advise any Sub-Servicer regarding administration of a
related Mortgage Loan, (ii) approve any recommendation by a Sub-Servicer to
foreclose on a related Mortgage Loan, (iii) supervise the filing and collection
of insurance claims and take or cause to be taken such actions on behalf of the
insured person thereunder as shall be reasonably necessary to prevent the denial
of coverage thereunder, and (iv) effectuate foreclosure or other conversion of
the ownership of the Mortgaged Property securing a related Mortgage Loan,
including the employment of attorneys, the institution of legal proceedings, the
collection of deficiency judgments, the acceptance of compromise proposals, the
filing of claims under any Primary Mortgage Insurance Policy, where applicable,
and any other matter pertaining to a delinquent Mortgage Loan. The Master
Servicer shall also follow any applicable bankruptcy court, HUD, FHA or VA
requirements and/or regulations, where applicable, regarding the servicing of
the Mortgage Loans, including but not limited to any limitations on the ability
to institute foreclosure proceedings upon the occurrence of a default in the
payment of Monthly Payments, or the making of insurance or guaranty claims. The
Master Servicer will not foreclose on or sell or approve any recommendation to
foreclose on or sell any Mortgage Loan based solely on the delinquency status in
existence on the Closing Date. The authority of the Master Servicer shall
include, in addition, the power on behalf of the Certificateholders, the Trustee
or any of them to (i) execute and deliver customary consents or waivers and
other instruments and documents, (ii) consent to transfers of any related
Mortgaged Property and assumptions of the related Mortgage Notes and Security
Instruments (in the manner provided in this Agreement) and (iii) collect any
Insurance Proceeds and Liquidation Proceeds. Without limiting the generality of
the foregoing, the Master Servicer may, and is hereby authorized, and empowered
by the Trustee to, execute and deliver, on behalf of itself, the
Certificateholders, the Trustee, or any of them, any instruments of
satisfaction, cancellation, partial or full release, discharge and all other
comparable instruments, with respect to the related Mortgage Loans, the
Insurance Policies and the accounts related thereto, and the Mortgaged
Properties. The Master Servicer may exercise this power in its own name or in
the name of a Sub-Servicer.

          (b) Notwithstanding the provisions of Subsection 3.01(a), the Master
Servicer shall not take any action inconsistent with the interest of the
Trustee, the Certificate Insurer or the Certificateholders in the Mortgage Loans
or with the rights and interests of the Trustee, the Certificate Insurer or the
Certificateholders under this Agreement.

          (c) The Trustee shall furnish the Master Servicer with any powers of
attorney and other documents in form as provided to it necessary or appropriate
to enable the Master Servicer to service and administer the related Mortgage
Loans and REO Property.

          Section 3.02. SUB-SERVICING AGREEMENTS BETWEEN MASTER SERVICER AND
SUB-SERVICERS. (a) The Master Servicer may enter into Sub-Servicing Agreements
with Sub-Servicers for the servicing and administration of the Mortgage Loans
and for the performance of any and all other activities of the Master Servicer
hereunder. Each Sub-Servicer shall be either (i) an institution the accounts of
which are insured by the FDIC or (ii) another entity that engages in the
business of originating or servicing mortgage loans, and in either case shall be
authorized to transact business in the state or states in which the related
Mortgaged Properties it is to service are situated, if and to the extent
required by applicable law to enable the Sub-Servicer to perform its obligations
hereunder and under the Sub-Servicing Agreement, and in either case shall be a
Fannie Mae or Freddie Mac approved mortgage servicer. Any Sub-Servicing
Agreement entered into by the Master Servicer shall include the provision that
such Agreement may be immediately terminated (x) with cause and without any
termination fee by any Master Servicer hereunder other than EMC or (y) without
cause in which case the Master Servicer that entered into such Sub-Servicing
Agreement shall be responsible for any termination fee or penalty resulting
therefrom. In addition, any Sub-Servicing Agreement shall provide for servicing
of the Mortgage Loans consistent with the terms of this Agreement. With, so long
as the Senior Certificates are outstanding or any amounts are owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy, the consent of the Certificate Insurer in its sole
discretion, the Master Servicer and the Sub-Servicers may enter into
Sub-Servicing Agreements and make amendments to the Sub-Servicing Agreements or
enter into different forms of Sub-Servicing Agreements; PROVIDED, HOWEVER, that
any such amendments or different forms shall be consistent with and not violate
the provisions of this Agreement.

          (b) As part of its servicing activities hereunder, the Master
Servicer, for the benefit of the Trustee, the Certificateholders and the
Certificate Insurer shall enforce the obligations of each Sub-Servicer under the
related Sub-Servicing Agreement. Such enforcement, including, without
limitation, the legal prosecution of claims, termination of Sub-Servicing
Agreements and the pursuit of other appropriate remedies, shall be in such form
and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at
its own expense, but shall be reimbursed therefor only (i) from a general
recovery resulting from such enforcement only to the extent, if any, that such
recovery exceeds all amounts due in respect of the related Mortgage Loans or
(ii) from a specific recovery of costs, expenses or attorneys' fees against the
party against whom such enforcement is directed.

          Section 3.03. SUCCESSOR SUB-SERVICERS. The Master Servicer shall be
entitled to terminate any Sub-Servicing Agreement that may exist in accordance
with the terms and conditions of such Sub-Servicing Agreement and without any
limitation by virtue of this Agreement; PROVIDED, HOWEVER, that upon
termination, the Master Servicer shall either act as servicer of the related
Mortgage Loan or enter into an appropriate contract with a successor
Sub-Servicer pursuant to which such successor Sub-Servicer will be bound by all
relevant terms of the related Sub-Servicing Agreement pertaining to the
servicing of such Mortgage Loan.

          Section 3.04. LIABILITY OF THE MASTER SERVICER. (a) Notwithstanding
any Sub-Servicing Agreement, any of the provisions of this Agreement relating to
agreements or arrangements between the Master Servicer and a Sub-Servicer or
reference to actions taken through a Sub-Servicer or otherwise, the Master
Servicer shall under all circumstances remain obligated and primarily liable for
the servicing and administering of the Mortgage Loans and any REO Property in
accordance with this Agreement. The obligations and liability of the Master
Servicer shall not be diminished by virtue of Sub-Servicing Agreements or by
virtue of indemnification of the Master Servicer by any Sub-Servicer, or any
other Person. The obligations and liability of the Master Servicer shall remain
of the same nature and under the same terms and conditions as if the Master
Servicer alone were servicing and administering the related Mortgage Loans. The
Master Servicer shall, however, be entitled to enter into indemnification
agreements with any Sub-Servicer or other Person and nothing in this Agreement
shall be deemed to limit or modify such indemnification. For the purposes of
this Agreement, the Master Servicer shall be deemed to have received any payment
on a Mortgage Loan on the date the Sub-Servicer received such payment; PROVIDED,
however, that this sentence shall not apply to the Trustee acting as the Master
Servicer; PROVIDED, FURTHER, HOWEVER, that the foregoing provision shall not
affect the obligations of the Master Servicer if it is also the Trustee to
advance amounts which are not Nonrecoverable Advances.

          (b) Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such and not as an originator shall be deemed to be between
the Sub-Servicer and the Master Servicer alone, and the Trustee and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties or liabilities with respect to the Sub-Servicer
except as set forth in Section 3.05.

          Section 3.05. ASSUMPTION OR TERMINATION OF SUB-SERVICING AGREEMENTS BY
TRUSTEE. (a) If the Trustee or its designee shall assume the master servicing
obligations of the Master Servicer in accordance with Section 8.02, the Trustee,
to the extent necessary to permit the Trustee to carry out the provisions of
Section 8.02 with respect to the Mortgage Loans, shall succeed to all of the
rights and obligations of the Master Servicer under each of the Sub-Servicing
Agreements. In such event, the Trustee or its designee as the successor master
servicer shall be deemed to have assumed all of the Master Servicer's rights and
obligations therein and to have replaced the Master Servicer as a party to such
Sub-Servicing Agreements to the same extent as if such Sub-Servicing Agreements
had been assigned to the Trustee or its designee as a successor master servicer,
except that the Trustee or its designee as a successor master servicer shall not
be deemed to have assumed any obligations or liabilities of the Master Servicer
arising prior to such assumption and the Master Servicer shall not thereby be
relieved of any liability or obligations under such Sub-Servicing Agreements.

          (b) In the event that the Trustee or its designee as successor master
servicer for the Trustee assumes the servicing obligations of the Master
Servicer under Section 8.02, upon the reasonable request of the Trustee or such
designee as successor master servicer, the Master Servicer shall at its own
expense deliver to the Trustee, or at its written request to such designee,
photocopies of all documents and records, electronic or otherwise, relating to
the Sub-Servicing Agreements and the related Mortgage Loans or REO Property then
being serviced and an accounting of amounts collected and held by it, if any,
and will otherwise cooperate and use its reasonable best efforts to effect the
orderly and efficient transfer of the Sub-Servicing Agreements, or
responsibilities hereunder to the Trustee, or at its written request to such
designee as successor master servicer.

          Section 3.06. COLLECTION OF MORTGAGE LOAN PAYMENTS. (a) The Master
Servicer will make remittances itself or will coordinate and monitor remittances
by Sub-Servicers to the Trustee with respect to the Mortgage Loans in accordance
with this Agreement.

          (b) The Master Servicer shall make its reasonable best efforts to
collect or cause to be collected all payments required under the terms and
provisions of the Mortgage Loans and shall follow, and use its best efforts to
cause Sub-Servicers to follow, collection procedures comparable to the
collection procedures of prudent mortgage lenders servicing mortgage loans for
their own account to the extent such procedures shall be consistent with this
Agreement. Consistent with the foregoing and subject to the provisions of
Section 3.06(d), the Master Servicer may in its discretion (i) waive or permit
to be waived any late payment charge, prepayment charge, assumption fee, or any
penalty interest in connection with the prepayment of a Mortgage Loan, (ii)
amend a Forbearance Plan or Bankruptcy Plan to enable the Mortgagor to satisfy
its obligations under the related Mortgage Loan and (iii) suspend or reduce or
permit to be suspended or reduced regular monthly payments for a period of up to
six months, or arrange or permit an arrangement with any Mortgagor for a
scheduled liquidation of delinquencies and with respect to Mortgage Loans which
have defaulted or as to which default is reasonably foreseeable, take such other
action, including, consistent with Sections 3.06(c) and 3.06(d), forgiving a
portion of the Scheduled Principal Balance thereof. In the event the Master
Servicer shall consent to the deferment of the due dates for payments due on a
Mortgage Note, the Master Servicer shall nonetheless make a Monthly Advance or
shall cause the related Sub-Servicer to make an advance (to the same extent as
if such installment were due, owing and delinquent and had not been deferred)
through liquidation of the Mortgaged Property; PROVIDED, HOWEVER, that the
obligation of the Master Servicer to make a Monthly Advance shall apply only to
the extent that the Master Servicer believes, in good faith, that such advances
are not Nonrecoverable Advances.

          (c) Notwithstanding anything in this Agreement to the contrary, the
Master Servicer may not make any advances of amounts coming due in the future
with respect to a Mortgage Loan and the Master Servicer shall not permit (i) any
modification with respect to any Mortgage Loan that would change the Mortgage
Rate, reduce or increase the principal balance (except for reductions resulting
from actual payments of principal) or change the final maturity date on such
Mortgage Loan (other than, with respect to FHA Loans or VA Loans, as may be
required by the FHA, HUD or the VA, as applicable, in connection with servicing
regulations for such Mortgage Loans) or (ii) any modification, waiver or
amendment of any term of any Mortgage Loan that would both (A) effect an
exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or
final, temporary or proposed Treasury regulations promulgated thereunder) and
(B) cause REMIC I or REMIC II to fail to qualify as a REMIC under the Code or
the imposition of any tax on "prohibited transactions" or "contributions after
the startup date" under the REMIC Provisions.

          (d) Notwithstanding the foregoing, if the Mortgagor is in default with
respect to the Mortgage Loan or such default is reasonably foreseeable, the
Master Servicer may, in its discretion, modify certain terms of the related
Mortgage Loan. Such modifications may include (i) a reduction in the Mortgage
Rate of a Mortgage Loan (but in no event to lower than 7.5%), (ii) a recasting
of the amortization schedule (based on a 30-year term) and/or an extension of
the scheduled date of final payment on such Mortgage Loan (but in no event
beyond the Assumed Final Distribution Date) and (iii) an increase or reduction
in the Scheduled Principal Balance of such Mortgage Loan. In addition, the
Master Servicer may in its discretion (i) waive or permit to be waived any late
payment charge or prepayment charge, assumption fee or any penalty interest in
connection with the prepayment of a Mortgage Loan and (ii) suspend or reduce or
permit to be suspended or reduced regular monthly payments for a period of up to
six months or arrange or permit an arrangement with a Mortgagor for a schedule
for the liquidation of delinquencies if, in the good faith judgment of the
Master Servicer, such action would minimize the losses that might otherwise be
experienced with respect to a Mortgage Loan, or in the event that a payment
default with respect to a Mortgage Loan is reasonably foreseeable by the Master
Servicer. In the event the Master Servicer shall consent to the deferment of due
dates for payments due on a Mortgage Note, the Master Servicer shall nonetheless
continue to make advances as required (to the same extent as if such installment
were due, owing and delinquent and had not been deferred) through liquidation of
the Mortgaged Property, but the Master Servicer shall make such advances only to
the extent that the Master Servicer believes, in good faith, that such advances
are recoverable from future payments on any Mortgage Loan.

          (e) Within five Business Days after the Master Servicer has determined
that all amounts which it expects to recover from or on account of a Mortgage
Loan have been recovered and that no further Liquidation Proceeds will be
received in connection therewith, the Master Servicer shall provide to the
Trustee a certificate of a Servicing Officer that such Mortgage Loan became a
Liquidated Mortgage Loan as of the date of such determination.

          Section 3.07. COLLECTION OF TAXES, ASSESSMENTS AND SIMILAR ITEMS;
SERVICING ACCOUNTS. (a) The Master Servicer shall establish and maintain or
cause the Sub-Servicers to establish and maintain, in addition to the Protected
Accounts, one or more Servicing Accounts. The Master Servicer or a Sub-Servicer
will deposit and retain therein all otherwise unapplied collections from the
Mortgagors, including amounts collected for the payment of taxes, assessments,
insurance premiums, or comparable items as agent of the Mortgagors.

          (b) The deposits in the Servicing Accounts shall be held in a
Designated Depository Institution in an account designated as a "Mortgage Loan
Servicing Account," held in trust by the Master Servicer or a Sub-Servicer as a
custodial account for borrowers and for the Master Servicer (and its successors
and assigns) acting on its own behalf and for the Master Servicer as agent for
holders of various pass-through securities and other interests in mortgage loans
sold by it; and agent for various mortgagors, as their interests may appear or
under such other designation as may be permitted by a Sub-Servicing Agreement.
The amount at any time credited to a Servicing Account must be fully insured by
the FDIC, or, to the extent that such deposits exceed the limits of such
insurance, such excess must be (i) transferred to another fully insured account
in another Designated Depository Institution or (ii) if permitted by applicable
law, invested in Permitted Investments held in trust by the Master Servicer or a
Sub-Servicer as described above and maturing, or be subject to redemption or
withdrawal, no later than the date on which such funds are required to be
withdrawn, and in no event later than 45 days after the date of investment. The
Master Servicer may, or may permit a Sub-Servicer to, establish Servicing
Accounts not conforming to the foregoing requirements to the extent that such
Servicing Accounts are Rating Agency Eligible Accounts. Withdrawals of amounts
from the Servicing Accounts may be made only to effect timely payment of taxes,
assessments, insurance premiums, or comparable items, to transfer previously
unapplied collections to a Protected Account, to reimburse the Master Servicer
or a Sub-Servicer for any advances made with respect to such items, to refund to
any Mortgagors any sums as may be determined to be overages, to pay interest, if
required, to Mortgagors on balances in the Servicing Accounts or to clear and
terminate the Servicing Accounts at or any time after the termination of this
Agreement in accordance with Section 10.01.

          Section 3.08. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION
REGARDING THE MORTGAGE LOANS. The Master Servicer shall provide, and shall cause
any Sub-Servicer to provide, to the Trustee, the Certificate Insurer and the
Seller access to the records and documentation regarding the related Mortgage
Loans and REO Property and the servicing thereof and to the Certificateholders,
the FDIC, and the supervisory agents and examiners of the FDIC (to which the
Trustee shall also provide) access to the documentation regarding the related
Mortgage Loans required by applicable regulations, such access being afforded
without charge but only upon reasonable prior written request and during normal
business hours at the offices of the Master Servicer, the Sub-Servicers or the
Trustee that are designated by these entities; PROVIDED, HOWEVER, that, unless
otherwise required by law, the Trustee, the Master Servicer or the Sub-Servicer
shall not be required to provide access to such records and documentation if the
provision thereof would violate the legal right to privacy of any Mortgagor
PROVIDED, further, HOWEVER, that the Trustee, the Certificate Insurer and the
Seller shall coordinate their requests for such access so as not to impose an
unreasonable burden on, or cause an interruption of, the business of the Master
Servicer or any Sub-Servicer. The Master Servicer, the Sub-Servicers and the
Trustee shall allow representatives of the above entities to photocopy any of
the documentation and shall provide equipment for that purpose at a charge that
covers their own actual out-of-pocket costs.

          Section 3.09. MAINTENANCE OF PRIMARY MORTGAGE INSURANCE POLICIES;
COLLECTION THEREUNDER. The Master Servicer shall, or shall cause the related
Sub-Servicer to, exercise its best reasonable efforts to maintain and keep in
full force and effect each Primary Mortgage Insurance Policy by a Qualified
Insurer, or other insurer satisfactory to the Rating Agency, with respect to
each conventional Mortgage Loan as to which as of the Cut-off Date such a
Primary Mortgage Insurance Policy was in effect (or, in the case of a Substitute
Mortgage Loan, the date of substitution) to the level of each such Primary
Mortgage Insurance Policy as in effect on the Cut-Off Date. The Master Servicer
shall, or shall cause the related Sub-Servicer to, effect the timely payment of
the premium on each Primary Mortgage Insurance Policy. The Master Servicer and
the related Sub-Servicer shall have the power to substitute for any Primary
Mortgage Insurance Policy another substantially equivalent policy issued by
another Qualified Insurer; PROVIDED THAT such substitution is subject to the
condition, to be evidenced by a writing from the Rating Agency, that it would
not cause the ratings on the Certificates to be downgraded or withdrawn.

          Section 3.10. MAINTENANCE OF HAZARD INSURANCE AND FIDELITY COVERAGE.
(a) The Master Servicer shall maintain and keep, or cause each Sub-Servicer to
maintain and keep, with respect to each Mortgage Loan and each REO Property, in
full force and effect hazard insurance (fire insurance with extended coverage)
equal to at least the lesser of the Outstanding Principal Balance of the
Mortgage Loan or the current replacement cost of the Mortgaged Property, and
containing a standard mortgagee clause; PROVIDED, HOWEVER, that the amount of
hazard insurance may not be less than the amount necessary to prevent loss due
to the application of any co-insurance provision of the related policy. Unless
applicable state law requires a higher deductible, the deductible on such hazard
insurance policy may be $5,000 or 1% of the applicable amount of coverage,
whichever is less. In the case of a condominium unit or a unit in a planned unit
development, the required hazard insurance shall take the form of a multiperil
policy covering the entire condominium project or planned unit development, in
an amount equal to at least 100% of the insurable value based on replacement
cost.

          (b) Any amounts collected by the Master Servicer or a Sub-Servicer
under any such hazard insurance policy (other than amounts to be applied to the
restoration or repair of the Mortgaged Property or amounts released to the
Mortgagor in accordance with the Master Servicer's or a Sub-Servicer's normal
servicing procedures, the terms of the Mortgage Note, the Security Instrument or
applicable law) shall be deposited initially in a Protected Account, for
transmittal to the appropriate subaccount of the Certificate Account, subject to
withdrawal pursuant to Section 4.03.

          (c) Any cost incurred by a Master Servicer or a Sub-Servicer in
maintaining any such hazard insurance policy shall not be added to the amount
owing under the Mortgage Loan for the purpose of calculating monthly
distributions to Certificateholders, notwithstanding that the terms of the
Mortgage Loan so permit. Such costs shall be recoverable by the Master Servicer
or a Sub-Servicer out of related late payments by the Mortgagor or out of
Insurance Proceeds or Liquidation Proceeds or by the Master Servicer from the
Repurchase Price, to the extent permitted by Section 4.03.

          (d) No earthquake or other additional insurance is to be required of
any Mortgagor or maintained on property acquired with respect to a Security
Instrument other than pursuant to such applicable laws and regulations as shall
at any time be in force and shall require such additional insurance. Each year,
in accordance with standards and procedures required by Freddie Mac, the Master
Servicer shall perform a review of the Mortgage Loans to determine which, if
any, of the Mortgaged Properties are located in a federally designated special
flood hazard area and for each Mortgaged Property found to be located in a
federally designated special flood hazard area, the Master Servicer shall use
its best reasonable efforts to cause flood insurance (to the extent available
and in accordance with mortgage servicing industry practice) to be maintained
with respect to the related Mortgage Loans and REO Properties. Such flood
insurance shall cover the Mortgaged Property, including all items taken into
account in arriving at the Appraised Value on which the Mortgage Loan was based,
and shall be in an amount equal to the lesser of (i) the Outstanding Principal
Balance of the related Mortgage Loan and (ii) the minimum amount required under
the terms of coverage to compensate for any damage or loss on a replacement cost
basis, but not more than the maximum amount of such insurance available for the
related Mortgaged Property under either the regular or emergency programs of the
National Flood Insurance Program (assuming that the area in which such Mortgaged
Property is located is participating in such program). Unless applicable state
law requires a higher deductible, the deductible on such flood insurance may not
exceed $1,000 or 1% of the applicable amount of coverage, whichever is less.

          (e) If insurance complying with Subsections 3.10(a) and (d) has not
been maintained and there shall have been a loss which would have been covered
by such insurance had it been maintained, the Master Servicer shall pay, or
cause the related Sub-Servicer to pay, for any necessary repairs.

          (f) The Master Servicer shall present, or cause the related
Sub-Servicer to present, if it is a permitted claimant, claims under the related
hazard insurance or flood insurance policy.

          (g) The Master Servicer shall obtain and maintain at its own expense
and for the duration of this Agreement a blanket fidelity bond and shall cause
each Sub-Servicer (or itself to the extent there are no Sub-Servicers) to obtain
and maintain an errors and omissions insurance policy covering such
Sub-Servicer's (or the Master Servicer's, if there are no Sub-Servicers)
officers, employees and other persons acting on its behalf in connection with
its activities under this Agreement. The amount of coverage shall be at least
equal to the coverage maintained by the Master Servicer acceptable to Fannie Mae
or Freddie Mac to service loans for it or otherwise in an amount as is
commercially available at a cost that is generally not regarded as excessive by
industry standards. The Master Servicer shall promptly notify the Trustee of any
material change in the terms of such bond or policy. The Master Servicer shall
provide annually to the Trustee a certificate of insurance that such bond and
policy are in effect. If any such bond or policy ceases to be in effect, the
Master Servicer shall, to the extent possible, give the Trustee ten days' notice
prior to any such cessation and shall use its best efforts to obtain a
comparable replacement bond or policy, as the case may be. Any amounts relating
to the Mortgage Loans collected under such bond or policy shall be remitted to
the appropriate subaccount of the Certificate Account to the extent that such
amounts have not previously been paid to such account.

          Section 3.11. DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS. (a) In any
case in which the Master Servicer is notified by any Mortgagor or Sub-Servicer
that a Mortgaged Property relating to a Mortgage Loan has been or is about to be
conveyed by the Mortgagor, the Master Servicer shall enforce, or shall instruct
such Sub-Servicer to enforce, any due-on-sale clause contained in the related
Security Instrument to the extent permitted under the terms of the related
Mortgage Note and by applicable law unless the Master Servicer reasonably
believes such enforcement is likely to result in legal action by the Mortgagor.
The Master Servicer or the related Sub-Servicer may purchase a Mortgage Loan at
the Repurchase Price when the Master Servicer requires acceleration of the
Mortgage Loan, as a result of such conveyance, but only if the Master Servicer
is satisfied, as evidenced by an Officer's Certificate delivered to the Trustee,
that either (i) such Mortgage Loan is in default or default is reasonably
foreseeable or (ii) if such Mortgage Loan is not in default or default is not
reasonably foreseeable, the Master Servicer will deliver a REMIC Opinion to the
Trustee and the Certificate Insurer. If the Master Servicer reasonably believes
that such due-on-sale clause cannot be enforced under applicable law or if the
Mortgage Loan does not contain a due-on-sale clause, the Master Servicer is
authorized, and may authorize any Sub-Servicer, to consent to a conveyance
subject to the lien of the Mortgage, and to take or enter into an assumption
agreement from or with the Person to whom such property has been or is about to
be conveyed, pursuant to which such Person becomes liable under the related
Mortgage Note and unless prohibited by the terms of the applicable Mortgage Note
or applicable state law, such Mortgagor remains liable thereon, on condition,
however, that the related Mortgage Loan shall continue to be covered (if so
covered before the Master Servicer or the related Sub-Servicer enters into such
agreement) by any applicable Primary Mortgage Insurance Policy, FHA insurance or
VA guaranty. The Master Servicer shall notify the Trustee, whenever possible,
before the completion of such assumption agreement, and shall forward to the
Trustee the original copy of such assumption agreement, which copy shall be
added by the Trustee to the related Mortgage File and which shall, for all
purposes, be considered a part of such Mortgage File to the same extent as all
other documents and instruments constituting a part thereof. In connection with
any such assumption agreement, the interest rate on the related Mortgage Loan
shall not be changed and no other material alterations in the Mortgage Loan
shall be made unless such material alteration would not cause either of REMIC I
or REMIC II to fail to qualify as a REMIC for federal income tax purposes, as
evidenced by a REMIC Opinion. If the interest rate on an assumed Mortgage Loan
is increased due to both (i) permitted increases upon assumption under the terms
of such Mortgage Loan and (ii) all applicable restrictions hereunder being
satisfied, the Master Servicer shall, as part of the report to the Trustee and
the Seller pursuant to Section 6.07(b) hereof, provide therefor on a revised
Mortgage Loan Schedule. In any event, the Master Servicer shall advise the
Trustee in writing of the entry into of any material modification of a Mortgage
Loan in connection with an assumption and shall provide the Trustee with a copy
of the REMIC Opinion. Any fee or additional interest collected by the Master
Servicer or Sub-Servicer for consenting to any such conveyance or entering into
any such assumption agreement may be retained by the Master Servicer or the
related Sub-Servicer as additional servicing compensation.

          (b) Notwithstanding the foregoing paragraph or any other provision of
this Agreement, the Master Servicer shall not be deemed to be in default, breach
or any other violation of its obligations hereunder by reason of any assumption
of a Mortgage Loan by operation of law or any conveyance by the Mortgagor of the
related Mortgaged Property or assumption of a Mortgage Loan which the Master
Servicer reasonably believes, based on prudent servicing standards, it may be
restricted by law from preventing, for any reason whatsoever or if the exercise
of such right would impair or threaten to impair any recovery under any
applicable Insurance Policy, or, in the Master Servicer's judgment, be
reasonably, likely to result in legal action by the Mortgagor or would otherwise
materially adversely affect the Certificateholders or the Certificate Insurer.

          Section 3.12. REALIZATION UPON DEFAULTED MORTGAGE LOANS; TITLE,
MANAGEMENT AND DISPOSITION OF REO PROPERTY. (a) Subject to Subsection 3.12(b),
the Master Servicer shall, or shall direct the related Sub-Servicer to,
foreclose upon or otherwise comparably convert the ownership of properties
securing any Mortgage Loans that come into and continue in default and as to
which no satisfactory arrangements can be made for collection of delinquent
payments pursuant to Section 3.06 except that the Master Servicer shall not, and
shall not direct the related Sub-Servicer, if any, to, foreclose upon or
otherwise comparably convert a Mortgaged Property if there is evidence of
environmental hazards or toxic waste thereon and the Master Servicer determines
it would be imprudent to do so or not in accordance with appropriate servicing
standards. The Master Servicer may conclusively rely on results of third party
inspections from parties it reasonably believes are qualified to conduct such
inspections. In connection with such foreclosure or other conversion, the Master
Servicer in conjunction with the related Sub-Servicer, if any, shall use its
best reasonable efforts to preserve REO Property and to realize upon defaulted
Mortgage Loans in such manner as to maximize the receipt of principal and
interest by the Certificateholders, taking into account, among other things, the
timing of foreclosure and the considerations set forth in Subsection 3.12(b).
The foregoing is subject to the proviso that the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure or towards
the restoration of any property unless it determines in good faith (i) that such
restoration or foreclosure will increase the proceeds of liquidation of the
Mortgage Loan to Certificateholders after reimbursement to itself for such
expenses and (ii) that such expenses will be recoverable to it either through
Liquidation Proceeds (respecting which it shall have priority for purposes of
reimbursements from the Certificate Account pursuant to Section 4.03) or through
Insurance Proceeds (respecting which it shall have similar priority). The Master
Servicer shall be responsible for all other costs and expenses incurred by it in
any such proceedings; PROVIDED, HOWEVER, that it shall be entitled to
reimbursement thereof (as well as its normal servicing compensation), and in
respect of the Master Servicer only, to receive Excess Liquidation Proceeds as
additional servicing compensation to the extent that transfers or withdrawals
from the Certificate Account with respect thereto are permitted under Section
4.03. Any income from or other funds (net of any income taxes) generated by REO
Property shall be deemed for purposes of this Agreement to be Insurance
Proceeds.

          (b) The Trust Fund shall not acquire any real property (or any
personal property incident to such real property) except in connection with a
default or imminent default of a Mortgage Loan. The deed or certificate of sale
of any REO Property (or any personal property incident to such real property)
shall be taken in the name of the Trustee, or its nominee, on behalf of the
Certificateholders. The Master Servicer, on behalf of the Trust Fund, shall
either sell any REO Property within three years after the close of the taxable
year in which the Trust Fund acquires ownership of such REO Property for
purposes of Section 860G(a)(8) of the Code or request from the Internal Revenue
Service, more than 60 days before the day on which the three-year grace period
would otherwise expire, an extension of the three-year grace period, unless the
Master Servicer shall have delivered to the Trustee an Opinion of Counsel,
addressed to the Trustee and the Master Servicer, to the effect that the holding
by the Trust Fund of such REO Property subsequent to such three year period
after its acquisition will not result in the imposition on the Trust Fund of
taxes on "prohibited transactions" thereof, as defined in Section 860F of the
Code, or cause REMIC I or REMIC II to fail to qualify as a REMIC under Federal
law at any time that any Certificates are outstanding. The Master Servicer shall
manage, acquire, conserve, protect and operate each REO Property for the
Certificateholders solely for the purpose of its prompt disposition and sale in
a manner which does not cause such REO Property to fail to qualify as
"foreclosure property" within the meaning of Section 860G(a)(8) of the Code or
result in the receipt by the Trust Fund of any "income from non-permitted
assets" within the meaning of Section 860F(a)(2)(B) of the Code, or any "net
income from foreclosure property" which is subject to taxation under the REMIC
Provisions.

          (c) The Master Servicer shall have full power and authority, subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with any REO Property as are consistent with the
manner in which the Master Servicer manages and operates similar property owned
by the Master Servicer or any of its Affiliates, all on such terms and for such
period as the Master Servicer deems to be in the best interests of
Certificateholders. Notwithstanding the foregoing, the Master Servicer shall
not:

               (i) permit the Trust Fund to enter into, renew or extend any
          lease with respect to any REO Property, if such lease by its terms
          will give rise to any income that does not constitute gross income of
          the character described in Section 856(d) of the Code ("Rents from
          Real Property");

               (ii) permit any amount to be received or accrued under any lease
          other than amounts that will constitute Rents from Real Property;

               (iii) authorize or permit any construction on any REO Property,
          other than the completion of a building or other improvement thereon,
          and then only if more than ten percent of the construction of such
          building or other improvement was completed before default on the
          related Mortgage Loan became imminent, all within the meaning of
          Section 856(e)(4)(B) of the Code; or

               (iv) allow any Person (other than an Independent Contractor) to
          Directly Operate any REO Property on any date more than 90 days after
          its date of acquisition by the Trust Fund;

          unless, in any such case, the Master Servicer has obtained an Opinion
of Counsel, provided to the Trustee, to the effect that such action will not
cause such REO Property to fail to qualify as "foreclosure property" within the
meaning of Section 860G(a)(8) of the Code at any time that it is held by the
Trust Fund, in which case the Master Servicer may take such actions as are
specified in such Opinion of Counsel.

          The Master Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:

               (i) the terms and conditions of any such contract shall not be
          inconsistent herewith;

               (v) any such contract shall require, or shall be administered to
          require, that the Independent Contractor pay all costs and expenses
          incurred in connection with the operation and management of such REO
          Property, including those listed above and remit all related revenues
          (net of such costs and expenses) to the Master Servicer as soon as
          practicable, but in no event later than thirty days following the
          receipt thereof by such Independent Contractor;

               (vi) none of the provisions of this Section 3.12(c) relating to
          any such contract or to actions taken through any such Independent
          Contractor shall be deemed to relieve the Master Servicer of any of
          its duties and obligations to the Trustee on behalf of the
          Certificateholders with respect to the operation and management of any
          such REO Property; and

               (vii) the Master Servicer shall be obligated with respect thereto
          to the same extent as if it alone were performing all duties and
          obligations in connection with the operation and management of such
          REO Property.

          The Master Servicer shall be entitled to enter into any agreement with
any Independent Contractor performing services for it related to its duties and
obligations hereunder for indemnification of the Master Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Master Servicer shall be solely liable for
all fees owed by it to any such Independent Contractor, irrespective of whether
the Master Servicer's compensation pursuant to hereto is sufficient to pay such
fees.

          (d) Subject to the time constraints set forth in Subsection 3.12(b),
each sale or other disposition of any REO Property on behalf of the Trust Fund
shall be carried out by the Master Servicer at such price and upon such terms
and conditions as the Master Servicer shall deem necessary or advisable and as
shall be normal and usual in its general servicing activities. Any sale or other
disposition of any REO Property shall be for cash only (unless changes in the
REMIC Provisions made subsequent to the Startup Day allow a sale for other
consideration).

          (e) The Master Servicer shall file information returns with respect to
the receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property as required by
Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.

          Section 3.13. TRUSTEE TO COOPERATE; RELEASE OF MORTGAGE FILES. (a)
Upon payment in full of any Mortgage Loan or the receipt by the Master Servicer
of a notification that payment in full will be escrowed in a manner customary
for such purposes, the Master Servicer will immediately notify the Trustee by
sending two copies of a Request for Release signed by a Servicing Officer in the
form of Exhibit D or in a mutually agreeable electronic format which will, in
lieu of a signature on its face, originate from a Servicing Officer (which
certification shall include a statement to the effect that all amounts received
or to be received in connection with such payment which are required to be
deposited in the Certificate Account have been or will be so deposited in the
appropriate subaccount thereof) and shall request delivery to the Master
Servicer or a Sub-Servicer, as the case may be, of the Mortgage File. Upon
receipt of such certification and request, the Trustee shall promptly release
the related Mortgage File to the Master Servicer or a Sub-Servicer and execute
and deliver to the Master Servicer, without recourse, the request for
reconveyance, deed of reconveyance or release or satisfaction of mortgage or
such instrument releasing the lien of the Security Instrument (furnished by the
Master Servicer), together with the Mortgage Note with written evidence of
cancellation thereon. No expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Certificate
Account.

          (b) From time to time as is appropriate for the servicing or
foreclosure of any Mortgage Loan or collection under a Required Insurance
Policy, the Master Servicer shall deliver to the Trustee two copies of a Request
for Release signed by a Servicing Officer on behalf of the Master Servicer in
substantially the form attached as Exhibit D hereto or in a mutually agreeable
electronic format which will, in lieu of a signature on its face, originate from
a Servicing Officer. Upon receipt of the Request for Release, the Trustee shall
deliver the Mortgage File or any document therein to the Master Servicer or
Sub-Servicer, as the case may be.

          (c) The Master Servicer shall cause each Mortgage File released
pursuant to Subsection 3.13(b) to be returned to the Trustee when the need
therefor no longer exists, and in any event within 21 days of the Master
Servicer's receipt thereof, unless the Mortgage Loan has become a Liquidated
Mortgage Loan and the Liquidation Proceeds relating to the Mortgage Loan have
been deposited in the appropriate subaccount of the Certificate Account or such
Mortgage File is being used to pursue foreclosure or other legal proceedings.
Prior to return of a Mortgage File to the Trustee, the Master Servicer, the
related Insurer or Sub-Servicer to whom such file was delivered shall retain
such file in its respective control unless the Mortgage File has been delivered
to an attorney, or to a public trustee or other public official as required by
law, to initiate or pursue legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially, and the Master
Servicer has delivered to the Trustee a certificate of a Servicing Officer
certifying as to the name and address of the Person to which such Mortgage File
was delivered and the purpose or purposes of such delivery. If a Mortgage Loan
becomes a Liquidated Mortgage Loan, the Master Servicer shall deliver the
Request for Release with respect thereto to the Trustee upon deposit of the
related Liquidation Proceeds in the appropriate subaccount of the Certificate
Account.

          (d) The Trustee shall execute and deliver to the Master Servicer any
court pleadings, requests for trustee's sale or other documents furnished to the
Trustee necessary or advisable to (i) the foreclosure or trustee's sale with
respect to a Mortgaged Property; (ii) any legal action brought to obtain
judgment against any Mortgagor on the Mortgage Note or Security Instrument;
(iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
other rights or remedies provided by the Mortgage Note or Security Instrument or
otherwise available at law or equity. Together with such documents or pleadings
the Master Servicer shall deliver to the Trustee a certificate of a Servicing
Officer in which it requests the Trustee to execute the pleadings or documents.
The certificate shall certify and explain the reasons for which the pleadings or
documents are required. It shall further certify that the Trustee's execution
and delivery of the pleadings or documents will not invalidate any insurance
coverage under the Required Insurance Policies or invalidate or otherwise affect
the lien of the Security Instrument, except for the termination of such a lien
upon completion of the foreclosure or trustee's sale.

          Section 3.14. SERVICING AND MASTER SERVICING COMPENSATION. (a) As
compensation for its activities hereunder, the Master Servicer shall be entitled
to receive the Master Servicing Fee from full payments of accrued interest on
each Mortgage Loan.

          (b) The Master Servicer may retain additional servicing compensation
in the form of prepayment charges, if any, assumption fees, tax service fees,
fees for statement of account or payoff, late payment charges, interest on
amounts deposited in any Accounts (other than the Certificate Account and the
Accrued Interest Account) or Permitted Investments of such amounts, or
otherwise. The Master Servicer is also entitled to receive Excess Liquidation
Proceeds as additional servicing compensation. The Master Servicer shall be
required to pay all expenses it incurs in connection with servicing activities
under this Agreement, including fees and expenses to Sub-Servicers, and shall
not be entitled to reimbursement except as provided in this Agreement. Expenses
to be paid by the Master Servicer under this Subsection 3.14(b) shall include
payment of the expenses of the accountants retained pursuant to Section 3.16.

          Section 3.15. ANNUAL STATEMENT OF COMPLIANCE. Within 120 days after
the last day of each fiscal year of the Master Servicer, currently November 30,
commencing November 2002, the Master Servicer at its own expense, shall deliver
to the Trustee, with a copy to the Rating Agency and the Certificate Insurer, an
Officer's Certificate stating, as to the signer thereof, that (i) a review of
the activities of the Master Servicer during the preceding fiscal year or
applicable portion thereof and of performance under this Agreement has been made
under such officer's supervision, (ii) to the best of such officer's knowledge,
based on such review, the Master Servicer has fulfilled all its obligations
under this Agreement for such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof including the steps being taken by the
Master Servicer to remedy such default; (iii) a review of the activities of each
Sub-Servicer, if any, during the Sub-Servicer's most recently ended fiscal year
on or prior to such November 30th and its performance under its Sub-Servicing
Agreement has been made under such Officer's supervision; and (iv) to the best
of the Servicing Officer's knowledge, based on his review and the certification
of an officer of the Sub-Servicer (unless the Servicing Officer has reason to
believe that reliance on such certification is not justified), either each
Sub-Servicer has performed and fulfilled its duties, responsibilities and
obligations under this Agreement and its Sub-Servicing Agreement in all material
respects throughout the year, or, if there has been a default in performance or
fulfillment of any such duties, responsibilities or obligations, specifying the
nature and status of each such default known to the Servicing Officer. Copies of
such statements shall be provided by the Master Servicer to the
Certificateholders upon request or by the Trustee at the expense of the Master
Servicer should the Master Servicer fail to provide such copies.

          Section 3.16. ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING REPORT.
(a) Within 120 days after the last day of each fiscal year of the Master
Servicer, currently November, commencing November 2002, the Master Servicer, at
its expense, shall cause a firm of Independent public accountants who are
members of the American Institute of Certified Public Accountants to furnish a
statement to the Master Servicer, which will be provided to the Trustee, the
Certificate Insurer and the Rating Agency to the effect that, in connection with
the firm's examination of the Master Servicer's overall servicing activities for
such fiscal year conducted in accordance with the requirements of the Uniform
Single Attestation Program for Mortgage Bankers, nothing came to their attention
that indicated that the Master Servicer was not in compliance with Sections
3.07, 3.15, 4.01, 4.02 and 4.03 except for (i) such exceptions as such firm
believes to be immaterial and (ii) such other exceptions as are set forth in
such statement. In connection with the engagement to deliver any such report (or
other accountants' report or certificate hereunder) the Trustee is authorized
and directed to enter into such agreed-upon-procedures or engagement letter as
such accountants may request and shall be indemnified hereunder in so doing.

          (b) Within 120 days after the last day of the fiscal year of each
Sub-Servicer or a Master Servicer other than EMC or the Trustee, commencing with
the fiscal year ending in 2002, the Master Servicer, at its expense, shall
furnish to the Trustee the most recently available letter or letters from one or
more firms of Independent certified public accountants who are members of the
American Institute of Certified Public Accountants reporting the results of such
firm's examination of the servicing activities and procedures of any
Sub-Servicer and any Master Servicer (other than EMC or the Trustee) in
accordance with the requirements of the Uniform Single Attestation Program for
Mortgage Bankers, or such other program as may be certified as being comparable
by such accountants.

          Section 3.17. REMIC-RELATED COVENANTS. For as long as REMIC I or REMIC
II shall exist, the Master Servicer and the Trustee shall, subject to Article
IX, act in accordance herewith to treat REMIC I and REMIC II as REMICs. In
particular, the Trustee shall not (a) sell or permit the sale (to the extent
that it has actual knowledge of such sale) of all or any portion of the Mortgage
Loans or of any Permitted Investment unless such sale is as a result of a
repurchase of the Mortgage Loans pursuant to this Agreement or the Trustee has
received a REMIC Opinion prepared at the expense of the Trust Fund; and (b)
other than with respect to a substitution of a Mortgage Loan pursuant to Section
2.04 or in connection with a repurchase of a Mortgage Loan pursuant to this
Agreement, accept any contribution to REMIC I or REMIC II after the Startup Day
without receipt of a REMIC Opinion.

          Section 3.18. ADDITIONAL INFORMATION. The Master Servicer agrees to
furnish the Seller and the Certificate Insurer from time to time upon reasonable
request, such further information, reports and financial statements as the
Seller or the Certificate Insurer deems appropriate to prepare and file any
necessary reports with the Securities and Exchange Commission.

          Section 3.19. OPTIONAL PURCHASE OF DEFAULTED MORTGAGE LOANS. The
Master Servicer shall have the right, but not the obligation, to purchase any
Mortgage Loan that as of the first day of a calendar quarter is a Defaulted
Mortgage Loan, at the Repurchase Price; PROVIDED, HOWEVER, that (i) such
Mortgage Loan must, at the time of purchase by the Master Servicer, still be
delinquent in payment by 91 days or more and (ii) the right of the Master
Servicer hereunder to purchase such Mortgage Loan shall, if unexercised,
terminate on the day prior to the last day of such calendar quarter; PROVIDED
FURTHER, that such right of the Master Servicer with respect to such Mortgage
Loan shall be reinstated if such Mortgage Loan shall, if following such Mortgage
Loan's again becoming current in payment, it thereafter again becomes delinquent
in payment by 91 days or more. In such event, the applicable calendar quarter
for purposes of exercise by the Master Servicer of its right of purchase of such
Mortgage Loan hereunder shall be the calendar quarter immediately succeeding
such Mortgage Loan's having again become 91 days delinquent in payment. Such
optional right of repurchase of Defaulted Mortgage Loans by the Master Servicer
is subject to the further limitation that, should the Master Servicer have
purchased Defaulted Mortgage Loans pursuant to this Section 3.19 equal to 2% of
the Cut-Off Date Scheduled Principal Balance, it may thereafter only exercise
such option with respect to a Defaulted Mortgage Loan that is the greatest
number of days delinquent relative to other Defaulted Mortgage Loans at the time
of such repurchase, and must provide the Trustee and the Certificate Insurer
with a REMIC Opinion satisfactory to the Certificate Insurer in connection with
each such purchase. Any such purchase shall be accomplished as provided in
Subsection 2.02(c) hereof.

          Section 3.20. REQUIRED PURCHASE OF RESTRICTED LOANS. BSMCC agrees that
if the Master Servicer has not theretofore purchased a Restricted Loan pursuant
to Section 3.19, it will purchase from the Trust Fund at the Repurchase Price
any Restricted Loan for which (i) it receives notice from the Master Servicer
that title is about to be taken to the related Mortgaged Property as REO
Property on behalf of the Trust Fund and (ii) the Foreclosure Balance of such
Restricted Loan, plus the aggregate Foreclosure Balances as previously
determined by the Master Servicer for Restricted Loans in the same Mortgage Loan
Group that are currently held as REO Property, exceeds 0.75% of the then-current
aggregate basis of the assets in REMIC I. The aggregate basis of the assets of
REMIC I for this purpose is the basis of all REMIC I's assets as determined for
purposes of the most recent Form 1066 (and in the case of any period prior to
the first filing of Form 1066, the issue price of all interests issued by REMIC
I), properly adjusted for estimated changes to such basis. Any such purchase
shall be accomplished as provided in Subsection 2.02(c) hereof.

          Section 3.21. REPORTS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION; ADDITIONAL INFORMATION. Within 15 days after each Distribution Date,
the Trustee shall, in accordance with industry standards, file with the
Commission via the Electronic Data Gathering and Retrieval System ("EDGAR"), a
Form 8-K with a copy of the statement furnished by the Trustee to the
Certificateholders for such Distribution Date as an exhibit thereto. Prior to
January 30, 2002, the Trustee shall, in accordance with industry standards and
only if instructed by the Seller, file a Form 15 Suspension Notice with respect
to the Trust Fund, if applicable. Prior to March 30, 2002, the Trustee shall
file a Form 10-K, in substance conforming to industry standards, with respect to
the Trust Fund. The Seller hereby grants to the Trustee a limited power of
attorney to execute and file each such document on behalf of the Seller. Such
power of attorney shall continue until the earlier of (i) receipt by the Trustee
from the Seller of written termination of such power of attorney and (ii) the
termination of the Trust Fund. The Seller agrees to promptly furnish to the
Trustee, from time to time upon request, such further information, reports and
financial statements within its control related to this Agreement and the
Mortgage Loans as the Trustee reasonably deems appropriate to prepare and file
all necessary reports with the Commission. The Trustee shall have no
responsibility to file any items other than those specified in this Section
3.20; PROVIDED, however, that the Trustee shall cooperate with the Seller in
connection with any additional filings with respect to the Trust Fund as the
Seller deems necessary under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). Copies of all reports filed by the Trustee under the
Exchange Act shall be sent to: Structured Asset Mortgage Investments Inc., c/o
Bear, Stearns & Co., Inc., Attn: Managing Director-Analysis and Control, One
Metrotech Center North, Brooklyn, New York 11202-3859. Fees and expenses
incurred by the Trustee in connection with this Section 3.20 shall not be
reimbursable from the Trust Fund.

<PAGE>

                                   ARTICLE IV

                                    Accounts

          Section 4.01. PROTECTED ACCOUNTS. (a) The Master Servicer shall
establish and maintain if it is servicing the Mortgage Loans and shall require
each Sub-Servicer to establish and maintain a Protected Account complying with
the requirements set forth in this Section 4.01, with records to be kept with
respect thereto on a Mortgage Loan by Mortgage Loan basis, into which accounts
shall be deposited within two Business Days of receipt all collections of
principal and interest on any Mortgage Loan and with respect to any REO Property
received by the Master Servicer, or a Sub-Servicer, including Principal
Prepayments, Insurance Proceeds, Liquidation Proceeds, and advances made from
the Sub-Servicer's own funds (less servicing compensation as permitted by
Subsection 3.14(a)) and all other amounts to be deposited in the Protected
Accounts. The Master Servicer is hereby authorized to make withdrawals from and
deposits to the related Protected Accounts for purposes required or permitted by
this Agreement. All Protected Accounts shall be held in a Designated Depository
Institution and segregated on the books of such institution. The amount at any
time credited to a Protected Account shall be fully insured by the FDIC or, to
the extent that such balance exceeds the lesser of $100,000 or the limits of
such insurance, such excess must be transferred to the Certificate Account or
invested in Permitted Investments or may be deposited in a Rating Agency
Eligible Account in the name of the Trustee for the benefit of
Certificateholders and the Certificate Insurer and not commingled with any other
funds. The Master Servicer may, and the Master Servicer may permit a
Sub-Servicer to, transfer funds to other accounts (which shall for purposes
hereof be deemed to be Protected Accounts), commingle accounts, or to establish
Protected Accounts not conforming to the foregoing requirements, to the extent
that such other accounts or Protected Accounts are Rating Agency Eligible
Accounts.

          Amounts on deposit in a Protected Account may be invested in Permitted
Investments in the name of the Trustee for the benefit of Certificateholders and
the Certificate Insurer and, except as provided in the preceding paragraph, not
commingled with any other funds, such Permitted Investments to mature, or to be
subject to redemption or withdrawal, no later than the date on which such funds
are required to be withdrawn for deposit in the Certificate Account, and shall
be held until required for such deposit. The income earned from Permitted
Investments made pursuant to this Section 4.01 shall be paid to the Master
Servicer or the related Sub-Servicer as additional compensation for its
obligations under this Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the Master Servicer or the related Sub-Servicer. The
Master Servicer shall itself, or shall cause the related Sub-Servicer to,
deposit the amount of any such loss in the related Protected Account within two
Business Days of receipt of notification of such loss but not later than the
second Business Day prior to the Distribution Date on which the moneys so
invested are required to be distributed to the Certificateholders.

          (b) On or before (i) in the case of the Multifamily Loan, the 20th of
each calendar month (or if such day is not a Business Day, the immediately
succeeding Business Day) and (ii) in the case of any other Mortgage Loan, each
Funds Transfer Date, the Master Servicer shall withdraw or shall cause to be
withdrawn from the Protected Accounts and shall immediately deposit or cause to
be deposited in the Certificate Account (and, in the case of the Multifamily
Loan, the Master Servicer shall cause Reilly to withdraw from the applicable
Protected Account and immediately deposit into the Certificate Account) amounts
representing the following collections and payments (other than with respect to
principal of or interest on the Mortgage Loans due on or before the Cut-off Date
except for principal on Simple Interest Loans due on or before the Cut-Off Date
but received after the Cut-Off Date):

               (i) Monthly Payments on the Mortgage Loans received or any
          portion thereof advanced by the Master Servicer or Sub-Servicers which
          were due on or before the related Due Date, net of the amount thereof
          comprising servicing fees in excess of any compensating interest
          payments by the Master Servicer or by Sub-Servicers;

               (ii) Full Principal Prepayments and any Liquidation Proceeds
          received by the Master Servicer or Sub-Servicers with respect to such
          Mortgage Loans in the related Prepayment Period, with interest to the
          date of prepayment or liquidation, net of the amount thereof
          comprising the Master Servicing Fee due the Master Servicer;

               (iii) Partial prepayments of principal received by the Master
          Servicer or Sub-Servicers for such Mortgage Loans in the related
          Prepayment Period; and

               (iv) Any amount to be used as a Certificate Account Advance.

          (c) Withdrawals may be made from a Protected Account only to make
remittances as provided in Section 4.01(b) or 4.03; to reimburse the Master
Servicer or a Sub-Servicer for advances of principal and interest which have
been recovered by subsequent collection from the related Mortgagor; to remove
amounts deposited in error; to remove fees, charges or other such amounts
deposited on a temporary basis; or to clear and terminate the account at the
termination of this Agreement in accordance with Section 10.01. As provided in
Section 4.02(b) certain amounts otherwise due to the Master Servicer may be
retained by it and need not be deposited in the Certificate Account. Except as
provided in the foregoing sentences, prior to transfer of funds into the
Certificate Account pursuant to Section 4.01(b) for application as set forth in
Sections 4.02, 4.03 and 6.01, no withdrawals shall otherwise be made to pay any
expense, cost, fee, indemnity or liability of the Master Servicer or the
Trustee.

          (d) The Master Servicer shall deliver to the Trustee on or prior to
the Determination Date in each month a statement from the institution at which
each Protected Account is maintained showing deposits and withdrawals during the
prior month.

          Section 4.02. CERTIFICATE ACCOUNT. (a) The Trustee shall establish and
maintain in the name of the Trustee, for the benefit of the Certificateholders
and the Certificate Insurer, the Certificate Account as a segregated Rating
Agency Eligible Account or Accounts. The Certificate Account shall have two
separate subaccounts, one for each Mortgage Loan Group. The Trustee will deposit
in the appropriate subaccount of the Certificate Account as received the
following amounts:

               (i) Any amounts withdrawn from a Protected Account pursuant to
          Subsection 4.01(b);

               (ii) Any Monthly Advance and any Compensating Interest Payments;

               (iii) Any Insurance Proceeds or Liquidation Proceeds received by
          the Master Servicer which were not deposited in a Protected Account;

               (iv) The Repurchase Price, with respect to any Mortgage Loans
          purchased pursuant to Sections 2.02, 2.03A, 3.19 or 3.20, any amounts
          which are to be treated pursuant to Section 2.04 as the payment of
          such Repurchase Price, and all proceeds of any Mortgage Loans or
          property acquired with respect thereto repurchased by the Seller or
          its designee pursuant to Section 10.01;

               (v) Any amounts required to be deposited with respect to losses
          on Permitted Investments pursuant to Subsection 4.02(d) below; and

               (vi) Any other amounts received by the Master Servicer or the
          Trustee and required to be deposited in the Certificate Account
          pursuant to this Agreement.

          (b) All amounts (other than income earned on Permitted Investments)
deposited to the Certificate Account shall be held by the Trustee in the name of
the Trustee in trust for the benefit of the Certificateholders and the
Certificate Insurer and in accordance with the terms and provisions of this
Agreement, subject to the right of the Master Servicer to require the Trustee to
make withdrawals therefrom as provided herein. The foregoing requirements for
crediting the Certificate Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of (i) prepayment or late payment charges or assumption, tax service,
statement account or payoff, substitution, satisfaction, release and other like
fees and charges and (ii) the items enumerated in Subsections 4.03(a)(ii),
(iii), (iv), (v), (vii), (viii), (x) and (xii) need not be credited by the
Master Servicer or the related Sub-Servicer to the Certificate Account and may
be retained by the Master Servicer or the related Sub-Servicer as servicing
compensation. In the event that the Master Servicer shall deposit or cause to be
deposited to the Certificate Account any amount not required to be credited
thereto, the Trustee, upon receipt of a written request therefor signed by a
Servicing Officer of the Master Servicer, shall promptly transfer such amount to
the Master Servicer, any provision herein to the contrary notwithstanding.

          (c) The Certificate Account shall at all times be a Rating Agency
Eligible Account held by the Trustee in trust for the benefit of the
Certificateholders and the Certificate Insurer. The Certificate Account and the
funds deposited therein shall not be subject to, and shall be protected from,
all claims, liens and encumbrances of any creditors or depositors of the Trustee
(whether made directly, or indirectly through a liquidator or receiver of the
Trustee). In the sole discretion of the Trustee, the amount at any time credited
to the Certificate Account, other than amounts advanced by the Certificate
Insurer pursuant to the Certificate Insurance Policy, may be held uninvested or
may be invested, in the name of the Trustee or its nominee, for the benefit of
the Certificateholders and the Certificate Insurer, in such Permitted
Investments to be held by the Trustee as selected by it. All Permitted
Investments shall mature or be subject to redemption or withdrawal on or before,
and shall be held until, the next succeeding Distribution Date if the obligor
for such Permitted Investment is the Trustee or in the case of money market
funds for which the Trustee or an Affiliate is the advisor or manager or, if
such obligor is any other Person, the Business Day preceding such Distribution
Date. Any amounts advanced by the Certificate Insurer shall be held uninvested.

          (d) If funds on deposit in the Certificate Account are invested, any
income earned from Permitted Investments made pursuant to this Section 4.02
shall be paid to the Trustee, as compensation for its obligations under this
Agreement, and the risk of loss of moneys required to be distributed to the
Certificateholders resulting from such investments shall be borne by and be the
risk of the Trustee. The amount of any such loss shall be deposited by the
Trustee into the Certificate Account within two Business Days of receipt of
notification of such loss but not later than the Distribution Date on which the
moneys so invested are required to be distributed to the Certificateholders.

          Section 4.03. PERMITTED WITHDRAWALS AND TRANSFERS FROM THE CERTIFICATE
ACCOUNT. (a) The Trustee will, from time to time on demand of the Master
Servicer, make or cause to be made such withdrawals or transfers from the
Certificate Account as the Master Servicer has designated for such transfer or
withdrawal as specified in a certificate signed by a Servicing Officer (upon
which the Trustee may conclusively rely) for the following purposes (limited in
the case of amounts due the Master Servicer to those not withdrawn from the
Protected Account in accordance with the terms of this Agreement):

               (i) [Reserved];

               (ii) to reimburse the Master Servicer or any Sub-Servicer for any
          Monthly Advance or Servicing Advance of its own funds or any advance
          of such Sub-Servicer's own funds, the right of the Master Servicer or
          a Sub-Servicer to reimbursement pursuant to this subclause (ii) being
          limited to amounts received on a particular Mortgage Loan (including,
          for this purpose, the Repurchase Price therefor, Insurance Proceeds
          and Liquidation Proceeds) which represent late payments or recoveries
          of the principal of or interest on such Mortgage Loan respecting which
          such Monthly Advance or Servicing Advance was made;

               (iii) to reimburse the Master Servicer or any Sub-Servicer from
          Insurance Proceeds or Liquidation Proceeds relating to a particular
          Mortgage Loan for amounts expended by the Master Servicer or such
          Sub-Servicer pursuant to Section 3.12 in good faith in connection with
          the restoration of the related Mortgaged Property which was damaged by
          an Uninsured Cause or in connection with the liquidation of such
          Mortgage Loan;

               (iv) to reimburse the Master Servicer or any Sub-Servicer from
          Insurance Proceeds relating to a particular Mortgage Loan for Insured
          Expenses incurred with respect to such Mortgage Loan and to reimburse
          the Master Servicer or such Sub-Servicer from Liquidation Proceeds
          from a particular Mortgage Loan for Liquidation Expenses incurred with
          respect to such Mortgage Loan; PROVIDED THAT the Master Servicer shall
          not be entitled to reimbursement for Liquidation Expenses with respect
          to a Mortgage Loan to the extent that (i) any amounts with respect to
          such Mortgage Loan were paid as Excess Liquidation Proceeds pursuant
          to clause (xii) of this Subsection 4.03(a) to the Master Servicer; and
          (ii) such Liquidation Expenses were not included in the computation of
          such Excess Liquidation Proceeds;

               (v) to pay the Master Servicer or any Sub-Servicer (payment to
          any Sub-Servicer to be subject to prior payment to the Master Servicer
          of an amount equal to the Master Servicing Fee), as appropriate, from
          Liquidation Proceeds or Insurance Proceeds received in connection with
          the liquidation of any Mortgage Loan, the amount which it or such
          Sub-Servicer would have been entitled to receive under subclause (x)
          of this Subsection 4.03(a) as servicing compensation on account of
          each defaulted scheduled payment on such Mortgage Loan if paid in a
          timely manner by the related Mortgagor, but only to the extent that
          the aggregate of Liquidation Proceeds and Insurance Proceeds with
          respect to such Mortgage Loan, after any reimbursement to the Master
          Servicer or any Sub-Servicer, pursuant to subclauses (ii), (iii), (iv)
          and (vii) of this Subsection 4.03(a), exceeds the Outstanding
          Principal Balance of such Mortgage Loan plus accrued and unpaid
          interest thereon at the related Mortgage Rate less the Master
          Servicing Fee Rate to but not including the date of payment;

               (vi) unless any such amount has already been deducted therefrom,
          to pay the Master Servicer or any Sub-Servicer (payment to any
          Sub-Servicer to be subject to prior payment to the Master Servicer of
          the portion of the Master Servicing Fee which the Master Servicer is
          entitled to retain as evidenced in writing to the Trustee by the
          Master Servicer, as appropriate) from the Repurchase Price for any
          Mortgage Loan, the amount which it or such Sub-Servicer would have
          been entitled to receive under subclause (x) of this Subsection
          4.03(a) as servicing compensation, but only to the extent that the
          Repurchase Price with respect to such Mortgage Loan after any
          reimbursement to the related Master Servicer and Sub-Servicer pursuant
          to subclauses (ii) and (vii) of this Subsection 4.03(a) exceeds the
          Outstanding Principal Balance of such Mortgage Loan plus accrued and
          unpaid interest thereon at the related Mortgage Rate less the Master
          Servicing Fee Rate through the last day of the month of repurchase;

               (vii) to the extent not reimbursed pursuant to clause (iii) or
          (iv), to reimburse the Master Servicer or any Sub-Servicer for
          Servicing Advances pursuant to Sections 3.07, 3.09 and 3.10, the right
          to reimbursement pursuant to this subclause being limited to amounts
          received on the related Mortgage Loan (including, for this purpose,
          the Repurchase Price therefor, Insurance Proceeds and Liquidation
          Proceeds) which represent late recoveries of the payments for which
          such advances were made; (viii) to pay the Master Servicer or any
          Sub-Servicer, as the case may be, with respect to each Mortgage Loan
          that has been purchased pursuant to Section 2.02, 2.03A, 2.04, 3.19 or
          10.01 or BSMCC with respect to each Mortgage Loan purchased pursuant
          to Section 3.20, all amounts received thereon, representing recoveries
          of principal that reduce the Outstanding Principal Balance of the
          related Mortgage Loan below the Outstanding Principal Balance used in
          calculating the Repurchase Price or representing interest included in
          the calculation of the Repurchase Price or accrued after the end of
          the month during which such repurchase occurs;

               (ix) to reimburse the Master Servicer or any Sub-Servicer for any
          Monthly Advance or Servicing Advance, after a Realized Loss has been
          allocated with respect to the related Mortgage Loan if the Monthly
          Advance or Servicing Advance has not been reimbursed pursuant to
          clauses (ii) and (vii), such reimbursement to come from the subaccount
          relating to the Mortgage Loan Group of which the related Mortgage Loan
          is part;

               (x) to pay the Master Servicer and any Sub-Servicer servicing
          compensation as set forth in Section 3.14;

               (xi) on each Distribution Date, to reimburse the Master Servicer
          for expenses, costs, indemnification and liabilities incurred by and
          reimbursable to it pursuant to Subsection 7.04(c) and (d), in an
          amount not to exceed $7,500 per month, which, if not specifically
          allocable to a Mortgage Loan Group, shall be allocated between the
          subaccounts pro rata, based upon the aggregate Scheduled Principal
          Balance of the related Mortgage Loan Group as of the close of business
          on the last day of the immediately preceding Due Period (any such
          amounts in excess of $7,500 being subject to reimbursement in
          accordance with Section 6.01(a);

               (xii) pay to the Master Servicer, as additional servicing
          compensation, any Excess Liquidation Proceeds;

               (xiii) to clear and terminate the Certificate Account pursuant to
          Section 10.01; and

               (xiv) to remove amounts deposited in error.

          The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any
reimbursement from the Certificate Account pursuant to subclauses (i) through
(vii), inclusive, and (ix) or with respect to any such amounts which would have
been covered by such subclauses had the amounts not been retained by the Master
Servicer without being deposited in the Certificate Account under Section
4.02(b).

          (b) On each Distribution Date, the Trustee shall make the following
payments in the priority set forth from Available Funds in the Certificate
Account (with respect to clause (i) and (ii), such payments to be allocated
between Group Available Funds in each subaccount pro rata, based on the
aggregate Scheduled Principal Balance of the related Mortgage Loan Group as of
the close of business on the last day of the immediately preceding Due Period):

               (i) First, expenses, costs, liabilities, indemnities and other
          amounts incurred by and reimbursable to the Trustee in accordance with
          Sections 8.02 and 9.05(a) and (b), in an amount not to exceed $7,500,
          shall be paid to the Trustee (any such amounts in excess of $7,500
          being subject to reimbursement in accordance with Section 6.01(a).);

               (ii) Second, the Certificate Insurer Premium shall be paid to the
          Certificate Insurer in accordance with the Insurance Agreement; and

               (iii) Third, the amounts distributable to the Holders of the
          Certificates and the Certificate Insurer shall be payable in
          accordance with Section 6.01.

          (c) Notwithstanding the provisions of this Section 4.03, the Master
Servicer may, but is not required to, allow the Sub-Servicers to deduct from
amounts received by them or from the related Protected Account, prior to deposit
in the Certificate Account, any portion to which such Sub-Servicers are entitled
as servicing compensation (including income on Permitted Investments) or
reimbursement of any reimbursable advances made by such Sub-Servicers.

          (d) The Trustee shall be permitted to make withdrawals or transfers
from the Certificate Account to remove amounts deposited by the Trustee in
error.

          Section 4.04. ACCRUED INTEREST ACCOUNT. The Trustee shall establish in
the name of the Trustee for the benefit of the Certificateholders, the Accrued
Interest Account as a Rating Agency Eligible Account. The Accrued Interest
Account shall not be invested. On the Closing Date, EMC shall deposit an amount
equal to the Accrued Interest Reimbursement Amount into the Accrued Interest
Account. On the Distribution Date in November 2001, the Trustee shall distribute
the Accrued Interest Reimbursement Amount to the Certificateholders in
accordance with Section 6.01 and thereafter close the Accrued Interest Account.

<PAGE>

                                   ARTICLE IVA

                        The Certificate Insurance Policy

          Section 4A.01. CLAIMS UNDER THE CERTIFICATE INSURANCE POLICY. (a) On
each Determination Date, the Trustee shall, based on the related Loan Summary
and Remittance Report delivered by the Master Servicer, determine whether a
Deficiency Amount exists. If a Deficiency Amount then exists, the Trustee shall
make a request for payment of the Deficiency Amount by the Certificate Insurer
no later than 12:00 p.m. on the third Business Day prior to the related
Distribution Date in the manner provided in the Certificate Insurance Policy.
All claims made by the Trustee under the Certificate Insurance Policy shall be
made in accordance with and subject to the terms of the Certificate Insurance
Policy.

          (b) The Trustee shall (i) receive, as attorney-in-fact of each Holder
of a Senior Certificate, any Insured Payment paid to the Trustee under the
Certificate Insurance Policy, (ii) deposit any such Insured Payment in the
Certificate Account and hold any such Insured Payment therein uninvested and
(iii) distribute the portion thereof constituting the Deficiency Amount to the
related Holder of a Senior Certificate pursuant to Section 6.01(a). The portion
of any Insured Payment constituting a Preference Amount shall, if received by
the Trustee, be paid by the Trustee in accordance with the provisions of the
Certificate Insurance Policy. Any Insured Payment made by the Certificate
Insurer under the Certificate Insurance Policy and disbursed in accordance
herewith or in accordance with the provisions of the Certificate Insurance
Policy shall not be considered payment by the Trust with respect to such
Certificates, and shall not discharge the obligations of the Trust with respect
thereto. The Certificate Insurer shall, to the extent it makes any payment with
respect to Senior Certificates, become subrogated to the rights of the
recipients of such payments to the extent of such payments. Subject to and
conditioned upon any payment with respect to Senior Certificates by or on behalf
of the Certificate Insurer under the Certificate Insurance Policy, the Trustee
shall on behalf of the Holders of the related Senior Certificates assign to the
Certificate Insurer all rights to the payment of interest or principal with
respect to such Senior Certificates which are then due for payment to the extent
of all payments made by the Certificate Insurer. To evidence such subrogation,
the Trustee shall note the Certificate Insurer's rights as subrogee upon the
Certificate Register upon receipt from the Certificate Insurer of proof of
payment by the Certificate Insurer under the Certificate Insurance Policy.

          (c) The Trustee shall be entitled to enforce on behalf of the Senior
Certificateholders the obligations of the Certificate Insurer under the
Certificate Insurance Policy. Notwithstanding any other provision of this
Agreement, the Senior Certificateholders are not entitled to make a claim for
any Deficiency Amount directly under the Certificate Insurance Policy or
institute proceedings directly against the Certificate Insurer.

          Section 4A.02. RIGHTS OF THE CERTIFICATE INSURER. Each Senior
Certificateholder by purchase of a Senior Certificate held by it acknowledges
and agrees that the Certificate Insurer shall have certain rights hereunder for
so long as the Senior Certificates are outstanding or any amounts are owed to
the Certificate Insurer pursuant to the Certificate Insurance Policy, and the
Certificate Insurer is not in default thereunder. Notwithstanding anything to
the contrary contained herein, so long as a default by the Certificate Insurer
pursuant to the Certificate Insurance Policy has occurred and is continuing, any
provision giving the Certificate Insurer the right to direct, appoint or consent
to, approve of, or take any action under this Agreement or the Seller Contract,
irrespective of whether such rights have been either granted directly to the
Certificate Insurer, to the Certificate Insurer as a third-party beneficiary or
exercised on behalf of the Senior Certificateholders, shall be inoperative
during the period of such default and such right shall instead vest in the
Trustee acting at the written direction of Senior Certificateholders (without
regard to Section 11.06). The Certificate Insurer may disclaim any of its rights
and powers under this Agreement (but not its duties and obligations under the
Certificate Insurance Policy or the Insurance Agreement) upon delivery of a
written notice to the Trustee. Unless otherwise specified herein, the
Certificate Insurer may give or withhold any consent hereunder in its reasonable
discretion.

<PAGE>

                                   ARTICLE V

                                  Certificates

          Section 5.01. CERTIFICATES. (a) The Depository, the Seller and the
Trustee have entered into a Depository Agreement dated as of October 17, 2001
(the "Depository Agreement"). Except for the Residual Certificates, the
Individual Certificates and as provided in Subsection 5.01(b), the Certificates
shall at all times remain registered in the name of the Depository or its
nominee and at all times: (i) registration of such Certificates may not be
transferred by the Trustee except to a successor to the Depository; (ii)
ownership and transfers of registration of such Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iii) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (iv) the Trustee shall deal with the
Depository for all purposes (including the making of a distribution) as
representative of such Certificate Owners of the respective Class of
Certificates, and including for purposes of exercising the rights of
Certificateholders under this Agreement, and requests and directions for and
votes of such representative shall not be deemed to be inconsistent if they are
made with respect to different Certificate Owners; and (v) the Trustee may rely
and shall be fully protected in relying upon information furnished by the
Depository with respect to its Depository Participants.

          The Residual Certificates and the Private Certificates are initially
Physical Certificates. If at any time the Holders of all of the Certificates of
one or more such Classes request that the Trustee cause such Class to become
Global Certificates, the Trustee and the Seller will take such action as may be
reasonably required to cause the Depository to accept such Class or Classes for
trading if it may legally be so traded.

          All transfers by Certificate Owners of such respective Classes of
Book-Entry Certificates and any Global Certificates shall be made in accordance
with the procedures established by the Depository Participant or brokerage firm
representing such Certificate Owners. Each Depository Participant shall only
transfer Book-Entry Certificates of Certificate Owners it represents or of
brokerage firms for which it acts as agent in accordance with the Depository's
normal procedures.

          (b) If (i)(A) the Seller advises the Trustee in writing that the
Depository is no longer willing or able to properly discharge its
responsibilities as Depository and (B) the Trustee or the Seller is unable to
locate a qualified successor within 30 days or (ii) the Seller at its option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository, the Trustee shall request that the Depository notify all
Certificate Owners of the occurrence of any such event and of the availability
of definitive, fully registered Certificates to Certificate Owners requesting
the same. Upon surrender to the Trustee of the Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall issue such definitive Certificates. Neither the Seller, the
Master Servicer nor the Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions.

          (c) REMIC I will be evidenced by (x) the Class 1-a, Class 2-a, Class
1-b, Class 2-b and Class Q Certificates (the "REMIC I Regular Certificates"),
which will be uncertificated and non-transferable and are hereby designated as
the "regular interests" in REMIC I and (y) the Class R-1 Certificate, which is
hereby designated as the single "residual interest" in REMIC I. The assets of
REMIC I are, for federal income tax purposes, the assets of the Trust Fund.
Distributions shall be made first, so as to keep the Class 1-a and Class 2-a
Certificates equal to 0.1% of the Pool 1 Balance AND 0.1% of the Pool 2 Balance,
respectively; second, to the Class 1-b and Class 2-b Certificates, so that their
principal balances are equal to 0.1% of the excess of the Pool 1 Balance over
the principal balance of the Class A-1 Certificates AND 0.1% of the excess of
the Pool 2 Balance over the principal balance of the Class A-2 Certificates,
respectively (except that if any such excess is a larger number than in the
preceding distribution period, the least amount of principal shall be
distributed to the Class 1-b and Class 2-b Certificates such that the
Subordinate Balance Ratio is maintained); and third, any remaining principal to
the Class Q Certificates. Realized Losses shall be applied to the outstanding
balance of each class of REMIC I Certificates, after all distributions have been
made on each Distribution Date first, so as to keep the Class 1-a and Class 2-a
Certificates equal to 0.1% of the Pool 1 Balance AND 0.1% of the Pool 2 Balance,
respectively; second, to the Class 1-b and Class 2-b Certificates, so that their
principal balances are equal to 0.1% of the excess of the Pool 1 Balance over
the principal balance of the Class A-1 Certificates AND 0.1% of the excess of
the Pool 2 Balance over the principal balance of the Class A-2 Certificates,
respectively (except that if any such excess is a larger number than in the
preceding distribution period, the least amount of principal shall be allocated
to the Class 1-b and Class 2-b Certificates such that the Subordinate Balance
Ratio is maintained); and third, the remaining Realized Losses shall be
allocated to the Class Q Certificate. The REMIC I Regular Certificates and the
Class R-1 Certificates will have the following designations and pass-through
rates:

REMIC I                                                   Pass-
CERTIFICATES              INITIAL BALANCE              THROUGH RATE

1-a                     $         67,065.25                 (1)
2-a                     $         15,137.66                 (2)
1-b                     $          2,347.35                 (3)
2-b                     $        529,863.00                 (3)
Q                       $     81,588,500.84                 (3)
R-1                     $              0.00                 0%

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

(1)  For any Distribution Date, the weighted average Net Rate of the Group 1
     Mortgage Loans as of the close of business on the last day of the Due
     Period immediately preceding the Due Period related to such Distribution
     Date.

(2)  For any Distribution Date, the weighted average Net Rate of the Group 2
     Mortgage Loans as of the close of business on the last day of the Due
     Period immediately preceding the Due Period related to such Distribution
     Date.

(3)  For any Distribution Date, the weighted average Net Rate of all of the
     Mortgage Loans as of the close of business on the last day of the Due
     Period immediately preceding the Due Period related to such Distribution
     Date.

          (d) REMIC II will be evidenced by the Class A-1, A-2, B-1, B-2, B-3,
B-4, B-5 and B-6 Certificates (which are hereby designated as the "REMIC II
Regular Certificates") and the Class R-2 Certificate (which is hereby designated
as the sole residual interest in REMIC II). The assets of REMIC II are, for
federal income tax purposes, the REMIC I Regular Certificates.

REMIC II                                                  Pass-
CERTIFICATES              INITIAL BALANCE              THROUGH RATE

A-1                       $     64,717,900.00                (1)
A-2                       $     14,607,800.00                (2)
B-1                       $        822,000.00                (3)
B-2                       $        822,000.00                (3)
B-3                       $        616,500.00                (3)
B-4                       $        205,500.00                (3)
B-5                       $        164,400.00                (3)
B-6                       $        246,813.00                (3)
R-2                       $              0.00                0%

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

(1)  For any Distribution Date, the weighted average of the Net Rates of the
     Group 1 Mortgage Loans as of the close of business on the last day of the
     Due Period immediately preceding the Due Period related to such
     Distribution Date, less the Certificate Insurer Rate.

(2)  For any Distribution Date, the weighted average of the Net Rates of the
     Group 2 Mortgage Loans as of the close of business on the last day of the
     Due Period immediately preceding the Due Period related to such
     Distribution Date, less the Certificate Insurer Rate.

(3)  For any Distribution Date, an amount equal to the weighted average of the
     pass-through rates of the Class 1-b and the Class 2-b Certificates on such
     Distribution Date, PROVIDED, HOWEVER, that (i) the pass-through rate of the
     Class 1-b Certificates shall be subject to both a cap and a floor equal to
     the weighted average of the Net Rates of the Group 1 Mortgage Loans as of
     the close of business on the last day of the Due Period immediately
     preceding the Due Period related to such Distribution Date and (ii) the
     pass-through rate of the Class 2-b Certificates shall be subject to both a
     cap and a floor equal to the weighted average of the Net Rates of the Group
     2 Mortgage Loans as of the close of business on the last day of the Due
     Period immediately preceding the Due Period related to such Distribution
     Date.

          (e) With respect to each Distribution Date, each Class of Certificates
(other than the Residual Certificates) shall accrue interest during the related
Interest Accrual Period. With respect to each Distribution Date and each such
Class of Certificates, interest shall be calculated, on the basis of a 360-day
year comprised of twelve 30-day months, based upon the respective Pass-Through
Rate determined as provided above, and the Current Principal Amount of such
Class applicable to such Distribution Date.

          (f) The Certificates shall be substantially in the forms set forth in
Exhibit A. On original issuance, the Trustee shall sign, countersign and shall
deliver them at the direction of the Seller. Pending the preparation of
definitive Certificates of any Class, the Trustee may sign and countersign
temporary Certificates that are printed, lithographed or typewritten, in
authorized denominations for Certificates of such Class, substantially of the
tenor of the definitive Certificates in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the officers or authorized signatories executing such Certificates may
determine, as evidenced by their execution of such Certificates. If temporary
Certificates are issued, the Seller will cause definitive Certificates to be
prepared without unreasonable delay. After the preparation of definitive
Certificates, the temporary Certificates shall be exchangeable for definitive
Certificates upon surrender of the temporary Certificates at the office of the
Trustee, without charge to the Holder. Upon surrender for cancellation of any
one or more temporary Certificates, the Trustee shall sign and countersign and
deliver in exchange therefor a like aggregate principal amount, in authorized
denominations for such Class, of definitive Certificates of the same Class.
Until so exchanged, such temporary Certificates shall in all respects be
entitled to the same benefits as definitive Certificates.

          (g) Each Class of Book-Entry Certificates will be registered as a
single Certificate of such Class held by a nominee of the Depository or the DTC
Custodian, and beneficial interests will be held by investors through the
book-entry facilities of the Depository in minimum denominations of $25,000 and
increments of $1.00 in excess thereof, except that one Certificate of each such
Class may be issued in a different amount so that the sum of the denominations
of all outstanding Certificates of such Class shall equal the Current Principal
Amount of such Class on the Closing Date. On the Closing Date, the Trustee shall
execute and countersign Physical Certificates all in an aggregate principal
amount that shall equal the Current Principal Amount of such Class on the
Closing Date. The Private Certificates (other than the Residual Certificates)
will be issued in certificated fully-registered form in minimum denominations of
$50,000 and increments of $1.00 in excess thereof, except that one Certificate
of each such Class may be issued in a different amount so that the sum of the
denominations of all outstanding Certificates of such Class shall equal the
Current Principal Amount of such Class on the Closing Date. The Residual
Certificates shall each be issued as a single certificate in certificated
fully-registered form with no principal balance. Each Class of Global
Certificates, if any, shall be issued in fully registered form in minimum dollar
denominations of $50,000 and integral multiples of $1.00 in excess thereof,
except that one Certificate of each Class may be in a different denomination so
that the sum of the denominations of all outstanding Certificates of such Class
shall equal the Current Principal Amount of such Class on the Closing Date. On
the Closing Date, the Trustee shall execute and countersign (i) in the case of
each Class of Offered Certificates, the Certificate in the entire Current
Principal Amount of the respective Class and (ii) in the case of each Class of
Private Certificates, all in an aggregate principal amount that shall equal the
Current Principal Amount of each such respective Class on the Closing Date. The
Certificates referred to in clause (i) and, if at any time there are to be
Global Certificates, the Global Certificates, shall be delivered by the Seller
to the Depository or pursuant to the Depository's instructions, shall be
delivered by the Seller on behalf of the Depository to and deposited with the
DTC Custodian. The Trustee shall sign the Certificates by facsimile or manual
signature and countersign them by manual signature on behalf of the Trustee by
one or more authorized signatories, each of whom shall be a Responsible Officer
of the Trustee or its agent. A Certificate bearing the manual and facsimile
signatures of individuals who were the authorized signatories of the Trustee or
its agent at the time of issuance shall bind the Trustee, notwithstanding that
such individuals or any of them have ceased to hold such positions prior to the
delivery of such Certificate.

          (h) No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
the manually executed countersignature of the Trustee or its agent, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates issued on the Closing Date shall be dated the Closing Date. All
Certificates issued thereafter shall be dated the date of their
countersignature.

          (i) The Closing Date is hereby designated as the "startup" day of each
REMIC within the meaning of Section 860G(a)(9) of the Code.

          (j) For federal income tax purposes, each REMIC shall have a tax year
that is a calendar year and shall report income on an accrual basis.

          (k) The Trustee shall cause each REMIC to elect to be treated as a
REMIC under Section 860D of the Code. Any inconsistencies or ambiguities in this
Agreement or in the administration of any Trust established hereby shall be
resolved in a manner that preserves the validity of such elections.

          (l) The "latest possible maturity date" (for purposes of Treasury
Regulation Section 1.860G-1) for each of the regular interests in REMIC I and
REMIC II shall be the Assumed Final Distribution Date.

          (m) The Class R-1 and Class R-2 Certificates shall each be entitled to
all distributions from their respective REMICs, if any, that are not otherwise
provided for herein.

          Section 5.02. REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.
(a) The Trustee shall maintain at its Corporate Trust Office 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.

          (b) Subject to Subsection 5.01(a) and, in the case of any Global
Certificate or Physical Certificate upon the satisfaction of the conditions set
forth below, upon surrender for registration of transfer of any Certificate at
any office or agency of the Trustee maintained for such purpose, the Trustee
shall sign, countersign and shall deliver, in the name of the designated
transferee or transferees, a new Certificate of a like Class and aggregate
Fractional Undivided Interest, but bearing a different number.

          (c) By acceptance of an Individual Certificate, whether upon original
issuance or subsequent transfer, each holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth in the Securities
Legend and agrees that it will transfer such a Certificate only as provided
herein. In addition to the provisions of Subsection 5.02(h), the following
restrictions shall apply with respect to the transfer and registration of
transfer of an Individual Certificate to a transferee that takes delivery in the
form of an Individual Certificate:

               (i) The Trustee shall register the transfer of an Individual
          Certificate if the requested transfer is being made to a transferee
          who has provided the Trustee with a Rule 144A Certificate.

               (ii) The Trustee shall register the transfer of any Individual
          Certificate if (x) the transferor has advised the Trustee in writing
          that the Certificate is being transferred to an Institutional
          Accredited Investor; and (y) prior to the transfer the transferee
          furnishes to the Trustee an Investment Letter (and the Trustee shall
          be fully protected in so doing), provided that, if based upon an
          Opinion of Counsel to the effect that the delivery of (x) and (y)
          above are not sufficient to confirm that the proposed transfer is
          being made pursuant to an exemption from, or in a transaction not
          subject to, the registration requirements of the Securities Act and
          other applicable laws, the Trustee shall as a condition of the
          registration of any such transfer require the transferor to furnish
          such other certifications, legal opinions or other information prior
          to registering the transfer of an Individual Certificate as shall be
          set forth in such Opinion of Counsel.

          (d) Subject to Subsection 5.02(h), so long as a Global Certificate of
such Class is outstanding and is held by or on behalf of the Depository,
transfers of beneficial interests in such Global Certificate, or transfers by
holders of Individual Certificates of such Class to transferees that take
delivery in the form of beneficial interests in the Global Certificate, may be
made only in accordance with this Subsection 5.02(d) and in accordance with the
rules of the Depository:

               (i) In the case of a beneficial interest in the Global
          Certificate being transferred to an Institutional Accredited Investor,
          such transferee shall be required to take delivery in the form of an
          Individual Certificate or Certificates and the Trustee shall register
          such transfer only upon compliance with the provisions of Subsection
          5.02(c)(ii).

               (ii) In the case of a beneficial interest in a Class of Global
          Certificates being transferred to a transferee that takes delivery in
          the form of an Individual Certificate or Certificates of such Class,
          except as set forth in clause (i) above, the Trustee shall register
          such transfer only upon compliance with the provisions of Subsection
          5.02(c)(i).

               (iii) In the case of an Individual Certificate of a Class being
          transferred to a transferee that takes delivery in the form of a
          beneficial interest in a Global Certificate of such Class, the Trustee
          shall register such transfer if the transferee has provided the
          Trustee with a Rule 144A Certificate.

               (iv) No restrictions shall apply with respect to the transfer or
          registration of transfer of a beneficial interest in the Global
          Certificate of a Class to a transferee that takes delivery in the form
          of a beneficial interest in the Global Certificate of such Class;
          provided that each such transferee shall be deemed to have made such
          representations and warranties contained in the Rule 144A Certificate
          as are sufficient to establish that it is a QIB.

          (e) Subject to Subsection 5.02(h), an exchange of a beneficial
interest in a Global Certificate of a Class for an Individual Certificate or
Certificates of such Class, an exchange of an Individual Certificate or
Certificates of a Class for a beneficial interest in the Global Certificate of
such Class and an exchange of an Individual Certificate or Certificates of a
Class for another Individual Certificate or Certificates of such Class (in each
case, whether or not such exchange is made in anticipation of subsequent
transfer, and, in the case of the Global Certificate of such Class, so long as
such Certificate is outstanding and is held by or on behalf of the Depository)
may be made only in accordance with this Subsection 5.02(e) and in accordance
with the rules of the Depository:

               (i) A holder of a beneficial interest in a Global Certificate of
          a Class may at any time exchange such beneficial interest for an
          Individual Certificate or Certificates of such Class.

               (ii) A holder of an Individual Certificate or Certificates of a
          Class may exchange such Certificate or Certificates for a beneficial
          interest in the Global Certificate of such Class if such holder
          furnishes to the Trustee a Rule 144A Certificate.

               (iii) A holder of an Individual Certificate of a Class may
          exchange such Certificate for an equal aggregate principal amount of
          Individual Certificates of such Class in different authorized
          denominations without any certification.

          (f) (i) Upon acceptance for exchange or transfer of an Individual
Certificate of a Class for a beneficial interest in a Global Certificate of such
Class as provided herein, the Trustee shall cancel such Individual Certificate
and shall (or shall request the Depository to) endorse on the schedule affixed
to the applicable Global Certificate (or on a continuation of such schedule
affixed to the Global Certificate and made a part thereof) or otherwise make in
its books and records an appropriate notation evidencing the date of such
exchange or transfer and an increase in the certificate balance of the Global
Certificate equal to the certificate balance of such Individual Certificate
exchanged or transferred therefor.

               (ii) Upon acceptance for exchange or transfer of a beneficial
          interest in a Global Certificate of a Class for an Individual
          Certificate of such Class as provided herein, the Trustee shall (or
          shall request the Depository to) endorse on the schedule affixed to
          such Global Certificate (or on a continuation of such schedule affixed
          to such Global Certificate and made a part thereof) or otherwise make
          in its books and records an appropriate notation evidencing the date
          of such exchange or transfer and a decrease in the certificate balance
          of such Global Certificate equal to the certificate balance of such
          Individual Certificate issued in exchange therefor or upon transfer
          thereof.

          (g) The Securities Legend shall be placed on any Individual
Certificate issued in exchange for or upon transfer of another Individual
Certificate or of a beneficial interest in a Global Certificate.

          (h) Subject to the restrictions on transfer and exchange set forth in
this Section 5.02 and Sections 5.06 and 5.07, the holder of any Individual
Certificate may transfer or exchange the same in whole or in part (in an initial
certificate balance equal to the minimum authorized denomination set forth in
Section 5.01(g) above or any integral multiple of $1.00 in excess thereof) by
surrendering such Certificate at the Corporate Trust Office or at such other
office as may be designated by the Trustee for this purpose, or at the office of
any transfer agent, together with an executed instrument of assignment and
transfer satisfactory in form and substance to the Trustee in the case of
transfer and a written request for exchange in the case of exchange. The holder
of a beneficial interest in a Global Certificate may, subject to the rules and
procedures of the Depository, cause the Depository (or its nominee) to notify
the Trustee in writing of a request for transfer or exchange of such beneficial
interest for an Individual Certificate or Certificates. Following a proper
request for transfer or exchange, the Trustee shall, within five Business Days
of such request made at such Corporate Trust Office, sign, countersign and
deliver at such Corporate Trust Office, to the transferee (in the case of
transfer) or holder (in the case of exchange) or send by first class mail at the
risk of the transferee (in the case of transfer) or holder (in the case of
exchange) to such address as the transferee or holder, as applicable, may
request, an Individual Certificate or Certificates, as the case may require, for
a like aggregate Fractional Undivided Interest and in such authorized
denomination or denominations as may be requested. The presentation for transfer
or exchange of any Individual Certificate shall not be valid unless made at the
Corporate Trust Office or at such other office as may be designated by the
Trustee for this purpose by the registered holder in person, or by a duly
authorized attorney-in-fact. As of the Closing Date, the Trustee designates its
Corporate Trust Office as the office for accepting Certificates for transfer or
surrender in accordance with this Article V.

          (i) At the option of the Certificateholders, Certificates may be
exchanged for other Certificates of authorized denominations of a like Class and
aggregate Fractional Undivided Interest, upon surrender of the Certificates to
be exchanged at any such office or agency; PROVIDED, HOWEVER, that no
Certificate may be exchanged for new Certificates unless the original Fractional
Undivided Interest represented by each such new Certificate (i) is at least
equal to the minimum authorized denomination, or (ii) is acceptable to the
Seller as indicated to the Trustee in writing. Whenever any Certificates are so
surrendered for exchange, the Trustee shall sign and countersign and the Trustee
shall deliver the Certificates which the Certificateholder making the exchange
is entitled to receive.

          (j) If the Trustee so requires, every Certificate presented or
surrendered for transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer, with a signature guarantee, in
form satisfactory to the Trustee, duly executed by the holder thereof or his or
her attorney duly authorized in writing.

          (k) 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.

          (l) The Trustee shall cancel all Certificates surrendered for transfer
or exchange but shall retain such Certificates in accordance with its standard
retention policy or for such further time as is required by the record retention
requirements of the Securities Exchange Act of 1934, as amended, and thereafter
may destroy such Certificates.

          (m) The following legend shall be placed on Certificates for each
Class of Subordinate Certificates, whether upon original issuance or upon
issuance of any other Certificate of any such Class in exchange therefor or upon
transfer thereof and each transfer of Certificates of such Classes shall be
subject to the provisions thereof:

     THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
     BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
     IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
     1974, AS AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986,
     AS AMENDED, UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE
     AND THE SERVICING, MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS:
     (I) WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED
     UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING,
     BUT NOT LIMITED TO, PROHIBITED TRANSACTION EXEMPTION ("PTE") 84-14, PTE
     91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY
     ADDITIONAL FIDUCIARY DUTIES ON THE PART OF THE MASTER SERVICER OR THE
     TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY
     CERTIFICATE OR A GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
     REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PRIVATE
     CERTIFICATE.

          Section 5.03. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. (a)
If (i) any mutilated Certificate is surrendered to the Trustee, or the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and (ii) there is delivered to the Trustee such security or
indemnity as it may require to save it harmless, and (iii) the Trustee has not
received notice that such Certificate has been acquired by a third Person, the
Trustee shall sign, countersign and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
tenor and Fractional Undivided Interest but in each case bearing a different
number. The mutilated, destroyed, lost or stolen Certificate shall thereupon be
canceled of record by the Trustee and shall be of no further effect and evidence
no rights.

          (b) Upon the issuance of any new Certificate under this Section 5.03,
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) connected therewith.
Any duplicate Certificate issued pursuant to this Section 5.03 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 Seller, the Master Servicer, the
Trustee and any agent of the Seller, the Master Servicer or the Trustee 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
6.01 and for all other purposes whatsoever. Neither the Seller, the Master
Servicer, the Trustee nor any agent of the Seller, the Master Servicer or the
Trustee shall be affected by notice to the contrary. No Certificate shall be
deemed duly presented for a transfer effective on any Record Date unless the
Certificate to be transferred is presented no later than the close of business
on the fifth Business Day preceding such Record Date.

          Section 5.05. TRANSFER RESTRICTIONS ON RESIDUAL CERTIFICATES. (a) The
Residual Certificate, or interests therein, may not be transferred without the
prior express written consent of the Tax Matters Person and the Seller. As a
prerequisite to such consent, the proposed transferee must provide the Tax
Matters Person, the Seller and the Trustee with an affidavit that the proposed
transferee is not a Disqualified Organization (as defined in Subsection 5.05(b))
(and, unless the Tax Matters Person and the Seller consent to the transfer to a
person who is not a U.S. Person, an affidavit that it is a U.S. Person) as
provided in Subsection 5.05(b).

          (b) No transfer, sale or other disposition of a Residual Certificate
(including a beneficial interest therein) may be made unless, prior to the
transfer, sale or other disposition of a Residual Certificate, the proposed
transferee (including the initial purchaser thereof) delivers to the Tax Matters
Person, the Seller and the Trustee an affidavit in the form attached hereto as
Exhibit E stating, among other things, that as of the date of such transfer (i)
such transferee is not any of (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 (other than an
instrumentality that is a corporation all of whose activities are subject to tax
under Chapter 1 of Subtitle A of the Code and (except in the case of Freddie
Mac) a majority of whose board of directors is not selected by the United
States, or any state or political subdivision thereof), (B) any organization
that is exempt from any tax imposed by Chapter 1 of Subtitle A of the Code,
other than (x) a tax-exempt farmers' cooperative within the meaning of Section
521 of the Code or (y) an organization that is subject to the tax imposed by
Section 511 of the Code on "unrelated business taxable income" or (C) a
corporation operating on a cooperative basis that is engaged in furnishing
electric energy or providing telephone service to persons in rural areas (within
the meaning of Section 1381(a)(2)(C) of the Code) (any Person described in (A),
(B), or (C) being referred to herein as a "Disqualified Organization") and that
(ii) such transferee is not acquiring such Residual Certificate for the account
of a Disqualified Organization. Neither the Tax Matters Person nor the Seller
shall consent to a transfer of a Residual Certificate if it has actual knowledge
that any statement made in the affidavit issued pursuant to the preceding
sentence is not true. Notwithstanding any transfer, sale or other disposition of
a Residual Certificate to a Disqualified Organization, such transfer, sale or
other disposition shall be deemed to be of no legal force or effect whatsoever
and such Disqualified Organization shall not be deemed to be a Holder of a
Residual Certificate for any purpose hereunder, including, but not limited to,
the receipt of distributions thereon. If any purported transfer shall be in
violation of the provisions of this Subsection 5.05(b), then the prior Holder
thereof shall, upon discovery that the transfer of such Residual Certificate was
not in fact permitted by this Subsection 5.05(b), be restored to all rights as a
Holder thereof retroactive to the date of the purported transfer. None of the
Trustee, the Seller or the Tax Matters Person shall be under any liability to
any Person for any registration or transfer of a Residual Certificate that is
not permitted by this Subsection 5.05(b) or for making payments due on such
Residual Certificate to the purported Holder thereof or taking any other action
with respect to such purported Holder under the provisions of this Agreement so
long as the written affidavit referred to above was received with respect to
such transfer, and the Tax Matters Person, the Seller or the Trustee, as
applicable, had no actual knowledge, that it was untrue. The prior Holder shall
be entitled to recover from any purported Holder of a Residual Certificate that
was in fact not a permitted transferee under this Subsection 5.05(b) at the time
it became a Holder all payments made on such Residual Certificate. Each Holder
of a Residual Certificate, by acceptance thereof, shall be deemed for all
purposes to have consented to the provisions of this Subsection 5.05(b) and to
any amendment of this Agreement deemed necessary (whether as a result of new
legislation or otherwise) by counsel of the Tax Matters Person or the Seller to
ensure that the Residual Certificate is not transferred to a Disqualified
Organization and that any transfer of such Residual Certificate will not cause
the imposition of a tax upon the Trust or cause REMIC I or REMIC II to fail to
qualify as a REMIC.

          (c) Unless the Tax Matters Person and the Seller shall have consented
in writing (which consent may be withheld in such person's sole discretion), the
Residual Certificate (including a beneficial interest therein) may not be
purchased by or transferred to any person who is not a "United States person,"
as such term is defined in Section 7701(a)(30) of the Code.

          (d) By accepting a Residual Certificate, the purchaser thereof agrees
to be a Tax Matters Person, and appoints the Trustee to act as its agent with
respect to all matters concerning the tax obligations of the Trust, other than
those matters regarding transfer restrictions contained in this Section 5.05.

          Section 5.06. RESTRICTIONS ON TRANSFERABILITY OF PRIVATE CERTIFICATES.
(a) No offer, sale, transfer or other disposition (including pledge) of a
Private Certificate shall be made by any Holder thereof unless registered under
the Securities Act, or an exemption from the registration requirements of the
Securities Act and any applicable state securities or "Blue Sky" laws is
available and the prospective transferee (other than the Seller) of such
Certificate signs and delivers to the Trustee an Investment Letter, if the
transferee is an Institutional Accredited Investor, in the form set forth as
Exhibit F-1 hereto, or a Rule 144A Certificate, if the transferee is a QIB, in
the form set forth as Exhibit F-2 hereto. Notwithstanding the provisions of the
immediately preceding sentence, no restrictions shall apply with respect to the
transfer or registration of transfer of a beneficial interest in a Physical
Certificate that is a Global Certificate of a Class to a transferee that takes
delivery in the form of a beneficial interest in the Global Certificate of such
Class provided that each such transferee shall be deemed to have made such
representations and warranties contained in the Rule 144A Certificate as are
sufficient to establish that it is a QIB. In the case of a proposed transfer of
a Private Certificate to a transferee other than a QIB, the Trustee may require
an Opinion of Counsel that such transaction is exempt from the registration
requirements of the Securities Act. The cost of such opinion shall not be an
expense of the Trustee or the Trust Fund.

          (b) Each Private Certificate shall bear a Securities Legend.

          Section 5.07. ERISA RESTRICTIONS. (a) Subject to the provisions of
subsection (b), no Certificates of a Class of Individual Certificates may be
acquired directly or indirectly by, or on behalf of, an employee benefit plan or
other retirement arrangement which is subject to Title I of ERISA and/or Section
4975 of the Code (a "Plan"), unless the proposed transferee provides a
representation or certification to the Trustee substantially in the form of
Exhibit I hereto (upon which the Trustee is authorized to rely) to the effect
that the proposed transfer and/or holding of a Certificate and the servicing,
management and operation of the Trust: (i) will not result in a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code which is not
covered under an individual or class prohibited transaction exemption including
but not limited to Department of Labor Prohibited Transaction Exemption ("PTE")
84-14 (Class Exemption for Plan Asset Transactions Determined by Independent
Qualified Professional Asset Managers), PTE 91-38 (Class Exemption for Certain
Transactions Involving Bank Collective Investment Funds), PTE 90-1 (Class
Exemption for Certain Transactions Involving Insurance Company Pooled Separate
Accounts), PTE 95-60 (Class Exemption for Certain Transactions Involving
Insurance Company General Accounts) and PTCE 96-23 (Class Exemption for Plan
Asset Transactions Determined by In-House Asset Managers and (ii) will not give
rise to any additional fiduciary duties under ERISA on the part of the Master
Servicer or the Trustee.

          (b) Any Person acquiring an interest in a Book-Entry Certificate or a
Global Certificate which is a Subordinate Certificate, by acquisition of such
Certificate, shall be deemed to have represented to the Trustee that it is
either: (i) not acquiring an interest in such Certificate directly or indirectly
by, or on behalf of, an employee benefit plan or other retirement arrangement
which is subject to Title I of ERISA and/or Section 4975 of the Code, or (ii)
such Person provides a representation or certification to the Trustee to the
effect that the transfer and/or holding of an interest in such Certificate and
the servicing, management and/or operation of the Trust and its assets: (I) will
not result in any prohibited transaction which is not covered under an
individual or class prohibited transaction exemption, including, but not limited
to, PTE 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (II) will not
give rise to any additional fiduciary duties on the part of the Master Servicer
or the Trustee.

          (c) Any attempted or purported transfer of any Certificate in
violation of the provisions of Subsections (a) or (b) above shall be void AB
INITIO and such Certificate shall be considered to have been held continuously
by the prior permitted Certificateholder. Any transferor of any Certificate in
violation of such provisions, shall indemnify and hold harmless the Trustee from
and against any and all liabilities, claims, costs or expenses incurred by the
Trustee as a result of such attempted or purported transfer.

          Section 5.08. RULE 144A INFORMATION. For so long as any Private
Certificates are outstanding and are "restricted securities" within the meaning
of Rule 144(a)(3) of the Securities Act, (1) the Master Servicer will provide or
cause to be provided to any Holder of such Certificates and any prospective
purchaser thereof designated by such a Holder, upon the request of such Holder
or prospective purchaser, the information required to be provided to such Holder
or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and (2)
the Master Servicer shall update such information from time to time in order to
prevent such information from becoming false and misleading and will take such
other actions as are necessary to ensure that the safe harbor exemption from the
registration requirements of the Securities Act under Rule 144A is and will be
available for resales of such Certificates conducted in accordance with Rule
144A.

<PAGE>

                                   ARTICLE VI

                         Payments to Certificateholders

          Section 6.01. DISTRIBUTIONS ON THE CERTIFICATES. (a) On each
Distribution Date, following application of Available Funds pursuant to clauses
(i) and (ii) of Section 4.03(b), the Trustee will withdraw remaining Group 1
Available Funds and Group 2 Available Funds from the related sub-account of the
Certificate Account and distribute them, together with (i) on the Distribution
Date in November 2001, the Accrued Interest Reimbursement Amount withdrawn from
the Accrued Interest Account (to be applied pursuant to clause FIRST below) and
(ii) in the case of distributions of Group Available Funds to the Holders of the
Senior Certificates of a Senior Certificate Group, any amounts advanced by the
Certificate Insurer in respect of such Senior Certificate Group and on deposit
in the appropriate subaccount of the Certificate Account, in the following order
of priority among the Certificates:

     FIRST, to each of the Group 1 Senior Certificates and the Group 2 Senior
     Certificates, from the related Group Available Funds, Accrued Certificate
     Interest for such Senior Certificate Group for such Distribution Date and,
     on the Distribution Date in November 2001, the portion of the Accrued
     Interest Reimbursement Amount allocable to such Senior Certificate Group;

     SECOND, to each of the Group 1 Senior Certificates and the Group 2 Senior
     Certificates, from the related Group Available Funds, Accrued Certificate
     Interest for such Senior Certificate Group remaining unpaid from prior
     Distribution Dates;

     THIRD, to each of the Group 1 Senior Certificates and the Group 2 Senior
     Certificates, from the related Group Available Funds, the related Senior
     Optimal Principal Amount, in reduction of the Current Principal Amount of
     such Senior Certificate Group, until the Current Principal Amount of such
     Senior Certificate Group has been reduced to zero;

     FOURTH, on each Distribution Date on which:

          (i) the Current Principal Amount of one Senior Certificate Group has
     been reduced to zero and

          (ii) if such Distribution Date occurs on or prior to the Cross-Over
     Date, the Subordination Trigger has not been met,

     from any remaining Group Available Funds allocable to principal for such
     Senior Certificate Group (and not including any amounts advanced by the
     Certificate Insurer), to the other Senior Certificate Group, in reduction
     of the Current Principal Amount thereof, if any, until such Current
     Principal Amount has been reduced to zero;

     FIFTH, if on any Distribution Date the aggregate Current Principal Amount
     of any Senior Certificate Group, following distributions pursuant to
     clauses FIRST through FOURTH, would be greater than the aggregate Scheduled
     Principal Balance of the Mortgage Loans in the related Mortgage Loan Group
     and the Subordinate Certificates are still outstanding:

          (i) 100% of all Available Funds otherwise allocable to the Subordinate
     Certificates in respect of principal will be distributed to reduce the
     Current Principal Amount of such Senior Certificate Group until such
     Current Principal Amount equals the aggregate Scheduled Principal Balance
     of the Mortgage Loans in the related Mortgage Loan Group; and

          (ii) Accrued Certificate Interest otherwise allocable to the
     Subordinate Certificates on such Distribution Date will be reduced, if
     necessary, and distributed to such Senior Certificate Group in an amount
     equal to Accrued Certificate Interest for such Senior Certificate Group for
     such Distribution Date, calculated on the excess of the Current Principal
     Amount of such Senior Certificate Group over the aggregate Scheduled
     Principal Balance of the Mortgage Loans in the related Mortgage Loan Group.
     Any reduction in Accrued Certificate Interest allocable to the Subordinate
     Certificates will be allocated to the Subordinate Certificates in inverse
     order of their numerical class designations;

     SIXTH, to the Certificate Insurer, with respect to each of the Group 1
     Senior Certificates and the Group 2 Senior Certificates, from related Group
     Available Funds, to reimburse it for any amounts paid to such Certificate
     Group pursuant to the Certificate Insurance Policy (i) on such Distribution
     Date and (ii) on prior Distribution Dates, if unpaid, including interest on
     any such unpaid amount at the rate and as set forth in the Insurance
     Agreement;

     SEVENTH, on each Distribution Date on which:

          (i) the Current Principal Amount of one Senior Certificate Group has
     been reduced to zero and

          (ii) if such Distribution Date occurs on or prior to the Cross-Over
     Date, the Subordination Trigger has not been met,

     from any remaining Group Available Funds allocable to principal for such
     Senior Certificate Group (and not including any amounts advanced by the
     Certificate Insurer), to the Certificate Insurer, to reimburse it for
     amounts set forth in clause SIXTH above made in respect of the other Senior
     Certificate Group, if any, that remain unpaid after application of funds
     pursuant to clause SIXTH;

     EIGHTH, from any remaining Group 1 and Group 2 Available Funds, any costs,
     expenses, liabilities and indemnification of the Trustee not paid pursuant
     to Section 4.03(b), including any such costs, expenses, liabilities or
     indemnification remaining unpaid from prior Distribution Dates;

     NINTH, from any remaining Group 1 and Group 2 Available Funds, any costs,
     expenses, indemnification and liabilities of the Master Servicer not paid
     pursuant to Section 4.03(a), including any such costs, expenses,
     liabilities or indemnification remaining unpaid from prior Distribution
     Dates;

     TENTH, sequentially, in the following order, from any remaining Group 1 and
     Group 2 Available Funds, to each of the Class B-1, Class B-2, Class B-3,
     Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an
     amount equal to and in the following order:

               (1) the Accrued Certificate Interest on such Class for such
          Distribution Date,

               (2) any Accrued Certificate Interest on such Class remaining
          undistributed from previous Distribution Dates and

               (3) such Class's Allocable Share for such Distribution Date, in
          reduction of the Current Principal Amount thereof; and

     ELEVENTH, any remaining Group 1 Available Funds to the Class R-1
     Certificates, and any remaining Group 2 Available Funds to the Class R-2
     Certificates.

          (b) No Accrued Certificate Interest will be payable with respect to
any Class of Certificates after the Distribution Date on which the aggregate
outstanding Current Principal Amount of such Class of Certificates has been
reduced to zero.

          (c) Net Interest Shortfalls will be allocated among the
Certificateholders in proportion to the amount of Accrued Certificate Interest
that would have been allocated to each Certificate in the absence of any Net
Interest Shortfall.

          Section 6.02. [Reserved]

          Section 6.03. ALLOCATION OF LOSSES. (a) On or prior to each
Determination Date, the Master Servicer shall determine and report to the
Trustee the amount of any Realized Loss in respect of each Mortgage Loan that
occurred during the immediately preceding calendar month.

          (b) (A) With respect to any Determination Date, the principal portion
of each Realized Loss on a Mortgage Loan shall be allocated as follows:

               FIRST, to the Class B-6 Certificates until the Current Principal
          Amount thereof has been reduced to zero;

               SECOND, to the Class B-5 Certificates until the Current Principal
          Amount thereof has been reduced to zero;

               THIRD, to the Class B-4 Certificates until the Current Principal
          Amount thereof has been reduced to zero;

               FOURTH, to the Class B-3 Certificates until the Current Principal
          Amount thereof has been reduced to zero;

               FIFTH, to the Class B-2 Certificates until the Current Principal
          Amount thereof has been reduced to zero;

               SIXTH, to the Class B-1 Certificates until the Current Principal
          Amount thereof has been reduced to zero; and

               SEVENTH, to the Senior Certificates of each Senior Certificate
          Group, in respect of a Mortgage Loan in the related Mortgage Loan
          Group.

          (B) Notwithstanding the foregoing, no such allocation of any Realized
Loss shall be made on a Distribution Date to the extent that such allocation
would result in the reduction of the aggregate Current Principal Amounts of all
the Certificates as of such Distribution Date, after giving effect to all
distributions and prior allocations of Realized Losses on such date, to an
amount less than the aggregate Scheduled Principal Balance of the Mortgage Loans
as of the first day of the month of such Distribution Date (such limitation, the
"Loss Allocation Limitation").

          (c) Any Realized Losses allocated to a Class of Certificates pursuant
to Subsection 6.03(b) shall be allocated among the Certificates of such Class in
proportion to their respective Current Principal Amounts. Any allocation of
Realized Losses pursuant to this Subsection 6.03(c) shall be accomplished by
reducing the Current Principal Amount of the related Certificates on the related
Distribution Date in accordance with Subsection 6.03(d).

          (d) Realized Losses allocated in accordance with this Section 6.03
shall be allocated on the Distribution Date in the month following the month in
which such loss was incurred and, in the case of the principal portion thereof,
after giving effect to distributions made on such Distribution Date.

          (e) On each Distribution Date, the Trustee shall determine the
Subordinate Certificate Writedown Amount, if any. Any such Subordinate
Certificate Writedown Amount shall effect a corresponding reduction in the
Current Principal Amount of each class of Subordinate Certificates in the
reverse order of their numerical Class designations.

          (f) [Reserved]

          (g) Realized Losses on Mortgage Loans occurring on or prior to the
Cross-Over Date will not be allocated among any Senior Certificates. As a result
of the subordination of the Subordinate Certificates in right of distribution,
such Realized Losses will be borne first by the Subordinate Certificates in
inverse order of their numerical Class designations.

          Section 6.04. [Reserved]

          Section 6.05. PAYMENTS. (a) [Reserved].

          (b) On each Distribution Date, other than the final Distribution Date,
the Trustee shall distribute to each Certificateholder of record on the
immediately preceding Record Date such Certificateholder's PRO RATA share (based
on the aggregate Fractional Undivided Interest represented by such Holder's
Certificates) of all amounts required to be distributed on such Distribution
Date to its Class. The Trustee shall calculate such amounts based upon the
information provided the Master Servicer pursuant to Subsection 6.07(b).

          (c) Payment of the above amounts to each Certificateholder shall be
made (i) by check mailed to each Certificateholder entitled thereto at the
address appearing in the Certificate Register or (ii) upon receipt by the
Trustee on or before the fifth Business Day preceding the Record Date of written
instructions from a Certificateholder by wire transfer to a United States dollar
account maintained by the payee at any United States depository institution with
appropriate facilities for receiving such a wire transfer; PROVIDED, HOWEVER,
that the final payment in respect of each Class of Certificates will be made
only upon presentation and surrender of such respective Certificates at the
office or agency of the Trustee specified in the notice to Certificateholders of
such final payment.

          Section 6.06. STATEMENTS TO CERTIFICATEHOLDERS. (a) Concurrently with
each distribution to Certificateholders, the Trustee shall make available to
each Certificateholder, the Seller, the Master Servicer, the Certificate Insurer
and the Rating Agency, a statement setting forth the following information:

               (i) the Current Principal Amount of each Class of Certificates
          immediately prior to such Distribution Date;

               (ii) the amount of the distribution allocable to principal on
          each Class of Certificates;

               (iii) the aggregate amount of interest accrued at the related
          Pass-Through Rate with respect to each Class of Certificates during
          the related Interest Accrual Period;

               (iv) the Net Interest Shortfall and any other adjustments to
          interest at the related Pass-Through Rate necessary to account for any
          difference between interest accrued and aggregate interest distributed
          with respect to each Class of Certificates;

               (v) the amount of the distribution allocable to interest on each
          Class of Certificates;

               (vi) the Pass-Through Rate for each Class of Certificates with
          respect to such Distribution Date;

               (vii) the Current Principal Amount of each Class of Certificates
          after such Distribution Date;

               (viii) the amount of any Monthly Advances, Compensating Interest
          Payments and unreimbursed advances by the Master Servicer included in
          such distribution, stated separately for each Mortgage Loan Group;

               (ix) the amount of any Realized Losses (stated separately for
          each Mortgage Loan Group) during the related Prepayment Period and
          cumulatively since the Cut-off Date and the amount and source
          (separately identified) of any distribution in respect thereof
          included in such distribution;

               (x) the amount of Scheduled Principal and Principal Prepayments,
          (including the principal amount of principal prepayments, Insurance
          Proceeds, the purchase price in connection with the purchase of
          Mortgage Loans, cash deposits in connection with substitutions of
          Mortgage Loans and Net Liquidation Proceeds) with respect to each
          Mortgage Loan Group;

               (xi) the number of Mortgage Loans remaining in the Trust Fund as
          of the end of the related Due Period, stated separately for each
          Mortgage Loan Group;

               (xii) information regarding any Mortgage Loan delinquencies as of
          the end of the related Due Period, including the aggregate number,
          aggregate Outstanding Principal Balance of Mortgage Loans delinquent
          30, 60, 90 or more days, stated separately for each Mortgage Loan
          Group;

               (xiii) the number of Mortgage Loans in the foreclosure process as
          of the end of the related Due Period and the aggregate Outstanding
          Principal Balance of such Mortgage Loans, stated separately for each
          Mortgage Loan Group;

               (xiv) the number and aggregate Outstanding Principal Balance of
          all Mortgage Loans as to which the Mortgaged Property was REO Property
          as of the end of the related Due Period, stated separately for each
          Mortgage Loan Group;

               (xv) the book value (the sum of (A) the Outstanding Principal
          Balance of the Mortgage Loan, (B) accrued interest through the date of
          foreclosure and (C) foreclosure expenses) of any REO Property;
          PROVIDED THAT, in the event that such information is not available to
          the Master Servicer and the Trustee on the Distribution Date, such
          information shall be furnished promptly after it becomes available;

               (xvi) the amount of Realized Losses allocated to each Class of
          Certificates since the prior Distribution Date and in the aggregate
          for all prior Distribution Dates; and

               (xvii) the then applicable Senior Percentage for each Senior
          Certificate Group, Senior Prepayment Percentage for each Senior
          Certificate Group, Subordinate Percentage and Subordinate Prepayment
          Percentage.

          The information set forth above shall be calculated, or reported, as
the case may be, by the Trustee based solely on data provided by the Master
Servicer pursuant to Section 6.07 and, with respect to prior periods, Section
6.06, upon which the Trustee may conclusively rely. The information furnished by
the Master Servicer shall be sufficient for the Trustee to calculate any
payments or statements it is required to make.

          The Trustee may make the foregoing monthly statement (and, at its
option, any additional files containing the same information in an alternative
format) available each month to Certificateholders via the Trustee's internet
website. The Trustee's internet website shall initially be located at
"www.ctslink.com." Assistance in using the website can be obtained by calling
the Trustee's customer service desk at (301) 815-6600. Parties that are unable
to use the above distribution options are entitled to have a paper copy mailed
to them via first class mail by calling the customer service desk and indicating
such. The Trustee may change the way monthly statements are distributed in order
to make such distributions more convenient or more accessible to the above
parties.

          (b) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished upon request to each Person who at
any time during the calendar year was a Certificateholder, a statement
containing the information set forth in clauses (a)(ii) and (a)(v) of this
Section 6.06 aggregated for such calendar year or 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 as from time to time in effect.

          The Master Servicer shall supply to the Trustee in a timely manner the
information required for the statements described above which, where
appropriate, shall be the information from which the Trustee can calculate the
statements it is required to make.

          Section 6.07. REPORTS TO THE TRUSTEE. On or before the Determination
Date, the Master Servicer shall provide to the Trustee (and with respect to the
information contained in subclause (xiv) hereof, the Seller), with respect to
the Mortgage Loans in each Mortgage Loan Group and the related REO Properties,
respectively, a Loan Summary and Remittance Report in such electronic format as
the Trustee may reasonably request and in such hardcopy format as the Master
Servicer and the Trustee shall agree and containing the following information
(in respect of the REO Properties, only such information which is applicable):

               (i) Aggregate deposits to and withdrawals from the Certificate
          Account since the date of the prior statement, stated separately for
          each category of deposit specified in Section 4.02 and each category
          of withdrawal specified in Section 4.03, indicating separately the
          aggregate of amounts withdrawn which are not applicable to a
          particular Mortgage Loan;

               (ii) Amount of Group 1 Available Funds and Group 2 Available
          Funds, separately stated, expected for the related Distribution Date
          and attributable to each of the following categories with respect to
          the related Mortgage Loan Group:

                    (A) Scheduled Principal;

                    (B) Principal Prepayments (stated separately for (u) partial
               prepayments, (v) full prepayments, (w) Net Liquidation Proceeds,
               stating Liquidation Proceeds and Liquidation Expenses
               separately), (x) Insurance Proceeds, (y) the purchase price in
               connection with the purchase of a Mortgage Loan, and (z) any cash
               deposit in connection with the substitution of a Mortgage Loan;

                    (C) regularly scheduled interest on the Mortgage Loans;

                    (D) Monthly Advances made by the Master Servicer;

                    (E) Certificate Account Advances; and

                    (F) Compensating Interest Payments.

               (iii) Aggregate Outstanding Principal Balances of the Mortgage
          Loans as of the related Due Date, without giving effect to payments
          due on such date, stated separately for each Mortgage Loan Group;

               (iv) Realized Losses for the prior month and in the aggregate
          from the Closing Date;

               (v) Aggregate Scheduled Principal Balance of the Mortgage Loans
          as of the related Due Date, stated separately for each Mortgage Loan
          Group;

               (vi) Book value of any collateral acquired by means of
          foreclosure, grant of deed in lieu of foreclosure or otherwise in
          respect of any Mortgage Loan, stated separately for each Mortgage Loan
          Group;

               (vii) Number and aggregate principal balance of Mortgage Loans
          which are 30, 60, 90 and 120 or more days delinquent as calculated by
          the Master Servicer, those which are in foreclosure, those with
          respect to which the related Mortgagor has had an order for relief
          entered in connection with bankruptcy proceeding and those which are
          REO Property, stated separately for each Mortgage Loan Group;

               (viii) Interest Shortfall with respect to the related
          Distribution Date and portion thereof resulting from Voluntary
          Principal Prepayments in full or the provisions of the Relief Act,
          stated separately for each Mortgage Loan Group;

               (ix) Amount, if any, by which the aggregate of Monthly Payments
          on the Mortgage Loans that were due on the related Due Date and
          delinquent, other than as a result of the Relief Act, as of the
          Determination Date exceeds the sum of the Monthly Advances to be made
          by the Master Servicer and Certificate Account Advances for such
          Distribution Date, stated separately for each Mortgage Loan Group;

               (x) Aggregate Master Servicing Fee for the related Due Period;
          and

               (xi) Such other information regarding each Mortgage Loan,
          including, but not limited to, an updated schedule of the Scheduled
          Principal Balances of the Mortgage Loans as of the related Due Date,
          in such electronic format, as may be reasonably requested by the
          Trustee and, if requested, in such hardcopy or electronic format as
          the Master Servicer and the Trustee shall agree.

          Section 6.08. MONTHLY ADVANCES. If the Monthly Payment (together with
any advances from any Sub-Servicers) on a Mortgage Loan that was due on a
related Due Date and is delinquent other than as a result of application of the
Relief Act exceeds the amount deposited in the applicable subaccount of the
Certificate Account which will be used for a Certificate Account Advance with
respect to such Mortgage Loan, the Master Servicer will deposit in the
applicable subaccount of the Certificate Account not later than the Advancing
Date immediately preceding the related Distribution Date an amount equal to such
deficiency net of the related Master Servicing Fee for such Mortgage Loan except
to the extent the Master Servicer determines any such advance to be
nonrecoverable from Liquidation Proceeds, Insurance Proceeds or future payments
on the Mortgage Loan for which such Monthly Advance was made. Subject to the
foregoing, the Master Servicer shall continue to make such advances through the
date that the related Mortgaged Property has, in the judgment of the Master
Servicer, been completely liquidated. Any amount used as a Certificate Account
Advance shall be replaced by the Master Servicer by deposit in the applicable
subaccount of the Certificate Account on or before any future date on which and
to the extent that funds in the applicable subaccount of the Certificate Account
on such date are less than the amount required to be transferred by the Master
Servicer to such subaccount of the Certificate Account. If applicable, on the
fifth Business Day preceding each Distribution Date, the Master Servicer shall
present an Officer's Certificate to the Trustee (i) stating that the Master
Servicer elects not to make a Monthly Advance in a stated amount and (ii)
detailing the reason it deems the advance to be nonrecoverable. Notwithstanding
the foregoing, the Master Servicer shall not be obligated to make any Monthly
Advances in respect of delinquent payments of principal on Simple Interest
Loans.

          Section 6.09. COMPENSATING INTEREST PAYMENTS. The Master Servicer
shall deposit into each subaccount of the Certificate Account not later than the
Advancing Date immediately preceding the related Distribution Date an amount
equal to the lesser of (i) the aggregate amounts determined pursuant to
subclauses (a) and (b) of the definition of Interest Shortfall for the related
Mortgage Loan Group for the related Distribution Date and (ii) the Master
Servicing Fee for such Distribution Date (such amount, the "Compensating
Interest Payment"). The Master Servicer shall not be entitled to any
reimbursement of any Compensating Interest Payment. Notwithstanding the
foregoing, the Master Servicer shall not be obligated to make any Compensating
Interest Payments in respect of delinquent payments of interest on Simple
Interest Loans.

          Section 6.10. REPORTS OF FORECLOSURES AND ABANDONMENT OF MORTGAGED
PROPERTY. Each year the Master Servicer shall report or cause to be reported to
the Internal Revenue Service foreclosures and abandonments of any Mortgaged
Property as required by Section 3.12(e).

<PAGE>

                                  ARTICLE VII

                               The Master Servicer

          Section 7.01. LIABILITIES OF THE MASTER SERVICER. The Master Servicer
shall be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by it herein. Only the Master Servicer,
any successor Master Servicer or the Trustee acting as Master Servicer shall be
liable with respect to the servicing of the Mortgage Loans and the REO Property
for actions taken by any such Person in contravention of the Master Servicer's
duties hereunder.

          Section 7.02. MERGER OR CONSOLIDATION OF THE MASTER SERVICER. (a) The
Master Servicer will keep in full force and effect its existence, rights and
franchises as a corporation under the laws of the state of its incorporation,
and 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, the
Certificates or any of the Mortgage Loans and to perform its duties under this
Agreement.

          (b) Any Person into which the Master Servicer may be merged or
consolidated, or any corporation resulting from any merger or consolidation to
which the Master Servicer shall be a party, or any Person succeeding to the
business of the Master Servicer, shall be the successor of the Master Servicer
hereunder, without the execution or filing of any paper or further act on the
part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          Section 7.03. INDEMNIFICATION OF THE TRUSTEE. The Master Servicer
agrees to indemnify the Indemnified Persons for, and to hold them harmless
against, any claim, loss, liability or expense incurred on their part, arising
out of any breach by the Master Servicer of its obligations under this
Agreement, including the costs and expenses (including reasonable legal fees and
expenses) of defending themselves; provided, that with respect to any such
claim, the Trustee shall have given the Master Servicer and the Seller written
notice thereof promptly after the Trustee shall have with respect to such claim
knowledge thereof and provided further, that the failure to give any such notice
shall not affect the Master Servicer's obligation to indemnify the Indemnified
Persons hereunder except, and only to the extent that, the failure to provide
such notice materially impairs the Master Servicer's defense in respect of such
claim. The Master Servicer shall assume the defense of any claim for which an
Indemnified Person is entitled to indemnification pursuant to this Section 7.03,
and the Master Servicer shall pay all expenses in connection therewith,
including reasonable legal fees, and shall promptly pay, discharge and satisfy
any judgment or decree which may be rendered against an Indemnified Person in
respect of such claim.

          Section 7.04. LIMITATION ON LIABILITY OF THE MASTER SERVICER AND
OTHERS. Subject to the obligation of the Master Servicer to indemnify the
Indemnified Persons pursuant to Section 7.03:

          (a) Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master Servicer shall be under any liability to the
Indemnified Persons, the Seller, the Trust Fund or the Certificateholders for
taking any action or for refraining from taking any action in good faith
pursuant to this Agreement, or for errors in judgment; PROVIDED, HOWEVER, that
this provision shall not protect the Master Servicer or any such Person against
any breach of warranties or representations made herein or any liability which
would otherwise be imposed by reason of such Person's willful misfeasance, bad
faith or gross negligence in the performance of duties or by reason of reckless
disregard of obligations and duties hereunder.

          (b) The Master Servicer and any director, officer, employee or agent
of the Master Servicer may rely in good faith on any document of any kind PRIMA
FACIE properly executed and submitted by any Person respecting any matters
arising hereunder.

          (c) The Master Servicer and any director, officer, employee or agent
of the Master Servicer shall be indemnified by the Trust and held harmless
thereby against any loss, liability or expense incurred in connection with any
legal proceedings relating to this Agreement or the Certificates (including
reasonable legal fees and disbursements of counsel), other than (i) any loss,
liability or expense related to its failure to perform its duties in compliance
with this Agreement (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and (ii) any loss, liability
or expense incurred by reason of such Person's willful misfeasance, bad faith or
gross negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder. Any such indemnification shall be
payable only in the manner, and subject to the limitations set forth in,
Sections 4.03(a) and 6.01(a).

          (d) The Master Servicer shall not be under any obligation to appear
in, prosecute or defend any legal action that is not incidental to its duties
under this Agreement and that in its opinion may involve it in any expense or
liability; PROVIDED, HOWEVER, the Master Servicer 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, 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 Master Servicer shall
be entitled to be reimbursed therefor out of the Certificate Account only in the
manner, and subject to the limitations set forth in, Sections 4.03(a) and
6.01(a). Nothing in this Subsection 7.04(d) shall affect the Master Servicer's
obligation to supervise, or to take such actions as are necessary to ensure, the
servicing and administration of the Mortgage Loans pursuant to Subsection
3.01(a).

          (e) In taking or recommending any course of action pursuant to this
Agreement, unless specifically required to do so pursuant to this Agreement, the
Master Servicer shall not be required to investigate or make recommendations
concerning potential liabilities which the Trust might incur as a result of such
course of action by reason of the condition of the Mortgaged Properties but
shall give notice to the Trustee if it has notice of such potential liabilities.

          Section 7.05. MASTER SERVICER NOT TO RESIGN. Except as provided in
Section 7.07, the Master Servicer shall not resign from the obligations and
duties hereby imposed on it except upon a determination that any such duties
hereunder are no longer permissible under applicable law and such
impermissibility cannot be cured. Any such determination permitting the
resignation of the Master Servicer shall be evidenced by an Opinion of
Independent Counsel to such effect delivered to the Trustee. No such resignation
by the Master Servicer shall become effective until the Trustee or a successor
to the Master Servicer reasonably satisfactory to the Trustee and, so long as
the Senior Certificates are outstanding or any amounts are owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy, to the Certificate Insurer, shall have assumed the
responsibilities and obligations of the Master Servicer in accordance with
Section 8.02 hereof. The Trustee shall notify the Rating Agency of the
resignation of the Master Servicer.

          Section 7.06. [Reserved]

          Section 7.07. SALE AND ASSIGNMENT OF MASTER SERVICING. The Master
Servicer may sell and assign its rights and delegate its duties and obligations
in their entirety as Master Servicer under this Agreement; PROVIDED, HOWEVER,
that: (i) the purchaser or transferee accepting such assignment and delegation
(a) shall be a Person which shall be qualified to service mortgage loans for
Fannie Mae or Freddie Mac; (b) shall have a net worth of not less than
$10,000,000 (unless otherwise approved by the Rating Agency pursuant to clause
(ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced
in a writing signed by the Trustee) as having a comparable servicing ability to
that of the Master Servicer on the Closing Date; (d) so long as the Senior
Certificates are outstanding or any amounts are owed to the Certificate Insurer,
and the Certificate Insurer is not in default under the Certificate Insurance
Policy, shall be acceptable to the Certificate Insurer in its sole discretion
(as evidenced by a writing signed by the Certificate Insurer); and (e) shall
execute and deliver to the Trustee and the Certificate Insurer an agreement, in
form and substance reasonably satisfactory to the Trustee and the Certificate
Insurer, which contains an assumption by such Person of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by it as master servicer under this Agreement and any custodial
agreement from and after the effective date of such agreement; (ii) the Rating
Agency shall be given prior written notice of the identity of the proposed
successor to the Master Servicer and the Rating Agency's rating of the
Certificates in effect immediately prior to such assignment, sale and delegation
will not be downgraded, qualified or withdrawn as a result of such assignment,
sale and delegation, as evidenced by a letter to such effect delivered to the
Master Servicer and the Trustee; and (iii) the Master Servicer assigning and
selling the master servicing shall deliver to the Trustee and the Certificate
Insurer an Officer's Certificate and an Opinion of Independent Counsel, each
stating that all conditions precedent to such action under this Agreement have
been completed and such action is permitted by and complies with the terms of
this Agreement. No such assignment or delegation shall affect any liability of
the Master Servicer arising prior to the effective date thereof.

<PAGE>

                                  ARTICLE VIII

                                     Default

          Section 8.01. EVENTS OF DEFAULT. "Event of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

               (i) The Master Servicer fails to cause to be deposited in the
          Certificate Account any amount so required to be deposited pursuant to
          this Agreement, and such failure continues unremedied for a period of
          two Business Days after the date such deposit was required to be made;
          or

               (ii) The Master Servicer fails to observe or perform in any
          material respect any other covenants and agreements set forth in the
          Certificates or this Agreement to be performed by it, which covenants
          and agreements materially affect the rights of Certificateholders or,
          so long as the Senior Certificates are outstanding or any amounts are
          owed to the Certificate Insurer, and the Certificate Insurer is not in
          default under the Certificate Insurance Policy, the Certificate
          Insurer, and such failure continues unremedied for a period of 60 days
          after the date on which written notice of such failure, properly
          requiring the same to be remedied, shall have been given to the Master
          Servicer by the Trustee or to the Master Servicer and the Trustee by
          the Holders of Certificates evidencing Fractional Undivided Interests
          aggregating not less than 25% of the Trust Fund; or

               (iii) The occurrence of any of the following:

                    (A) Realized Losses since the Cut-Off Date exceed 1.75% of
               the Scheduled Principal Balance of the Mortgage Loans as of the
               Cut-Off Date;

                    (B) Realized Losses since the Cut-Off Date exceed $205,000
               and either (1) Realized Losses over any twelve-month period
               exceed 1.00% of the then-current Scheduled Principal Balance of
               the Mortgage Loans or (2) the three-month rolling average of the
               90-day delinquency rate for the Mortgage Loans exceeds 6%;

                    (C) the Master Servicer fails to maintain a net worth
               (determined in accordance with generally accepted accounting
               principles) of at least $50,000,000; or

                    (D) The Bear Stearns Companies Inc. no longer owns or
               maintains voting control over the Master Servicer and the new
               owner is not acceptable to the Certificate Insurer in its sole
               discretion; or

               (iv) There is entered against the Master Servicer a decree or
          order by a court or agency or supervisory authority having
          jurisdiction in the premises for the appointment of a conservator,
          receiver or liquidator in any insolvency, readjustment of debt,
          marshaling of assets and liabilities or similar proceedings, or for
          the winding up or liquidation of its affairs, and the continuance of
          any such decree or order is unstayed and in effect for a period of 60
          consecutive days, or an involuntary case is commenced against the
          Master Servicer under any applicable insolvency or reorganization
          statute and the petition is not dismissed within 60 days after the
          commencement of the case; or

               (v) The Master Servicer consents to the appointment of a
          conservator or receiver or liquidator in any insolvency, readjustment
          of debt, marshaling of assets and liabilities or similar proceedings
          of or relating to the Master Servicer or substantially all of its
          property; or the Master Servicer admits in writing its inability to
          pay its debts generally as they become due, files a petition to take
          advantage of any applicable insolvency or reorganization statute,
          makes an assignment for the benefit of its creditors, or voluntarily
          suspends payment of its obligations; or

               (vi) The Master Servicer assigns or delegates its duties or
          rights under this Agreement in contravention of the provisions
          permitting such assignment or delegation under Sections 7.05 or 7.07.

In each and every such case, so long as such Event of Default with respect to
the Master Servicer shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% of the principal of the Trust Fund or, on the occurrence of an
Event of Default set forth in clause (iii) above, the Certificate Insurer (so
long as the Senior Certificates are outstanding or any amounts are owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy), by notice in writing to the Master Servicer (and
to the Trustee if given by such Certificateholders or the Certificate Insurer),
with a copy to the Rating Agency, may terminate all of the rights and
obligations (but not the liabilities) of the Master Servicer under this
Agreement and in and to the Mortgage Loans and/or the REO Property serviced by
the Master Servicer and the proceeds thereof. Upon the receipt by the Master
Servicer of the written notice, all authority and power of the Master Servicer
under this Agreement, whether with respect to the Certificates, the Mortgage
Loans, REO Property or under any other related agreements, including the
Sub-Servicing Agreements (but only to the extent that such other agreements
relate to the Mortgage Loans or REO Property) shall, subject to Section 8.02,
automatically and without further action pass to and be vested in the Trustee
pursuant to this Section 8.01; and, without limitation, the Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the Master
Servicer as attorney-in-fact or otherwise, any and all documents and other
instruments and 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 Mortgage Loans and
related documents, or otherwise. The Master Servicer agrees to cooperate with
the Trustee in effecting the termination of the Master Servicer's rights and
obligations hereunder, including, without limitation, the transfer to the
Trustee of (i) the property and amounts which are then or should be part of the
Trust or which thereafter become part of the Trust; (ii) originals or copies of
all documents of the Master Servicer reasonably requested by the Trustee to
enable it to assume the Master Servicer's duties thereunder; and (iii) the
rights and obligations of the Master Servicer under any Sub-Servicing Agreements
with respect to the Mortgage Loans. In addition to any other amounts which are
then, or, notwithstanding the termination of its activities under this
Agreement, may become payable to the Master Servicer under this Agreement, the
Master Servicer shall be entitled to receive, out of any amount received on
account of a Mortgage Loan or REO Property, that portion of such payments which
it would have received as reimbursement pursuant to Section 3.14 if notice of
termination had not been given. The termination of the rights and obligations of
the Master Servicer shall not affect any obligations incurred by the Master
Servicer prior to such termination. Notwithstanding the foregoing, so long as
the Senior Certificates are outstanding or any amounts are owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy, the Certificate Insurer shall have the right,
within 90 days following termination of the Master Servicer and assumption of
the duties of the Master Servicer by the Trustee, to appoint a successor
servicer other than the Trustee.

          Section 8.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR. (a) Upon the
receipt by the Master Servicer of a notice of termination pursuant to Section
8.01 or an Opinion of Independent Counsel pursuant to Section 7.05 to the effect
that the Master Servicer is legally unable to act or to delegate its duties to a
Person which is legally able to act, the Trustee shall automatically become the
successor in all respects to the Master Servicer in its capacity under this
Agreement and the transactions set forth or provided for herein and shall
thereafter be subject to all the responsibilities, duties, liabilities and
limitations on liabilities relating thereto placed on the Master Servicer by the
terms and provisions hereof; PROVIDED, HOWEVER, that (i) it is understood and
agreed by the parties hereto that there will be a period of transition (not to
exceed 90 days) before the servicing transfer from the Master Servicer to the
Trustee shall be fully effected and (ii) the Trustee (a) shall be under no
obligation to purchase any Mortgage Loan pursuant to Section 10.01; and (b)
shall have no obligation whatsoever with respect to any liability incurred by
the Master Servicer (other than to make advances deemed recoverable and not
previously made) at or prior to the time of receipt by the Master Servicer of
such notice or by the Trustee of such Opinion of Independent Counsel. As
compensation therefor, the Trustee shall be entitled to all funds relating to
the Mortgage Loans which the Master Servicer would have been entitled to retain
if the Master Servicer had continued to act hereunder, except for those amounts
due the Master Servicer as reimbursement for advances previously made or
expenses previously incurred. Notwithstanding the above, if the Certificate
Insurer has not appointed a successor servicer within 90 days after assumption
of the Trustee of the duties of the Master Servicer, the Trustee may, if it
shall be unwilling so to act, or shall, if it is legally unable so to act,
appoint or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution which is a Fannie Mae or
Freddie Mac-approved servicer, and with respect to a successor to the Master
Servicer only, having a net worth of not less than $10,000,000, as the successor
to the Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder.
Pending appointment of a successor to the Master Servicer hereunder, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may, with the consent of the Certificate
Insurer (so long as the Senior Certificates are outstanding or any amounts are
owed to the Certificate Insurer pursuant to the Certificate Insurance Policy,
and the Certificate Insurer is not in default thereunder), make such
arrangements for the compensation of such successor out of payments on the
Mortgage Loans as it and such successor shall agree; PROVIDED, HOWEVER, that no
such compensation shall be in excess of that permitted the Trustee under this
Subsection 8.02(a), and that such successor shall undertake and assume the
obligations of the Trustee to pay compensation to any third Person acting as an
agent or independent contractor in the performance of master servicing
responsibilities hereunder. The Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. So long as the Senior Certificates are outstanding or any
amounts are owed to the Certificate Insurer, and the Certificate Insurer is not
in default under the Certificate Insurance Policy, the Certificate Insurer must
provide prior written approval of the appointment of any such successor
servicer. The costs and expenses of the Trustee in connection with the
termination of the Master Servicer, appointment of a successor servicer and
transfer of servicing, to the extent not paid by the terminated Master Servicer,
will be paid out of the Certificate Account, subject to the limitations and as
set forth in Sections 4.03(b) and 6.01(a).

          (b) If the Trustee shall succeed to any duties of the Master Servicer
respecting the Mortgage Loans as provided herein, it shall do so in a separate
capacity and not in its capacity as Trustee and, accordingly, the provisions of
Article IX shall be inapplicable to the Trustee in its duties as the successor
to the Master Servicer in the servicing of the Mortgage Loans (although such
provisions shall continue to apply to the Trustee in its capacity as Trustee);
the provisions of Article VII, however, shall apply to it in its capacity as
successor master servicer.

          Section 8.03. NOTIFICATION TO CERTIFICATEHOLDERS. Upon any termination
or appointment of a successor to the Master Servicer, the Trustee shall give
prompt written notice thereof to Certificateholders at their respective
addresses appearing in the Certificate Register and to the Rating Agency.

          Section 8.04. WAIVER OF DEFAULTS. The Trustee shall transmit by mail
to all Certificateholders and the Certificate Insurer, within 60 days after the
occurrence of any Event of Default known to the Trustee, unless such Event of
Default shall have been cured, notice of each such Event of Default hereunder
known to the Trustee. The Holders of Certificates evidencing Fractional
Undivided Interests aggregating not less than 51% of the Trust Fund may, on
behalf of all Certificateholders, waive any default by the Master Servicer in
the performance of its obligations hereunder and the consequences thereof,
except a default in the making of or the causing to be made any required
distribution on the Certificates. Upon any such waiver of a past default, such
default shall be deemed to cease to exist, and any Event of Default arising
therefrom shall be deemed to have been timely remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other default or
impair any right consequent thereon except to the extent expressly so waived.
The Master Servicer shall give notice of any such waiver to the Rating Agency.

          Section 8.05. LIST OF CERTIFICATEHOLDERS. Upon written request of
three or more Certificateholders of record, for purposes of communicating with
other Certificateholders with respect to their rights under this Agreement, the
Trustee will afford such Certificateholders access during business hours to the
most recent list of Certificateholders held by the Trustee.

<PAGE>

                                   ARTICLE IX

                             Concerning the Trustee

          Section 9.01. DUTIES OF TRUSTEE. (a) The Trustee, prior to the
occurrence of an Event of Default and after the curing or waiver 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 as duties of the
Trustee. If an Event of Default has occurred and 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 person would exercise under the circumstances in the conduct of his own
affairs.

          (b) Upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments which are specifically
required to be furnished to the Trustee pursuant to any provision of this
Agreement, the Trustee shall examine them to determine whether they are in the
form required by this Agreement; PROVIDED, HOWEVER, that the Trustee shall not
be responsible for the accuracy or content of any resolution, certificate,
statement, opinion, report, document, order or other instrument furnished by the
Master Servicer hereunder, and PROVIDED FURTHER, that the Trustee shall have no
obligation to verify or recalculate any information provided therein.

          (c) The Trustee shall make monthly distributions and the final
distribution to the Certificateholders from funds in the Certificate Account as
provided in Sections 4A.01, 6.01 and 10.01 herein based on the applicable
monthly reports.

          (d) 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 to the Trustee and conforming
          to the requirements of this Agreement;

               (ii) The Trustee shall not be 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 liable with respect to any action
          taken, suffered or omitted to be taken by it in good faith in
          accordance with the directions of the Holders of Certificates
          evidencing Fractional Undivided Interests aggregating not less than
          51% of the Trust Fund (or if a higher percentage is specified herein
          for direction by the Holders, such higher percent) or, where
          applicable, of the Certificate Insurer given in accordance with this
          Agreement, if such action or non-action relates to the time, method
          and place of conducting any proceeding for any remedy available to the
          Trustee, or exercising any trust or other power conferred upon the
          Trustee, under this Agreement; and

               (iv) The Trustee shall not be required to take notice or be
          deemed to have notice or knowledge of any default or Event of Default
          unless a Responsible Officer of the Trustee's corporate trust
          department shall have actual knowledge thereof. In the absence of such
          notice, the Trustee may conclusively assume there is no such default
          or Event of Default.

               (v) The Trustee shall not in any way be liable by reason of any
          insufficiency in any Account held by or in the name of Trustee unless
          it is determined by a court of competent jurisdiction that the
          Trustee's gross negligence or willful misconduct was the primary cause
          of such insufficiency (except to the extent that the Trustee is
          obligor and has defaulted thereon);

               (vi) Anything in this Agreement to the contrary notwithstanding,
          in no event shall the Trustee be liable for special, indirect or
          consequential loss or damage of any kind whatsoever (including but not
          limited to lost profits), even if the Trustee has been advised of the
          likelihood of such loss or damage and regardless of the form of
          action; and

               (vii) None of the Master Servicer, the Seller, the Certificate
          Insurer or the Trustee shall be responsible for the acts or omissions
          of the others, it being understood that this Agreement shall not be
          construed to render them partners, joint venturers or agents of one
          another.

          The Trustee shall not be required to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of, any
of the obligations of the Master Servicer under this Agreement, except during
such time, if any, as the Trustee shall be the successor to, and be vested with
the rights, duties, powers and privileges of, the Master Servicer in accordance
with the terms of this Agreement.

          (e) All funds received by the Trustee and required to be deposited in
the Certificate Account pursuant to this Agreement will be promptly so deposited
by the Trustee.

          (f) Except for those actions that the Trustee is required to take
hereunder and following an Event of Default and before its cure or waiver, the
Trustee shall have no obligation or liability to take any action or to refrain
from taking any action hereunder in the absence of written direction as provided
in this Agreement.

          Section 9.02. CERTAIN MATTERS AFFECTING THE TRUSTEE. Except as
otherwise provided in Section 9.01:

               (i) The Trustee may rely and shall be protected in acting or
          refraining from acting in reliance on any resolution, Officer's
          Certificate, certificate of a Servicing Officer, 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 with
          respect to 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, other than its
          obligation to give notices pursuant to 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 of which a
          Responsible Officer of the Trustee's corporate trust department has
          actual knowledge (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 skill in their exercise, as a prudent person would
          exercise under the circumstances in the conduct of his own affairs;

               (iv) The Trustee shall not be 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 or waiver 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 to do so by Holders of Certificates evidencing Fractional
          Undivided Interests aggregating not less than 25% of the Trust Fund
          and provided that 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,
          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 taking
          any such action. The reasonable expense of every such examination
          shall be paid by the Certificateholders requesting the investigation;

               (vi) The Trustee may execute any of the trusts or powers
          hereunder or perform any duties hereunder either directly or through
          agents or attorneys; PROVIDED, HOWEVER, that the Trustee may not
          appoint any agent to perform its custodial or paying agent functions
          under this Agreement without the express written consent of the Master
          Servicer, which consent will not be unreasonably withheld. The Trustee
          shall not be liable or responsible for the misconduct or negligence of
          any of the Trustee's agents or attorneys or a custodian or paying
          agent appointed hereunder if and only if such appointment was made by
          the Trustee with due care, with the prior written approval of the
          Certificate Insurer, and, when required, with the consent of the
          Master Servicer;

               (vii) Should the Trustee deem the nature of any action required
          on its part, other than a payment or transfer under Subsection 4.02(b)
          or Section 4.03, to be unclear, the Trustee may require prior to such
          action that it be provided by the Master Servicer with reasonable
          further instructions;

               (viii) The right of the Trustee to perform any discretionary act
          enumerated in this Agreement shall not be construed as a duty, and the
          Trustee shall not be accountable for other than its negligence or
          willful misconduct in the performance of any such act;

               (ix) The Trustee shall not be required to give any bond or surety
          with respect to the execution of the trust created hereby or the
          powers granted hereunder;

               (x) The Trustee shall have no duty to conduct any affirmative
          investigation as to the occurrence of any condition requiring the
          repurchase of any Mortgage Loan by the Seller pursuant to this
          Agreement or the eligibility of any Mortgage Loan for purposes of this
          Agreement; and

               (xi) To the extent the Trustee has not received a required
          remittance from the Master Servicer on or prior to a Distribution
          Date, it shall not be required to make the distribution provided for
          in Section 6.01 until it has received such funds.

          Section 9.03. TRUSTEE NOT LIABLE FOR CERTIFICATES OR MORTGAGE LOANS.
The recitals contained herein and in the Certificates (other than the signature
and countersignature of the Trustee on the Certificates) shall be taken as the
statements of the Seller, and the Trustee shall have no responsibility for their
correctness. The Trustee makes no representation as to the validity or
sufficiency of the Certificates (other than the signature and countersignature
of the Trustee on the Certificates) or of any Mortgage Loan except as expressly
provided in Sections 2.02 and 2.05 hereof. The Trustee's signature and
countersignature (or countersignature of its agent) on the Certificates shall be
solely in its capacity as Trustee and shall not constitute the Certificates an
obligation of the Trustee in any other capacity. The Trustee shall not be
accountable for the use or application by the Seller of any of the Certificates
or of the proceeds of such Certificates, or for the use or application of any
funds paid to the Seller with respect to the Mortgage Loans. Subject to the
provisions of Section 2.05, the Trustee shall not be responsible for the
legality or validity of this Agreement or any document or instrument relating to
this Agreement, the validity of the execution of this Agreement or of any
supplement hereto or instrument of further assurance, or the validity, priority,
perfection or sufficiency of the security for the Certificates issued hereunder
or intended to be issued hereunder. The Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Mortgage or any Mortgage Loan, or the perfection and
priority of any Mortgage or the maintenance of any such perfection and priority,
or for or with respect to the sufficiency of the Trust Fund or its ability to
generate the payments to be distributed to Certificateholders, under this
Agreement. The Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to record this Agreement.

          Section 9.04. TRUSTEE MAY OWN CERTIFICATES. The Trustee in its
individual capacity or in any capacity other than as Trustee hereunder may
become the owner or pledgee of any Certificates with the same rights it would
have if it were not Trustee, and may otherwise deal with the parties hereto.

          Section 9.05. TRUSTEE'S FEES AND EXPENSES. (a) The Trustee will be
entitled to net earnings on Permitted Investments of funds in the Certificate
Account. The Trust Fund will be liable for the Trustee's expenses, including all
reasonable out-of-pocket expenses, disbursements and advances incurred or made
by the Trustee in the administration of the trusts hereunder (including the
reasonable compensation, expenses and disbursements of its counsel) except any
such expense, disbursement or advance as may arise from its negligence or
intentional misconduct or which is the responsibility of the Certificateholders
or the Master Servicer hereunder. Such expenses shall only be payable, on each
Distribution Date, as set forth in Sections 4.03(b) and 6.01(a). Such
compensation and reimbursement obligation shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust.

          (b) To the extent not otherwise indemnified against by the Master
Servicer hereunder, the Trust shall indemnify the Indemnified Persons for, and
will hold them harmless against, any loss, liability or expense incurred on
their part, arising out of, or in connection with, this Agreement and the
Certificates, including the costs and expenses (including reasonable legal fees
and expenses) of defending themselves against any such claim other than (i) any
loss, liability or expense related to such Indemnified Person's failure to
perform such Indemnified Person's duties in strict compliance with this
Agreement (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement) and (ii) any loss, liability or expense
incurred by reason of such Indemnified Person's willful misfeasance, bad faith
or negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder. Such indemnification shall only
be payable, on each Distribution Date, as set forth in Sections 4.03(b) and
6.01(a). This indemnity shall survive the resignation or removal of the Trustee
and the termination of this Agreement. Section 9.06. ELIGIBILITY REQUIREMENTS
FOR TRUSTEE. The Trustee and any successor Trustee shall during the entire
duration of this Agreement be a state bank or trust company or a national
banking association 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 and undivided profits of at
least $40,000,000 or, in the case of a successor Trustee, $50,000,000, subject
to supervision or examination by federal or state authority and, in the case of
a successor Trustee other than pursuant to Section 9.10, rated in one of the
three highest long-term debt categories of, or otherwise acceptable to, each of
the Rating Agency. The Trustee shall not be an Affiliate of the Master Servicer,
unless the Trustee acts as successor Master Servicer hereunder. If the Trustee
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 9.06 the combined capital and surplus of such
corporation shall be deemed to be its total equity capital (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 9.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 9.08.

          Section 9.07. INSURANCE. The Trustee, at its own expense, shall at all
times maintain and keep in full force and effect: (i) fidelity insurance, (ii)
theft of documents insurance and (iii) forgery insurance (which may be
collectively satisfied by a "Financial Institution Bond" and/or a "Bankers'
Blanket Bond"). All such insurance shall be in amounts, with standard coverage
and subject to deductibles, as are customary for insurance typically maintained
by banks which act as custodians for investor-owned mortgage pools. A
certificate of an officer of the Trustee as to the Trustee's compliance with
this Section 9.07 shall be furnished to the Master Servicer or any
Certificateholder upon reasonable written request.

          Section 9.08. RESIGNATION AND REMOVAL OF THE TRUSTEE. (a) The Trustee
may at any time resign and be discharged from the Trust hereby created by giving
written notice thereof to the Master Servicer and the Certificate Insurer, with
a copy to the Rating Agency. Upon receiving such notice of resignation, the
Master Servicer shall promptly appoint a successor Trustee by written
instrument, in triplicate, one copy of which instrument shall be delivered to
each of the resigning Trustee and 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, 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 9.06 and shall fail to resign after
written request therefor by the Master Servicer or if at any time the Trustee
shall become incapable of acting, or shall be adjudged a 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
Master Servicer shall be entitled to remove the Trustee and appoint a successor
Trustee by written instrument, in triplicate, one copy of which instrument shall
be delivered to each of the Trustee so removed and the successor Trustee.

          (c) The Holders of Certificates evidencing Fractional Undivided
Interests aggregating not less than 51% of the Trust Fund 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
each of the Master Servicer, the Trustee so removed and the successor so
appointed.

          (d) No resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 9.08 shall
become effective except upon appointment of and acceptance of such appointment
by the successor Trustee as provided in Section 9.09. So long as the Senior
Certificates are outstanding or any amounts are owed to the Certificate Insurer,
and the Certificate Insurer is not in default under the Certificate Insurance
Policy, the Certificate Insurer shall have the right to (i) remove the Trustee,
upon material breach by the Trustee of any obligation or covenant of the Trustee
pursuant to this Agreement (after the expiration of any applicable cure period)
and direct the appointment of a successor Trustee and (ii) upon resignation or
removal of the Trustee, approve the appointment of any successor Trustee.

          Section 9.09. SUCCESSOR TRUSTEE. (a) Any successor Trustee appointed
as provided in Section 9.08 shall execute, acknowledge and deliver to the Master
Servicer and to its predecessor Trustee an instrument accepting such appointment
hereunder. The resignation or removal of the predecessor Trustee shall then
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 like effect as if originally
named as Trustee herein. The predecessor Trustee shall after payment of its
outstanding fees and expenses promptly deliver to the successor Trustee all
assets and records of the Trust held by it hereunder, and the Master Servicer
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 9.09 unless at the time of such acceptance such successor Trustee shall
be eligible under the provisions of Section 9.06.

          (c) Upon acceptance of appointment by a successor Trustee as provided
in this Section 9.09, the successor Trustee shall mail notice of the succession
of such Trustee hereunder to all Certificateholders at their addresses as shown
in the Certificate Register and to the Rating Agency. The Master Servicer shall
pay the cost of any mailing by the successor Trustee.

          Section 9.10. MERGER OR CONSOLIDATION OF TRUSTEE. Any state bank or
trust company or national banking association into which the Trustee may be
merged or converted or with which it may be consolidated or any state bank or
trust company or national banking association resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any state
bank or trust company or national banking association succeeding to all or
substantially all of the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such state bank or trust company or
national banking association shall be eligible under the provisions of Section
9.06. Such succession shall be valid 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.

          Section 9.11. 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 or property constituting the same may at the time be located, the Master
Servicer 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 and the Master Servicer 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, and to vest in such Person or Persons, in such capacity, such
title to the Trust, or any part thereof, and, subject to the other provisions of
this Section 9.11, such powers, duties, obligations, rights and trusts as the
Master Servicer and the Trustee may consider necessary or desirable. So long as
the Senior Certificates are outstanding or any amounts are owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy, the Certificate Insurer shall have the right to
approve the appointment of any co-trustee or separate trustee.

          (b) If the Master Servicer shall not have joined in such appointment
within 15 days after the receipt by it of a written request so to do, or in case
an Event of Default with respect to the Master Servicer shall have occurred and
be continuing, the Trustee shall have the power to make such appointment without
the Master Servicer.

          (c) No co-trustee or separate trustee hereunder shall be required to
meet the terms of eligibility as a successor Trustee under Section 9.06
hereunder and no notice to Certificateholders of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 9.08
hereof.

          (d) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 9.11, all rights, powers, duties and obligations
conferred or imposed upon the Trustee and required to be conferred on such
co-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 Master
Servicer 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 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.

          (e) 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 IX. 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.

          (f) To the extent not prohibited by law, any separate trustee or
co-trustee may, at any time, request the Trustee, its agent or attorney-in-fact,
with full power and authority, to do any lawful act under or with respect to
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.

          (g) No trustee under this Agreement shall be personally liable by
reason of any act or omission of another trustee under this Agreement. The
Master Servicer and the Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee, except that
following the occurrence of any Event of Default which has not been cured, the
Trustee acting alone may accept the resignation of or remove any separate
trustee or co-trustee.

          Section 9.12. MASTER SERVICER SHALL PROVIDE INFORMATION AS REASONABLY
REQUIRED. The Master Servicer shall furnish to the Trustee and the Certificate
Insurer, during the term of this Agreement, such periodic, special, or other
reports or information (and in such electronic format or other means acceptable
to the Trustee or the Certificate Insurer, as the case may be) as may reasonably
be requested by either the Trustee or the Certificate Insurer in order to
fulfill its duties and obligations under this Agreement.

          Section 9.13. FEDERAL INFORMATION RETURNS AND REPORTS TO
CERTIFICATEHOLDERS. (a) For Federal income tax purposes, the taxable year of
each of REMIC I and REMIC II shall be a calendar year and the Trustee shall
maintain or cause the maintenance of the books of each of REMIC I and REMIC II
on the accrual method of accounting.

          (b) The Trustee shall prepare and file or cause to be filed with the
Internal Revenue Service Federal tax information returns with respect to each of
REMIC I and REMIC II, the Trust Fund, if applicable, and the Certificates
containing such information and at the times and in the manner as may be
required by the Code or applicable Treasury regulations, and shall furnish to
each Holder of Certificates at any time during the calendar year for which such
returns or reports are made such statements or information at the times and in
the manner as may be required thereby. The Trustee shall apply for an employer
identification number with the Internal Revenue Service via a Form SS-4 or other
comparable method for each REMIC that is or becomes a taxable entity. In
connection with the foregoing, the Trustee shall provide the name and address of
the person who can be contacted to obtain information required to be reported to
the holders of regular interests in each of REMIC I and REMIC II (the "REMIC
Reporting Agent") to the extent required by IRS Form 8811. The Trustee shall
make the elections to treat each of the REMIC I and REMIC II as a REMIC (which
election shall apply to the taxable period ending December 31, 2001 and each
calendar year thereafter) in such manner as the Code or applicable Treasury
regulations may prescribe. The Trustee shall sign all tax information returns
filed pursuant to this Section and any other returns as may be required by the
Code, and in doing so shall rely entirely upon, and shall have no liability for
information provided by, or calculations provided by, the Seller or the Master
Servicer. The Holder of each of the Class R-1 and Class R-2 Certificates is
hereby designated as the "Tax Matters Person" (within the meaning of Treas. Reg.
ss.ss. 1.860F-4(d)) for REMIC I and REMIC II, respectively. The Trustee is
hereby designated and appointed as the agent of each such Tax Matters Person.
Any Holder of a Residual Certificate will by acceptance thereof appoint the
Trustee as agent and attorney-in-fact for the purpose of acting as Tax Matters
Person for the related REMIC during such time as the Trustee does not own any
such Residual Certificate. In the event that the Code or applicable Treasury
regulations prohibit the Trustee from signing tax or information returns or
other statements, or the Trustee from acting as Tax Matters Person (as an agent
or otherwise), the Trustee shall take whatever action that in its sole good
faith judgment is necessary for the proper filing of such information returns or
for the provision of a tax matters person, including designation of the Holder
of a Residual Certificate to sign such returns or act as tax matters person.
Each Holder of a Residual Certificate shall be bound by this Section.

          (c) The Trustee shall provide upon request such information (which
shall be provided by the Master Servicer) as required in Section 860D(a)(6)(B)
of the Code to the Internal Revenue Service, to any Person purporting to
transfer a Residual Certificate to a Person other than a transferee permitted by
Section 5.05(b), and to any regulated investment company, real estate investment
trust, common trust fund, partnership, trust, estate, organization described in
Section 1381 of the Code, or nominee holding an interest in a pass-through
entity described in Section 860E(e)(6) of the Code, any record holder of which
is not a transferee permitted by Section 5.05(b) (or which is deemed by statute
to be an entity with a disqualified member).

          (d) The Trustee shall prepare and file or cause to be filed any state
income tax returns required under Applicable State Law with respect to each of
REMIC I and REMIC II or the Trust Fund.

<PAGE>

                                   ARTICLE X

                                   Termination

          Section 10.01. TERMINATION UPON REPURCHASE BY THE SELLER OR ITS
DESIGNEE OR LIQUIDATION OF ALL MORTGAGE Loans. (a) Subject to Section 10.02, the
respective obligations and responsibilities of the Seller, the Master Servicer
and the Trustee created hereby, other than the obligation of the Trustee or the
Master Servicer to make payments to Certificateholders as hereinafter set forth
and to the Trustee, shall terminate upon:

               (i) the purchase by or at the direction of the Master Servicer of
          all Mortgage Loans and all property remaining in the Trust at a price
          equal to (a) 100% of the Outstanding Principal Balance of each
          Mortgage Loan (other than a Mortgage Loan related to REO Property) as
          of the date of repurchase, net of the principal portion of any
          unreimbursed Monthly Advances made by the Master Servicer, together
          with interest at the applicable Mortgage Rate accrued but unpaid
          through and including the last day of the month of repurchase, plus
          (b) the appraised value of any REO Property less the good faith
          estimate of the Master Servicer of liquidation expenses to be incurred
          in connection with its disposal thereof, (but not more than the
          Outstanding Principal Balance of the related Mortgage Loan, together
          with interest at the applicable Mortgage Rate accrued on that balance
          but unpaid through and including the last day of the month of
          repurchase), such appraisal to be calculated by an appraiser mutually
          agreed upon by the Seller and the Trustee at the expense of the Seller
          plus (c) all amounts owed the Certificate Insurer; or

               (ii) the later of the making of the final payment or other
          liquidation, or any advance with respect thereto, of the last Mortgage
          Loan remaining in the Trust Fund or the disposition of all property
          acquired with respect to any Mortgage Loan; PROVIDED, HOWEVER, that in
          the event that an advance has been made, but not yet recovered, at the
          time of such termination, the Person having made such advance shall be
          entitled to receive, notwithstanding such termination, any payments
          received subsequent thereto with respect to which such advance was
          made.

          (b) In no event, however, shall the Trust created hereby continue
beyond the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James, living on the date of this Agreement.

          (c) [Reserved.]

          (d) The right of the Master Servicer or its designee to repurchase all
Mortgage Loans pursuant to Section 10.01(a)(i) above shall be exercisable only
if (i) the aggregate Scheduled Principal Balance of such Mortgage Loans at the
time of any such repurchase is less than 1% of the Cut-off Date Scheduled
Principal Balance or (ii) the Seller based upon an Opinion of Counsel delivered
to the Trustee, has determined that the REMIC status of either REMIC has been
lost or that a substantial risk exists that such REMIC status will be lost for
the then-current taxable year. At any time thereafter, the Seller may elect to
terminate the Trust at any time, and upon such election, the Master Servicer or
its designee shall repurchase all the Mortgage Loans.

          (e) [Reserved].

          (f) Provided that the Trustee has received timely notice, the Trustee
shall give notice of any termination to the Certificateholders, with a copy to
the Rating Agency, upon which the Certificateholders shall surrender their
Certificates to the Trustee for payment of the final distribution and
cancellation. To the extent reasonably practical, such notice shall be given by
letter, mailed not earlier than the 15th day and not later than the 25th day of
the month next preceding the month of such final distribution, and shall specify
(i) the Distribution Date upon which final payment of the Certificates will be
made upon presentation and surrender of the Certificates at the office of the
Trustee therein designated, (ii) the amount of any such final payment and (iii)
that the Record Date otherwise applicable to such Distribution Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Trustee therein specified.

          (g) If the option of the Master Servicer to repurchase or cause the
repurchase of all Mortgage Loans under Section 10.01(a)(i) above is exercised,
the Master Servicer and/or its designee, as the case may be, shall deliver to
the Trustee for deposit in the Certificate Account, by the Business Day prior to
the applicable Distribution Date, an amount equal to the amount specified in
Section 10.01(a)(i), provided that amounts set forth in Section 10.01(a)(i)(c)
shall be paid directly to the Certificate Insurer. Upon the presentation and
surrender of the Certificates, the Trustee shall distribute an amount equal to
(i) the amount otherwise distributable to the Certificateholders (other than the
holders of the Residual Certificates) on such Distribution Date but for such
repurchase, (ii) the Current Principal Amount and any accrued but unpaid
interest at the Pass-Through Rate to the Certificateholders of each Class, and
(iii) the remainder to the Residual Certificateholders. If the Available Funds
are not sufficient to pay all of the related Certificates in full, any such
deficiency will be allocated to the outstanding Class or Classes of Subordinate
Certificates having the highest numerical designation or, if after the
Cross-Over Date, to the Senior Certificates pro rata. Upon deposit of the
required repurchase price and following such final Distribution Date, the
Trustee shall promptly release to the Master Servicer and/or its designee, as
the case may be, the Mortgage Files for the remaining Mortgage Loans, and the
Accounts shall terminate, subject to the Trustee's obligation to hold any
amounts payable to Certificateholders in trust without interest pending final
distributions pursuant to Subsection 10.01(i).

          (h) In the event that this Agreement is terminated by reason of the
payment or liquidation of all Mortgage Loans or the disposition of all property
acquired with respect to all Mortgage Loans under Subsection 10.01(a)(ii) above,
the Master Servicer shall deliver to the Trustee for deposit in the Certificate
Account all distributable amounts remaining in its Protected Account and shall
cause any Sub-Servicers to deliver to the Trustee for deposit in the Certificate
Account all distributable amounts remaining in their Protected Accounts. Upon
the presentation and surrender of the Certificates, the Trustee shall distribute
to the Certificateholders, in accordance with their respective interests, all
distributable amounts remaining in the Certificate Account, provided, that prior
to receipt by any Holder of a Subordinate Certificate of any such amounts, all
amounts due to the Certificate Insurer and the Trustee shall first have been
paid in full. Upon deposit by any Sub-Servicers of such distributable amounts
and delivery to the Trustee of an Officer's Certificate from the Master Servicer
certifying that such deposit has been made, and following such final
Distribution Date, the Trustee shall promptly release to the Master Servicer the
Mortgage Files for the remaining Mortgage Loans, and the Accounts shall
terminate, subject to the Trustee's obligation to hold any amounts payable to
the Certificateholders in trust without interest pending final distributions
pursuant to Subsection 10.01(ii).

          (i) If not all of the Certificateholders shall surrender their
Certificates for cancellation within six months after the time specified in the
above-mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice, not all the Certificates shall have been
surrendered for cancellation, the Trustee may take appropriate steps, or appoint
any agent to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Certificates, and the cost thereof shall be paid
out of the funds and other assets which remain subject to this Agreement.

          Section 10.02. ADDITIONAL TERMINATION REQUIREMENTS. (a) If the option
of the Master Servicer to repurchase all the Mortgage Loans under Subsection
10.01(a)(i) above is exercised, the Trust and REMIC I and REMIC II shall be
terminated in accordance with the following additional requirements, unless the
Trustee has been furnished with an Opinion of Counsel to the effect that the
failure of the Trust to comply with the requirements of this Section 10.02 will
not (i) result in the imposition of taxes on "prohibited transactions" as
defined in Section 860F of the Code on REMIC I or REMIC II or (ii) cause either
REMIC to fail to qualify as a REMIC at any time that any Regular Certificates
are outstanding:

               (i) within 90 days prior to the final Distribution Date, at the
          written direction of the Seller, the Trustee, as agent for the Tax
          Matters Person, shall adopt a plan of complete liquidation of the
          Trust Fund and REMIC I and REMIC II provided to it by the Seller
          meeting the requirements of a "Qualified Liquidation" under Section
          860F of the Code and any regulations thereunder;

               (ii) at or after the time of adoption of such a plan of complete
          liquidation and at or prior to the final Distribution Date, the
          Trustee shall sell for cash all of the assets of the Trust to or at
          the direction of the Seller; and

               (iii) at the time of the making of the final payment on the
          Certificates, the Trustee shall distribute or credit from the
          Certificate Account to the extent on deposit therein (or cause to be
          distributed or credited) (i) to the Certificateholders, other than the
          Holders of the Residual Certificates, the Current Principal Amount of
          the Certificates plus 30 days' interest thereon at the applicable
          Pass-Through Rate, and (ii) to the Holder of the Class R-1
          Certificate, all remaining cash on hand from REMIC I and to the Holder
          of the Class R-2 Certificate, all remaining cash on hand from REMIC II
          (other than cash retained to meet claims); and the Trust and REMIC I
          and REMIC II shall terminate at such time provided that, prior to
          receipt by any Holder of a Subordinate Certificate of any such
          amounts, all amounts due to the Certificate Insurer and the Trustee
          shall first have been paid in full.

          (b) By their acceptance of the Residual Certificates, the Holders
thereof hereby (i) agree to adopt such a plan of complete liquidation upon the
written request of the Seller and to take such action in connection therewith as
may be reasonably requested by the Seller and (ii) appoint the Seller as their
attorney-in-fact, with full power of substitution, for purposes of adopting such
a plan of complete liquidation. The Trustee shall adopt such plan of liquidation
by filing the appropriate statement on the final tax returns of the REMIC I and
REMIC II.

<PAGE>

                                   ARTICLE XI

                            Miscellaneous Provisions

          Section 11.01. INTENT OF PARTIES. The parties intend that each of
REMIC I and REMIC II shall be treated as a REMIC for federal income tax purposes
and that the provisions of this Agreement should be construed in furtherance of
this intent.

          Section 11.02. AMENDMENT. (a) This Agreement may be amended from time
to time by the Seller, the Trustee and the Master Servicer, with notice to the
Certificate Insurer but without notice to or the consent of any of the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions herein that may be defective or inconsistent with any other
provisions herein, to comply with any changes in the Code or to make any other
provisions with respect to matters or questions arising under this Agreement
which shall not be inconsistent with the provisions of this Agreement; PROVIDED,
HOWEVER, that such action shall not, as evidenced by an Opinion of Independent
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
Seller, the Trustee and the Master Servicer, with the consent of the Holders of
Certificates evidencing Fractional Undivided Interests aggregating not less than
51% of the Trust Fund or of the applicable Class or Classes if such amendment
affects only such Class or Classes, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement
(except as provided in subsection (a) above) or of modifying in any manner the
rights of the Certificateholders; PROVIDED, HOWEVER, that no such amendment
shall (i) reduce in any manner the amount of, or delay the timing of, payments
received on Mortgage Loans 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 the Holders of which are required to
consent to any such amendment, without the consent of the Holders of all
Certificates then outstanding, (iii) change the rights or obligations of the
Certificate Insurer without the Certificate Insurer's consent or (iv) cause
either REMIC I or REMIC II to fail to qualify as a REMIC for federal income tax
purposes, as evidenced by an Opinion of Independent Counsel which shall be
provided to the Trustee other than at the Trustee's expense. Notwithstanding any
other provision of this Agreement, for purposes of the giving or withholding of
consents pursuant to this Section 11.02(b), Certificates registered in the name
of or held for the benefit of the Seller, the Master Servicer or a Sub-Servicer
or any Affiliate thereof shall be entitled to vote their Fractional Undivided
Interests with respect to matters affecting such Certificates.

          (c) Promptly after the execution of any such amendment, the Trustee
shall furnish a copy of such amendment or written notification of the substance
of such amendment to each Certificateholder, with a copy to the Rating Agency
and the Certificate Insurer.

          (d) In the case of an amendment under Subsection 11.02(b) above, it
shall not be necessary for any Certificateholder, other than the Certificate
Insurer exercising the rights of a Certificateholder pursuant to Section 11.06,
to approve the particular form of such an amendment. Rather, it shall be
sufficient if such Certificateholders approve the substance of the amendment.
The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by such Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

          (e) 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, which opinion shall be an expense of
the party requesting such amendment but in any case shall not be an expense of
the Trustee, to the effect that such amendment will not (other than an amendment
pursuant to clause (ii) of, and in accordance with, Section 11.02(b)) cause the
imposition of any tax on REMIC I or REMIC II or the Certificateholders or cause
REMIC I's or REMIC II's REMIC elections to fail to qualify at any time that any
Certificates are outstanding. Further, nothing in this Agreement shall require
the Trustee to enter into an amendment without receiving an Opinion of Counsel,
satisfactory to the Trustee, that such amendment is permitted and is not
prohibited by this Agreement and that all requirements for amending this
Agreement (including any consent of the applicable Certificateholders) have been
complied with.

          Section 11.03. RECORDATION OF AGREEMENT. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public recording office or elsewhere. The Master
Servicer shall effect such recordation, at its expense upon the request in
writing of a Certificateholder, but only if such direction is accompanied by an
Opinion of Counsel (provided at the expense of the Certificateholder requesting
recordation) to the effect that such recordation would materially and
beneficially affect the interests of the Certificateholders or is required by
law.

          Section 11.04. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. (a) The
death or incapacity of any Certificateholder shall not terminate this Agreement
or the Trust, 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, nor otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

          (b) Except as expressly provided in this Agreement, no
Certificateholders shall have any right to vote or in any manner otherwise
control the operation and management of the Trust, 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 establish the Certificateholders from
time to time as partners or members of an association; nor shall any
Certificateholders be under any liability to any third Person 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, under or with respect to this Agreement against the
Seller, the Master Servicer or any successor to any such parties unless (i) such
Certificateholder previously shall have given to the Trustee a written notice of
a continuing default, as herein provided, (ii) the Holders of Certificates
evidencing Fractional Undivided Interests aggregating not less than 51% of the
Trust Fund 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 and expenses and liabilities to be incurred therein or thereby, and (iii)
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.

          (d) No one or more Certificateholders shall have any right by virtue
of any provision of this Agreement to affect the rights of any other
Certificateholders or to obtain or seek to obtain priority or preference over
any other such Certificateholder, or to enforce any right under this Agreement,
except in the manner herein provided and for the equal, ratable and common
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section 11.04, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

          Section 11.05. ACTS OF CERTIFICATEHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Certificateholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Certificateholders in person or by an agent duly appointed in writing.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is expressly required, to the Seller. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Agreement and conclusive in favor of the Trustee and the Seller,
if made in the manner provided in this Section 11.05.

          (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his or her individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his or her authority. The fact and date of the execution of any such
instrument or writing, or the authority of the individual executing the same,
may also be proved in any other manner which the Trustee deems sufficient.

          (c) The ownership of Certificates (notwithstanding any notation of
ownership or other writing on such Certificates, except an endorsement in
accordance with Section 5.02 made on a Certificate presented in accordance with
Section 5.04) shall be proved by the Certificate Register, and neither the
Trustee, the Seller, the Master Servicer nor any successor to any such parties
shall be affected by any notice to the contrary.

          (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action of the holder of any Certificate shall bind every future
holder of the same Certificate and the holder of every Certificate issued upon
the registration of transfer or exchange thereof, if applicable, or in lieu
thereof with respect to anything done, omitted or suffered to be done by the
Trustee, the Seller, the Master Servicer or any successor to any such party in
reliance thereon, whether or not notation of such action is made upon such
Certificates.

          (e) In determining whether the Holders of the requisite percentage of
Certificates evidencing Fractional Undivided Interests have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Certificates owned by the Trustee, the Seller, the Master Servicer or any
Sub-Servicer or any Affiliate thereof shall be disregarded except as otherwise
provided in Section 11.02(b) and except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Certificates which the Trustee knows
to be so owned shall be so disregarded. Certificates which have been pledged in
good faith to the Trustee, the Seller, the Master Servicer or any Sub-Servicer
or any Affiliate thereof may be regarded as outstanding if the pledgor
establishes to the satisfaction of the Trustee the pledgor's right to act with
respect to such Certificates and that the pledgor is not an Affiliate of the
Trustee, the Seller, the Master Servicer or any Sub-Servicer, as the case may
be.

          Section 11.06. CONTROL BY CERTIFICATE INSURER. So long as the Senior
Certificates are outstanding or any amounts are owed to the Certificate Insurer,
and the Certificate Insurer is not in default under the Certificate Insurance
Policy, the Certificate Insurer shall, in all cases where the Holders of the
Senior Certificates have any right to consent to or direct any action, have the
right to act in place of such Holders, such consent or direction to represent an
amount equal to the Fractional Undivided Interests represented by the Senior
Certificates.

          Section 11.07. GOVERNING LAW. THIS AGREEMENT AND THE CERTIFICATES
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO ITS CONFLICT OF LAWS RULES AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          Section 11.08. NOTICES. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at or mailed by registered
mail, return receipt requested, postage prepaid, or by recognized overnight
courier or by facsimile transmission to a number provided by the appropriate
party if receipt of such transmission is confirmed to (i) in the case of the
Seller, Structured Asset Mortgage Investments, Inc., 245 Park Avenue, New York,
New York 10167, Attention: Vice President-Servicing (but with respect to monthly
reports sent pursuant to Section 6.07(b), Attention: Lynn Lin), or to such other
address as may hereafter be furnished to the other parties hereto in writing;
(ii) in the case of the Master Servicer, EMC Mortgage Corporation., MacArthur
Ridge II, 909 Hidden Ridge Drive, Suite 200, Irving, Texas 75038, Attention:
Ralene Ruyle or such other address as may hereafter be furnished to the other
parties hereto in writing; (iii) in the case of the Trustee, at each Corporate
Trust Office, or to such other address as may hereafter be furnished to the
other parties hereto in writing; (iv) in the case of the Certificate Insurer,
MBIA Insurance Corporation, 113 King Street, Armonk, New York 10504, Attention:
Insured Portfolio Management - Structured Finance (IPM-SF) (Structured Asset
Mortgage Investments Trust 2001-4) or (v) in the case of the Rating Agency,
Moody's Investors Services, Inc., Attention: Residential Mortgage Surveillance
Group. Any notice delivered to the Seller, the Master Servicer, the Trustee or
the Certificate Insurer under this Agreement shall be effective only upon
receipt. Any notice required or permitted to be mailed to a Certificateholder,
unless otherwise provided herein, shall be given by first-class mail, postage
prepaid, at the address of such Certificateholder as shown in the Certificate
Register. Any notice so mailed within the time prescribed in this Agreement
shall be conclusively presumed to have been duly given, whether or not the
Certificateholder receives such notice.

          Section 11.09. 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 severed 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 11.10. 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.

          Section 11.11. 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.

          Section 11.12. COUNTERPARTS. This Agreement may be executed in two or
more counterparts each of which when so executed and delivered shall be an
original but all of which together shall constitute one and the same instrument.

          Section 11.13. NOTICE TO RATING AGENCY. The Trustee shall use its best
efforts to promptly provide notice to the Rating Agency with respect to each of
the following of which it has actual knowledge:

          1. Any material change or amendment to this Agreement;

          2. The occurrence of any Event of Default that has not been cured;

          3. The resignation or termination of the Master Servicer or the
Trustee;

          4. The repurchase or substitution of Mortgage Loans;

          5. The final payment to Certificateholders; and

          6. Any change in the location of the Certificate Account.

          In addition, in accordance with Section 6.06 and Section 3.16, the
Trustee and the Master Servicer, respectively, shall promptly furnish to the
Rating Agency copies of the following:

          1. Each report to Certificateholders described in Section 6.06; and

          2. Each annual independent public accountants' servicing report
received as described in Section 3.16.

          Section 11.14. THIRD PARTY BENEFICIARY. The parties hereto agree that,
so long as the Senior Certificates are outstanding or any amount is owed to the
Certificate Insurer, and the Certificate Insurer is not in default under the
Certificate Insurance Policy, the Certificate Insurer is an intended third party
beneficiary hereunder.

<PAGE>

          IN WITNESS WHEREOF, the Seller, EMC as Master Servicer and the Trustee
have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the day and year first above written.

                                     STRUCTURED ASSET MORTGAGE INVESTMENTS INC.
                                     as Seller

                                     By: /s/ Baron Silverstein
                                        -----------------------------
                                         Name:  Baron Silverstein
                                         Title: Vice President

                                     EMC MORTGAGE CORPORATION,
                                       as Master Servicer

                                     By: /s/ Jonathan E. Babkow
                                        -----------------------------
                                         Name:  Jonathan E. Babkow
                                         Title: Attorney-in-Fact

                                     WELLS FARGO BANK MINNESOTA, NATIONAL
                                     ASSOCIATION, as Trustee

                                     By: /s/ Peter A. Gobell
                                        -----------------------------
                                         Name:  Peter A. Gobell
                                         Title: Assistant Vice President

<PAGE>

Accepted and agreed
as to Sections 2.02, 2.03A and 2.04

EMC MORTGAGE CORPORATION

By: /s/ Jonathan E. Babkow
   ------------------------------
    Name:  Jonathan E. Babkow
    Title: Attorney-in-Fact

<PAGE>

Accepted and agreed
as to Section 3.20

BEAR STEARNS MORTGAGE CAPITAL CORPORATION

By: /s/ Baron Silverstein
   ------------------------------
    Name:  Baron Silverstein
    Title: Vice President

<PAGE>

STATE OF NEW YORK   )
                    )  ss.:
COUNTY OF NEW YORK  )

          On the 18th day of October, 2001 before me, a notary public in and for
said State, personally appeared Baron Silverstein, known to me to be a Vice
President of Structured Asset Mortgage Investments Inc., the corporation that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                              /s/ Kerri L. DiFiore
                              ----------------------------------------
                              Notary Public
                              No. 01DI6057334
                              Commission Expires on April 16, 2003

[Notarial Seal]

<PAGE>

STATE OF NEW YORK   )
                    )  ss.:
COUNTY OF NEW YORK  )

          On the 18th day of October, 2001 before me, a notary public in and for
said State, personally appeared Jonathan E. Babkow, known to me to be the
Attorney-in-Fact of EMC Mortgage Corporation., the corporation that executed the
within instrument, and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                              /s/ Kerri L. DiFiore
                              ----------------------------------------
                              Notary Public
                              No. 01DI6057334
                              Commission Expires on April 16, 2003

[Notarial Seal]

<PAGE>

STATE OF NEW YORK   )
                    )  ss.:
COUNTY OF NEW YORK  )

          On the 18th day of October, 2001 before me, a notary public in and for
said State, personally appeared Peter A. Gobell, known to me to be a Assistant
Vice President of Wells Fargo Bank Minnesota, National Association, that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said trust company and acknowledged to me that such
trust company executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                              /s/ Kerri L. DiFiore
                              ----------------------------------------
                              Notary Public
                              No. 01DI6057334
                              Commission Expires on April 16, 2003

[Notarial Seal]

<PAGE>
                                                                       EXHIBIT A

                              FORMS OF CERTIFICATES

                             [See pages that follow]

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THE HOLDER
OF THIS CERTIFICATE WILL HAVE THE BENEFIT OF A CERTIFICATE GUARANTY INSURANCE
POLICY ISSUED BY MBIA INSURANCE CORPORATION.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

                                             MORTGAGE PASS-THROUGH CERTIFICATES,
No.  A-1-                                                SERIES 2001-4

                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
                                     STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                                                   CUSIP No. 86358H LZ 0
<S>                                  <C>                          <C>                               <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001            CLASS                          :  A-1
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001             INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024             OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION     ("DENOMINATION")               :  $
PASS-THROUGH RATE                 :  VARIABLE                     APPROXIMATE ORIGINAL CLASS
                                                                  PRINCIPAL AMOUNT               :  $64,717,900
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc ("the Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

Interest on this Certificate will accrue during the month prior to the month in
which a Distribution Date (as hereinafter defined) occurs on the Current
Principal Amount hereof at a per annum rate equal to the weighted average of the
Net Rates of the Group 1 Mortgage Loans less the Premium Rate owed to the
Certificate Insurer. The Trustee will distribute on the 25th day of each month,
or, if such 25th day is not a Business Day, the immediately following Business
Day (each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

Distributions on this Certificate will be made by the Trustee by check mailed to
the address of the Person entitled thereto as such name and address shall appear
on the Certificate Register or, if such Person so requests by notifying the
Trustee in writing as specified in the Agreement, in immediately available funds
(by wire transfer or otherwise) to the account specified in writing by such
Person to the Trustee. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee 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 and designated in
such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                          <C>
Dated:  October 18, 2001                                     WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                               Not in its individual capacity but solely as Trustee
By_____________________________________                      By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,       AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>
     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY. THE HOLDER
OF THIS CERTIFICATE WILL HAVE THE BENEFIT OF A CERTIFICATE GUARANTY INSURANCE
POLICY ISSUED BY MBIA INSURANCE CORPORATION.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

                       MORTGAGE PASS-THROUGH CERTIFICATES,
No.  A-2-                      SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
                                       STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                                                     CUSIP No. 86358H MD 8

<S>                                   <C>                          <C>                                <C>
CUT-OFF DATE                       :  SEPTEMBER 1, 2001            CLASS                           :  A-2
FIRST DISTRIBUTION DATE            :  OCTOBER 25, 2001             INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE    :  OCTOBER 25, 2024             OF THIS CERTIFICATE
MASTER SERVICER                    :  EMC MORTGAGE CORPORATION     ("DENOMINATION")                :  $
PASS-THROUGH RATE                  :  VARIABLE                     APPROXIMATE ORIGINAL CLASS
                                                                   PRINCIPAL AMOUNT                :  $14,607,800
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc ("the Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of the Group 2 Mortgage Loans less the Premium Rate
owed to the Certificate Insurer. The Trustee will distribute on the 25th day of
each month, or, if such 25th day is not a Business Day, the immediately
following Business Day (each, a "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 Business Day of the calendar
month preceding the month of such Distribution Date, an amount equal to the
product of the Fractional Undivided Interest evidenced by this Certificate and
the amount required to be distributed to Holders of Certificates of the same
Class as this Certificate. The Assumed Final Distribution Date is the
Distribution Date immediately following the latest scheduled maturity date of
any Mortgage Loan and is not likely to be the date on which the Current
Principal Amount of this Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                       <C>
Dated:  October 18, 2001                                  WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                            Not in its individual capacity but solely as Trustee
By_____________________________________                   By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,    AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING,
MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN
ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                           MORTGAGE PASS-THROUGH CERTIFICATES,
No.  B-1-                                              SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
                                          STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                                                         CUSIP No. 86358H MA
<S>                                  <C>                          <C>                              <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001            CLASS                         :  B-1
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001             INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024             OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION     ("DENOMINATION")              :  $
PASS-THROUGH RATE                 :  VARIABLE                     APPROXIMATE ORIGINAL CLASS
                                                                  PRINCIPAL AMOUNT              :  $822,000
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Well Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of each Mortgage Loan Group weighted in proportion to
the results of subtracting from the aggregate principal balance of each Mortgage
Loan Group the current Principal Amount of the related class of Senior
Certificates. The Trustee will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                        <C>
Dated:  October 18, 2001                                   WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                             Not in its individual capacity but solely as Trustee
By_____________________________________                    By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,     AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING,
MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN
ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                         MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  B-2-                                        SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                              CUSIP NO. 86358H MB 2
<S>                                   <C>                         <C>                                <C>
CUT-OFF DATE                       :  SEPTEMBER 1, 2001           CLASS                           :  B-2
FIRST DISTRIBUTION DATE            :  OCTOBER 25, 2001            INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE    :  OCTOBER 25, 2024            OF THIS CERTIFICATE
MASTER SERVICER                    :  EMC MORTGAGE CORPORATION    ("DENOMINATION")                :  $
PASS-THROUGH RATE                  :  VARIABLE                    APPROXIMATE ORIGINAL CLASS
                                                                  PRINCIPAL AMOUNT                :  $822,000
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Well Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of each Mortgage Loan Group weighted in proportion to
the results of subtracting from the aggregate principal balance of each Mortgage
Loan Group the current Principal Amount of the related class of Senior
Certificates. The Trustee will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                        <C>
Dated:  October 18, 2001                                   WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                             Not in its individual capacity but solely as Trustee
By_____________________________________                    By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,     AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
UNLESS THE PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING,
MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN
ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                           MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  B-3-                                             SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                              CUSIP NO. 86358H MC 0
<S>                                  <C>                        <C>                                <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001          CLASS                           :  B-3
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001           INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024           OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION   ("DENOMINATION")                :  $
PASS-THROUGH RATE                 :  VARIABLE                   APPROXIMATE ORIGINAL CLASS
                                                                PRINCIPAL AMOUNT                :  $616,500
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Well Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of each Mortgage Loan Group weighted in proportion to
the results of subtracting from the aggregate principal balance of each Mortgage
Loan Group the current Principal Amount of the related class of Senior
Certificates. The Trustee will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                         <C>
Dated:  October 18, 2001                                    WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                              Not in its individual capacity but solely as Trustee
By_____________________________________                     By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,      AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1),(2)(3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL
THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A
LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) A
REPRESENTATION OR CERTIFICATION AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS
CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                          MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  B-4-                                                SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                              CUSIP NO. 86358H ME 6
<S>                                  <C>                             <C>                                <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001               CLASS                           :  B-4
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001                INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024                OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION        ("DENOMINATION")                :  $
PASS-THROUGH RATE                 :  VARIABLE                        APPROXIMATE ORIGINAL CLASS
                                                                     PRINCIPAL AMOUNT                :  $205,500
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc. (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

Interest on this Certificate will accrue during the month prior to the month in
which a Distribution Date (as hereinafter defined) occurs on the Current
Principal Amount hereof at a per annum rate equal to the weighted average of the
Net Rates of each Mortgage Loan Group weighted in proportion to the results of
subtracting from the aggregate principal balance of each Mortgage Loan Group the
current Principal Amount of the related class of Senior Certificates. The
Trustee will distribute on the 25th day of each month, or, if such 25th day is
not a Business Day, the immediately following Business Day (each, a
"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 Business Day of the calendar month preceding the month of
such Distribution Date, an amount equal to the product of the Fractional
Undivided Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the same Class as this Certificate.
The Assumed Final Distribution Date is the Distribution Date immediately
following the latest scheduled maturity date of any Mortgage Loan and is not
likely to be the date on which the Current Principal Amount of this Class of
Certificates will be reduced to zero.

Distributions on this Certificate will be made by the Trustee by check mailed to
the address of the Person entitled thereto as such name and address shall appear
on the Certificate Register or, if such Person so requests by notifying the
Trustee in writing as specified in the Agreement, in immediately available funds
(by wire transfer or otherwise) to the account specified in writing by such
Person to the Trustee. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee 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 and designated in
such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                      <C>
Dated:  October 18, 2001                                 WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                           Not in its individual capacity but solely as Trustee
By_____________________________________                  By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,   AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1),(2)(3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL
THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A
LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) A
REPRESENTATION OR CERTIFICATION AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS
CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                           MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  B-5-                                             SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                              CUSIP NO. 86358H MF 3
<S>                                  <C>                         <C>                                <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001           CLASS                           :  B-5
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001            INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024            OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION    ("DENOMINATION")                :  $
PASS-THROUGH RATE                 :  VARIABLE                    APPROXIMATE ORIGINAL CLASS
                                                                 PRINCIPAL AMOUNT                :  $164,400
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc. (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of each Mortgage Loan Group weighted in proportion to
the results of subtracting from the aggregate principal balance of each Mortgage
Loan Group the current Principal Amount of the related class of Senior
Certificates. The Trustee will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

Unless this Certificate has been countersigned by an authorized signatory of the
Trustee by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement, or be valid for any purpose.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                      <C>
Dated:  October 18, 2001                                 WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                           Not in its individual capacity but solely as Trustee
By_____________________________________                  By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,   AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     THIS CERTIFICATE IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
INVESTMENT CONDUIT" (A "REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE").

     THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF THE
CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DIFFERENT
FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE MAY
ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1),(2)(3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL
THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A
LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) A
REPRESENTATION OR CERTIFICATION AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS
CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                       MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  B-6-                                         SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                              CUSIP NO. 86358H MG 1
<S>                                  <C>                        <C>                                <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001          CLASS                           :  B-6
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001           INITIAL PRINCIPAL AMOUNT
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024           OF THIS CERTIFICATE
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION   ("DENOMINATION")                :  $
PASS-THROUGH RATE                 :  VARIABLE                   APPROXIMATE ORIGINAL CLASS
                                                                PRINCIPAL AMOUNT                :  $246,813
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of Certificates of the same Class as this
Certificate in a trust (the "Trust") consisting primarily of conventional, first
lien, fixed rate, fully amortizing or balloon payment, mortgage loans, secured
by one- to four-family residences located primarily in California and Texas
(collectively, the "Mortgage Loans"), which will be sold to the Trust by
Structured Asset Mortgage Investments Inc. ("SAMI"). The Mortgage Loans were
sold by EMC Mortgage Corporation ("EMC") in its individual capacity and as an
affiliate of SAMI and Bear, Stearns & Co. Inc. (the "Underwriter"). EMC will act
as master servicer of the Mortgage Loans (the "Master Servicer," which term
includes any successors thereto under the Agreement referred to below). The
Trust was created pursuant to the Pooling and Servicing Agreement dated as of
the Cut-off Date specified above (the "Agreement"), by and among SAMI, as
seller, EMC, as Master Servicer, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"), a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such
Holder is bound.

     Interest on this Certificate will accrue during the month prior to the
month in which a Distribution Date (as hereinafter defined) occurs on the
Current Principal Amount hereof at a per annum rate equal to the weighted
average of the Net Rates of each Mortgage Loan Group weighted in proportion to
the results of subtracting from the aggregate principal balance of each Mortgage
Loan Group the current Principal Amount of the related class of Senior
Certificates. The Trustee will distribute on the 25th day of each month, or, if
such 25th day is not a Business Day, the immediately following Business Day
(each, a "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 Business Day of the calendar month preceding
the month of such Distribution Date, an amount equal to the product of the
Fractional Undivided Interest evidenced by this Certificate and the amount
required to be distributed to Holders of Certificates of the same Class as this
Certificate. The Assumed Final Distribution Date is the Distribution Date
immediately following the latest scheduled maturity date of any Mortgage Loan
and is not likely to be the date on which the Current Principal Amount of this
Class of Certificates will be reduced to zero.

     Distributions on this Certificate will be made by the Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Trustee in writing as specified in the Agreement, in immediately
available funds (by wire transfer or otherwise) to the account specified in
writing by such Person to the Trustee. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                       <C>
Dated:  October 18, 2001                                  WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                            Not in its individual capacity but solely as Trustee
By_____________________________________                   By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,    AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN THE "REMIC ASSETS" AS DEFINED IN THE AGREEMENT REFERRED TO BELOW,
WHICH IS A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" (A "REMIC") AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE"), AND IS NOT TREATED AS INDEBTEDNESS OF THE
TRUST REFERRED TO BELOW. EACH PURCHASER OF THE INTEREST REPRESENTED BY THIS
CERTIFICATE WILL BE REQUIRED TO REPRESENT IN AN AFFIDAVIT THAT IT IS NOT A
"DISQUALIFIED ORGANIZATION" AND WILL NOT TRANSFER THIS CERTIFICATE TO A
"DISQUALIFIED ORGANIZATION." THE TERM "DISQUALIFIED ORGANIZATION" IS DEFINED IN
SECTION 860(E)(5) OF THE CODE AND IN THE AGREEMENT. EACH PURCHASER WILL ALSO BE
REQUIRED TO REPRESENT IN SUCH AFFIDAVIT THAT (A) IT IS NOT ACQUIRING
CERTIFICATES FOR THE ACCOUNT OF A DISQUALIFIED ORGANIZATION AND (B) IT WILL NOT
TRANSFER THIS CERTIFICATE UNLESS (1) IT HAS RECEIVED A SIMILAR AFFIDAVIT FROM
THE PROPOSED TRANSFEREE AND (2) AS OF THE TIME OF THE TRANSFER, IT DOES NOT HAVE
ACTUAL KNOWLEDGE THAT THE AFFIDAVIT OF THE PROPOSED TRANSFEREE IS FALSE. IN THE
EVENT THAT LEGISLATION IS ENACTED WHICH WOULD SUBJECT THE TRUST REFERRED TO
BELOW TO TAX (OR DISQUALIFY THE TRUST REFERRED TO BELOW) ON THE TRANSFER OF AN
INTEREST REPRESENTED BY THIS CERTIFICATE TO ANY OTHER PERSON OR PERSONS,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC. SHALL, WITHOUT FURTHER ACTION ON THE
PART OF THE HOLDER OF THE CLASS R-1 CERTIFICATE BE EMPOWERED, TO THE FULLEST
EXTENT POSSIBLE AND AS IF IT HAD SO VOTED, TO AMEND THE AGREEMENT REFERRED TO
BELOW TO RESTRICT OR PROHIBIT PROSPECTIVELY SUCH TRANSFER. THIS CERTIFICATE MAY
NOT BE TRANSFERRED TO A NON-U.S. PERSON AS DESCRIBED IN SECTION 5.05(C) OF THE
AGREEMENT REFERRED TO BELOW WITHOUT THE PRIOR WRITTEN CONSENT OF THE TAX MATTERS
PERSON AND STRUCTURED ASSET MORTGAGE INVESTMENTS INC.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1),(2)(3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL
THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A
LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) A
REPRESENTATION OR CERTIFICATION AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS
CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                    MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  R-1-                                          SERIES 2001-4
               EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
          TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                                  CUSIP NO. N/A
<S>                                   <C>                         <C>                          <C>
CUT-OFF DATE                       :  SEPTEMBER 1, 2001           CLASS                     :  R-1
FIRST DISTRIBUTION DATE            :  OCTOBER 25, 2001            FRACTIONAL UNDIVIDED
ASSUMED FINAL DISTRIBUTION DATE    :  OCTOBER 25, 2024            INTEREST:
MASTER SERVICER                    :  EMC MORTGAGE CORPORATION                              100%
PASS-THROUGH RATE                  :  N/A
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of the Class set forth above in a trust (the
"Trust") consisting primarily of conventional, first lien, fixed rate, fully
amortizing or balloon payment, mortgage loans, secured by one- to four-family
residences located primarily in California and Texas (collectively, the
"Mortgage Loans"), which will be sold to the Trust by Structured Asset Mortgage
Investments Inc. ("SAMI"). The Mortgage Loans were sold by EMC Mortgage
Corporation ("EMC") in its individual capacity and as an affiliate of SAMI and
Bear, Stearns & Co. Inc. (the "Underwriter"). EMC will act as master servicer of
the Mortgage Loans (the "Master Servicer," which term includes any successors
thereto under the Agreement referred to below). The Trust was created pursuant
to the Pooling and Servicing Agreement dated as of the Cut-off Date specified
above (the "Agreement"), by and among SAMI, as seller, EMC, as Master Servicer,
and Wells Fargo Bank Minnesota, National Association, as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, capitalized terms used herein
shall have the meaning ascribed to them 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 its
acceptance hereof assents and by which such Holder is bound.

     This Certificate has no principal balance and does not bear interest. The
Assumed Final Distribution Date is the Distribution Date immediately following
the latest scheduled maturity date of any Mortgage Loan and is not likely to be
the date on which the Current Principal Amount of this Class of Certificates
will be reduced to zero. Following payment in full of all other classes of
certificates except the Residual Certificates the Trustee will distribute to the
holder of this Certificate any amounts remaining in the related REMIC.

     The distribution on this Certificate will be made after due notice by the
Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                        <C>
Dated:  October 18, 2001                                   WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                             Not in its individual capacity but solely as Trustee
By_____________________________________                    By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,     AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>

               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>

     THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF, OR AN INTEREST IN,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC., EMC MORTGAGE CORPORATION OR THE
TRUSTEE REFERRED TO BELOW OR ANY OF THEIR RESPECTIVE AFFILIATES AND IS NOT
GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

     FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN THE "REMIC ASSETS" AS DEFINED IN THE AGREEMENT REFERRED TO BELOW,
WHICH IS A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" (A "REMIC") AS THOSE TERMS
ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED (THE "CODE"), AND IS NOT TREATED AS INDEBTEDNESS OF THE
TRUST REFERRED TO BELOW. EACH PURCHASER OF THE INTEREST REPRESENTED BY THIS
CERTIFICATE WILL BE REQUIRED TO REPRESENT IN AN AFFIDAVIT THAT IT IS NOT A
"DISQUALIFIED ORGANIZATION" AND WILL NOT TRANSFER THIS CERTIFICATE TO A
"DISQUALIFIED ORGANIZATION." THE TERM "DISQUALIFIED ORGANIZATION" IS DEFINED IN
SECTION 860(E)(5) OF THE CODE AND IN THE AGREEMENT. EACH PURCHASER WILL ALSO BE
REQUIRED TO REPRESENT IN SUCH AFFIDAVIT THAT (A) IT IS NOT ACQUIRING
CERTIFICATES FOR THE ACCOUNT OF A DISQUALIFIED ORGANIZATION AND (B) IT WILL NOT
TRANSFER THIS CERTIFICATE UNLESS (1) IT HAS RECEIVED A SIMILAR AFFIDAVIT FROM
THE PROPOSED TRANSFEREE AND (2) AS OF THE TIME OF THE TRANSFER, IT DOES NOT HAVE
ACTUAL KNOWLEDGE THAT THE AFFIDAVIT OF THE PROPOSED TRANSFEREE IS FALSE. IN THE
EVENT THAT LEGISLATION IS ENACTED WHICH WOULD SUBJECT THE TRUST REFERRED TO
BELOW TO TAX (OR DISQUALIFY THE TRUST REFERRED TO BELOW) ON THE TRANSFER OF AN
INTEREST REPRESENTED BY THIS CERTIFICATE TO ANY OTHER PERSON OR PERSONS,
STRUCTURED ASSET MORTGAGE INVESTMENTS INC. SHALL, WITHOUT FURTHER ACTION ON THE
PART OF THE HOLDER OF THE CLASS R-2 CERTIFICATE BE EMPOWERED, TO THE FULLEST
EXTENT POSSIBLE AND AS IF IT HAD SO VOTED, TO AMEND THE AGREEMENT REFERRED TO
BELOW TO RESTRICT OR PROHIBIT PROSPECTIVELY SUCH TRANSFER. THIS CERTIFICATE MAY
NOT BE TRANSFERRED TO A NON-U.S. PERSON AS DESCRIBED IN SECTION 5.05(C) OF THE
AGREEMENT REFERRED TO BELOW WITHOUT THE PRIOR WRITTEN CONSENT OF THE TAX MATTERS
PERSON AND STRUCTURED ASSET MORTGAGE INVESTMENTS INC.

     THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT
THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1)
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A") TO A PERSON THAT
THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE,
THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
"INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(A)(1),(2)(3) OR (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL
THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A
LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) A
REPRESENTATION OR CERTIFICATION AS TO COMPLIANCE WITH ALL APPLICABLE SECURITIES
LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS
CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS SUBJECT TO TITLE
I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, AND/OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE
PROPOSED TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT
AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY
PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS
PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23
AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL FIDUCIARY DUTIES ON THE PART OF
THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER
OF A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE EVIDENCED BY A
REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF A HOLDER OF A PHYSICAL
CERTIFICATE.

                                        MORTGAGE PASS-THROUGH CERTIFICATES,
NO.  R-2-                                            SERIES 2001-4
                             EVIDENCING A BENEFICIAL INTEREST IN THE BELOW NAMED
                    TRUST CONSISTING OF CONVENTIONAL, FIRST LIEN MORTGAGE LOANS:

<TABLE>
<CAPTION>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                                  CUSIP NO. N/A
<S>                                  <C>                         <C>                          <C>
CUT-OFF DATE                      :  SEPTEMBER 1, 2001           CLASS                     :  R-2
FIRST DISTRIBUTION DATE           :  OCTOBER 25, 2001            FRACTIONAL UNDIVIDED
ASSUMED FINAL DISTRIBUTION DATE   :  OCTOBER 25, 2024            INTEREST:
MASTER SERVICER                   :  EMC MORTGAGE CORPORATION                              100%
PASS-THROUGH RATE                 :  N/A
</TABLE>

THIS CERTIFIES THAT
is the registered owner of the Fractional Undivided Interest evidenced hereby in
the beneficial ownership interest of the Class set forth above in a trust (the
"Trust") consisting primarily of conventional, first lien, fixed rate, fully
amortizing or balloon payment, mortgage loans, secured by one- to four-family
residences located primarily in California and Texas (collectively, the
"Mortgage Loans"), which will be sold to the Trust by Structured Asset Mortgage
Investments Inc. ("SAMI"). The Mortgage Loans were sold by EMC Mortgage
Corporation ("EMC") in its individual capacity and as an affiliate of SAMI and
Bear, Stearns & Co. Inc. (the "Underwriter"). EMC will act as master servicer of
the Mortgage Loans (the "Master Servicer," which term includes any successors
thereto under the Agreement referred to below). The Trust was created pursuant
to the Pooling and Servicing Agreement dated as of the Cut-off Date specified
above (the "Agreement"), by and among SAMI, as seller, EMC, as Master Servicer,
and Wells Fargo Bank Minnesota, National Association, as trustee (the
"Trustee"), a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, capitalized terms used herein
shall have the meaning ascribed to them 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 its
acceptance hereof assents and by which such Holder is bound.

     This Certificate has no principal balance and does not bear interest. The
Assumed Final Distribution Date is the Distribution Date immediately following
the latest scheduled maturity date of any Mortgage Loan and is not likely to be
the date on which the Current Principal Amount of this Class of Certificates
will be reduced to zero. Following payment in full of all other classes of
certificates except the Residual Certificates the Trustee will distribute to the
holder of this certificate any amounts remaining in the related REMIC.

     The distribution on this Certificate will be made after due notice by the
Trustee 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 and designated in such notice.

UNLESS THIS CERTIFICATE HAS BEEN COUNTERSIGNED BY AN AUTHORIZED SIGNATORY OF THE
TRUSTEE BY MANUAL SIGNATURE, THIS CERTIFICATE SHALL NOT BE ENTITLED TO ANY
BENEFIT UNDER THE AGREEMENT, OR BE VALID FOR ANY PURPOSE.

     IN WITNESS WHEREOF, THE TRUSTEE HAS CAUSED THIS CERTIFICATE TO BE DULY
EXECUTED.

<TABLE>
<CAPTION>
<S>                                                       <C>
Dated:  October 18, 2001                                  WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
Countersigned:                                            Not in its individual capacity but solely as Trustee
By_____________________________________                   By_____________________________________
   Authorized signatory of Wells Fargo Bank Minnesota,    AUTHORIZED OFFICER
   National Association, not in its individual
   capacity but solely as Trustee
</TABLE>

<PAGE>
               STRUCTURED ASSET MORTGAGE INVESTMENTS TRUST 2001-4
                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2001-4

     This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in ten
Classes. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in the Trust formed pursuant to the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the Trust for payment hereunder and that the Trustee is
not liable to the Certificateholders for any amount payable under this
Certificate or the Agreement or, except as expressly provided in the Agreement,
subject to any liability under the Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Trustee.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Master Servicer and the rights of the Certificateholders under the Agreement
from time to time by the Master Servicer and the Trustee with the consent of the
Holders of Certificates evidencing Fractional Undivided Interests aggregating
not less than 51% (or in certain cases, Holders of Certificates of affected
Classes evidencing such percentage of the Fractional Undivided Interests
thereof). 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 lieu hereof whether or
not notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates. In certain instances the
consent of the Certificate Insurer is also required.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable with the Trustee upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in the City of Columbia, State of Maryland,
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by the Holder hereof or such Holder's
attorney duly authorized in writing, and thereupon one or more new Certificates
in authorized denominations representing a like aggregate Fractional Undivided
Interest will be issued to the designated transferee. In the case of classes of
Certificates not registered under the Securities Act of 1933, as amended,
additional documentation will be required to be provided to the Trustee prior to
the effectiveness of a transfer.

     The Certificates are issuable only as registered Certificates without
coupons in the Classes and denominations specified in the Agreement. As provided
in the Agreement and subject to certain limitations therein set forth, this
Certificate is exchangeable for one or more new Certificates evidencing the same
Class and in the same aggregate Fractional Undivided Interest, as requested by
the Holder surrendering the same.

     No service charge will be made to the Certificateholders for any such
registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Master Servicer, the Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Master Servicers, the Trustee nor any
such agent shall be affected by notice to the contrary.

     The obligations created by the Agreement and the Trust created thereby
(other than the obligations to make payments to Certificateholders with respect
to the termination of the Agreement) shall terminate upon the earlier of (i) the
later of the (A) final payment or other liquidation (or Monthly Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust and (B)
disposition of all property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan and the remittance of all funds due under the
Agreement, or (ii) the optional repurchase by the party named in the Agreement
of all the Mortgage Loans and other related assets in accordance with the terms
of the Agreement. Such optional repurchase may be made only on or after the
Distribution Date on which the aggregate Scheduled Principal Balance of the
Mortgage Loans is less than 1% of the aggregate Cut-off Date Scheduled Principal
Balance of the Mortgage Loans. The exercise of such right will effect the early
retirement of the Certificates. The Trust also may be terminated on any
Distribution Date upon the determination, based upon an opinion of counsel, that
the REMIC status of the REMIC Assets has been lost or that a substantial risk
exists that such status will be lost for the then current year. In no event,
however, will the Trust created by the Agreement continue beyond the expiration
of 21 years after the death of certain persons identified in the Agreement.

                                   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 assignee) the within Certificate and hereby authorizes the transfer of
registration of such interest to the 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 and Class, 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.

<PAGE>
                                                                       EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                    (Available from the Trustee Upon Request)

<PAGE>
                                                                       EXHIBIT C

                  REPRESENTATIONS AND WARRANTIES OF THE SELLER
                          CONCERNING THE MORTGAGE LOANS

     (a)______the information set forth and to be set forth in the Mortgage Loan
Schedule was and will be true and correct in all material respects at the date
or dates respecting which such information is furnished;

     (b)______immediately prior to the transfer to the Trust, the Seller was the
sole owner of beneficial title and holder of each Mortgage and Mortgage Note
relating to the Mortgage Loans, had good and marketable title thereto and is
conveying the same free and clear of any and all liens, claims, encumbrances,
participation interests, equities, pledges, charges or security interests of any
nature and the Seller has full right and authority to sell or assign the same
pursuant to this Agreement;

     (c)______each Mortgage relating to a Mortgage Loan is a valid and
enforceable first lien on the property securing the related Mortgage Note and
each Mortgaged Property is owned by the Mortgagor in fee simple (except with
respect to common areas in the case of condominiums, PUDs and DE MINIMIS PUDs)
or by leasehold for a term longer than the term of the related Mortgage, subject
only to (i) the lien of current real property taxes and assessments, (ii)
covenants, conditions and restrictions, rights of way, easements and other
matters of public record as of the date of recording of such Mortgage, such
exceptions being acceptable to mortgage lending institutions generally or
specifically reflected in the appraisal obtained in connection with the
origination of the related Mortgage Loan or referred to in the lender's title
insurance policy delivered to the originator of the related Mortgage Loan and
(iii) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by such Mortgage;

     (d)______as of the Cut-off Date, no payment of principal of or interest on
or in respect of any Mortgage Loan is 90 or more days past due;

     (e)______there is no mechanics' lien or claim for work, labor or material
affecting the premises subject to any Mortgage which is or may be a lien prior
to, or equal with, the lien of such Mortgage except those which are insured
against by title insurance policies referred to in (i);

     (f)______no Mortgage Loan is subject to any right of rescission, set-off,
counterclaim or defense, including without limitation the defense of usury, nor
will the operation of any of the terms of the related Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render either the related
Mortgage Note or the Mortgage unenforceable, in whole or in part, or subject to
any right of rescission, set-off, counterclaim or defense, including without
limitation the defense of usury, and no such right of rescission, set-off,
counterclaim or defense has been asserted with respect thereto;

     (g)______except to the extent insurance is in place which will cover such
damage, the physical property subject to any Mortgage is free of material damage
and is in good repair and there is no proceeding pending or threatened for the
total or partial condemnation of any Mortgaged Property;

     (h)______each Mortgage Loan at the time it was made complied in all
material respects with applicable state and federal laws, including, without
limitation, usury, equal credit opportunity and disclosure laws;

     (i)______a lender's title insurance policy (on an ALTA or CLTA form) or
binder, or other assurance of title customary in the relevant jurisdiction
therefor, was issued on the date of the origination of each related Mortgage
Loan, or, if none is available, a current commitment or binder has been issued,
in each case by a title insurance company qualified to do business in the
jurisdiction where the related Mortgage Property is located, insuring the Seller
and its successors and assigns that the Mortgage is a first priority lien on the
related Mortgage Property in the original principal amount of the Mortgage Loan.
Seller is the sole insured under such lender's title insurance policy, and such
policy, commitment, binder or assurance is valid and remains in the full force
and effect, and each such policy, commitment, binder or assurance shall contain
all applicable endorsements including a negative amortization endorsement if
applicable;

     (j)______each Mortgage Note, the related Mortgage and other agreements
executed in connection therewith are genuine, and each is the legal, valid and
binding obligation of the maker thereof, enforceable in accordance with its
terms except as such enforcement may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors'
rights generally and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law); and, to the best
of Seller's knowledge, all parties to each Mortgage Note and the Mortgage had
legal capacity to execute the Mortgage Note and the Mortgage and each Mortgage
Note and Mortgage has been duly and properly executed by the Mortgagor;

     (k)______the related Mortgage Note and Mortgage contain customary and
enforceable provisions such as to render the rights and remedies of the holder
adequate for the realization against the Mortgaged Property of the benefits of
the security, including realization by judicial, or, if applicable, non-judicial
foreclosure, and there is no homestead or other exemption available to the
Mortgagor which would interfere with such right to foreclosure;

     (l)______as of the Closing Date, the improvements, if any, on each
Mortgaged Property securing a Mortgage Loan are insured by an insurer which is
acceptable to the Seller or by its blanket insurance policy against loss by fire
and such hazards as are covered under a standard extended coverage endorsement
in the locale in which the Mortgaged Property is located, in an amount which is
not less than the lesser of the maximum insurable value of the improvements
securing such Mortgage Loan and the outstanding principal balance of the
Mortgage Loan, but in no event in an amount less then an amount that is required
to prevent the Mortgagor from being deemed to be a co-insurer thereunder; if the
improvement on the Mortgaged Property is a condominium unit, it is included
under the coverage afforded by a blanket policy for the condominium project; if
upon origination of the related Mortgage Loan, the improvements, if any, on the
Mortgaged Property were in an area identified as a federally designated flood
area, a flood policy is in effect in an amount representing coverage not less
than the least of (i) the outstanding principal balance of the Mortgage Loan,
(ii) the restorable cost of improvements located on such Mortgaged Property and
(iii) the maximum coverage available under federal law; and each Mortgage
obligates the Mortgagor thereunder to maintain the insurance referred to in the
Mortgage at the Mortgagor's cost and expense;

     (m)______each Mortgage Loan is being serviced by the Seller in accordance
with applicable federal, state and local laws and regulations;

     (n)______neither the Seller nor any servicer of the related Mortgage Loans
has advanced funds or knowingly received any advance of funds by a party other
than the Mortgagor, directly or indirectly, for the payment of any amount
required by the Mortgage, except for interest accruing from the date of the
related Mortgage Note or date of disbursement of the Mortgage Loan proceeds,
whichever is later, to the date which precedes by 30 days the first Due Date
under the related Mortgage Note;

     (o)______the proceeds of the Mortgage Loans 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 have been complied with; and all
costs, fees and expenses incurred in making, closing or recording the Mortgage
Loans have been paid, except recording fees with respect to Mortgages not
recorded as of the Closing Date;

     (p)______to the best of the Seller's knowledge, there is no delinquent tax,
government assessment, insurance premium, municipal charge, assessment lien,
leasehold payments or ground rents which may be due and owing against any
Mortgaged Property and all such charges have been paid when due;

     (q)______each Mortgage Loan was originated by a savings and loan
association, savings bank, commercial bank, credit union, insurance company or
similar institution which is supervised and examined by a federal or State
authority, or by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act;

     (r)______each of the Mortgaged Properties consists of a single parcel of
real property with a detached single-family residence erected thereon, or a two-
to four-family dwelling, or a townhouse, or an individual condominium unit in a
condominium project, or an individual unit in a planned unit development or in
the case of one Mortgage Loan with an aggregate outstanding principal balance as
of the Cut-off Date of $1,014,754.88, a multifamily property.

     (s)______[reserved];

     (t)______the lien against each Mortgaged Property has not been satisfied,
canceled, subordinated or rescinded, in whole or in part, and each Mortgaged
Property has not been released from the lien of the Mortgage, in whole or in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission;

     (u)______each FHA Loan and each VA Loan, and any FHA insurance or VA
guaranty, as applicable, shall remain in full force and effect after the sale of
the Mortgage Loans to the Trust, and such Mortgage Loans are not subject to any
defect which would diminish or impair the FHA insurance or VA guaranty, as
applicable, and all prior transfers, if any, of such Mortgage Loans have been,
and the transactions herein contemplated are, in compliance with all related
federal acts and regulations, and no circumstances exist with respect to such
Mortgage Loans which would permit the FHA or VA, as applicable, to deny coverage
under the FHA insurance or VA guaranty;

     (v)______in servicing and administering each FHA Loan and each VA Loan, the
Seller has complied with all related federal acts and regulations, and has
promptly discharged all of the obligations of the mortgagee thereunder, and
under the Mortgage, including the timely giving of notices thereunder, the
essence hereof being that the full benefits of the FHA insurance or VA guaranty,
as the case may be, inure to the Trust and its assigns and that there is and
shall be no reduction or curtailment of principal, interest or any fees, costs
or expenses to be paid by FHA under the FHA insurance contract or the VA under
the VA guaranty agreement as a result of any act or omission of any party prior
to the Closing Date;

     (w)______the guaranty amount with respect to each VA Loan is equal to the
maximum amount applicable to such Mortgage Loan as provided under Section 5.02
of the VA Lenders Handbook Number 26-7, without regard to the applicable
veteran's available entitlement;

     (x)______the Seller has no intent to foreclose on, or has knowledge of any
recommendation to foreclose on, any specific Mortgage Loan conveyed to the Trust
hereunder; and

     (y)______there is no litigation, pending or threatened against the Seller
or in connection with the Mortgage Loans or the origination or servicing
thereof, and no violation by the Seller of The Truth-in-Lending Act, 15 U.S.C.
ss. 1601 ET SEQ. and its implementing regulations, Regulation Z, 12 C.F.R. Part
226, The Real Estate Settlement Procedures Act, 12 U.S.C. ss. 2601 ET SEQ. or
any other federal or state rules or regulations relating to the Mortgage Loans
or the origination or servicing thereof, including without limitation any
consumer protection, lending and disclosure laws.

<PAGE>
                                                                       EXHIBIT D

                        REQUEST FOR RELEASE OF DOCUMENTS

To:  Wells Fargo Bank Minnesota,
     National Association, as Trustee
     11000 Broken Land Parkway
     Columbia, Maryland 21044
     Attn: Corporate Trust - SAMI 2001-4

          Re:  Pooling and Servicing Agreement (the "Agreement"), dated as of
               September 1, 2001, among Structured Asset Mortgage Investments
               Inc., as Seller, EMC Mortgage Corporation, as Master Servicer,
               and Wells Fargo Bank Minnesota, NATIONAL ASSOCIATION, AS TRUSTEE
               (THE "TRUSTEE")

     In connection with the administration of the Mortgage Loans held by you as
Trustee for the related Trust Fund pursuant to the above-captioned Agreement, we
request the release, and hereby acknowledge receipt, of the Mortgage File for
the Mortgage Loan described below, for the reason indicated.

MORTGAGE LOAN NUMBER:

MORTGAGOR NAME, ADDRESS & ZIP CODE:

REASON FOR REQUESTING DOCUMENTS (check one):

____ 1.  Mortgage Paid in Full (and all amounts received or to be received in
connection with such payment have been or will be remitted to the Master
Servicer for deposit in the appropriate subaccount of the Certificate Account)

____ 2.  Foreclosure

____ 3.  Substitution

____ 4.  Other Liquidation (Repurchasers, etc.)

____ 5.  Nonliquidation    Reason:________________________________

Address to which Trustee should
Deliver the Trustee's Mortgage File:         _________________________________
                                             _________________________________
                                             _________________________________

                                             By:______________________________
                                                     (authorized signer)

                                             Issuer:__________________________
                                             Address:_________________________
                                             _________________________________
                                             Date:____________________________
TRUSTEE

Wells Fargo Bank Minnesota, National Association

Please acknowledge the execution of the above request by your signature and date
below:

______________________________               _____________
Signature                                    Date

Documents returned to Trustee
______________________________               _____________
Trustee                                      Date

<PAGE>
                                                                       EXHIBIT E

                                            Affidavit pursuant
                                            to Section
                                            860E(e)(4) of the
                                            Internal Revenue
                                            Code of 1986, as
                                            amended, and for
                                            other purposes.

STATE OF __________________________)
                                   ) ss:
COUNTY OF _________________________)

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

     1. That (s)he is a [TITLE OF OFFICER] of [NAME OF INVESTOR], (the
"Investor"), a corporation duly organized and existing under the laws of [the
State of _________], on behalf of which he makes this affidavit.

     2. That (i) the Investor is not a "disqualified organization" as defined in
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended, and will
not be a disqualified organization as of [date of transfer of Residual
Certificates], (ii) it is not acquiring the Structured Asset Mortgage
Investments Inc. Mortgage Pass-Through Certificates, Series 2001-4, [Class R-1]
[Class R-2] Certificates (the "Residual Certificates") for the account of a
disqualified organization; (iii) it agrees to amend the Pooling and Servicing
Agreement, dated as of September 1, 2001, among Structured Asset Mortgage
Investments, Inc., as seller, EMC Mortgage Corporation, as master servicer and
Wells Fargo Bank Minnesota, National Association, as trustee, shall it be deemed
necessary (upon advice of counsel) to constitute a reasonable arrangement to
ensure that the Residual Certificates will not be owned directly or indirectly
by a disqualified organization; and (iv) it will not transfer such Residual
Certificates unless (a) it has received from the transferee an affidavit in
substantially the same form as this affidavit containing these same four
representations and (b) as of the time of the transfer, it does not have actual
knowledge that such affidavit is false.

     3. That the Investor is one of the following (a "United States Person"):
(i) a citizen or resident of the United States, (ii) a corporation, partnership
or other entity created or organized in or under the laws of the United States
or any political subdivision thereof, (iii) an estate that is subject to U.S.
federal income tax regardless of the source of its income or (iv) a trust other
than a "foreign trust" as defined in Section 7701(a)(31) of the Code. If the
Investor is a flow through entity for U.S. federal tax purposes, no person who
is not a United States person directly or through one or more flow through
entities will have a beneficial interest in the Residual Certificates through
such Investor.

     4. That the Investor's taxpayer identification number is ___________.

     5. That no purpose of the acquisition of the Residual Certificates is to
avoid or impede the assessment or collection of tax.

     6. That the Investor understands that, as the holder of the Residual
Certificates, the Investor may incur tax liabilities in excess of any cash flows
generated by the Residual Certificates.

     7. That the Investor intends to pay taxes associated with holding the
Residual Certificates as they become due.

     IN WITNESS WHEREOF, the Investor has caused this instrument to be executed
on its behalf, pursuant to the authority of its __________, by its __________,
this __ day of ________, 20___.

                                   By: ____________________________________

                                   Address of Investor for receipt of tax
                                   information:

     Personally appeared before me the above-named _________________, known or
proved to me to be the same person who executed the foregoing instrument and to
be a ________________ of the Investor, and acknowledged to me that he executed
the same as his free act and deed and the free act and deed of the Investor.

     Subscribed and sworn before me this ____ day of ______, 20___.

NOTARY PUBLIC

COUNTY OF _________________

STATE OF ___________________

My commission expires the ____ day of ___________, 20____.

[SEAL]

<PAGE>

                                                                     EXHIBIT F-1

                            FORM OF INVESTMENT LETTER

                                                                          [Date]

[SELLER]

Wells Fargo Bank Minnesota,
   National Association
11000 Broken Land Parkway
Columbia, MD 21044
Attention:  SAMI 2001-4

Structured Asset Mortgage Investments Inc.
245 Park Avenue
New York, New York  10167

          Re:  Structured Asset Mortgage Investments Trust 2001-4, Mortgage
               Pass-Through Certificates, Series 2001-4 (the "Certificates"),
               including the Class B-4, Class B 5, Class B-6, Class R-1 and
               Class R-2 Certificates (THE "PRIVATELY OFFERED CERTIFICATES")

Dear Ladies and Gentlemen:

     In connection with our purchase of Privately Offered Certificates, we
confirm that:

          (i)    we understand that the Privately Offered Certificates are not
                 being registered under the Securities Act of 1933, as amended
                 (the "Act") or any applicable state securities or "Blue Sky"
                 laws, and are being sold to us in a transaction that is exempt
                 from the registration requirements of such laws;

          (ii)   any information we desired concerning the Certificates,
                 including the Privately Offered Certificates, the trust in
                 which the Certificates represent the entire beneficial
                 ownership interest (the "Trust") or any other matter we deemed
                 relevant to our decision to purchase Privately Offered
                 Certificates has been made available to us;

          (iii)  we are able to bear the economic risk of investment in
                 Privately Offered Certificates; we are an institutional
                 "accredited investor" as defined in Section 501(a) of
                 Regulation D promulgated under the Act and a sophisticated
                 institutional investor;

          (iv)   we are acquiring Privately Offered Certificates for our own
                 account, not as nominee for any other person, and not with a
                 present view to any distribution or other disposition of the
                 Privately Offered Certificates;

          (v)    we agree the Privately Offered Certificates must be held
                 indefinitely by us (and may not be sold, pledged, hypothecated
                 or in any way disposed of) unless subsequently registered under
                 the Act and any applicable state securities or "Blue Sky" laws
                 or an exemption from the registration requirements of the Act
                 and any applicable state securities or "Blue Sky" laws is
                 available;

          (vi)   we agree that in the event that at some future time we wish to
                 dispose of or exchange any of the Privately Offered
                 Certificates (such disposition or exchange not being currently
                 foreseen or contemplated), we will not transfer or exchange any
                 of the Privately Offered Certificates unless:

                      (A) (1) the sale is to an Eligible Purchaser (as defined
                 below), (2) if required by the Pooling and Servicing Agreement
                 (as defined below) a letter to substantially the same effect as
                 either this letter or, if the Eligible Purchaser is a Qualified
                 Institutional Buyer as defined under Rule 144A of the Act, the
                 Rule 144A and Related Matters Certificate in the form attached
                 to the Pooling and Servicing Agreement (as defined below) (or
                 such other documentation as may be acceptable to the Trustee)
                 is executed promptly by the purchaser and delivered to the
                 addressees hereof and (3) all offers or solicitations in
                 connection with the sale, whether directly or through any agent
                 acting on our behalf, are limited only to Eligible Purchasers
                 and are not made by means of any form of general solicitation
                 or general advertising whatsoever; and

                      (B) if the Privately Offered Certificate is not registered
                 under the Act (as to which we acknowledge you have no
                 obligation), the Privately Offered Certificate is sold in a
                 transaction that does not require registration under the Act
                 and any applicable state securities or "blue sky" laws and, if
                 Wells Fargo Bank Minnesota, National Association (the
                 "Trustee") so requests, a satisfactory Opinion of Counsel is
                 furnished to such effect, which Opinion of Counsel shall be an
                 expense of the transferor or the transferee;

          (vii)  we agree to be bound by all of the terms (including those
                 relating to restrictions on transfer) of the Pooling and
                 Servicing Agreement (as defined below), pursuant to which the
                 Trust was formed; we have reviewed carefully and understand the
                 terms of the Pooling and Servicing Agreement;

          (viii) we either: (i) are not acquiring the Privately Offered
                 Certificate directly or indirectly by, or on behalf of, an
                 employee benefit plan or other retirement arrangement which is
                 subject to Title I of the Employee Retirement Income Security
                 Act of 1974, as amended ("ERISA"), and/or section 4975 of the
                 Internal Revenue Code of 1986, as amended (the "Code"), or (ii)
                 hereby certify that the proposed transfer and/or holding of a
                 Privately Offered Certificate and the servicing, management
                 and/or operation of the Trust (a) will not result in a
                 prohibited transaction under Section 406 of ERISA or Section
                 4975 of the Code which is not covered under an individual or
                 class prohibited transaction exemption including but not
                 limited to Department of Labor Prohibited Transaction Exemption
                 ("PTE") 84-14 (Class Exemption for Plan Asset Transactions
                 Determined by Independent Qualified Professional Asset
                 Managers), PTE 91-38 (Class Exemption for Certain Transactions
                 Involving Bank Collective Investment Funds), PTE 90-1 (Class
                 Exemption for Certain Transactions Involving Insurance Company
                 Pooled Separate Accounts), PTE 95-60 (Class Exemption for
                 Certain Transactions Involving Insurance Company General
                 Accounts) and PTCE 96-23 (Class Exemption for Plan Asset
                 Transactions Determined by In-House Asset Managers) and (b)
                 will not give rise to any additional fiduciary duties under
                 ERISA on the part of the Master Servicer or the Trustee.

          (ix)   We understand that each Class of the Privately Offered
                 Certificates bears, and will continue to bear, legends to
                 substantially the following effect:

                 "THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
                 THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                 OR UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY
                 PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE MAY
                 BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
                 COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS
                 AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
                 ("RULE 144A") TO A PERSON THAT THE HOLDER REASONABLY BELIEVES
                 IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE
                 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT OR A QIB
                 PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS
                 INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR
                 OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2)
                 PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
                 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED
                 FORM TO AN "INSTITUTIONAL ACCREDITED INVESTOR" WITHIN THE
                 MEANING THEREOF IN RULE 501(a)(1),(2)(3) OR (7) OF REGULATION D
                 UNDER THE ACT OR ANY ENTITY IN WHICH ALL THE EQUITY OWNERS COME
                 WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN
                 VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY
                 THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN
                 THE AGREEMENT AND (B) A REPRESENTATION OR CERTIFICATION AS TO
                 COMPLIANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                 STATES AND ANY OTHER APPLICABLE JURISDICTION. THIS CERTIFICATE
                 MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF,
                 AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
                 IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
                 SECURITY ACT OF 1974, AS AMENDED, AND/OR SECTION 4975 OF THE
                 INTERNAL REVENUE CODE OF 1986, AS AMENDED, UNLESS THE PROPOSED
                 TRANSFER AND/OR HOLDING OF A CERTIFICATE AND THE SERVICING,
                 MANAGEMENT AND/OR OPERATION OF THE TRUST AND ITS ASSETS: (I)
                 WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT
                 COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION
                 EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED
                 TRANSACTION EXEMPTION ("PTE") 84-14, PTE 91-38, PTE 90-1, PTE
                 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY
                 ADDITIONAL FIDUCIARY DUTIES ON THE PART OF THE MASTER SERVICER
                 OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF
                 A BOOK-ENTRY CERTIFICATE OR GLOBAL CERTIFICATE AND WILL BE
                 EVIDENCED BY A REPRESENTATION TO SUCH EFFECT BY OR ON BEHALF OF
                 A HOLDER OF A PHYSICAL CERTIFICATE."

     "ELIGIBLE PURCHASER" means a corporation, partnership or other entity which
we have reasonable grounds to believe and do believe (i) can make
representations with respect to itself to substantially the same effect as the
representations set forth herein, and (ii) is either a Qualified Institutional
Buyer as defined under Rule 144A of the Act or an institutional "Accredited
Investor" as defined under Rule 501 of the Act.

     Terms not otherwise defined herein shall have the meanings assigned to them
in the Pooling and Servicing Agreement dated as of September 1, 2001 among
Structured Asset Mortgage Investments Inc., as Seller, EMC Mortgage Corporation,
as Master Servicer and Wells Fargo Bank Minnesota, National Association, as
Trustee (the "Pooling and Servicing Agreement").

     If the Purchaser proposes that its Certificates be registered in the name
of a nominee on its behalf, the Purchaser has identified such nominee below, and
has caused such nominee to complete the Nominee Acknowledgment at the end of
this letter.

Name of Nominee (if any):___________________

<PAGE>

     IN WITNESS WHEREOF, this document has been executed by the undersigned who
is duly authorized to do so on behalf of the undersigned Eligible Purchaser on
the ____ day of ________, 20__.

                                           Very truly yours,

                                            [PURCHASER]

                                            By:__________________________
                                                 (Authorized Officer)

                                            [By:__________________________
                                                 Attorney-in-fact]

<PAGE>
                             Nominee Acknowledgment

The undersigned hereby acknowledges and agrees that as to the Certificates being
registered in its name, the sole beneficial owner thereof is and shall be the
Purchaser identified above, for whom the undersigned is acting as nominee.

                                            [NAME OF NOMINEE]

                                            By:__________________________
                                                 (Authorized Officer)

                                            [By:__________________________
                                                 Attorney-in-fact]

<PAGE>
                                                                     EXHIBIT F-2

                FORM OF RULE 144A AND RELATED MATTERS CERTIFICATE

                                                                          [Date]

[SELLER]

Wells Fargo Bank Minnesota,
   National Association
11000 Broken Land Parkway
Columbia, MD 21044
Attention:  SAMI 2001-4

Structured Asset Mortgage Investments Inc.
245 Park Avenue
New York, New York  10167

          Re:  Structured Asset Mortgage Investments Trust 2001-4 Mortgage
               Pass-Through Certificates, Series 2001-4 (the "Certificates"),
               including the Class B-4, Class B-5, Class B-6, Class R-1 and
               Class R-2 Certificates (THE "PRIVATELY OFFERED CERTIFICATES")

Dear Ladies and Gentlemen:

     In connection with our purchase of Privately Offered Certificates, the
undersigned certifies to each of the parties to whom this letter is addressed
that it is a qualified institutional buyer (as defined in Rule 144A under the
Securities Act of 1933, as amended (the "Act")) as follows:

1.   It owned and/or invested on a discretionary basis eligible securities
     (excluding affiliate's securities, bank deposit notes and CD's, loan
     participations, repurchase agreements, securities owned but subject to a
     repurchase agreement and swaps), as described below:

     Date: _____________, 20__ (must be on or after the close of its most recent
     fiscal year)

     Amount: $_________________; and

2.   The dollar amount set forth above is:

     a.   greater than $100 million and the undersigned is one of the following
          entities:

          (1)  |_|  an insurance company as defined in Section 2(13) of the Act;
                    or1

----------------
1    A purchase by an insurance company for one or more of its separate
     accounts, as defined by Section 2(a)(37) of the Investment Company Act of
     1940, which are neither registered nor required to be registered
     thereunder, shall be deemed to be a purchase for the account of such
     insurance company.

          (2)  |_|  an investment company registered under the Investment
                    Company Act or any business development company as defined
                    in Section 2(a)(48) of the Investment Company Act of 1940;
                    or

          (3)  |_|  a Small Business Investment Company licensed by the U.S.
                    Small Business Administration under Section 301(c) or (d) of
                    the Small Business Investment Act of 1958; or

          (4)  |_|  a plan (i) established and maintained by a state, its
                    political subdivisions, or any agency or instrumentality of
                    a state or its political subdivisions, the laws of which
                    permit the purchase of securities of this type, for the
                    benefit of its employees and (ii) the governing investment
                    guidelines of which permit the purchase of securities of
                    this type; or

          (5)  |_|  a business development company as defined in Section
                    202(a)(22) of the Investment Advisers Act of 1940; or

          (6)  |_|  a corporation (other than a U.S. bank, savings and loan
                    association or equivalent foreign institution), partnership,
                    Massachusetts or similar business trust, or an organization
                    described in Section 501(c)(3) of the Internal Revenue Code;
                    or

          (7)  |_|  a U.S. bank, savings and loan association or equivalent
                    foreign institution, which has an audited net worth of at
                    least $25 million as demonstrated in its latest annual
                    financial statements; or

          (8)  |_|  an investment adviser registered under the Investment
                    Advisers Act; or

     b.   |_|  greater than $10 million, and the undersigned is a broker-dealer
               registered with the SEC; or

     c.   |_|  less than $10 million, and the undersigned is a broker-dealer
               registered with the SEC and will only purchase Rule 144A
               securities in transactions in which it acts as a riskless
               principal (as defined in Rule 144A); or

     d.   |_|  less than $100 million, and the undersigned is an investment
               company registered under the Investment Company Act of 1940,
               which, together with one or more registered investment companies
               having the same or an affiliated investment adviser, owns at
               least $100 million of eligible securities; or

     e.   |_|  less than $100 million, and the undersigned is an entity, all the
               equity owners of which are qualified institutional buyers.

     The undersigned further certifies that it is purchasing a Privately Offered
Certificate for its own account or for the account of others that independently
qualify as "Qualified Institutional Buyers" as defined in Rule 144A. It is aware
that the sale of the Privately Offered Certificates is being made in reliance on
its continued compliance with Rule 144A. It is aware that the transferor may
rely on the exemption from the provisions of Section 5 of the Act provided by
Rule 144A. The undersigned understands that the Privately Offered Certificates
may be resold, pledged or transferred only to (i) a person reasonably believed
to be a Qualified Institutional Buyer that purchases for its own account or for
the account of a Qualified Institutional Buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance in Rule 144A, or (ii) an
institutional "accredited investor," as such term is defined under Rule 501 of
the Act in a transaction that otherwise does not constitute a public offering.

     The undersigned agrees that if at some future time it wishes to dispose of
or exchange any of the Privately Offered Certificates, it will not transfer or
exchange any of the Privately Offered Certificates to a Qualified Institutional
Buyer without first obtaining a Rule 144A and Related Matters Certificate in the
form hereof from the transferee and delivering such certificate to the
addressees hereof. Prior to making any transfer of Privately Offered
Certificates, if the proposed Transferee is an institutional "accredited
investor," the transferor shall obtain from the transferee and deliver to the
addressees hereof an Investment Letter in the form attached to the Pooling and
Servicing Agreement dated as of September 1, 2001 among Structured Asset
Mortgage Investments Inc., as Seller, EMC Mortgage Corporation, as Master
Servicer, and Wells Fargo Bank Minnesota, National Association, as Trustee,
pursuant to which the Certificates were issued.

     The undersigned certifies that it either: (i) is not acquiring the
Privately Offered Certificate directly or indirectly by, or on behalf of, an
employee benefit plan or other retirement arrangement which is subject to Title
I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
and/or section 4975 of the Internal Revenue Code of 1986, as amended (the
"Code"), or (ii) the proposed transfer and/or holding of a Privately Offered
Certificate and the servicing, management and/or operation of the Trust and its
assets (a) will not result in a prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code which is not covered under an individual or
class prohibited transaction exemption including but not limited to Department
of Labor Prohibited Transaction Exemption ("PTE") 84-14 (Class Exemption for
Plan Asset Transactions Determined by Independent Qualified Professional Asset
Managers), PTE 91-38 (Class Exemption for Certain Transactions Involving Bank
Collective Investment Funds), PTE 90-1 (Class Exemption for Certain Transactions
Involving Insurance Company Pooled Separate Accounts), PTE 95-60 (Class
Exemption for Certain Transactions Involving Insurance Company General Accounts)
or PTCE 96-23 (Class Exemption for Plan Asset Transactions Determined by
In-House Asset Managers) and (b) will not give rise to any additional fiduciary
duties under ERISA on the part of the Master Servicer or the Trustee.

     If the Purchaser proposes that its Certificates be registered in the name
of a nominee on its behalf, the Purchaser has identified such nominee below, and
has caused such nominee to complete the Nominee Acknowledgment at the end of
this letter.

Name of Nominee (if any):___________________

     IN WITNESS WHEREOF, this document has been executed by the undersigned who
is duly authorized to do so on behalf of the undersigned Eligible Purchaser on
the ____ day of ________, 20__.

                                            Very truly yours,

                                            [PURCHASER]

                                            By:__________________________
                                            (Authorized Officer)

                                            [By:__________________________
                                            Attorney-in-fact]

                             Nominee Acknowledgment

     The undersigned hereby acknowledges and agrees that as to the Certificates
being registered in its name, the sole beneficial owner thereof is and shall be
the Purchaser identified above, for whom the undersigned is acting as nominee.

                                            [NAME OF NOMINEE]

                                            By:__________________________
                                            (Authorized Officer)

                                            [By:__________________________
                                            Attorney-in-fact]

<PAGE>
                                                                   EXHIBIT G

                          FORM OF INITIAL CERTIFICATION

Structured Asset Mortgage Investments Inc.
245 Park Avenue
New York, New York  10167

EMC Mortgage Corporation
245 Park Avenue
New York, New York 10167

     Re:  Pooling and Servicing Agreement dated as of September 1, 2001, among
          Structured Asset Mortgage Investments Inc., as seller, EMC Mortgage
          Corporation, as master servicer, and Wells Fargo Bank Minnesota,
          National Association, as trustee-- Structured Asset Mortgage
          Investments Inc. Mortgage PASS-THROUGH CERTIFICATES, SERIES 2001-4

Ladies and Gentlemen:

     In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as otherwise noted on the attached exception report, that as to each Mortgage
Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed on the attachment hereto) it has reviewed the Mortgage File and
the Mortgage Loan Schedule and has determined that: (i) all documents required
to be included in the Mortgage File pursuant to the Pooling and Servicing
Agreement are in its possession; (ii) such documents have been reviewed by it
and appear regular on their face, have, where applicable, been executed and
relate to such Mortgage Loan; and (iii) based on examination by it, and only as
to such documents, the information set forth in the Mortgage Loan Schedule as to
Mortgagor Name, original principal balance and loan number respecting such
Mortgage Loan is correct and accurately reflects the information in the Mortgage
Loan File.

     The Trustee has made no independent examination of any documents contained
in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representation that any documents specified in subclauses (iv) and (viii) of
Section 2.01(b) should be included in any Mortgage File. The Trustee makes no
representations as to: (i) the validity, legality, enforceability or genuineness
of any of the documents contained in each Mortgage File of any of the Mortgage
Loans identified on the Mortgage Loan Schedule or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

<PAGE>

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                            WELLS FARGO BANK MINNESOTA,
                                            NATIONAL ASSOCIATION, as
                                            trustee

                                            By:______________________________
                                                 Name:
                                                 Title:

<PAGE>

                                                                       EXHIBIT H

                           FORM OF FINAL CERTIFICATION

Structured Asset Mortgage Investments Inc.
245 Park Avenue
New York, New York  10167

EMC Mortgage Corporation
245 Park Avenue
New York, NY 10167

     Re:  Pooling and Servicing Agreement dated as of September 1, 2001, among
          Structured Asset Mortgage Investments Inc., as seller, EMC Mortgage
          Corporation, as master servicer, and Wells Fargo Bank Minnesota,
          National Association, as trustee-- Structured Asset Mortgage
          Investments Inc. Mortgage PASS-THROUGH CERTIFICATES, SERIES 2001-4

Ladies and Gentlemen:

     In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as otherwise noted on the attached exception report, that as to each Mortgage
Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed on the attachment hereto) it has reviewed the Mortgage File and
has determined that (i) each document required to be recorded has been returned
from the recording office with evidence of recording thereon and it has received
either an original or a copy of such document, as required pursuant to Section
2.01(b), PROVIDED, HOWEVER, that with respect to those documents described in
subclauses (b)(iv) and (b)(viii) of Section 2.01, it has reviewed only those
documents actually delivered to us pursuant to such subclauses; (ii) an original
title insurance policy (or if a master title policy has been issued by the title
insurer, a mortgagee's certificate of title insurance), if available, or a copy
thereof, whenever a title insurance binder or commitment or other assurance of
title was originally delivered; and (iii) the documents described in clauses (i)
and (ii) are related, determined on the basis of the Mortgagor name, original
principal balance and loan number, to the Mortgage Loans identified on the
Mortgage Loan Schedule and appear regular on their face.

     The Trustee has made no independent examination of any documents contained
in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representation that any documents specified in subclauses (iv) and (viii) of
Section 2.01(b) should be included in any Mortgage File. The Trustee makes no
representations as to: (i) the validity, legality, enforceability or genuineness
of any of the documents contained in each Mortgage File of any of the Mortgage
Loans identified on the Mortgage Loan Schedule or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

<PAGE>

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.

                                       WELLS FARGO BANK MINNESOTA,
                                       NATIONAL ASSOCIATION,
                                       as trustee

                                       By:____________________________
                                            Name:
                                            Title:

<PAGE>
                                                                       EXHIBIT I

                   SCHEDULE OF MORTGAGE LOANS WITH LOST NOTES

                    (Available from the Trustee upon request)

<PAGE>
                                                                       EXHIBIT J

                          SCHEDULE OF RESTRICTED LOANS

                    (Available from the Trustee upon request)

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