Document:

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                                                                     Exhibit 4.2

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                                    INDENTURE

                                      Among

                         LUMINENT MORTGAGE TRUST 200_-_
                                   as Issuer,

                                      [o],
                               as Master Servicer

                                       and

                                      [o],
                              as Indenture Trustee

                                 Dated as of [o]

                         LUMINENT MORTGAGE TRUST 200_-_
                      MORTGAGE-BACKED NOTES, SERIES 200_-_

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                                TABLE OF CONTENTS

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                                                                            ----
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE.....................      2
   SECTION 1.1   DEFINITIONS.............................................      2
   SECTION 1.2   INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.......     27
   SECTION 1.3   RULES OF CONSTRUCTION...................................     27

ARTICLE II THE NOTES.....................................................     28
   SECTION 2.1   FORM....................................................     28
   SECTION 2.2   EXECUTION, AUTHENTICATION, DELIVERY AND DATING..........     29
   SECTION 2.3   REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.....     29
   SECTION 2.4   MUTILATED, DESTROYED, LOST OR STOLEN NOTES..............     31
   SECTION 2.5   PERSONS DEEMED OWNERS...................................     31
   SECTION 2.6   PAYMENT OF PRINCIPAL AND INTEREST.......................     31
   SECTION 2.7   CANCELLATION............................................     32
   SECTION 2.8   AUTHENTICATION OF NOTES.................................     33
   SECTION 2.9   BOOK-ENTRY NOTES........................................     35
   SECTION 2.10  NOTICES TO CLEARING AGENCY..............................     35
   SECTION 2.11  DEFINITIVE NOTES........................................     36
   SECTION 2.12  TAX.....................................................     36
   SECTION 2.13  RELEASE OF COLLATERAL...................................     36

ARTICLE III COVENANTS....................................................     37
   SECTION 3.1   PAYMENT OF PRINCIPAL AND INTEREST.......................     37
   SECTION 3.2   MAINTENANCE OF OFFICE OR AGENCY.........................     37
   SECTION 3.3   MONEY FOR PAYMENTS TO BE HELD IN TRUST..................     37
   SECTION 3.4   EXISTENCE...............................................     39
   SECTION 3.5   PROTECTION OF COLLATERAL................................     39
   SECTION 3.6   OPINIONS AS TO TRUST FUND...............................     40
   SECTION 3.7   PERFORMANCE OF OBLIGATIONS..............................     40
   SECTION 3.8   NEGATIVE COVENANTS......................................     41
   SECTION 3.9   COVENANTS OF THE ISSUER.................................     42
   SECTION 3.10  RESTRICTED PAYMENTS.....................................     42
   SECTION 3.11  TREATMENT OF NOTES AS DEBT FOR TAX PURPOSES.............     42
   SECTION 3.12  NOTICE OF EVENTS OF DEFAULT.............................     43
   SECTION 3.13  FURTHER INSTRUMENTS AND ACTS............................     43
   SECTION 3.14  ANNUAL STATEMENT AS TO COMPLIANCE.......................     43
   SECTION 3.15  REPRESENTATIONS AND WARRANTIES OF THE ISSUER............     43
   SECTION 3.16  ANNUAL OPINIONS AS TO COLLATERAL........................     44

ARTICLE IV SATISFACTION AND DISCHARGE....................................     44
   SECTION 4.1   SATISFACTION AND DISCHARGE OF INDENTURE.................     44
   SECTION 4.2   APPLICATION OF TRUST MONEY..............................     45

ARTICLE V EVENTS OF DEFAULT; REMEDIES....................................     46
   SECTION 5.1   EVENTS OF DEFAULT.......................................     46
   SECTION 5.2   ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT......     47
   SECTION 5.3   COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
                    INDENTURE TRUSTEE....................................     47
   SECTION 5.4   REMEDIES; PRIORITIES....................................     50
   SECTION 5.5   LIMITATION OF SUITS.....................................     51
   SECTION 5.6   UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
                    AND INTEREST.........................................     52
   SECTION 5.7   RESTORATION OF RIGHTS AND REMEDIES......................     52
   SECTION 5.8   RIGHTS AND REMEDIES CUMULATIVE..........................     52
   SECTION 5.9   DELAY OR OMISSION NOT A WAIVER..........................     52
   SECTION 5.10  CONTROL BY NOTEHOLDERS..................................     52
   SECTION 5.11  WAIVER OF PAST DEFAULTS.................................     53
   SECTION 5.12  UNDERTAKING FOR COSTS...................................     53

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                                TABLE OF CONTENTS

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   SECTION 5.13  WAIVER OF STAY OR EXTENSION LAWS........................     53
   SECTION 5.14  ACTION ON NOTES.........................................     53
   SECTION 5.15  OPTIONAL PRESERVATION OF THE COLLATERAL.................     54
   SECTION 5.16  PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS......     54

ARTICLE VI   THE INDENTURE TRUSTEE.......................................     54
   SECTION 6.1   DUTIES OF INDENTURE TRUSTEE.............................     55
   SECTION 6.2   RIGHTS OF INDENTURE TRUSTEE.............................     57
   SECTION 6.3   INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE..................     58
   SECTION 6.4   INDENTURE TRUSTEE'S DISCLAIMER..........................     58
   SECTION 6.5   NOTICE OF DEFAULT.......................................     58
   SECTION 6.6   REPORTS BY INDENTURE TRUSTEE TO HOLDERS.................     58
   SECTION 6.7   COMPENSATION AND INDEMNITY..............................     58
   SECTION 6.8   REPLACEMENT OF INDENTURE TRUSTEE........................     59
   SECTION 6.9   SUCCESSOR INDENTURE TRUSTEE BY MERGER...................     60
   SECTION 6.10  APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE
                    INDENTURE TRUSTEE....................................     60
   SECTION 6.11  ELIGIBILITY.............................................     62
   SECTION 6.12  REPRESENTATIONS AND WARRANTIES..........................     62
   SECTION 6.13  PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER........     62

ARTICLE VII  NOTEHOLDERS' LISTS AND REPORTS..............................     62
   SECTION 7.1   ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND ADDRESSES
                    OF NOTEHOLDERS.......................................     62
   SECTION 7.2   PRESERVATION OF INFORMATION; COMMUNICATIONS TO
                    NOTEHOLDERS..........................................     63
   SECTION 7.3   REPORTS BY ISSUER.......................................     63
   SECTION 7.4   REPORTS BY INDENTURE TRUSTEE............................     63

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES........................     64
   SECTION 8.1   COLLECTION OF MONEY.....................................     64
   SECTION 8.2   PAYMENTS ON THE NOTES...................................     64
   SECTION 8.3   RELEASE OF COLLATERAL...................................     64

ARTICLE IX ADMINISTRATION OF TRUST FUND..................................     65
   SECTION 9.1   COLLECTION ACCOUNTS; DISTRIBUTION ACCOUNT...............     65
   SECTION 9.2   PERMITTED WITHDRAWALS FROM THE DISTRIBUTION ACCOUNT.....     66
   SECTION 9.3   ADVANCES BY MASTER SERVICER.............................     67
   SECTION 9.4   COMPENSATING INTEREST PAYMENTS..........................     67
   SECTION 9.5   PRE-FUNDING ACCOUNT.....................................     67
   SECTION 9.6   FINANCIAL ASSETS CUSTODIAL ACCOUNT......................     68
   SECTION 9.7   CALCULATION OF LIBOR....................................     69
   SECTION 9.8   MONTHLY STATEMENTS TO NOTEHOLDERS.......................     70
   SECTION 9.9   REPORTS TO THE SECURITIES AND EXCHANGE COMMISSION.......     72
   SECTION 9.10  DISCOVERY OF BREACH; REPURCHASE AND SUBSTITUTION OF
                    MORTGAGE LOANS.......................................     73

ARTICLE X SUPPLEMENTAL INDENTURES........................................     75
   SECTION 10.1  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS..     75
   SECTION 10.2  SUPPLEMENTAL INDENTURES WITH CONSENT OF NOTEHOLDERS.....     76
   SECTION 10.3  EXECUTION OF SUPPLEMENTAL INDENTURES....................     77
   SECTION 10.4  EFFECT OF SUPPLEMENTAL INDENTURE........................     77
   SECTION 10.5  CONFORMITY WITH TRUST INDENTURE ACT.....................     78
   SECTION 10.6  REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES...........     78
   SECTION 10.7  AMENDMENTS TO TRUST AGREEMENT...........................     78

ARTICLE XI DISPOSITION OF THE COLLATERAL; REDEMPTION OF THE NOTES........     78
   SECTION 11.1  REDEMPTION OF THE NOTES.................................     78

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                                TABLE OF CONTENTS

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   SECTION 11.2  FORM OF REDEMPTION NOTICE...............................     79
   SECTION 11.3  NOTES PAYABLE ON REDEMPTION DATE........................     80

ARTICLE XII ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE MASTER
                    SERVICER.............................................     80
   SECTION 12.1  DUTIES OF THE MASTER SERVICER; ENFORCEMENT OF SERVICERS'
                    OBLIGATIONS..........................................     80
   SECTION 12.2  COMPENSATION TO THE MASTER SERVICER.....................     81
   SECTION 12.3  MERGER OR CONSOLIDATION.................................     82
   SECTION 12.4  RESIGNATION OF MASTER SERVICER..........................     82
   SECTION 12.5  ASSIGNMENT OR DELEGATION OF DUTIES BY THE MASTER
                    SERVICER.............................................     82
   SECTION 12.6  LIMITATION ON LIABILITY OF THE MASTER SERVICER..........     83
   SECTION 12.7  INDEMNIFICATION; THIRD-PARTY CLAIMS.....................     83
   SECTION 12.8  MASTER SERVICER EVENTS OF DEFAULT.......................     84
   SECTION 12.9  INDENTURE TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR......     86
   SECTION 12.10 NOTIFICATION TO NOTEHOLDERS.............................     87
   SECTION 12.11 MASTER SERVICER TO ACT AS SERVICER; APPOINTMENT OF
                    SUCCESSOR............................................     88
   SECTION 12.12 NOTIFICATION TO NOTEHOLDERS.............................     89
   SECTION 12.13 RECORDS; CONFIDENTIALITY................................     89
   SECTION 12.14 ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE...........     89
   SECTION 12.15 ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT........     90

ARTICLE XIII MISCELLANEOUS...............................................     90
   SECTION 13.1  COMPLIANCE CERTIFICATES AND OPINIONS, ETC...............     90
   SECTION 13.2  FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE........     91
   SECTION 13.3  ACTS OF NOTEHOLDERS.....................................     92
   SECTION 13.4  NOTICES, ETC. TO INDENTURE TRUSTEE, THE ISSUER AND
                    RATING AGENCIES......................................     92
   SECTION 13.5  NOTICES TO NOTEHOLDERS; WAIVER..........................     93
   SECTION 13.6  CONFLICT WITH TRUST INDENTURE ACT.......................     93
   SECTION 13.7  EFFECT OF HEADINGS AND TABLE OF CONTENTS................     93
   SECTION 13.8  SUCCESSORS AND ASSIGNS..................................     93
   SECTION 13.9  SEVERABILITY............................................     94
   SECTION 13.10 BENEFITS OF INDENTURE AND CONSENT OF NOTEHOLDERS........     94
   SECTION 13.11 LEGAL HOLIDAYS..........................................     94
   SECTION 13.12 GOVERNING LAW...........................................     94
   SECTION 13.13 COUNTERPARTS............................................     94
   SECTION 13.14 RECORDING OF INDENTURE..................................     94
   SECTION 13.15 ISSUER OBLIGATIONS......................................     94
   SECTION 13.16 NO PETITION.............................................     95
   SECTION 13.17 INSPECTION..............................................     95
   SECTION 13.18 EXECUTION BY THE ISSUER.................................     95

                                    SCHEDULES

Schedule I     Mortgage Loan Schedule
Schedule II    Financial Asset Schedule
Schedule III   Form of Monthly Statements to Noteholders
Schedule IV    Purchase Agreements
Schedule V     Servicing Agreements

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                                TABLE OF CONTENTS

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                                    EXHIBITS

EXHIBIT A      Form of Note

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     CROSS REFERENCE TABLE

     Cross-reference sheet showing the location in the Indenture of the
provisions inserted pursuant to Sections 310 through 318(a) inclusive of the
Trust Indenture Act of 1939.*

                 Trust Indenture Act of 1939                   Indenture Section
                 ---------------------------                   -----------------
   Section 310
(a)(1)......................................................          6.7
(a)(2)......................................................        6.7, 6.8
(a)(3)......................................................          6.13
(a)(4)......................................................     Not Applicable
(a)(5)......................................................          6.7
(b).........................................................        6.7, 6.9
(c).........................................................     Not Applicable
   Section 311
(a).........................................................          6.12
(b).........................................................          6.12
(c).........................................................     Not Applicable
   Section 312
(a).........................................................        7.1, 7.2
(b).........................................................          7.2
(c).........................................................          7.2
   Section 313
(a).........................................................          7.3
(b).........................................................          7.3
(c).........................................................          13.5
(d).........................................................          7.3
   Section 314
(a)(1)......................................................          7.4
(a)(2)......................................................          7.4
(a)(3)......................................................          7.4
(a)(4)......................................................          7.4
(b)(1)......................................................     2.11(c), 13.01
(b)(2)......................................................          3.6
(c)(1)......................................................     2.11(d), 4.1,
                                                                  8.2(d), 13.1
(c)(2)......................................................     2.11(c), 4.1,
                                                                  8.2(d), 13.1
(c)(3)......................................................         8.2(d)
(d)(1)......................................................          13.1
(d)(2)......................................................          13.1
(d)(3)......................................................          13.1

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*    This Cross-Reference Table is not part of the Indenture.

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(e).........................................................          13.1
   Section 315
(a).........................................................          6.1
(b).........................................................       6.2, 13.5
(c).........................................................          6.1
(d)(1)......................................................          6.1
(d)(2)......................................................          6.1
(d)(3)......................................................          6.1
(e).........................................................          5.12
   Section 316
(a).........................................................          1.2
(b).........................................................          5.9
(c).........................................................          1.2
   Section 317
(a)(1)......................................................          5.3
(a)(2)......................................................          5.5
(b).........................................................          3.3
   Section 318
(a).........................................................          13.7

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     This INDENTURE dated as of [o], among Luminent Mortgage Trust 200_-_, a
Delaware statutory trust, as Issuer (the "ISSUER"), [o], as Master Servicer (the
"MASTER SERVICER") and [o], as Indenture Trustee (the "INDENTURE TRUSTEE"),

                              PRELIMINARY STATEMENT

     The Issuer has duly authorized the execution and delivery of this Indenture
to provide for its Luminent Mortgage Trust 200_-_, Mortgage-Backed Notes, Series
200_-_ (the "NOTES"), issuable as provided in this Indenture. All covenants and
agreements made by the Issuer herein are for the benefit and security of the
Holders of the Notes and the Note Insurer. The Issuer is entering into this
Indenture, and the Indenture Trustee is accepting the trusts created hereby, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged. All things necessary to make this Indenture a valid agreement of
the Issuer in accordance with its terms have been done.

                                 GRANTING CLAUSE

     Subject to the terms of this Indenture, the Issuer hereby Grants on the
Closing Date to the Indenture Trustee, as Indenture Trustee for the benefit of
the Holders of the Notes, all of the Issuer's right, title and interest in and
to:

     (i) the Mortgage Loans listed on Schedule I to this Indenture (including
property that secures a Mortgage Loan that becomes REO Property), including the
related Mortgage Loan Files delivered or to be delivered to the Indenture
Trustee and all payments of principal and interest received, collected or
otherwise recovered in respect of principal and interest after the Cut-off Date.

     (ii) the Issuer's rights and benefits but none of its obligations under the
Sale Agreement (including the Issuer's right to cause the Depositor to
repurchase Mortgage Loans from the Issuer under certain circumstances described
therein);

     (iii) the Issuer's rights and benefits but none of its obligations under
the Servicing Agreements;

     (iv) the Issuer's rights and benefits but none of its obligations under the
Trust Agreement;

     (v) the Issuer's rights and benefits but none of its obligations under the
Acknowledgments;

     (vi) the Trust Accounts, all amounts and property in the Trust Accounts
from time to time, and the Security Entitlements (as defined in the UCC) to all
Financial Assets credited to the Trust Accounts from time to time;

     (vii) all other property of the Trust from time to time;

     (viii) all present and future claims, demands, causes of action and chooses
in action in respect of any or all of the foregoing; and

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     (ix) all payments on or under and all proceeds of every kind and nature
whatsoever in respect of any or all of the foregoing, including all proceeds of
the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "COLLATERAL").

     The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes and to
secure (i) the payment of all amounts due on the Notes in accordance with their
terms, (ii) the payment of all other sums payable under the Indenture with
respect to the Notes, and (iii) compliance with the provisions of this
Indenture, all as provided in this Indenture.

     The Indenture Trustee, as Indenture Trustee on behalf of the holders of the
Notes acknowledges such Grant, accepts the trusts hereunder and agrees to
perform the duties required of it in this Indenture in accordance with its
terms.

     Each Holder, by acceptance of the Notes and the Indenture Trustee agree and
acknowledge that each item of Collateral that is physically delivered to the
Indenture Trustee will be held by the Indenture Trustee (or its custodian) in
trust for the benefit of the Noteholders under the terms of this Agreement.

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1 Definitions. Except as otherwise specified herein or as the
context may otherwise require, (i) capitalized terms used but not otherwise
defined herein shall have the respective meanings set forth in the Servicing
Agreement for all purposes of this Indenture and (ii) the following terms have
the respective meanings set forth below for all purposes of this Indenture.

     ACT: The meaning specified in Section 13.3(a).

     ACCOUNT: Each of the Collection Account, the Distribution Account
(including each sub-account thereof), the Financial Asset Custodial Account and
the Escrow Accounts.

     ACCRUAL PERIOD: With respect to any Distribution Date and with respect to
the Notes, the calendar month to immediately preceding the month of such
Distribution Date; and with respect to the LIBOR Notes the period commencing on
the prior Distribution Date immediately preceding the month in which such
Distribution Date occurs and ending at the close of business on the calendar day
immediately preceding the Distribution Date.

     ACKNOWLEDGEMENT: Each of the Assignment, Assumption and Recognition
Agreements related to the Servicing Agreements, which are listed on Schedule V
hereto, assigning rights under the Purchase Agreements and the Servicing
Agreements from the Seller to the Depositor and from the Depositor to the
Indenture Trustee for the benefit of the Noteholders.

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     ADDITIONAL COLLATERAL: With respect to any Additional Collateral Mortgage
Loan, the marketable securities and other acceptable collateral pledged as
collateral pursuant to the related pledge agreements.

     ADDITIONAL COLLATERAL MORTGAGE LOAN: Each Mortgage Loan identified as such
in the Mortgage Loan Schedule.

     ADJUSTABLE RATE MORTGAGE LOAN: Any Mortgage Loan in which the related
Mortgage Note contains a provision whereby the Mortgage Rate is adjusted from
time to time in accordance with the terms of such Mortgage Note.

     ADVANCE: Any Monthly Advance or Servicer Advance.

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

     APPRAISED VALUE: With respect to any Mortgage Loan, the Appraised Value of
the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; and (ii) with respect to a
Refinancing Mortgage Loan, the value of the Mortgaged Property based upon the
appraisal made at the time of the origination of such Refinancing Mortgage Loan.

     ASSIGNMENT OF MORTGAGE: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
sale of the Mortgage to the Indenture Trustee, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering the Mortgage Loans secured by Mortgaged Properties located
in the same jurisdiction, if permitted by law; provided, however, that the
Indenture Trustee shall not be responsible for determining whether any such
assignment is in recordable form.

     AUTHORIZED OFFICER: With respect to the Trust, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to
the Trust and who is identified on the list of Authorized Officers delivered by
the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may
be modified or supplemented from time to time thereafter).

     AVAILABLE DISTRIBUTION AMOUNT: With respect to any Distribution Date, the
total amount of all cash received by the Indenture Trustee on the Mortgage Loans
from each Servicer or otherwise through the related Remittance Date for deposit
into the Distribution Account in respect of such Distribution Date, including
(1) all scheduled installments of interest (net of the related Servicing Fees
and the Master Servicing Fees) and principal collected on the Mortgage Loans and
due during the Due Period related to such Distribution Date, together with any

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Advances in respect thereof, (2) all Insurance Proceeds, Liquidation Proceeds
and the proceeds of any Additional Collateral from the Mortgage Loans, in each
case for such Distribution Date, (3) all other amounts received from the
Servicer with respect to the sale of any defaulted Mortgage Loans in accordance
with the terms of the related Servicing Agreement during the related Prepayment
Period, (4) all partial or full Principal Prepayments, together with any accrued
interest thereon, identified as having been received from the Mortgage Loans
during the related Prepayment Period, (5) any Compensating Interest Payments
paid by the Master Servicer and/or received from the Servicers in respect of
Prepayment Interest Shortfalls with respect to the Mortgage Loans, (6) the
aggregate Purchase Price of all Defective Mortgage Loans purchased from the
Trust Fund during the related Prepayment Period and (7) any amounts remaining in
the Pre-Funding Account and transferred to the Distribution Account immediately
following the termination of the Pre-Funding Period, minus:

          (A) all related charges and other amounts payable or reimbursable to
          the Master Servicer, the Securities Administrator or the Indenture
          Trustee under this Agreement, up to an aggregate maximum amount of
          $[o] annually, or to the Servicers under the Servicing Agreements;

          (B) in the case of (2), (3) and (4) above, any related unreimbursed
          expenses incurred by the related Servicers in connection with a
          liquidation or foreclosure and any unreimbursed Advances or Servicing
          Advances due to the Master Servicer or the related Servicers;

          (C) any related unreimbursed Non-recoverable Advances due to the
          Master Servicer or the Servicers; and

          (D) in the case of (1) through (4) above, any related amounts
          collected which are determined to be attributable to a subsequent Due
          Period or Prepayment Period.

     AVERAGE SIXTY-DAY DELINQUENCY RATIO: The ratio of the average of the
aggregate Principal Balances of Mortgage Loans delinquent 60 days or more for
the preceding three Due Periods to the average aggregate Scheduled Principal
Balance for the Mortgage Loans for these periods.

     AVERAGE THIRTY-DAY DELINQUENCY RATIO: The ratio of the average of the
aggregate Principal Balances of Mortgage Loans delinquent 30 days or more for
the preceding three Due Periods to the average aggregate Scheduled Principal
Balance for the Mortgage Loans for these periods.

     BANKRUPTCY CODE: The United States Bankruptcy Code of 1986, as amended, as
codified in 11 U.S.C. ss.ss. 101-1330.

     BANKRUPTCY COVERAGE TERMINATION DATE: The date at which the Bankruptcy Loss
Coverage Amount is reduced to zero.

     BANKRUPTCY LOSS: With respect to any Mortgage Loan, losses that are
incurred as a result of a Deficient Valuation or Debt Service Reduction;
provided, however, that a Bankruptcy

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Loss shall not be deemed a Bankruptcy Loss hereunder so long as the related
Servicer has notified the Master Servicer and Indenture Trustee in writing that
the related Servicer is diligently pursuing any remedies that may exist in
connection with the related Mortgage Loan and either (A) the related Mortgage
Loan is not in default with regard to payments due thereunder or (B) delinquent
payments of principal and interest under the related Mortgage Loan and any
related escrow payments in respect of such Mortgage Loan are being advanced on a
current basis by the related Servicer, in either case without giving effect to
any Debt Service Reduction or Deficient Valuation.

     BANKRUPTCY LOSS COVERAGE AMOUNT: As of any Determination Date, the
Bankruptcy Loss Coverage Amount shall equal the Initial Bankruptcy Coverage
Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to
the Notes since the Cut-off Date and (ii) any permissible reductions in the
Bankruptcy Loss Coverage Amount as evidenced by a letter of each Rating Agency
to the Indenture Trustee to the effect that any such reduction will not result
in a downgrading of the then current ratings assigned to the Notes rated by it.

     BOOK-ENTRY NOTES: A beneficial interest in any Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.9.

     BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a day
on which banking institutions in the City of New York, New York, or the State of
[o], or the city in which the Corporate Trust Office of the Indenture Trustee is
located are authorized or obligated by law or executive order to be closed.

     CERTIFICATE OF TRUST: The certificate of trust of the Issuer substantially
in the form of Exhibit B to the Trust Agreement.

     CLEARING AGENCY: An organization registered as a "clearing agency" pursuant
to Section 17A of the Securities Exchange Act of 1934, as amended. As of the
Closing Date, the Clearing Agency shall be The Depository Trust Company.

     CLEARING AGENCY PARTICIPANT: A broker, dealer, bank, other financial
institution or other Person for which from time to time a Clearing Agency
effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

     CLEARSTREAM: Clearstream Banking, societe anonyme, and any successor
thereto.

     CLOSING DATE: [o].

     CODE: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

     COLLATERAL: The meaning specified in the Granting Clause of this Indenture.

     COLLECTION ACCOUNT: The accounts created and maintained by each Servicer
pursuant to its Servicing Agreement with a depository institution in the name of
the related Servicer for the benefit of the Indenture Trustee on behalf of
Noteholders and designated "[____________] in

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trust for the registered holders of Luminent Mortgage Trust 200_-_
Mortgage-Backed Notes, Series 200__-__."

     COMMISSION: The Securities and Exchange Commission.

     COMPENSATING INTEREST PAYMENT: As to any Distribution Date and any
Prepayment Interest Shortfall for a Mortgage Loan during the related Prepayment
Period, the lesser of (1) the Servicing Fee for the related Servicer for such
date and (2) any Prepayment Interest Shortfall for such date.

     COOPERATIVE CORPORATION: The entity that holds title (fee or an acceptable
leasehold estate) to the real property and improvements constituting the
Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

     CONFIDENTIAL INFORMATION: All non-public personal information about the
Mortgagor under the Mortgage Loan that is supplied to the Master Servicer by or
on behalf of the Mortgagor in connection with this Agreement and the
transactions contemplated hereby. Confidential Information shall not include
information which (i) is or becomes generally available to the public other than
as a result of disclosure by the Master Servicer or its subsidiaries,
affiliates, directors, officers, employees, agents or controlling persons; (ii)
was available to the Master Servicer on a non-confidential basis from a Person
other than the Mortgagor prior to its disclosure to the Master Servicer; (iii)
is required to be disclosed by a governmental authority or related governmental
agencies or as otherwise required by law; or (iv) becomes available to the
Master Servicer on a non-confidential basis from a Person other than the
Mortgagor who, to the best knowledge of the Master Servicer, is not otherwise
bound by a confidentiality agreement with the Master Servicer and is not
otherwise prohibited from transmitting the information to the Master Servicer.

     COOPERATIVE LOAN: Any Mortgage Loan secured by Cooperative Shares and a
Proprietary Lease.

     COOPERATIVE PROPERTY: The real property and improvements owned by the
Cooperative Corporation, that includes the allocation of individual dwelling
units to the holders of the shares of the Cooperative Corporation.

     COOPERATIVE SHARES: Shares issued by a Cooperative Corporation.

     CORPORATE TRUST OFFICE: The principal office of the Indenture Trustee at
which at any particular time its corporate trust business shall be administered,
which office at date of execution of this Agreement is located at [o];
Attention: [o], or at such other address as the Indenture Trustee may designate
from time to time by notice to the Noteholders, and the Issuer, or the principal
corporate trust office of any successor Indenture Trustee at the address
designated by such successor Indenture Trustee by notice to the Noteholders and
the Issuer.

     CUMULATIVE REALIZED LOSSES: The aggregate Realized Losses incurred in
respect of Liquidated Mortgage Loans since the Cut-off Date.

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     CURRENT INTEREST: With respect to any Distribution Date and with respect to
each class of Securities, one month's interest accrued during the related
Accrual Period at the applicable Note Interest Rate on Note Principal Amount.

     CURRENT REALIZED LOSS RATIO: With respect to any Distribution Date, the
annualized percentage derived from the fraction, the numerator of which is the
sum of the aggregate Realized Losses in respect of the Assets for the three
preceding Prepayment Periods and the denominator of which is the arithmetic
average of the Pool Scheduled Principal Balances for such Distribution Date and
the preceding two Distribution Dates.

     CUT-OFF DATE: [o].

     CUT-OFF DATE BALANCE: As to any Mortgage Loan, the Scheduled Principal
Balance thereof as of the close of business on the Cut-off Date.

     DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction by a
court of competent jurisdiction in a proceeding under the Bankruptcy Code in the
Scheduled Payment for such Mortgage Loan which became final and non-appealable,
except such a reduction resulting from a Deficient Valuation or any reduction
that results in a permanent forgiveness of principal.

     DEFAULT: Any occurrence that is, or with notice or the lapse of time or
both would become, an Event of Default.

     DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then-outstanding indebtedness under the Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Payment that
results in a permanent forgiveness of principal, which valuation or reduction
results from an order of such court which is final and non-appealable in a
proceeding under the Bankruptcy Code.

     DEFINITIVE NOTES: The meaning specified in Section 2.11.

     DEPOSITOR: Lares Asset Securitization, Inc., a Delaware corporation, or its
successor in interest.

     DEPOSITORY: DTC or any other Person designated by the Issuer as Depository
in the case of Book-Entry Notes.

     DEPOSITORY INSTITUTION: Any depository institution or trust company,
including the Indenture Trustee, that (a) is incorporated under the laws of the
United States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated in the highest rating category by the Rating Agencies, or is otherwise
acceptable to the Rating Agencies.

     DETERMINATION DATE: As to any Distribution Date, the [o]th day of each
month or if such [o]th day is not a Business Day the immediately succeeding
Business Day.

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<PAGE>

     DISTRIBUTION ACCOUNT: The separate Eligible Account created and maintained
by the Indenture Trustee pursuant to Section 9.1 in the name of the Indenture
Trustee for the benefit of the Noteholders and designated "[o] in trust for
registered holders of Luminent Mortgage Trust 200__-__ Mortgage-Backed Notes,
Series 200_-_." Funds in the Distribution Account shall be held in trust for the
Noteholders for the uses and purposes set forth in this Agreement.

     DISTRIBUTION DATE: The [o]th day of each calendar month after the initial
issuance of the Notes, or if such [o]th day is not a Business Day, the next
succeeding Business Day, commencing in [_______________].

     DUE DATE: With respect to any Distribution Date, the first day of the
calendar month in which such Distribution Date occurs, which represents the date
on which a Scheduled Payment is due on each Mortgage Loan under the related
Mortgage Note, exclusive of any grace period.

     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.

     DTC: The Depository Trust Company.

     ELIGIBLE ACCOUNT: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts are held on
deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC (to the limits
established by the FDIC) and the uninsured deposits in which accounts are
otherwise secured such that, as evidenced by an Opinion of Counsel delivered to
the Indenture Trustee and to each Rating Agency, the Noteholders have a claim
with respect to the funds in such account or a perfected first priority security
interest against any collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution or trust company in which
such account is maintained, or (iii) a trust account or accounts maintained with
(a) the trust department of a federal or state chartered depository institution
or (b) a trust company, acting in its fiduciary capacity or (iv) any other
account acceptable to each Rating Agency. Eligible Accounts may bear interest,
and may include, if otherwise qualified under this definition, accounts
maintained with the Indenture Trustee.

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

     ESCROW ACCOUNT: With respect to each Servicing Agreement, as "Escrow
Account" is defined therein.

     EUROCLEAR: Morgan Guaranty Trust Company of New York, Brussels office, as
operator of the Euroclear System.

     EVENT OF DEFAULT: As specified in Section 5.1.

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     EXCESS CASH: With respect to any Distribution Date, the amount, if any, by
which the Available Distribution Amount for such Distribution Date exceeds the
sum of (i) the Note Interest for the related Distribution Date, and (ii) the
Monthly Principal for the related Distribution Date.

     EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

     EXECUTIVE OFFICER: With respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, Executive
Vice President, any Vice President, the Secretary or the Treasurer of such
corporation; and with respect to any partnership, any general partner thereof.

     EXPENSE RATE: As to each Mortgage Loan, the sum of the related Servicing
Fee Rate, Master Servicing Fee Rate and the Indenture Trustee Fee Rate.

     FANNIE MAE: The entity formerly known as the Federal National Mortgage
Association, a federally chartered and privately owned corporation organized and
existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

     FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.

     FINANCIAL ASSETS: Those mortgage-backed securities issued by Fannie Mae,
Freddie Mac, Ginnie Mae or one or more private issuers identified on Schedule
II.

     FINANCIAL ASSET CUSTODIAL ACCOUNT: The Eligible Account established and
maintained under Section 9.6(b) into which any Financial Assets will be
deposited on the Closing Date.

     FIRREA: The Financial Institutions Reform, Recovery, and Enforcement Act of
1989, as amended.

     FITCH: Fitch Ratings, Inc., or any successor in interest. The address for
notices to Fitch shall be 1 State Street Plaza, New York, New York, 10004,
Attention: [o] or such other address as Fitch may hereunder furnish to the
Depositor or the Master Servicer.

     FORMULA PRINCIPAL AMOUNT: As to any Distribution Date, the sum (a) the
principal portion of each Scheduled Payment (without giving effect, prior to the
Bankruptcy Coverage Termination Date, to any reductions thereof caused by any
Debt Service Reductions or Deficient Valuations) due on each Mortgage Loan on
the related Due Date, (b) the Scheduled Principal Balance of each Mortgage Loan
that was repurchased by the Seller or the Servicer pursuant to this Agreement as
of such Distribution Date, (c) the Substitution Adjustment Amount in connection
with any Deleted Mortgage Loan received with respect to such Distribution Date,
(d) any Insurance Proceeds or Liquidation Proceeds allocable to recoveries of
principal of Mortgage Loans that are not yet Liquidated Mortgage Loans received
during the calendar month preceding the month of such Distribution Date, (e)
with respect to each Mortgage Loan that became a Liquidated Mortgage Loan during
the calendar month preceding the month of such Distribution Date, the amount of
the Liquidation Proceeds allocable to principal received during the calendar
month preceding the month of such Distribution Date with respect to such
Mortgage Loan and (f) all Principal Prepayments received during the related
Prepayment Period.

                                        9

<PAGE>

     FRAUD LOAN: A Liquidated Mortgage Loan as to which a Fraud Loss has
occurred.

     FRAUD LOSSES: Realized Losses on Mortgage Loans as to which a loss is
sustained by reason of a default arising from fraud, dishonesty or
misrepresentation in connection with the related Mortgage Loan, including a loss
by reason of the denial of coverage under any related PMI Policy because of such
fraud, dishonesty or misrepresentation.

     FRAUD LOSS COVERAGE AMOUNT: As of the Closing Date, $[o] subject to
reduction from time to time, by the amount of Fraud Losses allocated to the
Notes. In addition, on each anniversary of the Cut-off Date, the Fraud Loss
Coverage Amount will be reduced as follows: (a) on the first, second, third and
fourth anniversaries of the Cut-off Date, to an amount equal to the lesser of
(i) [1]%, in the case of the first anniversary, and [0.5]%, in the case of the
second, third and fourth anniversaries of the then current Pool Scheduled
Principal Balance and (ii) the excess of the Fraud Loss Coverage Amount as of
the preceding anniversary of the Cut-off Date over the cumulative amount of
Fraud Losses allocated to the Notes since such preceding anniversary; and (b) on
the fifth anniversary of the Cut-off Date, to zero.

     FRAUD LOSS COVERAGE TERMINATION DATE: The point in time at which the Fraud
Loss Coverage Amount is reduced to zero.

     FREDDIE MAC: A corporate instrumentality of the United States, formerly
known as the Federal Home Loan Mortgage Corporation, created and existing under
Title III of the Emergency Home Finance Act of 1970, as amended, or any
successor thereto.

     GLOBAL SECURITIES: The meaning specified in Section 2.1.

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

     HOLDER or NOTEHOLDER: The registered holder of any Note as recorded on the
books of the Note Registrar except that, solely for the purposes of taking any
action or giving any consent pursuant to this Agreement, any Note registered in
the name of the Seller, the Indenture Trustee or any Affiliate thereof shall be
deemed not to be outstanding in determining whether the requisite percentage
necessary to effect any such consent has been obtained, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any
such consent, only Notes which a Responsible Officer of the Indenture Trustee
knows to be so held shall be disregarded. The Indenture Trustee may request and
conclusively rely on certifications by the Seller in determining whether any
Notes are registered to an Affiliate of the Seller.

                                       10

<PAGE>

     INDENTURE TRUSTEE: [o] and its permitted successors and assigns and, if a
successor Indenture Trustee is appointed hereunder, such successor.

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

     INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 13.1, made by an Independent
appraiser or other expert appointed by an Issuer Order and approved by the
Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

     INDIRECT PARTICIPANT: A broker, dealer, bank or other financial institution
or other Person that clears through or maintains a custodial relationship with a
Depository Participant.

     INITIAL BANKRUPTCY COVERAGE AMOUNT: $[o].

     INITIAL CUT-OFF DATE POOL PRINCIPAL BALANCE: $[o].

     INITIAL PURCHASE DATE: The Distribution Date following the month in which
the Pool Balance is less than [o]% of the Cut-off Date Balance.

     INSURANCE POLICY: With respect to any Mortgage Loan included in the Trust
Fund, any insurance policy, including all riders and endorsements thereto in
effect, including any replacement policy or policies therefor.

     INSURANCE PROCEEDS: Proceeds paid by an insurer pursuant to any Insurance
Policy (excluding proceeds required to be applied to the restoration and repair
of the related Mortgaged Property or released to the Mortgagor), in each case
other than any amount included in such Insurance Proceeds in respect of Insured
Expenses.

     INSURED EXPENSES: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

     INTEREST DISTRIBUTION AMOUNT: On any Distribution Date, the Current
Interest for the Notes, as reduced by Net Prepayment Interest Shortfalls, Relief
Act Reductions and the interest portion of Excess Losses. Any such shortfalls
and losses shall be allocated among the Notes proportionately on the basis of
the Interest Distribution Amount otherwise payable thereon.

     ISSUER: Luminent Mortgage Trust 200_-__, or any successor and, for purposes
of any provision contained herein and required by the TIA, each other obligor on
the Notes.

                                       11

<PAGE>

     ISSUER ORDER and ISSUER REQUEST: A written order or request signed in the
name of the Issuer by any one of its Authorized Officers and delivered to the
Indenture Trustee.

     LATEST POSSIBLE MATURITY DATE: The Distribution Date following the third
anniversary of the scheduled maturity date of the Mortgage Loan having the
latest scheduled maturity date as of the Cut-off Date.

     LIBOR: The London interbank offered rate for one-month United States dollar
deposits established on each LIBOR Determination Date pursuant to Section
9.7(a).

     LIBOR BUSINESS DAY: Any day on which banks in London, England and the City
of New York are open and conducting transactions in foreign currency and
exchange.

     LIBOR DETERMINATION DATE: The second Business Day immediately preceding the
commencement of each Accrual Period for any LIBOR Notes.

     LIQUIDATED MORTGAGE LOAN: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
related Servicer has certified (in accordance with its Servicing Agreement) that
it has received all amounts it expects to receive in connection with the
liquidation of such Mortgage Loan, including the final disposition of an REO
Property.

     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 PMI Policy for
reasons other than the Master Servicer's failure to ensure the maintenance of or
compliance with a PMI 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: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of defaulted Mortgage Loans,
whether through Indenture Trustee's sale, foreclosure sale or otherwise or
amounts received in connection with any condemnation or partial release of a
Mortgaged Property and any other proceeds received in connection with an REO
Property.

     LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan and as to any date
of determination, the fraction (expressed as a percentage) the numerator of
which is the principal balance of the related Mortgage Loan at such date of
determination and the denominator is the lesser of purchase price or the
Appraised Value of the related Mortgaged Property.

     LOST MORTGAGE NOTE: Any Mortgage Note the original of which was permanently
lost or destroyed and has not been replaced.

     MAJORITY: On any date, Holders of the Notes representing more than 50% of
the Note Principal Amount of the Notes then outstanding.

                                       12

<PAGE>

     MASTER SERVICER: [o] and its successors and assigns in its capacity as
Master Servicer.

     MASTER SERVICER EVENT OF DEFAULT: As defined in Section 12.8 hereof.

     MASTER SERVICING FEE: As to each Mortgage Loan and any Distribution Date,
an amount equal to (i) one-twelfth of the Master Servicing Fee Rate multiplied
by the Scheduled Principal Balance of such Mortgage Loan as of the Due Date in
the prior calendar month plus (ii) all investment earnings derived from
principal and interest collections received on the Mortgage Loans on deposit in
the Distribution Account during the period from and including the Remittance
Date to but excluding such Distribution Date.

     MASTER SERVICING FEE RATE: With respect to each Mortgage Loan, [o]% per
annum.

     MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

     MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

     MIN: The Mortgage Identification Number for Mortgage Loans registered with
MERS on the MERS(R) System.

     MOM LOAN: With respect to any Mortgage Loan as to which MERS acts as the
mortgagee of such Mortgage Loan, solely as nominee for the originator of such
Mortgage Loan and its successors and assigns, at the origination thereof.

     MONTHLY ADVANCE: With respect to a Mortgage Loan, the payments required to
be made by the Master Servicer or the applicable Servicer with respect to any
Distribution Date pursuant to this Agreement or the Servicing Agreements, as
applicable, the amount of any such payment being equal to the aggregate of
payments of principal and interest (net of the Master Servicing Fee and/or the
applicable Servicing Fee and net of any net income in the case of any REO
Property) of the Mortgage Loans that were due on the related Due Date and not
received as of the close of business on the related Determination Date, less the
aggregate amount of any such delinquent payments that the Master Servicer or the
Servicers, as the case may be, have determined would constitute Non-recoverable
Advances if advanced.

     MONTHLY STATEMENT: The statement delivered to the Noteholders pursuant to
Section 9.8.

     MOODY'S: Moody's Investors Service, Inc., or any successor thereto. The
address for notices to Moody's shall be Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007, Attention: Residential Pass-Through
Monitoring, or such other address as Moody's may hereafter furnish to the
Depositor or the Master Servicer.

     MORTGAGE: The mortgage, deed of trust or other instrument creating a first
lien on an estate in fee simple or leasehold interest in real property securing
a Mortgage Note.

                                       13

<PAGE>

     MORTGAGE FILE: The mortgage documents listed in the Sale Agreement
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Indenture Trustee to be added to the Mortgage File pursuant to this
Agreement.

     MORTGAGE LOAN: Each of the mortgage loans transferred and assigned to the
Indenture Trustee pursuant to the provisions hereof as from time to time are
held as a part of the Trust Fund (including any REO Property), the mortgage
loans so held being identified in the Mortgage Loan Schedule, notwithstanding
foreclosure or other acquisition of title of the related Mortgaged Property.

     MORTGAGE LOAN SCHEDULE: The list of Mortgage Loans (as from time to time
amended by the Depositor or the related Servicer to reflect the addition of
Substitute Mortgage Loans and the deletion of Deleted Mortgage Loans pursuant to
the provisions of this Agreement) transferred to the Indenture Trustee as part
of the Trust Fund and from time to time subject to this Agreement, attached
hereto as Schedule I, setting forth, among other things, the following
information with respect to each Mortgage Loan:

          (i) the loan number;

          (ii) the Mortgagor's name and the street address of the Mortgaged
          Property, including the zip code;

          (iii) the maturity date;

          (iv) the original principal balance;

          (v) the Cut-off Date Balance;

          (vi) the first payment date of the Mortgage Loan;

          (vii) the Scheduled Payment in effect as of the Cut-off Date;

          (viii) the Loan-to-Value Ratio at origination;

          (ix) a code indicating whether the residential dwelling at the time of
          origination was represented to be owner-occupied;

          (x) a code indicating whether the residential dwelling is either (a) a
          detached single family dwelling (b) a dwelling in a de minimis PUD,
          (c) a condominium unit or PUD (other than a de minimis PUD), (d) a
          two- to four-unit residential property or (e) a Cooperative Property;

          (xi) the Mortgage Rate;

          (xii) a code indicating whether the Mortgage Loan is a Lender PMI
          Mortgage Loan and, in the case of any Lender PMI Mortgage Loan, a
          percentage representing the amount of the related interest premium
          charged to the borrower;

                                       14

<PAGE>

          (xiii) the purpose for the Mortgage Loan;

          (xiv) the type of documentation program pursuant to which the Mortgage
          Loan was originated; and

          (xv) the Servicing Fee for the Mortgage Loan.

     Such schedule shall also set forth the total of the amounts described under
(iv) and (v) above for all of the Mortgage Loans.

     MORTGAGE NOTE: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan, including any
riders or addenda thereto.

     MORTGAGE RATE: With respect to each Mortgage Loan, the annual rate at which
interest accrues on such Mortgage Loan from time to time in accordance with the
provisions of the related Mortgage Note, net of any interest premium charged by
the mortgagee to obtain or maintain any PMI Policy.

     MORTGAGED PROPERTY: With respect to each Mortgage Loan, the underlying real
property servicing payments of the Mortgage Note (or, with respect to a
Cooperative Loan, the related Cooperative Shares and Proprietary Lease), plus,
in the case of each Additional Collateral Mortgage Loan, the Additional
Collateral.

     MORTGAGOR: The obligor(s) on a Mortgage Note.

     OVERCOLLATERALIZATION AMOUNT: As to any Distribution Date, the amount, if
any, by which (x) the Aggregate Principal Balance of the Mortgage Loans for such
Distribution Date exceeds (y) the Note Principal Balance for such Distribution
Date, after taking into account the Monthly Principal (disregarding any
permitted reduction thereof in Monthly Principal due to an Overcollateralization
surplus made on such Distribution Date) to be applied in reduction of the Note
Principal Balance on such Distribution Date. If the Aggregate Principal Balance
of the Mortgage Loans is less than the Note Principal Balance for such
Distribution Date, determined as provided above, the Overcollateralization
Amount for such Distribution Date shall be [o].

     OVERCOLLATERIZATION DEFICIT: As to any Distribution Date, the amount, if
any, by which the Note Principal Balance on such Distribution Date (after taking
into account any payments to be paid on such Distribution Date in reduction of
the Note Principal Balance) exceeds the Aggregate Principal Balance of the
Mortgage Loans for such Distribution Date. If the Aggregate Principal Balance of
the Mortgage Loans as determined pursuant to the preceding sentence is greater
than the Note Principal Balance for such Distribution Date determined as
provided above, the Overcollateralization Deficit for such Distribution Date
shall be [o].

     OVERCOLLATERALIZATION SURPLUS: As to any Distribution Date, the amount, if
any, by which (x) the Overcollateralization Amount on such Distribution Date
exceeds (y) the Required Overcollaterlization Amount on such Distribution Date.

                                       15

<PAGE>

     NET LIQUIDATION PROCEEDS: As to any Liquidated Mortgage Loan, the
Liquidation proceeds less the sum of related unreimbursed Liquidation Expenses,
Master Servicing Fees, Servicing Advances and Monthly Advances.

     NET MORTGAGE RATE: As to each Mortgage Loan, and at any time, the Mortgage
Rate less the related Expense Rate.

     NET PREPAYMENT INTEREST SHORTFALLS: As to any Distribution Date, the amount
by which the aggregate of Prepayment Interest Shortfalls during the related
Prepayment Period exceeds the Compensating Interest Payments made with respect
to such Distribution Date.

     NET WAC: As to any Distribution Date, a per annum rate equal to the
weighted average Net Mortgage Rate of the Mortgage Loans.

     NON-RECOVERABLE ADVANCE: Any portion of an Monthly Advance or Servicer
Advance previously made or proposed to be made by the related Servicer or the
Master Servicer that (as certified in an Officer's Certificate of such party),
in the good faith judgment of the such party, will not be ultimately recoverable
by such party, from the related Mortgagor, related Liquidation Proceeds or
otherwise.

     NOTE DEPOSITORY AGREEMENT: The agreement dated [o], among the Issuer, the
Indenture Trustee and The Depository Trust Company, as the initial Clearing
Agency, relating to the Book-Entry Notes.

     NOTE INTEREST RATE: [o]% per annum.

     NOTE OWNER: With respect to a Book-Entry Note, the Person who is the
beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency),
and with respect to a Definitive Note, the Person that is the beneficial owner
of such Note as reflected in the Note Register.

     NOTE PRINCIPAL AMOUNT: With respect to the any Note at any date, the
maximum dollar amount of principal to which the Holder thereof is then entitled
hereunder, such amount being equal to the Denomination thereof minus the sum of
(i) all distributions of principal previously made with respect hereto and (ii)
all Realized Losses allocated thereto. Unless specifically provided herein to
the contrary, Note Principal Amounts shall be determined as of the close of
business of the immediately preceding Distribution Date, after giving effect to
all distribution made on such date.

     NOTE REGISTER and NOTE REGISTRAR: The respective meanings specified in
Section 2.3.

     OFFICER'S CERTIFICATE: A certificate signed by any Authorized Officer of
the Issuer (or by an officer of the Depositor pursuant to the Administration
Agreement), under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 13.1, and delivered to the Indenture
Trustee.

                                       16

<PAGE>

     OPINION OF COUNSEL: One or more written opinions of counsel who may, except
as otherwise expressly provided in this Indenture, be employees of or counsel to
the Issuer and who shall be satisfactory to the Indenture Trustee, which opinion
or opinions shall be addressed to the Indenture Trustee, as Indenture Trustee,
and shall comply with any applicable requirements of Section 13.1 and shall be
in form and substance satisfactory to the Indenture Trustee.

     OPTIONAL TERMINATION: The termination of the trust created hereunder in
connection with the purchase of the Mortgage Loans.

     OPTIONAL TERMINATION PURCHASE PRICE: With respect to a Optional
Termination, a price equal to the sum of (i) [o]% of the aggregate outstanding
principal balance of the Mortgage Loans plus accrued interest thereon at the
applicable Mortgage Rate, and (b) the fair market value of all other property
being purchased.

     OTS: The Office of Thrift Supervision.

     OUTSTANDING: With respect to any Note and as of the date of determination,
any Note theretofore authenticated and delivered under this Indenture except:

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

          (ii) Notes or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Indenture Trustee
     or any Paying Agent in trust for the related Noteholders; and

          (iii) Notes in exchange for or in lieu of which other Notes have been
     authenticated and delivered pursuant to this Indenture unless proof
     satisfactory to the Indenture Trustee is presented that any such Notes are
     held by a bona fide purchaser; provided, that in determining whether the
     Holders of the requisite Outstanding Amount of the Notes have given any
     request, demand, authorization, direction, notice, consent, or waiver
     hereunder or under any other Operative Agreement, Notes owned by the
     Issuer, any other obligor upon the Notes, the Seller, or any Affiliate of
     any of the foregoing Persons shall be disregarded and deemed not to be
     Outstanding, except that, in determining whether the Indenture Trustee
     shall be protected in relying upon any such request, demand, authorization,
     direction, notice, consent, or waiver, only Notes that a Responsible
     Officer of the Indenture Trustee knows to be so owned shall be so
     disregarded. Notes so owned that have been pledged in good faith may be
     regarded as Outstanding if the pledgee establishes to the satisfaction of
     the Indenture Trustee the pledgee's right so to act with respect to such
     Notes and that the pledgee is not the Issuer, any other obligor upon the
     Notes, the Seller or any Affiliate of any of the foregoing Persons.

     OUTSTANDING AMOUNT: The aggregate of the Note Principal Amounts of all
Notes Outstanding at the date of determination.

     PAYING AGENT: The Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 hereof
and is authorized by the

                                       17

<PAGE>

Issuer to make payments to and distributions from the Distribution Account,
including payments of principal of or interest on the Notes on behalf of the
Issuer.

     PENALTY PERIOD: As to any Mortgage Loan, the period of time during which
the borrower will be assessed a Prepayment Premium for any Principal Prepayment
during such time.

     PERCENTAGE INTEREST: As defined in the Trust Agreement.

     PERMITTED INVESTMENTS: At any time, any one or more of the following
obligations and securities:

          (i) obligations of the United States or any agency thereof, provided
          such obligations are backed by the full faith and credit of the United
          States;

          (ii) general obligations of or obligations guaranteed by any state of
          the United States or the District of Columbia receiving the highest
          long-term debt rating of each Rating Agency, or such lower rating as
          will not result in the downgrading or withdrawal of the ratings then
          assigned to the Notes by each Rating Agency;

          (iii) commercial or finance company paper which is then receiving the
          highest commercial or finance company paper rating of each Rating
          Agency, or such lower rating as will not result in the downgrading or
          withdrawal of the ratings then assigned to the Notes by each Rating
          Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
          acceptances issued by any depository institution or trust company
          incorporated under the laws of the United States or of any state
          thereof and subject to supervision and examination by federal and/or
          state banking authorities, provided that the commercial paper and/or
          long term unsecured debt obligations of such depository institution or
          trust company (or in the case of the principal depository institution
          in a holding company system, the commercial paper or long-term
          unsecured debt obligations of such holding company, but only if
          Moody's is not a Rating Agency) are then rated one of the two highest
          long-term and the highest short-term ratings of each Rating Agency for
          such securities, or such lower ratings as will not result in the
          downgrading or withdrawal of the rating then assigned to the Notes by
          either Rating Agency;

          (v) demand or time deposits or certificates of deposit issued by any
          bank or trust company or savings institution to the extent that such
          deposits are fully insured by the FDIC;

          (vi) guaranteed reinvestment agreements issued by any bank, insurance
          company or other corporation containing, at the time of the issuance
          of such agreements, such terms and conditions as will not result in
          the downgrading or withdrawal of the rating then assigned to the Notes
          by either Rating Agency;

                                       18

<PAGE>

          (vii) repurchase obligations with respect to any security described in
          clauses (i) and (ii) above, in either case entered into with a
          depository institution or trust company (acting as principal)
          described in clause (iv) above;

          (viii) units of a taxable money-market portfolio having the highest
          rating assigned by each Rating Agency and restricted to obligations
          issued or guaranteed by the United States of America or entities whose
          obligations are backed by the full faith and credit of the United
          States of America and repurchase agreements collateralized by such
          obligations including money-market portfolios for which the Indenture
          Trustee, the Master Servicer, the Securities Administrator or any of
          its Affiliates is investment manager or advisor; and

          (ix) such other investments bearing interest or sold at a discount
          acceptable to each Rating Agency as will not result in the downgrading
          or withdrawal of the rating then assigned to the Notes by either
          Rating Agency, as evidenced by a signed writing delivered by each
          Rating Agency

provided, that no such instrument shall be a Permitted Investment if such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument.

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

     PMI POLICY: Each policy of primary mortgage guaranty insurance or any
replacement policy therefor with respect to any Mortgage Loan.

     POOL SCHEDULED PRINCIPAL BALANCE: As to any Distribution Date, the
aggregate of the Scheduled Principal Balances of the Mortgage Loans which were
Outstanding Mortgage Loans on the Due Date in the month preceding the month of
such Distribution Date.

     PREDECESSOR NOTE: With respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.4 in lieu of a mutilated, lost, destroyed or
stolen Note shall be deemed to evidence the same debt as the mutilated, lost,
destroyed or stolen Note.

     PRE-FUNDING ACCOUNT: The account established and maintained pursuant to
Section 9.5.

     PRE-FUNDED AMOUNT: $ [o].

     PRE-FUNDING PERIOD: The period beginning on the Closing Date and ending on
the earlier of (i) the close of business on _______, (ii) the date on which
there is $100,000 or less (exclusive of investment earnings) remaining in the
Pre-Funding Account, or (iii) the date on which an Event of Default occurs.

                                       19

<PAGE>

     PREPAYMENT INTEREST SHORTFALL: With respect to any full or partial
Principal Prepayment of a Mortgage Loan, the excess, if any, of (i) one full
month's interest at the applicable Mortgage Rate on the outstanding principal
balance of such Mortgage Loan immediately prior to such Principal Prepayment
over (ii) the amount of interest actually received from the Mortgagor with
respect to such Mortgage Loan in connection with such Principal Prepayment.

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

     PREPAYMENT PREMIUM: As to any Mortgage Loan, any payment required to be
made in connection with any Principal Prepayment prior to the expiration or
lapse of the applicable Penalty Period.

     PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date will be an amount
equal to (A) the aggregate of (i) all scheduled payments of principal received
with respect to the Mortgage Loans and due during the related Due Period, and
all other amounts collected, received or otherwise recovered in respect of
principal of the Mortgage Loans (including Principal Prepayments, but not
including Payments Ahead that are not allocable to principal for the related Due
Period) during or in respect of the related Due Period, and (ii) the aggregate
of the amounts allocable to principal deposited in the Distribution Account on
the related Remittance Date by the Seller, the Depositor, the related Servicer
or the Master Servicer in connection with a repurchase, substitution or removal
of any Mortgage Loan pursuant to the Indenture reduced by (B) the amount of any
Overcollateralization Surplus with respect to such Distribution Date.

     PRINCIPAL PREPAYMENT: Any Mortgagor payment of principal or other recovery
of principal on a Mortgage Loan that is recognized as having been received or
recovered in advance of its scheduled Due Date and applied to reduce the
principal balance of the Mortgage Loan[, which is not accompanied by an amount
representing scheduled interest due on any date or dates in any month or months
subsequent to the month of prepayment].

     PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

     PROPRIETARY LEASE: With respect to any Cooperative Property, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Cooperative Shares.

     PROSPECTUS: The Prospectus Supplement together with the accompanying
prospectus dated [o], relating to the Notes.

     PROSPECTUS SUPPLEMENT: The Prospectus Supplement dated [o], relating to the
Notes.

     PUD: Planned Unit Development.

     PURCHASE AGREEMENT: Any of the mortgage purchase agreements listed in
Schedule IV hereto, as each such agreement may be amended or supplemented from
time to time as permitted hereunder.

                                       20

<PAGE>

     PURCHASE PRICE: With respect to any Mortgage Loan required to be purchased
by the Depositor pursuant to this Agreement, by the Servicers pursuant to the
Servicing Agreements, or by the Seller pursuant to the Purchase Agreements, an
amount equal to the sum of (i) 100% of the unpaid principal balance of the
Mortgage Loan on the date of such purchase, and (ii) accrued interest thereon at
the applicable Mortgage Rate (or at the applicable Adjusted Mortgage Rate if (x)
the purchaser is any Servicer or (y) if the purchaser is the Seller and the
Seller is any Servicer) from the date through which interest was last paid by
the Mortgagor to the Due Date in the month in which the Purchase Price is to be
distributed to Noteholders.

     QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified as
such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as a Fannie
Mae-approved mortgage insurer and having a claims paying ability rating of at
least "AA" or equivalent rating by a nationally recognized statistical rating
organization. Any replacement insurer with respect to a Mortgage Loan must have
at least as high a claims paying ability rating as the insurer it replaces had
on the Closing Date.

     RATING: The rating initially assigned to the Notes by the Rating Agencies,
as evidenced by a letter from the Rating Agencies.

     RATING AGENCY: Means each of S&P, Moody's and Fitch. If any such
organization or a successor is no longer in existence, "Rating Agency" shall be
such nationally recognized statistical rating organization, or other comparable
Person, as is designated by the Depositor, notice of which designation shall be
given to the Indenture Trustee. References herein to a given rating category of
a Rating Agency shall mean such rating category without giving effect to any
modifiers.

     RATING AGENCY CONDITION: With respect to any action to which the Rating
Agency Condition applies, that the Rating Agencies shall have been given [ o ]
days (or such shorter period acceptable to the Rating Agencies) prior notice of
any action to which the Rating Agency Condition applies and that the Rating
Agencies shall have notified the Depositor, the Owner Trustee, the Indenture
Trustee, the Master Servicer and the Securities Administrator in writing that
such proposed action will not result in a reduction or withdrawal of the then
current rating of the Notes (if any).

     REALIZED LOSS: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Scheduled Principal Balance of the Mortgage
Loan) as of the date of such liquidation, equal to (i) the Scheduled Principal
Balance of the Liquidated Mortgage Loan as of the date of such liquidation, plus
(ii) interest at the Net Mortgage Rate from the Due Date as to which interest
was last paid or advanced (and not reimbursed) to Noteholders up to the Due Date
in the month in which Liquidation Proceeds are required to be distributed on the
Scheduled Principal Balance of such Liquidated Mortgage Loan from time to time,
minus (iii) the Liquidation Proceeds and the proceeds of any Additional
Collateral, if any, received during the month in which such liquidation
occurred, to the extent applied as recoveries of interest at the Net Mortgage
Rate and to principal of the Liquidated Mortgage Loan. With respect to each

                                       21

<PAGE>

Mortgage Loan which has become the subject of a Deficient Valuation, if the
principal amount due under the related Mortgage Note has been reduced, the
difference between the principal balance of the Mortgage Loan outstanding
immediately prior to such Deficient Valuation and the principal balance of the
Mortgage Loan as reduced by the Deficient Valuation. With respect to each
Mortgage Loan which has become the subject of a Debt Service Reduction and any
Distribution Date, the amount, if any, by which the principal portion of the
related Scheduled Payment has been reduced.

     REDEMPTION DATE: In the case of a redemption of the Notes pursuant to
Section 11.1 hereof, the Distribution Date specified by the Indenture Trustee
pursuant to Section 11.2.

     REDEMPTION PRICE: An amount equal to the sum of (1) 100% of the aggregate
Note Principal Amount, and (2) the aggregate Current Interest and interest
remaining unpaid from previous Distribution Dates.

     REFINANCING MORTGAGE LOAN: Any Mortgage Loan originated in connection with
the refinancing of an existing mortgage loan.

     REGISTERED HOLDER: The Person in whose name a Note is registered on the
Note Register on the applicable Record Date.

     REGISTERED NOTES: Those Notes which are in registered form. Each of the
Notes will be registered Notes.

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

     RELIEF ACT REDUCTIONS: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which (i) interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than (ii) interest accrued thereon for such month pursuant to the Mortgage
Note.

     REMITTANCE DATE: With respect to any Distribution Date, the [18th] Business
Day of the month in which the Distribution Date occurs.

     REO PROPERTY: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

     REQUEST FOR RELEASE: The Request for Release submitted by the related
Servicer to the Indenture Trustee in the form of Exhibit [o] to the Servicing
Agreement.

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

     REQUIRED OVERCOLLATERALIZATION AMOUNT: [o].

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<PAGE>

     REQUIRED RATING: The Notes have received, on the Closing Date, the
following ratings from the Rating Agencies:

[Rating Agency]   [Rating Agency]
---------------   ---------------
    [o]                [o]

     SALE AGREEMENT: The sale agreement dated as of [o], by and between the
Seller and the Depositor, pursuant to which the Mortgage Loans are being sold to
the Depositor.

     SCHEDULED PAYMENT: The scheduled monthly payment on a Mortgage Loan due on
any Due Date allocable to principal and/or interest on such Mortgage Loan which,
unless otherwise specified herein, shall give effect to any related Debt Service
Reduction and any Deficient Valuation that affects the amount of the monthly
payment due on such Mortgage Loan.

     SCHEDULED PRINCIPAL BALANCE: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as defined in
the amortization schedule at the time relating thereto (before any adjustment to
such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous partial Principal Prepayments
and Liquidation Proceeds allocable to principal (other than with respect to any
Liquidated Mortgage Loan) and to the payment of principal due on such Due Date
and irrespective of any delinquency in payment by the related Mortgagor.

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

     SECURITIES ADMINISTRATOR: [o], not in its individual capacity but solely as
Securities Administrator, or any successor in interest, or if any successor
Securities Administrator shall be appointed as herein provided, then such
successor Securities Administrator.

     SELLER: [o] and its successors and assigns, in its capacity as seller of
the Mortgage Loans and the Subsequent Mortgage Loans, if any, to the Depositor
pursuant to the Sale Agreement and the Subsequent Sale Agreement, respectively.

     SERVICER: Each of [o] and [o], as servicers of certain Mortgage Loans
pursuant to their respective Servicing Agreements and their respective
successors and assigns under the Servicing Agreements.

     SERVICING ADVANCES: As defined in the applicable Servicing Agreement and
will generally include all customary, reasonable and necessary out-of-pocket
costs and expenses incurred in the performance by the Servicer of its servicing
obligations, including, but not limited to, the cost of (a) the preservation,
restoration and protection of the Mortgaged Property, (b) any enforcement or
judicial proceedings, including foreclosures, (c) the management and liquidation
of the Mortgaged Property if the Mortgaged Property is acquired in satisfaction
of the Mortgage, and (d) payments made by the Servicer in respect of any taxes,
assessments and other charges which are or may become a lien upon any Mortgaged
Property or any insurance premiums that are required to maintain adequate fire
and hazard insurance coverage for any Mortgaged Property.

                                       23

<PAGE>

     SERVICING AGREEMENTS: Each of the servicing agreements identified on
Schedule V hereto, as each such agreement may have been modified by an
Acknowledgement and as amended or supplemented from time to time as permitted
thereby.

     SERVICING FEE: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (a) one-twelfth of the Servicing Fee Rate
multiplied by (b) the Scheduled Principal Balance of such Mortgage Loan as of
the Due Date in the preceding calendar month.

     SERVICING FEE RATE: With respect to each Mortgage Loan and any Distribution
Date, the rate specified in the related Servicing Agreement.

     SERVICING OFFICER: Any officer of a Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
facsimile signature appear on a list of servicing officers furnished to the
Indenture Trustee by the related Servicer on the Closing Date pursuant to a
Servicing Agreement as such list may from time to time be amended.

     SPECIAL HAZARD COVERAGE TERMINATION DATE: The date on which the Special
Hazard Loss Coverage Amount is reduced to zero.

     SPECIAL HAZARD LOSS: Any Realized Loss suffered by a Mortgaged Property on
account of direct physical loss but not including (i) any loss of a type covered
by a hazard insurance policy or a flood insurance policy required to be
maintained with respect to such Mortgaged Property in the related Servicing
Agreement to the extent of the amount of such loss covered thereby, or (ii) any
loss caused by or resulting from:

          (a) normal wear and tear;

          (b) fraud, conversion or other dishonest act on the part of the
     Indenture Trustee, the Servicer or any of their agents or employees
     (without regard to any portion of the loss not covered by any errors and
     omissions policy);

          (c) errors in design, faulty workmanship or faulty materials, unless
     the collapse of the property or a part thereof ensues and then only for the
     ensuing loss;

          (d) nuclear or chemical reaction or nuclear radiation or radioactive
     or chemical contamination, all whether controlled or uncontrolled, and
     whether such loss be direct or indirect, proximate or remote or be in whole
     or in part caused by, contributed to or aggravated by a peril covered by
     the definition of the term "Special Hazard Loss;"

          (e) hostile or warlike action in time of peace and war, including
     action in hindering, combating or defending against an actual, impending or
     expected attack:

               1. by any government or sovereign power, de jure or de facto, or
          by any authority maintaining or using military, naval or air forces;
          or

               2. by military, naval or air forces; or

               3. by an agent of any such government, power, authority or
          forces;

                                       24

<PAGE>

          (f) any weapon of war employing nuclear fission, fusion or other
     radioactive force, whether in time of peace or war; or

          (g) insurrection, rebellion, revolution, civil war, usurped power or
     action taken by governmental authority in hindering, combating or defending
     against such an occurrence, seizure or destruction under quarantine or
     customs regulations, confiscation by order of any government or public
     authority or risks of contraband or illegal transportation or trade.

     SPECIAL HAZARD LOSS COVERAGE AMOUNT: With respect to the first Distribution
Date, $[o]. With respect to any Distribution Date after the first Distribution
Date, the lesser of (a) the greatest of (i) [1%] of the aggregate of the
principal balances of the Mortgage Loans, (ii) twice the principal balance of
the largest Mortgage Loan and (iii) the aggregate of the principal balances of
all Mortgage Loans secured by Mortgaged Properties located in the single
California postal zip code area having the highest aggregate principal balance
of any such zip code area and (b) the Special Hazard Loss Coverage Amount as of
the Closing Date less the amount, if any, of Special Hazard Losses allocated to
the Notes since the Closing Date. All principal balances for the purpose of this
definition will be calculated as of the first day of the calendar month
preceding the month of such Distribution Date after giving effect to Scheduled
Payments on the Mortgage Loans then due, whether or not paid.

     SPECIAL HAZARD MORTGAGE LOAN: A Liquidated Mortgage Loan as to which a
Special Hazard Loss has occurred.

     S&P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. The address for notices to S&P shall be Standard & Poor's
Ratings Services, 55 Water Street, New York, New York 10041, Attention: Mortgage
Surveillance Monitoring, or such other address as S&P may hereafter furnish to
the Depositor and the Servicer.

     STATE: Any one of the 50 States of the United States of America or the
District of Columbia.

     SUBSEQUENT CUT-OFF DATE: The date as determined in the related Subsequent
Sale Agreement.

     SUBSEQUENT MORTGAGE LOANS: Each of the Mortgage Loans listed acquired by
the trust with amounts in the Pre-Funding Account and on a schedule attached to
a Subsequent Sale Agreement.

     SUBSEQUENT SALE AGREEMENT: Each sale agreement, dated as of a Subsequent
Sales Date, pursuant to which the Seller sells any Subsequent Mortgage Loans to
the Depositor, which Subsequent Mortgage Loans are sold, transferred and
assigned by the Depositor to the Trust.

     SUBSEQUENT SALE DATE: The date of each Subsequent Sale Agreement.

     SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the Seller for a
Deleted Mortgage Loan which must, on the date of such substitution (i) have a
Scheduled Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of

                                       25

<PAGE>

substitution, not in excess of, and not more than 10% less than the Scheduled
Principal Balance of the Deleted Mortgage Loan; (ii) be accruing interest at a
rate no lower than and not more than 1% per annum higher than, that of the
Deleted Mortgage Loan; (iii) have a Loan-to-Value Ratio no higher than that of
the Deleted Mortgage Loan; (iv) have a remaining term to maturity no greater
than (and not more than one year less than that of) the Deleted Mortgage Loan;
(v) not be a Cooperative Loan unless the Deleted Mortgage Loan was a Cooperative
Loan and (vi) comply with each representation and warranty set forth in Section
3.01(h) of the Sale Agreement.

     SUBSTITUTION ADJUSTMENT AMOUNT: The meaning ascribed to such term pursuant
to Section [o] of the Sale Agreement.

     TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939 as in force on
the date hereof, unless otherwise specifically provided.

     TRUST ACCOUNTS: The Distribution Account and the Financial Asset Custodial
Account.

     INDENTURE TRUSTEE FEE: As to any Distribution Date, an amount equal to
one-twelfth of the Indenture Trustee Fee Rate multiplied by (i) the Pool
Scheduled Principal Balance plus (ii) any amounts remaining in the Pre-Funding
Account (excluding any investment earnings thereon) with respect to such
Distribution Date.

     INDENTURE TRUSTEE FEE RATE: With respect to each Mortgage Loan, [o]% per
annum.

     UNITED STATES: The United States of America.

     UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction.

     UNDERWRITERS: [o].

     UNDERWRITING AGREEMENT: The Underwriting Agreement, dated [o], among the
Seller, the Depositor and the Underwriters.

     UNDERWRITER'S EXEMPTION: Prohibited Transaction Exemption _________, __
Fed. Reg. _____ (_____), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

     U.S. PERSON: (i) A citizen or resident of the United States, (ii) a
corporation created or organized in or under the laws of the United States, any
state thereof or the District of Columbia, including an entity treated as a
corporation for federal income tax purposes (iii) a partnership (unless Treasury
regulations are adopted that provide otherwise) created or organized in or under
the laws of the United States, any state thereof or the District of Columbia,
including an entity treated as a partnership for federal income tax purposes,
none of the interests in which are owned, directly or indirectly through one or
more intermediate entities, by a person that is not a U.S. Person within the
meaning this paragraph, (iv) an estate the income of which is includible in
gross income for United States federal income tax purposes, regardless of its
source, (v) a trust if a court within the United States is able to exercise
primary supervision over the administration of such trust and one or more United
States fiduciaries have the authority to control all substantial

                                       26

<PAGE>

decisions of the trust (or to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 that are eligible to
be treated as United States persons).

     UNSCHEDULED DISTRIBUTION AMOUNT: As to any Distribution Date, an amount
equal to the sum of (i) with respect to each Mortgage Loan that became a
Liquidated Mortgage Loan during the calendar month preceding the month of such
Distribution Date, the Liquidation Proceeds allocable to principal received with
respect to such Mortgage Loan and (ii) the amount described in clause (f) of the
definition of "Formula Principal Amount" for such Distribution Date.

     SECTION 1.2 Incorporation by Reference of Trust Indenture Act.

     (a) Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

     "COMMISSION" means the Securities and Exchange Commission

     "INDENTURE SECURITIES" means the Notes.

     "INDENTURE SECURITY HOLDER" means a Noteholder.

     "INDENTURE TO BE QUALIFIED" means this Indenture.

     "INDENTURE TRUSTEE" or "INSTITUTIONAL INDENTURE TRUSTEE" means the
Indenture Trustee.

     "OBLIGOR" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

     (b) All other TIA terms used in this Indenture that are defined in the TIA,
defined by TIA reference to another statute or defined by rule of the Securities
and Exchange Commission have the respective meanings assigned to them by such
definitions.

     (c) Pursuant to Section 316(a) of TIA, all provisions automatically
provided for in Section 316(a) are hereby expressly excluded.

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

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

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

          (iii) "or" is not exclusive;

          (iv) "including" means including without limitation;

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

                                       27

<PAGE>

          (vi) any agreement, instrument or statute defined or referred to
     herein or in any instrument or certificate delivered in connection herewith
     means such agreement, instrument or statute as from time to time amended,
     modified or supplemented (as provided in such agreements) and includes (in
     the case of agreements or instruments) references to all attachments
     thereto and instruments incorporated therein; references to a Person are
     also to its permitted successors and assigns; and

          (vii) terms defined in the UCC and not otherwise defined herein shall
     have the meaning assigned to them in the UCC; and

          (viii) to "U.S. dollars", "dollars", or the sign "$" shall be
     construed as references to United States dollars which are freely
     transferable by residents and non-residents of the United States of America
     and convertible by such persons into any other freely convertible currency
     unless such transferability or convertibility is restricted by any law or
     regulation of general application in which event references to "U.S.
     dollars", "dollars", or the sign "$" shall be construed as references to
     such coin or currency of the United States of America as at the time of
     payment shall be legal tender for the payment of public and private debts
     in the United States of America, and "cents" shall be construed
     accordingly.

                                   ARTICLE II

                                    THE NOTES

     SECTION 2.1 Form. The Notes shall be designated as the "Luminent Mortgage
Trust 200_-__, Mortgage-Backed Notes, Series 200_-__." Each Note, together with
the Indenture Trustee's certificate of authentication, shall be in substantially
the forms set forth in Exhibit A, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution thereof. Any portion of the text of any Note may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the Note.

     The Definitive Notes and the global certificates ("GLOBAL SECURITIES")
representing the Book-Entry Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel
engraved borders), all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

     The Notes shall be issued as registered Notes. The Notes, except as
otherwise provided by supplement to this Indenture, shall be issued in a
denomination of at least $25,000 in principal amount and any larger denomination
that is an integral multiple of $1 approved by the Issuer, such approval to be
evidenced by the execution thereof; provided, however, one Note may be issued in
an amount less than the minimum denomination. If the Notes are issuable in whole
or in part as Book-Entry Notes, any such Note may provide that it shall
represent the aggregate amount of Outstanding Notes from time to time endorsed
thereon and may provide that the aggregate amount of Outstanding Notes
represented thereby may from time to time be reduced to

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reflect exchanges or increased to reflect the issuance of an additional
principal amount of Notes. Any endorsement of a Book-Entry Note to reflect the
amount, or any increase or decrease in the amount, of Outstanding Notes
represented thereby shall be made in such manner and by such Person or Persons,
as shall be specified therein or in the Issuer Order of authentication delivered
to the Indenture Trustee.

     The terms of the Notes set forth in Exhibit A are part of the terms of this
Indenture.

     SECTION 2.2 Execution, Authentication, Delivery and Dating. The Notes shall
be executed on behalf of the Issuer by an Authorized Officer of the Owner
Trustee. The signature of any such Authorized Officer on the Notes may be manual
or facsimile.

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

     Subject to the satisfaction of the conditions set forth in Section 2.8
hereof, the Indenture Trustee shall, upon Issuer Order, authenticate and deliver
the Notes for original issue in the aggregate principal amounts as specified
below:

     The aggregate principal amounts of Notes outstanding at any time may not
exceed $[o].

     The Notes that are authenticated and delivered by the Indenture Trustee to
or upon the order of the Issuer on the Closing Date shall be dated the Closing
Date. All other Notes that are authenticated after the Closing Date as a result
of transfer or exchange or for any other purpose under the Indenture shall be
dated the date of their authentication.

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

     SECTION 2.3 Registration; Registration of Transfer and Exchange. The Issuer
shall cause to be kept a register (the "NOTE REGISTER") in which, subject to
such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The [o]
initially shall be the "Note Registrar" for the purpose of registering Notes and
transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

     If a Person other than the Indenture Trustee or [o] is appointed by the
Issuer as Note Registrar, the Issuer will give the Indenture Trustee prompt
written notice of the appointment of such Note Registrar and of the location,
and any change in the location, of the Note Register, and the Indenture Trustee
shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely
upon a certificate

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executed on behalf of the Note Registrar by an Executive Officer thereof as to
the names and addresses of the Holders of the Notes and the principal amounts
and number of such Notes.

     Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.2, the Issuer
shall execute, and the Indenture Trustee shall authenticate and the Noteholder
shall be entitled to obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes in any authorized
denominations, of a like aggregate principal amount (or notional amount). At the
option of the Holder, Notes may be exchanged for other Notes in any authorized
denominations, of a like aggregate principal amount (or notional amount), upon
surrender of the Notes to be exchanged at such office or agency. Whenever any
Notes are so surrendered for exchange, the Issuer shall execute, and the
Indenture Trustee shall authenticate and the Noteholder shall be entitled to
obtain from the Indenture Trustee, the Notes which the Noteholder making the
exchange is entitled to receive.

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

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

     In addition, each purchaser or proposed transferee of a Note must represent
to the Indenture Trustee either (a) that it is not, and is not purchasing the
Notes with assets of, an employee benefit plan subject to Title I of ERISA, or a
plan subject to section 4975 of the Code, or a governmental plan or church plan
that is subject to any provisions of applicable federal, state or local law
("SIMILAR LAW") substantially similar to the foregoing provisions of ERISA or
the Code, or (b) that its acquisition and holding of the Notes will not
constitute or result in a nonexempt prohibited transaction under ERISA or the
Code or Similar Law and will not subject the Issuer, the Indenture Trustee, the
Owner Trustee or Master Servicer to any obligation in addition to those
undertaken in the Indenture.

     No service charge shall be made to a Noteholder for any registration of
transfer or exchange of Notes, but the Issuer or the Note Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Notes, other than exchanges pursuant to Section 2.4 or Section 10.6 not
involving any transfer.

     The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes for a period of [ o ] days preceding the Distribution Date
for any payment with respect to such Note.

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     SECTION 2.4 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
the Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within [ o ] days shall be due and payable, or shall have been called
for redemption, instead of issuing a replacement Note, the Issuer may pay such
destroyed, lost or stolen Note when so due or payable or upon the Redemption
Date without surrender thereof. If, after the delivery of such replacement Note
or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
preceding sentence, a bona fide purchaser of the original Note in lieu of which
such replacement Note was issued presents for payment such original Note, the
Issuer and the Indenture Trustee shall be entitled to recover such replacement
Note (or such payment) from the Person to whom it was delivered or any Person
taking such replacement Note from such Person to whom such replacement Note was
delivered or any assignee of such Person, except a bona fide purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to
the extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

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

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

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

     SECTION 2.5 Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Indenture Trustee or any agent of the
Issuer or the Indenture Trustee shall be affected by notice to the contrary.

     SECTION 2.6 Payment of Principal and Interest. (a) The Notes shall accrue
interest at the Note Interest Rate, and such interest shall be payable on each
Distribution Date, subject to

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Section 3.1. Interest shall be computed on the basis of a 360-day year
consisting of twelve 30-day months. Interest shall be computed on LIBOR Notes on
the basis of a 360-day year and the actual number of days elapsed in each
Accrual Period and in accordance with Section 9.7. All interest payments on the
Notes shall be made pro rata to the Noteholders entitled thereto. Any
installment of interest or principal payable on any Note shall be paid on the
applicable Distribution Date to the Person in whose name such Note (or one or
more Predecessor Notes) is registered on the Record Date by check mailed
first-class postage prepaid to such Person's address as it appears on the Note
Register on such Record Date or, upon written request made to the Indenture
Trustee at least [ o ] Business Days prior to the related Record Date, by the
Holder of a Note having an initial Note Principal Amount of not less than
$2,500,000 by wire transfer in immediately available funds to an account
specified in the request and at the expense of such Noteholder, except that,
unless Definitive Notes have been issued pursuant to Section 2.11, with respect
to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made
by wire transfer in immediately available funds to the account designated by
such nominee, except for the final installment of principal payable with respect
to such Note on a Distribution Date or on the applicable Maturity Date for such
Notes (and except for the Redemption Price for any Note called for redemption
pursuant to Section 11.1), which shall be payable as provided below. The funds
represented by any such checks returned undelivered shall be held in accordance
with Section 3.3.

     (b) The principal of each Note shall be payable in installments on each
Distribution Date as provided in the Servicing Agreement and in the forms of the
Notes set forth in Exhibit A hereto. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable, if not previously
paid, on the earlier of (i) the applicable Maturity Date, (ii) the applicable
Redemption Date or (iii) the date on which an Event of Default shall have
occurred and be continuing, if the Indenture Trustee or the Majority of the
Noteholders shall have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 hereof.

     (c) All principal payments on the Notes shall be made pro rata to the
Noteholders entitled thereto. The Indenture Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date
preceding the Distribution Date on which the Issuer expects that the final
installment of principal of and interest on such Note will be paid. Such notice
shall be mailed or transmitted by facsimile prior to such final Distribution
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices
in connection with redemptions of Notes shall be mailed to Noteholders as
provided in Section 11.2 hereof.

     SECTION 2.7 Cancellation. All Notes surrendered for payment, registration
of transfer or exchange shall, if surrendered to any Person other than the
Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly
canceled by the Indenture Trustee. The Issuer shall deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section, except as expressly permitted by this Indenture. All
canceled Notes may be held or disposed of by the

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Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that
they be destroyed or returned to it; provided, that such Issuer Order is timely
and the Notes have not been previously disposed of by the Indenture Trustee.

     SECTION 2.8 Authentication of Notes.

     (a) The Notes shall be authenticated by the Indenture Trustee, upon Issuer
Request and upon receipt by the Indenture Trustee of the following:

          (i) An Issuer Order authorizing the execution and authentication of
     such Notes;

          (ii) All of the items of Collateral that are to be delivered to the
     Indenture Trustee or its designee;

          (iii) An executed counterpart of the Trust Agreement, the Indenture,
     the Administration Agreement, the Assignment and Assumption Agreements and
     the Servicing Agreement and an executed original of the Certificate of
     Trust;

          (iv) Except to the extent provided in subsection (b) below, Opinions
     of Counsel addressed to the Indenture Trustee to the effect that:

               (A) the Issuer has been duly formed and is validly existing as a
          business trust under the laws of the State of Delaware, and has power,
          authority and legal right to execute and deliver this Indenture and
          the other Operative Agreements to which it is a party;

               (B) the issuance of the Notes has been duly and validly
          authorized by the Issuer;

               (C) the Notes, when executed and authenticated in accordance with
          the provisions of this Indenture and delivered against payment
          therefor, will be the legal, valid and binding obligations of the
          Issuer pursuant to the terms of this Indenture and will be entitled to
          the benefits of this Indenture, and will be enforceable in accordance
          with their terms, subject to bankruptcy, insolvency, reorganization,
          arrangement, moratorium, fraudulent or preferential conveyance and
          other similar laws of general application affecting the rights of
          creditors generally and to general principles of equity (regardless of
          whether such enforcement is considered in a proceeding in equity or at
          law);

               (D) all conditions precedent provided for in this Indenture
          relating to the authentication of the Notes have been complied with;

               (E) assuming due authorization, execution and delivery thereof by
          the Indenture Trustee, this Indenture has been duly executed and
          delivered by Issuer and constitutes the legal, valid and binding
          obligation of the Issuer, enforceable against the Issuer in accordance
          with its terms, subject to bankruptcy, insolvency,

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          reorganization, arrangement, moratorium, fraudulent or preferential
          conveyance and other similar laws of general application affecting the
          rights of creditors generally and to general principles of equity
          (regardless of whether such enforcement is considered in a proceeding
          in equity or at law);

               (F) the Issuer is not required to be registered under the
          Investment Company Act of 1940, as amended;

               (G) the Issuer will not be characterized as an association (or
          publicly traded partnership) taxable as a corporation;

               (H) the provisions of the Indenture are sufficient to create a
          valid security interest in favor of the Indenture Trustee in the
          Collateral; and

               (I) this Indenture has been duly qualified under the Trust
          Indenture Act.

          (v) An Officer's Certificate of the Depositor on behalf of the Issuer
     complying with the requirements of Section 13.1 and stating that:

               (A) the Issuer is not in Default under this Indenture and the
          issuance of the Notes will not result in any breach of any of the
          terms, conditions or provisions of, or constitute a default under, any
          indenture, mortgage, deed of trust or other agreement or instrument to
          which the Issuer is a party or by which it is bound, or any order of
          any court or administrative agency entered in any proceeding to which
          the Issuer is a party or by which it may be bound or to which it may
          be subject;

               (B) the Issuer is the owner of all of the Mortgage Loans, has
          not, other than pursuant to this Indenture, assigned any interest or
          participation in the Mortgage Loans (or, if any such interest or
          participation has been assigned, it has been released) and has the
          right to Grant all of the Mortgage Loans to the Indenture Trustee;

               (C) the Issuer has Granted to the Indenture Trustee all of its
          right, title and interest in and to the Collateral, and has delivered
          or caused the same to be delivered to the Indenture Trustee;

               (D) attached thereto are true and correct copies of letters
          signed by the Rating Agencies to the effect that the Notes has been
          assigned the Required Rating; and

               (E) all conditions precedent provided for in this Indenture
          relating to the authentication and delivery of the Notes have been
          complied with.

     (b) The representations and warranties made pursuant to the foregoing
Officer's Certificate shall survive the discharge of this Indenture and may not
be waived by any party hereto. The Opinions of Counsel to be delivered pursuant
to subsection (a)(iv) above may differ

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from the Opinions of Counsel described in such subsection so long as such
Opinions of Counsel so delivered are acceptable to the Rating Agencies and the
Indenture Trustee, the Indenture Trustee's authentication and delivery of the
Notes and the Rating Agencies' issuance of their letters pursuant to subsection
(a)(D) above and such acceptable opinions shall be deemed to be the Opinions of
Counsel required pursuant to subsection (a)(iv) above.

     SECTION 2.9 Book-Entry Notes. The Notes will be issued in the form of
typewritten Notes or Global Securities representing the Book-Entry Notes, to be
delivered to DTC, the initial Clearing Agency, by, or on behalf of, the Issuer.
The Book-Entry Notes shall be registered initially on the Note Register in the
name of Cede & Co., the nominee of DTC, and no owner thereof will receive a
definitive Note representing such Note Owner's interest in such Note, except as
provided in Section 2.11. Unless and until definitive, fully registered Notes
(the "DEFINITIVE NOTES") have been issued to such Note Owners pursuant to
Section 2.11:

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

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

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

               (iv) the rights of Note Owners shall be exercised only through
          the Clearing Agency and shall be limited to those established by law
          and agreements between such Note Owners and the Clearing Agency and/or
          the Clearing Agency Participants pursuant to the Note Depository
          Agreement. Unless and until Definitive Notes are issued pursuant to
          Section 2.11, the initial Clearing Agency will make Book-Entry
          transfers among the Clearing Agency Participants and receive and
          transmit payments of principal of and interest on the Notes to such
          Clearing Agency Participants; and

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

     SECTION 2.10 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.11, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Clearing Agency, and shall have no obligation to such Note Owners.

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     SECTION 2.11 Definitive Notes. If (i) the Issuer advises the Indenture
Trustee in writing that the Clearing Agency is no longer willing or able to
properly discharge its responsibilities with respect to the Book-Entry Notes and
the Indenture Trustee is unable to locate a qualified successor, (ii) the Issuer
at its option advises the Indenture Trustee in writing that it elects to
terminate the Book-Entry system through the Clearing Agency or (iii) after the
occurrence of an Event of Default, Owners of the Book-Entry Notes representing
beneficial interests aggregating at least a majority of the Outstanding Amount
of Book-Entry Notes advise the Clearing Agency in writing that the continuation
of a Book-Entry system through the Clearing Agency is no longer in the best
interests of such Note Owners, then the Clearing Agency shall notify all Note
Owners and the Indenture Trustee of the occurrence of such event and of the
availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Notes representing the
Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall be liable for any delay in delivery of such instructions, and each such
party may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall
recognize the Holders of the Definitive Notes as Noteholders.

     SECTION 2.12 Tax. The Issuer has entered into this Indenture, and the Notes
will be issued, with the intention that, for federal, state and local income,
single business and franchise tax purposes, the Notes will qualify as
indebtedness of the Issuer secured by the Collateral. The Issuer, by entering
into this Indenture, and each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of an interest in the applicable Book-Entry Note),
agree to treat the Notes for federal, state and local income, single business
and franchise tax purposes as indebtedness of the Issuer.

     SECTION 2.13 Release of Collateral.

     (a) Except as otherwise provided in subsections (b) and (c) of this Section
and the terms of the Operative Agreements, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt by it of an Issuer
Request accompanied by (i) an Officer's Certificate, (ii) an Opinion of Counsel,
(iii) certificates in accordance with TIA Sections 314(c) and (d)(1), and
(iv)(A) Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) or (B) an Opinion of Counsel in lieu of such Independent Certificates
to the effect that the TIA does not require any such Independent Certificates;
provided that no such Independent Certificates or Opinion of Counsel in lieu of
such Independent Certificates shall be necessary in respect of property released
from the lien of the Indenture in accordance with the provisions hereof if such
property consists solely of cash.

     (b) The Master Servicer or any Servicer, on behalf of the Issuer, shall be
entitled to obtain a release from the lien of this Indenture for any Mortgage
Loan and the Mortgaged Property at any time (i) after a payment by the Seller or
the Issuer of the Purchase Price of the Mortgage Loan, (ii) after a Substitute
Mortgage Loan is substituted for such Mortgage Loan and payment of the
Substitution Amount, if any, (iii) after liquidation of the Mortgage Loan in
accordance with the applicable Servicing Agreement and the deposit of all
Liquidation Proceeds and Insurance Proceeds in the Collection Account, or (iv)
upon the termination of a Mortgage

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Loan (due to, among other causes, a prepayment in full of the Mortgage Loan and
sale or other disposition of the related Mortgaged Property).

                                  ARTICLE III

                                    COVENANTS

     SECTION 3.1 Payment of Principal and Interest. The Issuer will duly and
punctually pay (or will cause to be duly and punctually paid) the principal of
and interest on the Notes in accordance with the terms of the Notes and this
Indenture. Without limiting the foregoing, unless the Notes have been declared
due and payable pursuant to Section 5.2 and monies collected by the Indenture
Trustee are being applied in accordance with Section 5.4(b), subject to and in
accordance with Section 8.2, the Issuer will cause to be paid amounts on deposit
in the Distribution Account Account on each Distribution Date to the Holders of
the Notes. Amounts properly withheld under the Code by any Person from a payment
to any Noteholder of interest and/or principal shall be considered as having
been paid by the Issuer to such Noteholder for all purposes of this Indenture.

     The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral as provided
in this Indenture. The Issuer shall not otherwise be liable for payments of the
Notes, and none of the owners, agents, officers, directors, employees, Indenture
Trustees or successors or assigns of the Issuer shall be personally liable for
any amounts payable, or performance due, under the Notes or this Indenture. If
any other provision of this Indenture shall be deemed to conflict with the
provisions of this Section 3.1, the provisions of this Section 3.1 shall
control.

     SECTION 3.2 Maintenance of Office or Agency. The Issuer will or will cause
the Indenture Trustee to maintain in [o], [o], an office or agency where Notes
may be surrendered for registration of transfer or exchange, and where notices
and demands to or upon the Issuer in respect of the Notes and this Indenture may
be served which initially shall be the Corporate Trust Office. The Issuer hereby
initially appoints the Indenture Trustee to serve as its agent for the foregoing
purposes and to serve as Paying Agent with respect to the Notes. The Issuer will
give prompt written notice to the Indenture Trustee of the appointment of new or
additional paying agents for the Notes, the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Indenture
Trustee with the address thereof, such surrenders, notices and demands may be
made or served at the Corporate Trust Office, and the Issuer hereby appoints the
Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

     SECTION 3.3 Money for Payments To Be Held in Trust. All payments of amounts
due and payable with respect to any Notes that are to be made from amounts
withdrawn from the Accounts shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent.

     On or before the Business Day preceding each Distribution Date and the
Redemption Date, the Paying Agent shall deposit or cause to be deposited in the
Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due under the Notes, such sum to be

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held in trust for the benefit of the Persons entitled thereto, and (unless the
Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of its action or failure so to act.

     Any Paying Agent other than the Indenture Trustee shall be appointed by
Issuer Order with written notice thereof to the Indenture Trustee. Any Paying
Agent appointed by the Issuer shall be a Person who would be eligible to be
Indenture Trustee hereunder as provided in Section 6.11. The Issuer shall not
appoint any Paying Agent (other than the Indenture Trustee) which is not, at the
time of such appointment, a Depository Institution.

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

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

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

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

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

          (v) comply with all requirements of the Code with respect to the
     withholding from any payments made by it on any Notes of any applicable
     withholding taxes imposed thereon and with respect to any applicable
     reporting requirements in connection therewith; provided, however, that
     with respect to withholding and reporting requirements applicable to
     original issue discount (if any) on the Notes, the Issuer shall have first
     provided the calculated amounts pertaining thereto to the Indenture
     Trustee.

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

     Subject to applicable laws with respect to escheat of funds or abandoned
property, any money held by the Indenture Trustee or any Paying Agent in trust
for the payment of any amount

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<PAGE>

due with respect to any Note and remaining unclaimed for two years after such
amount has become due and payable shall be discharged from such trust and be
paid to the Issuer on Issuer Request; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in [ o ], notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
[ o ] days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Issuer. The Indenture Trustee shall
also adopt and employ, at the expense and direction of the Issuer, any other
reasonable means of notification of such repayment (including, but not limited
to, mailing notice of such repayment to Holders whose right to or interest in
moneys due and payable but not claimed is determinable from the records of the
Indenture Trustee or of any Paying Agent, at the last address of record for each
such Holder).

     SECTION 3.4 Existence.

     (a) The Issuer will keep in full effect its existence, rights and
franchises as a business trust under the laws of the State of Delaware (unless
it becomes, or any successor Issuer hereunder is or becomes, organized under the
laws of any other State or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the
laws of such other jurisdiction) and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Notes and the Collateral.

     (b) Any successor to the Owner Trustee appointed pursuant to Section [____]
of the Trust Agreement shall be the successor Owner Trustee under this Indenture
without the execution or filing of any paper, instrument or further act to be
done on the part of the parties hereto.

     (c) Upon any consolidation or merger of or other succession to the Owner
Trustee, the Person succeeding to the Owner Trustee under the Trust Agreement
may exercise every right and power of the Owner Trustee under this Indenture
with the same effect as if such Person had been named as the Owner Trustee
herein.

     SECTION 3.5 Protection of Collateral. The Issuer will from time to time,
and upon direction of the Majority of Noteholders, execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

          (i) provide further assurance with respect to the Grant of all or any
     portion of the Collateral;

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          (ii) maintain or preserve the lien and security interest (and the
     priority thereof) of this Indenture or carry out more effectively the
     purposes hereof;

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

          (iv) enforce any rights with respect to the Collateral; or

          (v) preserve and defend title to the Collateral and the rights of the
     Indenture Trustee and the Noteholders in such Collateral against the claims
     of all Persons and parties.

     The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument provided to the Indenture Trustee by the Depositor and required
to be executed pursuant to this Section 3.5.

     SECTION 3.6 Opinions as to Trust Fund.

     On the Closing Date, the Issuer shall furnish to the Securities
Administrator and the Indenture Trustee an Opinion of Counsel to the effect that
either, in the opinion of such counsel, such action has been taken with respect
to the recording and filing of this Indenture, any indentures supplemental
hereto, and any other requisite documents, and with respect to the execution and
filing of any financing statements and continuation statements, as are necessary
to make effective the lien and security interest of this Indenture, or stating
that, in the opinion of such counsel, no such action is necessary to make such
lien and security interest effective.

     SECTION 3.7 Performance of Obligations.

     (a) The Issuer will not take any action and will use its best efforts not
to permit any action to be taken by others that would release any Person from
any of such Person's material covenants or obligations under any instrument or
agreement included in the Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture, the Servicing Agreement or such other
instrument or agreement.

     (b) The Issuer may contract with or otherwise obtain the assistance of
other Persons to assist it in performing its duties under this Indenture, and
any performance of such duties by a Person identified to the Indenture Trustee
in an Officer's Certificate of the Issuer shall be deemed to be action taken by
the Issuer.

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, any other agreements to which it is
a party and in the instruments and agreements included in the Collateral,
including but not limited to (i) filing or causing to be filed all UCC financing
statements and continuation statements required to be filed by the terms of this
Indenture and the Servicing Agreements and (ii) recording or causing to be
recorded all Mortgages, Assignments of Mortgage, all intervening Assignments of
Mortgage and all assumption and modification agreements required to be recorded
by the terms of the Servicing Agreements, in accordance with and within the time
periods provided for in this

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<PAGE>

Indenture and/or the Servicing Agreements, as applicable. Except as otherwise
expressly provided therein, the Issuer shall not waive, amend, modify,
supplement or terminate any Agreement or any provision thereof without the
consent of the Indenture Trustee and the Holders of a majority of the
Outstanding Amount of the Notes.

     (d) If the Issuer shall have knowledge of the occurrence of an Event of
Default under the Servicing Agreements, the Issuer shall promptly notify the
Indenture Trustee and the Rating Agencies thereof, and shall specify in such
notice the action, if any, the Issuer is taking with respect to such default.

     (e) As promptly as possible after the giving of notice to the Master
Servicer of the termination of the Master Servicer's rights and powers pursuant
to Section [____] of the Servicing Agreement, the Indenture Trustee shall
proceed in accordance with Section [____] of the Servicing Agreement.

     (f) Without derogating from the absolute nature of the assignment granted
to the Indenture Trustee under this Indenture or the rights of the Indenture
Trustee hereunder, the Issuer agrees that it will not, without the prior written
consent of a Majority of the Noteholders (i) amend, modify, waive, supplement,
terminate or surrender, or agree to any amendment, modification, supplement,
termination, waiver or surrender of, the terms of any Collateral (except to the
extent otherwise provided in the Servicing Agreement) or (ii) waive timely
performance or observance by the Seller under the Servicing Agreement. If any
such amendment, modification, supplement or waiver shall be so consented to by
the [Indenture Trustee] [such Holders], the Issuer agrees, promptly following a
request by the Indenture Trustee, to execute and deliver, in its own name and at
its own expense, such agreements, instruments, consents and other documents as
the Indenture Trustee may deem necessary or appropriate in the circumstances.

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

     (a) except as expressly permitted by this Indenture, the Sale Agreement or
the Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of
the properties or assets of the Issuer, including those included in the
Collateral, unless directed to do so by the Indenture Trustee;

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

     (c) engage in any business or activity other than as permitted by the Trust
Agreement or other than in connection with, or relating to, the issuance of
Notes pursuant to this Indenture, or amend the Trust Agreement as in effect on
the Closing Date other than in accordance with Section [____] thereof;

     (d) issue debt obligations under any other indenture;

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<PAGE>

     (e) incur or assume any indebtedness or guarantee any indebtedness of any
Person, except for such indebtedness as may be incurred by the Issuer in
connection with the issuance of the Notes pursuant to this Indenture;

     (f) dissolve or liquidate in whole or in part or merge or consolidate with
any other Person; or

     (g) (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden the Collateral or any part thereof or any interest therein or the
proceeds thereof (other than any junior liens or tax liens, mechanics' liens and
other liens that arise by operation of law, in each case on any of the Mortgaged
Properties and arising solely as a result of an action or omission of the
related Mortgagors), or (C) permit the lien of this Indenture not to constitute
a valid first priority (other than with respect to any such tax, mechanic's or
other lien) security interest in the Collateral.

     SECTION 3.9 Covenants of the Issuer. All covenants of the Issuer in this
Indenture are covenants of the Issuer and are not covenants of the Owner
Trustee. The Owner Trustee is, and any successor Owner Trustee under the Trust
Agreement will be, entering into this Indenture solely as Owner Trustee under
the Trust Agreement and not in its respective individual capacity, and in no
case whatsoever shall the Owner Trustee or any such successor Owner Trustee be
personally liable on, or for any loss in respect of, any of the statements,
representations, warranties or obligations of the Issuer hereunder, as to all of
which the parties hereto agree to look solely to the property of the Issuer.

     SECTION 3.10 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, (x) distributions to the Indenture
Trustee, the Owner Trustee, the Master Servicer, any Servicer and the
Securityholders as contemplated by, and to the extent funds are available for
such purpose under the Indenture, the Servicing Agreement or the Trust Agreement
and (y) payments to the Indenture Trustee pursuant to the Administration
Agreement. The Issuer will not, directly or indirectly, make or cause to be made
payments to or distributions from the Trust Accounts except in accordance with
this Indenture and the Operative Agreements.

     SECTION 3.11 Treatment of Notes as Debt for Tax Purposes. The Issuer shall,
and shall cause the Indenture Trustee and the Master Servicer shall treat the
Notes as indebtedness for all federal, state and local income, single business
and franchise tax purposes and treat the Collateral as securing such
indebtedness.

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<PAGE>

     SECTION 3.12 Notice of Events of Default. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event of
Default hereunder and each default on the part of the Depositor or the Master
Servicer under the Servicing Agreement.

     SECTION 3.13 Further Instruments and Acts. Upon request of the Indenture
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

     SECTION 3.14 Annual Statement as to Compliance. So long as the Notes are
outstanding, the Issuer will deliver to the Indenture Trustee, within 120 days
after the end of each fiscal year of the Issuer (commencing with the fiscal year
200__), an Officer's Certificate stating, as to the Authorized Officer signing
such Officer's Certificate, that:

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

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

     SECTION 3.15 Representations and Warranties of the Issuer. The Issuer
hereby represents and warrants that:

     (a) this Agreement creates a valid and continuing security interest (as
defined in the UCC) in the Collateral in favor of the Indenture Trustee, which
security interest is prior to all other liens, and is enforceable as such as
against creditors of and purchasers from the Issuer;

     (b) the Collateral constitutes "instruments" within the meaning of the UCC;

     (c) the Issuer owns and has good and marketable title to the Collateral
free and clear of any lien, claim or encumbrance of any Person;

     (d) the Issuer has received all consents and approvals required by the
terms of the Collateral to pledge the Collateral hereunder to the Indenture
Trustee;

     (e) the Issuer has caused or will have caused, within [ o ] days from the
Closing Date, the filing of all appropriate financing statements in the proper
filing office in the appropriate jurisdictions under applicable law in order to
perfect the security interest in the Collateral granted to the Indenture Trustee
hereunder;

     (f) all original executed copies of each Mortgage Note that constitute or
evidence the Collateral have been delivered to the Indenture Trustee or the
applicable Custodian on behalf of the Indenture Trustee;

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<PAGE>

     (g) the Issuer has received a written acknowledgment from the applicable
Custodian that such Custodian is holding the Mortgage Notes that constitute or
evidence the Collateral solely on behalf and for the benefit of the Indenture
Trustee;

     (h) other than the security interest granted to the Indenture Trustee
pursuant to this Agreement, the Issuer has not pledged, assigned, sold, granted
a security interest in, or otherwise conveyed any of the Collateral. The Issuer
has not authorized the filing of and is not aware of any financing statements
against the Issuer that include a description of collateral covering the
Collateral other than any financing statement relating to the security interest
granted to the Indenture Trustee hereunder or that has been terminated. The
Issuer is not aware of any judgment or tax lien filings against the Issuer; and

     (i) none of the Mortgage Notes that constitute or evidence the Collateral
has any marks or notations indicating that they have been pledged, assigned or
otherwise conveyed to any Person other than the Secured Party.

     SECTION 3.16 Annual Opinions as to Collateral. On or before March 15th in
each calendar year, beginning in 200__, the Issuer shall furnish to the
Indenture Trustee an Opinion of Counsel either stating that, in the opinion of
such counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and with respect to the execution and filing
of any financing statements and continuation statements as is necessary to
maintain the lien and security interest created by this Indenture and reciting
the details of such action or stating that in the opinion of such counsel no
such action is necessary to maintain such lien and security interest. Such
Opinion of Counsel shall also describe the recording, filing, rerecording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until March 15th of
the following calendar year.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

     SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture shall
be discharged and cease to be of further effect with respect to the Notes and
Collateral securing the Notes when either (i) the Servicing Agreement has been
terminated pursuant to Article VII or (ii) all of the following have occurred:

     (a)  either

          (i) all Notes theretofore authenticated and delivered (other than (A)
     Notes that have been mutilated, destroyed, lost or stolen and that have
     been replaced or paid as provided in Section 2.4 and (B) Notes for whose
     payment money has theretofore been deposited in trust or segregated and
     held in trust by the Issuer and thereafter repaid to the Issuer or
     discharged from such trust, as provided in Section 3.3) have been delivered
     to the Indenture Trustee for cancellation; or

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<PAGE>

          (ii) all Notes not theretofore delivered to the Indenture Trustee for
     cancellation (A) have become due and payable, (B) will become due and
     payable within one year of the Maturity Date, or (C) are to be called for
     redemption within one year under arrangements satisfactory to the Indenture
     Trustee for the giving of notice of redemption by the Indenture Trustee in
     the name, and at the expense, of the Issuer, and the Issuer has irrevocably
     deposited or caused to be irrevocably deposited with the Indenture Trustee
     cash or direct obligations of or obligations guaranteed by the United
     States of America (which will mature prior to the date such amounts are
     payable), in trust for such purpose, in an amount sufficient to pay and
     discharge the entire indebtedness on such Notes to the Maturity Date of the
     Notes or the Redemption Date (if Notes are called for redemption pursuant
     to Section 11.1 hereof), as the case may be;

     (b) the later of (i) eighteen months after payment in full of all
outstanding obligations under the Notes and (ii) the date on which the Issuer
has paid or caused to be paid all other sums payable hereunder and no other
amounts will become due and payable by the Issuer; and

     (c) the Issuer has delivered to the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel (at the Issuer's expense) and (if required
by the TIA or the Indenture Trustee) an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of
Section 13.1(a) hereof and, subject to Section 13.2 hereof, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture with respect to the Notes have been satisfied,

then, upon Issuer Request, this Indenture and the lien, rights, and interests
created hereby shall cease to be of further effect with respect to the Notes
(except as to (i) rights of registration of transfer and exchange, (ii)
substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv)
Sections 3.3, 3.4, 3.5, 3.8 and 3.9 hereof, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under Section 4.2) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the property so deposited with the Indenture Trustee payable to
all or any of them), and the Indenture Trustee, on demand of and at the expense
of the Issuer, shall execute and deliver proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to the Notes, and
shall pay, or assign or transfer and deliver, to or at the direction of the
Issuer, all Collateral held by it after satisfaction of the conditions specified
in clauses (b) and (c) above.

     SECTION 4.2 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Sections 3.3 and 4.1 hereof shall be held in trust
and applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, to the Holders of the Notes for the payment of
all sums due and to become due thereon for principal and interest; but such
moneys need not be segregated from other funds except to the extent required
herein or in the Servicing Agreement or otherwise required by law.

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                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

     SECTION 5.1 Events of Default.

     (a) "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) a default in the payment of Current Interest or Principal in
     respect of the Notes when the same becomes due and payable, and the
     continuance of such default for a period of [ o ] days; or

          (ii) a default in the payment of the entire Principal Note Amount of
     any Note on the applicable Maturity Date; or

          (iii) either the Issuer or the pool of Collateral becomes an
     "investment company" required to be registered under the Investment Company
     Act of 1940, as amended; or

          (iv) default in the observance or performance of any covenant or
     agreement of the Issuer made in this Indenture (other than a covenant or
     agreement, a default in the observance or performance of which is elsewhere
     in this Section specifically dealt with), or any representation or warranty
     of the Issuer made in this Indenture, the Servicing Agreement or in any
     certificate or other writing delivered pursuant hereto or in connection
     herewith proving to have been incorrect in any material respect as of the
     time when the same shall have been made, and such default shall continue or
     not be cured, or the circumstance or condition in respect of which such
     representation or warranty was incorrect shall not have been eliminated or
     otherwise cured, for a period of [ o ] days after there shall have been
     given, by registered or certified mail, to the Issuer by the Indenture
     Trustee or to the Issuer and the Indenture Trustee by the Holders of at
     least 25% of the Outstanding Amount of the Notes, a written notice
     specifying such default or incorrect representation or warranty and
     requiring it to be remedied and stating that such notice is a notice of
     Default hereunder; or

          (v) the filing of a decree or order for relief by a court having
     jurisdiction in the premises in respect of the Issuer or any substantial
     part of the Collateral in an involuntary case under any applicable federal
     or state bankruptcy, insolvency or other similar law now or hereafter in
     effect, or appointing a receiver, liquidator, assignee, custodian,
     Indenture Trustee, sequestrator or similar official of the Issuer or for
     any substantial part of the Collateral, or ordering the winding-up or
     liquidation of the Issuer's affairs, and such decree or order shall remain
     unstayed and in effect for a period of [ o ] consecutive days; or

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<PAGE>

          (vi) the commencement by the Issuer of a voluntary case under any
     applicable federal or state bankruptcy, insolvency or other similar law now
     or hereafter in effect, or the consent by the Issuer to the entry of an
     order for relief in an involuntary case under any such law, or the consent
     by the Issuer to the appointment or taking possession by a receiver,
     liquidator, assignee, custodian, Indenture Trustee, sequestrator or similar
     official of the Issuer or for any substantial part of the Collateral, or
     the making by the Issuer of any general assignment for the benefit of
     creditors, or the failure by the Issuer generally to pay its debts as such
     debts become due, or the taking of any action by the Issuer in furtherance
     of any of the foregoing.

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

     SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default should occur and be continuing of which a
Responsible Officer of the Indenture Trustee has actual knowledge, then and in
every such case the Indenture Trustee may, and shall at the direction of the
Majority Noteholders, declare all the Notes to be immediately due and payable,
by a notice in writing to the Issuer and the Indenture Trustee, and upon any
such declaration the unpaid principal amount of such Notes, together with
accrued and unpaid interest thereon through the date of acceleration, shall
become immediately due and payable.

     (b) At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Noteholders, by written notice to the Issuer and the Indenture Trustee, may
rescind and annul such declaration and its consequences if the Issuer has paid
or deposited with the Indenture Trustee a sum sufficient to pay:

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

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

          (iii) all Events of Default, other than the nonpayment of the
     principal of the Notes that has become due solely by such acceleration,
     have been cured or waived as provided in Section 5.11.

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

     SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

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<PAGE>

     (a) The Issuer covenants that if default is made in the payment of any
interest on any Note when the same becomes due and payable, and such default
continues for a period of [ o ] days, the Issuer will, upon demand of the
Indenture Trustee or at the direction of a Majority of the Noteholders, pay to
the Indenture Trustee, for the benefit of the Holders of the Notes, the whole
amount then due and payable on such Notes for interest and in addition thereto
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Indenture Trustee and its agents and counsel.

     (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as Indenture Trustee of an
express trust may, and shall, at the direction of a Majority of the Noteholders,
institute a Proceeding for the collection of the sums so due and unpaid, and may
prosecute such Proceeding to judgment or final decree, and may enforce the same
against the Issuer or other obligor upon such Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the monies adjudged or decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, in its discretion, and shall, at the direction of a Majority of the
Noteholders, as more particularly provided in Section 5.4, proceed to protect
and enforce its rights and the rights of the Noteholders, by such appropriate
Proceedings as the Indenture Trustee shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy or legal or equitable right vested
in the Indenture Trustee by this Indenture or by law.

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

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

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     Indenture Trustee and each predecessor Indenture Trustee (except as a
     result of negligence or bad faith)) and of the Noteholders allowed in such
     Proceedings;

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

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

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

          (v) nothing herein contained shall be deemed to authorize the
     Indenture Trustee to authorize or consent to or vote for or accept or adopt
     on behalf of any Noteholder

          (vi) any plan of reorganization, arrangement, adjustment or
     composition affecting the Notes or the rights of any Holder thereof or to
     authorize the Indenture Trustee to vote in respect of the claim of any
     Noteholder in any such proceeding except, as aforesaid, to vote for the
     election of a Indenture Trustee in bankruptcy or similar Person;

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

          (viii) in any Proceedings brought by the Indenture Trustee (and also
     any Proceedings involving the interpretation of any provision of this
     Indenture to which the Indenture Trustee shall be a party), the Indenture
     Trustee shall be held to represent all the

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     Noteholders, and it shall not be necessary to make any Noteholder a party
     to any such Proceedings.

     SECTION 5.4 Remedies; Priorities.

     (a) If an Event of Default shall have occurred and be continuing, of which
a Responsible Officer of the Indenture Trustee has actual knowledge, the
Indenture Trustee may, and at the direction of the Majority of the Noteholders
shall, do one or more of the following (subject to Section 5.5):

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

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

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

          (iv) sell the Collateral or any portion thereof or rights or interest
     therein in a commercially reasonable manner, at one or more public or
     private sales called and conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default, unless (A) the Holders
of 100% of the Outstanding Amount of the Notes consent thereto, (B) the proceeds
of such sale or liquidation distributable to the Noteholders are sufficient to
discharge in full all amounts then due and unpaid upon the Notes for principal
and interest or (C) the Indenture Trustee determines that the Collateral will
not continue to provide sufficient funds for the payment of principal of and
interest on the Notes as they would have become due if the Notes had not been
declared due and payable, and the Indenture Trustee obtains the consent of
Holders of 66-2/3% of the Outstanding Amount of the Notes. In determining such
sufficiency or insufficiency with respect to clauses (B) and (C), the Indenture
Trustee shall obtain at the cost of the Issuer and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the
Collateral for such purpose.

     (b) If the Indenture Trustee collects any money or property pursuant to
this Article V, it shall pay out the money or property in the following order:

          first: to the Indenture Trustee, for any costs or expenses incurred by
          it in connection with the enforcement of the remedies provided for in
          this Article V and for any other unpaid amounts due to the Indenture
          Trustee hereunder, to the Custodians for any amounts due and owing to
          them under the Custodial Agreements, and to the Owner Trustee, to the
          extent of any fees and expenses due

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<PAGE>

          and owing to it (including pursuant to Section 7.02 of the Trust
          Agreement) and for any other unpaid amounts due to the Owner Trustee
          hereunder;

          second: to the Master Servicer and Servicers for any Master Servicing
          Fees or Servicing Fees then due and unpaid and any unreimbursed
          Advances and other servicing advances; and

          third: to the Notes, all accrued and unpaid interest thereon and
          amounts in respect of principal; provided, however, that accrued and
          unpaid interest shall be paid to Noteholders before any payments in
          respect of principal.

     The Indenture Trustee may fix a record date and Distribution Date for any
payment to be made to the Noteholders pursuant to this Section. At least [ o ]
days before such record date, the Indenture Trustee shall mail to each
Noteholder and the Issuer a notice that states the record date, the Distribution
Date and the amount to be paid.

     SECTION 5.5 Limitation of Suits. No Holder of any Note shall have any right
to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or Indenture Trustee, or for any
other remedy hereunder, unless:

     (a) such Holder has previously given written notice to the Indenture
Trustee of a continuing Event of Default;

     (b) a Majority of the Noteholders have made written request to the
Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder;

     (c) such Holder or Holders have offered to the Indenture Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
complying with such request;

     (d) the Indenture Trustee for [ o ] days after its receipt of such notice,
request and offer of indemnity has failed to institute such Proceedings; and

     (e) no direction inconsistent with such written request has been given to
the Indenture Trustee during such 60-day period by the Majority of the
Noteholders.

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

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes
pursuant to this Section, each representing less than the Majority of the
Noteholders, the Indenture Trustee in its sole discretion may determine what
action, if any, shall be taken, notwithstanding any other provision of this
Indenture.

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     SECTION 5.6 Unconditional Rights of Noteholders To Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment of the principal of and interest on, such Note on or after the Maturity
Date (or, in the case of redemption, on or after the Redemption Date) and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Holder.

     SECTION 5.7 Restoration of Rights and Remedies. If the Indenture Trustee or
any Noteholder has instituted any Proceeding to enforce any right or remedy
under this Indenture and such Proceeding has been discontinued or abandoned for
any reason or has been determined adversely to the Indenture Trustee or to such
Noteholder, then and in every such case the Issuer, the Indenture Trustee and
the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

     SECTION 5.8 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     SECTION 5.9 Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or an
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be

     SECTION 5.10 Control by Noteholders.

     The Majority of the Noteholders shall have the right to direct the time,
method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power
conferred on the Indenture Trustee; provided that:

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

     (b) subject to the express terms of Section 5.4, any direction to the
Indenture Trustee to sell or liquidate the Collateral shall be by not less than
100% of the Outstanding Amount of the Notes; and

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

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<PAGE>

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

     SECTION 5.11 Waiver of Past Defaults.

     Prior to the declaration of the acceleration of the maturity of the Notes
as provided in Section 5.2, the Majority of the Noteholders may waive any past
Default or Event of Default and its consequences except a Default (a) in the
payment of interest on any of the Notes or (b) in respect of a covenant or
provision hereof that cannot be modified or amended without the consent of the
Holder of each Note, as applicable. In the case of any such waiver, the Issuer,
the Indenture Trustee and the Holders of the Notes shall be restored to their
former positions and rights hereunder, respectively, but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

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

     SECTION 5.12 Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture.

     SECTION 5.13 Waiver of Stay or Extension Laws. The Issuer covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

     SECTION 5.14 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the

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<PAGE>

lien of this Indenture nor any rights or remedies of the Indenture Trustee or
the Noteholders shall be impaired by the recovery of any judgment by the
Indenture Trustee against the Issuer or by the levy of any execution under such
judgment upon any portion of the Collateral or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be
applied in accordance with Section 5.4(b).

     SECTION 5.15 Optional Preservation of the Collateral. If the Notes have
been declared to be due and payable under Section 5.2 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, but need not, elect to maintain possession
of the Collateral. It is the desire of the parties hereto and the Noteholders
that there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the
Collateral. In determining whether to maintain possession of the Collateral, the
Indenture Trustee may, but need not, obtain and rely upon an opinion (at the
expense of the Issuer) of an Independent investment banking or accounting firm
of national reputation as to the feasibility of such proposed action and as to
the sufficiency of the Collateral for such purpose.

     SECTION 5.16 Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so and at the
Issuer's expense, the Issuer shall take all such lawful action as the Indenture
Trustee may request to compel or secure the performance and observance by the
Seller and the Master Servicer, as applicable, of each of their obligations to
the Issuer under or in connection with the Mortgage Loan Sale Agreement and the
Servicing Agreement, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the
Servicing Agreement to the extent and in the manner directed by the Indenture
Trustee, including the transmission of notices of default on the part of the
Seller or the Master Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Seller or the Master Servicer of each of their obligations under the Servicing
Agreement and the Sale Agreement.

     (b) If an Event of Default of which a Responsible Officer of the Indenture
Trustee has actual knowledge has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing or by
telephone, confirmed in writing promptly thereafter) of a Majority of the
Noteholders shall, exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Master Servicer under or in connection with the
Servicing Agreement or the Seller under or in connection with the Mortgage Loan
Sale Agreement, including the right or power to take any action to compel or
secure performance or observance by the Seller or the Master Servicer of each of
their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension, or waiver under the Servicing Agreement
or Mortgage Loan Sale Agreement, and any right of the Issuer to take such action
shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

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     SECTION 6.1 Duties of Indenture Trustee.

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

     (b) Except during the continuance of an Event of Default:

          (i) the Indenture Trustee undertakes to perform such duties and only
     such duties as are specifically set forth in this Indenture, the Indenture
     Trustee shall not be liable except for the performance of such duties and
     obligations as are specifically set forth in this Indenture and no implied
     covenants or obligations shall be read into this Indenture against the
     Indenture Trustee; and

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

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

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

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

          (iii) the Indenture Trustee shall not be liable with respect to any
     action it takes or omits to take in good faith in accordance with this
     Agreement or upon a direction received by it pursuant to Section 5.10
     hereof;

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

          (v) money held in trust by the Indenture Trustee shall be segregated
     from other funds except to the extent permitted by law or the terms of this
     Indenture or the Servicing Agreement;

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

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<PAGE>

          (vii) every provision of this Indenture relating to the conduct or
     affecting the liability of or affording protection to the Indenture Trustee
     shall be subject to the provisions of this Section and to the provisions of
     the TIA;

          (viii) the Indenture Trustee shall not be required to take notice or
     be deemed to have notice or knowledge of any default or Event of Default
     (except an Event of Default described in Section 5.01(a)(i)) unless a
     Responsible Officer of the Indenture Trustee shall have actual knowledge
     thereof; in the absence of such actual knowledge, the Indenture Trustee may
     conclusively assume that there is no default or Event of Default; and

          (ix) anything in this Agreement to the contrary notwithstanding, in no
     event shall the Indenture 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 Indenture Trustee has been advised of
     the likelihood of such loss or damage and regardless of the form of action.

          (d) The Indenture Trustee shall not have any duty or obligation to
     manage, make any payment with respect to, register, record, sell, dispose
     of, or otherwise deal with the Collateral, or to otherwise take or refrain
     from taking any action under, or in connection with, any document
     contemplated hereby to which the Indenture Trustee is a party, except as
     expressly provided (i) in accordance with the powers granted to and the
     authority conferred upon the Indenture Trustee pursuant to this Agreement
     or any other Operative Agreement, and (ii) in accordance with any document
     or instruction delivered to the Indenture Trustee pursuant to the terms of
     this Agreement; and no implied duties or obligations shall be read into
     this Agreement or any Operative Agreement against the Indenture Trustee.
     The Indenture Trustee shall have no responsibility to prepare or file any
     Securities and Exchange Commission filing for the Trust or to record this
     Agreement or any Operative Agreement or to prepare or file any tax return
     for the Trust. The Indenture Trustee nevertheless agrees that it will, at
     its own cost and expense, promptly take all action as may be necessary to
     discharge any liens on any part of the Collateral that result from actions
     by, or claims against itself that are not related to the administration of
     the Collateral.

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

     (f) The Indenture Trustee shall not refuse or fail to perform any of its
duties hereunder solely as a result of nonpayment of its normal fees and
expenses; provided, that nothing in this Section 6.1(f) shall be construed to
limit the exercise by the Indenture Trustee of any right or remedy permitted
under this Indenture or otherwise in the event of the Issuer's failure to pay
the Indenture Trustee's fees and expenses pursuant to Section 6.7. In
determining that such repayment or indemnity is not reasonably assured to it,
the Indenture Trustee must consider not only the likelihood of repayment or
indemnity by or on behalf of the Issuer but also the likelihood of repayment or
indemnity from amounts payable to it from the Collateral pursuant to Section
6.7.

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     SECTION 6.2 Rights of Indenture Trustee.

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

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

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

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

     (e) The Indenture Trustee may consult with counsel, and the advice or
opinion of counsel or any Opinion of Counsel with respect to legal matters
relating to the Operative Agreements shall be full and complete authorization
and protection from liability with respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or
opinion of such counsel. The Issuer shall be responsible for the reasonable
costs and expenses of any such counsel.

     (f) The Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by the Majority
the Noteholders; provided, however, that if the payment within a reasonable time
to the Indenture Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the
Indenture Trustee, not reasonably assured to the Indenture Trustee by the
security afforded to it by the terms of this Indenture, the Indenture Trustee
may require reasonable indemnity against such cost, expense or liability as a
condition to taking any such action. The reasonable expense of every such
investigation shall be paid by the Issuer or, if paid by the Indenture Trustee,
shall be repaid by the Issuer upon demand.

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

     (h) The Indenture Trustee shall not be required to give any bond or surety
in respect of the execution of the powers granted hereunder.

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     SECTION 6.3 Individual Rights of Indenture Trustee.

     The Indenture Trustee in its individual or any other capacity other than as
Indenture Trustee may, and in its capacity as Indenture Trustee may not, become
the owner or pledgee of Notes and may otherwise deal with the Issuer or its
Affiliates with the same rights it would have if it were not Indenture Trustee.
Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the
same with like rights.

     SECTION 6.4 Indenture Trustee's Disclaimer.

     (a) The Indenture Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture, any other
Operative Agreement or the Notes or the Issuer's use of the proceeds from the
Notes, or responsible for any statement of the Issuer in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

     (b) Notwithstanding anything to the contrary in this Indenture or the other
Operative Agreements, the Indenture Trustee shall have no duties,
responsibilities or obligations under the Consolidated Agreement or the Existing
Trust Agreements (as defined in the Consolidated Agreement).

     SECTION 6.5 Notice of Default. If a Default occurs and is continuing and if
it is known to a Responsible Officer of the Indenture Trustee, the Indenture
Trustee shall mail to each Noteholder notice of the Default within [ o ] days
after it acquires knowledge of such Default.

     SECTION 6.6 Reports by Indenture Trustee to Holders. Upon request by a
Noteholder, the Master Servicer shall deliver to each Noteholder such
information as may be required to enable such holder to prepare its federal and
State income tax returns.

     SECTION 6.7 Compensation and Indemnity. As compensation for its services
hereunder and under the Servicing Agreement (including in its capacity as Paying
Agent and Custodian), the Indenture Trustee shall be entitled to receive an
annual fee (which shall not be limited by any provision of law in regard to the
compensation of a Indenture Trustee of an express trust) payable by the Master
Servicer. Reimbursement for all reasonable out-of-pocket expenses incurred or
made by the Indenture Trustee, including costs of collection, shall be payable
by the Issuer. Such expenses shall include the reasonable compensation and
expenses, disbursements and advances, if any, of the Indenture Trustee's agents,
counsel, accountants and experts. The Issuer shall, or shall cause the Seller
to, and the Seller shall, indemnify the Indenture Trustee (including in its
capacities as Paying Agent, Custodian and Securities Intermediary) and [o], in
its capacity as a Custodian, against any and all loss, liability or expense
(including attorneys' fees) incurred by the Indenture Trustee (including in its
capacities as Paying Agent, Custodian and Securities Intermediary) (or [o], in
its capacity as a Custodian) in connection with the administration of this trust
and the performance of its duties under the Operative Agreements. The Indenture
Trustee (or a Custodian) shall notify the Issuer and the Seller promptly of any
claim for which it may seek indemnity. Failure by the Indenture Trustee (or a
Custodian) to so notify the Issuer and the Seller shall not relieve the Issuer
and the Seller of its obligations hereunder. The Issuer shall or shall cause the
Seller to defend any such claim, and

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the Indenture Trustee, the Paying Agent, the Custodian and the Securities
Intermediary may have separate counsel and the Issuer shall or shall cause the
Seller to pay the fees and expenses of such counsel. The Seller need not
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee, the Paying Agent, the Custodian or the
Securities Intermediary to the extent attributable to such Person's own willful
misconduct, negligence or bad faith.

     The payment and indemnification obligations of the Seller, the Master
Servicer and the Issuer, as applicable, to the Indenture Trustee (including in
its capacities as Paying Agent, Custodian and Securities Intermediary) (or [o],
in its capacity as a Custodian) pursuant to this Section shall survive the
resignation or removal of the Indenture Trustee (or its Custodian) or discharge
of this Indenture. When the Indenture Trustee incurs expenses in connection with
the occurrence of a Default specified in Section 5.01(v) or (vi) with respect to
the Issuer, the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable federal or
State bankruptcy, insolvency or similar law.

     SECTION 6.8 Replacement of Indenture Trustee. No resignation or removal of
the Indenture Trustee and no appointment of a successor Indenture Trustee shall
become effective until the acceptance of appointment by the successor Indenture
Trustee pursuant to this Section. The Indenture Trustee may resign at any time
by so notifying the Issuer. The Holders of a majority in Outstanding Amount of
the Notes may remove the Indenture Trustee by so notifying the Indenture Trustee
and may appoint a successor Indenture Trustee. The Issuer shall remove the
Indenture Trustee if:

     (a) the Indenture Trustee fails to comply with Section 6.11;

     (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

     (c) a receiver or other public officer takes charge of the Indenture
Trustee or its property; or

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

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the "resigning or removed Indenture Trustee"),
the Issuer shall promptly appoint a successor Indenture Trustee that satisfies
the eligibility requirements of Section 6.11.

     The resigning or removed Indenture Trustee agrees to cooperate with any
successor Indenture Trustee in effecting the termination of the resigning or
removed Indenture Trustee's responsibilities and rights hereunder and shall
promptly provide such successor Indenture Trustee all documents and records
reasonably requested by it to enable it to assume the Indenture Trustee's
functions hereunder. Any successor Indenture Trustee shall have all the rights,
powers and duties of the Indenture Trustee under this Indenture.

     The resigning or removed Indenture Trustee shall Grant to the successor
Indenture Trustee the Collateral, and the Seller, the Issuer and the resigning
or removed Indenture Trustee shall execute and deliver such instruments and do
such other things as may reasonably be

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required for more fully and certainly vesting and confirming in the successor
Indenture Trustee all rights, powers, duties and obligations under this
Indenture.

     The successor Indenture Trustee shall deliver a written acceptance of its
appointment to the resigning or removed Indenture Trustee and the Issuer. The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders. The resigning Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within [ o ] days
after the retiring Indenture Trustee resigns or is removed, the resigning or
removed Indenture Trustee, the Issuer or the Holders of a majority of the
Outstanding Amount of the Notes may petition any court of competent jurisdiction
for the appointment of a successor Indenture Trustee. If the Indenture Trustee
fails to comply with Section 6.11, any Noteholder may petition any court of
competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this
Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.

     SECTION 6.9 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Indenture Trustee; provided, that such
corporation or banking association shall be otherwise qualified and eligible
under Section 6.11.

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

     SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

     (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Collateral may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-Indenture Trustee or co-Indenture Trustees, or
separate Indenture Trustee or separate Indenture Trustees, of all or any part of
the Trust Estate, and to vest in such Person or Persons, in such capacity and
for the benefit of the Noteholders, such title to the Collateral, or any part
thereof, and, subject to the

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other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Indenture Trustee may consider necessary or desirable. No
co-Indenture Trustee or separate Indenture Trustee hereunder shall be required
to meet the terms of eligibility as a successor Indenture Trustee under Section
6.11 and no notice to Noteholders of the appointment of any co-Indenture Trustee
or separate Indenture Trustee shall be required under this Section 6.10 hereof;

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

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

          (ii) no Indenture Trustee hereunder shall be personally liable by
     reason of any act or omission of any other Indenture Trustee hereunder; and

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

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

     (d) Any separate Indenture Trustee or co-Indenture Trustee may at any time
constitute the Indenture Trustee its agent or attorney-in-fact with full power
and authority, to the extent not prohibited by law, to do any lawful act under
or in respect of this Indenture on its behalf and in its name. If any separate
Indenture Trustee or co-Indenture 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 Indenture Trustee, to the extent
permitted by law, without the appointment of a new or successor Indenture
Trustee.

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     SECTION 6.11 Eligibility. The Indenture Trustee shall at all times (i)
satisfy the requirements of TIA Section 310(a), (ii) have a combined capital and
surplus of at least $[50,000,000] as set forth in its most recently published
annual report of condition, (iii) have a long-term debt rating equivalent to "A"
or better by the Rating Agencies or be otherwise acceptable to the Rating
Agencies [;] [and] (iv) not be an Affiliate of the Issuer or the Owner Trustee.
The Indenture Trustee shall comply with TIA Section 310(b), including the
optional provision permitted by the second sentence of TIA Section 310(b)(9);
provided, however, that there shall be excluded from the operation of TIA
Section 310(b)(1) any indenture or indentures under which other securities of
the Issuer are outstanding if the requirements for such exclusion set forth in
TIA Section 310(b)(1) are met.

     SECTION 6.12 Representations and Warranties. The Indenture Trustee hereby
represents that:

     (a) the Indenture Trustee is duly organized and validly existing as a [o]
in good standing under the laws of the State of [o] with power and authority to
own its properties and to conduct its business as such properties are currently
owned and such business is presently conducted;

     (b) the Indenture Trustee has the power and authority to execute and
deliver this Indenture and to carry out its terms; and the execution, delivery
and performance of this Indenture have been duly authorized by the Indenture
Trustee by all necessary corporate action;

     (c) the consummation of the transactions contemplated by this Indenture and
the fulfillment of the terms hereof do not conflict with, result in any breach
of any of the terms and provisions of, or constitute (with or without notice or
lapse of time) a default under the articles of organization or bylaws of the
Indenture Trustee or any agreement or other instrument to which the Indenture
Trustee is a party or by which it is bound; and

     (d) there are no proceedings or investigations pending or, to the knowledge
of the Indenture Trustee, threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee or its properties: (i) asserting the invalidity of
this Indenture, (ii) seeking to prevent the consummation of any of the
transactions contemplated by this Indenture or (iii) seeking any determination
or ruling that might materially and adversely affect the performance by the
Indenture Trustee of its obligations under, or the validity or enforceability
of, this Indenture.

     SECTION 6.13 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee which has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to

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the Indenture Trustee not more than [ o ] days after each Record Date, a list,
in such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Holders of Notes as of such Record Date; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished.

     SECTION 7.2 Preservation of Information; Communications to Noteholders.

     (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

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

     (c) The Issuer, the Note Registrar and the Indenture Trustee shall have the
protection of TIA Section 3l2(c).

     SECTION 7.3 Reports by Issuer.

     (a) The Issuer shall:

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

          (ii) supply to the Indenture Trustee (and the Indenture Trustee shall
     transmit by mail to all Noteholders described in TIA Section 313(c)) such
     summaries of any information, documents and reports required to be filed by
     the Issuer pursuant to clause (i) of this Section 7.03(a) and by rules and
     regulations prescribed from time to time by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer
shall end on December 31 of each year.

     SECTION 7.4 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each March 1, beginning with March 1, 200_, the
Indenture Trustee shall mail to each Noteholder as required by TIA Section
313(c) a brief report dated as of such date that complies with TIA Section
313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

     A copy of each report at the time of its mailing to Noteholders shall be
filed by the Indenture Trustee with the Commission and each securities exchange,
if any, on which the Notes

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are listed. The Issuer shall notify the Indenture Trustee if and when the Notes
are listed on any securities exchange.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1 Collection of Money.

     (a) Except as otherwise expressly provided herein, the Indenture Trustee
may demand payment or delivery of, and shall receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary,
all money and other property payable to or receivable by the Indenture Trustee
pursuant to this Indenture. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture. Except as otherwise expressly
provided in this Indenture, if any default occurs in the making of any payment
or performance under any agreement or instrument that is part of the Collateral,
the Indenture Trustee may take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

     SECTION 8.2 Payments on the Notes.

     (a) On each Distribution Date, the Paying Agent (or, if the Indenture
Trustee acts as Paying Agent, the Indenture Trustee) shall distribute the
Available Distribution Amount as follows.

          first, to the Noteholders the Interest Distribution Amount for such
          Distribution Date;

          second, to the Noteholders, the amount of Principal Distribution for
          such Distribution Date in reduction of the Note Principal Balance
          until the Note Principal Balance reducted to zero;

          third, to the Noteholders in reduction of the Note Principal Balance,
          the amount, if any, equal to the lessor of (A) the Excess Cash with
          respect to such Distribution Date (after giving effect to application
          of Monthly Principal for such Distribution Date) and (2) the amount
          necessary to reduce the Note Principal Balance to zero (the "Excess
          Cash Payment");

Any Available Distribution Amount remaining after application in the manner
specified above will be released to holders of the Trust Certificates, free and
clear of the lien of this Indenture.

     SECTION 8.3 Release of Collateral.

     (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture or the Servicing

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Agreement shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture or the Servicing Agreement. No party relying upon an instrument
executed by the Indenture Trustee as provided in this Article VIII shall be
bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

     (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding and all sums due to the Noteholders and all fees and expenses of the
Indenture Trustee, the Master Servicer and the Custodians pursuant to this
Indenture have been paid, release any remaining portion of the Collateral that
secured the Notes from the lien of this Indenture and release to the Issuer or
any other Person entitled thereto any funds then on deposit in the Trust
Accounts. The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this subsection (b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and (if required
by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) meeting the applicable requirements of Section 13.1 hereof.

                                   ARTICLE IX

                          ADMINISTRATION OF TRUST FUND

     SECTION 9.1 Collection Accounts; Distribution Account.

     (a) On or prior to the Closing Date, the Master Servicer shall have caused
the Servicers to establish and maintain one or more Collection Accounts, which
shall be Eligible Accounts into which all Scheduled Payments and unscheduled
payments with respect to the Mortgage Loans, net of any deductions or
reimbursements permitted under the related Servicing Agreement, shall be
deposited. On each Remittance Date, the Servicers shall remit to the Indenture
Trustee for deposit into the Distribution Account, all amounts so required to be
deposited into such account in accordance with the terms of the related
Servicing Agreement.

     (b) The Indenture Trustee shall establish and maintain an Eligible Account
entitled "Distribution Account of __________, as Indenture Trustee for the
benefit of the Holders of the Luminent Mortgage Trust 200_ - ____,
Mortgage-Backed Notes, Series 200_ - ____." The Indenture Trustee shall,
promptly upon receipt from the Servicers on each Remittance Date, deposit into
the Distribution Account and retain on deposit until the related Distribution
Date the following amounts:

          (i) the aggregate of collections with respect to the Mortgage Loans
     remitted by the Servicers from the related Collection Accounts and the
     amount of any Monthly Advances, Servicing Advances or Compensating Interest
     Payments with respect to the Mortgage Loans;

          (ii) any amounts required to be deposited by the Master Servicer with
     respect to the Mortgage Loans for the related Due Period pursuant to this
     Agreement, including the amount of any Monthly Advances, Servicing Advances
     or Compensating Interest Payments with respect to the Mortgage Loans not
     paid by the Servicers; and

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          (iii) any other amounts so required to be deposited in the
     Distribution Account in the related Due Period pursuant to this Agreement.

     (c) In the event the Master Servicer or a Servicer has remitted in error to
the Distribution Account any amount not required to be remitted in accordance
with the definition of Available Distribution Amount, it may at any time direct
the Indenture Trustee to withdraw such amount from the Distribution Account for
repayment to the Master Servicer or the related Servicer, as applicable, by
delivery of an Officer's Certificate to Indenture Trustee which describes the
amount deposited in error.

     (d) On each Distribution Date, the Indenture Trustee shall distribute the
Available Distribution Amount to the Noteholders and any other parties entitled
thereto. The Indenture Trustee may from time to time withdraw from the
Distribution Account and pay the Master Servicer, the Indenture Trustee, the
Securities Administrator or any Servicer any amounts permitted to be paid or
reimbursed to such Person from funds in the Distribution Account pursuant to the
clauses (A) through (D) of the definition of Available Distribution Amount.

     (e) Funds in the Distribution Account may be invested in Permitted
Investments selected by and at the written direction of the Master Servicer,
which shall mature not later than one Business Day prior to the Distribution
Date (except that if such Permitted Investment is an obligation of the Master
Servicer, then such Permitted Investment shall mature not later than such
applicable Distribution Date) and any such Permitted Investment shall not be
sold or disposed of prior to its maturity. All such Permitted Investments shall
be made in the name of the Indenture Trustee (in its capacity as such) or its
nominee. All income and gain realized from any Permitted Investment shall be for
the benefit of the Master Servicer and shall be subject to its withdrawal or
order from time to time, and shall not be part of the Trust Fund. The amount of
any losses incurred in respect of any such investments shall be deposited in
such Distribution Account by the Master Servicer out of its own funds, without
any right of reimbursement therefor, immediately as realized.

     SECTION 9.2 Permitted Withdrawals from the Distribution Account. The
Indenture Trustee shall withdraw funds from the Distribution Account for
distributions to Noteholders in the manner specified in this Agreement (and to
withhold from the amounts so withdrawn, the amount of any taxes that it is
authorized to withhold hereunder. In addition, the Indenture Trustee may from
time to time make withdrawals from the Distribution Account for the following
purposes:

          (i) to pay to itself the Indenture Trustee Fee for the related
     Distribution Date;

          (ii) to pay the Master Servicer the Master Servicing Fee for the
     related Distribution Date;

          (iii) to withdraw and return to the related Servicer any amount
     deposited in the Distribution Account and not required to be deposited
     therein; and

          (iv) to clear and terminate the Distribution Account upon termination
     of this Indenture.

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     SECTION 9.3 Advances by Master Servicer. If any Servicer fails to remit any
Advance required to be made under the applicable Servicing Agreement, the Master
Servicer shall itself make, or shall cause the successor Servicer to make, such
Advance. If the Master Servicer determines that an Advance is required, it shall
on the Business Day preceding the Distribution Date immediately following such
Determination Date, remit to the Securities Administrator from its own funds (or
funds advanced by the applicable Servicer) for deposit in the Distribution
Account immediately available funds in an amount equal to such Advance. The
Master Servicer and each Servicer shall be entitled to be reimbursed for all
Advances made by it. Notwithstanding anything to the contrary herein, in the
event the Master Servicer determines in its reasonable judgment that an Advance
is a Non-recoverable Advance, the Master Servicer shall be under no obligation
to make such Advance. If the Master Servicer determines that an Advance is a
Non-recoverable Advance, it shall, on or prior to the related Distribution Date,
deliver an Officer's Certificate to the Indenture Trustee to such effect;
provided, that, with respect to any Mortgage Loan for which the related Servicer
provided an Officer Certificate that any Advance would constitute a
Non-recoverable Advance, such Officer's Certificate shall fulfill the Master
Servicer's obligations under this Section 9.3.

     SECTION 9.4 Compensating Interest Payments. The amount of the aggregate
Master Servicing Fees payable to the Master Servicer in respect of any
Distribution Date shall be reduced (but not below zero) by the amount of any
Compensating Interest Payment for such Distribution Date, but only to the extent
that Prepayment Interest Shortfalls relating to such Distribution Date are
required to be paid but not actually paid by the Servicers. Such amount shall
not be treated as an Advance and shall not be reimbursable to the Master
Servicer.

     SECTION 9.5 Pre-Funding Account.

     (a) The Indenture Trustee shall establish and maintain an Eligible Account,
to be held in trust for the benefit of Noteholders, entitled "Pre-Funding
Account of [o], as Indenture Trustee, for the benefit of Holders of the Luminent
Mortgage Trust 200_-_ Mortgage-Backed Notes." On the Closing Date, the Depositor
will cause to be deposited to the Pre-Funding Account the Pre-Funded Amount.

     (b) Amounts on deposit in the Pre-Funding Account (exclusive of investment
earnings thereon) shall solely be applied to acquire Subsequent Mortgage Loans.

     (c) On any Subsequent Sale Date, the Depositor shall instruct the Indenture
Trustee, in writing, to withdraw funds (exclusive of investment earnings) from
the Pre-Funding Account (specifying the applicable sub-account, if applicable)
in an amount equal to the price for the Subsequent Mortgage Loans to be acquired
on such Subsequent Sale Date, and to pay such amount to the order of the
Depositor. In no event shall the Indenture Trustee withdraw from the Pre-Funding
Account an amount in excess of the Pre-Funded Amount (or portion thereof)
deposited to such Account on the Closing Date.

     (d) During the Pre-Funding Period, amounts on deposit in the Pre-Funding
Account may be invested in Permitted Investments by the Indenture Trustee at the
direction of the Depositor, or in absence of direction from the Depositor, in
money market funds described in paragraph (viii) of the definition of Permitted
Investments in Article I. All such Permitted

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Investments shall be made in the name of the Indenture Trustee (in it capacity
as such) or its nominee. Any investment earnings on such Permitted Investments
held in the Pre-Funding Account shall be immediately transferred to the
Distribution Account and constitute part of the Available Distribution Amount
for distribution to the related Noteholders on the next succeeding Distribution
Date.

     (e) On the last day of the Pre-Funding Period, the Indenture Trustee shall
transfer any remaining Pre-Funded Amount on deposit in the Pre-Funding Account
(or sub-account thereof, if applicable) to the Distribution Account, which will
be held uninvested, and will be included in the Available Distribution Amount
for distribution to the Notes as an additional prepayment of principal on the
immediately following Distribution Date and terminate such Account.

     (f) The Indenture Trustee, on behalf of the Trust, shall be the legal owner
of the Pre-Funding Account. All amounts earned on deposits in the Pre-Funding
Account shall be taxable to ___________. The Indenture Trustee shall release to
___________ all investment earnings in the Pre-Funding Account on the Business
Day immediately following the end of the Pre-Funding Period.

     (g) On the Subsequent Sales Date, each Subsequent Mortgage Loan must meet
the following conditions: (i) the remaining term to maturity of each Subsequent
Mortgage Loan may not exceed 30 years; (ii) the addition of the Subsequent
Mortgage Loans will not result in the reduction, qualification or withdrawal of
the then current ratings of the Notes; (iii) no Subsequent Mortgage Loan may
have a Loan-to-Value Ratio greater than 100%; (iv) each Subsequent Mortgage Loan
will be underwritten in accordance with the underwriting guidelines used for the
original Mortgage Loans; (v) the acquisition of the Subsequent Mortgage Loans
will not lower the weighed average annual percentage rate of all of the Mortgage
Loans held by the Trust Fund by 100 basis points or more.

     SECTION 9.6 Financial Assets Custodial Account.

     (a) The Indenture Trustee, shall establish and maintain an Eligible
Account, to be held in trust for the benefit of Noteholders, entitled "Financial
Assets Custodial Account of [o], as Indenture Trustee, for the benefit of the
Holders of the Luminent Mortgage Trust 200_-_ Mortgage-Backed Notes." On the
Closing Date, the Depositor shall cause to be deposited in the Financial Assets
Custodial Account the those Financial Assets identified on Schedule II.

     (b) The Financial Asset Custodial Account is a "securities account" (within
the meaning of Section 8-501(a) of the UCC) in respect of which the Indenture
Trustee is a "securities intermediary" (within the meaning of Section
8-102(a)(14) of the UCC) and the Indenture Trustee is the "entitlement holder"
(within the meaning of Section 8-102(a)(7) of the UCC).

     (c) The Indenture Trustee hereby agrees that each item of property (whether
cash, a security, an instrument or any other property whatsoever) credited to
any of the Accounts shall be treated as a "financial asset" under Article 8 of
the UCC. All securities and other financial assets credited to the Financial
Asset Custodial Account that are in registered form or that are payable to or to
order shall be (i) registered in the name of, or payable to or to the order of,
the

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Indenture Trustee, (ii) endorsed to or to the order of the Indenture Trustee or
in blank or (iii) credited to another securities account maintained in the name
of the Indenture Trustee.

     (d) The Indenture Trustee agrees that its "securities intermediary's
jurisdiction" (within the meaning of Section 8-110(e) of the UCC) with respect
to the Accounts is the State of [o].

     (e) Any distributions received in respect of the Financial Assets during
the related Due Period shall be remitted to the Distribution Account on or prior
to the related Distribution Date for Distribution.

     SECTION 9.7 Calculation of LIBOR.

     (a) For each LIBOR Determination Date, the Indenture Trustee will determine
the arithmetic mean of the London Interbank Offered Rate quotations for
one-month Eurodollar deposits ("LIBOR") for the succeeding Accrual Period on the
basis of the Reference Banks' offered LIBOR quotations provided to the Indenture
Trustee as of 11:00 a.m. (London time) for such LIBOR Determination Date. As
used herein with respect to a LIBOR Determination Date, "REFERENCE BANKS" means
leading banks engaged in transactions in Eurodollar deposits in the
international Eurocurrency market (i) with an established place of business in
London, (ii) whose quotations appear on the Designated Telerate Page for the
LIBOR Determination Date in question and (iii) which have been designated as
such by the Servicer and are able and willing to provide such quotations to the
Servicer for each LIBOR Determination Date. "DESIGNATED TELERATE PAGE" means the
[BBA Page][the Bloomberg Screen US0001 Index Page]. ["BBA PAGE" means the
interest settlement rates set by the British Bankers' Association as currently
displayed on the Dow Jones Telerate Service page 3750.] ["BLOOMBERG SCREEN
US0001M INDEX PAGE" means the display designated as page US0001M on the
Bloomberg Financial Markets Commodities News (or such other pages as may replace
such page on that service for the purpose of displaying LIBOR quotations of
major banks)]. If any Reference Bank should be removed from the Telerate Page or
in any other way fails to meet the qualifications of a Reference Bank, the
Indenture Trustee may, in its sole discretion, designate an alternative
Reference Bank.

     (b) For each LIBOR Determination Date, LIBOR for the next succeeding
Accrual Period will be established by the Indenture Trustee as follows:

          (i) If, for any LIBOR Determination Date, two or more of the Reference
     Banks provide offered LIBOR quotations on the Telerate Page, LIBOR for the
     next Accrual Period will be the arithmetic mean of such offered quotations
     (rounding such arithmetic mean if necessary to the nearest five decimal
     places).

          (ii) If, for any LIBOR Determination Date, only one or none of the
     Reference Banks provides such offered LIBOR quotations for the next
     applicable Accrual Period, LIBOR for the next Accrual Period will be the
     higher of (x) LIBOR as determined for the previous LIBOR Determination Date
     and (y) the Reserve Interest Rate. The "RESERVE INTEREST RATE" will be the
     rate per annum that the Indenture Trustee determines to be either (A) the
     arithmetic mean (rounding such arithmetic mean if necessary to the nearest

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     five decimal places) of the one-month Eurodollar lending rate that New York
     City banks selected by the Indenture Trustee are quoting, on the relevant
     LIBOR Determination Date, to the principal London offices of at least two
     leading banks in the London Interbank market or (B) in the event that the
     Indenture Trustee can determine no such arithmetic mean, the lowest
     one-month Eurodollar lending rate that the New York City banks selected by
     the Indenture Trustee are quoting on such LIBOR Determination Date to
     leading European banks.

          (iii) If, for any LIBOR Determination Date, the Indenture Trustee is
     required but is unable to determine the Reserve Interest Rate in the manner
     provided in paragraph (ii) above, LIBOR for the next applicable Accrual
     Period will be LIBOR as determined for the previous LIBOR Determination
     Date.

     (c) Notwithstanding the foregoing, LIBOR for an Accrual Period shall not be
based on LIBOR for the previous Accrual Period for two consecutive LIBOR
Determination Dates. If, under the priorities described above, LIBOR for an
Accrual Period would be based on LIBOR for the previous LIBOR Determination Date
for the second consecutive LIBOR Determination Date, the Indenture Trustee shall
select an alternative index (over which the Indenture Trustee has no control)
used for determining one-month Eurodollar lending rates that is calculated and
published (or otherwise made available) by an independent third party.

     (d) The establishment of LIBOR (or an alternative index) by the Indenture
Trustee for the relevant Accrual Period, in the absence of manifest error, will
be final and binding.

     SECTION 9.8 Monthly Statements to Noteholders.

     (a) Not later than each Distribution Date, the Indenture Trustee shall
prepare and make available to each Noteholder, the Master Servicer, the
Depositor and each Rating Agency a statement setting forth with respect to the
related distribution:

          (i) the amount thereof allocable to principal, separately identifying
     the aggregate amount of any Principal Prepayments and Liquidation Proceeds
     included therein;

          (ii) the amount thereof allocable to interest, any accrued and unpaid
     Interest Distribution Shortfall Amounts included in such distribution and
     any remaining unpaid Interest Distribution Shortfall Amount after giving
     effect to such distribution;

          (iii) if the distribution to the Holders of such Notes is less than
     the full amount that would be distributable to such Holders if there were
     sufficient funds available therefor, the amount of the shortfall and the
     allocation thereof as between principal and interest;

          (iv) the Note Principal Amount after giving effect to the distribution
     of principal on such Distribution Date;

          (v) the Pool Scheduled Principal Balance for the following
     Distribution Date;

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          (vi) the amount of the Servicing Fees paid to or retained by each
     Servicer with respect to such Distribution Date, and the amount of Master
     Servicing Fees paid to or retained by the Master Servicer with respect to
     such Distribution Date;

          (vii) the amount of Monthly Advances included in the distribution on
     such Distribution Date and the aggregate amount of Monthly Advances
     outstanding as of the close of business on such Distribution Date;

          (viii) the number and aggregate principal amounts of Mortgage Loans
     (A) delinquent (exclusive of Mortgage Loans in foreclosure) (1) one to 30
     days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more days and (B) in
     foreclosure and delinquent (1) one to 30 days (2) 31 to 60 days (3) 61 to
     90 days and (4) 91 or more days, as of the close of business on the last
     day of the calendar month preceding such Distribution Date;

          (ix) with respect to any Mortgage Loan that became an REO Property
     during the preceding calendar month, the loan number and Scheduled
     Principal Balance of such Mortgage Loan as of the close of business on the
     Determination Date preceding such Distribution Date and the date of
     acquisition thereof;

          (x) the total number and principal balance of any REO Properties (and
     market value, if available) as of the close of business on the
     Determination Date preceding such Distribution Date;

          (xi) the aggregate amount of Realized Losses incurred during the
     preceding calendar month;

          (xii) the Special Hazard Loss Coverage Amount, the Fraud Loss Coverage
     Amount and the Bankruptcy Loss Coverage Amount, in each case as of the
     related Determination Date; and

          (xiii) the Pre-Funded Amount, if any, in the Pre-Funding Account on
     the related Distribution Date, the amount of funds, if any, used to
     purchase Subsequent Mortgage Loans during the Pre-Funding Period and the
     amount of funds, if any, allocated as a prepayment of principal at the end
     of the Pre-Funding Period.

     The Indenture Trustee may make the above information available to
Noteholders via the Indenture Trustee's website at [o].

     (b) The Indenture Trustee's responsibility for disseminating the above
information to the Noteholders is limited to the availability, timeliness and
accuracy of the information provided by the Servicers and/or the Master
Servicer.

     (c) Within a reasonable period of time after the end of each calendar year,
the Indenture Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a Noteholder, a statement containing the
information set forth in clauses (a)(i), (a)(ii) and (a)(vii) of this Section
9.8 aggregated for such calendar year or applicable portion thereof during which
such Person was a Noteholder. Such obligation of the Indenture Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be

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provided by the Indenture Trustee pursuant to any requirements of the Code as
from time to time in effect.

     SECTION 9.9 Reports to the Securities and Exchange Commission.

     (a) Within 15 days after each Distribution Date, the Master Servicer 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 to be furnished by the Securities Administrator to the
Noteholders for such Distribution Date as an exhibit thereto. Prior to [o], the
Master Servicer shall, in accordance with industry standards, file a Form 15
Suspension Notice with respect to the Trust Fund, if applicable. Prior to [o]
and annually thereafter (if required), the Master Servicer shall file a Form
10-K, in substance conforming to industry standards, with respect to the Trust
Fund. Such Form 10-K shall include, to the extent available, as exhibits (i)
each applicable Servicer's annual statement of compliance described under the
related Servicing Agreement, (ii) each applicable Servicer's accountants report
described under the related Servicing Agreement, (iii) the Master Servicer's
accountant's report described in Section 12.15, if applicable, in each case to
the extent timely delivered, if applicable, to the Master Servicer, and (iv) a
written certification signed by an officer of the Master Servicer that complies
with the Sarbanes-Oxley Act of 2002 as in effect on the date of this Agreement
and the August 27, 2002, Statement by the Staff of the Division of Corporation
Finance of the Commission Regarding Compliance by Asset-Backed Issuers with
Exchange Act Rules 13a-14 and 15d-14 as in effect as of the date of this
Agreement. If items (i) and (ii) in the preceding sentence are not timely
delivered, the Master Servicer shall file an amended Form 10-K including such
documents as exhibits reasonably promptly after they are delivered to the Master
Servicer. The Indenture Trustee hereby grants to the Master Servicer a limited
power of attorney to execute and file each Form 8-K and Form 10-K on behalf of
the Trust Fund. Such power of attorney shall continue until either the earlier
of (i) receipt by the Master Servicer from the Depositor of written termination
of such power of attorney and (ii) the termination of the Trust Fund. The
Depositor and the Indenture Trustee each agree to promptly furnish to the Master
Servicer, 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 Master Servicer reasonably deems appropriate to prepare
and file all necessary reports with the Commission. The Master Servicer will
cooperate with the Depositor in connection with any additional filings with
respect to the Trust Fund as the Depositor deems necessary under the Securities
Exchange Act of 1934, as amended (the "EXCHANGE ACT"). Copies of all reports
filed by the Master Servicer under the Exchange Act shall be sent to the
Depositor.

     (b) The Master Servicer shall indemnify and hold harmless the Depositor,
the Indenture Trustee and their respective officers, directors and Affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments and other costs and
expenses arising out of or based upon a breach of the Master Servicer's
obligations under this Section 9.9 or the Master Servicer's negligence, bad
faith or willful misconduct in connection therewith. Fees and expenses incurred
by the Master Servicer in connection with this Section 9.9 shall not be
reimbursable from the Trust Fund.

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     SECTION 9.10 Discovery of Breach; Repurchase and Substitution of Mortgage
Loans.

     (a) Pursuant to Section 3.01(h) of the Sale Agreement, the Seller has made
certain representations and warranties as to the characteristics of the Mortgage
Loans as of the Closing Date and the conveyance thereof to Owner Trustee, for
the benefit of the Owner Trustee, Indenture Trustee and the Noteholders and the
Seller has agreed under the terms of the Sale Agreement to comply with the
provisions of this Section SECTION 9.10(a) in respect of a breach of any of such
representations and warranties.

     It is understood and agreed that such representations and warranties set
forth in Section 3.01(h) of the Sale Agreement shall survive delivery of the
Mortgage Files and the Assignment of Mortgage of each Mortgage Loan to the Owner
Trustee and shall continue throughout the term of this Agreement. Upon discovery
by the Depositor or receipt of written notice of any materially defective
document in, or, following the date of delivery to the Indenture Trustee of a
Final Certification, that a document is missing from, a Mortgage File, or
discovery by the Depositor or the Seller of the breach by the Seller of any
representation or warranty under the Sale Agreement in respect of any Mortgage
Loan which materially adversely affects the value of that Mortgage Loan or the
interest therein of the Noteholders (a "DEFECTIVE MORTGAGE LOAN") (each of such
parties hereby agreeing to give written notice thereof to the Indenture Trustee
and the other of such parties), the Indenture Trustee, or its designee, shall
promptly notify the Depositor in writing of such defective or missing document
or breach and request that the Depositor deliver such missing document or cure
or cause the cure of such defect or breach within 90 days from the date that the
Depositor discovered or was notified of such missing document, defect or breach,
and if the Depositor does not deliver such missing document or cure such defect
or breach in all material respects during such period, the Indenture Trustee
shall enforce the Seller's obligation under the Sale Agreement and cause the
Seller to repurchase that Mortgage Loan from the Trust Fund at the Purchase
Price on or prior to the Determination Date following the expiration of such
90-day period; provided, however, that, in connection with any such breach that
could not reasonably have been cured within such 90-day period, if the Seller
shall have commenced to cure such breach within such 90-day period, the Seller
shall be permitted to proceed thereafter diligently and expeditiously to cure
the same within an additional 90-day period. The Purchase Price for the
repurchased Mortgage Loan shall be deposited in the Distribution Account, and
the Indenture Trustee, or its designee, upon receipt of written certification
from the Securities Administrator of such deposit, shall release to the Seller
the related Mortgage File and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, representation or
warranties, as either party shall furnish to it and as shall be necessary to
vest in such party any Mortgage Loan released pursuant hereto and the Indenture
Trustee, or its designee, shall have no further responsibility with regard to
such Mortgage File (it being understood that the Trustee shall have no
responsibility for determining the sufficiency of such assignment for its
intended purpose).

     In lieu of [repurchasing any such Mortgage Loan as provided above, either
party may cause such Mortgage Loan to be removed from the Trust Fund (in which
case it shall become a "DELETED MORTGAGE LOAN") and substitute one or more
Substitute Mortgage Loans in the manner and subject to the limitations set forth
in Section 9.10(b) below. If the Seller is not a member of MERS at the time when
it repurchases a Mortgage Loan and the Mortgage is

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registered on the MERS(R) System, the Seller, at its own expense and without any
right of reimbursement, shall cause MERS to execute and deliver an assignment of
the Mortgage in recordable form to transfer the Mortgage from MERS to the Seller
and shall cause such Mortgage to be removed from registration on the MERS(R)
System in accordance with MERS's rules and regulations. It is understood and
agreed that the obligation of the Seller to cure or to repurchase (or to
substitute for) any Mortgage Loan as to which a document is missing, a material
defect in a constituent document exists or as to which such a breach has
occurred and is continuing shall constitute the sole remedy against the such
party respecting such omission, defect or breach available to the Indenture
Trustee on behalf of the Noteholders.

     (b) Any substitution of Substitute Mortgage Loans for Deleted Mortgage
Loans made pursuant to Section 9.10(a) above must be effected prior to the last
Business Day that is within two years after the Closing Date. As to any Deleted
Mortgage Loan for which the Seller substitutes a Substitute Mortgage Loan or
Loans, such substitution shall be effected by delivering to the Indenture
Trustee, for such Substitute Mortgage Loan or Loans, the Mortgage Note, the
Mortgage, the Assignment to the Owner Trustee, and such other documents and
agreements, with all necessary endorsements thereon, together with an Officers'
Certificate stating that each such Substitute Mortgage Loan satisfies the
definition thereof and specifying the Substitution Adjustment Amount (as
described below), if any, in connection with such substitution. The Indenture
Trustee shall acknowledge receipt for such Substitute Mortgage Loan and, within
45 days thereafter, shall review such Mortgage Files and deliver to the
Indenture Trustee and the Depositor, with respect to such Substitute Mortgage
Loans, a certification substantially in the form of a revised Initial
Certification, with any exceptions noted thereon. Within one year of the date of
substitution, the Custodian shall deliver to the Indenture Trustee and the
Depositor a certification substantially in the form of a revised Final
Certification, with respect to such Substitute Mortgage Loans, with any
exceptions noted thereon. Scheduled Payments due with respect to Substitute
Mortgage Loans in the month of substitution shall not be included as part of the
Trust Fund and shall be retained by the Seller. For the month of substitution,
distributions to Noteholders shall reflect the collections and recoveries in
respect of such Deleted Mortgage Loan in the Due Period preceding the month of
substitution and the Seller shall thereafter be entitled to retain all amounts
subsequently received in respect of such Deleted Mortgage Loan. Upon such
substitution, such Substitute Mortgage Loan shall constitute part of the Trust
Fund and shall be subject in all respects to the terms of this Agreement and the
Sale Agreement, including all representations and warranties thereof included in
the Sale Agreement, in each case as of the date of substitution.

     For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the related Servicer
shall determine the excess (each, a "SUBSTITUTION ADJUSTMENT Amount"), if any,
by which the aggregate Purchase Price of all such Deleted Mortgage Loans exceeds
the aggregate Scheduled Principal Balance of the Substitute Mortgage Loans
replacing such Deleted Mortgage Loans, together with one month's interest on
such excess amount at the applicable Net Mortgage Rate. On the date of such
substitution, the Seller shall deliver or cause to be delivered to the Servicer
for deposit in the related Collection Account an amount equal to the related
Substitution Adjustment Amount, if any, and the Indenture Trustee, upon receipt
of the related Substitute Mortgage Loan or Loans and certification by the
related Servicer of such deposit, shall release to the Seller the related
Mortgage File or Files and shall execute and deliver such instruments of
transfer or assignment,

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in each case without recourse, as the Seller shall deliver to it and as shall be
necessary to vest therein any Deleted Mortgage Loan released pursuant hereto.

                                   ARTICLE X

                             SUPPLEMENTAL INDENTURES

     SECTION 10.1 Supplemental Indentures Without Consent of Noteholders.

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

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

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

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

          (iv) to (A) cure any ambiguity, (B) correct or supplement any
     provision herein or in any supplemental indenture that may be inconsistent
     with any other provisions herein or in any supplemental indenture or to
     conform the provisions hereof to those of any Offering Document, (C) obtain
     a rating for the Notes from a nationally recognized statistical rating
     organization, or (D) make any other provisions with respect to matters or
     questions arising under this Indenture; provided, however, that no such
     supplemental indenture entered into pursuant to clause (D) of this
     subparagraph (iv) shall adversely affect in any material respect the
     interests of any Holder not consenting thereto;

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

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

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provided, however, that no such supplemental indenture shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel stating
that entering into such supplemental indenture will not (A) result in a
"substantial modification" of the Notes under Treasury Regulation Section
1.1001.3 or adversely affect the status of the Notes as indebtedness for federal
income tax purposes or (B) cause the Trust to be subject to an entity level tax.

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

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any Noteholder and prior notice to the
Rating Agencies, enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Noteholders under this Indenture; provided, however,
that such action shall not, as evidenced by either (i) an Opinion of Counsel or
(ii) satisfaction of the Rating Agency Condition, adversely affect in any
material respect the interests of any Noteholder.

     SECTION 10.2 Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with the prior consent of the Rating Agencies and with the consent of Holders of
not less than 66-2/3% of the Outstanding Amount of Notes, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Notes under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Note
affected thereby:

     (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the interest rate
thereon, change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Collateral to payment of
principal of or interest on the Notes, or change any place of payment where, or
the coin or currency in which, any Note or the interest thereon is payable, or
impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in
Article V, to the payment of any such amount due on the Notes on or after the
respective due dates thereof (or, in the case of redemption, on or after the
Redemption Date);

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

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

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

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

     (f) modify any of the provisions of this Indenture in such manner as to
affect the calculation of the amount of any payment of interest or principal due
on any Note on any Distribution Date; or

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

     The Indenture Trustee may rely on an Opinion of Counsel (at the expense of
the party requesting the supplemental indenture) regarding whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be conclusive upon the Holders of all Notes, whether theretofore or
thereafter authenticated and delivered hereunder.

     In connection with requesting the consent of the Noteholders pursuant to
this Section, the Issuer shall mail to the Holders of the Notes to which such
amendment or supplemental indenture relates and to the Owner Trustee a notice
setting forth in general terms the substance of such supplemental indenture. It
shall not be necessary for any Act of Noteholders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

     SECTION 10.3 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

     SECTION 10.4 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall
be and shall be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental

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indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     SECTION 10.5 Conformity with Trust Indenture Act. Every amendment of this
Indenture and every supplemental indenture executed pursuant to this Article IX
shall conform to the requirements of the Trust Indenture Act as then in effect
so long as this Indenture shall then be qualified under the Trust Indenture Act.

     SECTION 10.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

     SECTION 10.7 Amendments to Trust Agreement. The Indenture Trustee shall,
upon Issuer Order, consent to any proposed amendment to the Trust Agreement or
an amendment to or waiver of any provision of any other document relating to the
Trust Agreement, such consent to be given without the necessity of obtaining the
consent of the Holders of any Notes upon satisfaction of the requirements under
Section 11.1 of the Trust Agreement.

     Nothing in this Section shall be construed to require that any Person
obtain the consent of the Indenture Trustee to any amendment or waiver or any
provision of any document where the making of such amendment or the giving of
such waiver without obtaining the consent of the Indenture Trustee is not
prohibited by this Indenture or by the terms of the document that is the subject
of the proposed amendment or waiver.

                                   ARTICLE XI

             DISPOSITION OF THE COLLATERAL; REDEMPTION OF THE NOTES

     SECTION 11.1 Redemption of the Notes.

     (a) All the Notes may be redeemed in whole, but not in part, on the
Redemption Date at the Redemption Price at the option of the holders of a
majority of the percentage interests of the Certificates provided, however, that
funds in an amount equal to the Redemption Price, any unreimbursed Servicing
Advances and any unreimbursed amounts due and owing to the Indenture Trustee
hereunder, must have been deposited with the Indenture Trustee prior to the
Indenture Trustee's giving notice of such redemption pursuant to Section 11.2 or
the Issuer shall have complied with the requirements for satisfaction and
discharge of the Notes specified in Section 4.1. Notice of the election to
redeem the Notes shall be furnished to the Indenture Trustee and each Noteholder
not later than 30 days prior to the Distribution Date selected for such
redemption, whereupon all such Notes shall be due and payable on such
Distribution Date upon the furnishing of a notice pursuant to Section 11.2 to
each Holder of such Notes and the Note Issuer.

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     (b) Upon receipt of the notice from the party exercising its election to
redeem the Notes pursuant to Section 11.1(a), the Indenture Trustee shall
prepare and deliver to the Issuer, no later than the related Redemption Date, a
Distribution Date Statement stating therein that it has determined that the
conditions to redemption at the option of the Issuer have been satisfied and
setting forth the amount, if any, to be withdrawn from the Distribution Account
and paid to the Servicer as reimbursement for Servicing Advances and such other
information as may be required to accomplish such redemption.

     (c) The Notes may be redeemed in whole, but not in part, on a Distribution
Date specified by the Issuer at any time upon a determination by the Issuer,
based on an Opinion of Counsel addressed to the Issuer, the Indenture Trustee
and the Noteholders, that a substantial risk exists that the Notes will not be
treated for federal income tax purposes as evidence of indebtedenss.

     SECTION 11.2 Form of Redemption Notice. Notice of redemption under Section
11.1 hereof shall be given by the Indenture Trustee by first-class mail, postage
prepaid, or by facsimile mailed or transmitted not later than ten days prior to
the applicable Redemption Date to each Holder of the Notes to be redeemed, as of
the close of business on the Record Date preceding the applicable Redemption
Date, at such Holder's address or facsimile number appearing in the Note
Register.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) that on a Redemption Date, if the Notes are not to be paid in full, (i)
the Redemption Price will become due and payble only with respect to the Notes
as shall be specified in such notice and that the amount payable in respect of
the redeemed Notes shall be limited to the Redemption Price therefor and (ii)
that interest thereon shall cease to accrue on the date specified on the notice
for, and that payment of the Redemption Price will be made to, the Persons whose
names appear as the registered holders thereof on the Note Register as of the
Record Date applicable to such Redemption Date and identified in such notice of
redemption;

     (d) that on a Redemption Date, if the Notes are to be paid in full, (i) the
fact of such payment in full and that interest thereon shall cease to accrue on
the date specified on the notice and (ii) that the payment of all other amounts
described in Section 7.01(a)(ii) of the Servicing Agreement will be made; and

     (e) the place where such Notes are to be surrendered for payment of the
Redemption Price (which shall be the office or agency of the Issuer to be
maintained as provided in Section 3.02 hereof).

     Notice of redemption of the Notes shall be given by the Indenture Trustee
in the name of the Issuer and at the expense of [ o ]. Failure to give to any
Holder of any Note notice of redemption, or any defect therein, shall not impair
or affect the validity of the redemption of any other Note.

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     SECTION 11.3 Notes Payable on Redemption Date. Notes to be redeemed shall,
following notice of redemption as required by Section 11.2 hereof (in the case
of redemption pursuant to Section 11.1) hereof, on the applicable Redemption
Date become due and payable at the Redemption Price and (unless the Issuer shall
default in the payment of the Redemption Price) no interest shall accrue thereon
for any period after the date to which accrued interest is calculated for
purposes of calculating the Redemption Price. The Issuer may not redeem the
Notes unless (i) all outstanding obligations under the Notes have been paid in
full and (ii) the Indenture Trustee has been paid all amounts to which it is
entitled hereunder.

                                  ARTICLE XII

                          ADMINISTRATION AND SERVICING
                    OF MORTGAGE LOANS BY THE MASTER SERVICER

     SECTION 12.1 Duties of the Master Servicer; Enforcement of Servicers'
                  Obligations.

     (a) The Master Servicer, on behalf of the Indenture Trustee, the Depositor
and the Noteholders shall monitor the performance of each Servicer, and shall
use its reasonable good faith efforts to cause each Servicer to duly and
punctually perform all of its duties and obligations in accordance with the
terms of the applicable Servicing Agreement (including the obligation of each
Servicer to maintain an errors and omissions policy and Fidelity Bond). Upon the
occurrence of an "Event of Default" (as defined in the applicable Servicing
Agreement) of which an Authorized Officer of the Master Servicer has actual
knowledge, the Master Servicer shall promptly notify the Indenture Trustee
thereof, and shall specify in such notice the action, if any, the Master
Servicer is taking in respect of such default. So long as any such default shall
be continuing, the Master Servicer may, and shall if it determines such action
to be in the best interests of Noteholders, (i) terminate all of the rights and
powers of such Servicer as provided in the applicable Servicing Agreement; (ii)
exercise any rights it may have to enforce the Servicing Agreement against such
Servicer; and/or (iii) waive any such default or take any other action with
respect to such default as is permitted thereunder.

     (b) Upon any termination by the Master Servicer of a Servicer's rights and
powers pursuant to the Servicing Agreement, subject to Section 12.11 the Master
Servicer shall either (i) with the consent of the Indenture Trustee and the
Rating Agencies, such consent not to be unreasonably withheld, and in accordance
with the applicable provisions of the Servicing Agreement, appoint a successor
servicer under the related Servicing Agreement or (ii) assume the obligations of
the terminated Servicer under the related Servicing Agreement; provided,
however, that it is understood and agreed by the parties hereto that there will
be a period of transition (not to exceed 90 days) before the actual servicing
functions can be fully transferred to a successor servicer (including the Master
Servicer). In connection with the appointment of any successor servicer, the
Master Servicer may make such arrangements for the compensation of such
successor as it and such successor shall agree, but in no event shall such
compensation of any successor servicer (including the Master Servicer) be in
excess of that payable to the nominated Servicer.

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     (c) The Master Servicer shall pay the costs of such enforcement (including
the termination of any Servicer, the appointment of a successor servicer or the
transfer and assumption of the servicing by the Master Servicer) at its own
expense and shall be reimbursed therefor initially (i) by the terminated
Servicer, (ii) 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, (iii) from a specific recovery of costs, expenses or
attorney's fees against the party against whom such enforcement is directed, or
(iv) to the extent that such amounts described in (i)-(iii) above are
insufficient to reimburse the Master Servicer for such costs of enforcement,
from the Trust Fund, as provided in Section 12.2.

     (d) If the Master Servicer assumes the servicing with respect to any of the
Mortgage Loans, it will not assume liability for the representations and
warranties of any Servicer it replaces or for the errors or omissions of such
Servicer.

          (i) Upon any termination of a Servicer's rights and powers pursuant to
     its Servicing Agreement, the Master Servicer shall promptly notify the
     Indenture Trustee and the Rating Agencies, specifying in such notice that
     the Master Servicer or any successor servicer, as the case may be, has
     succeeded the Servicer, which notice shall also specify the name and
     address of any such successor servicer.

          (ii) Neither the Depositor nor the Indenture Trustee shall consent to
     the assignment by any Servicer of such Servicer's rights and obligations
     under the related Servicing Agreement without the prior written consent of
     the Master Servicer, which consent shall not be unreasonably withheld.

     (e) The Master Servicer is hereby authorized and empowered by the Indenture
Trustee, on behalf of the Noteholders and the Indenture Trustee, in its own name
or in the name of any Servicer, when the Master Servicer or the related
Servicer, as the case may be, believes it appropriate in its best judgment to
register any Mortgage Loan on the MERS(R) System, or cause the removal from the
registration of any Mortgage Loan on the MERS(R) System, to execute and deliver,
on behalf of the Indenture Trustee and the Noteholders of any of them, any and
all instruments of assignment and other comparable instrument with respect to
such assignment or re-recording of a Mortgage in the name of MERS, solely as
nominee for the Indenture Trustee and its successors and assigns. Any expenses
incurred in connection with the actions described in the preceding sentence
shall be borne by the Master Servicer, with no right of reimbursement; provided,
that if, as a result of MERS discontinuing or becoming unable to continue
operations in connection with the MERS System, it becomes necessary to remove
any Mortgage Loan from registration on the MERS System and to arrange for the
assignment of the related Mortgages to the Indenture Trustee, then any related
expenses shall be reimbursable to the Master Servicer.

     SECTION 12.2 Compensation to the Master Servicer. The Master Servicer shall
be entitled to be paid by the Trust Fund, and may either retain or withdraw from
the Distribution Account, (i) its Master Servicing Fee with respect to each
Distribution Date, (ii) amounts necessary to reimburse itself for any previously
unreimbursed Monthly Advances, Servicer Advances and Non-recoverable Advances in
accordance with the definition of "Available Distribution Amount" and (iii)
amounts representing assumption fees, late payment charges or other ancillary
income not included in the definition of "Available Distribution Amount" and

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which are not required to be remitted by the Servicers to the Indenture Trustee
or deposited by the Indenture Trustee into the Distribution Account. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor
except as provided in this Agreement.

     SECTION 12.3 Merger or Consolidation. Any Person into which the Master
Servicer may be merged or consolidated, or any Person resulting from any merger,
conversion, other change in form 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 to the Master Servicer hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided,
however, that the successor or resulting Person to the Master Servicer shall be
a Person that shall be qualified and approved to service mortgage loans for
Fannie Mae or Freddie Mac and shall have a net worth of not less than
$15,000,000.

     SECTION 12.4 Resignation of Master Servicer. Except as otherwise provided
in Sections 12.3 and 12.5 hereof, the Master Servicer shall not resign from the
obligations and duties hereby imposed on it unless the Master Servicer's duties
hereunder are no longer permissible under applicable law or are in material
conflict by reason of applicable law with any other activities carried on by it
and cannot be cured. Any such determination permitting the resignation of the
Master Servicer shall be evidenced by an Opinion of Counsel that shall be
Independent to such effect delivered to the Indenture Trustee. No such
resignation shall become effective until the Indenture Trustee shall have
assumed, or a successor master servicer shall have been appointed by the
Indenture Trustee and until such successor shall have assumed, the Master
Servicer's responsibilities and obligations under this Agreement. Notice of such
resignation shall be given promptly by the Master Servicer and the Depositor to
the Indenture Trustee.

     If, at any time, the Master Servicer resigns under this Section, or
transfers or assigns its rights and obligations under Section 12.5, then at such
time as [o] also shall resign (and shall be entitled to resign) as Securities
Administrator under this Agreement. In such event, the obligations of each such
party shall be assumed by the Indenture Trustee or such successor master
servicer appointed by the Indenture Trustee (subject to the provisions of
Section 12.2).

     SECTION 12.5 Assignment or Delegation of Duties by the Master Servicer.

     Except as expressly provided herein, the Master Servicer shall not assign
or transfer any of its rights, benefits or privileges hereunder to any other
Person, or delegate to or subcontract with, or authorize or appoint any other
Person to perform any of the duties, covenants or obligations to be performed by
the Master Servicer hereunder; provided, however, that the Master Servicer shall
have the right with the prior written consent of the Indenture Trustee and the
Depositor (which consent shall not be unreasonably withheld), and upon delivery
to the Indenture Trustee and the Depositor of a letter from each Rating Agency
to the effect that such action shall not result in a downgrading of the Notes,
to delegate or assign to or subcontract with or authorize or appoint any
qualified Person to perform and carry out any duties, covenants or obligations
to be performed and carried out by the Master Servicer hereunder. Notice of such
permitted assignment shall be given promptly by the Master Servicer to the
Depositor and the Indenture Trustee. If, pursuant to any provision hereof, the
duties of the Master Servicer are

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transferred to a successor master servicer, the entire amount of the Master
Servicing Fees and other compensation payable to the Master Servicer pursuant
hereto shall thereafter be payable to such successor Master Servicer. Such
successor Master Servicer shall also pay the fees of the Indenture Trustee and
the Securities Administrator, as provided herein.

     SECTION 12.6 Limitation on Liability of the Master Servicer. Neither the
Master Servicer nor any of the directors, officers, employees or agents of the
Master Servicer shall be under any liability to the Indenture Trustee or the
Noteholders for any action taken or for refraining from the taking of any action
in good faith pursuant to this Agreement, or for errors in judgment; provided,
however, that this provision shall not protect the Master Servicer or any such
person against any liability that would otherwise be imposed by reason of
willful misfeasance, bad faith or negligence in its performance of its duties or
by reason of reckless disregard for its obligations and duties under this
Agreement. The 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. The Master Servicer shall be under no obligation to appear
in, prosecute or defend any legal action that is not incidental to its duties to
master service the Mortgage Loans in accordance with this Agreement and that in
its opinion may involve it in any expenses or liability; provided, however, that
the Master Servicer may in its sole discretion undertake any such action that it
may deem necessary or desirable in respect to this Agreement and the rights and
duties of the parties hereto and the interests of the Noteholders 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
Distribution Account.

     The Master Servicer shall not be liable for any acts or omissions of any
Servicer except to the extent that damages or expenses are incurred as a result
of such act or omissions and such damages and expenses would not have been
incurred but for the negligence, willful misfeasance, bad faith or recklessness
of the Master Servicer in supervising, monitoring and overseeing the obligations
of the Servicers in this Agreement.

     SECTION 12.7 Indemnification; Third-Party Claims. The Master Servicer
agrees to indemnify the Depositor, the Securities Administrator and the
Indenture Trustee, and hold them harmless against any and all claims, losses,
penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, liability, fees and expenses that the Depositor, the Securities
Administrator or the Indenture Trustee may sustain as a result of the Master
Servicer's willful misfeasance, bad faith or negligence in the performance of
its duties hereunder or by reason of its reckless disregard for its obligations
and duties under this Agreement. The Depositor, the Securities Administrator and
the Indenture Trustee shall immediately notify the Master Servicer if a claim is
made by a third party with respect to this Agreement or the Mortgage Loans
entitling the Depositor, the Securities Administrator or the Indenture Trustee
to indemnification under this Section 12.7, whereupon the Master Servicer shall
assume the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or them in respect of such
claim.

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     SECTION 12.8 Master Servicer Events of Default. "Master Servicer Event of
Default," wherever used herein, means any one of the following events:

          (i) any failure by the Master Servicer to remit to the Indenture
     Trustee for distribution to the Noteholders any payment required to be made
     under the terms of the Notes and this Agreement which continues unremedied
     for a period of one Business Day after the date upon which written notice
     of such failure, requiring the same to be remedied, shall have been given
     to the Master Servicer by the Depositor or the Indenture Trustee, or to the
     Master Servicer, the Depositor and the Indenture Trustee by the Holders of
     Notes entitled to at least 25% of the Voting Rights; or

          (ii) any failure on the part of the Master Servicer duly to observe or
     perform in any material respect any other of the covenants or agreements on
     the part of the Master Servicer contained in this Agreement, which
     continues unremedied for a period of 30 days after the earlier of (i) the
     date on which written notice of such failure, requiring the same to be
     remedied, shall have been given to the Master Servicer by the Depositor or
     the Indenture Trustee, or to the Master Servicer, the Depositor and the
     Indenture Trustee by the Holders of Notes entitled to at least 25% of the
     Voting Rights and (ii) actual knowledge of such failure by a Servicing
     Officer of the Master Servicer; or

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

          (iv) the Master Servicer shall consent to the appointment of a
     conservator or receiver or liquidator in any insolvency, readjustment of
     debt, marshalling of assets and liabilities or similar proceedings of or
     relating to it or of or relating to all or substantially all of its
     property; or

          (v) the Master Servicer shall admit in writing its inability to pay
     its debts generally as they become due, file a petition to take advantage
     of any applicable insolvency or reorganization statute, make an assignment
     for the benefit of its creditors, or voluntarily suspend payment of its
     obligations; or

          (vi) The Master Servicer shall be dissolved, or shall dispose of all
     or substantially all of its assets, or consolidate with or merge into
     another entity or shall permit another entity to consolidate or merge into
     it, such that the resulting entity does not meet the criteria for a
     successor Servicer as specified in Section 12.3 hereof; or

          (vii) If a representation or warranty of the Master Servicer shall
     prove to be incorrect as of the time made in any respect that materially
     and adversely affects the interests of the Noteholders, and the
     circumstance or condition in respect of which such representation or
     warranty was incorrect shall not have been eliminated or cured within

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     30 days after the date on which written notice of such incorrect
     representation or warranty shall have been given to the Master Servicer by
     the Indenture Trustee or the Securities Administrator, or to the Master
     Servicer, the Securities Administrator and the Indenture Trustee by the
     Holders of Notes entitled to at least 25% of the Voting Rights; or

          (viii) A sale or pledge of any of the rights of the Master Servicer
     hereunder or an assignment of this Agreement by the Master Servicer or a
     delegation of the rights or duties of the Master Servicer hereunder shall
     have occurred in any manner not otherwise permitted hereunder and without
     the prior written consent of the Indenture Trustee and Holders of Notes
     entitled to at least 25% of the Voting Rights; or

          (ix) After receipt of notice from the Indenture Trustee, any failure
     of the Master Servicer to make any Advances required to be made hereunder.

     If a Master Servicer Event of Default described in clauses (i) through (ix)
of this Section shall occur, then, and in each and every such case, so long as
such Master Servicer Event of Default shall not have been remedied, the
Depositor or the Indenture Trustee may, and at the written direction of the
Holders of Notes entitled to at least 51% of Voting Rights, the Indenture
Trustee shall, by notice in writing to the Master Servicer (and to the Depositor
if given by the Indenture Trustee or to the Indenture Trustee if given by the
Depositor), terminate all of the rights and obligations of the Master Servicer
in its capacity as Master Servicer under this Agreement, to the extent permitted
by law, and in and to the Mortgage Loans and the proceeds thereof. Any such
notice to the Master Servicer shall also be given to each Rating Agency and the
Depositor. On or after the receipt by the Master Servicer of such written
notice, all authority and power of the Master Servicer under this Agreement,
whether with respect to the Notes (other than as a Holder of any Note) or the
Mortgage Loans or otherwise, shall pass to and be vested in the Indenture
Trustee (or if another successor Master Servicer shall at such time have already
been appointed in accordance with Section 12.9, in such successor Master
Servicer) pursuant to and under this Section (subject to Section 12.9), and,
without limitation, the Indenture Trustee (or such other successor Master
Servicer appointed in accordance with Section 12.9) is hereby authorized and
empowered, as attorney-in-fact or otherwise, to execute and deliver, on behalf
of and at the expense of the Master Servicer, 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 promptly (and in any
event no later than ten Business Days subsequent to such notice) to provide the
Indenture Trustee (or such other successor Master Servicer appointed in
accordance with Section 12.9) with all documents and records in the Master
Servicer's possession requested by the Indenture Trustee (or such other
successor Master Servicer appointed in accordance with Section 12.9) to enable
the Indenture Trustee (or such other successor Master Servicer appointed in
accordance with Section 12.9) to assume the Master Servicer's functions under
this Agreement, and to cooperate with the Indenture Trustee (or such other
successor Master Servicer appointed in accordance with Section 12.9) in
effecting the termination of the Master Servicer's responsibilities and rights
under this Agreement, including, without limitation, the transfer within one
Business Day to the Indenture Trustee (or such other successor Master Servicer
appointed in accordance with Section 12.9) for administration by it of all cash
amounts which at the time shall

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be or should have been credited by the Master Servicer to the Collection Account
held by or on behalf of the Master Servicer, or thereafter be received with
respect to the Mortgage Loans or any REO Property serviced by the Master
Servicer (provided, however, that the Master Servicer shall continue to be
entitled to receive all amounts accrued or owing to it under this Agreement on
or prior to the date of such termination, and shall continue to be entitled to
the benefits of Section 12.6, notwithstanding any such termination, with respect
to events occurring prior to such termination). For purposes of this Section
12.8, the Indenture Trustee shall not be deemed to have knowledge of a Master
Servicer Event of Default unless a Responsible Officer of the Indenture Trustee
assigned to and working in the Indenture Trustee's Corporate Trust Office has
actual knowledge thereof or unless written notice of any event which is in fact
such a Master Servicer Event of Default is received by the Indenture Trustee and
such notice references the Notes, the Trust Fund or this Agreement.

     SECTION 12.9 Indenture Trustee to Act; Appointment of Successor.

     (a) On and after the time the Master Servicer receives a notice of
termination, the Indenture Trustee shall be the successor in all respects to the
Master Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein, and all the responsibilities,
duties and liabilities relating thereto and arising thereafter shall be assumed
by the Indenture Trustee (except for any representations or warranties of the
Master Servicer under this Agreement, the responsibilities, duties and
liabilities contained in Section 12.1 and the obligation to deposit amounts in
respect of losses pursuant to Section 12.1) by the terms and provisions hereof;
provided, however, that any failure to perform such duties or responsibilities
during the period following the termination of the Master Servicer reasonably
necessary for the Indenture Trustee as successor to the Master Servicer
hereunder to assume the duties and responsibilities of the Master Servicer or
caused by the Master Servicer's failure to provide information, documents or
funds (or any other items reasonably requested by the Indenture Trustee in order
to succeed to the Master Servicer's responsibilities, duties and liabilities
hereunder) required by Section 12.8 shall not be considered a default by the
Indenture Trustee as successor to the Master Servicer hereunder and shall not
result in any liability to the Indenture Trustee. As compensation therefor, the
Indenture Trustee shall be entitled to the Master Servicing Fee and all funds
relating to the Mortgage Loans to which the Master Servicer would have been
entitled if it had continued to act hereunder. Notwithstanding the above, the
Indenture Trustee may, if it shall be unwilling to so act, or shall, if it is
unable to so act or if it is prohibited by law from making advances regarding
delinquent mortgage loans or if the Holders of Notes entitled to at least 51% of
the Voting Rights so request in writing to the Indenture Trustee, promptly
appoint, or petition a court of competent jurisdiction to appoint, an
established mortgage loan servicing institution acceptable to each Rating Agency
and having a net worth of not less than $50,000,000, as the successor to the
Master Servicer under this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer under this
Agreement.

     The appointment of a successor Master Servicer shall not affect any
liability of the predecessor Master Servicer which may have arisen under this
Agreement prior to its termination as Master Servicer to indemnify the Indenture
Trustee pursuant to Section 12.7, nor shall any successor Master Servicer be
liable for any acts or omissions of the predecessor Master Servicer or for any
breach by such Master Servicer of any of its representations or warranties
contained

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herein or in any related document or agreement. The Indenture Trustee and such
successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. All costs and expenses associated
with the transfer of the master servicing responsibilities shall be paid by the
terminated Master Servicer upon presentation of reasonable documentation of such
costs.

     (b) No appointment of a successor to the Master Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Master Servicer's responsibilities, duties and liabilities hereunder. In
connection with such appointment and assumption described herein, the Indenture
Trustee may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the
Master Servicer as such hereunder. The Depositor, the Indenture Trustee and such
successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. Pending appointment of a successor
to the Master Servicer under this Agreement, the Indenture Trustee shall act in
such capacity as hereinabove provided.

     (c) In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Indenture Trustee if the Indenture Trustee is acting as successor Master
Servicer, shall represent and warrant that it is a member of MERS in good
standing and shall agree to comply in all material respects with the rules and
procedures of MERS in connection with the servicing of the Mortgage Loans that
are registered with MERS, in which case the predecessor Master Servicer shall
cooperate with the successor Master Servicer in causing MERS to revise its
records to reflect the transfer of servicing to the successor Master Servicer as
necessary under MERS' rules and regulations, or (ii) the predecessor Master
Servicer shall cooperate with the successor Master Servicer in causing MERS to
execute and deliver an assignment of Mortgage in recordable form to transfer the
Mortgage from MERS to the Indenture Trustee and to execute and deliver such
other notices, documents and other instruments as may be necessary or desirable
to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on
the MERS(R) System to the successor Master Servicer. The predecessor Master
Servicer shall file or cause to be filed any such assignment in the appropriate
recording office. The predecessor Master Servicer shall bear any and all fees of
MERS, costs of preparing any assignments of Mortgage, and fees and costs of
filing any assignments of Mortgage that may be required under this subsection
(c). The successor Master Servicer shall cause such assignment to be delivered
to the Indenture Trustee or the Custodian promptly upon receipt of the original
with evidence of recording thereon or a copy certified by the public recording
office in which such assignment was recorded.

     SECTION 12.10 Notification to Noteholders.

     (a) Upon any termination of the Master Servicer pursuant to Section 12.8
above or any appointment of a successor to the Master Servicer pursuant to
Section 12.9 above, the Indenture Trustee shall give prompt written notice
thereof to the Noteholders at their respective addresses appearing in the Note
Register.

     (b) Not later than the later of (i) 60 days after the occurrence of any
event, which constitutes or which, with notice or lapse of time or both, would
constitute a Master Servicer

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Event of Default and (ii) five days after a Responsible Officer of the Indenture
Trustee becomes aware of the occurrence of such an event, the Indenture Trustee
shall transmit by mail to all Holders of Notes notice of each such occurrence,
unless such default or Master Servicer Event of Default shall have been cured or
waived.

     SECTION 12.11 Master Servicer to Act as Servicer; Appointment of Successor.
On and after the time any Servicer resigns or is terminated pursuant to the
terms of the applicable Servicing Agreement, the Master Servicer either shall
appoint a successor servicer pursuant to the related Servicing Agreement or
shall assume the obligations of such Servicer in its capacity as Servicer under
the related Servicing Agreement and the transactions set forth or provided for
herein and shall be subject to all the responsibilities, duties and liabilities
relating thereto placed on such Servicer by the terms and provisions of the
applicable Servicing Agreement and applicable law. As compensation therefor, the
Master Servicer shall be entitled to all funds relating to the Mortgage Loans
that the Servicer would have been entitled to charge to the related Collection
Account if the Servicer had continued to act hereunder. Notwithstanding the
foregoing, if the Master Servicer has become the successor to a Servicer, the
Master Servicer may, if it shall be unwilling to so act, or if it is otherwise
unable to so act, appoint, or petition a court of competent jurisdiction to
appoint, any established mortgage loan servicing institution the appointment of
which does not adversely affect the then current rating of the Notes by each
Rating Agency as the successor to the related Servicer pursuant to the
applicable Servicing Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer thereunder. Any
successor to any Servicer shall be an institution which is a Fannie Mae and
Freddie Mac approved seller/servicer in good standing, which has a net worth of
at least $15,000,000, and which is willing to service the Mortgage Loans and
executes and delivers to the Depositor and the Master Servicer, an agreement
accepting such delegation and assignment, which contains an assumption by such
Person of the rights, powers, duties, responsibilities, obligations and
liabilities of such Servicer), with like effect as if originally named as a
party to the related Servicing Agreement; and provided further that each Rating
Agency acknowledges that its rating of the Notes in effect immediately prior to
such assignment and delegation shall not be qualified or reduced as a result of
such assignment and delegation. Pending appointment of a successor to the
terminated Servicer, the Master Servicer shall act in such capacity as
hereinabove provided. In connection with such appointment and assumption, the
Master Servicer may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such successor shall
agree; provided, however, that no such compensation shall be in excess of the
Servicing Fee permitted to the related Servicer pursuant to the Servicing
Agreement. The Master Servicer and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Neither the Master Servicer nor any other successor Servicer shall
be deemed to be in default hereunder by reason of any failure to make, or any
delay in making, any distribution hereunder or any portion thereof or any
failure to perform, or any delay in performing, any duties or responsibilities
hereunder, in either case caused by the failure of any Servicer to deliver or
provide, or any delay in delivering or providing, any cash, information,
documents or records to it.

     Any successor to any of the Servicers as Servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as Servicer maintain in force the policy or policies that such Servicer is
required to maintain pursuant to its Servicing Agreement.

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<PAGE>

     SECTION 12.12 Notification to Noteholders.

     (a) Upon any termination of or appointment of a successor to the Servicer,
the Master Servicer or the Indenture Trustee, as applicable, shall give prompt
written notice thereof to Noteholders and to each Rating Agency.

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

     SECTION 12.13 Records; Confidentiality.

     (a) The Master Servicer shall maintain appropriate books of account and
records relating to services performed hereunder, which books of account and
records shall be accessible for inspection and copying by the Depositor (at the
Depositor's expense) upon reasonable prior notice during normal business hours.

     (b) The Master Servicer hereby covenants to hold and treat all Confidential
Information in confidence in accordance with this Section 12.13(b). The Master
Servicer, including its subsidiaries, affiliates, directors, officers,
employees, agents or controlling persons, agrees that it (i) shall comply with
any applicable laws and regulations regarding the privacy and security of
Confidential Information; (ii) shall not use Confidential Information in any
manner inconsistent with any applicable laws and regulations regarding the
privacy and security of such Confidential Information; (iii) shall not disclose
Confidential Information to third parties without the prior written consent of
the Mortgagor other than for the purpose of taking permitted action under this
Agreement or any other agreement; (iv) shall maintain adequate physical,
technical and administrative safeguards to protect Confidential Information from
unauthorized access; and (v) shall promptly notify the Mortgagor if it has
sufficient reason to believe that there has been any breach of the
confidentiality requirements contained in this Section 12.13(b). Disclosure of
any Confidential Information by the Master Servicer at the request of its
outside auditors or governmental regulatory authorities in connection with an
examination of the Master Servicer by any such authority shall not constitute a
breach of its obligations under this Section 12.13(b) and shall not require the
prior consent of the Mortgagor so long as such disclosure is not in violation of
the Right to Financial Privacy Act of 1978, as amended, the Gramm-Leach-Bliley
Act of 1999 or other applicable law.

     SECTION 12.14 Annual Officer's Certificate as to Compliance.

     (a) The Master Servicer shall deliver to the Indenture Trustee and the
Rating Agencies on or before May 31 of each year, commencing on May 31, [o], an
Officer's Certificate signed by a Servicing Officer, certifying that with
respect to the period ending December 31 of the prior year: (i) such Servicing
Officer has reviewed the activities of such Master Servicer during the preceding
calendar year or portion thereof and its performance under this Agreement, (ii)
to the best of such Servicing Officer's knowledge, based on such review, such
Master Servicer has performed and fulfilled its duties, responsibilities and
obligations under this

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<PAGE>

Agreement in all material respects throughout such year, or, if there has been a
default in the fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof, (iii) nothing has come to the attention of such Servicing
Officer to lead such Servicing Officer to believe that any Servicer has failed
to perform any of its duties, responsibilities and obligations under its
Servicing Agreement in all material respects throughout such year, or, if there
has been a material default in the performance or fulfillment of any such
duties, responsibilities or obligations, specifying each such default known to
such Servicing Officer and the nature and status thereof.

     (b) Copies of such statements shall be provided to any Noteholder upon
request, by the Master Servicer or by the Indenture Trustee at the Master
Servicer's expense if the Master Servicer failed to provide such copies (unless
(i) the Master Servicer shall have failed to provide the Indenture Trustee with
such statement or (ii) the Indenture Trustee shall be unaware of the Master
Servicer's failure to provide such statement).

     SECTION 12.15 Annual Independent Accountant's Servicing Report. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Mortgage Loans, then the Master Servicer at its expense shall cause a
nationally recognized firm of independent certificate public accountants to
furnish a statement to the Indenture Trustee, the Rating Agencies and the Seller
on or before May 31 of each year, commencing on May 31, [o] to the effect that,
with respect to the most recently ended fiscal year, such firm has examined
certain records and documents relating to the Master Servicer's performance of
its servicing obligations under this Agreement and that, on the basis of such
examination conducted substantially in compliance with the audit program for
mortgages serviced for Freddie Mac or the Uniform Single Attestation Program for
Mortgage Bankers, such firm is of the opinion that the Master Servicer's
activities have been conducted in compliance with this Agreement, or that such
examination has disclosed no material items of noncompliance except for (i) such
exceptions as such firm believes to be immaterial, (ii) such other exceptions as
are set forth in such statement and (iii) such exceptions that the Uniform
Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages Serviced by Freddie Mac requires it to report. Copies of such
statements shall be provided to any Noteholder upon request by the Master
Servicer, or by the Indenture Trustee at the expense of the Master Servicer if
the Master Servicer shall fail to provide such copies. If such report discloses
exceptions that are material, the Master Servicer shall advise the Indenture
Trustee whether such exceptions have been or are susceptible of cure, and will
take prompt action to do so.

                                  ARTICLE XIII

                                  MISCELLANEOUS

     SECTION 13.1 Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (a) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with, (b) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, and (c)
(if required by the TIA) an Independent Certificate from a firm of certified
public accountants meeting the applicable

                                       90

<PAGE>

requirements of this Section, except that, in the case of any such application
or request as to which the furnishing of such documents is specifically required
by any provision of this Indenture, no additional certificate or opinion need be
furnished. Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

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

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

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

     (d) a statement as to whether or not, in the opinion of each such
signatory, such condition or covenant has been complied with.

     SECTION 13.2 Form of Documents Delivered to Indenture Trustee. In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons
as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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

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

     Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such

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<PAGE>

application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion contained
in any such document as provided in Article VI.

     SECTION 13.3 Acts of Noteholders.

     (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders
may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Noteholders in person or by agents duly appointed
in writing; and except as herein otherwise expressly provided such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 6.01) conclusive in favor of
the Indenture Trustee and the Issuer, if made in the manner provided in this
Section.

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

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

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

     SECTION 13.4 Notices, etc. to Indenture Trustee, the Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Noteholders or other documents provided or permitted by this Indenture
shall be in writing and if such request, demand, authorization, direction,
notice, consent, waiver or act of Noteholders is to be made upon, given or
furnished to or filed with:

     (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or

     (b) the Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Luminent Mortgage Trust 200_-__, in
care of [o], or at any other address previously furnished in writing to the
Indenture Trustee by the Issuer. The Issuer shall promptly transmit any notice
received by it from the Noteholders to the Indenture Trustee.

     (c) Any notice required to be given to the Seller or [o] pursuant to
Section 6.07 shall be sufficient for every purpose hereunder if in writing and
delivered by first-class mail, postage

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<PAGE>

prepaid, overnight courier or facsimile to such parties addressed to the Seller
at [o]; or to [o] at [o].

     Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested by overnight courier or
facsimile. Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder and shall not constitute a Default or Event of Default.

     SECTION 13.5 Notices to Noteholders; Waiver. Where this Indenture provides
for notice to Noteholders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and delivered by
first-class mail, postage prepaid, overnight courier or facsimile to each
Noteholder affected by such event, at his address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to
have been duly given.

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

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

     SECTION 13.6 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this Indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

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

     SECTION 13.7 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 13.8 Successors and Assigns. All covenants and agreements in this
Indenture and the Notes by the Issuer shall bind its successors and assigns,
whether so expressed

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<PAGE>

or not. All agreements of the Indenture Trustee in this Indenture shall bind its
successors, co-Indenture Trustees and agents.

     SECTION 13.9 Severability. In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

     SECTION 13.10 Benefits of Indenture and Consent of Noteholders. Nothing in
this Indenture or in the Notes, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, and the
Noteholders, and any other party secured hereunder, and any other Person with an
ownership interest in any part of the Collateral, any benefit or any legal or
equitable right, remedy or claim under this Indenture. Each Noteholder and Note
Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial
interest in a Note, consents to and agrees to be bound by the terms and
conditions of this Indenture.

     SECTION 13.11 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

     SECTION 13.12 Governing Law. THIS INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, AND TO THE
EXTENT PERMITTED BY LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 13.13 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.

     SECTION 13.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
at its expense (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

     SECTION 13.15 Issuer Obligations. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner

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<PAGE>

Trustee or the Indenture Trustee or of any successor or assign of the Indenture
Trustee or the Owner Trustee in its individual capacity, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee
and the Owner Trustee have no such obligations in their individual capacity) and
except that any such partner, owner or beneficiary shall be fully liable, to the
extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to
such entity. For all purposes of this Indenture, in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of Article
VI, VII and VIII of the Trust Agreement.

     SECTION 13.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by its acceptance of a Note, hereby covenant and
agree that they will not at any time institute against the Seller, the Depositor
or the Issuer or join in any institution against the Seller, the Depositor or
the Issuer, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the other Operative Agreements.

     SECTION 13.17 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer's affairs, finances and accounts with the Issuer's
officers, employees, and Independent certified public accountants, all at such
reasonable times and as often as may be reasonably requested. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all
reasonable applications for confidential treatment are unavailing) and except to
the extent that the Indenture Trustee may reasonably determine that such
disclosure is consistent with its obligations hereunder.

     SECTION 13.18 Execution by the Issuer. It is expressly understood and
agreed by the parties hereto that (a) this Indenture is executed and delivered
by [o], not individually or personally but solely as Owner Trustee of the
Issuer, in the exercise of the powers and authority conferred and vested in its
as Indenture Trustee, (b) each of the representations, undertaking and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by [o] but is made and
intended for the purpose of binding only the Issuer, (c) nothing herein
contained shall be construed as creating any liability on [o], individually or
personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties and by
any person claiming by, through or under the parties hereto and (d) under no
circumstances shall [o] be personally liable for the payment of any indebtedness
or expenses of the Issuer or be liable for the breach or failure of any
obligation, representations, warranty or covenant made or undertaken by the
Issuer under this Indenture or any other document.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       95

<PAGE>

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

                                        LUMINENT MORTGAGE TRUST 200_-_, as
                                        Issuer

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

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

                                        [o],
                                        as Master Servicer

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

                                        [o],
                                        as Indenture Trustee

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

                                  [INDENTURE]

<PAGE>

                                   EXHIBIT A-1

                                  FORM OF NOTE

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

     THIS NOTE DOES NOT EVIDENCE AN OBLIGATION OF OR AN INTEREST IN, AND IS NOT
GUARANTEED BY, THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE
OWNER TRUSTEE, OR ANY AFFILIATE OF ANY OF THEM AND IS NOT INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR PRIVATE INSURER.

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

     EACH PURCHASER OR PROPOSED TRANSFEREE OF A NOTE MUST REPRESENT TO THE
INDENTURE TRUSTEE EITHER (A) THAT IT IS NOT, AND IS NOT PURCHASING THE NOTES
WITH ASSETS OF, AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
OR A GOVERNMENTAL PLAN OR CHURCH PLAN THAT IS SUBJECT TO ANY PROVISIONS OF
APPLICABLE FEDERAL, STATE OR LOCAL LAW ("SIMILAR LAW") SUBSTANTIALLY SIMILAR TO
THE FOREGOING PROVISIONS OF ERISA OR THE CODE, OR (B) THAT ITS ACQUISITION AND
HOLDING OF THE NOTES WILL NOT CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED
TRANSACTION UNDER ERISA OR THE CODE OR SIMILAR LAW AND WILL NOT SUBJECT THE
ISSUER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR MASTER SERVICER TO ANY
OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE INDENTURE.

                                     A-1-1

<PAGE>

                        LUMINENT MORTGAGE TRUST 200_-__,
                              MORTGAGE-BACKED NOTES

Aggregate Original Principal Amount     Original Principal Amount of this Note:
of the
Notes:  _____________________________   ________________________________________

INTEREST RATE: Adjustable               CUSIP: _________________________________

Number ______________________________

     Luminent Mortgage Trust 200_-_, a statutory business trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of ___________________ DOLLARS AND NO/100
($ ) payable on each Distribution Date in an amount equal to the result obtained
by multiplying (A) a fraction the numerator of which is $___________________ and
the denominator of which is the aggregate original principal amount of all Notes
issued on the Closing Date, by (B) the aggregate amount, if any, payable from
the Distribution Account in respect of principal on the Notes pursuant to
Section [__] of the Indenture, dated as of [o], between the Issuer and [o], a
[o] as Indenture Trustee (the "Indenture Trustee"); provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
Distribution Date occurring in [o] (the "Maturity Date") or as otherwise
specified in the Indenture. Capitalized terms used but not defined herein are
defined in the Indenture, which also contains rules as to construction that
shall be applicable herein.

     The Issuer will pay interest on this Note at a per annum rate equal to the
Note Interest Rate, on the principal amount of this Note outstanding on the
immediately preceding Distribution Date (after giving effect to all payments of
principal made on such preceding Distribution Date) on each Distribution Date
until the principal of this Note is paid or made available for payment in full.

     Interest on this Note will accrue for each Distribution Date during the
period beginning on the immediately preceding Distribution Date (or [o], in the
case of the first Accrual Period) and ending on the day immediately preceding
the related Distribution Date (each, an "Accrual Period"). Interest will be
computed on the basis of a 360-day year and the actual number of days elapsed
during the related Accrual Period. Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

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

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

                                     A-1-2

<PAGE>

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

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

                                        LUMINENT MORTGAGE TRUST 200_-__

                                        By: [o],
                                            not in its individual capacity but
                                            solely as Owner Trustee under the
                                            Trust Agreement

                                        By:
                                            ------------------------------------
                                            Authorized Signatory

                                        Dated: [o]

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

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

                                        By:
                                            ------------------------------------
                                            Authorized Signatory

                                        Dated: [o]

                                     A-1-3

<PAGE>

                         LUMINENT MORTGAGE TRUST 200_-_

     This Note is one of a duly authorized issue of Notes of the Issuer, all
issued under the Indenture, to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Notes. To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supersede such contradictory or inconsistent
provision herein. This Note is subject to all terms of the Indenture.

     Principal of this Note will be payable on each Distribution Date in an
amount described on the face hereof. "Distribution Date" means the [o] day of
each month or, if any such date is not a Business Day, the next succeeding
Business Day, commencing in [o].

     Payments of interest on this Note due and payable on each Distribution
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be made by check mailed to the Person whose
name appears as the Registered Holder of this Note (or one or more Predecessor
Notes) on the Note Register as of the close of business on each Record Date, or,
upon written request made to the Indenture Trustee at least five Business Days
prior to the related Record Date by the Holder of a Note having an initial Note
Principal Amount of not less than $[2,500,000], by wire transfer in immediately
available funds to an account specified in the request and at the expense of
such Noteholder, except that, unless Definitive Notes have been issued pursuant
to Section [__] of the Indenture, with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee, except for the final
installment of principal payable with respect to this Note on the Maturity Date,
which shall be payable as provided in the Indenture. Checks shall be mailed to
the Person entitled thereto at the address of such Person as it appears on the
Note Register as of the applicable Record Date without requiring that this Note
be submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Distribution Date shall be binding upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected to
be available, as provided in the Indenture, for payment in full of the then
remaining unpaid principal amount of this Note on a Distribution Date, then the
Person who was the Registered Holder hereof as of the Record Date preceding such
Distribution Date shall be notified by the Indenture Trustee, in the name of and
on behalf of the Issuer. Such notice shall be mailed or transmitted by facsimile
prior to such Distribution Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office.

     As provided in the Indenture and subject to certain limitations set forth
therein, the transfer of this Note may be registered on the Note Register upon
surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder hereof or such Holder's attorney
duly authorized in writing, with such signature guaranteed by an "eligible
guarantor institution" meeting the

                                     A-1-4

<PAGE>

requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Note, but
the transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such registration
of transfer or exchange.

     Each Noteholder and Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

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

     Each Noteholder and Note Owner, by acceptance of a Note or, in the case of
a Note Owner, a beneficial interest in a Note, consents to and agrees to be
bound by the terms and conditions of the Indenture.

     The Issuer has entered into the Indenture and this Note is issued with the
intention that, for federal, state and local income, single business and
franchise tax purposes, the Notes will qualify as indebtedness of the Issuer
secured by the Collateral. Each Noteholder, by acceptance of a Note (and each
Note Owner by acceptance of a beneficial interest in a Note), agrees to treat
the Notes for all federal, state and local income tax purposes as indebtedness
of the Issuer.

     Prior to the due presentment for registration of transfer of this Note, the
Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this

                                     A-1-5

<PAGE>

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a
majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of not less than
66-2/3% of the Outstanding Amount of Notes, to waive compliance by the Issuer
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note. The
Indenture also permits the amendment thereof, in certain limited circumstances,
or the waiver of certain terms and conditions set forth in the Indenture,
without the consent of Holders of the Notes issued thereunder.

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

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

     THIS NOTE AND THE INDENTURE SHALL BE GOVERNED BY AND, CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER AND THEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

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

     Anything herein to the contrary notwithstanding, except as expressly
provided in the Operative Agreements, none of the Issuer in its individual
capacity, the Owner Trustee in its individual capacity, the Indenture Trustee in
its individual capacity, any owner of a beneficial interest in the Issuer, or
any of their respective partners, beneficiaries, agents, officers, directors,
employees or successors or assigns shall be personally liable for, nor shall
recourse be had to any of them for, the payment of principal of or interest on
this Note or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in the Indenture. The Holder of this
Note by its acceptance hereof agrees that, except as expressly provided in the
Operative Agreements, in the case of an Event of Default under the Indenture,
the Holder shall have no claim against any of the foregoing for any deficiency,
loss or claim therefrom; provided, however, that nothing contained herein shall
be taken to prevent recourse to, and enforcement

                                     A-1-6

<PAGE>

against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

                                     A-1-7

<PAGE>

                                   ASSIGNMENT

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

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto:

________________________________________________________________________________
                         (name and address of assignee)

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

Dated: ____________________________*/

Signature Guaranteed:

___________________________________*/

*/ NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                     A-1-8<PAGE>

                                                                     Exhibit 4.3

================================================================================

                         LUMINENT MORTGAGE TRUST 200_-_,
                                as Issuing Entity

                        LARES ASSET SECURITIZATION, INC.,
                                  as Depositor

                    MERCURY MORTGAGE FINANCE STATUTORY TRUST,
                                    as Seller

                    ________________________________________,
                                   as Servicer

                    ________________________________________,
                 as Securities Administrator and Master Servicer

                                       and

                    ________________________________________,
                              as Indenture Trustee

                                   ----------

                        TRANSFER AND SERVICING AGREEMENT

                      Dated as of __________________, 200_

                                   ----------

                         Luminent Mortgage Trust 200_-_
                      Mortgage-Backed Notes, Series 200_-_

================================================================================

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
ARTICLE I DEFINITIONS AND INTERPRETATION.................................     2
   SECTION 1.1     Definitions...........................................     2
   SECTION 1.2     Calculations With Respect to the Mortgage Loans.......    28
   SECTION 1.3     Calculations With Respect to Accrued Interest.........    28
   SECTION 1.4     Rules of Construction.................................    28

ARTICLE II CONVEYANCE OF MORTGAGE LOANS..................................    29
   SECTION 2.1     Conveyance of Mortgage Loans to the Depositor.........    29
   SECTION 2.2     Conveyance of Mortgage Loans to the Issuing Entity....    30
   SECTION 2.3     Assignment of Mortgage Loans..........................    30
   SECTION 2.4     Books and Records.....................................    31
   SECTION 2.5     Review of Documentation...............................    31
   SECTION 2.6     Representations and Warranties with Respect to the
                   Mortgage Loans........................................    32
   SECTION 2.7     Optional Repurchase...................................    33
   SECTION 2.8     Repurchase of Mortgage Loans..........................    33
   SECTION 2.9     Substitution of Mortgage Loans........................    34
   SECTION 2.10    Granting Clause.......................................    35
   SECTION 2.11    Assignment of OTC Hedge Agreements....................    37

ARTICLE III REPRESENTATIONS AND WARRANTIES...............................    38
   SECTION 3.1     Representations and Warranties of the Seller..........    38
   SECTION 3.2     Representations and Warranties of the Depositor.......    40
   SECTION 3.3     Representations and Warranties of the Servicer........    41
   SECTION 3.4     Representations and Warranties of the Master
                   Servicer and Securities Administrator.................    43

ARTICLE IV SERVICING OF THE MORTGAGE LOANS...............................    45
   SECTION 4.1     General...............................................    45
   SECTION 4.2     Use of Subservicers and Subcontractors................    47
   SECTION 4.3     Collection of Mortgage Loan Payments..................    47
   SECTION 4.4     Realization Upon Defaulted Mortgage Loans.............    48
   SECTION 4.5     Establishment of and Deposits to Custodial Account....    48
   SECTION 4.6     Permitted Withdrawals From Custodial Account..........    50
   SECTION 4.7     Establishment of and Deposits to Escrow Account.......    52
   SECTION 4.8     Permitted Withdrawals From Escrow Account.............    52
   SECTION 4.9     Payment of Taxes, Insurance and Other Charges.........    53
   SECTION 4.10    Transfer of Custodial Account or Escrow Account.......    53
   SECTION 4.11    Mortgaged Property Insurance..........................    54
   SECTION 4.12    Blanket Mortgage Hazard Insurance.....................    55
   SECTION 4.13    Fidelity Bond and Errors and Omissions Insurance......    56
   SECTION 4.14    Restoration of Mortgaged Property.....................    56
   SECTION 4.15    Title, Management and Disposition of REO Property.....    57

                                       i

<PAGE>
                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
   SECTION 4.16    Mortgage Loan Reports; Real Estate Owned Reports......    58
   SECTION 4.17    Adjustable Rate Mortgage Loans........................    59
   SECTION 4.18    Prepayment Premiums...................................    59
   SECTION 4.19    Credit Reporting; Gramm Leach Bliley Act..............    59
   SECTION 4.20    Transfers of Mortgaged Property.......................    60
   SECTION 4.21    Satisfaction and Release of Mortgage Files............    61
   SECTION 4.22    Superior Liens........................................    62
   SECTION 4.23    Servicer Compensation.................................    63
   SECTION 4.24    Servicer Remittances..................................    63

ARTICLE V REPORTS........................................................    64
   SECTION 5.1     Assessment of Compliance and Attestation Reports......    64
   SECTION 5.2     Annual Compliance Statement...........................    64
   SECTION 5.3     Back-Up SOX Certification.............................    65
   SECTION 5.4     Commission Reporting..................................    65
   SECTION 5.5     Payment Date Report...................................    68
   SECTION 5.6     Subservicers and Subcontractors.......................    71
   SECTION 5.7     Additional Information................................    72
   SECTION 5.8     Intention of the Parties and Interpretation...........    72
   SECTION 5.9     Indemnification.......................................    72

ARTICLE VI THE SERVICER..................................................    73
   SECTION 6.1     Limitation on Resignation and Assignment by Servicer..    73
   SECTION 6.2     Examination Rights; Additional Information............    73
   SECTION 6.3     Servicer as Bailee....................................    74
   SECTION 6.4     Termination of the Servicer without Cause.............    75
   SECTION 6.5     Servicer Events of Default............................    75
   SECTION 6.6     Waiver of Defaults....................................    77
   SECTION 6.7     Servicer Covenants....................................    77
   SECTION 6.8     Indemnification.......................................    78
   SECTION 6.9     Opinion...............................................    78

ARTICLE VII RESERVED.....................................................    79

ARTICLE VIII THE MASTER SERVICER.........................................    79
   SECTION 8.1     Duties of the Master Servicer.........................    79
   SECTION 8.2     Assignment or Delegation of Duties by the Master
                   Servicer..............................................    80
   SECTION 8.3     Fidelity Bond and Errors and Omission Policy..........    80
   SECTION 8.4     Compensation to the Master Servicer...................    81
   SECTION 8.5     Merger or Consolidation...............................    81
   SECTION 8.6     Examination Rights....................................    81
   SECTION 8.7     Resignation of Master Servicer........................    82
   SECTION 8.8     Master Servicer to Act as Servicer; Appointment of
                   Successor.............................................    82

                                       ii

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
   SECTION 8.9     Master Servicer Events of Default; Appointment of
                   Successor.............................................    84
   SECTION 8.10    Waiver of Defaults....................................    87
   SECTION 8.11    Notification of Master Servicer Default...............    88
   SECTION 8.12    Limitation on Liability of the Master Servicer........    88
   SECTION 8.13    Master Servicer Covenants.............................    88
   SECTION 8.14    Assignment or Delegation of Duties by Master
                   Servicer,.............................................    89
   SECTION 8.15    Indemnification.......................................    89
   SECTION 8.16    Opinion...............................................    90

ARTICLE IX THE SECURITIES ADMINISTRATOR..................................    90
   SECTION 9.1     Duties of the Securities Administrator................    90
   SECTION 9.2     Records...............................................    91
   SECTION 9.3     Compensation..........................................    91
   SECTION 9.4     Independence of the Securities Administrator..........    91
   SECTION 9.5     No Joint Venture......................................    91
   SECTION 9.6     Other Activities of Securities Administrator and the
                   Depositor.............................................    92
   SECTION 9.7     Certain Matters Affecting the Securities
                   Administrator.........................................    92
   SECTION 9.8     Securities Administrator Not Liable for Notes or
                   Mortgage Loans........................................    93
   SECTION 9.9     Securities Administrator May Own Notes................    94
   SECTION 9.10    Eligibility Requirements for the Securities
                   Administrator.........................................    94
   SECTION 9.11    Resignation and Removal of the Securities
                   Administrator.........................................    94
   SECTION 9.12    Successor Securities Administrator....................    95
   SECTION 9.13    Merger or Consolidation of Securities Administrator...    95
   SECTION 9.14    Limitation of Liability...............................    96
   SECTION 9.15    Opinion...............................................    97

ARTICLE X PAYMENTS TO NOTEHOLDERS; INDEMNIFICATION.......................    97
   SECTION 10.1    The Payment Account...................................    97
   SECTION 10.2    Payments from the Payment Account.....................    99
   SECTION 10.3    Indemnification.......................................   102

ARTICLE XI TERMINATION...................................................   103
   SECTION 11.1    Termination...........................................   103
   SECTION 11.2    Optional Termination; Clean-up Call...................   103
   SECTION 11.3    Certain Notices upon Final Payment....................   104

ARTICLE XII AMENDMENT....................................................   105
   SECTION 12.1    Without Consent of the Noteholders....................   105
   SECTION 12.2    With Consent..........................................   106
   SECTION 12.3    Procedure and Notice..................................   106

                                      iii

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
ARTICLE XIII MISCELLANEOUS PROVISIONS....................................   106
   SECTION 13.1    Binding Nature of Agreement...........................   106
   SECTION 13.2    Entire Agreement......................................   106
   SECTION 13.3    Acts of the Noteholders...............................   107
   SECTION 13.4    Recordation of Agreement..............................   107
   SECTION 13.5    Governing Law.........................................   107
   SECTION 13.6    Notices...............................................   107
   SECTION 13.7    Notice to Rating Agencies.............................   109
   SECTION 13.8    Severability of Provisions............................   110
   SECTION 13.9    Indulgences; No Waivers...............................   110
   SECTION 13.10   Headings Not To Affect Interpretation.................   110
   SECTION 13.11   Benefits of Agreement.................................   110
   SECTION 13.12   Counterparts..........................................   110
   SECTION 13.13   Execution by the Issuing Entity; Closing
                   Certifications........................................   111

     ATTACHMENTS

Exhibit A      Information Fields for Mortgage Loan Schedule
Exhibit B      Contents of Each Mortgage File
Exhibit C      Form of Request for Release
Exhibit D      Form of Realized Losses and Gains
Exhibit E      Standard Layout For Monthly Defaulted Loan Report
Exhibit F      Credit Reporting Procedure
Exhibit 1122   Servicing Criteria
Exhibit SOX    Sarbanes Oxley Certificate

Schedule A     Mortgage Loan Schedule
Schedule B     Representations and Warranties in respect of the Mortgage Loans
Schedule C     LIBOR Formula

                                       iv

<PAGE>

     This TRANSFER AND SERVICING AGREEMENT, dated as of __________ _, _____, is
by and among LUMINENT MORTGAGE TRUST 200_-_, a Delaware statutory trust, as the
issuing entity (the "ISSUING ENTITY"), LARES ASSET SECURITIZATION, INC., a
Delaware corporation, as depositor (the "DEPOSITOR"), MERCURY MORTGAGE FINANCE
STATUTORY TRUST, a Maryland business trust, as seller (the "SELLER"), [ - ], a
national banking association, as servicer (the "SERVICER"), [ - ], a national
banking association, as securities administrator (the "SECURITIES
ADMINISTRATOR") and master servicer (the "MASTER SERVICER"), [ - ], and [ - ], a
national banking association, as indenture trustee (the "INDENTURE TRUSTEE").

                              PRELIMINARY STATEMENT

     WHEREAS, the Seller seeks to sell to the Depositor and the Depositor seeks
to purchase from the Seller all of the right, title and interest of the Seller
in certain adjustable-rate first [and second] lien mortgage loans and fixed-rate
first [and second] lien mortgage loans identified in Schedule A hereto on a
servicing-released basis pursuant to this Agreement;

     WHEREAS, the Seller will make representations and warranties as set forth
herein with respect to the Mortgage Loans and will assign to the Depositor
certain representations and warranties that the Seller has received with respect
to such Mortgage Loans;

     WHEREAS, at the Closing Date the Depositor will be the owner of the
Mortgage Loans and the other property being conveyed and assigned by it to the
Issuing Entity hereunder for inclusion in the Trust Fund on the Closing Date;

     WHEREAS, on the Closing Date, the Depositor will transfer to the Issuing
Entity the Mortgage Loans and the other property constituting the Trust Fund;

     WHEREAS, pursuant to the Indenture, the Issuing Entity will issue the Notes
and will secure them with a pledge to the Indenture Trustee of the Mortgage
Loans and the other property constituting the Trust Fund;

     WHEREAS, the Depositor will receive the Notes in consideration for the
Mortgage Loans and other property being conveyed and assigned by it to the
Issuing Entity and will sell the Notes to various purchasers.

     WHEREAS, the Servicer is willing to service the Mortgage Loans for the
benefit of the Issuing Entity and the Indenture Trustee;

     WHEREAS, the Master Servicer is willing to master service the Mortgage
Loans for the benefit of the Issuing Entity and the Indenture Trustee;

     WHEREAS, the Securities Administrator is willing to provide certain
services and reports with respect to the Notes and the Certificate; and

     WHEREAS, the Issuing Entity has entered into certain agreements in
connection with the issuance of the Notes and the Certificate, including the
Operative Agreements.

1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained,
the parties hereto agree as follows:

     The following table sets forth (or describes) the Class designation, Note
Interest Rate, initial Class Principal Amount, maturity date, rating and CUSIP
number for each class of Notes issued pursuant to the Indenture.

<TABLE>
<CAPTION>
   Class     Initial Class Principal  Note Interest  Maturity     Ratings
Designation         Amount(2)            Rate(1)       Date    (S&P/Moody's)  CUSIP Number
-----------  -----------------------  -------------  --------  -------------  ------------
<S>                   <C>             <C>              <C>          <C>           <C>
A-1                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
A-2                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
A-3                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
A-4                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-1                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-2                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-3                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-4                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-5                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-6                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-7                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
M-8                   $               LIBOR + [ - ]%   [ - ]        [ - ]         [ - ]
                      ------
Total:                $[ - ]
                      ======
</TABLE>

(1)  The Note Interest Rate for each class of Offered Notes is a per annum rate
     equal to the lesser of (a) one-month LIBOR plus the Applicable Margin and
     (b) 14.00%. The Note Interest Rate for each class of Offered Notes will be
     subject to an Available Funds Rate. The margin on the Class A Notes will be
     multiplied by 2 and the margin on the Class M Notes will be multiplied by
     1.5 on any Payment Date on or after the Margin Stepup Date.

(2)  The Notes will be issued in minimum denominations of $100,000 and integral
     multiples of $1 in excess thereof.

                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATION

     SECTION 1.1 Definitions.

     Capitalized terms used but not otherwise defined herein shall have the
meanings assigned to them in the Indenture or the Owner Trust Agreement, as
applicable. The following words and phrases, unless the context otherwise
requires, shall have the following meanings:

     ACCEPTED MASTER SERVICING PRACTICES: With respect to any Mortgage Loan,
those customary mortgage loan master servicing practices of prudent mortgage
servicing institutions that master service mortgage loans of the same type and
quality as such Mortgage Loan in the jurisdiction where the related Mortgaged
Property is located, to the extent applicable to the Master Servicer, and in
accordance with the applicable state, local and federal laws, rules and
regulations.

2

<PAGE>

     ACCEPTED SERVICING PRACTICES: The servicing and administration of the
Mortgage Loans for which the Servicer is responsible hereunder:

     (a) in the same manner in which, and with the same care, skill, prudence
and diligence with which, the Servicer generally services and administers
similar mortgage loans with similar mortgagors (i) for other third parties,
giving due consideration to customary and usual standards of practice of prudent
institutional residential mortgage lenders servicing their own loans, or (ii)
held in the Servicer's own portfolio, whichever standard is higher;

     (b) with a view to the maximization of the recovery on such Mortgage Loans
on a net present value basis and the best interests of the Issuing Entity, the
Noteholders or any Person to which the Mortgage Loans may be transferred by the
Issuing Entity;

     (c) without regard to (i) any relationship that the Servicer or any
affiliate thereof may have with the related Mortgagor or any other party to the
transactions, (ii) the right of the Servicer to receive compensation or other
fees for its services rendered pursuant to this Agreement, (iii) the obligations
of the Servicer to make Monthly Advances and Servicing Advances, (iv) the
ownership, servicing or management by the Servicer or any affiliate thereof for
others of any other mortgage loans or mortgaged properties, and (v) any debt the
Servicer or any of its affiliates has extended to any mortgagor; and

     (d) in accordance with the applicable state, local and federal laws, rules
and regulations.

     ACCOUNTANT: A Person engaged in the practice of accounting who (except when
this Agreement provides that an Accountant must be Independent) may be employed
by or affiliated with a party hereto or an Affiliate thereof.

     ADJUSTABLE RATE MORTGAGE LOAN: A Mortgage Loan that contains a provision
pursuant to which the Mortgage Rate is adjusted periodically.

     ADJUSTED CLASS PRINCIPAL AMOUNT: For any Payment Date and a class of
Offered Notes, prior to giving effect to principal payments made with respect to
such class of Offered Notes on such Payment Date, an amount equal to (a) the
Class Principal Amount of such class of Offered Notes minus (b) the Class
Impairment Amount, if any, of such class of Notes.

     ADJUSTED NET MORTGAGE RATE: With respect to each Mortgage Loan, a rate
equal to the per annum Mortgage Rate less the sum of the (i) Servicing Fee Rate,
(ii) the Master Servicing Fee Rate and (iii) the Lender Paid Mortgage Insurance
Rate.

     ADJUSTMENT DATE: As to each Adjustable Rate Mortgage Loan, the date on
which the Mortgage Rate is adjusted in accordance with the terms of the related
Mortgage Note and Mortgage.

     ADVANCE: Any Monthly Advance or Servicing Advance.

     AFFILIATE: With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this

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definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

     AGREEMENT: This Transfer and Servicing Agreement, including all exhibits
and schedules hereto, as it may be amended from time to time.

     APPLICABLE MARGIN: The applicable margin is set forth in the table
appearing on page 2 of this Agreement.

     APPRAISED VALUE: With respect to any Mortgage Loan, the lesser of (a) the
value set forth on the appraisal made in connection with the origination of the
related Mortgage Loan as the value of the related Mortgaged Property, or (b) the
amount paid by the Mortgagor for the Mortgaged Property, provided, however, that
in the case of a refinanced Mortgage Loan or a Mortgage Loan that was not
originated in connection with the borrower's purchase of the Mortgaged Property,
such value shall be based solely on the appraisal made in connection with the
origination of such Mortgage Loan.

     ASSESSMENT OF COMPLIANCE: As defined in Section 5.1.

     ASSIGNMENT OF MORTGAGE: An assignment of the Mortgage, notice of transfer
or equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
assignment of the Mortgage to the Indenture Trustee, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering the Mortgage Loans secured by Mortgaged Properties located
in the same jurisdiction, if permitted by law.

     ATTESTATION REPORT: As defined in Section 5.1.

     AUTHORIZED OFFICER: With respect to the Issuing Entity, any officer who is
appointed pursuant to Section 11.1 of the Owner Trust Agreement or any officer
of the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuing Entity and who is identified on the list of Authorized
Officers delivered by the Owner Trustee to the Indenture Trustee on the Closing
Date (as such list may be modified or supplemented from time to time
thereafter).

     AVAILABLE FUNDS: For each Payment Date, the sum of the Interest Proceeds
and the Principal Proceeds for such Payment Date.

     AVAILABLE FUNDS RATE: For each Payment Date, the per annum rate equal to
the sum of (a) the product of (i) the weighted average of the Adjusted Net
Mortgage Rates on the Mortgage Loans for the related Due Period, weighted on the
basis of their Scheduled Principal Balance as of the beginning of the related
Due Period, (ii) 30 divided by the actual number of days in the related Interest
Accrual Period, and (iii) the aggregate Scheduled Principal Balance of the
Mortgage Loans as of the beginning of the related Due Period divided by the
aggregate Adjusted Class Principal Amount of the Offered Notes immediately prior
to such Payment Date and (b) the product of (i) 360 divided by the actual number
of days in the Interest Accrual Period and (ii)

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any funds received by the trust pursuant to the Cap Agreement for such Payment
Date, divided by the aggregate of the Adjusted Class Principal Amounts of the
Offered Notes immediately prior to such Payment Date.

     BACKUP SOX CERTIFICATION: As defined in Section 5.3.

     BANKRUPTCY CODE: The United States Bankruptcy Code of 1986, as amended, as
codified in 11 U.S.C. Sections 101-1330.

     BASIS RISK SHORTFALL: With respect to each class of Offered Notes on each
Payment Date, the sum of (a) the excess, if any, of (i) the amount that would
have been the Current Interest at the Formula Rate for such Payment Date over
(ii) the Current Interest actually accrued on such class of Offered Notes at an
interest rate equal to the Available Funds Rate, (b) any amount described in
clause (a) above for such class remaining unpaid from prior Payment Dates and
(c) interest on the amount in clause (b) above at the Formula Rate.

     BUSINESS DAY: Any day other than (a) a Saturday or a Sunday or (b) a day on
which banking institutions in the states of [ - ] and [ - ] are authorized or
obligated by law or executive order to be closed.

     CAP AGREEMENT: The agreement entered into by and between the Issuing Entity
and the Cap Provider, dated as of [ - ], providing for certain payments to be
made to the Securities Administrator on behalf of the Issuing Entity.

     CAP PAYMENT: The aggregate of all payments received by the Securities
Administrator from the Cap Provider on a Payment Date pursuant to the Cap
Agreement.

     CAP PROVIDER: _________________.

     CERTIFICATE: The certificate evidencing the ownership interest in the
Issuing Entity.

     CERTIFICATEHOLDER: The Person in whose name the Certificate is registered
pursuant to the Owner Trust Agreement.

     CLASS: All Notes bearing the same class designation.

     CLASS A NOTES: The Luminent Mortgage Trust 200_-_, Mortgage-Backed Notes,
Series 200_-_ Class A-1, Class A-2, Class A-3 and Class A-4 Notes issued under
the Indenture.

     CLASS IMPAIRMENT AMOUNT: For any Payment Date and the Class M Notes, prior
to giving effect to any principal payments made with respect to such Notes on
the current Payment Date, the lesser of (a) the Class Principal Amount of such
class of Notes and (b) the amount, if any, by which the sum of the Class
Principal Amount of such class of Notes and all classes of Offered Notes that
are senior to such class of Notes exceeds the aggregate Scheduled Principal
Balance of the Mortgage Loans as of the first day of the related Due Period.

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     CLASS M NOTES: The Luminent Mortgage Trust 200_-_, Mortgage-Backed Notes,
Series 200_-_ Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7 and Class M-8 Notes issued under the Indenture.

     CLASS M-1 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the aggregate Class Principal Amount
of the Class A Notes (after taking into account the payment of the Senior
Principal Payment Amount on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-1 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans on the last day of the related
Due Period, and (B) the excess, if any, of the aggregate Scheduled Principal
Balance of the Mortgage Loans on the last day of the related Due Period over
0.50% of the Cut-off Date Balance.

     CLASS M-2 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the Adjusted Class Principal Amount of
the Class M-1 Notes (after taking into account the payment of the Senior
Principal Payment Amount and the Class Principal Payment Amounts for such Class
M Notes on such Payment Date) and (B) the Adjusted Class Principal Amount of the
Class M-2 Notes immediately prior to such Payment Date, over (y) the lesser of
(A) the product of (i) _____% and (ii) the aggregate Scheduled Principal Balance
of the Mortgage Loans on the last day of the related Due Period, and (B) the
excess, if any, of the aggregate Scheduled Principal Balance of the Mortgage
Loans on the last day of the related Due Period over 0.50% of the aggregate
Scheduled Principal Balance of the Cut-off Date Balance.

     CLASS M-3 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amounts of the Class A Notes and the aggregate Adjusted Class
Principal Amount of the Class M-1 and Class M-2 Notes (after taking into account
the payment of the Senior Principal Payment Amount and the Class Principal
Payment Amounts for such Class M Notes on such Payment Date) and (B) the
Adjusted Class Principal Amount of the Class M-3 Notes immediately prior to such
Payment Date, over (y) the lesser of (A) the product of (i) _____% and (ii) the
aggregate Scheduled Principal Balance of the Mortgage Loans on the last day of
the related Due Period, and (B) the excess, if any, of the aggregate Scheduled
Principal Balance of the Mortgage Loans on the last day of the related Due
Period over 0.50% of the Cut-off Date Balance.

     CLASS M-4 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the aggregate Adjusted Class Principal
Amounts of the Class M-1 through Class M-3 Notes (after taking into account the
payment of the Senior Principal Payment Amount and the Class Principal Payment
Amounts for such Class M Notes on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-4 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans on the last day of the related
Due Period, and (B) the excess, if any, of the

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aggregate Scheduled Principal Balance of the Mortgage Loans on the last day of
the related Due Period over 0.50% of the Cut-off Date Balance.

     CLASS M-5 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the aggregate Adjusted Class Principal
Amounts of the Class M-1 through Class M-4 Notes (after taking into account the
payment of the Senior Principal Payment Amount and the Class Principal Payment
Amounts for such Class M Notes on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-5 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans on the last day of the related
Due Period, and (B) the excess, if any, of the aggregate Scheduled Principal
Balance of the Mortgage Loans on the last day of the related Due Period over
0.50% of the Cut-off Date Balance.

     CLASS M-6 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the aggregate Adjusted Class Principal
Amounts of the Class M-1 through Class M-5 Notes (after taking into account the
payment of the Senior Principal Payment Amount and the Class Principal Payment
Amounts for such Class M Notes on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-6 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans on the last day of the related
Due Period, and (B) the excess, if any, of the aggregate Scheduled Principal
Balance of the Mortgage Loans on the last day of the related Due Period over
0.50% of the Cut-off Date Balance.

     CLASS M-7 PRINCIPAL PAYMENT AMOUNT: For any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the aggregate Adjusted Class Principal
Amounts of the Class M-1 through Class M-6 Notes (after taking into account the
payment of the Senior Principal Payment Amount and the Class Principal Payment
Amounts for such Class M Notes on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-7 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans on the last day of the related
Due Period, and (B) the excess, if any, of the aggregate Scheduled Principal
Balance of the Mortgage Loans on the last day of the related Due Period over
0.50% of the Cut-off Date Balance.

     CLASS M-8 PRINCIPAL PAYMENT AMOUNT: for any Payment Date on or after the
Stepdown Date and as long as a Trigger Event is not in effect, is an amount
equal to the excess of (x) the sum of (A) the sum of the aggregate Class
Principal Amount of the Class A Notes and the aggregate Adjusted Class Principal
Amounts of the Class M-1 through Class M-7 Notes (after taking into account the
payment of the Senior Principal Payment Amount and the Class Principal Payment
Amounts for such Class M Notes on such Payment Date) and (B) the Adjusted Class
Principal Amount of the Class M-8 Notes immediately prior to such Payment Date,
over (y) the lesser of (A) the product of (i) _____% and (ii) the aggregate
Scheduled Principal Balance of the

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Mortgage Loans on the last day of the related Due Period, and (B) the excess, if
any, of the aggregate Scheduled Principal Balance of the Mortgage Loans on the
last day of the related Due Period over 0.50% of the Cut-off Date Balance.

     CLASS N NOTES: The Luminent Mortgage Trust 200_-_, Mortgage-Backed Notes,
Series 200_-_ Class N Notes issued under the Indenture.

     CLASS N PRINCIPAL PAYMENT AMOUNT: For any Payment Date with respect to the
Class N Notes, the lesser of the (a) amount of Available Funds (including for
this purpose Prepayment Premiums) remaining on any Payment Date after payment of
(i) all amounts due pursuant to Section 10.2(b) hereof (except Section
10.2(b)(iii)(H)) and (I)), and (ii) the Interest Payment Amount on the Class N
Notes for such Payment Date; and (b) the Class Principal Amount of the Class N
Notes.

     CLASS PRINCIPAL AMOUNT: With respect to any class of Notes, the initial
principal amount thereof on the Closing Date, less all amounts previously paid
with respect to such class of Notes as principal on all prior Payment Dates.

     CLEAN-UP CALL: The right of the Servicer to purchase all of the Mortgage
Loans pursuant to Section 11.2(b).

     CLOSING DATE: ____________, 200_.

     CODE: The Internal Revenue Code of 1986, as it may be amended from time to
time or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.

     COMMISSION: The Securities and Exchange Commission.

     COMPENSATING INTEREST PAYMENT: With respect to any Payment Date, an amount
equal to the lesser of (a) the aggregate Prepayment Interest Shortfall with
respect to such Payment Date and (b) the amount of the Servicing Fee actually
paid to, or retained by, the Servicer in respect of such Payment Date.

     COMPLIANCE STATEMENT: As defined in Section 5.2.

     CONDEMNATION PROCEEDS: All awards or settlements in respect of a Mortgaged
Property, whether permanent or temporary, partial or entire, by exercise of the
power of eminent domain or condemnation, to the extent not required to be
released to a Mortgagor in accordance with the terms of the related Mortgage
Loan Documents.

     CORPORATE TRUST OFFICE: With respect to:

     (a) the Securities Administrator, the principal corporate trust office at
which, at any particular time, its corporate trust business in connection with
this Agreement shall be administered, which office, at the date of the execution
of this Agreement, is located at [ - ], or at such other address as the
Securities Administrator may designate from time to time by notice to
Noteholders, the Indenture Trustee, the Depositor, the Seller, the Master
Servicer and the

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<PAGE>

Servicer; provided, however, that with respect to the Securities Administrator,
the Note Registrar and the Certificate Registrar and presentment of Notes or the
Certificate for registration of transfer, exchange or final payment: [ - ].

     (b) the Indenture Trustee, the principal office of the Indenture Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of execution of this Agreement is located at [ - ], or
at such other address as the Indenture Trustee may designate from time to time
by notice to the Noteholders and the Issuing Entity, or the principal corporate
trust office of any successor Indenture Trustee at the address designated by
such successor Indenture Trustee by notice to the Noteholders and the Issuing
Entity.

     CUMULATIVE REALIZED LOSS PERCENTAGE: With respect to any Payment Date, a
fraction, expressed as a percentage, obtained by dividing (a) the aggregate
amount of cumulative Realized Losses incurred on the Mortgage Loans from the
Cut-off Date through the last day of the related Due Period by (b) the Cut-off
Date Balance.

     CURRENT INTEREST: With respect to any Payment Date and each class of
Offered Notes, the sum, calculated in accordance with Section 1.3, of (a) the
interest accrued during the related Interest Accrual Period at the applicable
Note Interest Rate for such class of Offered Notes on its Adjusted Class
Principal Amount immediately prior to such Payment Date, and (b) the sum of (i)
any unpaid Current Interest from previous Payment Dates for such class of
Offered Notes, and (ii) interest thereon at the applicable Note Interest Rate
for such Payment Date.

     CUSTODIAL ACCOUNT: The account or accounts established and maintained
pursuant to Section 4.5 hereof.

     CUSTODIAL AGREEMENT: The agreement, dated as of ___________ 1, 200_, by and
between the Custodian and the Indenture Trustee governing the retention of the
originals of each Mortgage Note, Mortgage, Assignment of Mortgage and other
Mortgage Loan Documents.

     CUSTODIAN: [ - ], as the custodian under the Custodial Agreement, or its
successor in interest or assigns, or any successor to the Custodian under the
Custodial Agreement as provided therein.

     CUT-OFF DATE: ________ _, 200_.

     CUT-OFF DATE BALANCE: The aggregate Scheduled Principal Balance of the
Mortgage Loans as of the close of business on the Cut-off Date.

     DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction of
the Scheduled Monthly Payment that the related Mortgagor is obligated to pay on
any Due Date as a result of any proceeding under bankruptcy law or any similar
proceeding.

     DEFERRED INTEREST: For the Class M Notes and any Payment Date, an amount
equal to the sum of (a) the interest accrued during the related Interest Accrual
Period at the applicable Note Interest Rate on the Class Impairment Amount for
that class, (b) any amount described in clause (a) for prior Payment Dates
remaining unpaid, and (c) interest accrued on the amount described

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in clause (b) above during the Interest Accrual Period related to such Payment
Date at the applicable Note Interest Rate.

     DEFERRED INTEREST BASIS RISK SHORTFALL: For each Payment Date and each
class of Class M Notes is the sum of (a) the excess, if any, of (i) the amount
that would have been the Deferred Interest at the Formula Rate for such Payment
Date over (ii) the Deferred Interest accrued on such class of Class M Notes at
an interest rate equal to the Available Funds Rate, (b) any amount described in
clause (a) above for such class remaining unpaid from prior Payment Dates and
(c) interest on the amount in clause (b) above at the Formula Rate.

     DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then-outstanding indebtedness under the Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Monthly
Payment that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court which is final and non-appealable
in a proceeding under the Bankruptcy Code.

     DELETED MORTGAGE LOAN: A Mortgage Loan that is repurchased from the Trust
Fund or as to which one or more Qualified Substitute Mortgage Loans are
substituted therefor.

     DELINQUENCY RATE: For any Due Period, the fraction, expressed as a
percentage, the numerator of which is the aggregate Scheduled Principal Balance
of all Mortgage Loans that are 60 or more days delinquent (including all
foreclosures and REO Properties) as of the close of business on the last day of
the preceding calendar month, and the denominator of which is the aggregate
Scheduled Principal Balance of the Mortgage Loans as of the close of business on
the last day of such calendar month.

     DEPOSITOR: Lares Asset Securitization, Inc., a Delaware corporation, or its
successors in interest.

     DEPOSITORY: The initial Depository shall be The Depository Trust Company,
the nominee of which is Cede & Co., as the registered Holder of the Book-Entry
Notes. The Depository shall at all times be a "clearing corporation" as defined
in Section 8-102(a)(5) of the UCC of the State of New York and registered as a
"clearing agency" pursuant to Section 17A of the Exchange Act as amended.

     DETERMINATION DATE: With respect to any Payment Date, the Business Day
preceding the Servicer Remittance Date.

     DUE DATE: The day of the month on which the Scheduled Monthly Payment is
due on a Mortgage Loan, exclusive of any days of grace, as specified in the
related Mortgage Note.

     DUE PERIOD: With respect to any Payment Date and a Mortgage Loan, the
period commencing on the second day of the month immediately preceding the month
in which such Payment Date occurs (or the day following the Cut-off Date in
respect of the first Due Period) and ending on the first day of the calendar
month in which such Payment Date occurs.

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     EDGAR: The "Electronic Data Gathering, Analysis, and Retrieval" system of
the Commission, which performs automated collection, validation, indexing,
acceptance, and forwarding of submissions by companies and others who are
required by law to file forms with the Commission.

     ELIGIBLE ACCOUNT: Any of (a) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts are held on
deposit therein, (b) an account or accounts in a depository institution or trust
company in which such accounts are insured by the FDIC (to the limits
established by the FDIC), provided that any such deposits not so insured shall
be maintained in an account at a depository institution or trust company whose
commercial paper or other short term debt obligations (or, in the case of a
depository institution or trust company which is the principal subsidiary of a
holding company, the commercial paper or other short term debt obligations of
such holding company) have been rated by each Rating Agency in its highest
short-term rating category, (c) a trust account or accounts maintained with (i)
the trust department of a federal or state chartered depository institution or
(ii) a trust company, acting in its fiduciary capacity, or (d) any other account
acceptable to each Rating Agency. Eligible Accounts may bear interest, and may
include, if otherwise qualified under this definition, accounts maintained with
the Indenture Trustee, the Securities Administrator or the Master Servicer.

     ELIGIBLE INVESTMENTS: Any dollar-denominated investment that is one or more
of the following (and may include investments for which the Indenture Trustee,
the Securities Administrator and/or their Affiliates, or the Master Servicer
and/or its Affiliates, provides services or receives compensation):

     (a) cash;

     (b) direct registered obligations of, and registered obligations the timely
payment of principal and interest on which is fully and expressly guaranteed by,
the United States or any agency or instrumentality of the United States the
obligations of which are expressly backed by the full faith and credit of the
United States;

     (c) demand and time deposits in, interest bearing trust accounts at,
certificates of deposit of, bankers' acceptances payable within 183 days of
issuance issued by, or Federal funds sold by any depository institution or trust
company incorporated under the laws of the United States or any state thereof
and subject to supervision and examination by Federal and/or state banking
authorities so long as the commercial paper and/or the debt obligations of such
depository institution or trust company (or, in the case of the principal
depository institution in a holding company system, the commercial paper or debt
obligations of such holding company) at the time of such investment or
contractual commitment providing for such investment have a credit rating of not
less than "AA+" by S&P and "Aa2" by Moody's (and if rated "Aa2", such rating is
not on watch for downgrade by Moody's) in the case of long-term debt
obligations, or "A-1+" by S&P and "P-1" by Moody's (and if rated "P-1", such
rating is not on watch for downgrade by Moody's) and in the case of commercial
paper and short-term debt obligations;

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<PAGE>

provided that (i) in each case, the issuer thereof must have at the time of such
investment or contractual commitment providing for such investment a long-term
credit rating of not less than "Aa2" by Moody's (and if rated "Aa2", such rating
is not on watch for downgrade by Moody's) and (ii) in the case of commercial
paper and short-term debt obligations with a maturity of longer than 91 days,
the issuer thereof must also have at the time of such investment or contractual
commitment providing for such investment a long-term credit rating of not less
than "AA+" by S & P;

     (d) unleveraged repurchase obligations (if treated as debt for United
States federal income tax purposes by the issuer with respect to (i) any
security described in clause (b) above or (ii) any other registered security
issued or guaranteed by an agency or instrumentality of the United States (in
each case without regard to the final maturity of such security), in either case
entered into with a United States federal or state depository institution or
trust company (acting as principal) described in clause (c) above or entered
into with a corporation (acting as principal) whose long-term rating at the time
of such investment or contractual commitment providing for such investment is
not less than "AA+" by S&P and "Aa2" by Moody's (and if rated "Aa2", such rating
is not on watch for downgrade by Moody's) or whose short-term credit rating at
the time of such investment or contractual commitment providing for such
investment is "A-1+" by S&P and "P-1" by Moody's (and if rated "P-1", such
rating is not on watch for downgrade by Moody's) at the time of such investment;
provided that (A) in each case, the issuer thereof must have at the time of such
investment or contractual commitment providing for such investment a long-term
credit rating of not less than "Aa2" by Moody's (and if rated "Aa2", such rating
is not on watch for downgrade by Moody's) and (B) if such security has a
maturity of longer than 91 days, the issuer thereof must also have at the time
of such investment or contractual commitment providing for such investment a
long-term credit rating of not less than "AA+" by S&P and "Aa2" by Moody's (and
if rated "Aa2", such rating is not on watch for downgrade by Moody's);

     (e) registered debt securities bearing interest or sold at a discount
issued by any corporation incorporated under the laws of the United States or
any state thereof that have a credit rating at the time of such investment or
contractual commitment providing for such investment of not less than "AA" by
S&P and "Aa2" by Moody's (and if rated "Aa2", such rating is not on watch for
downgrade by Moody's);

     (f) commercial paper or other short-term obligations with a maturity of not
more than 183 days from the date of issuance and having at the time of such
investment or contractual commitment providing for such investment a credit
rating of "A-1+" by S & P; provided, that (i) in each case, the issuer thereof
must have at the time of such investment or contractual commitment providing for
such investment a long-term credit rating of not less than "Aa2" by Moody's (and
if rated "Aa2", such rating is not on watch for downgrade by Moody's) and (ii)
if such security has a maturity of longer than 91 days, the issuer thereof must
also have at the time of such investment or contractual commitment providing for
such investment a long-term credit rating of not less than "AA" by S & P;

     (g) Reinvestment Agreements issued by any bank (if treated as a deposit by
such bank), or a registered Reinvestment Agreement issued by any insurance
company or other corporation or entity organized under the laws of the United
States or any state thereof (if treated as debt for tax purposes by the issuer),
in each case, that has a credit rating of not less than "A-

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1+" by S&P and "P-1" by Moody's (and if rated "P-1", such rating is not on watch
for downgrade by Moody's); provided, that (i) in each case, the issuer thereof
must have at the time of such investment or contractual commitment providing for
such investment a long-term credit rating of not less than "Aa2" by Moody's (and
if rated "Aa2", such rating is not on watch for downgrade by Moody's) and (ii)
if such security has a maturity of longer than 91 days, the issuer thereof must
also have at the time of such investment or contractual commitment providing for
such investment a long-term credit rating of not less than "AA" by S & P; and

     (h) interests in any money market fund or similar investment vehicle having
at the time of investment therein the highest credit rating assigned by each of
the Rating Agencies (which may include money market funds or common trust funds,
including without limitation, any fund for which the Securities Administrator or
its Affiliate serves as an investment adviser, administrator, shareholder
servicing agent and/or from which such party collects fees).

     In each case (other than clause (a)), such Eligible Investment shall have a
final maturity (giving effect to any applicable grace period) no later than the
Business Day immediately preceding the Payment Date (or, if the Securities
Administrator or an Affiliate is the obligor on such Eligible Investment, the
Payment Date) next following the Due Period in which the date of investment
occurs; provided, that, Eligible Investments may not include (i) any
interest-only security, any security purchased at a price in excess of 100% of
the par value or any security that provides for payment of both principal and
interest with a yield to maturity in excess of 120% of the yield to maturity at
par, (ii) any floating rate security whose interest rate is inversely or
otherwise not proportionately related to an interest rate index or is calculated
as other than the sum of an interest rate index plus a spread, (iii) securities
subject to an offer, (iv) any security with a rating from S&P which includes the
subscript "p," "pi," "q," "r" or "t", or (v) any investment, the income from
which is or will be subject to deduction or withholding for or on account of any
withholding or similar tax.

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

     ERRORS AND OMISSIONS INSURANCE POLICY: An errors and omissions insurance
policy to be maintained by the Servicer pursuant to Section 4.13 or by the
Master Servicer pursuant to Section 8.3.

     ESCROW ACCOUNT: The separate account or accounts created and maintained
pursuant to Section 4.7 hereof.

     ESCROW PAYMENTS: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, fire and hazard insurance premiums, condominium charges, and
any other payments required to be escrowed by the Mortgagor with the mortgagee
pursuant to the Mortgage or any other related document.

     EXCESS CASHFLOW: For each Payment Date, the amount equal to Available Funds
remaining after payment of all amounts pursuant to Section 10.2(b)(i) and (ii).

     EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

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     FANNIE MAE: Fannie Mae, a federally chartered and privately owned
corporation organized and existing under the Federal National Mortgage
Association Charter Act, or any successor thereto.

     FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.

     FICO: The credit score used for underwriting a Mortgage Loan.

     FIDELITY BOND: A fidelity bond to be maintained by the Servicer pursuant to
Section 4.13 and by the Master Servicer pursuant to Section 8.3.

     FINAL CERTIFICATION: A certification as to the completeness of each
Mortgage File provided by the Custodian within 90 days following the Closing
Date in accordance with Section 2.5(c).

     FIXED RATE MORTGAGE LOAN: Any Mortgage Loan for which the Mortgage Rate is
constant and is not determined by reference to an Index.

     FORMULA RATE: For each class of Offered Notes, a per annum rate equal to
the lesser of (i) One-Month LIBOR plus the Applicable Margin for such class of
Offered Notes and (ii) [ - ]%.

     FREDDIE MAC: The Federal Home Loan Mortgage Corporation (FHLMC), or any
successor thereto.

     GROSS MARGIN: With respect to each Adjustable Rate Mortgage Loan, the fixed
percentage amount set forth in the related Mortgage Note which is added to the
Index in order to determine the related Mortgage Rate, as set forth in the
Mortgage Loan Schedules.

     HUD: The United States Department of Housing and Urban Development, or any
successor thereto.

     INDENTURE: The Indenture dated as of __________ _, _____, among the Issuing
Entity, the Securities Administrator and the Indenture Trustee, as such may be
amended or supplemented from time to time.

     INDENTURE TRUSTEE: [ - ], a national banking association, or any successor
in interest.

     INDENTURE TRUSTEE FEE: The annual fee of $[ - ] to be paid by the Master
Servicer from the Master Servicing Fee.

     INDEPENDENT: When used with respect to any Accountants, a Person who is
"independent" within the meaning of Rule 2-01(b) of the Commission's Regulation
S-X. When used with respect to any other Person, a Person who (a) is in fact
independent of another specified Person and any Affiliate of such other Person,
(b) does not have any material direct financial interest in such other Person or
any Affiliate of such other Person, and (c) is not connected with such other
Person or any Affiliate of such other Person as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions.

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     INDEX: The index specified in the related Mortgage Note for calculation of
the Mortgage Rate thereof.

     INITIAL CERTIFICATION: A certification as to the completeness of each
Mortgage File provided by the Custodian on the Closing Date in accordance with
Section 2.5(b).

     INSURANCE PROCEEDS: With respect to each Mortgage Loan, proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged Property,
if applicable, including the proceeds of any hazard or flood insurance policy.

     INTEREST ACCRUAL PERIOD: With respect to any Payment Date, the period
beginning with the previous Payment Date (or, in the case of the first Payment
Date, the Closing Date) and ending on the day prior to such Payment Date.

     INTEREST PAYMENT AMOUNT: With respect to any Payment Date, (i) interest
accrued on the Class N Notes for the related Interest Accrual Period at the Note
Interest Rate for the Class N Notes and (ii) any such previously accrued and
unpaid interest at the Note Interest Rate for the Class N Notes (and any
interest accrued thereon), in each case at the Note Interest Rate for the Class
N Notes.

     INTEREST PROCEEDS: With respect to any Payment Date, the sum of (a) the sum
of all scheduled and unscheduled payments of interest on the Mortgage Loans, all
Liquidation Proceeds in respect of interest from Liquidated Mortgage Loans, all
Insurance Proceeds on the Mortgage Loans in respect of interest and the interest
portion of the Repurchase Price of each Mortgage Loan that is repurchased upon a
breach of representations regarding such Mortgage Loan, each as is received or
advanced in the related Due Period or the related Prepayment Period, as
applicable and (b) any Cap Payments, less the Servicing Fee with respect to such
Payment Date and excluding, for the avoidance of doubt, any Prepayment Premiums.

     ISSUING ENTITY: Luminent Mortgage Trust 200_-_, a Delaware statutory trust,
and its permitted successors and assigns.

     LIBOR: The London interbank offered rate for one-month United States dollar
deposits established pursuant to Schedule C hereto.

     LIBOR BUSINESS DAY: As defined in Schedule C.

     LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, a defaulted
Mortgage Loan (including any REO Property) which was liquidated in the
Prepayment Period relating to such Payment Date and as to which the Servicer has
certified to the Master Servicer and the Securities Administrator that it has
received all amounts it expects to receive in connection with the liquidation of
such Mortgage Loan, including the final disposition of any REO Property.

     LIQUIDATION EXPENSES: With respect to a Mortgage Loan in liquidation,
unreimbursed expenses paid or incurred by or for the account of the Servicer,
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.

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     LIQUIDATION PROCEEDS: Cash received in connection with the liquidation of a
defaulted Mortgage Loan, whether through the sale or assignment of such Mortgage
Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the related
Mortgaged Property if the Mortgaged Property is acquired in satisfaction of the
Mortgage Loan.

     LOAN-TO-VALUE RATIO OR LTV: With respect to any Mortgage Loan secured by a
first lien mortgage, the ratio of the original loan amount of the Mortgage Loan
at its origination (unless otherwise indicated) to the Appraised Value of the
Mortgaged Property. With respect to any Mortgage Loan secured by a second lien
mortgage, a fraction, expressed as a percentage, the numerator of which is the
sum of (1) the original loan amount of the related Mortgage Loan and (2) any
outstanding principal balance of mortgage loans the liens on which are equal in
priority or senior to the lien on such related Mortgage Loan (each such
calculated at the date of origination of such related Mortgage Loan), and the
denominator of which is the Appraised Value.

     LPMI POLICY: A policy of primary mortgage guaranty insurance with respect
to a Mortgage Loan, the premiums of which are paid by someone other than the
Mortgagor from its own funds, without reimbursement.

     LPMI PROCEEDS: Proceeds of any Lender Paid Mortgage Insurance Policy.

     MARGIN STEPUP DATE: The first Payment Date on which the aggregate Scheduled
Principal Balance of the Mortgage Loans as of the beginning of the related Due
Period is less than [ - ]% of the Cut-off Date Balance.

     MASTER SERVICER: [ - ] and its successors and assigns in its capacity as
master servicer.

     MASTER SERVICER EVENT OF DEFAULT: As defined in Section 8.9(a).

     MASTER SERVICING FEE: As to each Mortgage Loan and any Payment Date, an
amount equal to (i) one twelfth of the Master Servicing Fee Rate multiplied by
(ii) the Scheduled Principal Balance of such Mortgage Loan as of the first day
of the related Due Period.

     MASTER SERVICING FEE RATE: ________% per annum.

     MATERIAL DEFECT: With respect to any Mortgage Loan, as defined in Section
2.5(d).

     MATURITY DATE: With respect to each class of Notes, the Payment Date in
________________.

     MERS: MERSCORP, Inc., its successor and assigns.

     MERS DESIGNATED MORTGAGE LOAN: A Mortgage Loan for which (a) the Seller has
designated or will designate MERS as, and have taken or will take such action as
is necessary to cause MERS to be, the mortgagee of record, as nominee for the
Seller and its successors and assigns, in accordance with MERS Procedures Manual
and (b) the Seller has designated or will designate the Indenture Trustee as the
"Investor" on the MERS(R) System.

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     MERS PROCEDURES MANUAL: The MERS Procedures Manual, as it may be amended,
supplemented or otherwise modified from time to time.

     MERS(R) SYSTEM: MERS mortgage electronic registry system, as more
particularly described in the MERS Procedures Manual.

     MONTHLY ADVANCE: With respect to any Mortgage Loan on any Determination
Date, an amount equal to the portion of each Scheduled Monthly Payment due in
the Due Period to which such Determination Date relates that is delinquent at
the close of business on such Determination Date, excluding any balloon payment
or any shortfalls attributable to the Relief Act.

     MOODY'S: Moody's Investors Service, Inc., or any successor thereto.

     MORTGAGE: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a lien on an estate in fee simple or leasehold
estate in real property securing the Mortgage Note.

     MORTGAGE FILE: The mortgage documents listed on Exhibit B pertaining to a
particular Mortgage Loan.

     MORTGAGE LOAN: An individual Mortgage Loan which is the subject of this
Agreement, each Mortgage Loan sold and subject to this Agreement being
identified on the Mortgage Loan Schedules hereto, which Mortgage Loan includes
without limitation the Mortgage File, the Scheduled Monthly Payments, Principal
Prepayments, Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds,
REO Disposition Proceeds and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.

     MORTGAGE LOAN DOCUMENTS: The documents referred to in Section(a) of Exhibit
B.

     MORTGAGE LOAN REMITTANCE RATE: With respect to each Mortgage Loan, the
related Mortgage Rate less the Servicing Fee Rate and the Lender Paid Mortgage
Insurance Rate.

     MORTGAGE LOAN SCHEDULE: The list of Mortgage Loans transferred to the
Indenture Trustee, or the Custodian on its behalf, as part of the Trust Fund and
from time to time subject to this Agreement attached hereto as Schedule A that
sets forth in the information required on Exhibit A for each Mortgage Loan.

     MORTGAGE NOTE: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan, including any
riders or addenda thereto.

     MORTGAGE RATE: With respect to each Mortgage Loan, the annual rate at which
interest accrues on such Mortgage Loan from time to time in accordance with the
provisions of the related Mortgage Note.

     MORTGAGED PROPERTY: The real property securing repayment of the debt
evidenced by a Mortgage Note.

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     MORTGAGOR: The obligor on a Mortgage Note.

     NON-RECOVERABLE ADVANCE: Any Servicing Advance (in respect of the Servicer
only) or Monthly Advance previously made or proposed to be made in respect of a
Mortgage Loan by the Servicer or Master Servicer (in its capacity as successor
servicer) which, in the reasonable discretion of the Servicer or Master Servicer
in accordance with Accepted Servicing Practices will not or, in the case of a
proposed Servicing Advance or Monthly Advance, would not, ultimately be
recoverable by the Servicer or Master Servicer from the related Mortgagor,
related Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO
Disposition Proceeds or otherwise. The determination by the Servicer that all or
a portion of a Servicing Advance or Monthly Advance would be a Non-recoverable
Advance shall be evidenced by an Officer's Certificate delivered to the Master
Servicer and the Securities Administrator setting forth such determination and a
reasonable explanation thereof.

     NOTE OR NOTES: The Class A, Class M and Class N Notes issued pursuant to
the Indenture.

     NOTE INTEREST RATE: For each class of Offered Notes, the lesser of (a) the
applicable Formula Rate and (b) the Available Funds Rate. For the Class N Notes,
_____% per annum.

     NOTEHOLDER: The Person in whose name a Note is registered on the books of
the Note Registrar solely for the purposes of taking any action or giving any
consent pursuant to this Agreement, any Note registered in the name of the
Depositor, the Master Servicer, the Securities Administrator or the Indenture
Trustee or any Affiliate thereof shall be deemed not to be outstanding in
determining whether the requisite percentage necessary to effect any such
consent has been obtained. The Securities Administrator, the Note Registrar and
the Indenture Trustee may conclusively rely upon and shall be protected in
relying on certifications by the Depositor in determining whether any Note is
registered to an Affiliate of the Depositor. In the absence of such
certification, the Securities Administrator, the Note Registrar and the
Indenture Trustee may conclusively assume that a Note is not held by an
affiliate of the Depositor.

     OFFERED NOTES: The Class A and Class M Notes.

     OFFICER'S CERTIFICATE: A certificate (a) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Managing Director, a
Vice President, an Assistant Vice President, the Treasurer, the Secretary, or
one of the Assistant Treasurers or Assistant Secretaries of the Depositor or the
Servicer, as the case may be, or (b), if provided for in this Agreement, signed
by a Servicing Officer and delivered to the Depositor, the Master Servicer, the
Securities Administrator, and the Indenture Trustee, as the case may be, as
required by this Agreement.

     OPERATIVE AGREEMENTS: The Owner Trust Agreement, the Custodial Agreement,
the Certificate of Trust of the Issuing Entity, the Indenture, the Cap
Agreement, this Agreement and each other document related to the transaction to
which any party hereto is a party.

     OPINION OF COUNSEL: A written opinion of counsel, which shall not be at the
expense of the Master Servicer, the Securities Administrator or the Indenture
Trustee, who may be counsel for the Seller, the Servicer, the Custodian, the
Depositor, the Master Servicer, the Securities Administrator or the Indenture
Trustee, including in-house counsel, reasonably acceptable to the

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Securities Administrator, the Indenture Trustee and/or the Master Servicer, as
applicable; provided, however, that with respect to the interpretation or
application of the federal income tax or ERISA matters, such counsel must be
Independent of the Securities Administrator, the Indenture Trustee and the
Master Servicer and must be nationally recognized as expert in the tax or ERISA
aspects, as applicable, of asset securitization.

     OPTIONAL TERMINATION DATE: The date on which the Certificateholder, the
Servicer or the Master Servicer exercises its right to purchase the Mortgage
Loans or redeem the Notes pursuant to Section 11.2.

     OVERCOLLATERALIZATION AMOUNT: As of any date of determination, an amount
equal to the excess of (i) the aggregate Scheduled Principal Balance of the
Mortgage Loans as of the last day of the related Due Period over (ii) the
Adjusted Class Principal Amount of the Offered Notes after taking into account
all payments of principal on such Payment Date. On the Closing Date, the
Overcollateralization Amount will be equal to [ - ]% of the Cut-off Date
Balance.

     OVERCOLLATERALIZATION DEFICIENCY AMOUNT: For any Payment Date, the excess,
if any, of (a) the Target Overcollateralization Amount for such Payment Date
over (b) the Overcollateralization Amount for such Payment Date, after giving
effect to the payment of the Principal Payment Amount on such Payment Date.

     OVERCOLLATERALIZATION RELEASE AMOUNT: For each Payment Date, the lesser of
(a) the sum of the Principal Proceeds for both loan groups for such Payment Date
and (b) the excess of (i) the Overcollateralization Amount for such Payment Date
(assuming, for the purposes of this calculation, that 100% of the Principal
Proceeds is applied as payment of principal on the Offered Notes on that Payment
Date) over (ii) the Target Overcollateralization Amount for such Payment Date.

     OWNER TRUST AGREEMENT: The Amended and Restated Owner Trust Agreement,
dated as of ______________, among the Depositor, the Securities Administrator
and the Owner Trustee, which amends and restates the Trust Agreement, dated as
of __________, among the Depositor and the Owner Trustee, as the same may be
amended or supplemented from time to time.

     OWNER TRUSTEE: [ - ], or any successor in interest, not in its individual
capacity, but solely as owner trustee under the Owner Trust Agreement.

     OWNER TRUSTEE FEE: The annual fee of $[ - ] to be paid from funds in the
Payment Account on the Payment Date in __________ of each year.

     PAYMENT ACCOUNT: The separate account established and maintained pursuant
to Section7.6.

     PAYMENT DATE: The __ day of each month or, if not a business day, the next
succeeding Business Day, commencing in __________ 200_.

     PAYMENT DATE REPORT: As defined in Section 5.5.

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     PERCENTAGE INTEREST: For any Note, the percentage interest set forth on the
face thereof or equal to the percentage obtained by dividing the initial
principal amount of such Note by the initial Class Principal Amount of all Notes
of its Class.

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

     PREPAYMENT INTEREST EXCESS: With respect to any Payment Date and each
Mortgage Loan that was the subject of a Principal Prepayment in full during the
portion of the related Prepayment Period beginning on the first day of the
calendar month in which such Payment Date occurs through the end of the
Prepayment Period relating to such Payment Date, an amount equal to interest (to
the extent received) at the applicable Mortgage Loan Remittance Rate on the
amount of such Principal Prepayment for the number of days commencing on the
first day of the calendar month in which such Payment Date occurs and ending on
the date on which such Principal Prepayment is so applied.

     PREPAYMENT INTEREST SHORTFALL: With respect to any Payment Date, for each
Mortgage Loan that was the subject of a Principal Prepayment in full or in part
during the portion of the related Prepayment Period occurring between the first
day of the related Prepayment Period and the last day of the calendar month
preceding the month in which such Payment Date occurs and that the Servicer
applied to reduce the outstanding principal balance of such Mortgage Loan on a
date preceding the Due Date in the succeeding Prepayment Period, an amount equal
to interest at the applicable Mortgage Loan Remittance Rate on the amount of
such Principal Prepayment for the number of days commencing on the date on which
the prepayment is applied and ending on the last day of the calendar month
preceding such Payment Date.

     PREPAYMENT PERIOD: With respect to any Payment Date [and (i) any Principal
Prepayment in full, the period that commences on and includes the ___ day of the
month immediately preceding the month in which such Payment Date occurs (or from
the Cut-off Date, in the case of the first Prepayment Period) and ends on and
includes the ___ day of the month in which such Payment Date occurs, and (ii)
any partial Principal Prepayment], the calendar month preceding the month in
which the Payment Date occurs.

     PREPAYMENT PREMIUM: With respect to a Mortgage Loan, the prepayment charge
or penalty interest required to be paid by the Mortgagor in connection with a
prepayment of the related Mortgage Loan, as provided in the related Mortgage
Note or Mortgage, and as specified on the related Mortgage Loan Schedule.

     PRIME RATE: The prime rate of the United States money center commercial
banks as published in The Wall Street Journal.

     PRINCIPAL PAYMENT AMOUNT: With respect to any Payment Date, an amount equal
to the lesser of (a) the Adjusted Class Principal Amount of the Offered Notes
and (b) the excess of (i) the Principal Proceeds over (ii) the
Overcollateralization Release Amount for such Payment Date.

     PRINCIPAL PREPAYMENT: Any payment or other recovery of principal on a
Mortgage Loan which is received in advance of its scheduled Due Date.

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     PRINCIPAL PROCEEDS: For any Payment Date, the sum of all scheduled and
unscheduled payments of principal on the Mortgage Loans, all Liquidation
Proceeds in respect of principal from Liquidated Mortgage Loans, all Insurance
Proceeds on the Mortgage Loans in respect of principal, and the principal
portion of the Repurchase Price of each Mortgage Loan that is repurchased upon a
breach of representations regarding such Mortgage Loan in such Mortgage Loan
Group, each as is received or advanced in the related Due Period or the related
Prepayment Period, as applicable, excluding, for the avoidance of doubt, any
Prepayment Premiums. Principal proceeds shall also include the amount of
subsequent recoveries as provided in Section 10.2(g).

     PROCEEDING: Any suit in equity, action at law or other judicial or
administrative proceeding.

     PROSPECTUS: Each of the (i) preliminary prospectus supplement, dated
[_____], together with the accompanying prospectus dated [__________], and (ii)
the prospectus supplement, dated [ - ], together with the accompanying
prospectus, dated [ - ], in each case relating to the Offered Notes.

     QUALIFIED SUBSTITUTE MORTGAGE LOAN: A mortgage loan eligible to be
substituted by a Seller or Originator for a Deleted Mortgage Loan which must
meet the following criteria:

          (i) have a Scheduled Principal Balance, after deduction of all
     Scheduled Monthly Payments due in the month of substitution (or in the case
     of a substitution of more than one mortgage loan for a Deleted Mortgage
     Loan, an aggregate Scheduled Principal Balance), not in excess of the
     Scheduled Principal Balance of the Deleted Mortgage Loan;

          (ii) have a Mortgage Loan Remittance Rate not less than, and not more
     than 2% greater than, the Mortgage Loan Remittance Rate of the Deleted
     Mortgage Loan;

          (iii) have a remaining term to maturity not greater than and not more
     than one year less than that of the Deleted Mortgage Loan;

          (iv) comply with each representation and warranty set forth in Section
     2.9;

          (v) be of the same type as the Deleted Mortgage Loan;

          (vi) have a Gross Margin not less than that of the Deleted Mortgage
     Loan, if the Deleted Mortgage Loan was an Adjustable Rate Mortgage Loan;

          (vii) have the same lien priority as the lien priority of the replaced
     Mortgage Loan;

          (viii) have the same Index as the Deleted Mortgage Loan;

          (ix) have a FICO score not less than that of the Deleted Mortgage
     Loan;

          (x) have an LTV not greater than that of the Deleted Mortgage Loan;

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          (xi) have a Prepayment Premium with a term and an amount at least
     equal to the Prepayment Premium of the Deleted Mortgage Loan; and

          (xii) have a credit grade not lower in quality than that of the
     Deleted Mortgage Loan.

     RATING AGENCY: Each of [Moody's], [S&P], [Fitch] and [Dominion Bond Rating
Service].

     REALIZED LOSS: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Scheduled Principal Balance of the
Mortgaged Loan) as of the date of such liquidation, equal to (a) the Scheduled
Principal Balance of the Liquidated Mortgage Loan as of the date of such
liquidation, plus (b) interest at the Adjusted Net Mortgage Rate from the Due
Date as to which interest was last paid or advanced (and not reimbursed) to the
Noteholders up to the Due Date in the month in which Liquidation Proceeds are
required to be paid on the Scheduled Principal Balance of such Liquidated
Mortgage Loan from time to time, minus (c) the Liquidation Proceeds, if any,
received during the month in which such liquidation occurred, to the extent
applied as recoveries of interest at the Adjusted Net Mortgage Rate and to
principal of the Liquidated Mortgage Loan. With respect to each Mortgage Loan
which has become the subject of a Deficient Valuation, if the principal amount
due under the related Mortgage Note has been reduced, the difference between the
principal balance of the Mortgage Loan outstanding immediately prior to such
Deficient Valuation and the principal balance of the Mortgage Loan as reduced by
the Deficient Valuation. With respect to each Mortgage Loan which has become the
subject of a Debt Service Reduction and any Payment Date, the amount, if any, by
which the principal portion of the related Scheduled Monthly Payment has been
reduced.

     REDEMPTION PRICE: In the case of a redemption of the Notes pursuant to
Section 11.2, an amount equal to the sum of (a) the outstanding Class Principal
Amount of the Notes together with accrued interest thereon (at the applicable
Note Interest Rate) and any Deferred Interest, Basis Risk Shortfall and Deferred
Interest Basis Risk Shortfall to the extent unpaid, (b) any unreimbursed
Advances, (c) any unpaid administrative expenses of the Issuing Entity, and (d)
all other amounts to be paid or reimbursed to the Master Servicer, the Servicer,
the Custodian, the Securities Administrator, the Indenture Trustee and the Owner
Trustee.

     REGULATION AB: Subpart 229.1100 Asset Backed Securities (Regulation AB), 17
C.F.R. Sections 229.110-229.1123, as such may be amended from time to time, and
subject to such clarification and interpretation as have been provided by the
Commission in the adopting release (Asset-Backed Securities, Securities Act
Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from
time to time.

     REINVESTMENT AGREEMENT: A guaranteed reinvestment agreement from a bank,
insurance company or other corporation or entity organized under the laws of the
United States or any state thereof under which no payments are subject to any
withholding tax or, if subject to withholding tax imposed by any jurisdiction,
the obligor thereunder is required to make "gross up" payments that cover the
full amount of any such withholding tax on an after-tax basis; provided that
such agreement provides that it is terminable by the purchaser, without premium
or

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penalty, in the event that the rating assigned to such agreement by any Rating
Agency is at any time lower than the rating required pursuant to the terms of
this Indenture to be assigned to such agreement in order to permit the purchase
thereof.

     REIT: A real estate investment trust within the meaning of Section 856 of
the Code.

     RELIEF ACT: The Servicemembers Civil Relief Act, as such may be amended
from time to time, or any similar state laws.

     REO DISPOSITION PROCEEDS: The net amount received with respect to an REO
Property pursuant to Section 4.15(e).

     REO PROPERTY: A Mortgaged Property acquired by the Servicer through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

     REPURCHASE PRICE: With respect to any Mortgage Loan required to be
purchased pursuant to this Agreement (other than pursuant to Section 11.2), an
amount equal to the sum of (a) 100% of the Scheduled Principal Balance of the
Mortgage Loan on the date of such purchase, (b) accrued interest thereon at the
applicable Mortgage Rate from the date through which interest was last paid by
the Mortgagor to the Due Date in the month in which the Repurchase Price is to
be paid to the Issuing Entity, (c) any unreimbursed Advances and (d) any costs
and damages incurred in connection with the violation by such Mortgage Loan of
any predatory or anti-abusive lending law.

     REQUEST FOR RELEASE: The Request for Release submitted by the Servicer to
the Indenture Trustee or the Custodian on behalf of the Indenture Trustee, in
the form of Exhibit C.

     RESPA: The Real Estate Settlement Procedures Act.

     RESPONSIBLE OFFICER: With respect to:

     (a) the Servicer, any officer of the Servicer with direct responsibility
for the administration of this Agreement and any other officer to whom, with
respect to a particular matter, such matter is referred due to such officer's
knowledge of an familiarity with the particular subject.

     (b) the Indenture Trustee, any managing director, any director, vice
president, any assistant vice president, any associate, any assistant secretary,
any trust officer or any other officer of the Indenture Trustee customarily
performing functions similar to those performed by any of the above designated
officers who at such time shall be officers to whom, with respect to a
particular matter, the matter is referred because of the officer's knowledge of
and familiarity with the particular subject and who has direct responsibility
for the administration of this Agreement.

     (c) the Securities Administrator, any vice president, any managing
director, any director, any associate, any assistant vice president, any
assistant secretary, any trust officer or any other officer or employee of the
Securities Administrator customarily performing functions similar to those
performed by any of the above designated officers and also to whom, with

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respect to a particular matter, such matter is referred because of such
officer's or employee's knowledge of and familiarity with the particular subject
and in each case who shall have direct responsibility for the administration of
this Agreement.

     (d) the Master Servicer, any vice president, any managing director, any
director, any associate, any assistant vice president, any assistant secretary,
any trust officer or any other officer or employee of the Master Servicer
customarily performing functions similar to those performed by any of the above
designated officers and also to whom, with respect to a particular matter, such
matter is referred because of such officer's or employee's knowledge of and
familiarity with the particular subject and in each case who shall have direct
responsibility for the administration of this Agreement.

     RESPONSIBLE PARTY: __________, _________, ________, which are those Persons
required to provide reports pursuant to Item 1122 of Regulation AB. Exhibit 1122
identifies the Servicing Criteria as to which the Responsible Parties have
responsibility with respect to this transaction.

     RETAINED NOTES: Any Notes, or portions of certain Notes, that are
beneficially owned by the initial Certificateholder or its parent REIT, one of
the Qualified REIT Subsidiaries (as defined in the Code) of such parent REIT or
an entity that is disregarded for United States federal income tax purposes that
is wholly owned by the parent REIT or one of its Qualified REIT Subsidiaries.

     ROLLING THREE MONTH DELINQUENCY RATE: With respect to any Payment Date, the
average of the Delinquency Rates for each of the three (or a shorter period, in
the case of the first and second Payment Dates) immediately preceding months.

     S&P: Standard & Poor's Rating Services, a division of The McGraw-Hill
Companies, Inc., or any successor thereto.

     SARBANES-OXLEY ACT: The Sarbanes-Oxley Act of 2002, as amended from time to
time.

     SCHEDULED MONTHLY PAYMENT: Each scheduled payment of principal and interest
(or of interest only, if applicable) to be paid by the Mortgagor on a Mortgage
Loan, as reduced (except where otherwise specified herein) by the amount of any
related Debt Service Reduction or pursuant to the Relief Act (excluding all
amounts of principal and interest that were due on or before the Cut-off Date
whenever received) and, in the case of an REO Property, an amount equivalent to
the Scheduled Monthly Payment that would have been due on the related Mortgage
Loan if such Mortgage Loan had remained in existence.

     SCHEDULED PRINCIPAL BALANCE: With respect to any Mortgage Loan as of any
date of determination, the principal balance of such Mortgage Loan as of the
Cut-off Date, reduced by all scheduled payments of principal due after the
Cut-off Date and all amounts allocable to unscheduled Principal Prepayments on
such Mortgage Loan.

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

     SECURITIES ADMINISTRATOR: [ - ], or any successor or assigns under this
Agreement.

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     SELLER: Mercury Mortgage Finance Statutory Trust, or any successor.

     SENIOR ENHANCEMENT PERCENTAGE: For a Payment Date, a percentage equal to
(a) the sum of the aggregate Adjusted Class Principal Amount of the Class M
Notes and the Overcollateralization Amount, in each case before taking into
account any payments of principal on the Offered Notes on that Payment Date
divided by (b) the aggregate Scheduled Principal Balance of the Mortgage Loans
as of the last day of the related Due Period.

     SENIOR PRINCIPAL PAYMENT AMOUNT: With respect to (a) any Payment Date prior
to the Stepdown Date or during the continuation of a Trigger Event, the lesser
of (i) 100% of the Principal Proceeds and (ii) the aggregate Class Principal
Amount of the Class A Notes immediately prior to that Payment Date, and (b) any
other Payment Date, the lesser of (i) the Principal Payment Amount and (ii) the
excess, if any, of (x) the aggregate Class Principal Amount of the Class A Notes
immediately prior to that Payment Date over (y) the lesser of (A) ______% of the
aggregate Scheduled Principal Balance of the Mortgage Loans as of the last day
of the related Due Period and (B) the aggregate Scheduled Principal Balance of
the Mortgage Loans as of the last day of the related Due Period minus the
product of (i) 0.50% and (ii) the Cut-off Date Balance.

     SERVICER: [ - ] and its successor in interest or assigns or any successor
to the Servicer under this Agreement.

     SERVICER EVENT OF DEFAULT: Any one of the conditions or circumstances
enumerated in Section 6.5.

     SERVICER REMITTANCE AMOUNT: As defined in Section 4.24.

     SERVICER REMITTANCE DATE: The day in each calendar month on which the
Servicer is required to remit payments to the Payment Account, which is the
[__________] Business Day following the [ - ] day of such calendar month,
commencing in [ - ].

     SERVICER REPORT: The reports provided by the Servicer to the Master
Servicer and the Securities Administrator pursuant to Section 4.16.

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     SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses (including reasonable attorneys' fees and disbursements)
other than Monthly Advances incurred prior to, on or after the Cut-off Date in
the performance by the Servicer of its servicing obligations, including, but not
limited to, the cost of (a) the inspection, maintenance, preservation,
restoration and protection of any Mortgaged Property, (b) any enforcement or
judicial proceedings, including foreclosures, in respect of a particular
Mortgage Loan, including any expenses incurred in relation to any such
proceedings that result from the Mortgage Loan being registered on the MERS(R)
System, (c) the management (including reasonable fees in connection therewith)
and liquidation of any REO Property, (d) compliance with the obligations under
Section 4.9 and (e) obtaining any legal documentation required to be included in
the Mortgage File and/or correcting any outstanding title issues (i.e., any lien
or encumbrance on the Mortgaged Property that prevents the effective enforcement
of the intended lien position) reasonably necessary for the Servicer to perform
its obligations under this Agreement. Servicing Advances also include any
reasonable "out-of-pocket" costs and expenses (including legal fees) incurred by
the Servicer in connection with executing and recording instruments of
satisfaction, deeds of reconveyance or an Assignment of Mortgage to the extent
not recovered from the Mortgagor or otherwise payable under this Agreement.

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

     SERVICING FEE: With respect to each Mortgage Loan, the amount of the annual
fee payable on account of servicing, which shall, for a period of one full
month, be equal to one-twelfth of the product of (a) the Servicing Fee Rate and
(b) the Scheduled Principal Balance of such Mortgage Loan as of the first day of
the related Due Period. The Servicing Fee is payable solely from the interest
portion (including recoveries with respect to interest from Liquidation
Proceeds, Condemnation Proceeds and Insurance Proceeds) of such Scheduled
Monthly Payment collected by the Servicer, or as otherwise provided in Section
4.6.

     SERVICING FEE RATE: ____% per annum.

     SERVICING FILE: With respect to each Mortgage Loan, the file retained by
the Servicer consisting of originals of all documents in the Mortgage File which
are not delivered to the Custodian and copies of the Mortgage Loan Documents,
the originals of which are delivered to the Custodian on behalf of the Indenture
Trustee.

     SERVICING OFFICER: Any officer of a Servicer involved in or responsible for
the administration and servicing of the Mortgage Loans whose name appears on a
list of servicing officers furnished by the Servicer on the Closing Date to the
Master Servicer upon request, as such list may from time to time be amended.

     STEPDOWN DATE: The earlier to occur of (a) the Payment Date on which the
aggregate Class Principal Amount of the Class A Notes is reduced to zero, and
(b) the later to occur of (i) the Payment Date in ____________ 20__ and (ii) the
first Payment Date on which the Senior Enhancement Percentage is greater than or
equal to _____%.

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     SUBCONTRACTOR: Any vendor, subcontractor or other Person that is not
responsible for the overall servicing (as servicing is commonly understood by
participants in the mortgage-backed securities market) of the Mortgage Loans but
performs one or more discrete functions identified in Item 122(d) of Regulation
AB with respect to the Mortgage Loans under the direction or authority of the
Servicer or a Subservicer.

     SUBSERVICER: Any Person that services the Mortgage Loans on behalf of the
Servicer or any Subcontractor and is responsible for the performance (whether
directly or through Subservicers or Subcontractors) of a substantial portion of
the material servicing functions required to be performed by the Servicer under
this Agreement that are identified in Item 1122(d) of Regulation AB.

     SUBSTITUTING PARTY: As defined in Section 2.9(a).

     SUBSTITUTION ADJUSTMENT AMOUNT: As defined in Section 2.9.

     TARGET OVERCOLLATERALIZATION AMOUNT: For any Payment Date prior to the
Stepdown Date, will be equal to ____% of the Cut-off Date Balance. For any
Payment Date on or after the Stepdown Date, the lesser of (a) the amount
described in the preceding sentence, and (b) ____% of the aggregate Scheduled
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period, subject to a floor equal to [ - ]% of the Cut-off Date Balance;
provided, however, if a Trigger Event has occurred and is continuing on the
related Payment Date, the Target Overcollateralization Amount will be equal to
the Target Overcollateralization Amount on the preceding Payment Date.

     TERMINATION DATE: As defined in Section 11.1.

     TERMINATION NOTICE DATE: As defined in Section 6.5.

     TRIGGER EVENT: Is in effect on any Payment Date on or after the Stepdown
Date, if either (a) the Rolling Three Month Delinquency Rate as of the last day
of the related Due Period equals or exceeds _____% of the Senior Enhancement
Percentage on such Payment Date or (b) the Cumulative Realized Loss Percentage
on such Payment Date exceeds the percentage specified in the table below for
such Payment Date:

PAYMENT DATE OCCURRING IN   PERCENTAGE
-------------------------   ----------------------------------------------------
[ - ]                       [ - ]% for the first month, plus an additional
                            1/12th of [ - ]% for each month thereafter

[ - ]                       [ - ]% for the first month, plus an additional
                            1/12th of [ - ]% for each month thereafter

[ - ]                       [ - ]% for the first month, plus an additional
                            1/12th of [ - ]% for each month thereafter

[ - ]                       [ - ]% for the first month plus an additional
                            1/12th of [ - ]% for each month thereafter.

[ - ]                       [ - ]%

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     TRUST FUND: The assets pledged by the Issuing Entity to the Indenture
Trustee to secure the Notes.

     UNDERWRITERS: Those firms designated as such in the Prospectus.

     UCC: The Uniform Commercial Code as enacted in the relevant jurisdiction.

     UNDERWRITING GUIDELINES: Those underwriting guidelines employed by the
Seller with respect to Mortgage Loans.

     VOTING INTERESTS: The portion of the voting rights of all the Notes that is
allocated to any Note for purposes of the voting provisions of this Agreement.
The voting rights are allocated among the holders of each Class of Notes in
accordance with their respective Class Principal Amounts (or, with respect to
the Class M Notes, their Adjusted Class Principal Amounts). The portion of such
voting rights allocated to any individual Note will be its Percentage Interest.

     SECTION 1.2 Calculations With Respect to the Mortgage Loans.

     Calculations required to be made pursuant to this Agreement with respect to
any Mortgage Loan in the Trust Fund shall be made based upon current information
as to the terms of the Mortgage Loans and reports of payments received from the
Mortgagor on such Mortgage Loans provided by the Servicer to the Master Servicer
and the Securities Administrator. Payments to be made by the Securities
Administrator shall be based on information provided by the Servicer. Neither
the Indenture Trustee, the Master Servicer nor the Securities Administrator
shall be required to recompute, verify or recalculate the information supplied
to it by the Servicer.

     SECTION 1.3 Calculations With Respect to Accrued Interest.

     Accrued interest on any Offered Note shall be calculated based upon a
360-day year and the actual number of days in each Interest Accrual Period.
Accrued interest on any Class N Note shall be calculated on the basis of a
360-day year consisting of twelve 30-day months.

     SECTION 1.4 Rules of Construction.

     Unless the context otherwise clearly requires:

     (a) the definitions of terms herein shall apply equally to the singular and
plural forms of the terms defined;

     (b) whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms;

     (c) the words "include," "includes" and "including" shall be deemed to be
followed by the phrase "without limitation;"

     (d) the word "will" shall be construed to have the same meaning and effect
as the word "shall;"

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     (e) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein);

     (f) any reference herein to any Person, or to any Person in a specified
capacity, shall be construed to include such Person's permitted successors and
assigns or such Person's permitted successors in such capacity, as the case may
be; and

     (g) all references in this instrument to designated "Sections," "clauses"
and other subdivisions are to the designated Sections, clauses and other
subdivisions of this instrument as originally executed, and the words "herein,"
"hereof," "hereunder" and other words of similar import refer to this Agreement
as a whole and not to any particular Section, clause or other subdivision.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS

     SECTION 2.1 Conveyance of Mortgage Loans to the Depositor.

     (a) On the Closing Date, in exchange for (i) the net proceeds of the
Offered Notes, (ii) the Class N Notes and (iii) the Certificate, the Seller does
hereby sell, transfer, assign, or set over, deposit with and otherwise convey
without recourse (except as provided herein), and the Depositor does hereby
purchase, all right, title and interest of the Seller in and to the Mortgage
Loans listed on the Mortgage Loan Schedule, having a Cut-off Date Balance as set
forth in such Mortgage Loan Schedule.

     (b) The Depositor shall be entitled to (i) all Scheduled Monthly Payments
of principal due after the Cut-off Date, (ii) all other recoveries of principal
collected after the Cut-off Date (less scheduled payments of principal due on or
before the Cut-off Date and collected after the Cut-off Date), (iii) all
Scheduled Monthly Payments of interest due after the Cut-off Date (minus that
portion of any such payment which is allocable to the period prior to the
Cut-off Date) and (iv) all Prepayment Premiums. Scheduled Monthly Payments
prepaid with respect to a Due Date after the Cut-off Date shall not be applied
to the principal balance as of the Cut-off Date, but the Seller shall remit any
such prepaid amounts to the Servicer for deposit into the Custodial Account for
the benefit of the Depositor.

     In the case of Mortgage Loans that have been prepaid in full after the
Cut-off Date and prior to the Closing Date, the Seller shall remit to the
Servicer for deposit in the Custodial Account the portion of any amount so
prepaid that is required to be deposited in the Custodial Account pursuant to
Section 4.5.

     (c) Upon the sale of the Mortgage Loans, the ownership of each Mortgage
Note, the related Mortgage and the related Mortgage File shall vest immediately
in the Depositor, and the ownership of all records and documents with respect to
the related Mortgage Loan prepared by or which come into the possession of the
Seller shall vest immediately in the Depositor and shall

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<PAGE>

be retained and maintained by the Seller, in trust, at the will of the Depositor
and only in such custodial capacity.

     (d) The Seller shall deliver the Mortgage Loan Schedule, the Mortgage Loan
File and Mortgage Loan Documents to be purchased on the related Closing Date to
the Custodian at least three Business Days prior to such Closing Date.

     SECTION 2.2 Conveyance of Mortgage Loans to the Issuing Entity.

     (a) On the Closing Date, in exchange for the Notes and the Certificate, the
Depositor does hereby sell, transfer, assign, set over, deposit with and
otherwise convey to the Issuing Entity, without recourse (except as otherwise
provided herein), all right, title and interest of the Depositor in and to the
Mortgage Loans purchased by the Depositor from the Seller.

     (b) The Issuing Entity shall be entitled to all payments on the Mortgage
Loans as provided in Section 2.1(b).

     (c) Upon the issuance of the Notes and the Certificate, the ownership of
each Mortgage Note, the related Mortgage and the related Mortgage File shall
vest immediately in the Issuing Entity, and the ownership of all records and
documents with respect to the related Mortgage Loan prepared by or which come
into the possession of the Depositor shall vest immediately in the Issuing
Entity and shall be retained and maintained by the Depositor, in trust, at the
will of the Issuing Entity and only in such custodial capacity.

     SECTION 2.3 Assignment of Mortgage Loans.

     (a) The Seller shall cause an Assignment of Mortgage with respect to each
Mortgage Loan (other than a MERS Designated Mortgage Loan) to be completed in
the form and substance acceptable for recording in the relevant jurisdiction,
such assignment being either (A) in blank, without recourse, or (B) or endorsed
to "[ - ], as Indenture Trustee of the Luminent Mortgage Trust 200_-_,
Mortgage-Backed Notes, Series 200_-_, without recourse," on or prior to the
Closing Date; provided, however, that such Assignments of Mortgage need not be
recorded unless and until the Indenture Trustee is advised by a Rating Agency
that such Assignment of Mortgage is required to be recorded to protect the
Indenture Trustee's security interest in the related Mortgage Loans. Any such
recordation of an Assignment of Mortgage shall be effected at the expense of the
Seller.

     (b) In connection with the assignment of any MERS Designated Mortgage Loan,
the Seller agrees that, on or prior to the Closing Date, it will cause the
Seller to cause the MERS(R) System to indicate that such Mortgage Loans have
been assigned by the Seller to the Depositor, which has assigned such Mortgage
Loans to the Issuing Entity, which has collaterally assigned such Mortgage Loans
to the Indenture Trustee, in accordance with this Agreement for the benefit of
the Noteholders and the Certificateholder by including (or deleting, in the case
of Mortgage Loans which are repurchased in accordance with this Agreement) in
such computer files the code in the field that identifies the specific Indenture
Trustee and the code in the field "Pool Field" that identifies the series of the
Notes for which such Mortgage Loans serve as collateral. The Seller further
agrees that it will not, and will not permit the Servicer to, and each of the
Servicer and the Master Servicer agrees that it will not, alter the codes
referenced in this paragraph with

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respect to any MERS Designated Mortgage Loan during the term of this Agreement
unless and until such MERS Designated Mortgage Loan is repurchased in accordance
with the terms of this Agreement.

     SECTION 2.4 Books and Records.

     (a) The contents of each Servicing File are and shall be held in trust by
the Servicer for the benefit of the Issuing Entity as the owner thereof, subject
to the lien of the Indenture. The Servicer shall take all necessary steps to
ensure that the documents required to be included in the Servicing File are
complete and shall maintain the Servicing File as required by this Agreement,
Accepted Servicing Practices and applicable law. Possession of each Servicing
File by the Servicer is at the will of the Indenture Trustee for the sole
purpose of servicing the related Mortgage Loan and such retention and possession
by the Seller is in a custodial capacity only. The Servicer shall release its
custody of the contents of any Servicing File only in accordance with written
instructions from the Indenture Trustee, unless such release is required as
incidental to any Seller's servicing of the Mortgage Loans or is in connection
with the transfer of servicing or a repurchase of any Mortgage Loan.

     (b) All original documents relating to the Mortgage Loans that are not
delivered to the Custodian, to the extent delivered to the Servicer, are and
shall be held by the Servicer in trust for the benefit of the Indenture Trustee.
In the event that any such original document is required pursuant to the terms
of this Section to be a part of a Mortgage File, such document shall be
delivered promptly to the Custodian on behalf of the Indenture Trustee.

     (c) Upon and after a sale of Mortgage Loans to the Issuing Entity, all
proceeds arising out of the Mortgage Loans, as provided in Section 2.1(b), shall
be received and held by the Servicer in trust for the benefit of the Issuing
Entity as owner of the Mortgage Loans, subject to the lien of the Indenture.

     (d) Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Fund, the Indenture Trustee or the Noteholders of any
unsatisfied duty, claim or other liability on any Mortgage Loan or to any
Mortgagor.

     SECTION 2.5 Review of Documentation.

     (a) The Indenture Trustee declares that, subject to the review provided for
in this Section, it has received and shall hold the Trust Fund, as Indenture
Trustee, in trust, for the benefit and use of the Noteholders and for the
purposes and subject to the terms and conditions set forth in this Agreement,
and, concurrently with such receipt, the Issuing Entity has issued the Notes and
the Certificate and delivered the Notes and the Certificate to the Depositor or
its designee, in exchange for the Trust Fund.

     (b) On the Closing Date, the Custodian will execute and deliver to the
Depositor, the Servicer, and the Indenture Trustee an Initial Certification with
respect to the Mortgage Loans delivered on or before the Closing Date. Based on
its review and examination, and only as to the documents identified in each such
Initial Certification, the Custodian will acknowledge that (i) such documents
appear regular on their face and relate to such Mortgage Loan and (ii) with
respect to each MERS Designated Mortgage Loan, the MERS number on the Mortgage
Loan

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Schedule matches the MERS number on the Mortgage for the related Mortgage File.
The Custodian shall not be under any duty or obligation to inspect, review or
examine such documents, instruments, certificates or other papers to determine
that the same are genuine, enforceable, recordable or appropriate for the
represented purpose or that they have actually been recorded in the real estate
records or that they are other than what they purport to be on their face.

     (c) Within 90 days after the Closing Date, the Custodian will execute and
deliver to the Depositor, the Servicer, and the Indenture Trustee a Final
Certification with any applicable exceptions noted therein. The Custodian shall
(i) determine whether such documents are executed and endorsed, but shall be
under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that the same are valid,
binding, legally effective, properly endorsed, genuine, enforceable or
appropriate for the represented purpose or that they have actually been recorded
or are in recordable form or that they are other than what they purport to be on
their face and (ii) with respect to each MERS Designated Mortgage Loan, certify
that the MERS number on the Mortgage Loan Schedules matches the MERS number on
the Mortgage for the related Mortgage File. The Custodian shall not have any
responsibility for verifying the genuineness or the legal effectiveness of or
authority for any signatures of or on behalf of any party or endorser.

     (d) If in the course of the review described in paragraph (c) above, the
Custodian discovers any document or documents constituting a part of a Mortgage
File is missing, does not appear regular on its face (i.e., is mutilated,
damaged, defaced, torn or otherwise physically altered) or appears to be
unrelated to the Mortgage Loans identified in the Mortgage Loan Schedules, as
applicable (each, a "MATERIAL DEFECT"), the Custodian shall identify the
Mortgage Loan to which such Material Defect relates in the Final Certification.
Within 90 days of its receipt of such notice, the Seller shall be required to
cure such Material Defect (and, in such event, the Seller shall provide the
Indenture Trustee and the Custodian with an Officer's Certificate confirming
that such cure has been effected). If the Seller does not effect a cure within
such 90-day period, it shall be required to repurchase the related Mortgage Loan
for the Repurchase Price; provided, however, that the Seller may, in lieu of
repurchasing a Mortgage Loan, substitute for such Mortgage Loan a Qualified
Substitute Mortgage Loan in accordance with the provisions of Section 2.9. The
failure of the Indenture Trustee to deliver, or cause the Custodian to deliver,
the Final Certification within 90 days after the Closing Date shall not affect
or relieve the Seller of its obligation to repurchase any Mortgage Loan pursuant
to this Agreement.

     SECTION 2.6 Representations and Warranties with Respect to the Mortgage
Loans.

     (a) The Seller hereby makes those representations and warranties as to the
Mortgage Loans set forth in Schedule B hereto as of the Closing Date and, with
respect to any Qualified Substitute Mortgage Loan, as of the date of
substitution of such Qualified Substitute Mortgage Loan.

     (b) Upon discovery or receipt of written notice by the Depositor, the
Servicer, the Master Servicer, the Securities Administrator, the Indenture
Trustee or the Owner Trustee that

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the Seller has breached any representation or warranty in respect of a Mortgage
Loan that materially and adversely affects the value of such Mortgage Loan or
the interest therein of the Noteholders or the Certificateholder, the Depositor,
the Master Servicer, the Securities Administrator, the Indenture Trustee, or the
Owner Trustee, as the case may be, promptly shall notify the Indenture Trustee
in writing of such breach, and the Indenture Trustee shall enforce the Seller's
obligations under this Agreement and cause the Seller to repurchase or
substitute the related Mortgage Loan from the Trust Fund on or prior to the
Determination Date following the expiration of the 90-day period following the
earlier of the date on which the breach was discovered or notice of the breach
was received by the Indenture Trustee; provided, however, that, if such breach
cannot reasonably be cured within such 90-day period, if the Seller shall have
commenced to cure such breach within such 90-day period, the Seller shall be
permitted to proceed thereafter diligently and expeditiously to cure the breach
within an additional 90-day period. Without limiting the foregoing, the Seller's
breach of a representation or warranty contained in clauses [(__)] through
[(__)], inclusive, of Schedule B, shall be deemed to materially and adversely
affect the interest of the Noteholders, and shall require a repurchase or
substitution as provided herein.

     (c) It is understood and agreed that the obligations of the Seller to cure,
repurchase or substitute for any Mortgage Loan as to which a document is
missing, a material defect in a constituent document exists or as to which such
a breach has occurred and is continuing shall constitute the sole remedy
available to the Indenture Trustee on behalf of the Noteholders and the
Certificateholder against such party respecting such omission, defect or breach.
If the Seller is not a member of MERS at the time it repurchases a Mortgage Loan
and the Mortgage is registered on the MERS(R) System, the Indenture Trustee
shall cause the Seller, at the Seller's own expense and without any right of
reimbursement, to cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Seller and
to cause such Mortgage to be removed from registration on the MERS(R) System in
accordance with the MERS rules and regulations.

     SECTION 2.7 Optional Repurchase.

     The Seller may, at its option, repurchase a Mortgage Loan (i) that is 90 or
more days delinquent or (ii) the related Mortgaged Property of which has
suffered material damage (evidence of such determination to be delivered in
writing to the Indenture Trustee and the Master Servicer in the form and
substance satisfactory to the Servicer, the Indenture Trustee and the Master
Servicer prior to purchase); provided that the Seller may not acquire more than
[ - ]% of the Mortgage Loans by aggregate Cut-off Date Balance pursuant to this
Section 2.7.

     SECTION 2.8 Repurchase of Mortgage Loans.

     (a) The purchase price for any Mortgage Loan repurchased by the Seller
pursuant to this Agreement shall be the Repurchase Price for such Mortgage Loan.
The Repurchase Price for any Mortgage Loan repurchased pursuant to this
Agreement shall be deposited into the Payment Account.

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     (b) The Custodian, upon receipt of a Request for Release from the Seller
(which Request for Release shall include a certification by the Seller of the
repurchase and the remittance of the Repurchase Price to the Securities
Administrator for deposit into the Payment Account), shall release to the Seller
the related Mortgage File. The Indenture Trustee or its authorized designee
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, representation or warranty, as the Seller may furnish to
the Indenture Trustee or the Custodian and as shall be necessary to vest in such
party any Mortgage Loan released pursuant hereto. None of the Indenture Trustee,
the Securities Administrator, the Master Servicer or the Custodian shall have
any responsibility for determining the sufficiency of such assignment for its
intended purpose, and upon such release, the Indenture Trustee and the Custodian
shall have no further responsibility with regard to such Mortgage File.

     SECTION 2.9 Substitution of Mortgage Loans.

     (a) In lieu of repurchasing any such Mortgage Loan as provided above, the
Seller (as such, the "SUBSTITUTING PARTY") may cause such Mortgage Loan to be
removed from the Trust Fund (in which case it shall become a "DELETED MORTGAGE
LOAN") and substitute one or more Qualified Substitute Mortgage Loans in the
manner and subject to the limitations of this Section 2.9. As to any Deleted
Mortgage Loan for which the Substituting Party substitutes a Qualified
Substitute Mortgage Loan or Loans, such substitution shall be effected by
delivering to the Custodian, for such Qualified Substitute Mortgage Loan or
Loans, the Mortgage Note, the Mortgage, the assignment to the Substituting
Party, and such other documents and agreements, with all necessary endorsements
thereon, together with an Officers' Certificate stating that each such Qualified
Substitute Mortgage Loan satisfies the definition thereof and specifying the
Substitution Adjustment Amount (as described below), if any, in connection with
such substitution. The Custodian shall acknowledge receipt for such Qualified
Substitute Mortgage Loan and, within 45 days thereafter, shall review such
Mortgage Files and deliver to the Substituting Party, the Indenture Trustee and
the Depositor, with respect to such Qualified Substitute Mortgage Loans, a
certification substantially in the form of a revised Initial Certification, with
any exceptions noted thereon. Within 90 days of the date of substitution, the
Custodian shall deliver to the Substituting Party, the Indenture Trustee and the
Depositor a certification substantially in the form of a revised Final
Certification, with respect to such Qualified Substitute Mortgage Loans, with
any exceptions noted thereon. Scheduled Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution shall not be
included as part of the Trust Fund and shall be retained by the Substituting
Party. For the month of substitution, payments to the Noteholders shall reflect
the collections and recoveries in respect of such Deleted Mortgage Loan in the
related Due Period and the Substituting Party shall thereafter be entitled to
retain all amounts subsequently received in respect of such Deleted Mortgage
Loan. Upon such substitution, such Qualified Substitute Mortgage Loan shall
constitute part of the Trust Fund and shall be subject in all respects to the
terms of this Agreement as of the date of substitution.

     (b) The Depositor shall amend the related Mortgage Loan Schedule to reflect
the removal of such Deleted Mortgage Loan and the substitution of the Qualified
Substitute Mortgage Loan or Loans and the Seller shall deliver the amended
Mortgage Loan Schedule to the Indenture Trustee, the Master Servicer, the
Securities Administrator, the Custodian and the Servicer. Upon such
substitution, the Qualified Substitute Mortgage Loan shall be subject to the

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terms of this Agreement in all respects, and the Seller shall be deemed to have
made with respect to such Qualified Substitute Mortgage Loan, as of the date of
substitution, the representations and warranties made pursuant to Section 2.6
with respect to such Mortgage Loan.

     (c) For any month in which any Substituting Party substitutes one or more
Qualified Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the
Seller shall deposit the excess (each, a "SUBSTITUTION ADJUSTMENT AMOUNT"), if
any, by which the aggregate Scheduled Principal Balances of all such Deleted
Mortgage Loans exceeds the aggregate Scheduled Principal Balances of the
Qualified Substitute Mortgage Loans replacing such Deleted Mortgage Loans,
together with (i) amounts specified in clause (c) of the definition of
Repurchase Price and (ii) one month's interest on such excess amount at the
applicable Net Mortgage Rate. On the date of such substitution, the Seller shall
deliver or cause to be delivered to the Securities Administrator for deposit in
the Payment Account an amount equal to the related Substitution Adjustment
Amount, if any, and the Custodian, upon receipt of the related Qualified
Substitute Mortgage Loan or Loans and a Request for Release from the Seller,
which includes a written certification of the Seller of delivery of such amount
to the Securities Administrator, shall release to the Substituting Party the
related Mortgage File or Files. The Custodian shall execute and deliver such
instruments of transfer or assignment, in each case without recourse,
representation or warranty, as the Substituting Party shall deliver to the
Indenture Trustee with respect to any Deleted Mortgage Loan to be released
pursuant hereto.

     SECTION 2.10 Granting Clause.

     (a) It is intended that the conveyance of the Mortgage Loans by the Seller
to the Depositor and by the Depositor to the Issuing Entity, as provided for in
Sections 2.1 and 2.2, be construed as a sale of the Mortgage Loans and other
assets in the Trust Fund by the Seller to the Depositor and by the Depositor to
the Issuing Entity. Further, it is not intended that any such conveyances be
deemed a pledge of the Mortgage Loans by the Seller to the Depositor to secure a
debt or other obligation of the Seller, or a pledge of the Mortgage Loans by the
Depositor to the Issuing Entity to secure a debt or other obligation of the
Depositor. However, in the event that the Mortgage Loans are held to be property
of the Seller or the Depositor or if for any reason this Agreement is held or
deemed to create a security interest in the Mortgage Loans and other assets in
the Trust Fund, then it is intended that:

          (i) this Agreement shall also be deemed to be a security agreement
     within the meaning of Articles 8 and 9 of the UCC;

          (ii) the conveyances provided for in Sections 2.1 and 2.2 shall be
     deemed a grant by the Seller to the Depositor, and by the Depositor to the
     Issuing Entity, as the case may be, of (1) a security interest in all of
     the Seller's right and Depositor's right, as applicable, (including the
     power to convey title thereto), title and interest, whether now owned or
     hereafter acquired, in and to (A) the Mortgage Loans, including the
     Mortgage Notes, the Mortgages, any related insurance policies and all other
     documents in the related Mortgage Files, (B) all amounts payable pursuant
     to the Mortgage Loans in accordance with the terms thereof and (C) any and
     all general intangibles consisting of, arising from or relating to any of
     the foregoing, and all proceeds of the conversion, voluntary or
     involuntary, of the foregoing into cash, instruments, securities or other

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     property, including without limitation all Liquidation Proceeds, all
     Insurance Proceeds and all amounts from time to time held or invested in
     the Custodial Account, whether in the form of cash, instruments, securities
     or other property and (2) an assignment by the Seller to the Depositor and
     by the Depositor to the Issuing Entity of any security interest in any and
     all of the Seller's and Depositor's right (including the power to convey
     title thereto), title and interest, whether now owned or hereafter
     acquired, in and to the property described in the foregoing clauses (1)(A)
     through (C);

          (iii) the possession by the Indenture Trustee, the Custodian, or any
     other agent of the Indenture Trustee of Mortgage Notes, and such other
     items of property as constitute instruments, money, negotiable documents or
     chattel paper shall be deemed to be "possession by the secured party," or
     possession by a purchaser or a person designated by such secured party, for
     purposes of perfecting the security interest pursuant to the UCC and any
     other relevant UCC (including, without limitation, Section 9-313, 8-313 or
     8-321 thereof); and

          (iv) notifications to persons holding such property, and
     acknowledgments, receipts or confirmations from persons holding such
     property, shall be deemed notifications to, or acknowledgments, receipts or
     confirmations from, financial intermediaries, bailees or agents (as
     applicable) of the Issuing Entity for the purpose of perfecting such
     security interest under applicable law.

     (b) The Seller and the Depositor shall, to the extent consistent with this
Agreement, take such reasonable actions as may be necessary to ensure that, if
this Agreement were deemed to create a security interest in the Mortgage Loans
and the other property of the Trust Fund, such security interest would be deemed
to be a perfected security interest of first priority under applicable law and
will be maintained as such throughout the term of this Agreement. Without
limiting the generality of the foregoing, the Seller and the Depositor shall
prepare and file any UCC financing statements that are necessary to perfect the
Depositor's and the Indenture Trustee's security interest in or lien on the
Mortgage Loans, as evidenced by an Officer's Certificate of the Seller and the
Depositor, and furnish a copy of each such filed financing statement to the
Indenture Trustee. The Seller and the Depositor shall prepare and file, at the
expense of the Issuing Entity, all filings necessary to maintain the
effectiveness of any original filings necessary under the relevant UCC to
perfect the Indenture Trustee's security interest in or lien on the Mortgage
Loans, including without limitation (x) continuation statements, and (y) to the
extent that a Responsible Officer of the Depositor has received written notice
of such change or transfer, such other statements as may be occasioned by (1)
any change of name of the Seller, the Depositor or the Issuing Entity, (2) any
change of location of the domicile or the chief executive office of the Seller
or the Depositor or (3) any transfer of any interest of the Seller or the
Depositor in any Mortgage Loan.

     Neither the Seller nor the Depositor shall organize under the law of any
jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving 30 days prior written notice of
such action to the Servicer and the Indenture Trustee. Before effecting such
change, each of the Seller or the Depositor proposing to change its jurisdiction
of organization shall prepare and file in the appropriate filing office any
financing statements or

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other statements necessary to continue the perfection of the interests of its
transferees, including the Indenture Trustee, in the Mortgage Loans.

     (c) Neither the Seller nor the Depositor shall take any action inconsistent
with the sale by the Seller or the Depositor of its right, title and interest in
and to the Mortgage Loans or Trust Fund and shall indicate or shall cause to be
indicated in its records and records held on its behalf that ownership of each
Mortgage Loan and the other property of the Issuing Entity is held by the
Issuing Entity, subject to the lien of the Indenture. In addition, the Seller
and the Depositor shall respond to any inquiries from third parties with respect
to ownership of a Mortgage Loan or any other property of the Trust Fund by
stating that it is not the owner of such Mortgage Loan and that ownership of
such Mortgage Loan or other property of the Trust Fund is held by the Issuing
Entity, subject to the lien of the Indenture.

     SECTION 2.11 Assignment of OTC Hedge Agreements

     (a) Notwithstanding anything herein or the Operative Agreements to the
contrary, from time to time the Depositor may assign to the Issuing Entity
certain derivative contracts for the exclusive benefit of the Certificateholder
(each, an "OTC HEDGE AGREEMENT") if the following conditions are met on the date
such OTC Hedge Agreement is assigned:

          (i) The Depositor has provided at least seven Business Days prior
     notice of such assignment to the Issuing Entity, the Owner Trustee, the
     Securities Administrator and the Indenture Trustee;

          (ii) No payments are due to the hedge counterparty under the OTC Hedge
     Agreement, including any payment that may arise from an event of default or
     termination event thereunder;

          (iii) The OTC Hedge Agreement is documented on standard forms
     promulgated by the International Swaps and Derivatives Association, Inc.;

          (iv) Each OTC Hedge Agreement is governed by, and construed in
     accordance with, the laws of the State of New York, and contains standard
     submission to jurisdiction and waivers of jury trial; and

          (v) Each OTC Hedge Agreement contains appropriate "limited recourse"
     and "non-petition" provisions.

     (b) While any such OTC Hedge Agreement will be an asset of the Issuing
Entity, it will not be part of the Trust Fund. Any payments received under an
OTC Hedge Agreement will not be available to pay principal and interest on the
Notes or to pay any fee, expense and indemnity obligations of the Issuing Entity
under the Operative Agreement. The Securities Administrator shall remit promptly
any payments received by it under the OTC Hedge Agreement to the
Certificateholder. The Securities Administrator will also forward promptly any
communications received by it from the counterparty to the OTC Hedge Agreement.
The Securities Administrator shall have no obligation to engage in any other
action with respect to an OTC Hedge Agreement unless the Depositor or the
Certificateholder has provided indemnity satisfactory to the Securities
Administrator, as determined by it in its sole discretion.

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     (c) None of the Owner Trustee, the Seller, the Servicer, the Master
Servicer, the Indenture Trustee or the Securities Administrator will have any
duties to monitor and otherwise enforce any OTC Hedge Agreement. Payments
received under the OTC Hedge Agreement need not be reflected in any report to
Noteholders or the Certificateholder as otherwise provided in this Agreement.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     SECTION 3.1 Representations and Warranties of the Seller.

     The Seller hereby represents and warrants to the other parties hereto as of
the Closing Date that:

     (a) The Seller has been duly organized and is validly existing as a limited
liability company in good standing under the laws of Maryland, with full power
and authority to own its assets and conduct its business as presently being
conducted.

     (b) The Seller has the full entity power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, and the
execution, delivery and performance of this Agreement (including all instruments
of transfer to be delivered pursuant to this Agreement) by the Seller and the
consummation of the transactions contemplated hereby have been duly and validly
authorized.

     (c) This Agreement constitutes a legal, valid and binding obligation of the
Seller, enforceable against the Seller in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors' rights in general and except as such
enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity).

     (d) None of the execution and delivery of this Agreement, the sale of the
Mortgage Loans by the Seller, the transactions contemplated hereby, or the
fulfillment of or compliance with the terms and conditions of this Agreement
will conflict with or result in a breach of any of the terms, the certificate of
incorporation, bylaws or any legal restriction or any agreement or instrument to
which the Seller is now a party or by which it is bound, or constitute a default
or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Seller or its property is subject, or impair the ability of
the Issuing Entity to realize on the Mortgage Loans, or impair the value of the
Mortgage Loans.

     (e) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Seller of or compliance by the Seller with this Agreement or
the sale of the Mortgage Loans as evidenced by the consummation of the
transactions contemplated by this Agreement, or if required, such consent,
approval, authorization or order has been obtained prior to the related Closing
Date.

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     (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Seller which, either individually or in the
aggregate, may result in any material adverse change in the business,
operations, financial condition, properties or assets of the Seller, or in any
material impairment of the right or ability of the Seller to carry on its
business substantially as now conducted, or which would draw into question the
validity of this Agreement or the Mortgage Loans or of any action taken or
contemplated herein, or which would be likely to impair materially the ability
of the Seller to perform under the terms of this Agreement.

     (g) The transfer, assignment and conveyance of the Mortgage Loans by the
Seller pursuant to this Agreement are not subject to the bulk transfer or any
similar statutory provisions in effect in any applicable jurisdiction.

     (h) The Seller is solvent and the sale of the Mortgage Loans will not cause
the Seller to become insolvent. The sale of the Mortgage Loans is not undertaken
to hinder, delay or defraud any of the Seller's creditors.

     (i) The consideration received by the Seller upon the sale of the Mortgage
Loans under this Agreement constitutes fair consideration and reasonably
equivalent value for the Mortgage Loans.

     (j) The Seller has determined that the disposition of the Mortgage Loans
from Seller to Depositor pursuant to this Agreement will be afforded sale
treatment for accounting purposes, all on a non-consolidated basis.

     (k) The Seller has not transferred the Mortgage Loans to the Depositor with
any intent to hinder, delay or defraud any of its creditors.

     (l) The Seller has not dealt with any broker, investment banker, agent or
other Person that may be entitled to any commission or compensation in the
connection with the sale of the Mortgage Loans.

     (m) Immediately prior to the transfer by the Seller to the Depositor of
each Mortgage Loan, the Seller had good and equitable title to each Mortgage
Loan, subject to no prior lien, claim, participation interest, mortgage,
security interest, pledge, charge or other encumbrance or other interest of any
nature. On and after the transfer by the Seller to the Depositor of each
Mortgage Loan, the Depositor will have good and equitable title to each Mortgage
Loan, subject to no prior lien, claim, participation interest, mortgage,
security interest, pledge, charge or other encumbrance or other interest of any
nature.

     (n) None of this Agreement, the information set forth in the Mortgage Loan
Schedules attached hereto and the information contained in the related
electronic data file delivered to the Master Servicer by the Seller, nor any
statement, report or other document furnished or to be furnished by or on behalf
of the Seller pursuant to this Agreement or in connection with the transactions
contemplated hereby, contains any untrue statement of material fact or omits to
state a material fact necessary to make the statements contained therein not
misleading.

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     (o) The information about the Seller under the heading "The Sponsor" in the
Prospectus relating to the Seller, as of the respective dates of the preliminary
prospectus supplement and the prospectus supplement, and as of the Closing Date,
does not include an untrue statement of a material fact and does not omit to
state a material fact, with respect to the statements made, necessary in order
to make the statements in light of the circumstances under which they were made
not misleading.

     SECTION 3.2 Representations and Warranties of the Depositor.

     The Depositor hereby represents and warrants to the other parties hereto as
of the Closing Date that:

     (a) The Depositor has been duly organized and is validly existing as a
corporation in good standing under the laws of Delaware, with full power and
authority to own its assets and conduct its business as presently being
conducted.

     (b) The Depositor has the full corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, and the
execution, delivery and performance of this Agreement (including all instruments
of transfer to be delivered pursuant to this Agreement) by the Depositor and the
consummation of the transactions contemplated hereby have been duly and validly
authorized.

     (c) This Agreement constitutes a legal, valid and binding obligation of the
Depositor, enforceable against the Depositor in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors' rights in general and except as such
enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity).

     (d) None of the execution and delivery of this Agreement, the sale of the
Mortgage Loans by the Depositor, the transactions contemplated hereby, or the
fulfillment of or compliance with the terms and conditions of this Agreement
will conflict with or result in a breach of any of the terms, certificate of
incorporation, bylaws or any legal restriction or any agreement or instrument to
which the Depositor is now a party or by which it is bound, or constitute a
default or result in the violation of any law, rule, regulation, order, judgment
or decree to which the Depositor or its property is subject, or impair the
ability of the Issuing Entity to realize on the Mortgage Loans, or impair the
value of the Mortgage Loans.

     (e) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Depositor of or compliance by the Depositor with this
Agreement or the sale of the Mortgage Loans is evidenced by the consummation of
the transactions contemplated by this Agreement, or if required, such consent,
approval, authorization or order has been obtained prior to the related Closing
Date.

     (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Depositor which, either individually or in the
aggregate, may result in any material adverse change in the business,
operations, financial condition, properties or assets of the Depositor, or in
any material impairment of the right or ability of the Depositor to carry on its

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business substantially as now conducted, or which would draw into question the
validity of this Agreement or the Mortgage Loans or of any action taken or to be
contemplated herein, or which would be likely to impair materially the ability
of the Depositor to perform under the terms of this Agreement.

     (g) The transfer, assignment and conveyance of the Mortgage Loans by the
Depositor pursuant to this Agreement are not subject to the bulk transfer or any
similar statutory provisions in effect in any applicable jurisdiction.

     (h) The Depositor is solvent and the sale of the Mortgage Loans will not
cause the Depositor to become insolvent. The sale of the Mortgage Loans is not
undertaken to hinder, delay or defraud any of the Depositor's creditors.

     (i) The consideration received by the Depositor upon the sale of the
Mortgage Loans under this Agreement constitutes fair consideration and
reasonably equivalent value for the Mortgage Loans.

     (j) The Depositor has determined that the disposition of the Mortgage Loans
from Depositor to the Issuing Entity pursuant to this Agreement will be afforded
sale treatment for accounting purposes, all on a non-consolidated basis.

     (k) The Depositor has not transferred the Mortgage Loans to the Trust Fund
with any intent to hinder, delay or defraud any of its creditors.

     (l) The Depositor has not dealt with any broker, investment banker, agent
or other Person that may be entitled to any commission or compensation in the
connection with the sale of the Mortgage Loans.

     (m) Immediately prior to the transfer by the Depositor to the Trust Fund of
each Mortgage Loan, the Depositor had good and equitable title to each Mortgage
Loan (insofar as such title was conveyed to it by the Seller), subject to no
prior lien, claim, participation interest, mortgage, security interest, pledge,
charge or other encumbrance or other interest of any nature. On and after the
transfer by the Depositor to the Trust Fund of each Mortgage Loan, the Issuing
Entity will have good and equitable title to each Mortgage Loan (insofar as such
title was conveyed to it by the Seller) subject to no prior lien, claim,
participation interest, mortgage, security interest, pledge, charge or other
encumbrance or other interest of any nature.

     SECTION 3.3 Representations and Warranties of the Servicer.

     The Servicer hereby represents and warrants to the other parties hereto as
of the Closing Date that:

     (a) The Servicer is a national banking association, duly organized and
validly existing in good standing under the laws of the United States of
America, with full power and authority to own its assets and conduct its
business as presently being conducted.

     (b) The Servicer has the full corporate power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, and the
execution, delivery and

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performance of this Agreement (including all instruments of transfer to be
delivered pursuant to this Agreement) by the Servicer and the consummation of
the transactions contemplated hereby have been duly and validly authorized.

     (c) This Agreement constitutes a legal, valid and binding obligation of the
Servicer, enforceable against the Servicer in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors' rights in general and except as such
enforceability may be limited by general principles of equity (whether
considered in a proceeding at law or in equity).

     (d) None of the execution and delivery of this Agreement, the transactions
contemplated hereby, or the fulfillment of or compliance with the terms and
conditions of this Agreement will conflict with or result in a breach of any of
the terms, articles of incorporation, or by-laws or any legal restriction or any
agreement or instrument to which the Servicer is now a party or by which it is
bound, or constitute a default or result in the violation of any law, rule,
regulation, order, judgment or decree to which the Servicer or its property is
subject, or impair the ability of the Issuing Entity to realize on the Mortgage
Loans, or impair the value of the Mortgage Loans.

     (e) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Servicer of or compliance by the Servicer with this Agreement
as evidenced by the consummation of the transactions contemplated by this
Agreement, or if required, such consent, approval, authorization or order has
been obtained prior to the related Closing Date.

     (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Servicer which, either individually or in the
aggregate, may result in any material adverse change in the business,
operations, financial condition, properties or assets of the Servicer, or in any
material impairment of the right or ability of the Servicer to carry on its
business substantially as now conducted, or which would draw into question the
validity of this Agreement or the Mortgage Loans or of any action taken or to be
contemplated herein, or which would be likely to impair materially the ability
of the Servicer to perform under the terms of this Agreement.

     (g) The Servicer is an approved servicer of conventional residential
mortgage loans for Fannie Mae and Freddie Mac, with the facilities, procedures,
and experienced personnel necessary for the sound servicing of mortgage loans of
the same type as the Mortgage Loans. The Servicer is in good standing to service
mortgage loans for Fannie Mae and Freddie Mac, and no event has occurred,
including but not limited to a change in insurance coverage, which would make
the Servicer unable to comply with Fannie Mae or Freddie Mac eligibility
requirements.

     (h) The Servicer acknowledges and agrees that the Servicing Fee represents
reasonable compensation for performing such services and that the entire
Servicing Fee shall be treated by the Servicer, for accounting and tax purposes,
as compensation for the servicing and administration of the Mortgage Loans
pursuant to this Agreement.

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     (i) The consummation of the transactions contemplated by this Agreement are
in the ordinary course of business of the Servicer, which is in the business of
servicing loans.

     (j) There has been no material adverse change in the business, operations,
financial condition or assets of the Servicer since the date of the Servicer's
most recent financial statements.

     (k) The Servicer is not aware and has not received notice that any default,
early amortization or other performance triggering event has occurred to any
other securitization due to any act or failure to act of the Servicer.

     (l) The Servicer has not been terminated as servicer in a residential
mortgage loan securitization, either due to a servicing default or to
application of a servicing performance test or trigger.

     (m) No material noncompliance with the applicable Servicing Criteria with
respect to other securitizations of residential mortgage loans involving the
Servicer as servicer has been disclosed or reported by the Servicer.

     (n) No material changes to the Servicer's policies or procedures with
respect to the servicing function it will perform under this Agreement for
mortgage loans of a type similar to the Mortgage Loans have occurred during the
three-year period immediately preceding the date hereof.

     (o) There are no aspects of the Servicer's financial condition that could
have a material adverse effect on the performance by the Servicer of its
servicing obligations under this Agreement.

     (p) There are no material legal or governmental proceedings pending (or
known to be contemplated) against the Servicer.

     (q) There are no affiliations, relationships or transactions relating the
Servicer with respect to this transaction and any party thereto identified by
the Depositor of a type described in Item 1119 of Regulation AB.

     SECTION 3.4 Representations and Warranties of the Master Servicer and
Securities Administrator.

     [ - ] hereby represents and warrants to the other parties hereto as of the
Closing Date that:

     (a) It is a national banking association, duly organized and validly
existing in good standing under the laws of the United States of America, with
full power and authority to own its assets and conduct its business as presently
being conducted.

     (b) It has the full corporate power and authority to execute and deliver
this Agreement and to perform its obligations hereunder, and the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to

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this Agreement) by the Master Servicer or the Securities Administrator and the
consummation of the transactions contemplated hereby have been duly and validly
authorized.

     (c) This Agreement constitutes a legal, valid and binding obligation of the
Master Servicer and Securities Administrator, enforceable against each in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect affecting the enforcement of creditors' rights in general
and except as such enforceability may be limited by general principles of equity
(whether considered in a proceeding at law or in equity).

     (d) None of the execution and delivery of this Agreement, the transactions
contemplated hereby, or the fulfillment of or compliance with the terms and
conditions of this Agreement will conflict with or result in a breach of any of
the terms, articles of incorporation or by-laws or any legal restriction or any
agreement or instrument to which the Master Servicer or the Securities
Administrator are now a party or by which it is bound, or constitute a default
or result in the violation of any law, rule, regulation, order, judgment or
decree to which the Master Servicer or the Securities Administrator or their
respective properties are subject, or impair the ability of the Issuing Entity
to realize on the Mortgage Loans, or impair the value of the Mortgage Loans.

     (e) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Master Servicer and the Securities Administrator of or
compliance by the Master Servicer and Securities Administrator with this
Agreement as evidenced by the consummation of the transactions contemplated by
this Agreement, or if required, such consent, approval, authorization or order
has been obtained prior to the related Closing Date.

     (f) There is no action, suit, proceeding or investigation pending or to its
knowledge threatened against the Master Servicer or the Securities Administrator
which, either individually or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of the Master Servicer or the Securities Administrator, or in any
material impairment of the right or ability of the Master Servicer or the
Securities Administrator to carry on its business substantially as now
conducted, or which would draw into question the validity of this Agreement or
the Mortgage Loans or of any action taken or to be contemplated herein, or which
would be likely to impair materially the ability of the Master Servicer or the
Securities Administrator to perform under the terms of this Agreement.

     (g) At such time as the Master Servicer is the successor servicer, it is an
approved servicer of conventional residential mortgage loans for Fannie Mae and
Freddie Mac, with the facilities, procedures, and experienced personnel
necessary for the sound servicing of mortgage loans of the same type as the
Mortgage Loans. At such time the Master Servicer is the successor servicer, the
Master Servicer or an Affiliate of the Master Servicer is a HUD-approved
mortgagee pursuant to Section 203 of the National Housing Act and is in good
standing to service mortgage loans for Fannie Mae and Freddie Mac, and no event
has occurred, including but not limited to a change in insurance coverage, which
would make it or any of its Affiliates unable to comply with Fannie Mae or
Freddie Mac eligibility requirements or which would require notification to
either Fannie Mae or Freddie Mac.

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     (h) The consummation of the transactions contemplated by this Agreement are
in the ordinary course of business of the Master Servicer and Securities
Administrator.

     (i) It has not been terminated as master servicer or securities
administrator in a residential mortgage loan securitization, either due to a
master servicing default or other inability to perform the required services.

     (j) No material noncompliance with the applicable Servicing Criteria with
respect to other securitizations of residential mortgage loans involving the
Master Servicer or Securities Administrator as servicer has been disclosed or
reported by the Master Servicer.

     (k) No material changes to the Master Servicer's policies or procedures
with respect to the master servicing function it will perform under this
Agreement for mortgage loans of a type similar to the Mortgage Loans have
occurred during the three-year period immediately preceding the date hereof.

     (l) There are no aspects of the Master Servicer's financial condition that
could have a material adverse effect on the performance by it of its master
servicing obligations under this Agreement.

     (m) There are no material legal or governmental proceedings pending (or
known to be contemplated) against the Master Servicer.

     (n) There are no affiliations, relationships or transactions relating the
Master Servicer with respect to this transaction and any party thereto
identified by the Depositor of a type described in Item 1119 of Regulation AB.

                                   ARTICLE IV

                         SERVICING OF THE MORTGAGE LOANS

     SECTION 4.1 General.

     (a) The Servicer shall service and administer the Mortgage Loans on behalf
of the Issuing Entity in accordance with this Agreement and shall have full
power and authority, acting alone or through one or more subservicers, to do any
and all things in connection with such servicing and administration that the
Servicer may deem necessary or desirable, consistent with the terms of this
Agreement and with Accepted Servicing Practices.

     (b) Subject to the terms of this Agreement, the Servicer may waive, modify
or vary any term of any Mortgage Loan or consent to the postponement of strict
compliance with any such term or in any manner grant indulgence to any Mortgagor
if in the Servicer's reasonable and prudent determination, consistent with
Accepted Servicing Practices, such waiver, modification, postponement or
indulgence is not materially adverse to the Issuing Entity or the Noteholders;
provided, however, the Servicer shall not make any future advances of funds to
the Mortgagor with respect to a Mortgage Loan; and provided further, that the
Servicer shall not extend the Due Dates for Scheduled Monthly Payments on a
Mortgage Note past the Due Period with respect to the Maturity Date. In the
event of any modification that permits the deferral of

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interest or principal payments on any Mortgage Loan, the Servicer shall, on the
Business Day immediately preceding the Servicer Remittance Date in any month in
which any such principal or interest payment has been deferred, deposit as a
Monthly Advance in the Custodial Account from its own funds the difference
between (i) such month's principal and one month's interest at the Mortgage Loan
Remittance Rate on the unpaid principal balance of such Mortgage Loan and (ii)
the amount paid by the Mortgagor. The Servicer shall be entitled to
reimbursement for such Advances to the same extent as for all other Monthly
Advances. Without limiting the generality of the foregoing, the Servicer shall
continue, and is hereby authorized and empowered, to execute and deliver on
behalf of itself and the Issuing Entity, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the
Mortgaged Properties. If reasonably required by the Servicer, the Indenture
Trustee shall furnish the Servicer with any powers of attorney (which are
acceptable to the Indenture Trustee) and other documents necessary or
appropriate to enable the Servicer to carry out its servicing and administrative
duties under this Agreement.

     (c) Subject to Section 4.2, the Servicer may arrange for the subservicing
of any Mortgage Loan it services by a Servicer pursuant to a subservicing
agreement; provided, however, that such subservicing arrangement and the terms
of the related subservicing agreement must provide for the servicing of such
Mortgage Loan in a manner consistent with the servicing arrangements
contemplated hereunder. The Servicer shall be solely liable for all fees owed to
the Subservicer under any subservicing agreement, regardless of whether the
Servicer's compensation hereunder is adequate to pay such fees. Notwithstanding
the provisions of any subservicing agreement, any of the provisions of this
Agreement relating to agreements or arrangements between the Servicer and a
Subservicer or reference to actions taken through a Subservicer or otherwise,
the Servicer shall remain obligated and liable to the Issuing Entity for the
servicing and administration of the Mortgage Loans it services in accordance
with the provisions of this Agreement without diminution of such obligation or
liability by virtue of such subservicing agreements or arrangements or by virtue
of indemnification from the Servicer and to the same extent and under the same
terms and conditions as if the Servicer alone were servicing and administering
those Mortgage Loans. All actions of each Subservicer performed pursuant to the
related subservicing agreement shall be performed as agent of the Servicer with
the same force and effect as if performed directly by the Servicer. For purposes
of this Agreement, the Servicer shall be deemed to have received any
collections, recoveries or payments with respect to the Mortgage Loans it
services that are received by a Subservicer regardless of whether such payments
are remitted by the to the Servicer. Any subservicing agreement entered into by
the Servicer shall provide that it may be assumed or terminated by the Master
Servicer, if the Master Servicer has assumed the duties of the Servicer, or by
any successor servicer, at the Master Servicer's or successor servicer's option,
as applicable, without cost or obligation to the assuming or terminating party
or its assigns. Any subservicing agreement, and any other transactions or
services relating to the Mortgage Loans involving a Subservicer, shall be deemed
to be between the Servicer and such Subservicer alone, and the Master Servicer
shall not be deemed a party thereto and shall have no claims or rights of action
against, rights, obligations, duties or liabilities to or with respect to the
Subservicer or its officers, directors or employees.

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     SECTION 4.2 Use of Subservicers and Subcontractors.

     The Servicer shall not hire or otherwise utilize the services of any
Subservicer to fulfill any of the obligations of the Servicer as servicer under
this Agreement unless the Servicer complies with the provisions of Section
4.2(a). The Servicer shall not hire or otherwise utilize the services of any
Subcontractor, and shall not permit any Subservicer to hire or otherwise utilize
the services of any Subcontractor, to fulfill any of the obligations of the
Servicer as servicer under this Agreement unless the Servicer complies with the
provisions of Section 4.2(a) of this Section.

     (a) It shall not be necessary for the Servicer to seek the consent of the
Depositor or the Master Servicer to the utilization of any Subservicer. The
Servicer shall cause any Subservicer used by the Servicer (or by any
Subservicer) for the benefit of the Depositor to comply with the provisions of
this Section, with Item 1108 of Regulation AB, and with Sections 5.1, 5.2, 5.9
and 6.7 of this Agreement to the same extent as if such Subservicer were the
Servicer, and to provide the information required with respect to such
Subservicer under Section 6.7(a) of this Agreement. The Servicer shall be
responsible for obtaining from each Subservicer and delivering to the Depositor
and the Master Servicer any servicer Compliance Statement required to be
delivered by such Subservicer under Section 5.2, any Assessment of Compliance
and Attestation Report required to be delivered by such Subservicer under
Section 5.1, and any certification required to be delivered to the Person that
will be responsible for signing the Back-Up SOX Certification under Section 5.3
as and when required to be delivered.

     (b) It shall not be necessary for the Servicer to seek the consent of the
Depositor or Master Servicer to the utilization of any Subcontractor. The
Servicer shall promptly upon request provide to the Master Servicer and the
Depositor (or any designee of the Depositor, such as an administrator) a written
description (in form and substance satisfactory to the Depositor and the Master
Servicer) of the role and function of each Subcontractor utilized by the
Servicer or any Subservicer, specifying (i) the identity of each such
Subcontractor, (ii) which (if any) of such Subcontractors are "participating in
the servicing function" within the meaning of Item 1122 of Regulation AB, and
(iii) which elements of the Servicing Criteria will be addressed in Assessments
of Compliance provided by each Subcontractor identified pursuant to this Section
4.2(a).

     (c) As a condition to the utilization of any Subcontractor determined to be
"participating in the servicing function" within the meaning of Item 1122 of
Regulation AB, the Servicer shall cause any such Subcontractor used by the
Servicer (or by any Subservicer) for the benefit of the Depositor to comply with
the provisions of Sections 5.1 and 5.9 of this Agreement to the same extent as
if such Subcontractor were the Servicer. The Servicer shall be responsible for
obtaining from each Subcontractor and delivering to the Depositor any assessment
of compliance and attestation and any other certifications required to be
delivered by such Subcontractor under Section 5.1, in each case as and when
required to be delivered.

     SECTION 4.3 Collection of Mortgage Loan Payments.

     (a) Continuously from the date hereof until the principal and interest on
all Mortgage Loans are paid in full or the Mortgage Loans have been fully
liquidated (with respect to

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Mortgage Loans that remain subject to this Agreement), the Servicer shall
proceed diligently to collect all payments due under each of the Mortgage Loans
when the same shall become due and payable, and shall to the extent such
procedures shall be consistent with this Agreement and the terms and provisions
of any applicable mortgage insurance policy, follow such collection procedures
as it follows with respect to mortgage loans comparable to the Mortgage Loans
and held for its own account.

     (b) If any Mortgage Loan is more than 60 days delinquent, the Servicer
immediately shall inspect the Mortgaged Property and shall conduct subsequent
inspections in accordance with Accepted Servicing Practices or as may be
required by any primary mortgage guaranty insurer. The Servicer shall keep a
written report of each such inspection.

     SECTION 4.4 Realization Upon Defaulted Mortgage Loans.

     (a) The Servicer shall use efforts consistent with Accepted Servicing
Practices to foreclose upon or otherwise comparably convert the ownership of
such Mortgage Properties as come in to and continue in default and as to which
no satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 4.3. The Servicer shall realize upon defaulted Mortgage
Loans in such manner as will maximize the receipt of principal and interest by
the Issuing Entity, taking into account, among other things, the timing of
foreclosure proceedings. Foreclosure or comparable proceedings shall be
initiated within 120 days of default for Mortgaged Properties for which no
satisfactory arrangements can be made for collection of delinquent payments
unless prevented by statutory limitations or states whose insolvency laws
prohibit such actions within such timeframe. As an alternative to foreclosure,
the Servicer may arrange for the sale of such Mortgage Loan to a third party in
an arms length transaction and at fair market value. The Servicer shall from its
own funds make all necessary and proper Servicing Advances; provided, however,
that the Servicer shall not be required to expend its own funds in connection
with any foreclosure or towards the restoration or preservation of any Mortgaged
Property, unless it shall determine (i) that such preservation, restoration
and/or foreclosure will increase the net proceeds of liquidation of the Mortgage
Loan to the Issuing Entity after reimbursement for such expenses and (ii) that
such expenses will be recoverable by it either through Liquidation Proceeds
(respecting which it shall have priority for purposes of withdrawals from the
Custodial Account pursuant to Section 4.6) or through Insurance Proceeds
(respecting which it shall have similar priority).

     (b) If the Servicer has knowledge that a Mortgaged Property that the
Servicer is contemplating acquiring in foreclosure or by deed-in-lieu of
foreclosure is located within a one-mile radius of any site with environmental
or hazardous waste risks known to the Servicer, the Servicer will, prior to
acquiring the Mortgaged Property, consider such risks and only take action in
accordance with Accepted Servicing Practices. The Servicer shall not have any
obligation to purchase any Mortgaged Property at any foreclosure sale.

     SECTION 4.5 Establishment of and Deposits to Custodial Account.

     (a) The Servicer shall establish and maintain one or more accounts (the
"CUSTODIAL ACCOUNT"), designated "Custodial Account of [Name of Servicer], as
Servicer f/b/o Luminent Mortgage Trust 200_-_." The Custodial Account shall be
established as an Eligible Account,

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and any funds therein shall at all times be insured to the fullest extent
allowed by applicable law. All funds required to be deposited in the Custodial
Account shall be held in trust for the Indenture Trustee until withdrawn in
accordance with Section 4.6. The Servicer shall segregate and hold all funds
collected and received pursuant to a Mortgage Loan separate and apart from any
of its own funds and general assets. Within five Business Days following any
request of the Master Servicer, the Servicer shall provide the Master Servicer
with written confirmation of the existence of such Custodial Account.

     (b) Funds on deposit in the Custodial Account may be invested at the
direction of the Servicer, but only in Eligible Investments that mature not
later than the Business Day prior to the Servicer Remittance Date next following
the date of such investment. All income and gain realized from any such
investment shall be for the benefit of the Servicer and shall be subject to its
withdrawal or order from time to time. The amount of any losses incurred in
respect of any such investments shall be deposited in the Custodial Account by
the Servicer out of its own funds immediately as such losses are realized.

     (c) The Servicer shall deposit in the Custodial Account within two Business
Days of Servicer's receipt, and retain therein, the following collections
received by the Servicer and payments made by the Servicer after the Cut-off
Date (other than payments of principal and interest due on or before the Cut-off
Date), or prior to the Cut-off Date but allocable to a period subsequent
thereto:

          (i) all payments on account of principal on the Mortgage Loans,
     including all Principal Prepayments (including Prepayment Premiums paid by
     any Mortgagor or by the Servicer pursuant to Section 4.18 of this
     Agreement);

          (ii) all payments on account of interest on the Mortgage Loans
     adjusted to the Mortgage Loan Remittance Rate;

          (iii) all Liquidation Proceeds (net of Liquidation Expenses);

          (iv) all Insurance Proceeds, including amounts required to be
     deposited pursuant to Section 4.11 (other than proceeds to be held in the
     Escrow Account and applied to the restoration or repair of the Mortgaged
     Property or released to a Mortgagor in accordance with Section 4.14 and
     Accepted Servicing Practices) and Section 4.12;

          (v) all Condemnation Proceeds which are not applied to the restoration
     or repair of the Mortgaged Property or released to the Mortgagor in
     accordance with Section 4.15 and Accepted Servicing Practices;

          (vi) any amounts required to be deposited in the Custodial Account
     pursuant to Section 2.1(b) or 4.21;

          (vii) any amounts payable in connection with the repurchase of any
     Mortgage Loan and all amounts required to be deposited by the Servicer in
     connection with a shortfall in principal amount of any Qualified Substitute
     Mortgage Loan pursuant to Section 2.9;

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          (viii) with respect to each Principal Prepayment and any Prepayment
     Interest Shortfall, the Compensating Interest Payment (to be paid by the
     Servicer out of its own funds);

          (ix) any amounts received with respect to or related to any REO
     Property and all REO Disposition Proceeds pursuant to Section 4.15;

          (x) any amounts required to be deposited by the Servicer pursuant to
     Section 4.12 in connection with any deductible clause in any blanket hazard
     insurance policy; and

          (xi) any other amounts required to be deposited into the Custodial
     Account hereunder.

     (d) No later than the Servicer Remittance Date, the Servicer shall deposit
in the Custodial Account from its own funds or from amounts held for future
remittance an amount equal to all Monthly Advances with respect to the related
Determination Date (with interest adjusted to the Mortgage Loan Remittance
Rate). Any amounts held for future remittance and so used shall be replaced by
the Servicer by deposit in the Custodial Account on or before the next Servicer
Remittance Date. The Servicer's obligation to make such Monthly Advances as to
any Mortgage Loan will continue through the later of (i) the last Scheduled
Monthly Payment due prior to the payment in full of the Mortgage Loan, or (ii)
the last Servicer Remittance Date prior to the Servicer Remittance Date for the
remittance of all Liquidation Proceeds and other payments or recoveries
(including Insurance Proceeds, Condemnation Proceeds and REO Disposition
Proceeds) with respect to the Mortgage Loan; provided, however, that any such
obligation under this Section 4.5(d) shall cease with respect to a Mortgage Loan
if the Servicer determines, in its reasonable good faith judgment, that Monthly
Advances with respect to such Mortgage Loan are Non-recoverable Advances. In the
event that the Servicer determines that any such Monthly Advances are
Non-recoverable Advances, the Servicer shall provide the Master Servicer and the
Securities Administrator with a certificate signed a Responsible Officer of the
Servicer evidencing such determination and setting forth the basis for such
determination.

     (e) The foregoing requirements for deposit into the Custodial Account shall
be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of late payment charges,
assumption fees and other ancillary income (other than Prepayment Premiums), to
the extent permitted by Section 4.23, need not be deposited by the Servicer into
the Custodial Account. In the event that the Servicer shall remit any amount not
required to be remitted and not otherwise subject to withdrawal pursuant to
Section 4.6, it may at any time withdraw such amount from the Custodian Account,
any provision herein to the contrary notwithstanding. In no event shall the
Securities Administrator, the Master Servicer or the Indenture Trustee incur
liability for withdrawals from the Custodian Account at the direction of the
Servicer.

     SECTION 4.6 Permitted Withdrawals From Custodial Account.

     The Servicer may, from time to time, withdraw funds from the Custodial
Account for the following purposes:

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     (a) to make remittances to the Securities Administrator in the amounts and
in the manner provided for in Section 4.24;

     (b) to reimburse itself for unreimbursed Monthly Advances, the Servicer's
right to reimburse itself pursuant to this subclause (b) being limited to
amounts received on the related Mortgage Loan which represent late payments of
principal and/or interest respecting which any such advance was made, it being
understood that in the case of any such reimbursement the Servicer's right
thereto shall be prior to the rights of the Issuing Entity, except that, where
the Servicer is required to repurchase a Mortgage Loan pursuant to Section 4.21,
the Servicer's right to such reimbursement shall be subsequent to the payment to
the Issuing Entity of the Repurchase Price pursuant to such Sections and all
other amounts required to be paid to the Issuing Entity with respect to such
Mortgage Loan;

     (c) to reimburse itself for unreimbursed Servicing Advances and for any
unpaid Servicing Fees, the Servicer's right to reimburse itself pursuant to this
subclause (c) with respect to any Mortgage Loan being limited to related
Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and such other
amounts as may be collected by the Servicer from the Mortgagor or otherwise
relating to the Mortgage Loan, it being understood that in the case of any such
reimbursement the Servicer's right thereto shall be prior to the rights of the
Issuing Entity, except that where the Servicer is required to repurchase a
Mortgage Loan pursuant to Section 4.21, in which case the Servicer's right to
such reimbursement shall be subsequent to the payment to the Issuing Entity of
the Repurchase Price pursuant to such Sections and all other amounts required to
be paid to the Issuing Entity with respect to such Mortgage Loan;

     (d) to pay itself interest earned on funds deposited in the Custodial
Account to the extent such amount was previously credited;

     (e) to pay any amount required to be paid pursuant to Section 4.15 related
to any REO Property, it being understood that, in the case of any such
expenditure or withdrawal related to a particular REO Property, the amount of
such expenditure or withdrawal from the Custodial Account shall be limited to
amounts on deposit in the Custodial Account with respect to the related REO
Property;

     (f) to reimburse itself for any Non-recoverable Advances after liquidation
of the Mortgaged Property not otherwise reimbursed above;

     (g) to remove funds inadvertently placed in the Custodial Account by the
Servicer;

     (h) to reimburse itself any Prepayment Interest Excess; and

     (i) to clear and terminate the Custodial Account upon the termination of
this Agreement.

     The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Custodial Account.

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     SECTION 4.7 Establishment of and Deposits to Escrow Account.

     (a) The Servicer shall establish and maintain one or more accounts (an
"ESCROW ACCOUNT"), designated "Escrow Account of [Name of Servicer], as Servicer
f/b/o Luminent Mortgage Trust 200_-_ and various Mortgagors." Each Escrow
Account shall be established as an Eligible Account, and any funds therein shall
at all times be insured to the fullest extent allowed by applicable law. The
Servicer shall segregate and hold all funds collected and received pursuant to a
Mortgage Loan separate and apart from any of its own funds and general assets.
Within five Business Days following any request of the Master Servicer, the
Servicer shall provide the Master Servicer with written confirmation of the
existence of such Custodial Account.

     (b) To the extent permitted by law, funds on deposit in the Escrow Account
may be invested at the direction of the Servicer. The Servicer shall be entitled
to retain any interest paid on funds deposited in the Escrow Account, other than
interest on escrowed funds required by law to be paid to any Mortgagor. To the
extent required by law, the Servicer shall pay interest on escrowed funds to a
Mortgagor notwithstanding that the Escrow Account may be non-interest bearing or
that interest paid thereon is insufficient for such purposes.

     (c) The Servicer shall deposit in the Escrow Account within two Business
Days of Servicer's receipt, and retain therein, the following collections
received by the Servicer:

          (i) all Escrow Payments collected on account of the Mortgage Loans,
     for the purpose of effecting timely payment of any such items as required
     under the terms of this Agreement; and

          (ii) all amounts representing Insurance Proceeds or Condemnation
     Proceeds which are to be applied to the restoration or repair of any
     Mortgaged Property.

     (d) The Servicer shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 4.8.

     SECTION 4.8 Permitted Withdrawals From Escrow Account.

     Withdrawals from the Escrow Account may be made by the Servicer only:

     (a) to effect timely payments of ground rents, taxes, assessments, water
rates, condominium charges, fire and hazard insurance premiums or other items
constituting Escrow Payments for the related Mortgage;

     (b) to reimburse the Servicer for any Servicing Advances made by the
Servicer pursuant to Section 4.9 with respect to a related Mortgage Loan, but
only from amounts received on the related Mortgage Loan which represent late
collections of Escrow Payments thereunder;

     (c) to refund to any Mortgagor any funds found to be in excess of the
amounts required under the terms of the related Mortgage Loan;

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     (d) for transfer to the Custodial Account for application to reduce the
principal balance of the Mortgage Loan in accordance with the terms of the
related Mortgage and Mortgage Note;

     (e) for application to the restoration or repair of the Mortgaged Property
in accordance with the procedures outlined in Section 4.15;

     (f) to pay to the Servicer, or any Mortgagor to the extent required by law,
any interest paid on the funds deposited in the Escrow Account;

     (g) to remove funds inadvertently placed in the Escrow Account by the
Servicer; or

     (h) to clear and terminate the Escrow Account on the termination of this
Agreement.

     SECTION 4.9 Payment of Taxes, Insurance and Other Charges.

     With respect to each Mortgage Loan, the Servicer shall maintain accurate
records reflecting the status of ground rents, taxes, assessments, water rates,
sewer rents, and other charges which are or may become a lien upon the Mortgaged
Property and the status of fire and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including renewal
premiums) and shall effect payment thereof prior to the applicable penalty or
termination date, employing for such purpose deposits of the Mortgagor in the
Escrow Account which shall have been estimated and accumulated by the Servicer
in amounts sufficient for such purposes, as allowed under the terms of the
Mortgage. The Servicer assumes full responsibility for the timely payment of all
such bills and shall effect timely payment of all such charges irrespective of
each Mortgagor's faithful performance in the payment of same of the making of
the Escrow Payments, and the Servicer shall make advances from its own funds to
effect such payments, which advances shall constitute Servicing Advances
hereunder; provided, however, that the Servicer shall be required to so advance
only to the extent that the Servicer, in its reasonable good faith judgment,
believes the Servicing Advance to be recoverable from Insurance Proceeds or
Liquidation Proceeds or otherwise. To the extent that a Mortgage does not
provide for Escrow Payments, the Servicer shall use its reasonable efforts in
accordance with Accepted Servicing Practices to determine whether any such
payments are made by the Mortgagor at the time they first become due. The
Servicer shall make Servicing Advances from its own funds to effect such
delinquent payments within such time period as will avoid the loss of the
related Mortgaged Property by foreclosure of a tax or other lien. The costs
incurred by the Servicer, if any, in effecting the timely payments of taxes and
assessments on the Mortgaged Properties and related insurance premiums shall not
be added to the Scheduled Principal Balances of the related Mortgage Loans,
notwithstanding that the terms of such Mortgage Loans so permit.

     SECTION 4.10 Transfer of Custodial Account or Escrow Account.

     The Servicer may transfer the Custodial Account or the Escrow Account to a
different Eligible Account from time to time; provided, however, that the
Servicer shall give notice to the Master Servicer of any proposed change of the
location of either Account not later than ten Business Days prior to any change
thereof.

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     SECTION 4.11 Mortgaged Property Insurance.

     (a) The Servicer shall cause to be maintained for each Mortgage Loan hazard
insurance such that all buildings upon the Mortgaged Property are insured by a
generally acceptable insurer acceptable under Accepted Servicing Practices
against loss by fire, hazards of extended coverage and such other hazards as are
customary or required by law in the area where the Mortgaged Property is
located, in an amount which is at least equal to the lesser of (a) 100% of the
maximum insurable value of the improvements securing such Mortgage Loan and (b)
the greater of (i) the outstanding principal balance of the Mortgage Loan and
(ii) an amount such that the proceeds thereof shall be sufficient to prevent the
Mortgagor or the loss payee from becoming a co-insurer. In the event a hazard
insurance policy shall be in danger of being terminated, or in the event the
insurer shall cease to be acceptable under Accepted Servicing Practices, the
Servicer shall notify the related Mortgagor, and shall use its commercially
reasonable best efforts, as permitted by applicable law, to obtain from another
qualified insurer a replacement hazard insurance policy substantially and
materially similar in all respects to the original policy. In no event, however,
shall a Mortgage Loan be without a hazard insurance policy at any time, subject
only to Section 4.12.

     (b) If the related Mortgaged Property is located in an area identified by
the Flood Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available), the Servicer will cause to be
maintained a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration in effect with a generally
acceptable insurance carrier acceptable under Accepted Servicing Practices in an
amount representing coverage equal to the lesser of (a) the minimum amount
required, under the terms of coverage, to compensate for any damage or loss on a
replacement cost basis (or the unpaid balance of the mortgage if replacement
cost coverage is not available for the type of building insured) and (b) the
maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, as amended. If at any time during the term of the
Mortgage Loan, the Servicer determines in accordance with applicable law and
under Accepted Servicing Practices that a Mortgaged Property is located in a
special flood hazard area and is not covered by flood insurance or is covered in
an amount less than the amount required by the Flood Disaster Protection Act of
1973, as amended, the Servicer shall notify the related Mortgagor to obtain such
flood insurance coverage, and if said Mortgagor fails to obtain the required
flood insurance coverage within 45 days after such notification, the Servicer
shall immediately force place the required flood insurance on the Mortgagor's
behalf. Any out-of-pocket expenses or advance made by the Servicer on such
force-placed flood insurance coverage shall be deemed a Servicing Advance.

     (c) If a Mortgage is secured by a unit in a condominium project, the
Servicer shall verify that the coverage required of the owner's association,
including hazard, flood, liability, and fidelity coverage, is being maintained
in accordance with Accepted Servicing Practices, and secure from the owner's
association its agreement to notify the Servicer promptly of any change in the
insurance coverage or of any condemnation or casualty loss that may have a
material effect on the value of the Mortgaged Property as security.

     (d) In the event that the Servicer shall determine that the Mortgaged
Property should be insured against loss or damage by hazards and risks not
covered by the insurance required to

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be maintained by the Mortgagor pursuant to the terms of the Mortgage, the
Servicer shall communicate and consult with the Mortgagor with respect to the
need for such insurance and bring to the Mortgagor's attention the desirability
of protection of the Mortgaged Property.

     (e) All policies required hereunder shall name the Servicer as loss payee
and shall be endorsed with standard mortgagee clauses, without contribution,
which shall provide for at least 30 days prior written notice of any
cancellation, reduction in amount or material change in coverage.

     (f) The Servicer shall not interfere with the Mortgagor's freedom of choice
in selecting either an insurance carrier or agent; provided, however, that the
Servicer shall not accept any such insurance policies from insurance companies
unless such companies are acceptable under Accepted Servicing Practices and are
licensed to do business in the jurisdiction in which the Mortgaged Property is
located. The Servicer shall determine that such policies provide sufficient risk
coverage and amounts, that they insure the property owner, and that they
properly describe the property address. The Servicer shall furnish to the
Mortgagor a formal notice of expiration of any such insurance in sufficient time
for the Mortgagor to arrange for renewal coverage by the expiration date.

     (g) Pursuant to Section 4.5, any amounts collected by the Servicer under
any such policies (other than amounts to be deposited in the Escrow Account and
applied to the restoration or repair of the related Mortgaged Property, or
property acquired in liquidation of the Mortgage Loan, or to be released to the
Mortgagor, in accordance with the Servicer's normal servicing procedures as
specified in Section 4.14) shall be deposited in the Custodial Account, subject
to withdrawal pursuant to Section 4.6.

     SECTION 4.12 Blanket Mortgage Hazard Insurance.

     In the event that the Servicer shall obtain and maintain a blanket policy
insuring against losses arising from fire and hazards covered under extended
coverage on all of the Mortgage Loans, then, to the extent such policy (a) names
the Servicer or the Issuing Entity as loss payee, (b) provides coverage in an
amount equal to the amount required pursuant to Section 4.11 without coinsurance
and (c) otherwise complies with Accepted Servicing Practices and all other
requirements of Section 4.11, it shall conclusively be deemed to have satisfied
its obligations as set forth in Section 4.11. The Servicer shall prepare and
make any claims on the blanket policy as deemed necessary by the Servicer in
accordance with prudent servicing practices. Any amounts collected by the
Servicer under any such policy relating to a Mortgage Loan shall be deposited in
the Custodial Account subject to withdrawal pursuant to Section 4.6. Such policy
may contain a deductible clause, in which case, in the event that there shall
not have been maintained on the related Mortgaged Property a policy complying
with Section 4.11, and there shall have been a loss which would have been
covered by such policy, the Servicer shall deposit in the Custodial Account at
the time of such loss the amount not otherwise payable under the blanket policy
because of such deductible clause, such amount to be deposited from the
Servicer's funds, without reimbursement therefor. Upon request of the Master
Servicer or the Indenture Trustee, the Servicer shall cause to be delivered to
the Master Servicer or the Indenture Trustee, as the case may be, a certified
true copy of any such policy.

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     SECTION 4.13 Fidelity Bond and Errors and Omissions Insurance.

     The Servicer shall maintain with responsible companies, at its own expense,
a blanket Fidelity Bond and an Errors and Omissions Insurance Policy, with broad
coverage on all officers, employees and other Persons acting in any capacity
requiring such persons to handle funds, money, documents or papers relating to
the Mortgage Loans. Any such Fidelity Bond and Errors and Omissions Insurance
Policy shall be in the form of the Mortgage Banker's Blanket Bond and shall
protect and insure the Servicer against losses, including forgery, theft,
embezzlement, fraud, errors and omissions and negligent acts of such persons.
Such Fidelity Bond and Errors and Omissions Insurance Policy also shall protect
and insure the Servicer against losses in connection with the release or
satisfaction of a Mortgage Loan without having obtained payment in full of the
indebtedness secured thereby. No provision of this Section 4.13 requiring such
Fidelity Bond and Errors and Omissions Insurance Policy shall diminish or
relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such Fidelity Bond and Errors and
Omissions Insurance Policy shall be at least equal to the amounts acceptable to
Fannie Mae and Freddie Mac. Upon the request of the Master Servicer or the
Indenture Trustee, the Servicer shall cause to be delivered to the Master
Servicer or the Indenture Trustee, as the case may be, a certificate of
insurance for such Fidelity Bond and Errors and Omissions Insurance Policy.

     SECTION 4.14 Restoration of Mortgaged Property.

     The Servicer need not obtain the approval of the Master Servicer or the
Indenture Trustee prior to releasing any Insurance Proceeds or Condemnation
Proceeds to any Mortgagor to be applied to the restoration or repair of any
Mortgaged Property if such release is in accordance with Accepted Servicing
Practices. For claims greater than $15,000, at a minimum the Servicer shall
comply with the following conditions in connection with any such release of
Insurance Proceeds or Condemnation Proceeds:

     (a) the Servicer shall receive satisfactory independent verification of
completion of repairs and issuance of any required approvals with respect
thereto;

     (b) the Servicer shall take all steps necessary to preserve the priority of
the lien of the Mortgage, including, but not limited to requiring waivers with
respect to mechanics' and materialmen's liens;

     (c) the Servicer shall verify that the Mortgage Loan is not in default; and

     (d) pending repairs or restoration, the Servicer shall place the Insurance
Proceeds or Condemnation Proceeds in the Escrow Account.

     If the Issuing Entity is named as an additional loss payee, the Servicer is
hereby empowered to endorse any loss draft issued in respect of such a claim in
the name of the Issuing Entity.

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     SECTION 4.15 Title, Management and Disposition of REO Property.

     (a) In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the Issuing Entity, or in the event the Issuing
Entity is not authorized or permitted to hold title to real property in the
state where the REO Property is located, or would be adversely affected under
the "doing business" or tax laws of such state by so holding title, the deed or
certificate of sale shall be taken in the name of such Person or Persons as
shall be consistent with an Opinion of Counsel obtained by the Servicer from any
attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the Issuing Entity
shall acknowledge in writing that such title is being held as nominee for the
Issuing Entity.

     (b) The Servicer shall manage, conserve, protect and operate each REO
Property for the Issuing Entity solely for the purpose of its prompt disposition
and sale. The Servicer, either itself or through an agent selected by the
Servicer, shall manage, conserve, protect and operate the REO Property
consistent with Accepted Servicing Practices. The Servicer shall attempt to sell
the same (and may temporarily rent the same for a period not greater than one
year, except as otherwise provided below) on such terms and conditions as the
Servicer deems to be in the best interest of the Issuing Entity.

     (c) The Servicer shall use its commercially reasonable best efforts to
dispose of the REO Property as soon as possible and shall sell such REO Property
in any event within two years after title has been taken to such REO Property,
unless the Servicer determines, and gives an appropriate notice to the Master
Servicer to such effect, that a longer period is necessary for the orderly
liquidation of such REO Property. If a period longer than one year is permitted
under the foregoing sentence and is necessary to sell any REO Property, (x) the
Servicer shall report monthly to the Master Servicer and the Indenture Trustee
as to the progress being made in selling such REO Property and (y) if a purchase
money mortgage is taken in connection with such sale, such purchase money
mortgage shall name the Servicer as mortgagee.

     (d) The Servicer shall also maintain on each REO Property fire and hazard
insurance with extended coverage in amount which is at least equal to the
maximum insurable value of the improvements which are a part of such property,
liability insurance and, to the extent required and available under the Flood
Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.

     (e) The disposition of REO Property shall be carried out by the Servicer at
such price, and upon such terms and conditions, as the Servicer deems to be in
the best interests of the Issuing Entity. The proceeds of sale of the REO
Property ("REO DISPOSITION PROCEEDS") shall be promptly deposited in the
Custodial Account. As soon as practical thereafter the expenses of such sale
shall be paid and the Servicer shall reimburse itself for any related
unreimbursed Servicing Advances, unpaid Servicing Fees and unreimbursed Monthly
Advances. On the Servicer Remittance Date immediately following the Prepayment
Period in which such sale proceeds are received, the net cash proceeds of such
sale remaining in the Custodial Account shall be remitted to the Securities
Administrator.

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     (f) The Servicer shall withdraw from the Custodial Account funds necessary
for the proper operation management and maintenance of the REO Property,
including the cost of maintaining any hazard insurance pursuant to Section 4.11.
The Servicer shall make monthly remittances on each Servicer Remittance Date to
the Securities Administrator of the net cash flow from the REO Property (which
shall equal the revenues from such REO Property net of the expenses described in
this Section 4.15 and of any reserves reasonably required from time to time to
be maintained to satisfy anticipated liabilities for such expenses).

     SECTION 4.16 Mortgage Loan Reports; Real Estate Owned Reports.

     (a) Not later than the tenth calendar day (or if such day is not a Business
Day, the succeeding Business Day) of each month, the Servicer shall furnish to
the Depositor, the Master Servicer and the Securities Administrator (i) a
monthly remittance advice in the format agreed upon by the Servicer and the
Master Servicer and a monthly defaulted loan report with the reporting criteria
set forth in Exhibit E (or in such other format mutually agreed to among the
Servicer, the Master Servicer and the Securities Administrator) in respect of
the prior Due Period and related Prepayment Period, and information on realized
losses and gains in the form attached as Exhibit D (or other format agreed to by
the Master Servicer and the Servicer), (ii) all such information required above
on a magnetic tape or other similar media reasonably acceptable to the
Depositor, the Master Servicer and the Securities Administrator, and with
supporting documentation with respect to the report on Exhibit D, and (iii) such
other information with respect to the Mortgage Loans (to the extent such
information is available on the systems of the Servicer) as the Securities
Administrator may reasonably require to perform its obligations under the Owner
Trust Agreement. In addition, by no later than the third Business Day following
the end of each Prepayment Period, the Servicer shall furnish to the Master
Servicer, the Securities Administrator, and the Depositor a monthly remittance
advice, in form and substance satisfactory to them, with respect to all
Principal Prepayments in full received during the related Prepayment Period.

     (b) The Servicer, upon written request of the Depositor or its agent, shall
on an ongoing basis from information obtained through its servicing of the
Mortgage Loans, provide the Depositor with any information necessary to enable
the Depositor to perform its obligations in connection with any United States
federal, state or local income tax return required to be filed on behalf of the
Issuing Entity by the Depositor. Without limiting the foregoing, the Servicer
shall, following the foreclosure sale or abandonment of any Mortgaged Property,
report such foreclosure or abandonment as required pursuant to Section 6050J of
the Code. The Servicer shall file information reports with respect to the
receipt of mortgage interest received in a trade or business and information
returns relating to cancellation of indebtedness income with respect to any
Mortgaged Property as required by the Code. Such reports shall be in form and
substance sufficient to meet the reporting requirements imposed by the Code.

     (c) The Servicer shall furnish to the Master Servicer on or before the
Servicer Remittance Date each month a statement with respect to any REO Property
covering the operation of such REO Property for the previous month and the
Servicer's efforts in connection with the sale of such REO Property and any
rental of such REO Property incidental to the sale thereof for the previous
month. That statement shall be accompanied by such other information as the
Master Servicer shall reasonably request.

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     SECTION 4.17 Adjustable Rate Mortgage Loans.

     (a) With respect to each Mortgage Loan, the Servicer shall adjust the
Mortgage Rate on the related Adjustment Date in compliance with the requirements
of applicable law and the related Mortgage and Mortgage Note. The Servicer shall
execute and deliver any and all necessary notices required under applicable law
and the terms of the related Mortgage Note and Mortgage regarding the Mortgage
Rate adjustments. Upon the discovery by the Servicer or the receipt of notice
from the Master Servicer that the Servicer has failed to adjust a Mortgage Rate
in accordance with the terms of the related Mortgage Note, the Servicer shall
immediately deposit in the Custodial Account from its own funds the amount of
any interest loss or deferral caused thereby.

     (b) In the event that the Index for any Mortgage Loan, as specified in the
related Mortgage Note, becomes unavailable for any reason, the Servicer shall
select an alternative index in accordance with the terms of such Mortgage Note
or, if such Mortgage Note does not make provision for the selection of an
alternative index in such event, the Depositor shall, subject to applicable law,
select an alternative index based on information comparable to that used in
connection with the original Index and, in either case, such alternative index
shall thereafter be the Index for such Mortgage Loan.

     SECTION 4.18 Prepayment Premiums.

     Notwithstanding anything in this Agreement to the contrary, in the event of
a Principal Prepayment in full or in part of a Mortgage Loan, the Seller may not
waive any Prepayment Premium or portion thereof required by the terms of the
related Mortgage Note unless (i) the enforceability thereof shall have been
limited by bankruptcy, insolvency, moratorium, receivership and other similar
laws relating to creditors' rights generally or (ii) the collectability thereof
shall have been limited due to acceleration in connection with a foreclosure or
other involuntary payment, or (iii) in the Seller's reasonable judgment as
described herein, (x) such waiver relates to a default or a reasonably
foreseeable default, (y) such waiver would maximize recovery of total proceeds
taking into account the value of such Prepayment Premium and related Mortgage
Loan and (z) doing so is standard and customary in servicing similar Mortgage
Loans (including any waiver of a Prepayment Premium in connection with a
refinancing of a Mortgage Loan that is related to a default or a reasonably
foreseeable default). In no event will the Servicer waive a Prepayment Premium
in connection with a refinancing of a Mortgage Loan that is not related to a
default or a reasonably foreseeable default. If the Servicer waives or does not
collect all or a portion of Prepayment Premium relating to a Principal
Prepayment in full or in part due to any action or omission of the Servicer,
other than as provided above, the Servicer shall deposit the amount of such
Prepayment Premium (or such portion thereof as had been properly waived) into
the Custodial Account for distribution in accordance with the terms of this
Agreement.

     SECTION 4.19 Credit Reporting; Gramm Leach Bliley Act.

     (a) The Servicer agrees to fully furnish, in accordance with the Fair
Credit Reporting Act and its implementing regulations, accurate and complete
information (e.g., favorable and

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unfavorable) on its mortgagor credit files to Equifax, Experian, and Trans Union
Credit Information Servicer on a monthly basis.

     (b) The Servicer agrees to transmit full-file credit reporting data for
each Mortgage Loan pursuant to Exhibit G. For each Mortgage Loan, the Servicer
shall report one of the following statuses each month: new origination; current;
delinquent (30-, 60-, 90-days, etc.); foreclosed or charged-off.

     (c) The Servicer shall comply with Title V of the Gramm-Leach-Bliley Act of
1999 and all applicable regulations promulgated thereunder, relating to the
Mortgage Loans and the related Mortgagors and shall provide all required notices
thereunder.

     SECTION 4.20 Transfers of Mortgaged Property.

     (a) The Servicer shall use its commercially reasonable best efforts to
enforce any "due-on-sale" provision contained in any Mortgage or Mortgage Note
and to deny assumption by the person to whom the Mortgaged Property has been or
is about to be sold whether by absolute conveyance or by contract of sale, and
whether or not the Mortgagor remains liable on the Mortgage and the Mortgage
Note. When the Mortgaged Property has been conveyed by the Mortgagor, the
Servicer shall, to the extent it has knowledge of such conveyance, exercise its
rights to accelerate the maturity of such Mortgage Loan under the "due-on-sale"
clause applicable thereto; provided, however, that the Servicer shall not
exercise such rights if prohibited by law from doing so.

     (b) If the Servicer reasonably believes it is unable under applicable law
to enforce such "due-on-sale" clause, the Servicer shall enter into (a) an
assumption and modification agreement with the person to whom such property has
been conveyed, pursuant to which such person becomes liable under the Mortgage
Note and the original Mortgagor remains liable thereon or (b) in the event the
Servicer is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note and the Servicer has the prior consent of
the primary mortgage guaranty insurer, if any, a substitution of liability
agreement with the purchaser of the Mortgaged Property pursuant to which the
original Mortgagor is released from liability and the purchaser of the Mortgaged
Property is substituted as Mortgagor and becomes liable under the Mortgage Note.
If an assumption fee is collected by the Servicer for entering into an
assumption agreement the fee will be retained by the Servicer as additional
servicing compensation. In connection with any such assumption, neither the
Mortgage Rate borne by the related Mortgage Note, the term of the Mortgage Loan,
the outstanding principal amount of the Mortgage Loan nor any other material
terms shall be changed unless such change would be consistent with Accepted
Servicing Practices.

     (c) To the extent that any Mortgage Loan is assumable, the Servicer shall
inquire diligently into the credit-worthiness of the proposed transferee, and
shall use the underwriting criteria for approving the credit of the proposed
transferee which are used with respect to underwriting mortgage loans by the
Seller of the same type as the Mortgage Loans. If the credit-worthiness of the
proposed transferee does not meet such underwriting criteria, the Servicer
diligently shall, to the extent permitted by the Mortgage or the Mortgage Note
and by applicable law, accelerate the maturity of the Mortgage Loan.

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     SECTION 4.21 Satisfaction and Release of Mortgage Files.

     (a) Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer shall request the release of any
Mortgage Loan Documents.

     (b) If the Servicer satisfies or releases a Mortgage without first having
obtained payment in full of the indebtedness secured by the Mortgage or should
the Servicer otherwise prejudice any rights the Issuing Entity may have under
the mortgage instruments, the Servicer shall repurchase the related Mortgage
Loan at the Repurchase Price by deposit thereof in the Custodial Account within
two Business Days of receipt of such written demand by the Master Servicer or,
if earlier, the date on which the Servicer has knowledge of such improper
release. The Servicer shall maintain the Fidelity Bond and Errors and Omissions
Insurance Policy as provided for in Section 4.13 insuring the Servicer against
any loss it may sustain with respect to any Mortgage Loan not satisfied in
accordance with the procedures set forth herein.

     (c) Upon (i) becoming aware of the payment in full of any Mortgage Loan or
(ii) the receipt by the Servicer of a notification that payment in full has been
or will be escrowed in a manner customary for such purposes, the Servicer will
promptly notify the Indenture Trustee and Custodian by a certification (which
certification shall include a statement to the effect that all amounts received
in connection with such payment that are required to be deposited in the
Custodial Account maintained by the Servicer pursuant to Section 4.5 have been
or will be so deposited) of a Servicing Officer and shall request the Custodian
to deliver to the Servicer the related Mortgage File. Upon receipt of such
certification and Request for Release, the Custodian shall promptly release the
related Mortgage File to the Servicer, and the Indenture Trustee shall have no
further responsibility with regard to such Mortgage File. Upon any such payment
in full, the Servicer is authorized to give, as agent for the Indenture Trustee,
as the mortgagee under the Mortgage that secured the Mortgage Loan, an
instrument of satisfaction (or assignment of mortgage without recourse)
regarding the Mortgaged Property subject to the Mortgage, which instrument of
satisfaction or assignment, as the case may be, shall be delivered to the Person
or Persons entitled thereto against receipt therefor of such payment, it being
understood and agreed that no expenses incurred in connection with such
instrument of satisfaction or assignment, as the case may be, shall be
chargeable to the Custodial Account. Notwithstanding anything to the contrary
herein, the Indenture Trustee shall in no way be liable or responsible for the
willful malfeasance of the Servicer, or for any wrongful or negligent actions
taken by the Servicer, while the Servicer is acting pursuant to the powers
granted to it in this paragraph.

     (d) From time to time and as appropriate for the servicing or foreclosure
of any Mortgage Loan, the Indenture Trustee shall execute such documents as
shall be prepared and furnished to the Indenture Trustee by the Servicer (in
form reasonably acceptable to the Indenture Trustee) and as are necessary to the
prosecution of any such proceedings. The Indenture Trustee shall, upon request
of the Servicer, as applicable, and delivery to the Indenture Trustee, of a
trust receipt signed by a Servicing Officer, cause the Custodian to release the
related Mortgage File held in its possession or control to the Servicer. Such
trust receipt shall obligate the Servicer to return the Mortgage File to the
Custodian when the need therefor by the Servicer no longer exists unless the
Mortgage Loan shall be liquidated, in which case, upon

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receipt of a certificate of a Servicing Officer similar to that hereinabove
specified, the trust receipt shall be released by the Indenture Trustee to the
Servicer.

     (e) The Indenture Trustee shall furnish the Servicer, upon request, with
any powers of attorney (which are acceptable to the Indenture Trustee)
empowering the Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Mortgage Loans or the Mortgaged Property, in
accordance with this Agreement, and the Indenture Trustee shall execute and
deliver such other documents as the Servicer may request, necessary or
appropriate to enable the Servicer to service the Mortgage Loans and carry out
its duties hereunder, in each case in accordance with Accepted Servicing
Practices (and the Indenture Trustee shall have no liability for misuse of any
such powers of attorney by the Servicer).

     (f) In no event shall the Servicer, without the Indenture Trustee's written
consent, (i) initiate any action, suit or proceeding solely under the Indenture
Trustee's name without indicating the Servicer's representative capacity or (ii)
take any action with the intent to cause, and which actually does cause, the
Indenture Trustee to be registered to do business in any state. The Servicer
shall indemnify the Indenture Trustee for any and all costs, liabilities and
expenses incurred by the Indenture Trustee in connection with the negligent or
willful misuse of such powers of attorney by the Servicer. In the performance of
its duties hereunder, the Servicer shall be an independent contractor and shall
not, except in those instances where it is taking action in the name of the
Indenture Trustee, be deemed to be the agent of the Indenture Trustee.

     SECTION 4.22 Superior Liens.

     (a) With respect to each Mortgage Loan secured by a second lien, if any,
the Servicer shall, for the protection of the Issuing Entity's interest, file
(or cause to be filed) of record a request for notice of any action by a
superior lienholder where permitted by local law and whenever applicable state
law does not require that a junior lienholder be named as a party defendant in
foreclosure proceedings in order to foreclose such junior lienholder's equity of
redemption. The Servicer shall also notify any superior lienholder in writing of
the existence of the Mortgage Loan and request notification of any action (as
described below) to be taken against the Mortgagor or the Mortgaged Property by
the superior lienholder.

     (b) If the Servicer is notified that any superior lienholder has
accelerated or intends to accelerate the obligations secured by the superior
lien, or has declared or intends to declare a default under the superior
mortgage or the promissory note secured thereby, or has filed or intends to file
an election to have the Mortgaged Property sold or foreclosed, the Servicer
shall take whatever actions are necessary to protect the interests of the
Issuing Entity, and/or to preserve the security of the related Mortgage Loan.
The Servicer shall make a Servicing Advance of the funds necessary to cure the
default or reinstate the superior lien if the Servicer determines that such
Servicing Advance is in the best interests of the Issuing Entity and is not a
Nonrecoverable Advance. The Servicer shall not make such a Servicing Advance
except to the extent that it determines in its reasonable good faith judgment
that such advance will be recoverable from Liquidation Proceeds on the related
Mortgage Loan. The Servicer shall thereafter take such action as is necessary to
recover the amount so advanced.

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     SECTION 4.23 Servicer Compensation.

     (a) As compensation for its services hereunder, the Servicer shall be
entitled to withdraw from the Custodial Account the amount of its Servicing Fee
to the extent deposited therein on or before the Servicer Remittance Date. The
Servicing Fee shall be payable monthly. The obligation of the Issuing Entity to
pay the Servicing Fee is limited to, and payable solely from, the interest
portion of such Scheduled Monthly Payments with respect to the related Mortgage
Loan, or as otherwise provided in Section 4.6. Notwithstanding the foregoing,
with respect to the payment of the Servicing Fee for any month, the aggregate
Servicing Fee shall be reduced (but not below zero) by an amount equal to the
Compensating Interest Payment for the related Payment Date.

     (b) Additional servicing compensation in the form of Prepayment Interest
Excess, assumption fees, late payment charges and other ancillary income (other
than Prepayment Premiums) shall be retained by the Servicer to the extent not
required to be deposited in the Custodial Account. The Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder and shall not be entitled to reimbursement thereof except
as specifically provided for herein.

     SECTION 4.24 Servicer Remittances.

     (a) On each Servicer Remittance Date, the Servicer shall remit to the
Securities Administrator the sum of the following (the "SERVICER REMITTANCE
AMOUNT"):

          (i) all amounts deposited in the Custodial Account as of the close of
     business on the Determination Date (net of charges against or withdrawals
     from the Custodial Account pursuant to Section 4.6); plus

          (ii) the aggregate of all Monthly Advances, if any, that the Servicer
     is obligated to advance on or before the Servicer Remittance Date pursuant
     to Section 4.5 with respect to the related Due Period; minus

          (iii) any amounts attributable to Principal Prepayments received
     during the applicable Prepayment Period, together with any additional
     interest required to be deposited in the Custodial Account in connection
     with such Principal Prepayment in accordance with Section 4.5; and minus

          (iv) any amounts attributable to Scheduled Monthly Payments collected
     but due on a Due Date or Dates subsequent to the first day of the month in
     which such Servicer Remittance Date occurs, which amounts shall be remitted
     on the Servicer Remittance Date next succeeding the Due Period for such
     amounts.

     (b) On each Servicer Remittance Date, no later than 4:00 P.M., ET, the
Servicer shall remit the Servicer Remittance Amount by wire transfer of
immediately available funds to the Securities Administrator. All remittances
required to be made to the Securities Administrator shall be made to the
following wire account or to such other account as may be specified by the
Securities Administrator from time to time:

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[ - ]
ABA#:                    [ - ]
Account Name:            [ - ]
Account Number:          [ - ]
For further credit to:   FNLC 200_-_, Account # __________

     (c) With respect to any remittance received by the Securities Administrator
after the Servicer Remittance Date on which such remittance was due, the
Servicer shall pay to the Securities Administrator interest on any such late
remittance at an annual rate equal to the Prime Rate, adjusted as of the date of
each change, plus three percentage points, but in no event greater than the
maximum amount permitted by applicable law, from the date such remittance was
due until the date paid, both inclusive. The payment by the Servicer of any such
interest shall not be deemed an extension of time for payment or a waiver of any
Servicer Event of Default by the Servicer.

                                    ARTICLE V

                                     REPORTS

     SECTION 5.1 Assessment of Compliance and Attestation Reports.

     Each Responsible Party shall provide to the Securities Administrator and to
the Depositor, no later than March 1 of each year, commencing ______, an
assessment of compliance with servicing criteria ("ASSESSMENT OF COMPLIANCE")
and related attestation report ("ATTESTATION REPORT") as of and for the period
ending on December 31 of the preceding calendar year, which Assessment of
Compliance and Attestation Report shall relate to each of the servicing criteria
identified on Exhibit 1122 hereto as the responsibility of such Responsible
Party and shall comply with the provisions of Item 1122 of Regulation AB. Each
Assessment of Compliance provided by a Responsible Party shall include (a) a
statement of such party's responsibility for assessing compliance with the
servicing criteria applicable to such party, (b) a statement that such party
used the criteria identified in Item 1122(d) of Regulation AB to assess
compliance with the applicable servicing criteria, (c) disclosure of any
material instance of noncompliance identified by such party, and (d) a statement
that a registered public accounting firm has issued an Attestation Report on
such party's Assessment of Compliance with the applicable servicing criteria.

     SECTION 5.2 Annual Compliance Statement.

     Each Responsible Party shall furnish to the Securities Administrator and
the Depositor no later than March 1 of each year, commencing ____, an annual
compliance statement ("COMPLIANCE STATEMENT") signed by a Responsible Officer of
such party to the effect that (a) a review of such party's activities during the
reporting period and the party's performance under this Agreement have been made
under such officer's supervision and (b) to the best of such officer's
knowledge, based on such review, such Responsible Party has fulfilled all of its
obligations under this Agreement in all material respect throughout the
reporting period or, if there has been a failure to fulfill any such obligation
in any material respect, specifying each such failure and the nature and status
thereof.

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     SECTION 5.3 Back-Up SOX Certification.

     Each Responsible Party shall deliver to the Securities Administrator and
the Depositor no later than March 1 of each year, commencing ____, in which the
Issuing Entity is required to file an execute an Annual Report on Form 10-K, a
certification (a "BACK-UP SOX CERTIFICATION"), signed by a Responsible Officer
of such party, in the form of Exhibit SOX attached hereto.

     SECTION 5.4 Commission Reporting.

     (a) The Master Servicer shall, in accordance with industry standards,
prepare and file with the Commission via EDGAR, the following reports in respect
of the Issuing Entity as and to the extent required under the Exchange Act, each
of which reports shall be signed by the [Master Servicer].

          (i) Distribution Report on Form 10-D. Within 15 days following each
     Payment Date (or such later date as may be permissible due to an extension
     of the filing deadline), the Securities Administrator will prepare and file
     a "Distribution Report" on Form 10-D with respect to the Issuing Entity,
     which Distribution Report shall include a copy of the Payment Date
     Statement prepared by the Securities Administrator in respect of the
     related Payment Date detailing all data elements specified in Item 1121(a)
     of Regulation AB other than those data elements specified in Item
     1121(a)(11), (12) and (14); provided, that, the Securities Administrator
     shall have received from the Depositor (and the Servicer with respect to
     Item 1), no later than ten days prior to the date such Distribution Report
     on Form 10-D is required to be filed, the following additional information,
     data, and materials required to be included in the Distribution Report on
     Form 10-D for such Payment Date:

               (A) Item 1 - Distribution and Pool Performance Information (each
               of the data elements specified in Item 1121(a)(11), (12) and (14)
               of Regulation AB);

               (B) Item 2 - Legal Proceedings (information required by Item 1117
               of Regulation AB);

               (C) Item 3 - Sale of Securities and Use of Proceeds (information
               required by Item 2 of Part II of Form 10-Q);

               (D) Item 4 - Defaults Upon Senior Securities (information
               required by Item 3 of Part II of Form 10-Q);

               (E) Item 5 - Submission of Matters to a Vote of Security Holders
               (information required by Item 4 of Part II of Form 10-Q);

               (F) Item 6 - Significant Obligors of Pool Assets (information
               required by Item 1112(b) of Regulation AB);

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               (G) Item 7 - Significant Enhancement Provider Information
               (information required by Items 1114(b)(2) and 1115(b) of
               Regulation AB);

               (H) Item 8 - Other Information (all other information required to
               be disclosed on Form 8-K during the period covered by the report
               and not yet reported); and

               (I) Item 9 - Exhibits (all exhibits required to be filed by Form
               10-D and Item 601 of Regulation S-K other than the Payment Date
               Statement to be provided by the Securities Administrator).

          (ii) Annual Report on Form 10-K. The Securities Administrator will
     prepare and file an Annual Report on Form 10-K in respect of the Issuing
     Entity, provided, that the Securities Administrator shall have received
     from the Depositor and other transaction parties, no later than March 1 of
     each calendar year prior to the filing deadline for such Annual Report, all
     information, data and exhibits required to be provided or filed with such
     Annual Report including information, data, and exhibits required to be
     provided in connection with the following Items and other filing
     requirements of Form 10-K:

               (A) Item 9B - Other Information (information required to be
               reported on Form 8-K in the fourth quarter but not reported);

               (B) Item 15 - Exhibits and Financial Statement Schedules
               (including all exhibits required to be filed pursuant to Item 601
               of Regulation S-K under the Exchange Act other than [the
               certification specified in Item 601(b)(31)(ii) of Regulation S-K
               and] the Assessment of Compliance, Attestation Report and
               Compliance Statement specified in Item 601(b)(33), (34) and (35)
               of Regulation S-K with respect to those Servicing Criteria as to
               which the Securities Administrator is the Responsible Party);

               (C) Significant Obligor Financial Information (Item 1112(b) of
               Regulation AB);

               (D) Significant Enhancement Provider Financial Information (Items
               1114(b)(2) and 1115(b) of Regulation AB);

               (E) Legal Proceedings (Item 1117 of Regulation AB);

               (F) Affiliations and Certain Relationships and Related
               Transactions (Item 1119 of Regulation AB); and

               (G) Compliance with Applicable Servicing Criteria (Item 1122 of
               Regulation AB).

          (iii) Current Reports on Form 8-K. The Securities Administrator will
     prepare and file Current Reports on Form 8-K in respect of the Issuing
     Entity at the direction of

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     the [Depositor] and at the expense of the Trust Fund, provided, that the
     Depositor shall have timely notified the Securities Administrator of an
     item reportable on a Current Report on Form 8-K and shall have delivered to
     the Securities Administrator no later than two Business Days prior to the
     filing deadline for such Current Report, all information, data and exhibits
     required to be provided or filed with such Current Report, including,
     particularly, information, data and exhibits required to be provided in
     connection with the following Items of Form 8-K[, but only to the extent
     that a Responsible Officer of the Securities Administrator does not
     otherwise have actual knowledge of same in its capacity as Securities
     Administrator hereunder]:

               (A) Item 1.01 - Entry into a Material Definitive Agreement;

               (B) Item 1.02 - Termination of a Material Definitive Agreement;

               (C) Item 1.03 - Bankruptcy or Receivership;

               (D) Item 2.04 - Triggering Events that Accelerate or Increase a
               Direct Financial Obligation or an Obligation under an Off-Balance
               Sheet Arrangement;

               (E) Item 3.03 - Material Modification to Rights of Security
               Holders;

               (F) Item 5.03 - Amendments of Articles of Incorporation or
               Bylaws; Change of Fiscal Year;

               (G) Item 6.02 - Change in Servicer, Owner Trustee or Indenture
               Trustee;

               (H) Item 6.03 - Change in Credit Enhancement or Other External
               Support;

               (I) Item 6.04 - Failure to Make a Required Distribution; and

               (J) Item 6.05 - Securities Act Updating Disclosure.

          (iv) Form 15. As and when permitted under the provisions of Exchange
     Act, the Securities Administrator will prepare and file, on behalf of the
     Issuing Entity, a Form 15 to suspend the Issuing Entity's reporting
     obligations under the Exchange Act.

     (b) All information, data, and materials required to be provided by any
Responsible Party to the Securities Administrator for incorporation in any
report to be filed with the Commission shall be provided in a format compatible
with Commission filing requirements, including, as appropriate, EDGAR filing
guidelines. The Depositor acknowledges and agrees that the Securities
Administrator may include in any Exchange Act report all relevant information,
data and exhibits as the Securities Administrator may receive in connection with
such report irrespective of any provision that may permit the exclusion of such
material. For example, the Securities Administrator may file all Assessments of
Compliance, Attestation Reports and Compliance Statements timely received from
any Responsible Party irrespective of

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any applicable minimum pool asset percentage requirement for disclosure related
to such Responsible Party.

     (c) The Depositor agrees to furnish promptly to the Securities
Administrator from time to time upon request such additional information, data,
reports, documents and financial statements within the Depositor's possession or
control as the Securities Administrator reasonably requests as necessary or
appropriate to prepare and file the foregoing reports. The Securities
Administrator shall make available to the Depositor copies of all Exchange Act
reports filed hereunder.

     (d) Notwithstanding Section 5.4(a)(ii) above, in the event that the
Securities Administrator has not timely received all information, data, and
exhibits as are required to prepare and file any required Exchange Act report,
the Depositor nevertheless hereby directs the Securities Administrator to file
such Exchange Act report based on the information that the Securities
Administrator has timely received and without such additional required
information, data or exhibits not timely received. Upon subsequent delivery to
the Securities Administrator of all information, data, and exhibits required to
complete such Exchange Act report and upon direction of the Depositor, the
Securities Administrator will prepare and file an amendment to the prior
Exchange Act report filing to include such additional information. The Depositor
shall be responsible for all costs and expenses of the Securities Administrator
related to the preparation and filing of any such amendment.

     (e) Other than the Exchange Act reports specified above, the Securities
Administrator shall have no responsibility to file any items or reports with the
Commission under the Exchange Act or otherwise; provided, however, the
Securities Administrator will cooperate with the Depositor in connection with
any additional filings with respect to the Issuing Entity as the Depositor deems
necessary under the Exchange Act.

     (f) The Trust Fund shall pay all costs and expenses of the Securities
Administrator related to the preparation and filing of any Current Report on
Form 8-K, any Distribution Report on Form 10-D (other than the costs and expense
of the Securities Administrator associated with the preparation and filing of
the Payment Date Report) or any amendment to any Exchange Act report.

     SECTION 5.5 Payment Date Report.

     (a) On each Payment Date, the Securities Administrator shall make available
to the other parties hereto a report containing information with respect to such
Payment Date (each, a "PAYMENT DATE REPORT"), including the following items (on
the basis of information provided with respect to the Mortgage Loans on the
Servicer Report):

          (i) the Current Interest of each class of Offered Notes and the
     calculation thereof, and the amount of any Deferred Interest with respect
     to any Class M Notes;

          (ii) the amount, if any, of Basis Risk Shortfall and Deferred Interest
     Basis Risk Shortfalls, for such Payment Date, and the aggregate amount
     thereof;

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          (iii) the interest accrued on the Class N Notes during the related
     Interest Accrual Period and the Interest Payment Amount;

          (iv) the Note Interest Rate applicable to such Payment Date with
     respect to each class of Notes;

          (v) the Interest Proceeds;

          (vi) the Principal Proceeds, including Liquidation Proceeds and
     Insurance Proceeds, stating separately the amount attributable to Scheduled
     Monthly Payments of principal and unscheduled payments in the nature of
     principal;

          (vii) the Principal Payment Amount of each Class of Notes, including
     the Class N Principal Payment Amount.

          (viii) the Class Principal Amount of each class of Notes, to the
     extent applicable, as of such Payment Date after giving effect to payments
     allocated to principal reported under subclause (vii) above and the Class
     Impairment Amount, if any, of each class of Class M Notes;

          (ix) the amount, if any, of any payment to the Certificateholder;

          (x) the amount of any Realized Losses incurred with respect to the
     Mortgage Loans (x) in the applicable Prepayment Period and (y) in the
     aggregate since the Cut-off Date;

          (xi) the amount of the Servicing Fees and Master Servicing Fees paid
     during the Due Period to which such Payment Date relates;

          (xii) the number and aggregate Scheduled Principal Balance of Mortgage
     Loans, as reported to the Master Servicer and the Securities Administrator
     by the Servicer:

               (A) remaining outstanding,

               (B) delinquent 30 to 59 days on a contractual basis,

               (C) delinquent 60 to 89 days on a contractual basis,

               (D) delinquent 90 or more days on a contractual basis,

               (E) as to which foreclosure proceedings have been commenced as of
               the close of business on the last Business Day of the calendar
               month immediately preceding the month in which such Payment Date
               occurs,

               (F) in bankruptcy, and

               (G) that are REO Properties;

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          (xiii) the aggregate Scheduled Principal Balance of any Mortgage Loans
     with respect to which the related Mortgaged Property became an REO Property
     as of the close of business on the last Business Day of the calendar month
     immediately preceding the month in which such Payment Date occurs;

          (xiv) with respect to substitution of Mortgage Loans in the preceding
     calendar month, the Scheduled Principal Balance of each Deleted Mortgage
     Loan and of each Qualified Substitute Mortgage Loan;

          (xv) the aggregate amount of any Monthly Advances made by or on behalf
     of the Servicer (or the Master Servicer) solely to the extent reported to
     the Securities Administrator by the Master Servicer; and

          (xvi) LIBOR with respect to such Payment Date and the following
     Interest Accrual Period.

     (b) The Securities Administrator will make such report and additional loan
level information (and, at its option, any additional files containing the same
information in an alternative format) available each month to the Rating
Agencies, the Indenture Trustee, the Noteholders, the Certificateholder, the
Depositor, and the Cap Provider via the Securities Administrator's website. The
Securities Administrator's website can be accessed at _________. Assistance in
using the website can be obtained by calling the Securities Administrator's
customer service desk at __________. Such parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail by
notifying the Securities Administrator at the address set forth herein, and
indicating such. The Securities Administrator shall have the right to change the
way such statements are distributed in order to make such distribution more
convenient and/or more accessible to the above parties and the Securities
Administrator shall provide timely and adequate notification to all above
parties regarding any such changes.

     (c) The foregoing information and reports shall be prepared and determined
by the Securities Administrator based solely on Mortgage Loan data provided to
the Master Servicer and the Securities Administrator by the Servicer pursuant to
Section 4.16. In preparing or furnishing the foregoing information, the
Securities Administrator shall be entitled to rely conclusively on the accuracy
of the information or data regarding the Mortgage Loans and the related REO
Property that have been provided to the Master Servicer and the Securities
Administrator by the Servicer, and neither the Securities Administrator nor the
Master Servicer shall be obligated to verify, recompute, reconcile or
recalculate any such information or data.

     (d) Upon the reasonable advance written request of any Noteholder that is a
savings and loan, bank or insurance company, which request, if received by the
Indenture Trustee shall be forwarded promptly to the Securities Administrator,
the Securities Administrator shall provide, or cause to be provided (or, to the
extent that such information or documentation is not required to be provided by
the Servicer, shall use reasonable efforts to obtain such information and
documentation from the Servicer, and provide), to such Noteholder such reports
and access to information and documentation regarding the Mortgage Loans as such
Noteholder may reasonably deem necessary to comply with applicable regulations
of the Office of Thrift Supervision or its successor or other regulatory
authorities with respect to an investment in the

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Notes; provided, however, that the Securities Administrator shall be entitled to
be reimbursed by such Noteholder for actual expenses incurred in providing such
reports and access.

     (e) Within 90 days, or such shorter period as may be required by statute or
regulation, after the end of each calendar year, upon written request, the
Securities Administrator shall have prepared and shall make available to each
Person who at any time during the calendar year was a Noteholder of record, and
make available to such Noteholders, to the extent required by and in accordance
with applicable regulations, a report summarizing the items provided to the
Noteholders pursuant to Section 5.5(a) above on an annual basis as may be
required to enable such Noteholders to prepare their federal income tax returns;
provided, however, that this Section 5.5(e) shall not be applicable where
relevant reports or summaries are required elsewhere in this Agreement. Such
information shall include the amount of original issue discount accrued on each
class of Notes and information regarding the expenses of the Issuing Entity. The
Securities Administrator shall be deemed to have satisfied such requirement if
it forwards such information in any other format permitted by the Code.

     (f) The Securities Administrator shall furnish any other information that
is required by the Code and regulations thereunder to be made available to the
Noteholders and the Certificateholder.

     SECTION 5.6 Subservicers and Subcontractors.

     (a) The Servicer shall:

          (i) cause each Subservicer, and each Subcontractor determined by the
     Company pursuant to Section 4.2(b) to be "participating in the servicing
     function" within the meaning of Item 1122 of Regulation AB, to deliver to
     the Master Servicer and the Depositor an Assessment of Compliance and
     Attestation Report as and when required pursuant to Section 5.1.

          (ii) deliver, and cause each Subservicer and each Subcontractor
     described in clause (i) to provide, to the Depositor, the Master Servicer
     and any other Person that will be responsible for signing the Back-Up SOX
     Certification on behalf of an asset-backed issuer with respect to this
     transaction a certification, signed by the appropriate officer of the
     Company, in the form attached hereto as Exhibit SOX.

     (b) The Servicer acknowledges that the parties identified in clause (a)(ii)
above may rely on the certification provided by the Servicer pursuant to such
clause in signing a Back-Up SOX Certification and filing such with the
Commission.

     (c) Each Assessment of Compliance provided by a Subservicer pursuant to
Section 5.1 shall address each of the Servicing Criteria specified on a
certification substantially in the form of Exhibit 1122 hereto delivered to the
Depositor concurrently with the execution of this Agreement or, in the case of a
Subservicer subsequently appointed as such, on or prior to the date of such
appointment. An Assessment of Compliance provided by a Subcontractor pursuant to
Section 5.1 need not address any elements of the Servicing Criteria other than
those specified by the Servicer pursuant to Section 4.2(b).

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     SECTION 5.7 Additional Information.

     Any party that signs any Exchange Act report that the Securities
Administrator is required to file shall provide to the Securities Administrator
prompt notice of the execution of such Exchange Act report along with the name
and contact information for the person signing such report and shall promptly
deliver to the Securities Administrator the original executed signature page for
such report. In addition, each of the parties agrees to provide to the
Securities Administrator such additional information related to such party as
the Securities Administrator may reasonably request, including evidence of the
authorization of the person signing any certification or statement, financial
information and reports, and such other information related to such party or its
performance hereunder.

     SECTION 5.8 Intention of the Parties and Interpretation.

     Each of the parties acknowledges and agrees that the purpose of the
foregoing provisions of this Article V is to facilitate compliance by the
Securities Administrator and the Depositor with the provisions of Regulation AB,
as such may be amended from time to time and subject to clarification and
interpretive advice as may be issued by the staff of the Commission from time to
time. Therefore, each of the parties agrees that (a) the obligations of the
parties hereunder shall be interpreted in such a manner as to accomplish that
purpose, (b) the parties' obligations hereunder will be supplemented and
modified as necessary to be consistent with any such amendments, interpretive
advice or guidance, convention or consensus among active participants in the
asset-backed securities markets, advice of counsel, or otherwise in respect of
the requirements of Regulation AB, (c) the parties shall comply with requests
made by the Securities Administrator or the Depositor for delivery of additional
or different information as the Securities Administrator or the Depositor may
determine in good faith is necessary to comply with the provisions of Regulation
AB, and (d) no amendment of this Agreement shall be required to effect any such
changes in the parties' obligations as are necessary to accommodate evolving
interpretations of the provisions of Regulation AB.

     SECTION 5.9 Indemnification.

     Each Responsible Party hereby agrees to indemnify and hold harmless the
Securities Administrator and each of its directors, officers, employees, agents,
and affiliates from and against any and all claims, losses, damages, penalties,
fines, forfeitures, reasonable legal fees and related costs, judgments and other
costs and expenses arising out of or based upon (a) any breach by such
Responsible Party of any if its obligations under this Article V, including
particularly its obligations to provide any Assessment of Compliance,
Attestation Report, Compliance Statement or any information, data or materials
required to be included in any Exchange Act report, (b) any misstatement or
omission in any information, data or materials provided by such Responsible
Party, or (c) the negligence, bad faith or willful misconduct of such
Responsible Party in connection with its performance hereunder. If the
indemnification provided for herein is unavailable or insufficient to hold
harmless the Securities Administrator, then each Responsible Party agrees that
it shall contribute to the amount paid or payable by the Securities
Administrator as a result of any claims, losses, damages or liabilities incurred
by the Securities Administrator in such proportion as is appropriate to reflect
the relative fault of the Securities Administrator on

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the one hand and such Responsible Party on the other. This indemnification shall
survive the termination of this Agreement or the termination of any party to
this Agreement.

                                   ARTICLE VI

                                  THE SERVICER

     SECTION 6.1 Limitation on Resignation and Assignment by Servicer.

     (a) The Servicer shall not assign this Agreement or the servicing hereunder
or delegate its rights or duties hereunder or any portion hereof or sell or
otherwise dispose of all of its property or assets without the prior written
consent of the Master Servicer.

     (b) The Servicer shall not resign from the obligations and duties hereby
imposed on it except (i) with the consent of the Master Servicer and the
Depositor or (ii) upon the determination that its duties hereunder are no longer
permissible under applicable law and such incapacity cannot be cured by the
Servicer. Any such determination permitting the resignation of the Servicer
shall be evidenced by an Opinion of Counsel to such effect delivered to the
Master Servicer, the Depositor and the Indenture Trustee, which Opinion of
Counsel shall be in form and substance acceptable to the Master Servicer and the
Indenture Trustee. No such resignation shall become effective until a successor
acceptable to the Depositor and the Master Servicer shall have assumed the
Servicer's responsibilities and obligations.

     SECTION 6.2 Examination Rights; Additional Information.

     (a) The Master Servicer, the Indenture Trustee, the Depositor, and the
Securities Administrator, or their respective designees, shall have the right to
examine and audit any and all of the related books, records, facilities or other
information of the Servicer, whether held by the Servicer or by another on its
behalf, with respect to or concerning this Agreement or the Mortgage Loans,
during business hours or at such other times as may be reasonable under
applicable circumstances, upon at least two Business Days prior written notice;
provided, however, that such examination will not be permitted to the extent
such examination would be inconsistent with (i) the Servicer's current
reasonable procedures and policies in effect at such time, (ii) applicable law
(including any rules and regulations promulgated thereunder), including but not
limited to applicable copyright and trademark laws, (iii) any evidentiary
privileges that the Servicer may have with respect to such materials, i.e.,
disclosure of such materials may cause the Servicer to lose such privilege, and
(iv) the confidentiality obligations imposed upon the Servicer by any
unaffiliated third-party relating to such books of account and records.

     (b) The Servicer shall make available for interview to the Master Servicer
and the Depositor and their respective employees, agents, representatives and
attorneys, such officers and employees that are responsible for and/or
knowledgeable about the performance about the Servicer's obligations hereunder.
Any such inspection or interview shall be upon reasonable advance notice and
only as long as such inspection or interview does not disrupt the operations of
the Servicer.

     (c) The Servicer shall provide access to information and documentation
regarding the Mortgage Loans to the Master Servicer, the Depositor, the
Indenture Trustee, and their respective

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agents and accountants at any time upon reasonable request and during normal
business hours, and to the Noteholders and the Certificateholder that are
savings and loan associations, banks or insurance companies, the Office of
Thrift Supervision, the FDIC and the supervisory agents and examiners of such
Office and Corporation or examiners of any other federal or state banking or
insurance regulatory authority if so required by applicable regulations of the
Office of Thrift Supervision or other regulatory authority, such access to be
afforded without charge but only upon reasonable request in writing and during
normal business hours at the offices of the Servicer designated by it. In
fulfilling such a request the Servicer shall not be responsible for determining
the sufficiency of such information.

     (d) The Servicer shall provide to the Master Servicer such additional
information as the Master Servicer may reasonably request, including evidence of
the authorization of the person signing any certification or statement,
financial information and reports and of the Fidelity Bond and Errors and
Omissions Insurance policy required to be maintained by the Servicer pursuant to
Section Section 4.13, and such other information related to the Servicer or its
performance hereunder.

     SECTION 6.3 Servicer as Bailee.

     (a) The Servicer shall transmit to the Custodian such documents and
instruments coming into the possession of the Servicer from time to time as are
required by the terms hereof to be delivered to the Custodian. Any funds
received by the Servicer in respect of any Mortgage Loan or which otherwise are
collected by the Servicer as Liquidation Proceeds or Insurance Proceeds in
respect of any Mortgage Loan shall be held for the benefit of the Indenture
Trustee and the Certificateholder, subject to the Servicer's right to retain or
withdraw amounts provided in this Agreement and to the right of the Servicer to
retain its Servicing Fee and other amounts as provided herein.

     (b) All Mortgage Files and funds collected or held by, or under the control
of, the Servicer, in respect of any Mortgage Loans, whether from the collection
of principal and interest payments or from Liquidation Proceeds or Insurance
Proceeds, shall be held by the Servicer for and on behalf of the Indenture
Trustee as the Indenture Trustee's agent and bailee for purposes of perfecting
the Indenture Trustee's security interest therein as provided by the relevant
UCC or laws; provided, however, that the Servicer shall be entitled to setoff
against, and deduct from, any such funds any amounts that are properly due and
payable to the Servicer under this Agreement and shall be authorized to remit
such funds to the Indenture Trustee in accordance with this Agreement.

     (c) The Servicer hereby acknowledges that, concurrently with the execution
of this Agreement, the Indenture Trustee shall have a security interest in the
Mortgage Loans and in all Mortgage Files representing such Mortgage Loans and in
all funds and investment property now or hereafter held by, or under the control
of, the Servicer or are collected by the Servicer in connection with the
Mortgage Loans, whether as Scheduled Monthly Payments or as full or partial
prepayments of principal or interest or as Liquidation Proceeds or Insurance
Proceeds or otherwise, and in all proceeds of the foregoing and proceeds of
proceeds (but excluding any fee or other amounts to which the Servicer is
entitled to hereunder); and the Servicer agrees that so long as the Mortgage
Loans are collaterally assigned to and held by the Indenture Trustee, all

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documents or instruments constituting part of the Mortgage Files, and such funds
relating to the Mortgage Loans which come into the possession or custody of, or
which are subject to the control of, the Servicer shall be held by the Servicer
and on behalf of the Indenture Trustee as the Indenture Trustee's agent and
bailee for purposes of perfecting the Indenture Trustee's security interest
therein as provided by the applicable UCC or other applicable laws.

     SECTION 6.4 Termination of the Servicer without Cause.

     The Depositor may terminate the Servicer without cause upon 90 days prior
written notice; provided, however, that no such termination will be effective
until the obligations of the Servicer hereunder have been assumed by a successor
servicer appointed in accordance with Section 8.8. Notwithstanding the
foregoing, if the Servicer is terminated without cause, the successor servicer
shall reimburse the Servicer for all accrued and unpaid Servicing Fees and
unreimbursed Monthly Advances and Servicing Advances upon the transfer of
servicing to such successor servicer.

     SECTION 6.5 Servicer Events of Default.

     (a) Each of the following shall constitute a Servicer Event of Default on
the part of the Servicer:

          (i) any failure by the Servicer to remit to the Securities
     Administrator any payment required to be made under the terms of this
     Agreement and such failure continues for two Business Days;

          (ii) failure by the Servicer duly to observe or perform in any
     material respect any other of the covenants or agreements on the part of
     the Servicer set forth in this Agreement (other than the covenants
     described in clause (ix) below), including, but not limited to, breach by
     the Servicer of any one or more of the representations, warranties and
     covenants of the Servicer as set forth in Section 3.3, which continues
     unremedied for a period of 30 days after the date on which written notice
     of such failure, requiring the same to be remedied, shall have been given
     to the Servicer by the Master Servicer or the Indenture Trustee;

          (iii) failure by the Servicer to maintain its license to do business
     in any jurisdiction where the Mortgaged Property is located if such license
     is required;

          (iv) a petition with, or decree or order of a court or agency or
     supervisory authority having jurisdiction for the appointment of a
     conservator or receiver or liquidator in any bankruptcy, insolvency,
     readjustment of debt, including bankruptcy, marshaling of assets and
     liabilities or similar proceedings, or for the winding-up or liquidation of
     its affairs, shall have been filed or entered against the Servicer and such
     petition or decree or order shall have remained in force undischarged or
     unstayed for a period of 60 days;

          (v) the Servicer shall consent to the appointment of a conservator or
     receiver or liquidator in any insolvency, readjustment of debt, marshaling
     of assets and liabilities or similar proceedings of or relating to the
     Servicer or of or relating to all or substantially all of its assets;

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          (vi) the Servicer shall admit in writing its inability to pay its
     debts generally as they become due, file a petition to take advantage of
     any applicable insolvency, bankruptcy or reorganization statute, make an
     assignment for the benefit of its creditors, voluntarily suspend payment of
     its obligations or cease its normal business operations for at least three
     Business Days;

          (vii) the Servicer ceases to meet the Servicer eligibility
     qualifications of Fannie Mae or Freddie Mac;

          (viii) the Servicer attempts to assign its right to servicing
     compensation hereunder or to assign this Agreement or the servicing
     responsibilities hereunder or to delegate its duties hereunder or any
     portion thereof in violation of Section 6.1 hereof; or

          (ix) any failure by the Servicer to duly perform, within the required
     time period, its obligations to provide any Assessment of Compliance,
     Attestation Report, Compliance Statement, Back-Up SOX certification, or any
     other information, data or materials required to be provided hereunder,
     including any items required to be included in any Exchange Act report
     pursuant to Article V, which failure continues unremedied for a period of
     five days after the date on which written notice of such failure, requiring
     the same to be remedied, shall have been given to the Servicer by the
     Master Servicer.

     (b) If the Servicer obtains knowledge of a Servicer Event of Default, the
Servicer shall promptly notify the Master Servicer, the Depositor, the Seller,
and the Indenture Trustee. In each and every such case, so long as a Servicer
Event of Default shall not have been remedied, in addition to whatever rights
the Master Servicer or the Indenture Trustee may have at law or equity to
damages, including injunctive relief and specific performance, the Master
Servicer, by notice in writing to the Servicer, may terminate all the rights and
obligations of the Servicer under this Agreement and in and to the Mortgage
Loans and the proceeds thereof.

     (c) The Master Servicer will provide written notice of the Servicer's
termination upon a Servicer Event of Default to the Servicer, the Depositor, the
Seller, and the Indenture Trustee. Except with respect to a Servicer Event of
Default under Section 6.5(a), in which case such notice will be immediately
effective, the termination of the Servicer shall not become effective until at
least ten Business Days following the date such notice of termination is
provided by the Master Servicer to the Servicer and the Depositor (the
"TERMINATION NOTICE DATE"). Upon the Termination Notice Date, or ten Business
Days thereafter, as applicable, all authority and power of the Servicer under
this Agreement, whether with respect to the Mortgage Loans or otherwise, shall
pass to and be vested in the successor servicer appointed pursuant to Section
8.8.

     (d) If the Servicer is terminated upon the occurrence of a Servicer Event
of Default as described in this Section 6.5, upon written request from the
Depositor or the Master Servicer, the Servicer shall, at its expense, prepare,
execute and deliver to the successor entity designated by the Master Servicer
any and all documents and other instruments, place in such successor's
possession all Mortgage Files, and do or cause to be done all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, including but not limited to the transfer and endorsement or
assignment of the Mortgage Loans and related documents, at the

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Servicer's sole expense. The Servicer shall cooperate with the Master Servicer
and such successor in effecting the termination of the Servicer's
responsibilities and rights hereunder, including without limitation, the
transfer to such successor for administration by it of all cash amounts which
shall at the time be credited by the Servicer to the Custodial Account or Escrow
Account or thereafter received with respect to the Mortgage Loans.

     (e) In connection with the foregoing, the Servicer being terminated shall
bear all reasonable out-of-pocket costs of a servicing transfer, including but
not limited to those of the Master Servicer, the Securities Administrator, the
Indenture Trustee, legal fees and expenses, accounting and financial consulting
fees and expenses, and costs of amending the Agreement, if necessary. If such
amounts are not paid by the terminated Servicer, they shall be paid from amounts
held in the Payment Account.

     SECTION 6.6 Waiver of Defaults.

     The Noteholders representing 66-2/3% of the Voting Rights may by written
notice waive any default by the Servicer in the performance of its obligations
hereunder and its consequences, except that a default in the making of any
required deposit to the Payment Account that would result in a failure of the
Securities Administrator to make any required payment of principal of or
interest on the Notes may only be waived with the consent of 100% of the
affected Noteholders. Upon any waiver of a past default, such default shall
cease to exist, and any Servicer Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver
shall extend to any subsequent or other default or impair any right consequent
thereon except to the extent expressly so waived.

     SECTION 6.7 Servicer Covenants.

     (a) If so requested by the Depositor for the purpose of satisfying its
reporting obligation under the Exchange Act with respect to any class of
asset-backed securities, the Servicer shall (or shall cause each Subservicer to)
(i) notify the Depositor in writing of (A) any material litigation or
governmental proceedings pending against the Servicer or any Subservicer and (B)
any affiliations or relationships that develop following the closing date of
this transaction between the Servicer and any Subservicer and any of the
transaction parties (and any other parties identified in writing by the
requesting party) with respect to this transaction, and (ii) provide to the
Depositor a description of such proceedings, affiliations or relationships.

     (b) As a condition to the succession to the Servicer or any Subservicer as
servicer or subservicer under this Agreement by any Person (i) into which the
Servicer or such Subservicer may be merged or consolidated, or (ii) which may be
appointed as a successor to the Servicer or any Subservicer, the Servicer shall
provide to the Depositor and Master Servicer, at least 15 calendar days prior to
the effective date of such succession or appointment, (x) written notice to the
Depositor and Master Servicerof such succession or appointment and (y) in
writing and in form and substance reasonably satisfactory to the Depositor and
Master Servicer, all information reasonably requested by the Depositor or Master
Servicer in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to any class of asset-backed securities.

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     (c) In addition to such information as the Servicer is obligated to provide
pursuant to other provisions of this Agreement, if so requested by the
Depositor, the Servicer shall provide such information regarding the performance
or servicing of the Mortgage Loans as is reasonably required to facilitate
preparation of distribution reports in accordance with Item 1121 of Regulation
AB. Such information shall be provided concurrently with the monthly reports
otherwise required to be delivered by the Servicer under this Agreement,
commencing with the first such report due not less than ten Business Days
following such request.

     SECTION 6.8 Indemnification.

     The Servicer agrees to indemnify the Depositor, the Issuing Entity, the
Indenture Trustee, the Owner Trustee, the Securities Administrator and the
Master Servicer and hold them harmless against any and all claims, losses,
penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, liability, fees and expenses that the Depositor, the Issuing
Entity, the Indenture Trustee, the Owner Trustee, the Securities Administrator
or the Master Servicer may sustain as a result of (i) the Servicer's willful
malfeasance, bad faith or negligence in the performance of its duties under this
Agreement, or (ii) the failure of the Servicer to perform its duties and its
obligations under this Agreement and its duties and obligations to service the
Mortgage Loans in compliance with the terms of this Agreement. The Depositor,
the Issuing Entity, the Indenture Trustee, the Owner Trustee, the Securities
Administrator or the Master Servicer shall as promptly as practicable notify the
Servicer if a claim is made by a third party with respect to this Agreement or
the Mortgage Loans entitling the Depositor, the Issuing Entity, the Indenture
Trustee, the Owner Trustee, the Securities Administrator or the Master Servicer
to indemnification under this Section 6.8, whereupon the Servicer shall assume
the defense of any such claim and pay all expenses in connection therewith,
including counsel fees, and promptly pay, discharge and satisfy any judgment or
decree which may be entered against it or them in respect of such claim.

     SECTION 6.9 Opinion.

     On or before the Closing Date, the Servicer shall cause to be delivered to
the other parties to this Agreement and the Underwriters one or more Opinions of
Counsel, dated the Closing Date, in form and substance reasonably satisfactory
to the recipients thereof, as to the due authorization, execution and delivery
of this Agreement by the Servicer and the enforceability thereof.

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                                   ARTICLE VII

                                    RESERVED

                                  ARTICLE VIII

                               THE MASTER SERVICER

     SECTION 8.1 Duties of the Master Servicer.

     (a) The Master Servicer shall master service the Mortgage Loans in
accordance with the Accepted Master Servicing Practices and the provisions of
this Agreement. The Master Servicer shall monitor the performance of the
obligations of the Servicer hereunder.

     (b) The Master Servicer shall not be required to cause the Servicer to take
any action or refrain from taking any action if this Agreement does not require
the Servicer to take such action or refrain from taking such action. The Master
Servicer shall not take, or knowingly permit the Servicer to take, any action
that is inconsistent with or prejudices the interests of the Issuing Entity or
the Indenture Trustee in any Mortgage Loan or the rights and interests of the
Issuing Entity or the Indenture Trustee under this Agreement and the Indenture.
The Master Servicer shall have no liability for the acts or omissions of the
Servicer in the performance by such Servicer of its obligations.

     (c) If a party does not act as both the Master Servicer and the Securities
Administrator, not later than the Business Day prior to each Payment Date, the
Master Servicer shall forward to the Securities Administrator a statement
setting forth the status of any account or accounts, including any collection
accounts, maintained by the Master Servicer as of the close of business on the
Business Day prior to the related Payment Date, indicating that all remittances
or payments required by this Agreement to be made by the Master Servicer have
been made (or if any required remittance or payment has not been made by the
Master Servicer, specifying the nature and status thereof) and showing, for the
period covered by such statement, the aggregate of deposits into and withdrawals
from any account maintained by the Master Servicer.

     (d) The Master Servicer shall, in accordance with Sections 6.5 and 8.8, in
the event that the Servicer fails to perform its obligations in accordance
herewith, terminate the rights and obligations of the Servicer hereunder. The
Master Servicer shall pay the costs of such enforcement at its own expense, and
shall be reimbursed for the costs of such enforcement initially (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, (ii) from a specific recovery of costs, expenses or attorneys' fees
against the party against whom such enforcement is directed, and then, (iii) to
the extent that such amounts are insufficient to reimburse the Master Servicer
for the costs of such enforcement, from the Payment Account.

     (e) If the Servicer fails to remit a Monthly Advance, the Master Servicer,
in its capacity as successor servicer, shall itself make such Advance. If the
Master Servicer determines that a Monthly Advance is required, it shall, on the
Business Day immediately prior to the related Payment Date, deposit in the
Custodial Account immediately available funds in an amount equal

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to such Monthly Advance. The Master Servicer shall be entitled to be reimbursed
from the Payment Account in accordance with Section 10.1 for all Monthly
Advances made by it from late collections related to such Mortgage Loan or from
other funds as provided in Section 10.1. Notwithstanding anything to the
contrary herein, in the event the Master Servicer determines in its reasonable
judgment that a Monthly Advance is a Non-recoverable Advance, the Master
Servicer shall be under no obligation to make such Monthly Advance. In the event
that the Master Servicer determines that any such Monthly Advances are
Non-recoverable Advances, the Master Servicer shall provide the Indenture
Trustee with a certificate signed by a Responsible Officer of the Master
Servicer evidencing such determination and setting forth the basis for such
determination.

     (f) The Master Servicer undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement.

     SECTION 8.2 Assignment or Delegation of Duties by the Master Servicer.

     Except as expressly provided herein, the Master Servicer shall not assign
or transfer any of its rights, benefits or privileges hereunder to any other
Person, or delegate to or subcontract with, or authorize or appoint any other
Person to perform any of the duties, covenants or obligations to be performed by
the Master Servicer hereunder, unless the Indenture Trustee and the Depositor
shall have consented to such action (such consent of the Indenture Trustee or
the Depositor not to be unreasonably withheld or delayed); provided, however,
that the Master Servicer shall have the right without the prior written consent
of the Indenture Trustee or the Depositor to delegate or assign to or
subcontract with or authorize or appoint an Affiliate of the Master Servicer to
perform and carry out any duties, covenants or obligations to be performed and
carried out by the Master Servicer hereunder. In no case, however, shall any
such delegation, subcontracting or assignment to an Affiliate of the Master
Servicer relieve the Master Servicer of any liability hereunder. Notice of such
permitted assignment shall be given promptly by the Master Servicer to the
Depositor and the Indenture Trustee. If, pursuant to any provision hereof, the
duties of the Master Servicer are transferred to a successor master servicer,
the entire amount of compensation payable to the Master Servicer pursuant
hereto, including amounts payable to or permitted to be retained or withdrawn by
the Master Servicer pursuant to Section 8.4, shall after such transfer be
payable to such successor master servicer.

     SECTION 8.3 Fidelity Bond and Errors and Omission Policy.

     The Master Servicer, at its expense, shall maintain with responsible
companies, at its own expense, a blanket Fidelity Bond and an Errors and
Omissions Insurance Policy, with broad coverage on all officers, employees and
other Persons acting on such Master Servicer's behalf, and covering errors and
omissions in the performance of the Master Servicer's obligations hereunder. The
Errors and Omissions Insurance Policy shall be in such form and amount that is
consistent with coverage customarily maintained by master servicers of mortgage
loans similar to the Mortgage Loans. The Master Servicer shall provide the
Depositor and the Indenture Trustee, upon request, with a copy of the Fidelity
Bond and Errors and Omission Policy.

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     SECTION 8.4 Compensation to the Master Servicer.

     (a) The Master Servicer will be entitled to the Master Servicer Fee on each
Payment Date. All income and gain realized from any investment of funds in the
Payment Account shall be for the benefit of the Master Servicer as compensation.
Notwithstanding the foregoing, if the Master Servicer is the successor servicer,
the Master Servicer shall deposit in the Payment Account, on or before the
related Payment Date, an amount equal to the lesser of (a) its servicing
compensation with respect to such Payment Date and (b) the amount of any
Compensating Interest Payment required to be paid by the Servicer with respect
to such Payment Date pursuant to this Agreement, but which is not paid by the
Servicer. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement.

     (b) From the Master Servicing Fee, the Master Servicer shall pay the fees
of the Indenture Trustee and Custodian pursuant to an agreed fee schedule. The
Master Servicer shall pay the fees of the Owner Trustee annually, from the
amounts on deposit in the Payment Account.

     SECTION 8.5 Merger or Consolidation.

     Any Person into which the Master Servicer may be merged or consolidated, or
any Person resulting from any merger, conversion, other change in form 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 to the
Master Servicer hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, however, that the successor or resulting
Person to the Master Servicer shall be a Person that shall be qualified and
approved (or that have an Affiliate that is qualified and approved) to service
mortgage loans for Fannie Mae or Freddie Mac and shall have a net worth of not
less than $25,000,000.

     SECTION 8.6 Examination Rights.

     (a) The Depositor or its designees shall have the right to examine and
audit any and all of the related books, records, facilities or other information
of the Master Servicer, whether held by the Master Servicer or by another on its
behalf, solely and specifically relating to this Agreement or the Mortgage
Loans, during business hours or at such other times as may be reasonable under
applicable circumstances, upon reasonable advance notice; provided, however,
that such examination will not be permitted to the extent such examination would
be inconsistent with (i) the Master Servicer's current reasonable procedures and
policies in effect at such time, (ii) applicable law (including any rules and
regulations promulgated thereunder), including but not limited to applicable
copyright and trademark laws, (iii) any evidentiary privileges that the Master
Servicer or Securities Administrator may have with respect to such materials,
i.e., disclosure of such materials may cause the Master Servicer to lose such
privilege, and (iv) the confidentiality obligations imposed upon the Master
Servicer by any unaffiliated third-party relating to such books of account and
records. Each party shall pay its own travel expenses associated with such
examination.

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     (b) The Master Servicer shall make available for interview to the Depositor
or its employees, agents, representatives and attorneys, such officers and
employees that are responsible for and/or knowledgeable about the performance of
the Master Servicer's obligations under the Operative Agreements. Any such
inspection or interview shall be upon reasonable advance notice and only as long
as such inspection or interview does not disrupt the operations of the Master
Servicer.

     SECTION 8.7 Resignation of Master Servicer.

     (a) Except as otherwise provided in Section 8.12 and this Section 8.7, the
Master Servicer shall not resign from the obligations and duties hereby imposed
on it except (i) with the consent of the Depositor (which consent may not be
unreasonably withheld) or (ii) upon the determination that its duties hereunder
are no longer permissible under applicable law and such incapacity cannot be
cured by the Master Servicer. Any such determination permitting resignation
pursuant to clause (ii) above shall be evidenced by an Opinion of Counsel to
such effect delivered to the Indenture Trustee and the Depositor. No such
resignation shall become effective until a successor master servicer shall have
assumed the Master Servicer's responsibilities and obligations under this
Agreement. Notice of such resignation shall be given promptly, but no less than
30 days prior to the effectiveness of such resignation, by the Master Servicer
to the Depositor and the Indenture Trustee.

     (b) Upon the resignation of the Master Servicer and the appointment of a
successor master servicer as described in the preceding paragraph, the
Securities Administrator, if the same party, also may resign upon notice to the
Depositor and the Indenture Trustee.

     SECTION 8.8 Master Servicer to Act as Servicer; Appointment of Successor.

     (a) On and after the time any Servicer resigns or is terminated pursuant to
the terms of this Agreement, the Depositor, with the consent of the Master
Servicer pursuant to the procedures below, shall appoint a successor servicer
pursuant to this Agreement, who shall be subject to all the responsibilities,
duties and liabilities relating thereto placed on such Servicer by the terms and
provisions of this Agreement and applicable law.

     (b) The Depositor may nominate a successor servicer to the Master Servicer
by 6:00 P.M., ET, on the third Business Day following the Termination Notice
Date. If the Master Servicer does not object to the proposed successor servicer
by 6:00 P.M. New York City time on the fourth Business Day following the
Termination Notice Date, then the Master Servicer shall appoint such proposed
successor servicer as the successor servicer. If the Master Servicer delivers
written notice to the Depositor that it does not consent to such proposed
successor servicer, then the Depositor may nominate a successor servicer to the
Master Servicer by 3:00 P.M., ET, on the sixth Business Day following the
Termination Notice Date. If the Master Servicer does not object to the proposed
successor servicer by 9:00 A.M., ET, on the seventh Business Day after the
Termination Notice Date, then the Master Servicer shall appoint such proposed
successor servicer as the successor servicer. If the Master Servicer delivers
written notice to the Depositor that it does not consent to such proposed
successor servicer, or the Depositor does not make a first or second proposal
for a successor servicer, then the Master Servicer, in its sole discretion, will
appoint a successor servicer (with the consent of the

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Depositor, such consent not to be unreasonably withheld or delayed) or assume
the obligations of the Servicer itself. Notwithstanding the foregoing, any
appointment by the Depositor of the Master Servicer as the successor servicer
shall not require the consent of the Depositor.

     (c) Notwithstanding any provision in this Agreement to the contrary, any
right of the Depositor to appoint a successor servicer upon a Servicer Event of
Default shall terminate if any amounts required to be remitted by the Servicer
to the Securities Administrator (including any required Monthly Advances) have
not been remitted to the Securities Administrator by the third Business Day
prior to the related Payment Date, in which event the Master Servicer will
appoint a successor servicer or assume the obligations of the Servicer itself.
It is understood and acknowledged by the parties hereto that there will be a
period of transition (not to exceed 90 days) before the actual servicing
functions can be fully transferred to any successor servicer.

     (d) Any successor to the Servicer shall be an institution that is a Fannie
Mae-and Freddie Mac-approved servicer in good standing, has a net worth of at
least $25,000,000 and is willing to service the Mortgage Loans and shall execute
and deliver to the Depositor, the Indenture Trustee, the Securities
Administrator and the Master Servicer an agreement accepting such delegation and
assignment, which contains an assumption by such Person of the rights, powers,
duties, responsibilities, obligations and liabilities of such Servicer, with
like effect as if originally named as a party to this Agreement; provided,
further that each Rating Agency acknowledges that its rating of the Notes in
effect immediately prior to such assignment and delegation shall not be
downgraded, withdrawn or qualified as a result of such assignment and
delegation.

     (e) In connection with such appointment and assumption, the Depositor may
make such arrangements for the compensation of such successor out of payments on
Mortgage Loans as it and such successor shall agree, but not in excess of the
Servicing Fee. The Depositor, the Master Servicer and such successor shall take
such action, consistent with this Agreement, as shall be necessary to effectuate
any such succession.

     (f) To the extent that the costs and expenses of the Master Servicer
related to any termination of a Servicer, appointment of a successor servicer or
the transfer and assumption of servicing by the Master Servicer with respect to
this Agreement (including, without limitation, (i) all legal costs and expenses
and all due diligence costs and expenses associated with an evaluation of the
potential termination of the Servicer as a result of an event of default by such
Servicer and (ii) all costs and expenses associated with the complete transfer
of servicing, including all servicing files and all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the successor servicer to correct any errors or insufficiencies in the
servicing data or otherwise to enable the successor servicer to service the
Mortgage Loans in accordance with this Agreement) are not fully and timely
reimbursed by the terminated Servicer, the Master Servicer shall be entitled to
reimbursement of such costs and expenses from the Payment Account.

     (g) The successor servicer will not assume liability for the
representations and warranties of the Servicer that it replaces.

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     (h) Any successor to the Servicer shall give notice to the related
Mortgagors of such change of servicer and shall, during the term of its service
as Servicer maintain in force the policy or policies that such Servicer is
required to maintain pursuant to this Agreement.

     (i) No successor servicer will be responsible for delays attributable to
the Servicer's failure to deliver information, defects in the information
supplied by the Servicer or other circumstances beyond the control of the
successor servicer. The successor servicer will make arrangements with the
Servicer for the prompt and safe transfer of, and the Servicer shall provide to
the successor servicer, all necessary servicing files and records, including (as
deemed necessary by the successor servicer at such time): (i) microfiche loan
documentation, (ii) servicing system tapes, (iii) mortgage loan payment history,
(iv) collections history and (v) the trial balances, as of the close of business
on the day immediately preceding conversion to the successor servicer,
reflecting all applicable mortgage loan information. The successor servicer
shall have no responsibility and shall not be in default hereunder nor incur any
liability for any failure, error, malfunction or any delay in carrying out any
of its duties under this Agreement if any such failure or delay results from the
successor servicer acting in accordance with information prepared or supplied by
a Person other than the successor servicer or the failure of any such Person to
prepare or provide such information. The successor servicer shall have no
responsibility, shall not be in default and shall incur no liability (i) for any
act or failure to act by any third party, including the servicer, or for any
inaccuracy or omission in a notice or communication received by the successor
servicer from any third party or (ii) which is due to or results from the
invalidity, unenforceability of any Mortgage Loan with applicable law or the
breach or the inaccuracy of any representation or warranty made with respect to
any Mortgage Loan.

     SECTION 8.9 Master Servicer Events of Default; Appointment of Successor.

     (a) The occurrence of any one or more of the following events shall
constitute a "MASTER SERVICER EVENT OF DEFAULT":

          (i) any failure by the Master Servicer (other than in its capacity as
     successor servicer) to remit to the Securities Administrator for payment to
     the Noteholders any funds required to be remitted by the Master Servicer
     under the terms of this Agreement;

          (ii) any failure on the part of the Master Servicer (other than in its
     capacity as successor servicer) duly to observe or perform in any material
     respect any other of the covenants or agreements on the part of the Master
     Servicer contained in this Agreement that materially and adversely affects
     the interest of the Noteholders, which continues unremedied for a period of
     30 days after the earlier of (i) the date on which written notice of such
     failure, requiring the same to be remedied, shall have been given to the
     Master Servicer by the Depositor or the Indenture Trustee, or to the Master
     Servicer, the Depositor and the Indenture Trustee by the Noteholders
     representing 66-2/3% of the total Voting Interests and (ii) actual
     knowledge of such failure by a Responsible Officer of the Master Servicer;

          (iii) a petition with, or decree or order of a court or agency or
     supervisory authority having jurisdiction for the appointment of a
     conservator or receiver or liquidator

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     in any bankruptcy, insolvency, readjustment of debt, marshalling of assets
     and liabilities or similar proceedings, or for the winding-up or
     liquidation of its affairs, shall have been entered against the Master
     Servicer and such petition decree or order shall have remained in force
     undischarged or unstayed for a period of 90 days;

          (iv) the Master Servicer shall consent to the appointment of a
     conservator or receiver or liquidator in any insolvency, readjustment of
     debt, marshalling of assets and liabilities or similar proceedings of or
     relating to it or of or relating to all or substantially all of its
     property;

          (v) the Master Servicer shall admit in writing its inability to pay
     its debts generally as they become due, file a petition to take advantage
     of any applicable insolvency, bankruptcy or reorganization statute, make an
     assignment for the benefit of its creditors, or voluntarily suspend payment
     of its obligations;

          (vi) the Master Servicer shall be dissolved, or shall dispose of all
     or substantially all of its assets, or consolidate with or merge into
     another entity or shall permit another entity to consolidate or merge into
     it, such that the resulting entity does not meet the criteria for a
     successor master servicer as specified in Section 8.5;

          (vii) if a representation or warranty set forth in Section 3.4 shall
     prove to be incorrect as of the time made in any respect that materially
     and adversely affects the interests of the Noteholders and the
     Certificateholder, and the circumstance or condition in respect of which
     such representation or warranty was incorrect shall not have been
     eliminated or cured within 30 days after the earlier of (a) the date on
     which written notice of such incorrect representation or warranty shall
     have been given to the Master Servicer by the Depositor or the Indenture
     Trustee, or to the Master Servicer, the Depositor and the Indenture Trustee
     by the Noteholders representing 66-2/3% of the total Voting Interests and
     (b) actual knowledge of such failure by a Responsible Officer of the Master
     Servicer;

          (viii) a sale or pledge of any of the rights of the Master Servicer
     hereunder or an assignment of this Agreement by the Master Servicer or a
     delegation of the rights or duties of the Master Servicer hereunder shall
     have occurred in any manner not otherwise permitted hereunder and without
     the prior written consent of Noteholders representing 66-2/3% Voting
     Interests; or

          (ix) any failure of the Master Servicer to make any Advances required
     to be made by it hereunder within two days following notice of such default
     by the Indenture Trustee.

     (b) If the Indenture Trustee has knowledge of any Master Servicer Event of
Default described in clauses (i) through (viii) of this Section 8.9, then, in
each and every case, subject to applicable law, so long as any such Master
Servicer Event of Default shall not have been remedied within any period of time
prescribed by this Section 8.9, if any, the Indenture Trustee, by notice in
writing to the Master Servicer may, and shall, if so directed by the Noteholders
representing 66-2/3% of the Voting Interest, terminate all of the rights and
obligations of the

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Master Servicer hereunder. If a Master Servicer Event of Default described in
clause (ix) of this Section 8.9 shall occur, then, in each and every case,
subject to applicable law, so long as such Master Servicer Event of Default
shall not have been remedied within the time period prescribed by clause (ix) of
this Section 8.9, the Indenture Trustee, by notice in writing to the Master
Servicer, shall promptly terminate all of the rights and obligations of the
Master Servicer hereunder and in and to the Mortgage Loans and the proceeds
thereof.

     (c) On or after the receipt by the Master Servicer of such written notice,
all authority and power of the Master Servicer, but only in its capacity as
Master Servicer under this Agreement, whether with respect to the Mortgage Loans
or otherwise, shall pass to and be vested in the Indenture Trustee (as successor
Master Servicer) or a successor designated by the Indenture Trustee pursuant to
and under the terms of this Agreement; and the Indenture Trustee is hereby
authorized and empowered to execute and deliver, on behalf of the defaulting
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.

     (d) The Indenture Trustee may, if it shall be unwilling to continue to so
act, or shall, if it is unable to so act, or does not satisfy the requirements
of a successor Master Servicer, appoint, or petition a court of competent
jurisdiction to appoint, any established housing and home finance institution
servicer, master servicer, servicing or mortgage servicing institution having a
net worth of not less than $25,000,000 and meeting such other standards for a
successor master servicer as are set forth in this Agreement, as the successor
to such Master Servicer in the assumption of all of the responsibilities, duties
or liabilities of a master servicer, like the Master Servicer. Such successor
master servicer may be an Affiliate of the Indenture Trustee; provided, however,
that, unless such Affiliate meets the net worth requirements and other standards
set forth herein for a successor master servicer, the Indenture Trustee, in its
individual capacity shall agree, at the time of such designation, to be and
remain liable to the Issuing Entity and the Indenture Trustee for such
Affiliate's actions and omissions in performing its duties hereunder. In
connection with such appointment and assumption, the Indenture Trustee may 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 to the Master Servicer
hereunder.

     (e) The defaulting Master Servicer agrees to cooperate with the successor
master servicer in effecting the termination of the defaulting Master Servicer's
responsibilities and rights hereunder as Master Servicer including, without
limitation, notifying the Servicer of the assignment of the master servicing
function and providing the successor master servicer all documents and records
in electronic or other form reasonably requested by it to enable the successor
master servicer to assume the defaulting Master Servicer's functions hereunder
and the transfer to the successor master servicer for administration by it of
all amounts which shall at the time be or should have been deposited by the
defaulting Master Servicer in the Payment Account maintained by the Securities
Administrator and any other account or fund maintained by the Master Servicer
with respect to the Notes and the Certificate or thereafter received with
respect to the Mortgage Loans.

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     (f) The Indenture Trustee or the successor master servicer shall be
entitled to be reimbursed by the Master Servicer (or by the Trust Fund, if the
Master Servicer is unable to fulfill its obligations hereunder) for all
reasonable and properly documented costs associated with the transfer of master
servicing from the predecessor Master Servicer, including, without limitation,
any costs or expenses associated with the complete transfer of all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the Indenture Trustee to correct any errors or
insufficiencies in the servicing data or otherwise to enable the Indenture
Trustee to master service the Mortgage Loans properly and effectively. If the
terminated Master Servicer does not pay such reimbursement within 30 days of its
receipt of an invoice therefor, such reimbursement shall be an expense of the
Trust Fund and the successor master servicer shall be entitled to withdraw such
reimbursement from amounts on deposit in the Payment Account pursuant to Section
10.1(e); provided, that, the terminated Master Servicer shall reimburse the
Trust Fund for any such expense incurred by the Trust Fund; and provided,
further, that the Indenture Trustee shall decide whether and to what extent it
is in the best interest of the Noteholders and the Certificateholder to pursue
any remedy against any party obligated to make such reimbursement.

     (g) The successor master servicer shall have no responsibility for any act
or omission of the Master Servicer prior to the issuance of any notice of
termination and shall have no liability relating to the representations and
warranties of the Master Servicer set forth in Section 3.4.

     (h) No successor master servicer shall be deemed to be in default hereunder
by reason of any failure to make, or any delay in making, any remittance or
payment hereunder or any portion thereof caused by (i) the failure of the Master
Servicer to deliver, or any delay in delivering, cash, documents or records to
it, (ii) the failure of the Master Servicer to cooperate as required by this
Agreement, (iii) the failure of the Master Servicer to deliver the Mortgage Loan
data to the Indenture Trustee as required by this Agreement or (iv) restrictions
imposed by any regulatory authority having jurisdiction over the Master
Servicer.

     (i) Notwithstanding the termination of its activities as Master Servicer,
each terminated Master Servicer shall continue to be entitled to reimbursement
to the extent provided in Section 8.4 and Section 10.2 to the extent such
reimbursement relates to the period prior to such Master Servicer's termination.

     SECTION 8.10 Waiver of Defaults.

     The Noteholders representing 66-2/3% of the Voting Interests may, on behalf
of all Noteholders, waive any default or Master Servicer Event of Default by the
Master Servicer, except that a default in the making of any required deposit to
the Payment Account that would result in a failure of the Securities
Administrator to make any required payment of principal of or interest on the
Notes may only be waived with the consent of 100% of the affected Noteholders.
Upon any such waiver of a past default, such default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. No such waiver shall extend to any subsequent
or other default or impair any right consequent thereon except to the extent
expressly so waived.

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     SECTION 8.11 Notification of Master Servicer Default.

     (a) If any Master Servicer Event of Default shall occur, of which a
Responsible Officer of the Indenture Trustee has actual knowledge, the Indenture
Trustee shall promptly notify each Rating Agency of the nature and extent of
such Master Servicer Event of Default. The Securities Administrator or the
Master Servicer shall immediately give written notice to the Indenture Trustee
upon the Master Servicer's failure to remit Advances on the date specified
herein.

     (b) The Indenture Trustee shall within 45 days after the occurrence of any
Master Servicer Event of Default known to the Indenture Trustee, give written
notice thereof to the Noteholders and the Certificateholder, unless such Master
Servicer Event of Default shall have been cured or waived prior to the issuance
of such notice and within such 45-day period.

     (c) Upon termination of the Master Servicer or appointment of a successor
to the Master Servicer, in each case as provided herein, the Indenture Trustee
shall promptly mail notice thereof by first class mail to the Noteholders and
the Certificateholder at their respective addresses appearing on the applicable
register.

     SECTION 8.12 Limitation on Liability of the Master Servicer.

     (a) No provision of this Agreement shall be construed to relieve the Master
Servicer from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that the duties and
obligations of the Master Servicer shall be determined solely by the express
provisions of this Agreement, and the Master Servicer 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 Master Servicer and, in absence of bad faith on the part
of the Master Servicer, the Master Servicer 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 Master Servicer and
conforming to the requirements of this Agreement.

     (b) Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master Servicer shall be under any liability to the
other parties hereto, the Noteholders or the Certificateholder for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Master Servicer or any such Person against any
liability that would otherwise be imposed by reason of willful misfeasance, bad
faith or negligence in its performance of its duties or by reason of reckless
disregard for its obligations and duties under this Agreement.

     SECTION 8.13 Master Servicer Covenants.

     (a) If so requested by the Depositor for the purpose of satisfying its
reporting obligation under the Exchange Act with respect to any class of
asset-backed securities, the Master Servicer shall (i) notify the Depositor in
writing of (A) any material litigation or governmental proceedings pending
against the Master Servicer and (B) any affiliations or relationships that
develop following the closing date of this transaction between the Master

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Servicer and any of the transaction parties (and any other parties identified in
writing by the requesting party) with respect to this transaction, and (ii)
provide to the Depositor a description of such proceedings, affiliations or
relationships.

     (b) As a condition to the succession to the Master Servicer as master
servicer under this Agreement by any Person (i) into which the Master Servicer
may be merged or consolidated, or (ii) which may be appointed as a successor to
the Master Servicer, the Master Servicer shall provide to the Depositor, at
least 15 calendar days prior to the effective date of such succession or
appointment, (x) written notice to the Depositor of such succession or
appointment and (y) in writing and in form and substance reasonably satisfactory
to the Depositor, all information reasonably requested by the Depositor in order
to comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to any class of asset-backed securities.

     SECTION 8.14 Assignment or Delegation of Duties by Master Servicer,

     Except as expressly provided herein, the Master Servicer shall not assign
or transfer any of its rights, benefits or privileges hereunder to any other
Person, or delegate to or subcontract with, or authorize or appoint any other
Person to perform any of the duties, covenants or obligations to be performed by
the Master Servicer hereunder, unless the Depositor shall have consented to such
action (such consent of the Depositor not to be unreasonably withheld or
delayed); provided, however, that the Master Servicer shall have the right
without the prior written consent of the Depositor to delegate or assign to or
subcontract with or authorize or appoint an Affiliate of the Master Servicer to
perform and carry out any duties, covenants or obligations to be performed and
carried out by the Master Servicer hereunder. In no case, however, shall any
such delegation, subcontracting or assignment to an Affiliate of the Master
Servicer relieve the Master Servicer of any liability hereunder. Notice of such
permitted assignment shall be given promptly by the Master Servicer to the
Depositor and the Indenture Trustee. If, pursuant to any provision hereof, the
duties of the Master Servicer are transferred to a successor master servicer,
the entire amount of compensation payable to the Master Servicer pursuant
hereto, including amounts payable to or permitted to be retained or withdrawn by
the Master Servicer pursuant to Section 10.1, shall after such transfer be
payable to such successor master servicer.

     SECTION 8.15 Indemnification.

     The Master Servicer agrees to indemnify the Depositor, the Seller, the
Issuing Entity, the Indenture Trustee, the Owner Trustee, the Securities
Administrator and the Servicer and hold them harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor,
the Seller, the Issuing Entity, the Indenture Trustee, the Owner Trustee, the
Securities Administrator or the Servicer may sustain as a result of the Master
Servicer's willful malfeasance, bad faith or negligence in the performance of
its duties or by reason of reckless disregard of its obligations and duties
hereunder or under the Operative Agreements. The Depositor, the Issuing Entity,
the Indenture Trustee (including on behalf of the Issuing Entity), the Owner
Trustee, the Seller, the Securities Administrator or the Servicer shall
immediately notify the Master Servicer if a claim is made by a third party with
respect to this Agreement or with respect to the Mortgage Loans entitling the
Depositor, the Seller, the Issuing Entity, the Indenture Trustee, the Owner
Trustee,

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the Securities Administrator or the Servicer to indemnification under this
Section 8.15, whereupon the Master Servicer shall assume the defense of any such
claim and pay all expenses in connection therewith, including counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against it or them in respect of such claim.

     SECTION 8.16 Opinion.

     On or before the Closing Date, the Master Servicer shall cause to be
delivered to other parties hereto and the Underwriter one or more Opinions of
Counsel, dated the Closing Date, in form and substance reasonably satisfactory
to the recipients thereof, as to the due authorization, execution and delivery
of this Agreement by the Master Servicer and the enforceability thereof.

                                   ARTICLE IX

                          THE SECURITIES ADMINISTRATOR

     SECTION 9.1 Duties of the Securities Administrator.

     (a) The Securities Administrator shall perform such duties and only such
duties that are specifically set forth in the this Agreement and the other
Operative Agreements.

     (b) The Securities Administrator, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to it, which are specifically required to be furnished
pursuant to any provision of this Agreement and the Operative Agreements, shall
examine them to determine whether they conform to the requirements of this
Agreement and the Operative Agreements; provided, however, that the Securities
Administrator shall not be responsible for the accuracy or content of any
resolution, certificate statement, opinion, report, document, order or other
instrument furnished by the Servicer, the Seller, the Master Servicer or the
Depositor. If any such instrument is found not to conform to the requirements of
this Agreement in a material manner, the Securities Administrator shall take
such action as it deems appropriate to have the instrument corrected, and if the
instrument is not corrected to its satisfaction, the Securities Administrator
will provide notice to the Noteholders. Notwithstanding the foregoing, the
Securities Administrator shall have no obligation to reconcile, recompute or
recalculate any remittances or reports of the Servicer or the Cap Provider, and
the Securities Administrator may fully rely upon and shall have no liability
with respect to information provided by the Servicer or the Cap Provider.

     (c) On each Payment Date, the Securities Administrator, as paying agent,
shall make monthly payments and the final payment to the Noteholders as provided
in Section 10.2 of this Agreement. On each Payment Date, the Securities
Administrator shall make Payment Date Reports available as provided in Section
5.5.

     (d) In carrying out the foregoing duties or any of its other obligations
under this Agreement, the Securities Administrator may enter into transactions
with or otherwise deal with any of its Affiliates; provided, however, that the
terms of any such transactions or dealings shall be in accordance with any
directions received from the Issuing Entity and shall be, in the Securities
Administrator's opinion, no less favorable to the Issuing Entity than would be
available from unaffiliated parties.

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     (e) In carrying out the foregoing duties or any of its other obligations
under this Agreement, the Securities Administrator shall be subject to the same
standard of care and have the same rights, indemnifications and immunities as
the Indenture Trustee under the Indenture, including, without limitation, the
right to reimbursement and indemnification on behalf of the Issuing Entity from
funds in the Payment Account for all losses, costs and expenses of any kind or
nature (including without limitation attorneys' fees and disbursements) incurred
by the Securities Administrator (including without limitation in its various
capacities as Paying Agent, Certificate Paying Agent, Certificate Registrar and
Note Registrar) in connection with the performance of its duties hereunder or
under any other Operative Agreement.

     (f) The Securities Administrator, in its capacity as the Certificate
Registrar (as defined in the Indenture), and upon a request received from the
Owner Trustee, shall promptly notify the Certificateholder of (i) any change in
the Corporate Trust Office of the Owner Trustee, (ii) any amendment to the Owner
Trust Agreement requiring notice be given to the Certificateholder and (iii) any
other notice required to be given to the Certificateholder by the Owner Trustee
under the Owner Trust Agreement.

     SECTION 9.2 Records.

     The Securities Administrator shall maintain appropriate books of account
and records relating to services performed hereunder, which books of account and
records shall be accessible for inspection by the Issuing Entity and the
Depositor upon reasonable advance notice at any time during normal business
hours.

     SECTION 9.3 Compensation.

     The compensation of the Securities Administrator shall be paid by the
Master Servicer from its Master Servicing Fee.

     SECTION 9.4 Independence of the Securities Administrator.

     For all purposes of this Agreement, the Securities Administrator shall be
an independent contractor and shall not be subject to the supervision of the
Issuing Entity or the Owner Trustee with respect to the manner in which it
accomplishes the performance of its obligations hereunder. Unless expressly
authorized by the Issuing Entity, the Securities Administrator shall have no
authority to act for or represent the Issuing Entity or the Owner Trustee in any
way and shall not otherwise be deemed an agent of the Issuing Entity or the
Owner Trustee.

     SECTION 9.5 No Joint Venture.

     Nothing contained in this Agreement (a) shall constitute the Securities
Administrator, the Master Servicer, the Servicer, the Seller or the Depositor,
respectively, and any of the Issuing Entity, the Indenture Trustee or the Owner
Trustee, as members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (b) shall be construed to
impose any joint liability as such on any of them or (c) shall be deemed to
confer on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

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     SECTION 9.6 Other Activities of Securities Administrator and the Depositor.

     Nothing herein shall prevent the Securities Administrator, the Depositor or
their respective Affiliates from engaging in other businesses or, in its sole
discretion, from acting in a similar capacity as an Securities Administrator for
any other person or entity even though such person or entity may engage in
business activities similar to those of the Issuing Entity or the Owner Trustee.

     SECTION 9.7 Certain Matters Affecting the Securities Administrator.

     (a) The Securities Administrator may request and conclusively rely upon,
and shall be fully protected in acting or refraining from acting upon, any
resolution, Officers' Certificate, certificate of auditors or any other
certificate, statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document reasonably believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) The Securities Administrator may consult with counsel of its selection
and any advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or suffered
or omitted by it hereunder in good faith and in accordance with such advice or
Opinion of Counsel.

     (c) The Securities Administrator shall not be under any obligation to
exercise any of the powers vested in it by this Agreement and the Operative
Agreements or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the Noteholders,
pursuant to the provisions of this Agreement and the Operative Agreements,
unless such Noteholders shall have offered to the Securities Administrator
reasonable security or indemnity satisfactory to it against the costs, expenses
and liabilities which may be incurred therein or thereby.

     (d) The Securities Administrator shall not be personally liable for any
action taken, suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Agreement and the Operative Agreements.

     (e) The Securities Administrator 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 the Noteholders entitled to at least 25% of the Voting Interests; provided,
however, that if the payment within a reasonable time to the Securities
Administrator of the costs, expenses or liabilities likely to be incurred by it
in the making of such investigation is, in the opinion of the Securities
Administrator not reasonably assured to the Securities Administrator by such
Noteholders, the Securities Administrator may require reasonable indemnity
satisfactory to it against such expense, or liability from such Noteholders as a
condition to taking any such action.

     (f) The Securities Administrator may execute any of the powers hereunder or
perform any duties hereunder either directly or by or through agents, nominees,
attorneys or a custodian.

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     (g) The Securities Administrator shall not be liable for any loss on any
investment of funds pursuant to the Indenture or this Agreement (other than as
issuer of the investment security).

     (h) The Securities Administrator shall not be deemed to have notice of any
Indenture Event of Default, or Servicer Event of Default or Master Servicer
Event of Default unless a Responsible Officer of the Securities Administrator
has actual knowledge thereof or unless written notice of any event which is in
fact such a default is received by the Securities Administrator at the Corporate
Trust Office of the Securities Administrator, and such notice references the
Notes and this Agreement. The Securities Administrator shall not have any
responsibility or liability for any action or failure to act by the Master
Servicer, the Servicer, or the Seller, nor shall the Securities Administrator be
obligated to supervise or monitor the performance of the Master Servicer,
Servicer, or the Seller hereunder or otherwise;

     (i) The rights, privileges, protections, immunities and benefits given to
the Securities Administrator, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, each Paying Agent,
Note Registrar, the Certificate Registrar, the Certificate Paying Agent, agent,
custodian and other Person employed to act hereunder;

     (j) The right of the Securities Administrator to perform any discretionary
act enumerated in this Agreement and the Operative Agreements shall not be
construed as a duty, and the Securities Administrator shall not be answerable
for other than its negligence or willful misconduct in the performance of such
act.

     (k) Notwithstanding anything in this Agreement to the contrary, in no event
shall the Securities Administrator be liable to any Person for any act or
omission of the Master Servicer, the Servicer, the Owner Trustee, the Indenture
Trustee, the Cap Provider, the Seller or the Custodian.

     SECTION 9.8 Securities Administrator Not Liable for Notes or Mortgage
                 Loans.

     The recitals contained herein and in the Notes (other than the
authentication and countersignature on the Notes) shall be taken as the
statements of the Issuing Entity, and neither the Securities Administrator, the
Paying Agent nor the Note Registrar assumes any responsibility for the
correctness of the same. The Securities Administrator does not make any
representation or warranty as to the validity or sufficiency of this Agreement,
the Operative Agreements or of the Notes (other than the countersignature on the
Notes) or of any Mortgage Loan or related document or of MERS or the MERS
System. The Securities Administrator shall not be accountable for the use or
application by the Depositor of any of the Notes or of the proceeds of such
Notes, or for the use or application of any funds paid to the Depositor in
respect of the Mortgage Loans or deposited in or withdrawn from the Custodial
Account by the Servicer. The Securities Administrator shall not have any duty
(a) to see to any recording, filing or depositing of this Agreement, the
Operative Agreements or any financing statement or continuation statement
evidencing a security interest, or to see to the maintenance of any such
recording, filing or depositing thereof, (b) to see to any insurance or (c) to
see to the payment or discharge of any tax, assessment or other governmental
charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Trust Fund.

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     SECTION 9.9 Securities Administrator May Own Notes.

     The Securities Administrator, in its individual capacity, or in any
capacity other than as Securities Administrator hereunder, may become the owner
or pledgee of any Notes with the same rights as it would have if it were not
Securities Administrator, and may otherwise deal with the parties hereto.

     SECTION 9.10 Eligibility Requirements for the Securities Administrator.

     The Securities Administrator hereunder shall at all times be an entity duly
organized and validly existing under the laws of the United States of America or
any state thereof, authorized under such laws to exercise corporate trust
powers, and shall each have a combined capital and surplus of at least
$50,000,000, a minimum long-term debt rating in the third highest rating
category by each Rating Agency, a minimum short-term debt rating in the second
highest rating category by a Rating Agency, and shall each be subject to
supervision or examination by federal or state authority. If such entity
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 9.10, the combined capital and surplus of such entity
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Securities
Administrator shall cease to be eligible in accordance with the provisions of
this Section 9.10, the Securities Administrator shall resign immediately in the
manner and with the effect specified in Section 9.11.

     SECTION 9.11 Resignation and Removal of the Securities Administrator.

     (a) The Securities Administrator (including the Securities Administrator as
Paying Agent and as Note Registrar, as such terms are defined in the Indenture)
may at any time resign and be discharged from the trust hereby created by giving
written notice thereof to the Depositor, the Indenture Trustee, the Master
Servicer, the Servicer and each Rating Agency. Upon receiving such notice of
resignation of the Securities Administrator, the Depositor shall promptly
appoint a successor Securities Administrator that meets the requirements in
Section 9.11, by written instrument, in duplicate, one copy of which instrument
shall be delivered to each of the resigning Securities Administrator and one
copy to the successor Securities Administrator. If no successor Securities
Administrator shall have been so appointed and having accepted appointment
within 60 days after the giving of such notice of resignation, the resigning
Securities Administrator may petition any court of competent jurisdiction for
the appointment of a successor Securities Administrator.

     (b) If at any time the Securities Administrator shall cease to be eligible
in accordance with the provisions of Section 9.11 or if at any time the
Securities Administrator shall be legally unable to act, or shall be adjudged a
bankrupt or insolvent, or a receiver of the Securities Administrator or of its
property shall be appointed, or any public officer shall take charge or control
of the Securities Administrator or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Depositor may remove the
Securities Administrator (including the Securities Administrator as Paying Agent
and as Note Registrar, as such terms are defined in the Indenture). If the
Depositor removes the Securities Administrator under the authority of the
immediately preceding sentence, the Depositor shall promptly appoint

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a successor Securities Administrator that meets the requirements of Section
9.11, by written instrument, in duplicate, one copy of which instrument shall be
delivered to the successor Securities Administrator and one copy to each of the
Master Servicer and the Servicer.

     (c) The Noteholders entitled to at least 51% of the Voting Interests may at
any time remove the Securities Administrator (including the Securities
Administrator as Paying Agent and as Note Registrar, as such terms are defined
in the Indenture) and appoint a successor Securities Administrator by written
instrument or instruments signed by such Noteholders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor, one complete set to the Securities Administrator so removed and one
complete set to the successor so appointed. A copy of such instrument shall be
delivered to the Noteholders, the Securities Administrator and the Master
Servicer and the Servicer by the Depositor.

     SECTION 9.12 Successor Securities Administrator.

     (a) Any successor Securities Administrator appointed as provided in Section
9.11 shall execute, acknowledge and deliver to the Depositor, the Issuing
Entity, the Indenture Trustee, the Servicer, the Master Servicer and to its
predecessor Securities Administrator an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor
Securities Administrator shall become effective, and such successor Securities
Administrator 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 Securities Administrator.
The Depositor, the Issuing Entity, the Indenture Trustee, the Servicer, the
Master Servicer and the predecessor Securities Administrator shall execute and
deliver such instruments and do such other things as may reasonably be required
for fully and certainly vesting and confirming in the successor Securities
Administrator, all such rights, powers, duties and obligations.

     (b) No successor Securities Administrator shall accept appointment as
provided in this Section 9.12 unless at the time of such acceptance such
successor Securities Administrator shall be eligible under the provisions of
Section 9.10, and the appointment of such successor Securities Administrator
shall not result in a downgrading of the Classes of Notes rated by any Rating
Agency, as evidenced by a letter from each Rating Agency.

     (c) Upon acceptance of appointment by a successor Securities Administrator
as provided in this Section 9.12, the successor Securities Administrator shall
mail notice of such appointment hereunder to all Holders of Notes at their
addresses as shown in the Note Register and to the Rating Agencies.

     SECTION 9.13 Merger or Consolidation of Securities Administrator.

     Any corporation or association into which the Securities Administrator may
be merged or converted or with which it may be consolidated or any corporation
or association resulting from any merger, conversion or consolidation to which
the Securities Administrator shall be a party, or any corporation or association
succeeding to the business of the Securities Administrator shall be the
successor of the Securities Administrator hereunder, provided such corporation
or association shall be eligible under the provisions of Section 9.10, without
the execution or filing

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of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

     SECTION 9.14 Limitation of Liability.

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

          (i) The duties and obligations of the Securities Administrator shall
     be determined solely by the express provisions of this Agreement and the
     Operative Agreements; the Securities Administrator shall not be liable
     except for the performance of such duties and obligations as are
     specifically set forth in this Agreement, the Owner Trust Agreement or the
     Indenture; no implied covenants or obligations shall be read into this
     Agreement or the Operative Agreements against the Securities Administrator
     and, in the absence of bad faith on the part of the Securities
     Administrator, the Securities Administrator 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 Securities
     Administrator that conform to the requirements of this Agreement and the
     Operative Agreements, as applicable;

          (ii) The Securities Administrator shall not be liable for an error of
     judgment made in good faith by a Responsible Officer of the Securities
     Administrator unless it shall be proved that the Securities Administrator
     was negligent in ascertaining or investigating the facts related thereto;

          (iii) The Securities Administrator shall not be personally liable with
     respect to any action taken, suffered or omitted to be taken by it in good
     faith in accordance with the consent or at the direction of Noteholder as
     provided herein relating to the time, method and place of conducting any
     remedy pursuant to this Agreement and the Operative Agreements, or
     exercising or omitting to exercise any trust or power conferred upon the
     Securities Administrator under this Agreement and the Operative Agreements;
     and

          (iv) The Securities Administrator shall not be required to expend or
     risk its own funds or otherwise incur financial or other 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 indemnity satisfactory to it against such risk
     or liability is not assured to it, and none of the provisions contained in
     this Agreement or the Operative Documents shall in any event require the
     Securities Administrator to perform, or be responsible for the manner of
     performance of, any of the obligations of the Servicer under this Agreement
     and the Operative Agreements.

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     SECTION 9.15 Opinion.

     On or before the Closing Date, the Securities Administrator shall cause to
be delivered to other parties hereto and the Underwriters one or more Opinions
of Counsel, dated the Closing Date, in form and substance reasonably
satisfactory to the recipients thereof, as to the due authorization, execution
and delivery of this Agreement by the Securities Administrator and the
enforceability thereof.

                                    ARTICLE X

                    PAYMENTS TO NOTEHOLDERS; INDEMNIFICATION

     SECTION 10.1 The Payment Account.

     (a) The Securities Administrator shall establish and maintain one or more
accounts (the "PAYMENT ACCOUNT"), designated "Payment Account of [ - ], as
Securities Administrator, f/b/o Luminent Mortgage Trust 200_-_." The Payment
Account shall be established as an Eligible Account. All funds required to be
deposited in the Payment Account shall be held in trust for the Indenture
Trustee until withdrawn in accordance with Section 10.2. The Securities
Administrator shall segregate and hold all funds collected and received pursuant
to Section 4.24 separate and apart from any of its own funds and general assets.
Within five Business Days following any request of the Indenture Trustee, the
Securities Administrator shall provide the Indenture Trustee with written
confirmation of the existence of such Payment Account.

     (b) Funds on deposit in the Payment Account may be invested at the
direction of the Master Servicer, but only in Eligible Investments selected by
the Master Servicer, which Eligible Investments shall mature not later than the
Payment Date next following the date of such investment. All income and gain
realized from any such investment shall be for the benefit of the Master
Servicer. The amount of any losses incurred in respect of any such investments
shall be deposited in the Payment Account by the Master Servicer out of its own
funds immediately as such losses are realized.

     (c) The Payment Account shall initially be maintained at [Name of
Securities Administrator]. If an existing Payment Account ceases to be an
Eligible Account, the Securities Administrator shall establish a new Payment
Account that is an Eligible Account within ten days and transfer all funds and
investment property on deposit in such existing Payment Account into such new
Payment Account. The Securities Administrator shall give to the Master Servicer
and the Indenture Trustee prior written notice of the name and address of any
other depository institution at which the Payment Account is maintained and the
account number of such Payment Account.

     (d) The Securities Administrator promptly shall deposit or cause to be
deposited into the Payment Account all amounts remitted to it by the Servicer
pursuant to Section 4.24 and the Cap Payments remitted to it by the Cap
Provider. On each Payment Date, the entire amount on deposit in the Payment
Account (subject to permitted withdrawals) shall be applied to make the required
payment of principal and/or interest on each class of Notes and to make any
required distributions on the Certificate.

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     (e) The Securities Administrator shall make withdrawals from the Payment
Account only for the purposes set forth in Section 10.2 and for the following
purposes:

          (i) to withdraw amounts deposited in the Payment Account in error;

          (ii) to make payments pursuant to Section 10.2 and the terms of the
     Indenture and the Owner Trust Agreement;

          (iii) to reimburse the Master Servicer or the Servicer, as applicable,
     for Monthly Advances or Servicing Advances made by any such party, such
     right to reimbursement pursuant to this subclause (iii) being limited to
     amounts received on or in respect of a particular Mortgage Loan (including,
     for this purpose, Liquidation Proceeds and amounts representing Insurance
     Proceeds with respect to the property subject to the related Mortgage)
     which represent late recoveries (net of the applicable Servicing Fee) of
     payments of principal or interest respecting which any such Advance was
     made, it being understood, in the case of any such reimbursement, that the
     Master Servicer's or Servicer's right thereto shall be prior to the rights
     of the Noteholders and the Certificateholder;

          (iv) to reimburse the Master Servicer or the Servicer following a
     final liquidation of a Mortgage Loan for any previously unreimbursed
     Monthly Advances made by any such party (A) that such party determines in
     good faith will not be recoverable from amounts representing late
     recoveries of payments of principal or interest respecting the particular
     Mortgage Loan as to which such Advance was made or from Liquidation
     Proceeds or Insurance Proceeds with respect to such Mortgage Loan and/or
     (B) to the extent that such unreimbursed Monthly Advances exceed the
     related Liquidation Proceeds or Insurance Proceeds, it being understood, in
     the case of each such reimbursement, that the Master Servicer's or
     Servicer's right thereto shall be prior to the rights of the Noteholders
     and the Certificateholder;

          (v) to reimburse the Master Servicer or the Servicer from Liquidation
     Proceeds for amounts expended by it in good faith in connection with the
     restoration of damaged property and, to the extent that Liquidation
     Proceeds after such reimbursement exceed the unpaid principal balance of
     the related Mortgage Loan, together with accrued and unpaid interest
     thereon at the applicable Mortgage Rate less the applicable Servicing Fee
     Rate for such Mortgage Loan to the Due Date next succeeding the date of its
     receipt of such Liquidation Proceeds, to pay to itself or the Servicer out
     of such excess the amount of any unpaid assumption fees, late payment
     charges or other Mortgagor charges on the related Mortgage Loan and to
     retain any excess remaining thereafter as additional servicing
     compensation, it being understood, in the case of any such reimbursement or
     payment, that such Master Servicer's or Servicer's right thereto shall be
     prior to the rights of the Noteholders and the Certificateholder;

          (vi) to pay to the Seller or Servicer, as applicable, with respect to
     each Mortgage Loan or REO Property acquired in respect thereof that has
     been purchased pursuant to this Agreement, all amounts received thereon and
     not remitted on the date on which the related purchase was effected, and to
     pay to the applicable party any Monthly

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     Advances and Servicing Advances to the extent specified in the definition
     of Repurchase Price;

          (vii) to the extent not paid by the Servicer, to pay any insurance
     premium with respect to a Mortgage Loan;

          (viii) to pay to the Master Servicer income earned on the investment
     of funds on deposit in the Payment Account;

          (ix) on or immediately prior to each Payment Date to pay to the Master
     Servicer the Master Servicing Fee;

          (x) to make payment of expenses and indemnities to itself, the Master
     Servicer, the Servicer, the Owner Trustee or the Indenture Trustee pursuant
     to any provision of this Agreement or the Indenture;

          (xi) to make payment to the Owner Trustee of the Owner Trustee Fee;

          (xii) to reimburse a successor master servicer (solely in its capacity
     as successor master servicer), for any fee or advance occasioned by a
     termination of the Master Servicer, and the assumption of such duties by
     the Indenture Trustee or a successor master servicer appointed by the
     Indenture Trustee pursuant to Section 8.9, in each case to the extent not
     reimbursed by the terminated Master Servicer, it being understood, in the
     case of any such reimbursement or payment, that the right of the Master
     Servicer or the Indenture Trustee thereto shall be prior to the rights of
     the Noteholders and the Certificateholder; and

          (xiii) to clear and terminate the Payment Account pursuant to Article
     XI.

     In connection with withdrawals pursuant to subclauses (iii), (iv), (v) and
(vi) above, the Master Servicer's or the Servicer's or such other Person's
entitlement thereto is limited to collections or other recoveries on the related
Mortgage Loan. The Securities Administrator shall therefore keep and maintain a
separate accounting for each Mortgage Loan for the purpose of justifying any
withdrawal from the Payment Account it maintains pursuant to such subclauses.

     SECTION 10.2 Payments from the Payment Account.

     (a) On each Payment Date, the Securities Administrator (or the Paying Agent
on behalf of the Securities Administrator) shall withdraw amounts on deposit in
the Payment Account and pay such amounts as specified in the remainder of this
Section 10.2.

     (b) On each Payment Date, other than a date on which an Indenture Event of
Default has occurred and is continuing, the Securities Administrator (or the
Paying Agent on behalf of the Securities Administrator) will pay the following
amounts, in the following order of priority, from Available Funds, based solely
on the information from the Servicer Report:

          (i) Interest Proceeds will be paid in the following order of priority:

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               (A) From the Interest Proceeds:

                    (1) To pay the Master Servicing Fee and any indemnities and
               expenses due and payable to the Servicer, the Master Servicer,
               the Securities Administrator, the Owner Trustee, the Indenture
               Trustee and the Custodian;

                    (2) To pay concurrently to each class of Class A Notes, pro
               rata based upon the entitlement of each such class, its Current
               Interest.

               (B) To pay, from any remaining Interest Proceeds, sequentially to
               each class of Class M Notes in numeric order, its Current
               Interest.

          (ii) Principal Proceeds will be paid in the following order of
     priority:

               (A) On any Payment Date prior to the Stepdown Date or if a
               Trigger Event is in effect, the Principal Payment Amount will be
               paid:

                    (1) To pay the Principal Payment Amount sequentially to the
               Class A-1, Class A-2, Class A-3 and Class A-4 Notes, in that
               order, in each case until their respective Class Principal
               Amounts have been reduced to zero; and

                    (2) To pay sequentially the balance of the Principal Payment
               Amount to each class of the Class M Notes in numeric order until
               the Adjusted Class Principal Amount of each such class has been
               reduced to zero.

               (B) On any Payment Date on or after the Stepdown Date and if a
               Trigger Event is not in effect, the Principal Payment Amount will
               be paid:

                    (1) To pay the lesser of the Principal Payment Amount and
               the Senior Principal Payment Amount to the Class A-1, Class A-2,
               Class A-3 and Class A-4 Notes, in that order, in each case until
               their respective Class Principal Amounts have been reduced to
               zero; and

                    (2) To pay to each of the Class M Notes sequentially their
               respective Principal Payment Amounts until the Adjusted Class
               Principal Amount of each such class has been reduced to zero.

          (iii) Excess Cash flow will be paid in the following order of
     priority:

               (A) To pay to each of the Class A Notes, pro rata based upon the
               entitlement of each such class, any remaining unpaid Current
               Interest;

               (B) To pay the Overcollateralization Deficiency Amount as
               principal on the Offered Notes, payable in accordance with the
               payment of Principal Proceeds as set forth in clause (ii) above;

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               (C) To pay sequentially to each class of Class M Notes in numeric
               order, any remaining unpaid Current Interest;

               (D) If any Class Impairment Amount exists, sequentially to each
               class of Class M Notes in numeric order, to pay principal with
               respect to such class of Notes in reduction of its Class
               Principal Amount an amount equal to the Class Impairment Amount
               for such class;

               (E) To pay any Basis Risk Shortfall payable to each class of
               Offered Notes, pro rata based upon the entitlement of such class;

               (F) To pay any Deferred Interest sequentially to each class of
               Class M Notes in numeric order;

               (G) To pay any Deferred Interest Basis Risk Shortfall
               sequentially to each class of Class M Notes in numeric order;

               (H) To pay to the Class N Notes, its Interest Payment Amount for
               such Payment Date, and thereafter, the Class N Principal Payment
               Amount for such Payment Date; and

               (I) To pay any remaining Excess Cash flow to the Certificate.

     (c) On the Optional Termination Date, the Securities Administrator (or the
Paying Agent on behalf of the Securities Administrator) shall pay to each class
of Notes the related Redemption Price therefor.

     (d) If the Indenture Trustee collects any money in relation to an Indenture
Event of Default pursuant to Article V of the Indenture, the Indenture Trustee
shall remit such funds to the Securities Administrator, which shall pay out the
money in the following order:

          (i) first: to the Indenture Trustee, for costs or expenses, including
     reasonable out-of-pocket attorneys' fees, incurred by it in connection with
     the enforcement of the remedies provided for in this Agreement and for any
     other unpaid amounts due to the Indenture Trustee hereunder, to the
     Securities Administrator for any amounts due and owing to it, to the Master
     Servicer for any amounts due and owing to it under this Agreement and the
     other Operative Agreements, and to the Owner Trustee, to the extent of any
     fees and expenses due and owing to it (including pursuant to Section of the
     Owner Trust Agreement) and for any other unpaid amounts due to the Owner
     Trustee, to the extent of any fees and expenses due and owing to it;

          (ii) second: to the Servicer for any fees then due and unpaid and any
     unreimbursed Advances;

          (iii) third: to the Notes, all accrued and unpaid interest thereon
     (including Deferred Interest, Basis Risk Shortfalls and Deferred Interest
     Basis Risk Shortfalls) and amounts in respect of the Class Principal Amount
     according to the priorities set forth in

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     Section 10.2 of this Agreement; provided, however, that accrued and unpaid
     interest shall be paid to each class of Offered Notes before any payments
     in respect of principal; and

          (iv) fourth: to the Owner Trustee or its Paying Agent for any amounts
     to be distributed to the Certificateholder.

     The Securities Administrator may fix a record date and payment date for any
payment to Noteholders pursuant to this Section 10.2(b)(i). At least 15 days
before such record date, the Securities Administrator shall mail to each
Noteholder and the Indenture Trustee a notice that states the record date, the
payment date and the amount to be paid.

     (e) On each Payment Date, the Securities Administrator (or the Paying Agent
on behalf of the Securities Administrator) shall apply any Cap Payment as
Interest Proceeds pursuant to Section 10.2(b)(i).

     (f) On each Payment Date, the Securities Administrator (or the Paying Agent
on behalf of the Securities Administrator) shall apply any Prepayment Premiums
received by it on the Mortgage Loans with respect to such Payment Date to the
payment of interest and principal on the Class N Notes and, if the Class
Principal Amount of the Class N Notes has been reduced to zero, to the
Certificate.

     (g) If additional amounts are recovered in any calendar month with respect
to a Mortgage Loan following Liquidation and the determination of the amount of
Realized Losses with respect thereto, (i) such recovery shall be part of the
Principal Proceeds for the applicable Mortgage Loan Group on the following
Payment Date, and (ii) the Class Impairment Amount, if any, of the most senior
Class M Note with a Class Impairment Amount, shall be reduced by the amount of
such recovery.

     SECTION 10.3 Indemnification.

     (a) The Depositor, the Servicer, the Master Servicer, the Securities
Administrator and the Indenture Trustee, and any director, officer, employee or
agent of the Depositor, the Servicer, the Master Servicer, the Securities
Administrator or the Indenture Trustee, shall be indemnified by the Trust Fund
and held harmless against any loss, liability or expense incurred in connection
with any audit, controversy or judicial proceeding relating to a governmental
taxing authority or any legal action relating to this Agreement or the Notes or
any other unanticipated or extraordinary expense, other than any loss, liability
or expense incurred by reason of willful misfeasance, bad faith or negligence
(or gross negligence in the case of the Depositor) in the performance of such
Person's duties hereunder or by reason of reckless disregard of such Person's
obligations and duties hereunder. None of the Depositor, the Servicer, the
Master Servicer or the Securities Administrator shall be under any obligation to
appear in, prosecute or defend any legal action that is not incidental to its
respective duties hereunder and which in its opinion may involve it in any
expense or liability; provided, however, that each of the Depositor, the
Servicer, the Master Servicer and the Securities Administrator may in its
respective sole discretion undertake any such claim that it may deem necessary
or desirable in respect of this Agreement and the rights and duties of the
parties hereto and interests of the Indenture Trustee and the Noteholders
hereunder. In such event, the legal expenses and costs of such action and

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any liability resulting therefrom shall be expenses, costs and liabilities of
the Trust Fund, and the Depositor, the Servicer, the Master Servicer and the
Securities Administrator shall be entitled to be reimbursed therefor out of the
Payment Account.

     (b) The Securities Administrator and its officers, directors, employees and
agents will be entitled to recover from the Trust Fund from amounts held in the
Payment Account, and shall be indemnified from the Trust Fund for, all
reasonable out-of-pocket expenses, disbursements, and advances, including costs
of collection, upon any Indenture Event of Default, any breach of this Agreement
and the Operative Agreements or any loss, liability, expense, claim or legal
action (including any pending or threatened claim or legal action) incurred or
made by any of them in the performance of their duties under this Agreement and
the Operative Agreements (including the reasonable compensation, expenses and
disbursements of its counsel), except any such expense, loss, liability,
disbursement or advance as may arise from its negligence or intentional
misconduct. If funds in the Payment Account are insufficient therefor, the
Securities Administrator shall recover such expenses from future funds deposited
in the Payment Account. Such compensation and reimbursement obligation shall not
be limited by any provision of law in regard to the compensation of a Securities
Administrator of an express trust. Such obligations shall survive the
termination of this Agreement and the Operative Agreements and the removal or
resignation of the Securities Administrator.

                                   ARTICLE XI

                                   TERMINATION

     SECTION 11.1 Termination.

     The respective obligations and responsibilities of the Master Servicer, the
Securities Administrator, the Depositor, the Issuing Entity, the Servicer, the
Seller and the Indenture Trustee created hereby (other than obligations
expressly stated to survive the termination of the Issuing Entity) shall
terminate on the date (the "TERMINATION DATE") which is the earlier to occur of:

          (i) the day after the day on which the Notes are paid in full
     (including payment pursuant to Section 11.2 below); and

          (ii) the date that is 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's, living on the date hereof.

     SECTION 11.2 Optional Termination; Clean-up Call.

     (a) On any Payment Date on which the aggregate Scheduled Principal Balance
of the Mortgage Loans as of the last day of the related Due Period is equal to
or less than 20% of the Cut-off Date Balance, the Certificateholder shall have
the option to purchase the Mortgage Loans, any REO Property and any other
property remaining in the Issuing Entity for a price equal to or greater than
the Redemption Price. The Master Servicer and the Servicer will be reimbursed
from the Redemption Price for any outstanding Monthly Advances, Servicing
Advances, unpaid Servicing Fees and other amounts not previously reimbursed
pursuant to the

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provisions of this Agreement, as applicable, and the Securities Administrator,
the Owner Trustee and the Indenture Trustee shall be reimbursed for any
previously unreimbursed amounts for which they are entitled to be reimbursed
pursuant to this Agreement and any other Operative Agreement, the Indenture or
the Owner Trust Agreement, as applicable. If such option is exercised, the
Issuing Entity will be terminated resulting in a mandatory redemption of the
Notes. The Certificateholder shall deliver written notice of its intention to
exercise such option to the Issuing Entity, the Depositor, the Securities
Administrator, the Indenture Trustee and the Master Servicer not less than 30
days prior to the applicable Payment Date.

     In connection with such purchase, the Certificateholder shall cause the
Servicer to remit to the Securities Administrator all amounts then on deposit in
the Custodial Account in respect of the related Servicer Remittance Amount for
deposit to the Payment Account, which deposit shall be deemed to have occurred
immediately preceding such purchase.

     (b) On the Payment Date following the month in which the aggregate
principal balance of the Mortgage Loans as of the last day of the related Due
Period is less than 10% of the Cut-off Date Balance, and if the
Certificateholder has not exercised its option in accordance with Section
11.2(a), the Servicer shall have the option to purchase the Mortgage Loans, any
REO Property and any other property remaining in the Issuing Entity for a price
equal to the greater of (a) 100% of the aggregate Class Principal Amount of the
Notes, plus unpaid interest (including any Deferred Interest, Basis Risk
Shortfall and Deferred Interest Basis Risk Shortfall) through the day before the
final Payment Date and any unpaid administrative expenses of the Issuing Entity
and (b) the aggregate Scheduled Principal Balance of the Mortgage Loans as of
the end of the related Due Period plus any Principal Proceeds and Interest
Proceeds collected during the current Due Period, the amount of any unpaid
Advances and any unpaid administrative expenses of the Issuing Entity. If the
Servicer exercises such option, it shall comply with all of the provisions of
Sections 11.2 and 11.3 that would have been applicable to the Certificateholder
had the Certificateholder exercised its option pursuant to Section 11.2(a). The
Servicer shall deliver written notice of its intention to exercise such option
to the Issuing Entity, the Depositor, the Securities Administrator, the
Indenture Trustee and the Master Servicer not less than 30 days prior to the
applicable Payment Date.

     (c) Promptly following any such purchase pursuant to paragraphs (a) or (b)
of this Section, the Custodian shall release the Mortgage Files to the purchaser
of such Mortgage Loans pursuant to this Section 11.2, or otherwise upon its
order.

     SECTION 11.3 Certain Notices upon Final Payment.

     The Securities Administrator shall give the Issuing Entity, the Indenture
Trustee, the Owner Trustee, each Rating Agency, each Noteholder, the
Certificateholder and the Depositor at least 10 days prior written notice of the
date on which the Issuing Entity is expected to terminate in accordance with
Section 11.1, or the date on which the Notes will be redeemed in accordance with
Section 11.2. Not later than the fifth Business Day in the Due Period in which
the final payment in respect to the Notes is payable to the Noteholders, the
Securities Administrator shall mail to the Noteholders a notice specifying the
procedures with respect to such final payment. The Securities Administrator on
behalf of the Indenture Trustee shall give a copy of such notice to each Rating
Agency at the time such notice is given to the Noteholders. Following the final

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payment thereon, such Notes shall become void, no longer outstanding and no
longer evidence any right or interest in the Mortgage Loans, the Mortgage Files
or any proceeds of the foregoing Amendment.

                                   ARTICLE XII

                                    AMENDMENT

     SECTION 12.1 Without Consent of the Noteholders.

     (a) This Agreement may be amended from time to time by the parties hereto
and the Certificateholder, without notice to or the consent of any of the
Noteholders:

          (i) to cure any ambiguity;

          (ii) to cause the provisions herein to conform to or be consistent
     with or in furtherance of the statements made with respect to the Notes or
     the Certificate, the Issuing Entity or this Agreement in any Prospectus, or
     to correct or supplement any provision herein which may be inconsistent
     with any other provisions herein or in any other Operative Agreement, to
     make any other provisions with respect to matters or questions arising
     under this Agreement;

          (iii) to make any other provision with respect to matters or questions
     arising under this Agreement or;

          (iv) to add, delete, or amend any provisions to the extent necessary
     or desirable to comply with any requirements imposed by the Code or ERISA
     and applicable regulations.

     (b) No such amendment shall be entered into unless the Indenture Trustee
shall have received an Opinion of Counsel (which shall be at the expense of the
party requesting such amendment) acceptable to the holder of the Certificate
stating that as a result of such amendment (i) the Issuing Entity will not be
subject to United States federal income tax at the entity level and (ii) the
Notes, other than the Retained Notes, if any, will not lose their status as debt
for United States federal income tax purposes; nor shall such amendment effected
pursuant to Section 12.1(a)(iii) above adversely affect in any material respect
the interests of any Noteholder, nor shall such amendment be made with respect
to Section 10.2(b) or the corresponding definitions used therein. Prior to
entering into any amendment without the consent of the Noteholders pursuant to
this paragraph, the Indenture Trustee and the Securities Administrator may
require an Opinion of Counsel (at the expense of the party requesting such
amendment) to the effect that such amendment is permitted under this paragraph.
Any such amendment shall be deemed not to adversely affect in any material
respect any Noteholder, if the Indenture Trustee receives written confirmation
from each Rating Agency that such amendment will not cause such Rating Agency to
downgrade, withdraw or qualify the then current rating assigned to the Notes.

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     SECTION 12.2 With Consent.

     This Agreement may also be amended from time to time by the parties hereto,
with the consent of the Noteholders representing 66-2/3% of the Voting Interests
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Notes; provided, however, that no such amendment may,
without the consent of each of the Noteholders of the affected class of Notes,
(i) reduce in any manner the amount of, or delay the timing of, payments which
are required to be made on any class of Notes, without the consent of the
Noteholders of such Class or (ii) reduce the aforesaid percentages of Class
Principal Amount of Notes. No such amendment may be made with respect to Section
10.2(b) or the corresponding definitions used therein without 100% of the Voting
Interests.

     Without the consent of Noteholders representing 100% of the Voting
Interests and the holder of the certificate, no amendment shall be entered under
this section 12.2 unless the Indenture Trustee shall have received an Opinion of
Counsel (which shall be at the expense of the party requesting such amendment
and shall not be at the expense of the Trust Fund) acceptable to the holder of
the Certificate stating that as a result of such amendment (i) the Issuing
Entity will not be subject to United States federal income tax at the entity
level and (ii) the Notes, other than the Retained Notes, if any, will not lose
their status as debt for United States federal income tax purposes.

     SECTION 12.3 Procedure and Notice.

     (a) Promptly after the execution of any such amendment, the Indenture
Trustee shall furnish written notification of the substance of such amendment to
each Noteholder, the Depositor and to each Rating Agency.

     (b) It shall not be necessary for the consent of the Noteholders under this
Section 12.3 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by the Noteholders shall be subject to such reasonable
regulations as the Indenture Trustee may prescribe..

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

     SECTION 13.1 Binding Nature of Agreement.

     This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

     SECTION 13.2 Entire Agreement.

     This Agreement contains the entire agreement and understanding among the
parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of

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any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of the terms hereof.

     SECTION 13.3 Acts of the Noteholders.

     Except as otherwise specifically provided herein, whenever action, consent
or approval by a Noteholder is required under this Agreement, such action,
consent or approval shall be deemed to have been taken or given on behalf of,
and shall be binding upon, all Noteholders if Noteholders representing 66-2/3%
of the Voting Interests agree to take such action or give such consent or
approval.

     SECTION 13.4 Recordation of Agreement.

     To the extent permitted by applicable law, this Agreement, or a memorandum
thereof if permitted under applicable law, is subject to recordation in all
appropriate public offices for real property records in all of the counties or
other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office
or elsewhere, such recordation to be effected by the Depositor on direction and
at the expense of the Noteholders of not less than 66-2/3% of the of the Class
Principal Amount of the Notes and of the Certificateholder requesting such
recordation, but only when accompanied by an Opinion of Counsel to the effect
that such recordation materially and beneficially affects the interests of the
Noteholders, or is necessary for the administration or servicing of the Mortgage
Loans.

     SECTION 13.5 Governing Law.

     This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without reference to its conflict of laws
rules (other than Section 5-1401 of the General Obligations Law, which the
parties hereto expressly rely upon in the choice of such law as the governing
law hereunder) and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws.

     SECTION 13.6 Notices.

     All demands, notices and communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed by overnight courier,
addressed as follows or delivered by facsimile (or such other address as may
hereafter be furnished to the other party by like notice):

          (i)   if to the Seller:

                Mercury Mortgage Finance Statutory Trust,
                101 California Street
                San Francisco, California 94111
                Attention: Christopher J. Zyda
                Telephone: (415) 217-4500
                Facsimile: ______________

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                with a copy to:

                Attention:
                Telephone: () -
                Facsimile: () -

          (ii)  if to the Servicer:
                _____________________________
                _____________________________
                Attn: _______________________
                _____________________________
                Telephone: __________________
                Facsimile: __________________

          (iii) if to the Master Servicer or the Securities Administrator:
                _____________________________
                _____________________________
                _____________________________
                Attn: _______________________
                Telephone: __________________
                Facsimile: __________________

          (iv)  if to the Indenture Trustee:
                _____________________________
                _____________________________
                _____________________________
                Attn: _______________________
                Telephone: __________________
                Facsimile: __________________

          (v)   if to the Depositor:

                Lares Asset Securitization, Inc.

                Attention:
                Telephone: () -
                Facsimile: () -

108

<PAGE>

               with a copy to:

               One Commerce Square
               2005 Market Street
               Philadephia, PA 19103
               Attention: Megan L. Mahoney
               Telephone: (215) 564-5925
               Facsimile: (215) 564-5990

          (vi) if to the Issuing Entity:

               Luminent Mortgage Trust 200_-_
               c/o Proserpine LLC
               One Commerce Square
               2005 Market Street, 21st Floor
               Philadephia, PA 19103
               Attention: Megan L. Mahoney
               Telephone: (215) 564-5925
               Facsimile: (215) 564-5990

     All demands, notices and communications to a party hereunder shall be in
writing and shall be deemed to have been duly given when delivered to such party
at the relevant address, facsimile number or electronic mail address set forth
above or at such other address, facsimile number or electronic mail address as
such party may designate from time to time by written notice in accordance with
this Section 13.6.

     SECTION 13.7 Notice to Rating Agencies.

     (a) The Seller shall give prompt notice to each Rating Agency of the
occurrence of any of the following events of which it has notice:

          (i) any amendment to this Agreement pursuant to Section 12.3;

          (ii) the making of a final payment hereunder.

     (b) All notices to the Rating Agencies provided for by this Section shall
be in writing and sent by first class mail, telecopy or overnight courier, as
follows:

               if to Moody's:

               Moody's Investors Service, Inc.
               99 Church Street
               New York, New York 10004
               Facsimile: (212) 553-4392

               if to S&P:

109

<PAGE>

               Standard & Poor's Ratings Service, a division
               of the McGraw-Hill Companies, Inc.
               55 Water Street
               New York, New York 10041
               Facsimile: (212) 438-2661

     The Securities Administrator shall make available to the Rating Agencies
each Payment Date Report prepared pursuant to Section 5.5.

     SECTION 13.8 Severability of Provisions.

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

     SECTION 13.9 Indulgences; No Waivers.

     Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other
right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No
waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     SECTION 13.10 Headings Not To Affect Interpretation.

     The headings contained in this Agreement are for convenience of reference
only, and they shall not be used in the interpretation hereof.

     SECTION 13.11 Benefits of Agreement.

     Nothing in this Agreement or in the Notes or the Certificate, express or
implied, shall give to any Person, other than the parties to this Agreement and
their successors hereunder and the Noteholders and the Certificateholder, any
benefit or any legal or equitable right, power, remedy or claim under this
Agreement. Notwithstanding the foregoing, the Owner Trustee shall be an express
third-party beneficiary of this Agreement.

     SECTION 13.12 Counterparts.

     This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, and all of which together shall constitute
one and the same instrument.

110

<PAGE>

     SECTION 13.13 Execution by the Issuing Entity; Closing Certifications.

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

     The Depositor may make any certifications of the Issuing Entity and
required under the Indenture on and as of the Closing Date in connection with
the issuance of the Notes.

                            [SIGNATURE PAGE FOLLOWS]

111

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused their names to be signed
hereto by their respective officers hereunto duly authorized as of the day and
year first above written.

                                        LUMINENT MORTGAGE TRUST 200_-_, as
                                        Issuing Entity

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

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

                                        LARES ASSET SECURITIZATION, INC., as
                                        Depositor

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

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

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

                                        ---------------------------------------,
                                        as Securities Administrator and
                                        Master Servicer

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

                       [TRANSFER AND SERVICING AGREEMENT]

<PAGE>

                                        MERCURY MORTGAGE FINANCE STATUTORY
                                        TRUST, as Seller

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

                                        ---------------------------------------,
                                        as Servicer

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

                       [TRANSFER AND SERVICING AGREEMENT]

<PAGE>

                                    EXHIBIT A

                  INFORMATION FIELDS FOR MORTGAGE LOAN SCHEDULE

     Each Mortgage Loan Schedule shall set forth, among other things, the
following information with respect to each Mortgage Loan:

1.   the Loan identification number;

2.   the applicable Cut-off Date;

3.   the zip code of the Mortgaged Property;

4.   a code indicating whether the Mortgaged Property is a single family
     residence, duplex, three to four-family residence, planned unit development
     or condominium;

5.   the current Mortgage Rate;

6.   the current Scheduled Monthly Payment;

7.   the original term to maturity;

8.   the scheduled maturity date;

9.   the principal balance of the Mortgage Loan as of the Cut-off Date after
     deduction of payments of principal due on or before the Cut-off Date
     whether or not collected;

10.  the Original Loan-to-Value Ratio;66

11.  the credit score of the Mortgagor at the time of origination;

12.  a code indicating the credit grade and specific loan/underwriting program
     of each Mortgage Loan as assigned by the Issuing Entity;

13.  the date on which the first Scheduled Monthly Payment was due and the
     applicable Due Date;

14.  the date on which the next payment is due;

15.  the documentation level (full, alternative, limited, etc.);

16.  loan purpose (i.e., purchase, rate/term refinancing, cash-out refinancing);

17.  a code indicating whether the Mortgaged Property is owner-occupied,
     non-owner occupied property, or a second home;

18.  a code indicating the product type (e.g., 2/28, 3/27, 15 year fixed, etc.);

19.  a code indicating whether the Mortgage Loan is subject to a Prepayment
     Premium;

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<PAGE>

20.  the term of any Prepayment Premium;

21.  the type and amount of any Prepayment Premium;

22.  with respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

23.  with respect to each Adjustable Rate Mortgage Loan, the next Adjustment
     Date;

24.  with respect to each Adjustable Rate Mortgage Loan, the lifetime maximum
     Mortgage Interest Rate;

25.  with respect to each Adjustable Rate Mortgage Loan, the lifetime minimum
     Mortgage Interest Rate;

26.  with respect to each Adjustable Rate Mortgage Loan, the periodic Mortgage
     Interest Rate cap;

27.  with respect to each Adjustable Rate Mortgage Loan, the Index;

28.  a code indicating whether the Mortgage Loan is an adjustable rate or fixed
     rate mortgage loan;

29.  a code indicating whether the Mortgage Loan is a balloon loan; and

30.  a code indicating whether the Mortgage Loan is a "high cost" (or similarly
     classified) loan under applicable federal, state and local laws.

     With respect to the Mortgage Loans in the aggregate in the related Mortgage
Loan Package, the respective Mortgage Loan Schedule shall set forth the
following information, as of the Cut-off Date:

1.   the number of Mortgage Loans;

2.   the current aggregate outstanding principal balance of the Mortgage Loans;

3.   the current weighted average Mortgage Interest Rate of the Mortgage Loans;
     and

4.   the weighted average months to maturity of the Mortgage Loans.

A-2

<PAGE>

                                    EXHIBIT B

                         CONTENTS OF EACH MORTGAGE FILE

     With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items delivered to the Custodian, portions of which may be held by
the Servicer in the Servicing File:

     (a)

          (i) The original Mortgage Note endorsed in blank or "Pay to the order
     of ___________________________, as indenture trustee (the "INDENTURE
     TRUSTEE") under the Transfer and Servicing Agreement, dated as of
     ____________________1, 200_, by and among Lares Asset Securitization, Inc.,
     as Depositor, the Indenture Trustee, __________________, as Securities
     Administrator and Master Servicer, Luminent Mortgage Trust 200_-_, as
     Issuing Entity, _____________________, as Servicer, and , as Seller
     relating to Luminent Mortgage Trust 200_-_ Mortgage-Backed Securities,
     without recourse" and signed in the name of the Seller by an Authorized
     Officer (provided, in the event that the Mortgage Loan was acquired by the
     Seller in a merger, the signature must be in the following form: "[Seller],
     successor by merger to [name of predecessor]"; and in the event that the
     Mortgage Loan was acquired or originated by the Seller while doing business
     under another name, the signature must be in the following form: "[Seller],
     formerly known as [previous name]"). The Mortgage Note must contain all
     necessary intervening endorsements showing a complete chain of endorsement
     from the originator (each such endorsement being sufficient to transfer all
     right, title and interest of the party so endorsing, as the holder of the
     Mortgage Note or assignee thereof, in and to that Mortgage Note); or

          With respect to no more than 1% of the Cut-off Date Balance, a
     certified copy of the Mortgage Note (endorsed as provided above) together
     with a lost note affidavit, providing indemnification to the holder thereof
     for any losses incurred due to the fact that the original Mortgage Note is
     missing.

          (ii) The original of any guarantee executed in connection with the
     Mortgage Note (if any).

          (iii) The original Mortgage, with evidence of recording thereon,
     except as follows: If in connection with any Mortgage Loan, the Seller
     cannot deliver or cause to be delivered the original Mortgage with evidence
     of recording thereon on or prior to the Closing Date because of a delay
     caused by the public recording office where such Mortgage has been
     delivered for recordation or because such Mortgage has been lost or because
     such public recording office retains the original recorded Mortgage, the
     Seller shall deliver or cause to be delivered to the Custodian, a photocopy
     of such Mortgage, together with (a) in the case of a delay caused by the
     public recording office, an Officer's Certificate of the Seller stating
     that such Mortgage has been dispatched to the appropriate public recording
     office for recordation and that the original recorded Mortgage or a copy

B-1

<PAGE>

     of such Mortgage certified by such public recording office to be a true and
     complete copy of the original recorded Mortgage will be promptly delivered
     to the Custodian upon receipt thereof by the Seller; or (b) in the case of
     a Mortgage where a public recording office retains the original recorded
     Mortgage or in the case where a Mortgage is lost after recordation in a
     public recording office, a copy of such Mortgage certified by such public
     recording office or by the title insurance company that issued the title
     policy to be a true and complete copy of the original recorded Mortgage.

          (iv) The originals or certified true copies of any document sent for
     recordation of all assumption, modification, consolidation or extension
     agreements, with evidence of recording thereon, or, if the original of any
     such agreement with evidence of recording thereon has not been returned by
     the public recording office where such agreement has been delivered for
     recordation or such agreement has been lost or such public recording office
     retains the original recorded agreement, a photocopy of such agreement,
     certified by the Seller or its agent to be a true and correct copy of the
     agreement delivered to the appropriate public recording office for
     recordation. The original recorded agreement or, in the case of a agreement
     where a public recording office retains the original recorded agreement or
     in the case where an agreement is lost after recordation in a public
     recording office, a copy of such agreement certified by such public
     recording office to be a true and complete copy of the original recorded
     agreement, will be promptly delivered to the Custodian upon receipt thereof
     by the Seller.

          (v) The original Assignment of Mortgage, in blank, for each Mortgage
     Loan, in form and substance acceptable for recording (except for the
     insertion of the name of the assignee and recording information). If the
     Mortgage Loan was acquired by the Seller in a merger, the Assignment of
     Mortgage must be made by "[Seller], successor by merger to [name of
     predecessor]." If the Mortgage Loan was acquired or originated by the
     Seller while doing business under another name, the Assignment of Mortgage
     must be made by "[Seller], formerly know as [previous name]." Subject to
     the foregoing and where permitted under the applicable laws of the
     jurisdiction wherein the Mortgaged property is located, such Assignments of
     Mortgage may be made by blanket assignments for Mortgage Loans secured by
     the Mortgaged Properties located in the same county. If the related
     Mortgage has been recorded in the name of MERS or its designee, no
     Assignment of Mortgage will be required to be prepared or delivered and
     instead, the Seller shall take all actions as are necessary to cause the
     Custodian to be shown as the owner of the related Mortgage Loan on the
     records of MERS for purposes of the system of recording transfers of
     beneficial ownership of mortgages maintained by MERS.

          (vi) For any Mortgage Loan not recorded in the name of MERS, originals
     or certified true copies of documents sent for recordation of all
     intervening assignments of the Mortgage with evidence of recording thereon,
     or if any such intervening assignment has not been returned from the
     applicable recording office or has been lost or if such public recording
     office retains the original recorded assignments of mortgage, the Seller
     shall deliver or cause to be delivered to the Custodian, a photocopy of
     such intervening assignment, together with (i) in the case of a delay
     caused by the public recording office, an Officer's Certificate of the
     Seller stating that such intervening assignment of Mortgage has been
     dispatched to the appropriate public recording office for recordation and
     that

B-2

<PAGE>

     such original recorded intervening assignment of Mortgage or a copy of such
     intervening assignment of Mortgage certified by the appropriate public
     recording office or by the title insurance company that issued the title
     policy to be a true and complete copy of the original recorded intervening
     assignment of Mortgage will be promptly delivered to the Custodian upon
     receipt thereof by the Seller; or (ii) in the case of an intervening
     assignment where a public recording office retains the original recorded
     intervening assignment of Mortgage or in the case where an intervening
     assignment of Mortgage is lost after recordation in a public recording
     office, a copy of such intervening assignment of Mortgage certified by such
     public recording office to be a true and complete copy of the original
     recorded intervening assignment of Mortgage.

          (vii) The original private mortgage insurance policy where required
     pursuant to the Agreement.

          (viii) The original mortgagee policy of title insurance in the form
     required by the Agreement or, if the original lender's title insurance
     policy has not been issued, the preliminary report or irrevocable binder or
     commitment to issue the same.

          (ix) Any security agreement, chattel mortgage or equivalent executed
     in connection with the Mortgage.

          (x) For each Mortgage Loan which is secured by a residential long-term
     lease, if any, a copy of the lease with evidence of recording indicated
     thereon, or, if the lease is in the process of being recorded, a photocopy
     of the lease, certified by an officer of the respective prior owner of such
     Mortgage Loan or by the applicable title insurance company,
     closing/settlement/escrow agent or company or closing attorney to be a true
     and correct copy of the lease transmitted for recordation.

     (b) With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items to the extent required in the Underwriting
Guidelines:

          (i) The original hazard insurance policy and, if required by law,
     flood insurance policy.

          (ii) Fully executed residential loan application.

          (iii) Fully executed Mortgage Loan closing statement (i.e, a Form
     HUD-1) and any other truth-in-lending or real estate settlement procedure
     forms required by law.

          (iv) Verification of employment and income (if required pursuant to
     the Underwriting Guidelines).

          (v) Verification of acceptable evidence of source and amount of down
     payment.

          (vi) Credit report on the Mortgagor.

          (vii) Residential appraisal report.

B-3

<PAGE>

          (viii) Photograph of the Mortgaged Property.

          (ix) Survey of the Mortgaged Property, if required by the title
     company or applicable law.

          (x) Copy of each instrument necessary to complete identification of
     any exception set forth in the exception schedule in the title policy
     (i.e., map or plat, restrictions, easements, sewer agreements, home
     association declarations, etc.).

          (xi) All fully executed required disclosure statements required by
     state and federal law.

          (xii) If applicable, termite report, structural engineer's report,
     water potability and septic certification.

          (xiii) Sales contract, if applicable.

          (xiv) Evidence of payment of taxes and insurance premiums, insurance
     claim files, correspondence, current and historical computerized data
     files, and all other processing, underwriting and closing papers and
     records which are customarily contained in a mortgage file and which are
     required to document the Mortgage Loan or to service the Mortgage Loan.

          (xv) Amortization schedule, if available.

          (xvi) Payment history for any Mortgage Loan that has been closed for
     more than 90 days.

          (xvii) Fully executed power of attorney, if applicable.

     In the event of a delay by the public recording office in returning any
recorded document, the Seller shall deliver to the Custodian, within 180 days of
the Closing Date, an Officer's Certificate which shall (i) identify the recorded
document, (ii) state that the recorded document has not been delivered to the
Custodian due solely to a delay caused by the public recording office, (iii)
state the amount of time generally required by the applicable recording office
to record and return a document submitted for recordation, and (iv) specify the
date the applicable recorded document will be delivered to the Custodian. The
Seller shall be required to deliver to the Custodian the applicable recorded
document by the date specified in (iv) above. An extension of the date specified
in (iv) above may be requested form the Custodian, which consent shall not be
unreasonably withheld.

B-4

<PAGE>

                                    EXHIBIT C

                           FORM OF REQUEST FOR RELEASE

[Name of Custodian]
[Address of Custodian]

In connection with the administration of the mortgages held by you as Custodian
under that certain Custodial Agreement, dated as of ________________ (the
"CUSTODIAL AGREEMENT"), among ________________, as custodian (the "CUSTODIAN"),
Luminent Mortgage Trust 200_-_, as Depositor (the "DEPOSITOR"), and
________________, as the trustee (the "TRUSTEE"), the [Master Servicer]
[Servicer] hereby requests a release of the Mortgage File held by you as
Custodian with respect to the following described Mortgage Loan for the reason
indicated below.

     Mortgagor's Name:

     Address:

     Loan No.:

     Reason for requesting file:

1. Mortgage Loan paid in full. The [Master Servicer] [Servicer] hereby certifies
that all amounts received in connection with the loan have been credited to the
[Custodial Account] [Payment Account] pursuant to the Transfer and Servicing
Agreement.

2. Mortgage Loan foreclosed. The [Master Servicer] [Servicer] hereby certifies
that the above reference Mortgage Loan is or will be subject to a foreclosure
proceeding in accordance with the Transfer and Servicing Agreement.

3. Mortgage Loan substituted. The [Master Servicer] [Servicer] hereby certifies
that a Qualified Substitute Mortgage Loan has been assigned and delivered to you
along with the related Mortgage File pursuant to the Transfer and Servicing
Agreement.

4. Mortgage Loan repurchased. The [Master Servicer] [Servicer] hereby certifies
that the Repurchase Amount has been credited to the Payment Account pursuant to
the Transfer and Servicing Agreement.

5. Other. [_]

The undersigned acknowledges that the above Mortgage File will be held by the
undersigned in accordance with the provisions of the Transfer and Servicing
Agreement and will be returned to you within ten (10) days of our receipt of
such Mortgage File, except if the Mortgage Loan has been paid in full,
repurchased or substituted for a Qualified Substitute Mortgage Loan (in which
case the Mortgage File will be retained by us permanently) and except if the
Mortgage Loan is being foreclosed (in which case the Mortgage File will be
returned when no longer required by us for such purpose).

C-1

<PAGE>

Capitalized terms used herein shall have the meanings ascribed to them in the
Custodial Agreement.

                                        [_],

                                        as [Master Servicer] [Servicer]

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

C-2

<PAGE>

                                    EXHIBIT D

                        FORM OF REALIZED LOSSES AND GAINS

The numbers on the form correspond with the numbers listed below.

Liquidation and Acquisition Expenses:

1.     The Actual Unpaid Principal Balance of the Mortgage Loan. For
       documentation, an Amortization Schedule from date of default through
       liquidation breaking out the net interest and servicing fees advanced is
       required.

2.     The Total Interest Due less the aggregate amount of servicing fee that
       would have been earned if all delinquent payments had been made as
       agreed. For documentation, an Amortization Schedule from date of default
       through liquidation breaking out the net interest and servicing fees
       advanced is required.

3.     Accrued Servicing Fees based upon the Scheduled Principal Balance of the
       Mortgage Loan as calculated on a monthly basis. For documentation, an
       Amortization Schedule from date of default through liquidation breaking
       out the net interest and servicing fees advanced is required.

4-12.  Complete as applicable. All line entries must be supported by copies of
       appropriate statements, vouchers, receipts, bills, canceled checks, etc.,
       to document the expense. Entries not properly documented will not be
       reimbursed to the Servicer.

13.    THE TOTAL OF LINES 1 THOUGH 12

Credits:

14-21. Complete as applicable. All line entries must be supported by copies of
       the appropriate claims forms, EOBs, HUD-1 and/or other proceeds
       verification, statements, payment checks, etc. to document the credit. If
       the Mortgage Loan is subject to a Bankruptcy Deficiency, the difference
       between the Unpaid Principal Balance of the Note prior to the Bankruptcy
       Deficiency and the Unpaid Principal Balance as reduced by the Bankruptcy
       Deficiency should be input on line 20.

22.    The total of lines 14 through 21.

Please note: For HUD/VA loans, use line (15) for Part A/Initial proceeds and
             line (16) for Part B/Supplemental proceeds

Total Realized Loss (or Amount of Any Gain)

23.    The total derived from subtracting line 22 from 13. If the amount
       represents a realized gain, show the amount in parenthesis ( ).

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

                 (C) Copyright Wells Fargo Bank, Corporate Trust Services

D-1

<PAGE>

                        CALCULATION OF REALIZED LOSS/GAIN

Prepared by: ________________                              Date: _______________
Phone: ______________________   Email Address:_____________________

Servicer Loan No. ________   Servicer Name _________   Servicer Address ________

WELLS FARGO BANK, N.A. Loan No._____________________________
Borrower's Name:________________________________________________________
Property Address:_______________________________________________________________

LIQUIDATION AND ACQUISITION EXPENSES:
(1)  Actual Unpaid Principal Balance of Mortgage Loan        $______________(1)
(2)  Interest accrued at Net Rate                             ______________(2)
(3)  Accrued Servicing Fees                                   ______________(3)
(4)  Attorney's Fees                                          ______________(4)
(5)  Taxes                                                    ______________(5)
(6)  Property Maintenance                                     ______________(6)
(7)  MI/Hazard Insurance Premiums                             ______________(7)
(8)  Utility Expenses                                         ______________(8)
(9)  Appraisal/BPO                                            ______________(9)
(10) Property Inspections                                     ______________(10)
(11) FC Costs/Other Legal Expenses                            ______________(11)
(12) Other (itemize)                                         $______________(12)
        Cash for Keys__________________________               ______________
        HOA/Condo Fees_________________________               ______________
        _______________________________________               ______________
        _______________________________________               ______________
        TOTAL EXPENSES                                       $______________(13)

CREDITS:
(14) Escrow Balance                                          $______________(14)
(15) HIP Refund                                               ______________(15)
(16) Rental Receipts                                          ______________(16)
(17) Hazard Loss Proceeds                                     ______________(17)
(18) Primary Mortgage Insurance Proceeds                      ______________(18)
(19) Pool Insurance Proceeds                                  ______________(19)
(20) Proceeds from Sale of Acquired Property                  ______________(20)
(21) Other (itemize)                                          ______________(21)
     __________________________________________               ______________
     __________________________________________               ______________
     TOTAL CREDITS                                           $______________(22)

TOTAL REALIZED LOSS (OR AMOUNT OF GAIN)                      $______________(23)

   PLEASE BE ADVISED THAT FAILURE TO COMPLY WITH ANY OR ALL OF THE GUIDELINES
         ENTAILED HEREIN MAY RESULT IN ISSUANCE OF LATE REPORTING FEES.
            (C) Copyright Wells Fargo Bank, Corporate Trust Services
        Contact us with Reporting Questions: CTSDefaultSRG@WellsFargo.com

D-2

<PAGE>

                                    EXHIBIT E

                STANDARD LAYOUT FOR MONTHLY DEFAULTED LOAN REPORT

E-1

<PAGE>

                                    EXHIBIT F

                           CREDIT REPORTING PROCEDURE

"Full-file" reporting requires that the Servicer submit a monthly report to each
of the credit repositories to describe the exact status for each Mortgage
Loan.(1) The status reported generally should be the one in effect as of the
last business day of each month.

The Servicer may, however, use a slightly later cut-off date -- for example, at
the and of the first week of a month -- to assure that payment corrections,
returned checks, and other adjustments related to the previous month's activity
can be appropriately reflected in their report for that month. Statuses that
must be reported for any given mortgage include the following: new origination,
current, delinquent (30-, 60-, 90-days, etc.), foreclosed, and charged-off. (The
credit repositories will provide the applicable codes for reporting these
statuses to them.) A listing of each of the major repositories to which
"full-file" status reports must be sent is attached.

The Servicer is responsible for the complete and accurate reporting of mortgage
status information to the repositories and for resolving any disputes that arise
about the information they report. The Servicer must respond promptly to any
inquiries from mortgagors regarding specific mortgage status information about
them that was reported to the credit repositories.

----------
(1)  Based upon Fannie Mae Guide Announcement 95-19.

F-1

<PAGE>

                            Major Credit Repositories

A "full-file" status report for each Mortgage Loan serviced for Fannie Mae must
be sent to the following repositories each month:

Company                                 Telephone Number
Consumer Credit Associates, Inc.        Call (713) 595-1190, either extension
Threadneedle Street, Suite 200          950, 150, 101, or 112, for all
Houston, Texas 77079-2903               inquiries.

Equifax                                 Members that have an account number may
                                        call their local sales representative
                                        for all inquiries; lenders that need to
                                        set up an account should call (800)
                                        685-5000 and select the customer
                                        assistance option.

TRW Information Systems & Services      Call (800) 831-5614 for all inquiries,
601 TRW Parkway                         current members should select option 3;
Allen, Texas 75002                      lenders that need to set up an account
                                        should select Option 4.

Trans Union Corporation                 Call (312) 258-1818 to get the name of
555 West Adams                          the local bureau to contact about
Chicago, Illinois 60661                 setting up an account or obtaining other
                                        information.

F-2

<PAGE>

                                  EXHIBIT 1122

      Assessments of Compliance and Attestation Reports Servicing Criteria*

<TABLE>
<CAPTION>
                                                                                                Paying    Master      Securities
Reg. AB Item 1122(d) Servicing Criteria   Depositor   Seller   Servicer   Trustee   Custodian    Agent   Servicer   Administrator
---------------------------------------   ---------   ------   --------   -------   ---------   ------   --------   -------------
<S>                                       <C>         <C>          <C>      <C>        <C>      <C>         <C>          <C>
(1)  General Servicing Considerations

     (i)   monitoring performance or                               X                                        [X]          [X]
           other triggers and events of
           default

     (ii)  monitoring performance of                               X
           vendors of activities
           outsourced

     (iii) maintenance of back-up                                                                           [X]          [X]
           servicer for pool assets

     (iv)  fidelity bond and E&O                                   X        [X]        [X]                  [X]
           policies in effect

(2)  Cash Collection and Administration

     (i)    timing of deposits to                                  X                              [X]       [X]          [X]
            custodial account
</TABLE>

----------
*    The descriptions of the Item 1122(d) servicing criteria use key words and
     phrases and are not verbatim recitations of the servicing criteria. Refer
     to Regulation AB, Item 1122 for a full description of servicing criteria.

<PAGE>

<TABLE>
<CAPTION>
                                                                                                Paying    Master      Securities
Reg. AB Item 1122(d) Servicing Criteria   Depositor   Seller   Servicer   Trustee   Custodian    Agent   Servicer   Administrator
---------------------------------------   ---------   ------   --------   -------   ---------   ------   --------   -------------
<S>                                          <C>        <C>       <C>       <C>        <C>        <C>       <C>          <C>
     (ii)   wire transfers to investors                            X                              [X]                    [X]
            by authorized personnel

     (iii)  advances or guarantees                                 X                                        [X]
            made, reviewed and approved
            as required

     (iv)   accounts maintained as                                 X                              [X]       [X]          [X]
            required

     (v)    accounts at federally                                  X                              [X]       [X]          [X]
            insured depository
            institutions

     (vi)   unissued checks safeguarded                           [X]                             [X]                    [X]

     (vii)  monthly reconciliations of                             X                              [X]       [X]          [X]
            accounts

(3)  Investor Remittances and Reporting

     (i)    investor reports                                                                      [X]       [X]          [X]

     (ii)   remittances                                           [X]                             [X]                    [X]

     (iii)  proper posting of                                     [X]                             [X]                    [X]
            distributions

     (iv)   reconciliation of                                                                     [X]       [X]          [X]
            remittances and payment
            statements
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                                Paying    Master      Securities
Reg. AB Item 1122(d) Servicing Criteria   Depositor   Seller   Servicer   Trustee   Custodian    Agent   Servicer   Administrator
---------------------------------------   ---------   ------   --------   -------   ---------   ------   --------   -------------
<S>                                          <C>        <C>       <C>      <C>         <C>        <C>       <C>          <C>
(4)  Pool Asset Administration

     (i)    maintenance of pool                                   [X]                  [X]
            collateral

     (ii)   safeguarding of pool                                   X         X          X
            assets/documents

     (iii)  additions, removals and           X          X        [X]       [X]        [X]                  [X]
            substitutions of pool
            assets

     (iv)   posting and allocation of                              X
            pool asset payments to pool
            assets

     (v)    reconciliation of servicer                             X
            records

     (vi)   modifications or other                                 X                                        [X]
            changes to terms of pool
            assets

     (vii)  loss mitigation and                                    X
            recovery actions

     (viii) records regarding                                      X
            collection efforts

     (ix)   adjustments to variable                                X
            interest rates on pool
            assets
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                                Paying    Master      Securities
Reg. AB Item 1122(d) Servicing Criteria   Depositor   Seller   Servicer   Trustee   Custodian    Agent   Servicer   Administrator
---------------------------------------   ---------   ------   --------   -------   ---------   ------   --------   -------------
<S>                                          <C>        <C>        <C>      <C>        <C>        <C>       <C>          <C>
     (x)    matters relating to funds                              X
            held in trust for obligors

     (xi)   payments made on behalf of                             X
            obligors (such as for taxes
            or insurance)

     (xii)  late payment penalties with                            X
            respect to payments made on
            behalf of obligors

     (xiii) records with respect to                                X
            payments made on behalf of
            obligors

     (xiv)  recognition and recording                              X
            of delinquencies,
            charge-offs and
            uncollectible accounts

     (xv)   maintenance of external          [X]        [X]                                       [X]                    [X]
            credit enhancement or other
            support
</TABLE>

<PAGE>

                                                                     EXHIBIT SOX

                                   CERTIFICATE

     THIS CERTIFICATE is being delivered pursuant to that certain Transfer and
Servicing Agreement dated as of ______, 200_, with respect to Luminent Mortgage
Trust 200_-_, Mortgage-Backed Notes, Series 200_-_ (the "Agreement").

     I am the [title/office] of [Responsible Party] (the ["Company" or
"Servicer"]) and, in such capacity, the officer in charge of the
[Company's/Servicer's] performance of the Servicing Criteria identified as the
[Company's/Servicer's] responsibility on Exhibit 1122 to the Agreement. I hereby
certify as follows (capitalized terms used and not otherwise defined herein have
the meanings assigned in the Agreement):

     1. I have reviewed the (a) Compliance Statement of the [Company/Servicer],
(b) the Assessment of Compliance of the [Company/Servicer], (c) the related
Attestation Report, and (d) all other reports, data or information provided [by
the Company/Servicer] to the Securities Administrator during the preceding
calendar year relating to the performance of the [Company/Servicer] under the
terms of the Agreement (collectively, the "[Company/ Servicer] Information");

     2. Based on my knowledge, the [Company/Servicer] Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
period covered by the [Company/Servicer] Information;

     3. Based on my knowledge, all of the [Company/Servicer] Information
required to be provided by the [Company/Servicer] under the Agreement has been
provided to the Securities Administrator ;

     4. I am responsible for reviewing the activities performed by the
[Company/Servicer] under the Agreement, and based on my knowledge and the
compliance review conducted in preparing the Compliance Statement, and except as
disclosed in the Compliance Statement, the Assessment of Compliance or the
Attestation Report, the Company has fulfilled its obligations under the
Agreement in all material respects; and

     5. The Compliance Statement, the Assessment of Compliance and the
Attestation Report required to be provided by the [Company/Servicer] pursuant to
the Agreement have been provided to Securities Administrator. Any material
instances of noncompliance described in such reports have been disclosed to the
Securities Administrator. Any material instance of noncompliance with the
Servicing Criteria has been disclosed in such reports.

Date:
      ------------

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

SOX-1

<PAGE>

                                   SCHEDULE A

                             MORTGAGE LOAN SCHEDULE

Schedule A-1

<PAGE>

                                   SCHEDULE B

     With respect to each Assignment Agreement, the Seller hereby makes the
representation that with respect to each representation and warranty with
respect to any Mortgage Loan made by the related Originator that is made as of
[___] no event has occurred in respect of the Mortgage Loans since such date
that would render such representations and warranties to be untrue in any
material respect as of the Closing Date.

Schedule B-1

<PAGE>

                                   SCHEDULE C

                                  LIBOR FORMULA

     With respect to each Payment Date, one-month LIBOR will equal the interbank
offered rate for one-month United States dollar deposits in the London market as
quoted on Telerate Page 3750 as of 11:00 A.M., London time, on the second LIBOR
Business Day prior to the first day of the related Interest Accrual Period.
Telerate Page 3750 means the display designated as page 3750 on the Bridge
Telerate, or any other page as may replace page 3750 on that service for the
purpose of displaying London interbank offered rates of major banks. If the rate
does not appear on the page or any other page as may replace that page on that
service (or if that service is no longer offered, any other service for
displaying LIBOR or comparable rates as may be selected by the Securities
Administrator after consultation with the Depositor), the rate will be the
reference bank rate.

     The reference bank rate will be determined on the basis of the rates at
which deposits in U.S. Dollars are offered by the reference banks, which shall
be three major banks that are engaged in transactions in the London interbank
market, selected by the Securities Administrator after consultation with the
Depositor, as of 11:00 A.M., London time, on the day that is two LIBOR Business
Days prior to the first day of the related Interest Accrual Period to prime
banks in the London interbank market for a period of one month in amounts
approximately equal to the aggregate Class Principal Amounts of the Offered
Notes. The Securities Administrator will request the principal London office of
each of the reference banks to provide a quotation of its rate. If at least two
quotations are provided, the rate will be the arithmetic mean of the quotations.
If on the related date fewer than two quotations are provided as requested, the
rate will be the arithmetic mean of the rates quoted by one or more major banks
in New York City, selected by the Securities Administrator after consultation
with the Depositor, as of 11:00 A.M., New York City time, on the date for loans
in U.S. Dollars to leading European banks for a period of one month in amounts
approximately equal to the aggregate Class Principal Amounts of the Offered
Notes. If no quotations can be obtained, the rate will be one-month LIBOR for
the prior Payment Date.

     "LIBOR Business Day" means any day other than a Saturday or a Sunday or a
day on which banking institutions in the city of London, England are required or
authorized by law to be closed.

Schedule C-1

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