Document:

exh411.htm

    Exhibit 4.11

      This instrument
prepared by and

      after recording should be mailed
to:

       

      

      Wayne F.
Osoba

      Foley & Lardner
LLP

      321 North Clark
Street

      Suite
2800

      Chicago,
IL  60654-5313

       

       

       

      

      
        	
                 

                 

                 

                The Peoples
      Gas Light and Coke Company

                 

                to

                 

                U.S.
      Bank National Association

                 

                Trustee

                 

                Supplemental
      Indenture

                 

                Dated as of
      September 1, 2009

                 

                First and
      Refunding Mortgage 4.63% Bonds, Series UU

                 

                 

                 

              

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Table
of Contents

       

       

      
      

       

      
        	 	 	 	
                 Page

              
	 	 	 	 
	 ARTICLE I FIRST AND
      REFUNDING MORTGAGE 4.63% BONDS, SERIES
      UU	
                 9

              
	 	Section
      1.	
                 Designation, Maturity
      and Interest Rate of
      Bonds

              	
                 9

              
	 	Section
      2.	 Issuance of
      Bonds	
                 9

              
	 	Section
      3.	 Exchanges of
      Bonds	
                 10

              
	 	Section
      4.	
                 Execution and
      Authentication of
      Bonds

              	
                 10

              
	 	Section
      5.	 Redemption of Bonds by
      Company	
                 11

              
	 	Section
      6.	 Notice of
      Redemption	
                 13

              
	 	Section
      7.	 Form of
      Bonds	
                 14

              
	 	Section
      8.	 Definitions	
                 14

              
	 	Section
      9.	 Date of
      Payments	
                 16

              
	 	Section
      10.	 Reservation of Right to
      Amend
      Mortgage	
                 16

              
	 	Section
      11.	 Private Placement of
      Bonds	
                 18

              
	 	Section
      12.	 Private Placement
      Legend	
                 18

              
	 	 	 	 
	 ARTICLE II COVENANTS OF
      THE
      COMPANY	
                 18

              
	 	

                Section
      1.

              	 Covenants of Company
      under
      Indenture	
                 18

              
	 	Section
      2.	 After-Acquired Property
      Subject to
      Mortgage	
                 27

              
	 	Section
      3.	 Documents to Furnish
      Upon Acquisition of
      Land	
                 27

              
	 	Section
      4.	 Discharge of Prior
      Liens	
                 29

              
	 	 	 	 
	 ARTICLE III
      MISCELLANEOUS	
                 29

              
	 	Section
      1.	 Trustee’s
      Acceptance	
                 29

              
	 	Section
      2.	 Execution of
      Supplemental
      Indenture	
                 29

              
	 	Section
      3.	 Assignment	
                 30

              
	 	Section
      4.	 Effective Time of
      Supplemental
      Indenture	
                 30

              
	
                 

              	Section
      5.	 Governing
      Law	
                 30

              
	 	Section
      6.	 Counterparts	
                 30

              

      

       

      
        
           
-i-

        

        
           

          
            

          

        

        
           

        

      

      This Supplemental
Indenture, dated as of September 1, 2009, made and entered into by and between
The Peoples Gas Light and Coke Company, a corporation organized and existing
under the laws of the State of Illinois (hereinafter called the “Company”) and U.S. Bank
National Association (hereinafter called the “Trustee”), a corporation
organized and existing under the laws of the United States of America and
successor to Illinois Merchants Trust Company, as trustee under the indenture of
Chicago By-Product Coke Company to said Illinois Merchants Trust Company, as
trustee, dated January 2, 1926.

       

      Witnesseth:

       

      Whereas, Chicago
By-Product Coke Company, a corporation organized and existing under the laws of
the State of Delaware, heretofore gave its mortgage in the form of an indenture
(hereinafter called the “Original Mortgage”) to
Illinois Merchants Trust Company, as trustee, under date of the second day of
January, 1926; and

       

      Whereas, the
Company executed and delivered to said Illinois Merchants Trust Company, as
trustee under the Original Mortgage, an indenture bearing date the first day of
March, 1928, whereby, among other things, the Company assumed and agreed to pay
the principal and interest of all bonds issued or to be issued under the
Original Mortgage and secured thereby, and to perform and fulfill all of the
terms, covenants, and conditions of the Original Mortgage binding upon said
Chicago By-Product Coke Company, and in and by said indenture the Company
subjected to the lien of the Original Mortgage, subject to the existing liens
permitted by Section 2 of Article XIV of the Original Mortgage but with
statements required by said Section 2 with regard to such existing liens, all of
the property then owned by the Company or thereafter acquired by it (excepting
such of its property as the Company was by said Section 2 of Article XIV of the
Original Mortgage expressly authorized to reserve from the lien of the Original
Mortgage); and

       

      Whereas, by virtue
of all the things done as in the next preceding paragraph recited, the Company
has become the successor corporation under the Original Mortgage, subject to all
the terms, conditions and restrictions thereof; and

       

      Whereas, thereafter
the Company has made, executed and delivered other indentures supplemental to
the Original Mortgage, of which the indentures supplemental to the Original
Mortgage delivered to U.S. Bank National Association, as Trustee, successor to
Illinois Merchants Trust Company, as Trustee under the Original Mortgage, dated,
respectively, May 20, 1936, March 10, 1950, as of June 1, 1951,
as of August 15, 1967, as of September 15, 1970, as of March 1,
2000, as of February 1, 2003, as of February 1, 2003, as of
February 15, 2003, as of April 15, 2003, as of October 1, 2003,
as of October 1, 2003, as of November 1, 2003, as of January 1,
2005, as of November 1, 2008 and as of November 1, 2008 are wholly or
partially in full force and effect (said Original Mortgage, and said Indenture
dated March 1, 1928, as so supplemented and amended, being collectively
called the “Mortgage”,
and said Mortgage, as supplemented by this Supplemental Indenture, being
collectively called the “Mortgage as supplemented”);
and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Whereas, all bonds
which have heretofore been issued and outstanding under the Mortgage have been
retired and cancelled, except that as of September 1, 2009, there were bonds of
the following series outstanding in the aggregate principal amounts indicated
below:

       

      
        	
                Bonds

              	
                Due
      Date

              	
                Aggregate

                Principal
      Amount

              
	 
    	 
    	 
    
	
                Series
      HH

              	
                March 1,
      2030

              	
                $50,000,000

              
	
                Series
      KK

              	
                February 1,
      2033

              	
                $50,000,000

              
	
                Series
      LL

              	
                February 1,
      2033

              	
                $50,000,000

              
	
                   
      Series MM-2

              	
                March 1,
      2010

              	
                $50,000,000

              
	
                  
      Series NN-2

              	
                April 15,
      2013

              	
                $75,000,000

              
	
                Series
      OO

              	
                October 1,
      2037

              	
                $51,000,000

              
	
                Series
      PP

              	
                October 1,
      2037

              	
                $51,000,000

              
	
                Series
      QQ

              	
                November 1,
      2038

              	
                $75,000,000

              
	
                Series
      RR

              	
                June 1,
      2035

              	
                $50,000,000

              
	
                Series
      SS

              	
                November 1,
      2013

              	
                $45,000,000

              
	
                Series
      TT

              	
                November 1,
      2018

              	
                 
      $5,000,000

              

      

      

      ; and

       

      Whereas, it is
provided in Article III of the Mortgage that bonds of any series may from time
to time be issued by the Company under the Mortgage in a principal amount equal
to 75% of expenditures made for the acquisition of any permanent property as
defined in the Mortgage or upon the deposit of cash with the Trustee equal to
the aggregate principal amount of bonds whose authentication and delivery is
then applied for; and

       

      Whereas, the
Company has duly determined to create an additional series of its bonds to be
issued under the Mortgage as supplemented designated “The Peoples Gas Light and
Coke Company First and Refunding Mortgage 4.63% Bonds, Series UU” (herein
sometimes referred to as “bonds of Series UU”) and to
issue an aggregate of $75,000,000 principal amount of said bonds all of which
bonds shall be fully registered without coupons; and

       

      Whereas, the
Company desires to reserve the right to amend the Mortgage without any consent
or other action by holders of the bonds of Series UU or any subsequent series,
to provide that the Mortgage, the rights and obligations of the Company and the
rights of the bondholders may be modified with the consent of the holders of not
less than 60% in aggregate principal amount of the bonds adversely affected;
provided, however, that
no modification shall (1) extend the maturity of any of the bonds of Series UU
or reduce the rate or extend the time of payment of interest thereon, or reduce
the amount of principal thereof (or with respect to the bonds of Series UU
change the amount or time of any prepayment or payment of principal or of any
payment of interest or reduce the rate of interest or change the method of
computation of interest or of the Make-Whole Amount), or reduce the Make-Whole
Amount, if any, payable on redemption thereof or change the coin or currency in
which any bond or interest thereon or Make-Whole Amount, if any, is payable
without the consent of the holder of each bond so affected, (2) permit the
creation of any lien, not otherwise permitted, prior to or on a parity with the
lien of the Mortgage, without the consent of the holders of all bonds then
outstanding, or (3) reduce the 

       

      
        
          
          

        

        
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      above percentage of
the aggregate principal amount of bonds the holders of which are required to
approve any such modification without the consent of the holders of all bonds
then outstanding; and

       

      Whereas, the form
of registered bond of Series UU and the form of the Trustee’s Certificate to
appear on all bonds of Series UU shall be substantially as follows:

       

      (Form of Series UU
Registered Bond Without Coupons)

       

      THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF
ANY OTHER STATE.  NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED OR TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.

      

      ICC Identification
No. 6204 and 6514

      CUSIP:  XXX

      

      No.
R_______                                                                                                                  $________

       

      

      The
Peoples Gas Light and Coke Company

       

      First
and Refunding Mortgage 4.63% Bonds,

       

      Series
UU

       

      Due
September 1, 2019

       

      The Peoples Gas
Light and Coke Company, an Illinois corporation (hereinafter called the “Company”), for value
received, hereby promises to pay to __________________________, or registered
assigns on September 1, 2019, unless this Bond shall have been called for
redemption and payment of the redemption price shall have been duly made or
provided for in accordance with the hereinafter described Mortgage, the
principal sum of __________ Dollars ($__________), and to pay interest on the
balance of said principal sum from time to time remaining unpaid until payment
of said principal amount has been made or duly provided for, at the rate of Four
And Sixty Three One Hundredths Per Cent (4.63% per annum) (calculated on the
basis of a year of 360 days consisting of twelve 30-day months), payable at or
before 9:00 a.m., Chicago time, on March 1 and September 1 of each year,
commencing March 1, 2010 until payment in full of such principal sum on
September 1, 2019.  With respect to the initial interest period ending
on March 1, 2010, interest shall accrue from September 30,
2009.  Interest shall also accrue on any overdue principal, premium,
if any, and (to the extent that such interest shall be legally enforceable) on
any overdue installment of interest until paid at the Overdue
Rate.  Overdue Rate shall mean the rate of interest that is the
greater of (i) 1% per annum above the rate of interest stated as the coupon
rate of the bonds of Series UU or (ii) 1% over the rate of interest
publicly announced by Citibank N.A. in New York, New York as its “base” or
“prime” rate.  The interest so payable on any interest payment date
will, subject to certain exceptions provided in 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      the Mortgage, be
paid to the person who is the registered owner of this Bond at the close of
business on the applicable record date next preceding such interest payment date
(February 15 or August 15, as the case may be).  Subject to
Section 9 of that certain Bond Purchase Agreement dated as of September 30,
2009 (the “Bond Purchase Agreement”) between the Company and the institutional
investors named in Schedule A thereto, principal of, Make-Whole Amount (as
hereinafter defined), if any, and interest on this Bond shall be payable in
lawful money of the United States of America at the principal corporate office
or agency of the Company in Chicago, Illinois.

       

      This Bond is one of
the First and Refunding Mortgage 4.63% Bonds, Series UU, due September 1, 2019
(the “bonds of Series
UU”) of the Company, all issued and to be issued in a single series, from
time to time, under and in accordance with and, irrespective of the time of
issue or of such series in which issued or the designation thereof, equally
secured by an Indenture, dated the second day of January, 1926, executed by
Chicago By-Product Coke Company, a Delaware corporation, to Illinois Merchants
Trust Company, as trustee, and recorded on January 19, 1926, as Document
No. 9154395 in Book 22219 of Records, at page 283, in the Recorder’s Office
of Cook County, Illinois, which Indenture was assumed by the Company as a
successor corporation, as defined therein, by an indenture, dated the first day
of March, 1928, executed by the Company to said trustee, and recorded on
April 7, 1928, as Document No. 9980547 in Book 25701 of Records, at page
599, in the Recorder’s Office of Cook County, Illinois, and has heretofore been,
and from time to time hereafter may be, amended and supplemented by indentures
supplemental thereto, including the Supplemental Indenture dated as of September
1, 2009 relating to the hereinafter described bonds of Series UU (the “Supplemental
Indenture”).  Unless otherwise defined herein, all capitalized
terms used herein shall have the meanings ascribed thereto in the Supplemental
Indenture.  The word “Mortgage”, as used in this Bond, shall mean said
Indenture, as amended and supplemented from time to time by indentures
supplemental thereto, including the Supplemental Indenture.  The word
“Company”, as used in this Bond, shall be construed to include any successor
corporation, as defined in the Mortgage.  The word “Trustee”, as used
in this Bond, shall be construed to mean and include U.S. Bank National
Association (successor to Illinois Merchants Trust Company), as trustee under
the Mortgage, and any successor trustee thereunder.  Reference is
hereby made to the Mortgage and all indentures supplemental thereto for a
description of the property mortgaged and pledged (except that certain parcels
described in the Mortgage and in said supplemental indentures have been released
from the lien of the Mortgage pursuant to the terms thereof), the nature and
extent of the security and the terms and conditions governing the issuance and
security of the bonds issued or to be issued under the Mortgage.  As
provided in the Mortgage, the bonds may be for various principal sums, are
issuable in series, may bear interest at different rates and may otherwise vary
as provided therein.  This Bond is one of the series of such First and
Refunding Mortgage Bonds designated as “The Peoples Gas Light and Coke Company
First and Refunding Mortgage 4.63% Bonds, Series UU”, hereinafter called the
“Series UU Bonds”.

       

      The bonds of Series
UU shall be deliverable in the form of registered Bonds without coupon in the
denomination of $100,000 and any integral multiple thereof.

       

      As more fully
described in the Supplemental Indenture, the Company reserves the right, without
any consent or other action by holders of the Series UU Bonds or the bonds of
any 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      subsequent series,
to amend the Mortgage to provide that the Mortgage, the rights and obligations
of the Company and the rights of the bondholders may be modified with the
consent of the holders of not less than 60% in aggregate principal amount of the
bonds adversely affected; provided, however, that no
modification shall (1) extend the maturity of any of the Series UU Bonds or
reduce the rate or extend the time of payment of interest thereon, or reduce the
amount of principal thereof (or with respect to the Series UU Bonds change the
amount or time of any prepayment or payment of principal or of any payment of
interest or reduce the rate of interest or change the method of computation of
interest or of the Make-Whole Amount), or reduce the Make-Whole Amount, if any,
payable on redemption thereof or change the coin or currency in which any bond
or interest thereon or Make-Whole Amount, if any, is payable without the consent
of the holder of each bond so affected or, (2) permit the creation of any lien,
not otherwise permitted, prior to or on a parity with the lien of the Mortgage,
without the consent of the holders of all bonds then outstanding, or (3) reduce
the above percentage of the principal amount of bonds the holders of which are
required to approve any such modification without the consent of the holders of
all bonds then outstanding.

       

      The Series UU Bonds
are subject to optional redemption by the Company, in whole but not in part, at
any time, at a redemption price of 100% of the principal amount thereof, plus
accrued interest, if any, to the redemption date, upon the occurrence of certain
events described in the Supplemental Indenture (relating to unreasonable burdens
or excessive liabilities imposed upon the Company; changes in the economic
availability of raw materials, operating supplies, fuel or other energy sources
or supplies or technological or other changes rendering its property uneconomic;
or court order or decree preventing operations at its property or rendering the
continuation of its operations economically unfeasible).

       

      All of the
outstanding Series UU Bonds may be redeemed at any time by the Company, by the
payment of the principal amount thereof and accrued interest thereon to the date
of redemption, without the payment of any premium, in the event of the
acquisition by any federal, state or municipal authority of any substantial
portion (which shall be not less than one-third as determined by book values) of
the income-producing properties of the Company which are subject to the lien of
the Mortgage.

       

      All of the
outstanding bonds under the Mortgage shall be redeemed by the Company by the
payment of the respective applicable redemption price or prices and accrued
interest thereon to the date of redemption, without the payment of any premium,
in the event of the acquisition by any federal, state or municipal authority of
all or substantially all of the income-producing properties of the Company which
are subject to the lien of the Mortgage.

       

      The Company may, at
its option, upon notice as provided in the Supplemental Indenture, prepay at any
time all or from time to time, any part of the bonds of Series UU at 100% of the
principal amount so prepaid, and the Make-Whole Amount, determined in accordance
with Section 5(d)(i) of the Supplemental Indenture with respect to such
principal amount together with accrued and unpaid interest
thereon.  Reference is made to the Supplemental Indenture for the
terms and conditions of such prepayment and the definition of Make-Whole
Amount.

       

      Notice of any
redemption of the Series UU Bonds shall be given by mailing by first class mail,
postage prepaid, at least thirty (30) days and not more than sixty (60) days
prior, to the 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      redemption date, to
the holders of all such bonds to be redeemed at their last addresses that shall
appear upon the registry book, all as more fully provided in the
Mortgage.  Notice of redemption having been duly given, the bonds
called for redemption shall become due and payable upon the redemption date and,
if the redemption price shall have been deposited with the Trustee, interest
thereon shall cease to accrue on and after the redemption date, and whenever the
redemption price thereof shall have been deposited with the Trustee and notice
of redemption shall have been duly given or provision therefore made, such bonds
shall no longer be entitled to any lien or benefit of the Mortgage.

       

      In case of certain
events of default specified in the Mortgage, the principal of all bonds issued
and outstanding thereunder may be declared or may become due and payable in the
manner and with the effect provided in the Mortgage.

       

      No recourse shall
be had for the payment of the principal of, Make-Whole Amount, if any, or
interest on this Bond, or for any claim based hereon, or otherwise in respect
hereof or of the Mortgage, to or against any incorporator, stockholder, director
or officer, past, present or future, of the Company, either directly or through
the Company, under any constitution or statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability of
incorporators, stockholders, directors and officers being released by the holder
hereof by the acceptance of this Bond, and being likewise waived and released by
the terms of the Mortgage.

       

      This Bond is
transferable by the registered holder hereof in person or by a duly authorized
attorney at the office or agency of the Company in the City of Chicago, State of
Illinois, upon surrender and cancellation of this Bond, and thereupon a new
registered bond or bonds, without coupons, of the same series and for the same
aggregate principal amount will be issued to the transferee in exchange
herefor.  In the manner provided in the Mortgage, registered Bonds
without coupons of this series may, at the option of the registered owner and
upon surrender at said office or agency of the Company, be exchanged for
registered Bonds without coupons of this series of the same aggregate principal
amount of other authorized denominations.

       

      The Company and the
Trustee and any paying agent may deem and treat the person in whose name this
Bond is registered as the absolute owner hereof for the purpose of receiving
payment and for all other purposes and neither the Company nor the Trustee nor
any paying agent shall be affected by any notice to the contrary.

       

      This Bond shall not
be entitled to any security or benefit under the Mortgage, and shall not become
valid or obligatory for any purpose, until this Bond shall have been
authenticated by the execution of the certificate, hereon endorsed, by the
Trustee or its successor in trust under the Mortgage.

       

      This Bond shall be
construed and enforced in accordance with, and the rights of the Company and the
holder of this Bond shall be governed by, the law of the State of Illinois,
excluding choice-of-law principles of such State that would permit the
application of the laws of a jurisdiction other than such State.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      In
Witness Whereof, the Company has caused this Bond to be executed in its name by
its President, Executive Vice President, Chief Financial Officer, Treasurer or a
Vice President manually or in facsimile, and has caused its corporate seal
manually or in facsimile to be hereto affixed, attested by the manual or
facsimile signature of its Secretary or of an Assistant Secretary.

       

      
        	
                Dated:
      September 1, 2009

              	 
    	
                The
      Peoples Gas Light and Coke Company

              
	 
    	 
    	 
    
	 
    	 
    	 
    
	
                (SEAL)

              	 
    	
                By:__________________________________   

              
	 
    	 
    	
                Bradley A.
      Johnson

              
	 
    	 
    	
                Its:  Treasurer

              
	 
    	 
    	 
    
	
                Attest:

              	 
    	 
    
	 
    	 
    	 
    
	 _________________________________________________________
      	 
    	 
    
	
                Barth J.
      Wolf

              	 
    	 
    
	
                Its:  Secretary

              	 
    	 
    

      

      

      

      (Form
of Trustee’s Certificate)

       

      This bond is one of
the bonds of the series designated, referred to and described in the
within-mentioned Mortgage.

       

      U.S.
Bank National Association

       

      By:_________________________________________________

                  Authorized
Officer

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      Assignment

       

      For value received,
the undersigned hereby sell(s) and transfer(s) unto:

       

      Please Insert
Identifying Number of
Assignee:  ______________________________________________                   

       

      ________________________________________________________________________________________________________________

      _______________________________________________________________________________________________________________

      (Please print or
typewrite name and address, including zip code of assignee)

       

      the within Bond and
all rights thereunder, hereby irrevocably constituting and appointing
_______________ Attorney to transfer said Note on the books of the Trustee with
full power of substitution in the premises.

       

      
        
          	
                  Dated:_____________________________

                	 
    	______________________________________________________________________________
	 
    	 
    	
                  Notice: The
      signature to this Assignment must correspond with the name as written upon
      the face of the within instrument in every particular, without alteration
      or enlargement, or any changes
whatever.

                

        

      

       

      and

       

      Whereas, all acts
and things necessary to make the bonds of Series UU, when authenticated by the
Trustee and issued as in the Mortgage and in this Supplemental Indenture
provided, the valid, binding and legal obligations of the Company, entitled in
all respects to the security of the Mortgage, have been done and performed and
the creation, execution and delivery of this Supplemental Indenture have in all
respects been duly authorized by a resolution adopted by the Board of Directors
of the Company; and

       

      Whereas, the
Company has requested the Trustee, pursuant to the provisions of
Article XVI of the Mortgage, to enter into this Supplemental Indenture for
the purpose of supplementing the Mortgage as herein provided;

       

      Now, Therefore, it
is hereby covenanted, declared and agreed by and between the Company and the
Trustee, and its successor or successors in trust, as follows:

       

       

      Description
of Certain Property Subject to the Lien of the Mortgage

       

      The Company hereby
mortgages and conveys unto the Trustee, its successor or successors in trust,
the property described in Schedule A hereto attached and expressly made a
part hereof pursuant to the terms set forth in said
Schedule A.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      ARTICLE
I

      FIRST
AND REFUNDING MORTGAGE 4.63% BONDS, SERIES UU

       

      Section
1. Designation, Maturity and Interest
Rate of Bonds.  A new series of
bonds of the Company shall be issued under and secured by the Mortgage as
supplemented, which shall be designated as the Company’s “First and Refunding
Mortgage 4.63% Bonds, Series UU.”  The aggregate principal amount of
bonds of Series UU which may be executed by the Company and authenticated by the
Trustee shall be limited to $75,000,000 (exclusive of bonds authenticated and
delivered upon transfers pursuant to Section 3 of Article I hereof and Sections
2, 5, 11 and 12 of Article I of the Original Mortgage and delivered pursuant to
Section 3 of Article VI of the Original Mortgage as the same may relate to fully
registered bonds).  Bonds of Series UU all shall be registered bonds
without coupons, and shall be due and payable September 1, 2019.  All
bonds of Series UU shall bear interest from the date thereof (provided, however,
that with respect to the initial interest period ending on March 1, 2010,
interest shall accrue from September 30, 2009), payable at or before 9:00 a.m.
Chicago time on March 1 and September 1 in each year, commencing March 1, 2010,
until the principal thereof shall have become due and payable, at the rate of
4.63% per annum and on any overdue principal and (to the extent that payment of
such interest is enforceable under the applicable law) on any overdue
installment of interest at the Overdue Rate, and shall be payable both as to
principal and interest, and as to Make-Whole Amount, if any, in coin or currency
of the United States of America which at the time of payment is legal tender for
the payment of public and private debts, at the office or agency of the Trustee
in the City of St. Paul, Minnesota.

       

      Subject to Section
9 of the Bond Purchase Agreement, so long as there is no existing default in the
payment of interest on the bonds of Series UU, the interest payable on any
interest payment date shall be to the person in whose name any bond of Series UU
is registered at the close of business on any record date with respect to any
interest payment date, and such person shall be entitled to receive the interest
payable on such interest payment date notwithstanding any transfer or exchange
of such bond of Series UU subsequent to the record date and on or prior to such
interest payment date, except as and to the extent the Company shall default in
the payment of the interest due on such interest payment date, in which case
such defaulted interest shall be paid to the person in whose name such bond of
Series UU is registered at the close of business on a subsequent record date,
which shall not be less than five (5) days prior to the date of payment of such
defaulted interest established by notice given by mail by or on behalf of the
Company to the person in whose name such bond of Series UU is then registered
and to the Trustee not less than ten (10) days preceding such subsequent record
date.

       

      The term “record
date” as used herein with respect to any interest payment date (March 1 or
September 1, as the case may be) shall mean the 15th day of
February or the 15th day of
August, as the case may be, next preceding such interest payment
day.

       

      As used in this
Section 1, the term “default in the payment of interest” means failure to pay
interest on the applicable interest payment date disregarding any period of
grace permitted by Article X of the Mortgage.

       

      Section
2. Issuance of
Bonds.  Bonds
of Series UU may be issued only as registered bonds without coupons (hereinafter
sometimes referred to as “registered bonds”), and they
shall 

       

      
        
          
          

        

        
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      be substantially in
the form hereinbefore recited.  They shall be issuable in
denominations which shall be multiples of $100,000 and any integral multiple
thereof and the execution by the Company of any bond of Series UU shall evidence
conclusively the due authorization of the denomination of such
bond.  Each registered bond of Series UU shall be dated as of the date
of the interest payment date on which interest was paid on other bonds of said
Series next preceding the date of issue of such registered bond, except that (i)
so long as  there is no existing default in the payment of interest
upon the bonds of Series UU, any bond of Series UU issued after the close of
business on any record date with respect to any interest payment date and prior
to such interest payment date shall be dated as of such interest payment date,
and (ii) any bond of Series UU issued on an interest payment date on which
interest on other bonds of Series UU was paid shall be dated as of the date of
issue and (iii) any bond of Series UU issued before the initial interest payment
date shall be dated September 1, 2009, the date of commencement of the first
interest period for the bonds of Series UU, unless (i) above is
applicable.

       

      The registered
owner of any bond of Series UU dated as of an interest payment date as provided
in (i) above shall, if the Company shall default in the payment of interest due
on such interest payment date and such default shall be continuing, be entitled
to exchange such bond for a bond or bonds of Series UU of the same aggregate
principal amount dated as of the interest payment date next preceding the
interest payment date first mentioned in this sentence, or, if the Company shall
default in the payment of interest on the first interest payment date for bonds
of Series UU, such owner shall be entitled to exchange such bond for a bond or
bonds of Series UU of the same aggregate principal amount dated as of September
1, 2009.  If the Trustee shall have knowledge at any time that any
registered owner of a bond of Series UU shall be entitled by the provision of
the next preceding sentence to exchange such bond, the Trustee shall within
thirty (30) days mail to such owner at the address of such owner appearing upon
the registry book, a notice informing such owner that such owner has such right
of exchange.

       

      Section
3. Exchanges of
Bonds.  In the
manner prescribed in the Mortgage, the holder of a registered bond or bonds of
Series UU may, at the office or agency of the Trustee in the City of St. Paul,
State of Minnesota, surrender such bond or bonds in exchange for a like
aggregate principal amount of one or more registered bonds of Series UU of any
authorized denomination or denominations.

       

      No charge will be
made by the Company to the registered owner of a bond of Series UU for the
transfer thereof or for the exchange thereof for bonds of Series UU of other
authorized denominations, except, in the case of transfer, a charge sufficient
to reimburse the Company for any stamp or other tax or governmental charge
required to be paid by the Company or the Trustee.

       

      Section
4. Execution and Authentication of
Bonds.  All bonds of Series
UU shall be executed on behalf of the Company by the manual signature of its
President or the Executive Vice President or the Chief Financial Officer or the
Treasurer or a Vice President and shall have affixed thereon the manual seal of
the Company attested by the manual signature of its Secretary or one of its
Assistant Secretaries and be authenticated by the execution by the Trustee of
the certificate endorsed on said bonds, and said bonds shall be issued from time
to time, as the Board of Directors of the Company may determine, but in
accordance with the terms, provisions, 

       

      
        
          
          

        

        
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      conditions and
restrictions set forth in the Mortgage and in this Supplemental
Indenture.  The definitive bonds of Series UU may be issued in
typewritten or printed form.

       

      Section
5. Redemption of Bonds by
Company.

       

      (a) The bonds of Series
UU are subject to optional redemption by the Company, in whole but not in part,
at any time, at a redemption price of 100% of the principal amount thereof plus
accrued interest, if any, to the redemption date, if any of the following shall
have occurred and if within one hundred and eighty (180) days following said
occurrence the Company files written notice with the Trustee and directs that
the bonds of Series UU are to be redeemed:

       

      (i) if, in the
reasonable judgment of the Company’s Board of Directors, unreasonable burdens or
excessive liabilities shall have been imposed upon the Company with respect to
its property or the operation thereof, including, without limitation, federal,
state or other ad
valorem property, income or other taxes, other than ad valorem taxes presently
levied upon privately owned property used for the same general purposes as its
property; or

       

      (ii) if changes in the
economic availability of raw materials, operating supplies, fuel or other energy
sources or supplies, or facilities necessary for the operation of the Company’s
property or such technological or other changes shall have occurred which, in
the reasonable judgment of the Company’s Board of Directors, render its property
uneconomic for such purposes; or

       

      (iii) any court or
administrative body shall enter an order or decree preventing operations at the
Company’s business for six consecutive months; or

       

      (iv) any court or
administrative agency shall issue an order, decree or regulation the compliance
with which would, in the reasonable opinion of the Board of Directors of the
Company, render the continuation of its operations economically
unfeasible.

       

      (b) All of the
outstanding bonds of Series UU may be redeemed at any time by the Company, by
the payment of the principal amount thereof and accrued interest thereon to the
date of redemption, without the payment of any premium, in the event of the
acquisition by any federal, state or municipal authority of any substantial
portion (which shall be not less than one-third as determined by book values) of
the income-producing properties of the Company which are subject to the lien of
the Mortgage.

       

      (c) In the event of the
acquisition at any time by any federal, state or municipal authority of all or
substantially all of the income-producing properties of the Company which are
subject to the lien of the Mortgage, the Company shall be deemed to have elected
to redeem and to have requested the Trustee to redeem all the bonds of all
series at the respective applicable redemption price or prices (together with
accrued interest to the date of redemption), without the payment of any premium,
on a date determined by the Trustee in its discretion to be the earliest
practicable redemption date after receipt by the Trustee of all cash which the
Trustee is entitled to receive in respect 

       

      
        
          
          

        

        
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      of such acquisition
by such federal, state or municipal authority.  If the cash so
received by the Trustee and all other cash then held by the Trustee as such,
except funds held in trust for the benefit of the holders of particular bonds
and coupons, is not sufficient to effect the redemption of all the bonds of all
series as aforesaid and to pay all amounts owing to the Trustee under the
Mortgage as supplemented (including fees and expenses to be incurred by the
Trustee in connection with such redemption), the Company covenants and agrees
that, within five (5) days after receipt by the Trustee of all cash which the
Trustee is entitled to receive as aforesaid in respect of such acquisition, the
Company will deposit with the Trustee for that purpose cash in an amount
sufficient to make up such deficiency.

       

      Upon receipt by the
Trustee of moneys sufficient for said purposes, notice of such redemption shall
be given by the Trustee for and on behalf and in the name of the
Company.  To the extent that such cash received, held and deposited as
aforesaid shall be required for the purpose of redeeming bonds pursuant to this
Section 5(c), the Company shall be deemed to have directed the Trustee to apply
the same for the purpose, and the balance, if any, after payment of all said
amounts owing to the Trustee, shall be paid to or upon the order of the
Company.

       

      (d) (i) The Company
may, at its option, upon notice as provided below, prepay at any time all, or
from time to time any part of, the bonds of Series UU, in an amount not less
than 10% of the aggregate principal amount of the bonds of Series UU then
outstanding in the case of a partial prepayment, at 100% of the principal amount
so prepaid, together with interest accrued and unpaid thereon to the date of
such prepayment, and the Make-Whole Amount determined for the prepayment date
with respect to such principal amount.  The Company will give each
holder of bonds of Series UU written notice of each optional prepayment under
this Section 5(d)(i) not less than 30 days and not more than 60 days prior
to the date fixed for such prepayment.  Each such notice shall specify
such date (which shall be a Business Day), the aggregate principal amount of the
bonds of Series UU to be prepaid on such date, the principal amount of each bond
of Series UU held by such holder to be prepaid (determined in accordance with
Section 5(d)(ii)), and the interest to be paid on the prepayment date with
respect to such principal amount being prepaid, and shall be accompanied by a
certificate of a Senior Financial Officer as to the estimated Make-Whole Amount
due in connection with such prepayment (calculated as if the date of such notice
were the date of the prepayment), setting forth the details of such
computation.  Two Business Days prior to such prepayment, the Company
shall deliver to each holder of bonds of Series UU a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date.

       

      (ii)           In
the case of each partial prepayment of the bonds of Series UU pursuant to
Section 5(d)(i), the principal amount of the bonds of Series UU to be
prepaid shall be allocated among all of the bonds of Series UU at the time
outstanding in proportion, as nearly as practicable, to the respective unpaid
principal amounts thereof not theretofore called for prepayment.

       

      
        
          
          

        

        
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      (iii)           In
the case of each prepayment of bonds of Series UU pursuant to
Section 5(d)(i), the principal amount of each bond of Series UU to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment (which shall be a Business Day), together with interest on such
principal amount accrued to such date and the applicable Make-Whole Amount, if
any.  From and after such date, unless the Company shall fail to pay
such principal amount when so due and payable, together with the interest and
Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall
cease to accrue.  Any bond of Series UU paid or prepaid in full shall
be surrendered to the Company and cancelled and shall not be reissued, and no
bond of Series UU shall be issued in lieu of any prepaid principal amount of any
bond of Series UU.

       

      (iv)           The
Company will not and will not permit any Affiliate to purchase, redeem, prepay
or otherwise acquire, directly or indirectly, any of the outstanding bonds of
Series UU except (1) upon the payment or prepayment of the bonds of Series
UU in accordance with the terms of this Supplemental Indenture and the bonds of
Series UU or (2) pursuant to an offer to purchase made by the Company or an
Affiliate pro rata to the holders of all bonds of Series UU at the time
outstanding upon the same terms and conditions.  Any such offer shall
provide each holder with sufficient information to enable it to make an informed
decision with respect to such offer, and shall remain open for at least 15
Business Days.  If the holders of more than 10% of the principal
amount of the bonds of Series UU then outstanding accept such offer, the Company
shall promptly notify the remaining holders of such fact and the expiration date
for the acceptance by holders of bonds of Series UU of such offer shall be
extended by the number of days necessary to give each such remaining holder at
least 5 Business Days from its receipt of such notice to accept such
offer.  The Company will promptly cancel all bonds of Series UU
acquired by it or any Affiliate pursuant to any payment, prepayment or purchase
of bonds of Series UU pursuant to any provision of this Supplemental Indenture
and no bonds of Series UU may be issued in substitution or exchange for any such
bonds of Series UU.

       

      Section
6. Notice of
Redemption.  If
bonds of Series UU are to be redeemed as provided in Section 5(a),(b) or (c) of
this Article I, notice of redemption shall be mailed by or on behalf of the
Company, postage prepaid, at least thirty (30) days and not more than sixty (60)
days prior to such date of redemption, to the registered owners of all bonds of
Series UU to be so redeemed, at their respective addresses appearing upon the
registry book and in the manner provided in Section 13 of the Bond Purchase
Agreement.  Any notice which is mailed as herein provided shall be
conclusively presumed to have been properly and sufficiently given on the date
of such mailing, whether or not the holder receives the notice.  In
any case, failure to give due notice by mail, or any defect in the notice, to
the registered owners of any bonds of Series UU designated for redemption as a
whole or in part, shall not affect the validity of the proceedings for the
redemption of any other bond of Series UU.  In case of any redemption
of bonds of Series UU by the Trustee pursuant to the provisions of the Mortgage
or any indenture supplemental thereto, notice of redemption shall be given in a
similar manner by the Trustee.

       

      Except as provided
above, the provisions of Article VI of the Mortgage shall in all respects apply
to any such redemption.

       

      
        
          
          

        

        
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      Section
7. Form of Bonds.  Bonds
of Series UU will be substantially in the form recited above.  Bonds
of Series UU shall bear a private placement legend.

       

      Section
8. Definitions.  In this
Supplemental Indenture, the following terms shall have the meanings specified in
this Section 8, unless the context otherwise requires:

       

      “Affiliate” shall have the
meaning assigned thereto in the Bond Purchase Agreement.

       

      “Business Day” means any day
which is not a Sunday or a legal holiday or a day (including Saturday) on which
banking institutions in Chicago, Illinois, in New York, New York, and in the
city where the principal office of the Trustee is located are not required or
authorized to remain closed and other than a day on which the New York Stock
Exchange is not closed.

       

      “Bond Purchase Agreement”
means that certain Bond Purchase Agreement dated as of September 30, 2009
between the Company and the Institutional Investors named on Schedule A
thereto, under and pursuant to which the bonds of Series UU were issued, as the
same may from time to time be amended or supplemented.

       

      “Code” means the Internal
Revenue Code of 1986, as amended, and all regulations promulgated
thereunder.

       

      “Institutional Investor” shall
have the meaning assigned thereto in the Bond Purchase Agreement.

       

      “Make-Whole Amount” means,
with respect to any bond of Series UU, an amount equal to the excess, if any, of
the Discounted Value of the Remaining Scheduled Payments with respect to the
Called Principal of such bond over the amount of such Called Principal; provided
that the Make-Whole Amount may in no event be less than zero.  For the
purposes of determining the Make-Whole Amount, the following terms have the
following meanings:

       

      “Called Principal” means, with
respect to any bonds of Series UU, the principal of such bond of Series UU that
is to be prepaid pursuant to Section 5(d)(i).

       

      “Discounted Value” means, with
respect to the Called Principal of any bond of Series UU, the amount obtained by
discounting all Remaining Scheduled Payments with respect to such Called
Principal from their respective scheduled due dates to the Settlement Date with
respect to such Called Principal, in accordance with accepted financial practice
and at a discount factor (applied on the same periodic basis as that on which
interest on the bond of Series UU is payable) equal to the Reinvestment Yield
with respect to such Called Principal.

       

      “Reinvestment Yield” means,
with respect to the Called Principal of any bond of Series UU, 0.50% (50 basis
points) over the yield to maturity implied by (i) the yields reported as of
10:00 a.m. (New York City time) on the second 

       

      
        
          
          

        

        
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      Business Day
preceding the Settlement Date with respect to such Called Principal, on the
display designated as “Page PX1” (or such other display as may replace Page PX1)
on Bloomberg Financial Markets for the most recently issued actively traded on
the run U.S. Treasury securities having a maturity equal to the Remaining
Average Life of such Called Principal as of such Settlement Date, or
(ii) if such yields are not reported as of such time or the yields reported
as of such time are not ascertainable (including by way of interpolation), the
Treasury Constant Maturity Series Yields reported, for the latest day for which
such yields have been so reported as of the second Business Day preceding the
Settlement Date with respect to such Called Principal, in Federal Reserve
Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement Date.  In the case
of each determination under clause (i) or clause (ii), as the case may
be, of the preceding paragraph, such implied yield will be determined, if
necessary, by (a) converting U.S. Treasury bill quotations to
bond-equivalent yields in accordance with accepted financial practice and
(b) interpolating linearly between (1) the applicable U.S. Treasury
security with the maturity closest to and greater than such Remaining Average
Life and (2) the applicable U.S. Treasury security with the maturity
closest to and less than such Remaining Average Life.  The
Reinvestment Yield shall be rounded to the number of decimal places as appears
in the interest rate of the applicable bond of Series UU.

       

      “Remaining Average Life”
means, with respect to any Called Principal, the number of years (calculated to
the nearest one-twelfth year) obtained by dividing (a) such Called
Principal into (b) the sum of the products obtained by multiplying
(i) the principal component of each Remaining Scheduled Payment with
respect to such Called Principal by (ii) the number of years (calculated to
the nearest one-twelfth year) that will elapse between the Settlement Date with
respect to such Called Principal and the scheduled due date of such Remaining
Scheduled Payment.

       

      “Remaining Scheduled Payments”
means, with respect to the Called Principal of any bond of Series UU, all
payments of such Called Principal and interest thereon that would be due after
the Settlement Date with respect to such Called Principal if no payment of such
Called Principal were made prior to its scheduled due date; provided that if
such Settlement Date is not a date on which interest payments are due to be made
under the terms of the bonds of Series UU, then the amount of the next
succeeding scheduled interest payment will be reduced by the amount of interest
accrued to such Settlement Date and required to be paid on such Settlement Date
pursuant to Section 5(d).

       

      “Settlement Date” means, with
respect to the Called Principal of any bond of Series UU, the date on which such
Called Principal is to be prepaid pursuant to Section 5(d).

       

      
        
          
          

        

        
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      “Overdue Rate” means that rate
of interest that is the greater of (i) 1% per annum above the rate of
interest stated in clause (a) of the first paragraph of the bonds of Series UU
or (ii) 1% over the rate of interest publicly announced by Citibank N.A. in
New York, New York as its “base” or “prime” rate.

       

      “Maturity Date” means
September 1, 2019.

       

      “Securities Act” means the
Securities Act of 1933, as amended.

       

      “Senior Financial Officer”
shall have the meaning assigned thereto in the Bond Purchase
Agreement.

       

      Section
9. Date of Payments.  In any
case where the date of maturity of interest of the bonds of Series UU or the
date fixed for redemption of any bonds of Series UU shall be in the location of
the designated corporate trust office of the Trustee on a day other than a
Business Day, then payment of interest or principal (and Make-Whole Amount, if
any) 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 fixed for
redemption, and no interest shall accrue for the period after such date; provided that if the maturity
date of the bonds of Series UU is a day other than a Business Day, the payment
otherwise due on such maturity date shall be made on the next succeeding
Business Day and shall include the additional day elapsed in the computation of
interest payable on such next succeeding Business Day.

       

      Section
10. Reservation of Right to Amend
Mortgage.  The
Company reserves the right, without any consent or other action by holders of
the bonds of Series UU or any subsequent series of bonds, to amend the Mortgage
by inserting the following language as Section 4 of Article XVI immediately
following current Section 3 of Article XVI of the Mortgage:

       

      Section
4.  Anything in Section 1 of this Article to the contrary
notwithstanding, with the consent of the holders of not less than sixty per
centum (60%) in aggregate principal amount of the bonds at the time outstanding
or their attorneys-in-fact duly authorized, or, if the rights of the holders of
one or more, but not all, series then outstanding are affected, the consent of
the holders of not less than sixty per centum (60%) in aggregate principal
amount of the bonds at the time outstanding of all affected series, taken
together, and not any other series, the Company, when authorized by resolution
of its Board of Directors, and the Trustee, from time to time and at any time,
subject to the restrictions in this Mortgage contained, may 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 any supplemental indenture or modifying the rights and
obligations of the Company and the rights of the holders of any of the bonds and
coupons; provided,
however, that no such supplemental indenture shall (1) extend the
maturity of any of the bonds or reduce the rate or extend the time of payment of
interest thereon, or reduce the amount of the principal thereof  (or
with respect to the bonds of Series UU change the amount or time of any
prepayment or payment of principal or of any payment of interest or reduce the
rate of interest or change the method of computation of interest or of the
Make-Whole 

       

      
        
          
          

        

        
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      Amount), or reduce
the Make-Whole Amount, if any, or any premium payable on the redemption thereof
or change the coin or currency in which any bond or interest thereon, or
Make-Whole Amount, if any is payable, without the consent of the holder of each
bond so affected,  or (2) permit the creation of any lien, not
otherwise permitted, prior to or on a parity with the lien of the Mortgage,
without the consent of the holders of all the bonds then outstanding, or (3)
reduce the aforesaid percentage of the aggregate principal amount of bonds the
holders of which are required to approve any such supplemental indenture,
without the consent of the holders of all the bonds then
outstanding.  For the purposes of this Section 4, bonds shall be
deemed to be affected by a supplemental indenture if such supplemental indenture
adversely affects or diminishes the rights of holders thereof against the
Company or against its property.

       

      Upon the written
request of the Company, accompanied by a resolution of its Board of Directors
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of bondholders as aforesaid
(the instrument or instruments evidencing such consent to be dated within one
year of such request), the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee’s own rights, duties or immunities under this Mortgage or otherwise, in
which case the Trustee may in its discretion but shall not be obligated to enter
into such supplemental indenture.  The Trustee shall be entitled to
receive and, subject to Section 7 of Article XV hereof, may rely upon, an
opinion of counsel as conclusive evidence that any such supplemental indenture
is authorized or permitted by the provisions of this Section 4.

       

      It shall not be
necessary for the consent of the bondholders under this Section 4 to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof; provided that the Company
shall or shall cause the Trustee to deliver an execution copy of such
Supplemental Indenture to each of the bond holders.

       

      The Company and the
Trustee, if they so elect, and either before or after such 60% or greater
consent has been obtained, may require the holder of any bond consenting to the
execution of any such supplemental indenture to submit its bond to the Trustee
or to such bank, banker or trust company as may be designated by the Trustee for
the purpose, for the notation thereon of the fact that the holder of such bond
has consented to the execution of such supplemental indenture, and in such case
such notation, in form satisfactory to the Trustee, shall be made upon all bonds
so submitted, and such bonds bearing such notation shall forthwith be returned
to the persons entitled thereto; provided, with respect to the
bonds of Series UU, that if the holder of any bond is an Institutional Investor
which certifies in writing that it has at a minimum net worth of at least
$50,000,000, such holder may not surrender its bond for such notation but shall
be deemed to have consented to the execution of such Supplemental
Indenture.  All subsequent holders of bonds bearing such notation
shall be deemed to have consented to the execution of such supplemental
indenture, and consent, once given or deemed to be given, may not be
withdrawn.

       

      
        
          
          

        

        
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      Prior to the
execution by the Company and the Trustee of any supplemental indenture pursuant
to the provisions of this Section 4, the Company shall publish a notice, setting
forth in general terms the substance of such supplemental indenture, at least
once in one daily newspaper of general circulation in each city in which the
principal of any of the bonds shall be payable, or, if all bonds outstanding of
any series shall be registered bonds without coupons or coupon bonds registered
as to principal, such notice with respect to such series shall be mailed first
class, postage prepaid, and registered to each registered holder of bonds of
such series at the last address of such holder appearing on the registry books
and at the last address of such holder as provided in Section 13 of the Bond
Purchase Agreement, such publication or mailing, as the case may be, to be made
not less than thirty (30) days prior to such execution.  Any failure
of the Company to give such notice, or any defect therein, shall not, however,
in any way impair or affect the validity of any such supplemental
indenture.

       

      Section
11. Private Placement of
Bonds.  Bonds
of Series UU shall initially be offered and sold in reliance on the exemption
contained under Section 4(2) of the Securities Act to an institution which is an
“accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.

       

      Section
12. Private Placement
Legend.  Each
Bond of Series UU shall bear a legend in substantially the following
form:

       

      THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF
ANY OTHER STATE.  NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED OR TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.

       

      ARTICLE
II

      COVENANTS
OF THE COMPANY

       

      Section
1. Covenants of Company under
Indenture.  The
Company covenants and agrees, so long as any of the bonds of Series UU are
outstanding or until provision shall have been made for the redemption or
payment thereof by the deposit with the Trustee of money necessary to effect
such redemption or payment, as follows:

       

      (a) The Company, during
or at the close of the calendar year 2009, and during or at the close of each
calendar year thereafter, shall charge against the income for such calendar year
and place to the credit of a “depreciation reserve account” to be kept on its
books, the greater of the following two amounts: (i) the amount of $1,550,000,
or (ii) an amount equal to 2-1/2% of the sum of

       

      (i) the aggregate
principal amount of all bonds which, at the time such credit is placed to said
“depreciation reserve account”, shall be outstanding and shall have been
outstanding under the Mortgage as supplemented for a period of not less than six
(6) months, or which at such time shall have been outstanding under the Mortgage
supplemented for less than six (6) months, if such bonds shall 

       

      
        
          
          

        

        
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      have been issued,
or the proceeds thereof shall have been used, directly or indirectly, for or on
account of the pledge, acquisition, exchange, cancellation, payment, refundment,
redemption or discharge at, before or after maturity of the bonds of any series
theretofore issued under the Mortgage or of any “underlying bonds” or “specified
obligations” as defined in Section 4 of Article III of the Mortgage;
and

       

      (ii) the aggregate
principal of all indebtedness of the Company secured by a mortgage lien upon the
properties or assets of the Company, which is a lien superior to the lien of the
Mortgage, except (A) any such mortgage indebtedness the evidences of which shall
then be pledged with the Trustee under the provisions of the Mortgage or pledged
with the trustee under any mortgage constituting a lien superior to the lien of
the Mortgage on any part of the properties or assets of the Company, and (B) any
such mortgage indebtedness for the payment or redemption of which the necessary
moneys shall have been deposited with the Trustee under the Mortgage securing
the same; provided,
however, that (1) the amount required by this subparagraph (a) to be
placed to the credit of such “depreciation reserve account” in or for any
calendar year shall be deemed to include and not to be in addition to amounts
which, by the provisions of the Mortgage, the Company is required to add to any
depreciation reserve account for such year, (2) nothing in this subparagraph (a)
shall prevent the Company from crediting to such “depreciation reserve account”,
during or at the close of any calendar year, an amount greater than the amount
required by this subparagraph (a) for such year, and (3) the Company may, from
time to time, during each such calendar year, charge against such “depreciation
reserve account” the cost of depreciable property retired by it during such
year, including the cost, if any, of dismantling such retired property, less any
salvage credits applicable thereto.

       

      (b) The Company after
it shall have issued bonds of Series UU in the aggregate principal amount of
$75,000,000, shall not request the Trustee

       

      (i) to authenticate
bonds of any series under the Mortgage

       

      (A) pursuant to Section
2 of Article III of the Mortgage for or on account of the acquisition and
cancellation, or of the payment, cancellation, redemption or other discharge at,
before or after maturity, affected prior to January 1, 1951, of any bonds
of any series theretofore issued under the Mortgage, or

       

      (B) pursuant to Section
4 of Article III of the Mortgage, for or on account of the pledge, acquisition,
exchange, cancellation, payment, refundment, redemption or discharge effected
prior to January 1, 1951, of “underlying bonds” or “specified obligations”
mentioned in said Section 4, or

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      (C) pursuant to Section
5 of Article III of the Mortgage, for or in respect of expenditures made prior
to January 1, 1951, for or on account of “permanent property”,
or

       

      (ii) to pay to the
Company any cash pursuant to Section 6 of said Article III for or on account of
any transactions mentioned in clause (A) or clause (B) of subdivision (i) of
this subparagraph (b) or for or in respect of any expenditures mentioned in
clause (C) of subdivision (i) of this subparagraph (b).

       

      Neither shall the
Company request the Trustee to authenticate bonds of any series under the
provisions of Section 4 of Article III of the Mortgage or to pay the Company any
moneys under Section 6 of said Article III or under Article IX of the Mortgage
for or on account of the payment, discharge and cancellation effected on or
after January 1, 1944, at, before or after maturity of any of the Refunding
Mortgage Five Per Cent Gold Bonds of the Company, dated September 1, 1897,
due September 1, 1947.

       

      (c) The Company shall
not request the Trustee to authenticate bonds of any series under the Mortgage
or to pay to the Company any cash deposited with or received by the Trustee
under the Mortgage (except cash deposited with or received by the Trustee as and
for a sinking fund for any series of bonds which have been or may hereafter be
issued under the Mortgage), unless the Company as a part of such request, and in
addition to all other documents required by the Mortgage to be delivered to the
Trustee in connection with such request, shall deliver to the Trustee a
certificate or certificates, signed by the President or the Executive Vice
President or the Chief Financial Officer or a Vice President and by the
Treasurer or an Assistant Treasurer of the Company:

       

      (i) showing, in case
such request is for the authentication of bonds pursuant to Section 5 of Article
III of the Mortgage or for the payment of cash pursuant to Section 6 of said
Article III for or in respect of expenditures made by the Company on or after
January 1, 1951, for or on account of “permanent property”:

       

      (A) the total amount of
expenditures (reduced to the extent required, if any, by the provisions of
clause (G) of this subdivision (i)) made on or after January 1, 1951, for or on
account of “permanent property”;

       

      (B) the original cost
of all properties, subject to the lien of the Mortgage at any time on or after
January 1, 1951, replaced or retired on or after January 1, 1951,
less, if any such property shall have been released from the lien of the
Mortgage pursuant to any applicable provision of the Mortgage and to obtain such
release cash shall have been deposited with the Trustee, the amount of such
cash;

       

      (C) an amount equal to
the sum of (1) 133-1/3% of the aggregate principal amount of bonds which have
been authenticated after January 1, 1951, pursuant to Section 5 of Article
III of the Mortgage for or 

       

      
        
          
          

        

        
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      on account of such
expenditures made on or after January 1, 1951, plus (2) 133-1/3% of
the aggregate amount of deposited cash withdrawn after January 1, 1951, pursuant
to the provisions of Section 6 of Article III of the Mortgage for or in respect
of such expenditures made on or after January 1, 1951, plus (3) 133-1/3% of
the aggregate amount of excess of the nature described in subdivision (2) of
Section 4 of Article III of the Mortgage eliminated or compensated, as in said
subdivision (2) provided, for or in respect of expenditures of the Company for
or on account of “permanent property” during said period commencing
January 1, 1951;

       

      (D) an amount equal to
100% of the aggregate amount of moneys withdrawn by the Company pursuant to the
provisions of Article IX of the Mortgage on or after January 1, 1951,
for or in respect of expenditures made for or on account of “permanent
property”;

       

      (E) an amount equal to
the excess, if any, of the amount shown pursuant to clause (A) above over the
sum of the amounts shown pursuant to clauses (B), (C) and (D)
above;

       

      (F) that, for a period
of twelve (12) consecutive calendar months (to be selected by the Company)
ending within ninety (90) days next preceding such request, the “net earnings of
the Company” shall have been at least twice the amount of the annual interest
requirement of all “mortgage and prior lien debt of the Company”;

       

      (G) that the amount of
the expenditure, if any, included in the expenditures set forth in clause (A)
above in respect of any particular “permanent property”, which at the time of
its acquisition was subject to the lien of any mortgage existing or placed
thereon at the time of its acquisition, does not exceed an amount equal to the
excess, if any, of the value (determined as provided in the first paragraph of
Section 8 of Article III of the Mortgage) of such particular “permanent
property” at the time of acquisition of such property over 133-1/3% of the
principal amount of all indebtedness secured by all such mortgages existing or
placed on such particular property at the time of the acquisition thereof, and
that the amount of the expenditure, if any, included in the expenditures set
forth in clause (A) above in respect of any particular “permanent property”,
which at the time of its acquisition was not subject to any such lien, does not
exceed an amount equal to the value (determined as provided in the first
paragraph of Section 8 of Article III of tile Mortgage) of such particular
“permanent property” at the time of acquisition of such property;

       

      (ii) showing, in case
such request is for the authentication of bonds pursuant to Section 4 of Article
III of the Mortgage or for the payment of cash pursuant to Section 6 of said
Article III for or on account of the pledge, acquisition, exchange,
cancellation, payment, refundment, redemption or 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      discharge effected
on or after January 1, 1951, at, before or after maturity of any “specified
obligations” mentioned in said Section 4, that at the time such “specified
obligations” became “specified obligations” or at some later date the Company,
pursuant to the provisions of Section 5 of Article III of the Mortgage, as
limited by the provisions of this Section 1, shall have obtained, or shall have
had the right to obtain, the authentication and delivery of bonds in any
principal amount for or in respect of expenditures made on or after
January 1, 1951, for or on account of “permanent property”;

       

      (iii) showing, in case
such request shall be for the payment of moneys pursuant to Article IX of the
Mortgage for or in respect of expenditures made for or on account of “permanent
property”, that none of such expenditures were made (1) prior to January 1,
1951, or (2) for or on account of “permanent property” acquired more than six
months prior to the date when the Trustee received the moneys so to be paid (or
in case of moneys representing the proceeds of obligations, referred to in said
Article IX, the date when the Trustee received such obligations);
and

       

      (iv) showing, in case
such request is for the application of any moneys pursuant to Article IX of the
Mortgage to the payment, redemption or purchase of any “specified obligations”,
that such “specified obligations”, if pledged under the Mortgage, would permit
the Company to obtain the authentication of bonds in a principal amount equal to
the principal amount of such “specified obligations” pursuant to the provisions
of Section 4 of Article III of the Mortgage as limited by this provisions of
this Section 1.

       

      (d) In connection with
any request for the authentication of bonds pursuant to Section 5 of Article III
of the Mortgage or the payment of cash pursuant to Section 6 of said Article III
of the Mortgage, for or in respect of expenditures made by the Company on or
after January 1, 1951, the Company shall not obtain the authentication of
bonds of any series under the Mortgage or the payment of any cash in excess of
75% of the amount shown in the certificate delivered as a part of such request
pursuant to clause (E) of subdivision (i) of subparagraph (c) of this Section 1;
and the Company shall not obtain the authentication of any bonds or the payment
of any cash deposited with or received by the Trustee under the Mortgage
otherwise than in accordance with the provisions of the Mortgage as
supplemented.

       

      (e) Wherever used in
this Supplemental Indenture

       

      (i) “mortgage and prior
lien debt of the Company”, as of the date of any request to the Trustee for the
authentication of bonds or the payment of cash, shall mean:

       

      (A) all the bonds then
outstanding under the Mortgage, less the amount of any of such bonds which shall
then be held by or be delivered to the Trustee for cancellation under any of the
provisions of the Mortgage, and less the amount of any such bonds for the
payment or 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      redemption of which
the necessary moneys shall have been deposited under the Mortgage with the
Trustee to effect such payment or redemption;

       

      (B) the bonds then
requested to be authenticated under the Mortgage; and

       

      (C) all mortgage
indebtedness secured by a lien superior to the lien of the Mortgage on any part
of the properties and assets of the Company, except any such mortgage
indebtedness the evidences of which shall then be pledged with the Trustee under
the provisions of the Mortgage or pledged with the Trustee under any mortgage
constituting a lien superior to the lien of the Mortgage on any part of the
properties and assets of the Company, and except any such mortgage indebtedness
for the payment or redemption of which the necessary moneys shall have been
deposited with the trustee under the mortgage securing the same to effect such
payment or redemption;

       

      (ii) “net earnings of
the Company” for any twelve (12) months’ period shall mean the amount remaining
after deducting from the sum of

       

      (A) the gross operating
revenues of the Company for such period derived from its property subject to the
lien of the Mortgage, including but not limited to revenues derived from
electrical energy, gas or steam purchased by the Company and resold by it, and
the net income derived by the Company from its merchandising and jobbing
operations; and

       

      (B) other income of the
Company for such period derived from interest on bank balances and from current
working capital invested in unpledged obligations of the United States of
America or of any state or of any municipality or subdivision thereof, and other
currently earned income of the Company derived from the ownership of securities,
in the treasury of the Company and unpledged, of operating electric, gas or
steam companies (including natural or mixed gas production, storage,
transportation or distribution companies) or from unpledged advances to such
companies any of the securities of which are so owned, the sum of the
following:

       

      (C) operating expenses
of the Company for such period, including maintenance and repairs, rentals,
taxes (except taxes based upon net income), insurance and the cost of electrical
energy, gas or steam purchased for resale, but excepting expenses in connection
with operations, the net income only of which is included in clause (A) of
subdivision (ii) of this subparagraph (e), and excepting all reserves or charges
for amortization of debt discount and expense; and

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (D) an amount, if such
period shall end with the close of a calendar year, equal to the amount which
the Company is required by subparagraph (a) of this Section 1 to place, during
or at the close of such calendar year, to the credit of the “depreciation
reserve account”, mentioned in said subparagraph (a) (all determined without
deduction for any charge made to the “depreciation reserve account” permitted by
clause (3) of the proviso of subparagraph (a) of this Section (1), or, if
such period shall include parts of two (2) calendar years, then an amount which
shall be determined by (1) prorating, on a monthly basis over the portion of the
earlier year thus included, the amount which the Company shall have been so
required to credit to the “depreciation reserve account” during or at the close
of such earlier year, and (2) prorating, on a monthly basis over the portion of
the later of said two (2) years thus included, the amount which the Company
would be required to credit to such “depreciation reserve account” if such
credit were placed to such account at the close of such period;

       

      provided, however, that the
amount of other income of the Company, referred to in clause (B) of subdivision
(ii) of this subparagraph (e), shall not exceed 10% of said net earnings; and
income in the form of dividends received by the Company upon stock of any class
owned by it shall be considered as currently earned under the provisions of said
clause (B) to the extent that during such period the earnings of the paying
company shall be sufficient for the payment of dividends upon all stock of such
class during such period; and income in the form of interest received by the
Company upon evidences of indebtedness of any class owned by it shall be
considered as currently earned under the provisions of said clause (B) to the
extent that during such period the earnings of the paying company shall be
available for the payment of the interest accruing during such period upon all
indebtedness of such class, after deducting from such earnings all interest
charges accruing during such period upon obligations secured by prior liens;
and, in case any property owned by the Company at the date of the request to the
Trustee for the authentication of bonds or payment or withdrawal of cash shall
not have been owned by it during any part of any such period, or shall have been
owned by it during a part only of such period, then and in every such case the
net earnings (or net losses) of such property (ascertained in like manner as
above provided) during said period, or during such part thereof as shall have
preceded the acquisition of such property by the Company, shall be considered
and treated as net earnings (or net losses) of the Company for such period, and
shall be included in (or, if a net loss, deducted in determining) such net
earnings of the Company;

       

      (iii) “permanent
property” shall mean any and all plants, equipment, additions, improvements,
betterments, facilities, or other property of any kind (and includes
“extensions” and “purchased property” as those terms are used in the Mortgage)
acquired through construction, purchase, consolidation, exchange or otherwise,
as and for a part of the permanent or fixed investment for the business of the
Company and used or useful in connection with the generation and conversion of
electrical energy or in the manufacture of gas or steam or in the 

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      distribution or
transmission of electrical energy or gas or steam in the territory in which the
Company is now operating its present properties, or in territory contiguous
thereto, or in territory capable of economic interconnection therewith, but
“permanent property” shall not include cash, accounts or bills receivable,
securities, supplies, fuel or other assets ordinarily classed as quick assets,
or leasehold estates;

       

      (iv) “original cost” of
property shall mean the original cost of such property to the Company if
ascertainable from its records or, if such original cost is not ascertainable,
the value of such property at the time of its acquisition, such value to be
determined by an engineer or firm of engineers to be selected by the Company and
to be acceptable to the Trustee, and the Trustee under such circumstances shall
be furnished with a certificate of such value signed by such engineer or firm of
engineers.

       

      (f) In connection with
any request to the Trustee for the authentication of bonds, pursuant to the
provisions of Section 5 of Article III of the Mortgage or the payment of cash
pursuant to the provisions of Section 6 of said Article III or the provisions of
Article IX of the Mortgage or the elimination or compensation of any excess of
the nature described in subdivision (2) of Section 4 of said Article III, for or
on account of expenditures for “permanent property”, the Company shall furnish
to the Trustee, in addition to the certificates and other documents required to
be delivered by the provisions of the Mortgage and the provisions of other
subparagraphs of this Section 1, the following:

       

      (i) An opinion of
counsel (who may be counsel for the Company), selected by the Company and
satisfactory to the Trustee, stating that the Company has acquired good title to
the property for or on account of the expenditures for which additional bonds
are requested to be authenticated and that such property is subject to the
Mortgage as a direct lien thereon, subject only to the lien of any mortgages or
easements existing or placed on any of such property at the time of its
acquisition, liens for taxes and assessments not due or, if due, in the course
of contest, judgments in the course of appeal or otherwise in contest and
secured by sufficient bond, liens arising out of proceedings in court in the
course of contest and undetermined liens and charges (if any) incidental to
current construction; and

       

      (ii) A certificate
signed by the President or the Executive Vice President or the Chief Financial
Officer or a Vice President and also by the Treasurer or an Assistant Treasurer
of the Company certifying that the property for or on account of the
expenditures for which bonds are requested to be authenticated or cash is
requested to be paid is “permanent property”.

       

      (g) The Company shall
not hereafter issue any bonds under any “underlying mortgage” as defined in
Section 4 of Article III of the Mortgage, or under any mortgage which could
become such an “underlying mortgage” upon compliance with clause (b) of the
proviso of subdivision (2) of said Section 4.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      (h) The Company shall
not request the Trustee to authenticate any bonds under the provisions of
Section 2 or Section 3 or Section 4 of Article III of the Mortgage and shall not
apply for the payment of cash under Section 6 of said Article or under Article
IX of the Mortgage (i) for or on account of bonds of Series J deposited by the
Company with the Trustee in lieu of cash under the provisions of the sinking
fund provided for in the supplemental indenture, dated as of May 1, 1961,
or for or on account of bonds of Series J redeemed through the operation of said
sinking fund, or (ii) for or on account of bonds of Series K redeemed through
the operation of the sinking fund provided for in the supplemental indenture
dated as of July 15, 1966, or (iii) for or on account of bonds of Series L
redeemed through the operation of the sinking fund provided for in the
supplemental indenture dated as of August 15, 1967, or (iv) for or on
account of bonds of Series M redeemed through the operation of the sinking fund
provided for in the supplemental indenture dated as of September 15, 1970,
or (v) for or on account of bonds of Series N redeemed through the operation of
the sinking fund provided for in the supplemental indenture dated as of
April 1, 1972, or (vi) for or on account of bonds of Series O redeemed
through the operation of the sinking fund provided for in the supplemental
indenture dated as of July 15, 1973, or (vii) for or on account of bonds of
Series T redeemed through the operation of the sinking fund provided for in the
supplemental indenture dated as of August 15, 1980, or (viii) on account of
any cancelled or uncancelled underlying bonds (or any uncancelled underlying
bonds deposited as collateral under Section 4 of Article III of the Mortgage)
which shall have been deposited under the provisions of the supplemental
indenture, dated as of August 1, 1941, in lieu of cash.

       

      (i) In the event of the
acquisition at any time by any federal, state or municipal authority of all or
substantially all of the income-producing properties of the Company which are
subject to the lien of the Mortgage, the Company shall be deemed to have elected
to redeem and to have requested the Trustee to redeem all the bonds of all
series at the respective applicable redemption price or prices (together with
accrued interest to the date of redemption), without the payment of any premium,
on a date determined by the Trustee in its discretion to be the earliest
practicable redemption date after receipt by the Trustee of all cash which the
Trustee is entitled to receive in respect of such acquisition by such federal,
state or municipal authority.  If the cash so received by the Trustee
and all other cash then held by the Trustee as such, except funds held in trust
for the benefit of the holders of particular bonds and coupons, is not
sufficient to effect the redemption of all the bonds of all series as aforesaid
and to pay all amounts owing to the Trustee under the Mortgage as supplemented
(including fees and expenses to be incurred by the Trustee in connection with
such redemption), the Company covenants and agrees that, within five (5) days
after receipt by the Trustee of all cash which the Trustee is entitled to
receive as aforesaid in respect of such acquisition, the Company will deposit
with the Trustee for that purpose cash in an amount sufficient to make up such
deficiency.

       

      Upon receipt by the
Trustee of moneys sufficient for said purposes, notice of such redemption shall
be given by the Trustee for and on behalf and in the name of the
Company.  To the extent that such cash received, held and deposited as
aforesaid shall be required for the purpose of redeeming bonds pursuant to this
subparagraph (i), the 

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

         

      

      Company shall be
deemed to have directed the Trustee to apply the same for the purpose, and the
balance, if any, after payment of all said amounts owing to the Trustee, shall
be paid to or upon the order of the Company.

       

      (j) The Company shall
promptly classify as “property replaced or retired”, for the purposes of clause
(B) of subdivision (i) of subparagraph (c) of this Section 1 during any period
all property which has been replaced or has permanently ceased to be used or
useful in the business of the Company, but the Company shall not, in making such
classification, be bound by determinations, rulings or orders made by regulatory
authorities for rate-making or other purposes.

       

      (k) The Company shall
not consolidate with or merge into any other corporation or transfer or lease
all or substantially all the mortgaged property as an entirety to any other
corporation, unless the corporation resulting from such consolidation or the
corporation into which the Company shall have been merged or the corporation to
which such transfer or lease shall have been made shall, by an instrument
executed and delivered to the Trustee, assume the due and punctual payment of
the principal of and premium, if any, and interest on all the bonds of all
series according to their tenor at the time outstanding under the Mortgage and
the due and punctual performance and observance of all the covenants and
conditions of the Mortgage and all indentures supplemental thereto to be
performed or observed by the Company.

       

      Section
2. After-Acquired Property Subject to
Mortgage.  The
Company covenants and agrees that any and all property hereafter acquired by the
Company and any and all improvements, extensions, betterments or additions to
property of the Company, which by the Original Mortgage or any indenture
supplemental thereto are to become subject to the Mortgage, immediately upon the
acquisition thereof by the Company or upon such improvements, extension,
betterments, or addition being made, as the case may be, and without any further
conveyance, mortgage, assignment or act on the part of the Company or the
Trustee, or either of them shall become and be subject to the lien of the
Mortgage fully and completely as though owned by the Company at the date of the
execution of the Original Mortgage and at the date of the Indenture dated the
first day of March, 1928, mentioned in the second paragraph of the recitals of
this Supplemental Indenture and at the dates of the supplemental indentures
dated May 20, 1936, March 10, 1950, as of June 1, 1951, as of
August 15, 1967, as of September 15, 1970, as of March 1, 2000,
as of February 1, 2003, as of February 1, 2003, as of
February 15, 2003, as of April 15, 2003, as of October 1, 2003,
as of October 1, 2003, as of November 1, 2003, as of January 1,
2005, as of November 1, 2008 and as of November 1, 2008 respectively,
mentioned in the fourth paragraph of the recitals of this Supplemental
Indenture, and at the date of this Supplemental Indenture, and specifically
described in the granting clauses of the Original Mortgage or said Indenture or
said supplemental indentures, but the provisions of this Section 2 shall not
limit the generality of the provisions of Sections 12 and 13 of Article IV of
the Original Mortgage.

       

      Section
3. Documents to Furnish Upon
Acquisition of Land.  The
Company covenants and agrees that in the furtherance of, but without limiting
the generality of, the provisions of Sections 12 and 13 of Article IV of the
Mortgage or of Section 2 of this Article II, the Company will furnish to the
Trustee on November 1, 1944, and thereafter within sixty (60) 

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      days after and as
often as the Company shall have acquired, subsequent to September 3, 1944,
any additional land or lands or interest or interests in land, or any new plant
or plants, not included in any certificate theretofore furnished pursuant to
this Section 3, the aggregate cost of which shall equal or exceed $500,000, and
at such other times as thirty six (36) months shall have elapsed since the date
of furnishing the last preceding certificate to the Trustee pursuant to this
Section 3, the following:

       

      (a) a certificate,
signed by the President or the Executive Vice President or the Chief Financial
Officer or a Vice President and by the Treasurer or an Assistant Treasurer of
the Company and dated as of a date not more than sixty (60) days preceding the
date as of which such certificate is required to be filed pursuant to this
Section 3, briefly describing any additional land or interest in land and any
new plant which the Company may have acquired since the date of the most recent
Certificate furnished to the Trustee pursuant to this Section, or, in the case
of the first such certificate, since the date of the execution and delivery of
the Indenture dated the first day of March, 1928 mentioned in the second
paragraph of the recitals of this Supplemental Indenture, which is required by
the provisions of the Mortgage and this Supplemental Indenture, to be subjected
to the lien of the Mortgage;

       

      (b) the mortgages,
deeds, covenants, assignments, transfers and instruments of further assurance,
if any, specified in the opinion of counsel referred to in the following
subparagraph (c); and

       

      (c) an opinion of
counsel, who may be counsel for the Company, specifying the mortgages, deeds,
covenants, assignments, transfers and instruments of further assurance which
will be sufficient to subject to the direct lien of the Mortgage (so far as
permitted by law) all the Company’s right, title and interest in and to the land
and interest in land and any plant described in said certificate, or stating
that no such mortgage, deed, conveyance, assignment, transfer or instrument of
further assurance is necessary for such purpose, and that, upon the recordation
or filing or registering, in the manner stated in such opinion, of the
instruments so specified, if any, and upon the recordation and filing and
registering of the Mortgage or any supplemental indenture in the manner stated
in such opinion, or without any such recordation or filing or registering if
such opinion shall so state, the Mortgage will (so far as permitted by law)
constitute a valid lien upon all the Company’s right, title and interest in and
to such land, interest in land or plant as against all creditors and subsequent
purchasers, subject only to the lien of any mortgages or easements existing or
placed on such property at the time of its acquisition by the Company, liens for
taxes and assessments not due, or, if due, in the course of appeal or otherwise
in contest, liens arising out of proceedings in court in the course of contest
and undetermined liens and charges (if any) incidental to current
construction.

       

      For the purposes of
this Section 3, any certificate heretofore or hereafter delivered to the Trustee
pursuant to Section 3 of Article III of Division B of the supplemental indenture
dated as of June 1, 1951, or pursuant to Section 3 of Article III of the
Supplemental Indenture dated as of July 1, 1954, or pursuant to Section 3 of
Article III of any of the supplemental indentures dated, as of May 1, 1961, as
of July 15, 1966, as of August 15, 1967, as of September 15, 1970, as of April
1, 1972, or as of July 15, 1973, or pursuant to Section 3 of Article II of any
of the 

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

         

      

      Supplemental
Indentures dated as of October 1, 1973, as of October 1, 1974, as of December 1,
1974, or as of April 1, 1975, or pursuant to Section 3 of Article III of the
Supplemental Indenture dated as of August 15, 1980, or pursuant to Section 3 of
Article II of any of the supplemental indentures dated as of June 1, 1984,
as of June 1, 1984, as of October 1, 1984, as of March 1, 1985,
as of March 1, 1985, as of March 1, 1985, as of March 1, 1985, as
of May 1, 1990, as of April 1, 1993, as of December 1, 1993, as
of June 1, 1995, as of March 1, 2000, as of March 1, 2000, as of March
1, 2000, as of March 1, 2000, as of February 1 2003, as of February 1,
2003, as of February 15, 2003, as of April 15, 2003, as of
October 1, 2003, as of October 1, 2003, as of November 1, 2003,
as of January 1, 2005, as of November 1, 2008 or as of November 1,
2008 shall be deemed to have been delivered in compliance with this Section
3.

       

      Section
4. Discharge of Prior
Liens.  The
Company covenants and agrees that, upon cancellation and discharge of any “prior
lien”, the Company shall cause all cash or obligations then held by the trustee
or other holder of such prior lien, which were received by such trustee or other
holder by reason of the release of, or which represent the proceeds of the
taking by eminent domain or any disposition of, or the proceeds of insurance on,
any of the properties at any time subject to the lien of the Mortgage (including
all proceeds of or substitutions for any thereof), to be paid to or deposited
and pledged with the Trustee, subject to any lien or charge prior to the lien of
the Mortgage, such cash to be held and paid over or applied by the Trustee, and
such obligations to be held and disposed of, as provided in Article IX of the
Mortgage; provided,
however, that in lieu of taking or delivering to the Trustee all or any
part of such cash or obligations, the Company may deliver to the Trustee a
certificate of the trustee or such other holder of such prior lien, stating that
a specified amount thereof has been deposited with such trustee or other holder
pursuant to the requirements of such other prior lien, in which case there shall
also be delivered to the Trustee an opinion of counsel, who may be counsel for
the Company, stating that such deposit is required by such other prior
lien.  The term “prior lien” as used in this Section 4 shall mean and
include any “underlying mortgage” and shall also mean and include any other lien
(except liens for taxes and assessments not due, or, if due, in the course of
appeal or otherwise in contest, liens arising out of proceedings in court in
course of contest and undetermined liens and charges, if any, incidental to
current construction) prior to the lien of the Mortgage upon property acquired
by the Company after the execution and delivery of the Indenture, dated the
first day of March, 1928, referred to in the second paragraph of the recitals of
this Supplemental Indenture, existing on said property or placed thereon to
secure unpaid portions of the purchase price, at the time of such
acquisition.

       

      ARTICLE
III

      MISCELLANEOUS

       

      Section
1. Trustee’s
Acceptance.  The
Trustee hereby accepts the trusts hereunder and agrees to perform the same upon
the terms and subject to the applicable provisions of the Mortgage and the
indentures supplemental thereto now in effect.

       

      Section
2. Execution of Supplemental
Indenture.  This
Supplemental Indenture is executed by the parties hereto pursuant to the
provisions of Article XVI of the Mortgage, and so long as any of the bonds of
Series UU are or shall be outstanding the terms and conditions of this
Supplemental Indenture shall be deemed to be a part of the terms and conditions
of the Mortgage for any and all purposes.  The provisions of this
Supplemental Indenture shall be inapplicable 

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      and shall terminate
and become void and of no effect upon the payment or redemption of all of the
bonds of Series UU in accordance with the provisions of the Mortgage and of the
bonds of Series UU.

       

      Section
3. Assignment.  All
covenants, conditions and provisions contained in this Supplemental Indenture by
or on behalf of the Company shall bind its successors and assigns, whether so
expressed or not, legally or equitably under or by reason of this Supplemental
Indenture.

       

      Section
4. Effective Time of Supplemental
Indenture.  Although
this Supplemental Indenture is dated as of September 1, 2009, it shall be
effective only from the actual time of its execution and delivery by the Company
and the Trustee on the date indicated by their respective acknowledgments hereto
annexed.

       

      Section
5. Governing Law.  This
Supplemental Indenture shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the law of the State of
Illinois, excluding choice-of-law principles of such State that would permit the
application of the laws of a jurisdiction other than such State.

       

      Section
6. Counterparts.  This
Supplemental Indenture may be simultaneously executed in any number of
counterparts and all such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument entered into by the
parties hereto pursuant to the provisions of Article XVI of the
Mortgage.

       

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

      In Witness Whereof,
The Peoples Gas Light and Coke Company has caused this instrument to be executed
in its corporate name by its Chairman, President, the Executive Vice President,
the Chief Financial Officer, Treasurer or a Vice President, and its corporate
seal to be hereunto affixed and attested by its Secretary or an Assistant
Secretary, and U.S. Bank National Association, as Trustee under the Mortgage,
has caused this instrument to be executed in its corporate name by one of its
Vice Presidents and its corporate seal to be hereto affixed and attested by one
of its Assistant Vice Presidents, all as of the day and year first above
written.

       

      
        	 
    	 
    	
                The
      Peoples Gas Light and Coke Company

              
	 
    	 
    	 
    
	
                (SEAL)

              	 
    	 
    
	 
    	 
    	
                By: /s/ Bradley A.
      Johnson 

              
	 
    	 
    	
                Bradley A.
      Johnson

              
	
                Attest:

              	 
    	
                Its:  Treasurer

              
	 
    	 
    	 
    
	/s/
      Barth J. Wolf	 
    	 
    
	
                Barth J.
      Wolf

              	 
    	 
    
	
                Its:  Secretary

              	 
    	 
    
	 
    	 
    	
                U.S.
      Bank National Association

              
	 
    	 
    	 
    
	
                (SEAL)

              	 
    	 
    
	 
    	 
    	
                By /s/ Richard
    Prokosch

              
	 
    	 
    	
                Richard
      Prokosch

              
	
                Attest:

              	 
    	
                Its:   Vice
      President

              
	 
    	 
    	 
    
	/s/
      Raymond Haverstock	 
    	 
    
	
                Raymond
      Haverstock

              	 
    	 
    
	
                Its:   Vice
      President

              	 
    	 
    

      

      

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      State
of
Wisconsin          )

      )  SS

      County
of
Brown            )

       

      I, Christine G.
Wiesner, a Notary Public in and for said County and State aforesaid, Do Hereby
Certify that Bradley A. Johnson, the Treasurer of The Peoples Gas Light and Coke
Company, an Illinois corporation, and Barth J. Wolf, the Secretary of said
corporation, who are both personally known to me to be the same persons whose
names are subscribed to the foregoing instrument as such Treasurer and
Secretary, respectively, and who are both personally known to me to be the
Treasurer and Secretary, respectively, of said corporation, appeared before me
this day in person and severally acknowledged that they signed, sealed and
delivered said instrument as their free and voluntary act as such Treasurer and
Secretary, respectively, of said corporation, and as the free and voluntary act
of said corporation, for the uses and purposes therein set forth.

       

      Given under my hand
and notarial seal the 30th day of
September, 2009.

       

      
/s/
Christine G. Wiesner

      Notary Public,
Christine G. Wiesner

       

      My commission
expires on the 30th day of
May 2010.

       

      

       

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      State
of Minnesota         )

      )  SS

      County
of
Ramsey           )

       

      I, Denise R.
Landeen, a Notary Public in and for said County and State aforesaid, Do Hereby
Certify that Richard Prokosch, a Vice President of U.S. Bank National
Association, a corporation organized under the laws of the United States of
America, and Raymond Haverstock, a Vice President of said corporation, who are
both personally known to me to be the same persons whose names are subscribed to
the foregoing instrument as such Vice President and Vice President,
respectively, and who are both personally known to me to be Vice President and
Vice President, respectively, of said corporation, appeared before me this day
in person and severally acknowledged that they signed, sealed and delivered said
instrument as their free and voluntary act as Vice President and Vice President,
respectively, of said corporation, and as the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

       

      Given under my hand
and notarial seal the 30th day of
September, 2009.

       

      

      /s/
Denise R. Landeen

      Notary
Public

       

      My commission
expires on the 31st day of
January 2012.

       

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

      Schedule
A

      

      The Company hereby mortgages and conveys unto
the Trustee, its successor or successors in trust, the property described
below.

      

      TO HAVE AND TO HOLD all of said property hereby
conveyed and mortgaged or intended to be conveyed and mortgaged, together with
the rents, issues and profits thereof, unto the Trustee, and its successor or
successors in trust and their assigns in trust, under the and subject to all of
the terms, conditions and provisions of the Mortgage (as the Mortgage is defined
herein) and of this Supplemental Indenture as fully and in all respects as if
said property had originally been described in said Mortgage.

      

      Subject, however, to the reservations,
exceptions, limitations and restrictions contained in the several deeds, leases,
servitudes, contracts or other instruments through which the Company acquired
and/or claimed title to and/or enjoys the use of the mortgaged property, and
subject also to any mortgages or easements existing or placed on any of said
property at the time of its acquisition, liens for taxes and assessments not due
or, if due, in the course of contest, judgments in the course of appeal or
otherwise in contest and secured by sufficient bond, liens arising out of
proceedings in court in the course of contest and undetermined liens or charges
(if any) incidental to construction, and subject also to such servitude,
easements, rights and privileges in, over, on or through said property as may
have been granted by the Company to other persons prior to the date of this
Supplemental Indenture.

      

      BUT IN TRUST, NEVERTHELESS, for the equal and
proportionate benefit and security of the holders of all bonds and interest
coupons now or hereafter issued under the Mortgage and for the enforcement of
and payment of said bonds and coupons when payable and the performance of and
compliance with the covenants and conditions of the Mortgage without any
preference, distinction or priority as to lien or otherwise of any bond or bonds
over others by reason of difference in time of the actual issue, sale or
negotiation thereof; but so that each and every bond now or hereafter issued
under the Mortgage shall have the same lien so that the interest and principal
of any and all of such bonds shall, subject to the terms of the Mortgage, be
equally and proportionately secured thereby, as if they had been made, executed,
delivered, sold and negotiated simultaneously with the execution
thereof.

      

      UPON CONDITION that, until the happening of an
event of default as provided in the Mortgage, the Company shall be suffered and
permitted to possess, use and enjoy the property, rights, privileges and
franchises conveyed herein and to receive and use the rents, issues, income,
revenues, earnings and profits thereof.

      

      (continued on next
page)

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      DESCRIPTION
OF CERTAIN PROPERTY

      SUBJECT
TO THE LIEN OF THE MORTGAGE

       

      Easements, Rights of Way and
Other Property Interests

      

      All rights of way,
easements, franchises, licenses, permits, privileges, leases, leaseholds and
other authority granted to the Company for the purpose of constructing,
installing, operating, using, maintaining, renewing, replacing or relocating gas
mains, pipelines, services  and other facilities on, over or in
private property owned by others, including, without limiting the generality of
the foregoing, those certain easements granted to the Company by the grantors
hereinafter named and filed for record and recorded as hereinafter set forth, to
wit:

      

      Cook
County

      

      
        	
                 

                Grantor

              	
                Cook
      County

                Document
      Number

              	
                Permanent
      Index

                Number

              	
                Date
      of

                Instrument

              	
                Date

                Recorded

              
	
                Saliers
      Development

              	
                0829118041

              	
                13-36-422-023-0000

              	
                10/16/2008

              	
                10/17/2008

              
	
                13-36-422-024-0000

              
	
                Chicagoland
      Laborer’s District Council Training and Apprentice Fund

              	
                0829439030

              	
                13-32-400-050-0000

              	
                10/17/2008

              	
                10/20/2008

              
	
                13-32-400-048-0000

              
	
                Scottsdale
      Center

              	
                0830529043

              	
                19-34-100-006-0000

              	
                10/30/2008

              	
                10/31/2008

              
	
                19-34-100-007-0000

              
	
                JTA
      Development

              	
                0834718088

              	
                25-29-111-001-0000

              	
                12/12/2008

              	
                12/12/2008

              
	
                25-29-112-001-0000

              
	
                25-29-112-002-0000

              
	
                25-29-112-003-0000

              
	
                25-29-112-004-0000

              
	
                25-29-112-005-0000

              
	
                25-29-112-006-0000

              
	
                25-29-112-007-0000

              
	
                25-29-112-011-0000

              
	
                Chicago
      Housing Authority

              	
                0922603052

              	
                20-03-107-005-0000

              	
                08/13/09

              	
                08/14/09

              
	
                20-03-107-006-0000

              
	
                20-03-107-007-0000

              
	
                20-03-107-020-0000

              

      

      

      Will
County

      

      
        	
                 

                Grantor

              	
                Will
      County

                Document
      Number

              	
                Permanent
      Index

                Number

              	
                Date
      of

                Instrument

              	
                Date

                Recorded

              
	
                PERC
      Holdings, LLC

              	
                R2008150209

              	
                11-07-400-011-0000

              	
                12/22/08

              	
                12/30/08

              

      

      

       

      
        
           

        

        
          A-2Indenture

Exhibit 4.3

Form of Indenture

HOME EQUITY LOAN TRUST ____-__,

Issuer

AND

[__________________]

INDENTURE TRUSTEE

_____________________________________________

INDENTURE

Dated as of _________, ____

_____________________________________________

HOME EQUITY LOAN NOTES

SERIES _____-__

ARTICLE I

DEFINITIONS

1

Section 1.01.

Definitions

1

Section 1.02.

Incorporation by Reference of Trust Indenture Act

2

Section 1.03.

Rules of Construction

2

ARTICLE II

ORIGINAL ISSUANCE OF NOTES

2

Section 2.01.

Form

2

Section 2.02.

Execution, Authentication and Delivery

3

Section 2.03.

Opinions of Counsel

4

ARTICLE III

COVENANTS

4

Section 3.01.

Collection of Payments on Mortgage Loan Accounts

4

Section 3.02.

Maintenance of Office or Agency

4

Section 3.03.

Money for Payments To Be Held in Trust; Paying Agent; 

Certificate Paying Agent

4

Section 3.04.

Existence

6

Section 3.05.

Payment of Principal and Interest; Defaulted Interest

6

Section 3.06.

Protection of Trust Estate

8

Section 3.07.

Opinions as to Trust Estate

9

Section 3.08.

[Reserved]

10

Section 3.09.

Performance of Obligations; Servicing Agreement

10

Section 3.10.

Negative Covenants

11

Section 3.11.

Annual Statement as to Compliance

12

Section 3.12.

Recording of Assignments

13

Section 3.13.

Representations and Warranties Concerning the Mortgage 

Loans

13

Section 3.14.

Indenture Trustee’s Review of Related Documents

14

Section 3.15.

Trust Estate; Related Documents

14

Section 3.16.

Amendments to Servicing Agreement

15

Section 3.17.

Master Servicer as Agent and Bailee of Indenture Trustee

15

Section 3.18.

Investment Company Act

15

Section 3.19.

Issuer May Consolidate, etc., Only on Certain Terms

16

Section 3.20.

Successor or Transferee

17

Section 3.21.

No Other Business

17

Section 3.22.

No Borrowing

17

Section 3.23.

Guarantees, Loans, Advances and Other Liabilities

18

Section 3.24.

Capital Expenditures

18

Section 3.25.

[Reserved]

18

Section 3.26.

Restricted Payments

18

Section 3.27.

Notice of Events of Default

18

Section 3.28.

Further Instruments and Acts

18

Section 3.29.

Statements to Noteholders

18

Section 3.30.

[Reserved] [Grant of the Additional Loans

18

Section 3.31.

Determination of Note Rate and Certificate Rate

19

Section 3.32.

Payments under the Credit Enhancement Instrument

20

Section 3.33.

Replacement Credit Enhancement Instrument

20

ARTICLE IV

THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

21

Section 4.01.

The Notes[; Increase of Maximum Variable Funding Balance; 

Additional Variable Funding Notes]

21

Section 4.02.

Registration of and Limitations on Transfer and Exchange of 

Notes; Appointment of Certificate Registrar

23

Section 4.03.

Mutilated, Destroyed, Lost or Stolen Notes

24

Section 4.04.

Persons Deemed Owners

25

Section 4.05.

Cancellation

25

Section 4.06.

Book-Entry Notes

26

Section 4.07.

Notices to Depository

26

Section 4.08.

Definitive Notes

27

Section 4.09.

Tax Treatment

27

Section 4.10.

Satisfaction and Discharge of Indenture

27

Section 4.11.

Application of Trust Money

28

Section 4.12.

Subrogation and Cooperation

28

Section 4.13.

Repayment of Moneys Held by Paying Agent

29

ARTICLE V

REMEDIES

29

Section 5.01.

Events of Default

29

Section 5.02.

Acceleration of Maturity; Rescission and Annulment

30

Section 5.03.

Collection of Indebtedness and Suits for Enforcement by 

Indenture Trustee

30

Section 5.04.

Remedies; Priorities

32

Section 5.05.

Optional Preservation of the Trust Estate

34

Section 5.06.

Limitation of Suits

35

Section 5.07.

Unconditional Rights of Noteholders To Receive Principal and 

Interest

35

Section 5.08.

Restoration of Rights and Remedies

35

Section 5.09.

Rights and Remedies Cumulative

35

Section 5.10.

Delay or Omission Not a Waiver

35

Section 5.11.

Control by Noteholders

36

Section 5.12.

Waiver of Past Defaults

36

Section 5.13.

Undertaking for Costs

36

Section 5.14.

Waiver of Stay or Extension Laws

37

Section 5.15.

Sale of Trust Estate

37

Section 5.16.

Action on Notes

39

Section 5.17.

Performance and Enforcement of Certain Obligations

39

ARTICLE VI

THE INDENTURE TRUSTEE

39

Section 6.01.

Duties of Indenture Trustee

39

Section 6.02.

Rights of Indenture Trustee

41

Section 6.03.

Individual Rights of Indenture Trustee

41

Section 6.04.

Indenture Trustee’s Disclaimer

41

Section 6.05.

Notice of Event of Default

41

Section 6.06.

Reports by Indenture Trustee to Holders

42

Section 6.07.

Compensation and Indemnity

42

Section 6.08.

Replacement of Indenture Trustee

42

Section 6.09.

Successor Indenture Trustee by Merger

43

Section 6.10.

Appointment of Co-Indenture Trustee or Separate Indenture 

Trustee

43

Section 6.11.

Eligibility; Disqualification

45

Section 6.12.

Preferential Collection of Claims Against Issuer

45

Section 6.13.

Representation and Warranty

45

Section 6.14.

Directions to Indenture Trustee

45

Section 6.15.

No Consent to Certain Acts of Depositor

45

ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS

45

Section 7.01.

Issuer To Furnish Indenture Trustee Names and Addresses of

Noteholders

45

Section 7.02.

Preservation of Information; Communications to Noteholders

46

Section 7.03.

Reports by Issuer

46

Section 7.04.

Reports by Indenture Trustee

46

ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES

47

Section 8.01.

Collection of Money

47

Section 8.02.

Trust Accounts

47

Section 8.03.

Opinion of Counsel

48

Section 8.04.

Termination Upon Distribution to Noteholders

48

Section 8.05.

Release of Trust Estate

49

Section 8.06.

Surrender of Notes Upon Final Payment

49

ARTICLE IX

SUPPLEMENTAL INDENTURES

49

Section 9.01.

Supplemental Indentures Without Consent of Noteholders

49

Section 9.02.

Supplemental Indentures With Consent of Noteholders

50

Section 9.03.

Execution of Supplemental Indentures

52

Section 9.04.

Effect of Supplemental Indenture

52

Section 9.05.

Conformity with Trust Indenture Act

52

Section 9.06.

Reference in Notes to Supplemental Indentures

52

ARTICLE X

[RESERVED]

53

ARTICLE XI

MISCELLANEOUS

53

Section 11.01.

Compliance Certificates and Opinions, etc

53

Section 11.02.

Form of Documents Delivered to Indenture Trustee

55

Section 11.03.

Acts of Noteholders

55

Section 11.04.

Notices, etc., to Indenture Trustee, Issuer, Credit Enhancer and 

Rating Agencies

56

Section 11.05.

Notices to Noteholders; Waiver

57

Section 11.06.

Alternate Payment and Notice Provisions

57

Section 11.07.

Conflict with Trust Indenture Act

57

Section 11.08.

Effect of Headings

58

Section 11.09.

Successors and Assigns

58

Section 11.10.

Separability

58

Section 11.11.

Benefits of Indenture

58

Section 11.12.

Legal Holidays

58

Section 11.13.

GOVERNING LAW

58

Section 11.14.

Counterparts

58

Section 11.15.

Recording of Indenture

58

Section 11.16.

Issuer Obligation

58

Section 11.17.

No Petition

59

Section 11.18.

Inspection

59

Section 11.19.

Authority of the Administrator

59

Section 11.20.

Intent of the Parties; Reasonableness

59

[Section 11.21.

U.S.A. Patriot Act

60]

EXHIBITS

Exhibit A-1  -  Form of Term Notes

Exhibit A-2  -  Form of Variable Funding Notes

Exhibit B  -  Mortgage Loan Schedule

Exhibit C  -  Form of Opinion to be delivered pursuant to Section 4.01(b)(ii)

Exhibit D  -  Form of Opinion to be delivered pursuant to Section 4.01(b)(iii)

Exhibit E  -  Loan Agreement

Exhibit F  -  Investment Letter

Exhibit G  -  Servicing Criteria To Be Addressed In Assessment Of Compliance

This Indenture, dated as of ______, ____, between HOME EQUITY LOAN TRUST ____-_, a Delaware business trust, as Issuer (the “Issuer”), and [________________], as Indenture Trustee (the “Indenture Trustee”),

WITNESSETH THAT:

Each party hereto agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Issuer’s Series _____-__ Asset Backed Term Notes (the “Notes”).

GRANTING CLAUSE

The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Holders of the Notes, all of the Issuer’s right, title and interest in and to whether now existing or hereafter created (a) the Mortgage Loans and all monies and proceeds due thereon after the Cut-off Date, (b) the Servicing Agreement and the Mortgage Loan Purchase Agreement, (c) all funds on deposit in the Funding Account, including all income from the investment and reinvestment of funds therein, (d) all funds on deposit from time to time in the Collection Account allocable to the Mortgage Loans; (e) all funds on deposit from time to time in the Payment Account and in all proceeds thereof; (f) the Policy; and (g) all present and future claims, demands, causes and chooses in action in respect of any or all of the foregoing and all payments on or under, and all proceeds of every kind and nature whatsoever in respect of, any or all of the foregoing and all payments on or under, and all proceeds of every kind and nature whatsoever in the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks, deposit accounts, 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 “Trust Estate” or 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, equally and ratably without prejudice, priority or distinction, and to secure 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 trust under this Indenture in accordance with the provisions hereof and agrees to perform its duties as Indenture Trustee as required herein.

ARTICLE I

DEFINITIONS

Section 1.01.

Definitions.  For all purposes of this Indenture, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Definitions attached hereto as Appendix A which is incorporated by reference herein.  All other capitalized terms used herein shall have the meanings specified herein.

Section 1.02.

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

“Commission” means the Securities and Exchange Commission.

“indenture securities” means the Notes.

“indenture security holder” means a Noteholder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means the Indenture Trustee.

“obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities.

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule have the meaning assigned to them by such definitions.

Section 1.03.

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; and

(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 and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns.

ARTICLE II

ORIGINAL ISSUANCE OF NOTES

Section 2.01.

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

The 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 Authorized Officers executing such Notes, as evidenced by their execution of such Notes.

The terms of the Notes set forth in Exhibits A-1[, A-2] and A-3 are part of the terms of this Indenture.

Section 2.02.

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

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

The Indenture Trustee shall upon Issuer Request authenticate and deliver Term Notes for original issue in an aggregate initial principal amount of $[______________] [and Variable Funding Notes for original issue in an aggregate initial principal amount of $[_____________]].  [The Security Balance of the Variable Funding Notes in the aggregate may not exceed the Maximum Variable Funding Balance.] The aggregate principal amount of Notes outstanding at any time may not exceed [the sum of] $[_____________] [and the Security Balance of Additional Variable Funding Notes issued pursuant to the terms of Section 4.01 hereof].

Each Note shall be dated the date of its authentication.  The Notes shall be issuable as registered Notes and the Term Notes shall be issuable in the minimum initial Security Balances of $[________] and in integral multiples of $[______] in excess thereof.

[Each Variable Funding Note shall be initially issued with a Security Balance of $[______] or, if applicable, with a Security Balance in the amount equal to the Additional Balance Differential for the Collection Period related to the Payment Date following the date of issuance of such Variable Funding Note pursuant to Section 4.01(c).]

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

Section 2.03.

Opinions of Counsel.  On the Closing Date, the Indenture Trustee shall have received:  (i) an Opinion of Counsel, in form and substance reasonably satisfactory to the Indenture Trustee and its counsel, with respect to securities law matters; (ii) an Opinion of Counsel, in form and substance reasonably satisfactory to the Indenture Trustee and its counsel, with respect to the tax status of the arrangement created by the Indenture; and (iii) an Opinion of Counsel to the Issuer, in form and substance reasonably satisfactory to the Indenture Trustee and its counsel, with respect to the due authorization, valid execution and delivery of this Indenture and with respect to its binding effect on the Issuer.

ARTICLE III

COVENANTS

Section 3.01.

Collection of Payments on Mortgage Loan Accounts.  The Indenture Trustee shall establish and maintain with itself a trust account (the “Payment Account”) in which the Indenture Trustee shall, subject to the terms of this paragraph, deposit, on the same day as it is received from the Master Servicer, each remittance received by the Indenture Trustee with respect to the Mortgage Loans.  The Indenture Trustee shall make all payments of principal of and interest on the Notes, subject to Section 3.03 as provided in Section 3.05 herein from moneys on deposit in the Payment Account.

Section 3.02.

Maintenance of Office or Agency.  The Issuer will maintain in the Borough of Manhattan, The City of New York, an office or agency where, subject to satisfaction of conditions set forth herein, Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served.  The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes.  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 3.03.

Money for Payments To Be Held in Trust; Paying Agent; Certificate Paying Agent.  (a) As provided in Section 3.01, all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn from the Payment Account pursuant to Section 3.01 shall be made on behalf of the Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the Payment Account for payments of Notes shall be paid over to the Issuer except as provided in this Section 3.03.

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 3.03, that such Paying Agent will:

(i)

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

(ii)

give the Indenture Trustee notice of any default by the Issuer of which it has actual knowledge 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 Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Paying Agent at the time of its appointment; and

(v)

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

The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Request direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such 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, any money held by the Indenture Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and remaining unclaimed for two 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 an Authorized Newspaper published in the English language, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.  The Indenture Trustee shall also adopt and employ, at the expense 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 Notes have been called but have not been surrendered for redemption or whose right to or interest in moneys due and payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each such Holder).

The Issuer hereby appoints [__________________] as Certificate Paying Agent and Residual Ownership Interest Paying Agent to make payments to Certificateholders and holders of the Residual Ownership Interest on behalf of the Issuer in accordance with the provisions of the Certificates, Section 3.05 hereof and the provisions of the Trust Agreement, and $[_______________] hereby accepts such appointment and further agrees that it will be bound by the provisions of the Trust Agreement relating to the Certificate Paying Agent and Residual Ownership Interest Paying Agent and will:

(i)

hold all sums held by it for the payment of amounts due with respect to the Certificates and the Residual Ownership Interest 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 as provided in the Trust Agreement and pay such sums to such Persons as herein and therein provided;

(ii)

give the Owner Trustee notice of any default by the Issuer of which it has actual knowledge in the making of any payment required to be made with respect to the Certificates;

(iii)

at any time during the continuance of any such default, upon the written request of the Owner Trustee forthwith pay to the Owner Trustee on behalf of the Issuer all sums so held in Trust by such Certificate Paying Agent;

(iv)

immediately resign as Certificate Paying Agent and forthwith pay to the Owner Trustee on behalf of the Issuer all sums held by it in trust for the payment of Certificates and the Residual Ownership Interest if at any time it ceases to meet the standards required to be met by the Certificate Paying Agent or the Residual Ownership Interest Paying Agent at the time of its appointment;

(v)

comply with all requirements of the Code with respect to the withholding from any payments made by it on any Certificates or the holders of the Residual Ownership Interest of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith; and

(vi)

deliver to the Owner Trustee a copy of the report to Certificateholders and holders of Residual Ownership Interest prepared with respect to each Payment Date by the Master Servicer pursuant to Section 4.01 of the Servicing Agreement.

Section 3.04.

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

Section 3.05.

Payment of Principal and Interest; Defaulted Interest.  (a) On each Payment Date from amounts on deposit in the Payment Account after making (x) any deposit to the Funding Account pursuant to Section 8.02(b) and (y) any deposits to the Payment Account pursuant to Section 8.02(c)(ii) and Section 8.02(c)(i)(2), the Indenture Trustee, on behalf of the Issuer shall pay to the Noteholders and the Certificate Paying Agent, on behalf of the Issuer shall pay to the Certificateholders and the Certificate Paying Agent, on behalf of the Issuer shall pay to the holders of the Residual Ownership Interest, and the Indenture Trustee, in its capacity as agent for the Issuer shall pay to other Persons, the amounts to which they are entitled as set forth below:

(i)

The sum of (x) to the Noteholders the sum of (a) one month’s interest at the Note Rate on the Security Balances of Notes immediately prior to such Payment Date and (b) any previously accrued and unpaid interest for prior Payment Dates and (y) to the Certificateholders, the Certificate Distribution Amount for such Payment Date;

(ii)

[if such Payment Date is after the Funding Period, to the Noteholders and the Certificateholders as the case may be,] as principal on the Term Notes[, Variable Funding Notes,] and the Certificates, the applicable Security Percentage of the Principal Collection Distribution Amount [and if such Payment Date is the first Payment Date following the end of the Funding Period (if ending due to an Amortization Event) or the Payment Date on which the Funding Period ends, to the Noteholders and Certificateholders as principal on the Term Notes, Variable Funding Notes, and Certificates the applicable Security Percentage of the amount deposited from the Funding Account in respect of Security Principal Collections];

(iii)

to the Noteholders and the Certificateholders, as the case may be, as principal on the Term Notes[, Variable Funding Notes] and the Certificates, pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up to the applicable Security Percentage of Liquidation Loss Amounts for the related Collection Period;

(iv)

to the Noteholders and the Certificateholders, as the case may be, as principal on the Term Notes[, Variable Funding Notes] and the Certificates, pro rata, based on the Security Balances from the amount remaining on deposit in the Payment Account, up to the applicable Security Percentage of Carryover Loss Amounts;

(v)

to the Credit Enhancer, in the amount of the premium for the Credit Enhancement Instrument [and for any Additional Credit Enhancement Instrument];

(vi)

to the Credit Enhancer, to reimburse it for prior draws made on the Credit Enhancement Instrument [and on any Additional Credit Enhancement Instrument] (with interest thereon as provided in the Insurance Agreement);

(vii)

to the Noteholders and the Certificateholders, as the case may be, as principal on the Term Notes[, Variable Funding Notes] and the Certificates, pro rata, based on the Security Balances from Security Interest Collections, up to the Accelerated Principal Distribution Amount for such Payment Date (such amount, if any, paid pursuant to this clause being referred to herein as the “Accelerated Principal Payment Amount”);

(viii)

to the Credit Enhancer, any other amounts owed to the Credit Enhancer pursuant to the Insurance Agreement;

(ix)

[Reserved];

(x)

to reimburse the Administrator for expenditures made on behalf of the Issuer with respect to the performance of its duties under the Indenture; and

(xi)

any remaining amounts to the holders of the Residual Ownership Interest as described in Section 5.01 of the Trust Agreement;

provided, however, in the event that on a Payment Date a Credit Enhancer Default shall have occurred and be continuing then the priorities of distributions described above will be adjusted such that payments of the Certificate Distribution Amount and all other amounts to be paid in respect of principal on the Certificates will not be paid until the full amount of interest and principal in accordance with clauses (i)(x) and (ii) through (iv) above that are due on the Notes on such Payment Date have been paid and provided, further, that on the Final Scheduled Payment Date or other final Payment Date, the amount to be paid pursuant to clause (ii) above shall be equal to the Security Balances of the Securities immediately prior to such Payment Date.

The amounts paid to Noteholders shall be paid to each Class in accordance with the Class Percentage as set forth in paragraph (b) below.  Interest will accrue on the Notes during an Interest Period on the basis of the actual number of days in such Interest Period and a year assumed to consist of 360 days.

Any installment of interest or principal, if any, payable on any Note or Certificate that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall, if such Holder holds Notes or Certificates other than the Designated Certificate of an aggregate initial Principal Balance of at least $[___________] be paid to each Holder of record on the preceding Record Date, by wire transfer to an account specified in writing by such Holder reasonably satisfactory to the Indenture Trustee as of the preceding Record Date or in all other cases or if no such instructions have been delivered to the Indenture Trustee, by check to such Noteholder mailed to such Holder’s address as it appears in the Note Register the amount required to be distributed to such Holder on such Payment Date pursuant to such Holder’s Securities; provided, however, that the Indenture Trustee shall not pay to such Holders any amount required to be withheld from a payment to such Holder by the Code.

(b)

The principal of each Note shall be due and payable in full on the Final Scheduled Payment Date for such Note as provided in the related form of Note set forth in Exhibits A-1 [and A-2].  All principal payments on each Class of Notes shall be made to the Noteholders of such Class entitled thereto in accordance with the Percentage Interests represented by such Notes.  Upon notice to the Indenture Trustee by the Issuer, 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 Final Scheduled Payment Date or other final Payment Date.  Such notice shall be mailed no later than five Business Days prior to such Final Scheduled Payment Date or other final Payment Date and shall specify that payment of the principal amount and any interest due with respect to such Note at the Final Scheduled Payment Date or other final Payment Date 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 such final payment.

Section 3.06.

Protection of Trust Estate.  (a) The Issuer will from time to time 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)

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

(ii)

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

(iii)

enforce any of the Mortgage Loans; or

(iv)

preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and the Noteholders in such Trust Estate against the claims of all persons and parties.

(b)

Except as otherwise provided in the Servicing Agreement or this Indenture, the Indenture Trustee shall not remove any portion of the Trust Estate that consists of money or is evidenced by an instrument, certificate or other writing from the jurisdiction in which it was held at the date of the most recent Opinion of Counsel delivered pursuant to Section 3.06 (or from the jurisdiction in which it was held as described in the Opinion of Counsel delivered at the Closing Date pursuant to Section 3.07(a), if no Opinion of Counsel has yet been delivered pursuant to Section 3.07(b) unless the Trustee shall have first received an Opinion of Counsel to the effect that the lien and security interest created by this Indenture with respect to such property will continue to be maintained after giving effect to such action or actions.

The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute any financing statement, continuation statement or other instrument required to be executed pursuant to this Section 3.06.

Section 3.07.

Opinions as to Trust Estate.  (a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee, the Owner Trustee and to the Administrator an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the delivery of the Mortgage Notes, the recording of the Assignments of Mortgage, the recording and filing of this Indenture, any indentures supplemental hereto, and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation statements, as are necessary to perfect and make effective the lien and security interest of this Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to make such lien and security interest effective.

(b)

On or before December 31 in each calendar year, beginning in 20__, the Issuer shall furnish to the Indenture Trustee and to the Administrator an Opinion of Counsel at the expense of the Issuer either stating that, in the opinion of such counsel, such action has been taken with respect to the recording of the Assignments of Mortgage, 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, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion of such counsel, be required to maintain the lien and security interest of this Indenture until December 31 in the following calendar year.

Section 3.08.

[Reserved]

Section 3.09.

Performance of Obligations; Servicing Agreement.  (a) The Issuer will punctually perform and observe all of its obligations and agreements contained in this Indenture, the Basic Documents and in the instruments and agreements included in the Trust Estate.  Except as otherwise expressly provided therein, the Issuer shall not waive, amend, modify, supplement or terminate any Basic Document, including without limitation the Servicing Agreement or any provision thereof without the consent of the Indenture Trustee or the Holders of at least a majority of the Security Balances of the Notes, the Master Servicer and the Credit Enhancer.  Upon the taking of any such action with respect to any Basic Document the Issuer shall give written notice thereof to the Rating Agencies.

(b)

The Issuer may contract with 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.  Initially, the Issuer has contracted with the Administrator to assist the Issuer in performing its duties under this Indenture.

(c)

The Issuer will not take any action or permit any action to be taken by others which would release any Person from any of such Person’s covenants or obligations under any of the documents relating to the Mortgage Loans or under any instrument included in the Trust Estate, or which would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any of the documents relating to the Mortgage Loans or any such instrument, except such actions as the Master Servicer is expressly permitted to take in the Servicing Agreement.

(d)

If the Issuer shall have knowledge of the occurrence of an Event of Servicing Termination, the Issuer shall promptly notify the Indenture Trustee thereof, and shall specify in such notice the action, if any, the Issuer is taking in respect of such Event of Servicing Termination.  If such Event of Servicing Termination arises from the failure of the Master Servicer to perform any of its duties or obligations under the Servicing Agreement with respect to the Mortgage Loans, the Issuer may remedy such failure, provided that if such Event of Servicing Termination arises from the failure by the Master Servicer to comply with requirements imposed upon it under Section 3.04 of the Servicing Agreement with respect to hazard insurance for the Mortgaged Properties securing the Mortgage Loans, the Issuer shall promptly, as the case may be, pay such premiums or obtain substitute insurance coverage meeting the requirements of said Section 3.04.  So long as any such Event of Servicing Termination shall be continuing, the Indenture Trustee may exercise its remedies set forth in Section 7.01 of the Servicing Agreement.  Unless granted or permitted by the Credit Enhancer or the Holders of Securities to the extent provided above, the Issuer may not waive any such Event of Servicing Termination or terminate the rights and powers of the Master Servicer under the Servicing Agreement.

(e)

Upon any termination of the Master Servicer’s rights and powers pursuant to Section 7.01 of the Servicing Agreement, all rights, powers, duties and responsibilities of the Master Servicer with respect to the Mortgage Loans shall vest in and be assumed by the Indenture Trustee, and the Indenture Trustee shall be the successor in all respect to the Master Servicer in its capacity as servicer with respect to the Mortgage Loans under the Servicing Agreement.  Upon any such termination, the Indenture Trustee is hereby authorized, and the Indenture Trustee hereby agrees, to mail a notice to each Mortgagor directing each such Mortgagor to mail all payments in respect of the related Mortgage Loan to the Indenture Trustee or its agent at the address specified in such notice.  The Indenture Trustee may resign as the Master Servicer by giving written notice of such resignation to the Issuer and the Credit Enhancer and in such event will be released from such duties and obligations, such release to be effective on the date a new servicer enters into a servicing agreement with the Issuer as provided below.  Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new servicer, satisfactory in all respects to the Indenture Trustee and the Credit Enhancer, which shall enter into a servicing agreement with the Issuer and the Indenture Trustee, such agreement to be not less favorable to the Credit Enhancer in its reasonable judgment, or the Noteholders if a Credit Enhancer Default shall have occurred and be continuing, than the Servicing Agreement in any material respect.  If, within 30 days after the delivery of the notice referred to above, the Issuer shall not have obtained such new servicer, the Indenture Trustee may appoint, or may petition a court of competent jurisdiction to appoint, a successor servicer acceptable to the Credit Enhancer to service the Mortgage Loans.  In connection with any such appointment, the Indenture Trustee may make such arrangements for the compensation of such successor as it and such successor shall agree, and the Issuer shall enter into an agreement with such successor for the servicing of the Mortgage Loans, such agreement to be substantially similar to the Servicing Agreement or otherwise acceptable to the Credit Enhancer; provided that any such compensation of the successor servicer unless otherwise agreed to by the Credit Enhancer, shall not be in excess of the Servicing Fee payable to the Master Servicer under the Servicing Agreement.  If the Indenture Trustee shall succeed to the Master Servicer’s duties as servicer of the Mortgage Loans as provided herein, it shall do so in its individual capacity and not in its capacity as Indenture Trustee.

(f)

The Issuer shall at all times retain an Administrator (approved by the Credit Enhancer under the Administration Agreement) and may enter into contracts with other Persons for the performance of the Issuer’s obligations hereunder, and performance of such obligations by such Persons shall be deemed to be performance of such obligations by the Issuer.

Section 3.10.

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

(i)

except as expressly permitted by this Indenture, sell, transfer, exchange or otherwise dispose of the Trust Estate, unless directed to do so by the Indenture Trustee;

(ii)

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

(iii)

(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 Trust Estate or any part thereof or any interest therein or the proceeds thereof or (C) permit the lien of this Indenture not to constitute a valid first priority security interest in the Trust Estate.

Section 3.11.

Annual Statement as to Compliance.  (a) The Issuer will deliver to the Indenture Trustee, within 90 days after the end of each fiscal year of the Issuer (commencing with the fiscal year 20__), an Officer’s Certificate stating, as to the Authorized Officer signing such Officer’s Certificate, that:

(i)

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

(ii)

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

(b)

On or before March [__] of each calendar year in which a Form 10-K is required to be filed on behalf of the Issuer, commencing in 20__, the Indenture Trustee shall deliver to the Issuer, the Administrator and the Master Servicer a report regarding the Indenture Trustee’s assessment of compliance with each of the Servicing Criteria specified on Exhibit G hereto during the immediately preceding reporting year accompanied by an attestation report by a registered public accounting firm, in each case as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  Such report shall be signed by an authorized officer of the Indenture Trustee, and shall address each of the Servicing Criteria specified on Exhibit G hereto.

Section 3.12.

Recording of Assignments.  The Issuer shall exercise its right under the Mortgage Loan Purchase Agreement with respect to the obligation of the Seller to submit or cause to be submitted for recording all Assignments of Mortgages on or prior to _________, 20__ with respect to the Initial Loans and within [__] days following the related Deposit Date with respect to any Additional Loans.

Section 3.13.

Representations and Warranties Concerning the Mortgage Loans.  The Issuer has pledged to the Indenture Trustee all of its right under the Mortgage Loan Purchase Agreement and the Indenture Trustee has the benefit of the representations and warranties made by the Seller in Section [_____] thereof, Section [____] thereof and Section [__] thereof concerning the Mortgage Loans and the right to enforce any remedy against the Seller provided in such Section [_____] or Section [_____] to the same extent as though such representations and warranties were made directly to the Indenture Trustee.

Section 3.14.

Indenture Trustee’s Review of Related Documents.  (a) The Indenture Trustee agrees, for the benefit of the holders of the Notes, to review, or the related Custodian shall review, unless the Indenture Trustee or such Custodian made such review prior to the Closing Date, on or prior to ________, 20__ the Related Documents delivered to it on or prior to the Closing Date and within 90 days of the related Deposit Date, the Related Documents delivered to it in connection with any Additional Loan, in each case in connection with the Grant of the Mortgage Loan listed on the Schedule of Mortgage Loans as security for the Notes.  Such review shall be limited to a determination that all documents referred to in the definition of the term Related Documents have been executed and are appropriately endorsed in the manner called for in the Mortgage Loan Purchase Agreement and that the Related Documents have been delivered with respect to each such Mortgage Loan (other than the documents related to (i) any Mortgage Loan so listed which has been subject to a Prepayment in full and termination of related Mortgage Loan, the proceeds of which have been deposited in the Collection Account in lieu of delivery of the applicable Related Documents, (ii) any Mortgage Loan with respect to which the related Mortgaged Property was foreclosed, repossessed or otherwise converted subsequent to the Cut-Off Date and prior to the Closing Date or with respect to which foreclosure proceedings have been commenced and for which the related Related Documents are required in connection with the prosecution of such foreclosure proceedings and for which the Issuer has delivered a trust receipt called for by Section 3.15(c) and (iii) any Mortgage Loan as to which the original Assignment of Mortgage has been submitted for recording), that all such documents have been executed, and that all such documents relate to the Mortgage Loans listed on the Schedule of Mortgage Loans.  In performing such review, the Trustee may rely upon the purported genuineness and due execution of any such document and on the purported genuineness of any signature thereon.

(b)

If any Related Document is defective in any material respect which may materially and adversely affect the value of the related Mortgage Loan, the interest of the Indenture Trustee or the Noteholders in such Mortgage Loan, or if any document required to be delivered to the Indenture Trustee has not been delivered, the Indenture Trustee or the related Custodian on behalf of the Indenture Trustee shall notify the Issuer, the Seller, the Credit Enhancer and the Master Servicer immediately after obtaining knowledge thereof and the Indenture Trustee, as assignee of the Issuer’s rights under the Mortgage Loan Purchase Agreement, shall exercise its remedies in respect of any such defect against the Seller as provided in the Mortgage Loan Purchase Agreement.

Section 3.15.

Trust Estate; Related Documents.  (a) When required by the provisions of this Indenture, the Indenture Trustee 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 which are not inconsistent with the provisions of this Indenture.  No party relying upon an instrument executed by the Indenture Trustee as provided in this Article III shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any moneys.

(b)

In order to facilitate the servicing of the Mortgage Loans, the Master Servicer is hereby authorized in the name and on behalf of the Indenture Trustee and the Issuer, to execute assumption agreements, substitution agreements, and instruments of satisfaction or cancellation or of partial or full release or discharge, or any other document contemplated by the Servicing Agreement and other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged Properties subject to the Mortgages (and the Indenture Trustee and the Owner Trustee shall promptly execute any such documents on request of the Master Servicer), subject to the obligations of the Master Servicer under the Servicing Agreement.  If from time to time the Master Servicer shall deliver to the Indenture Trustee or the related Custodian copies of any written assurance, assumption agreement or substitution agreement or other similar agreement pursuant to Section 3.05 of the Servicing Agreement, the Indenture Trustee or the related Custodian shall check that each of such documents purports to be an original executed copy (or a copy of the original executed document if the original executed copy has been submitted for recording and has not yet been returned) and, if so, shall file such documents, and upon receipt of the original executed copy from the applicable recording office or receipt of a copy thereof certified by the applicable recording office shall file such originals or certified copies with the Related Documents.  If any such documents submitted by the Master Servicer do not meet the above qualifications, such documents shall promptly be returned by the Indenture Trustee or the related Custodian to the Master Servicer, with a direction to the Master Servicer to forward the correct documentation.

(c)

Upon Issuer Request accompanied by an Officers’ Certificate of the Master Servicer pursuant to Section 3.07 of the Servicing Agreement to the effect that a Mortgage Loan has been the subject of a final payment or a prepayment in full and the related Mortgage Loan has been terminated or that substantially all Liquidation Proceeds which have been determined by the Master Servicer in its reasonable judgment to be finally recoverable have been recovered, and upon deposit to the Collection Account of such final monthly payment, prepayment in full together with accrued and unpaid interest to the date of such payment with respect to such Mortgage Loan or, if applicable, Liquidation Proceeds, the Indenture Trustee and the Issuer shall promptly release the Related Documents to the Master Servicer upon the order of the Issuer, along with such documents as the Master Servicer or the Mortgagor may request as contemplated by the Servicing Agreement to evidence satisfaction and discharge of such Mortgage Loan.  If from time to time and as appropriate for the servicing or foreclosure of any Mortgage Loan, the Master Servicer requests the Indenture Trustee or the related Custodian to release the Related Documents and delivers to the Indenture Trustee or the related Custodian a trust receipt reasonably satisfactory to the Indenture Trustee or the related Custodian and signed by a Responsible Officer of the Master Servicer, the Issuer and the Indenture Trustee or the related Custodian shall release the Related Documents to the Master Servicer.  If such Mortgage Loans shall be liquidated and the Indenture Trustee or the related Custodian receives a certificate from the Master Servicer as provided above, then, upon request of the Issuer, the Indenture Trustee or the related Custodian shall release the trust receipt to the Master Servicer upon the order of the Issuer.

(d)

The Indenture Trustee shall, at such time as there are no Notes Outstanding and no amounts due to the Credit Enhancer, release all of the Trust Estate to the Issuer (other than any cash held for the payment of the Notes pursuant to Section 3.03 or 4.11), subject, however, to the rights of the Indenture Trustee under Section 6.07.

Section 3.16.

Amendments to Servicing Agreement.  The Indenture Trustee may enter into any amendment or supplement to the Servicing Agreement only in accordance with Section 8.01 of the Servicing Agreement.  The Indenture Trustee may, in its discretion, decline to enter into or consent to any such supplement or amendment if its own rights, duties or immunities shall be adversely affected.

Section 3.17.

Master Servicer as Agent and Bailee of Indenture Trustee.  Solely for purposes of perfection under Section 9-305 of the Uniform Commercial Code or other similar applicable law, rule or regulation of the state in which such property is held by the Master Servicer, the Indenture Trustee hereby acknowledges that the Master Servicer is acting as agent and bailee of the Indenture Trustee in holding amounts on deposit in the Collection Account pursuant to Section 3.02 of the Servicing Agreement, as well as its agent and bailee in holding any Related Documents released to the Master Servicer pursuant to Section 3.15(c), and any other items constituting a part of the Trust Estate which from time to time come into the possession of the Master Servicer.  It is intended that, by the Master Servicer’s acceptance of such agency pursuant to Section 3.02 of the Servicing Agreement, the Trustee, as a secured party, will be deemed to have possession of such Related Documents, such moneys and such other items for purposes of Section 9-305 of the Uniform Commercial Code of the state in which such property is held by the Master Servicer.

Section 3.18.

Investment Company Act.  The Issuer shall not become an “investment company” or under the “control” of an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended (or any successor or amendatory statute), and the rules and regulations thereunder (taking into account not only the general definition of the term “investment company” but also any available exceptions to such general definition); provided, however, that the Issuer shall be in compliance with this Section 3.18 if it shall have obtained an order exempting it from regulation as an “investment company” so long as it is in compliance with the conditions imposed in such order.

Section 3.19.

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

(i)

the Person (if other than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing under the laws of the United States of America or any state or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and Certificates and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein;

(ii)

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

(iii)

the Rating Agencies shall have notified the Issuer that such transaction shall not cause the rating of the Notes or the Certificates to be reduced, suspended or withdrawn or to be considered by either Rating Agency to be below investment grade without taking into account the Credit Enhancement Instrument;

(iv)

the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse tax consequence to the Issuer, any Noteholder or any Certificateholder;

(v)

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

(vi)

the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such consolidation or merger and such supplemental indenture comply with this Article III and that all conditions precedent herein provided for relating to such transaction have been complied with (including any filing required by the Exchange Act).

(b)

The Issuer shall not convey or transfer any of its properties or assets, including those included in the Trust Estate, to any Person, unless:

(i)

the Person that acquires by conveyance or transfer the properties and assets of the Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United States citizen or a Person organized and existing under the laws of the United States of America or any state, (B) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein, (C) expressly agrees by means of such supplemental indenture that all right, title and interest so conveyed or transferred shall be subject and subordinate to the rights of Holders of the Notes, (D) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes and (E) expressly agrees by means of such supplemental indenture that such Person (or if a group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes;

(ii)

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

(iii)

the Rating Agencies shall have notified the Issuer that such transaction shall not cause the rating of the Notes or the Certificates to be reduced, suspended or withdrawn;

(iv)

the Issuer shall have received an Opinion of Counsel (and shall have delivered copies thereof to the Indenture Trustee) to the effect that such transaction will not have any material adverse tax consequence to the Issuer, any Noteholder or any Certificateholder;

(v)

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

(vi)

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

Section 3.20.

Successor or Transferee.  (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.19(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such Person had been named as the Issuer herein.

(b)

Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.19(b), the Issuer will be released from every covenant and agreement of this Indenture to be observed or performed on the part of the Issuer with respect to the Notes immediately upon the delivery of written notice to the Indenture Trustee that the Issuer is to be so released.

Section 3.21.

No Other Business.  The Issuer shall not engage in any business other than financing, purchasing, owning and selling and managing the Mortgage Loans in the manner contemplated by this Indenture and the Basic Documents and all activities incidental thereto.

Section 3.22.

No Borrowing.  The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness except for the Notes.

Section 3.23.

Guarantees, Loans, Advances and Other Liabilities.  Except as contemplated by this Indenture, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person.

Section 3.24.

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

Section 3.25.

[Reserved]

Section 3.26.

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, (w) distributions to the Owner Trustee and the Certificateholders as contemplated by, and to the extent funds are available for such purpose under the Trust Agreement, (x) payment to the Master Servicer pursuant to the terms of the Servicing Agreement and (y) payments to the Indenture Trustee pursuant to Section 1(a)(ii) of the Administration Agreement and (z) make distributions to the holders of the Residual Ownership Interest as contemplated by the Trust Agreement.  The Issuer will not, directly or indirectly, make payments to or distributions from the Collection Account except in accordance with this Indenture and the Basic Documents.

Section 3.27.

Notice of Events of Default.  The Issuer shall give the Indenture Trustee the Credit Enhancer and the Rating Agencies prompt written notice of each Event of Default hereunder and under the Trust Agreement.

Section 3.28.

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 3.29.

Statements to Noteholders.  The Indenture Trustee and the Certificate Registrar shall forward by mail to each Noteholder and Certificateholder, respectively, the Statement delivered to it pursuant to Section 4.01 of the Servicing Agreement.

Section 3.30.

[Reserved] [Grant of the Additional Loans.  (a) In consideration of the delivery on each Deposit Date to or upon the order of the Issuer of all or a portion of the amount in respect of Security Principal Collections on deposit in the Funding Account, the Issuer shall, to the extent of the availability thereof, on such Deposit Date during the Funding Period Grant to the Indenture Trustee all of its right, title and interest in the Additional Loans and simultaneously with the Grant of the Additional Loans the Issuer will deliver the related Related Documents to the Indenture Trustee or the related Custodian.

(b)

The obligation of the Indenture Trustee to accept the Grant of the Additional Loans and the other property and rights related thereto described in paragraph (a) above is subject to the satisfaction of each of the following conditions on or prior to each Deposit Date:

(i)

the Indenture Trustee shall not have received written notice from any Rating Agency or the Credit Enhancer to the effect that such transfer of Additional Loans would adversely affect the then current rating of the Notes or cause the rating assigned to the Securities to be below investment grade without taking into account the Credit Enhancement Instrument;

(ii)

the Indenture Trustee shall have received a revised Mortgage Loan Schedule, listing the Additional Loans;

(iii)

the Master Servicer shall confirm to the Indenture Trustee that it has deposited in the Collection Account all Principal Collections and Interest Collections in respect of such Additional Loans on or after the related Deposit Date for the Additional Loans;

(iv)

the Indenture Trustee shall have received a duly completed and executed Transfer Certificate in the form of Exhibit 1 to the Mortgage Loan Purchase Agreement;

(v)

the Seller at its expense and the Issuer at its expense, as appropriate, shall have provided the Rating Agencies and the Credit Enhancer with an opinion of counsel relating to the sale of the Additional Loans to the Issuer and the Grant of the Additional Loans to the Indenture Trustee which opinion shall be in the form of Exhibit 2 to the Mortgage Loan Purchase Agreement; and

(vi)

the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel confirming the satisfaction of each condition precedent specified in this paragraph (b).

(c)

The obligation of the Indenture Trustee to accept the Grant of an Additional Loan on the related Deposit Date is subject to each Additional Loan and the Additional Loans in the aggregate, as the case may be, satisfying the conditions set forth in the Mortgage Loan Purchase Agreement.]

Section 3.31.

Determination of Note Rate and Certificate Rate.  On the second LIBOR Business Day immediately preceding (i) the Closing Date in the case of the first Interest Period and (ii) the first day of each succeeding Interest Period, the Indenture Trustee shall determine LIBOR and the Note Rate and the Certificate Rate for such Interest Period and shall inform the Issuer, the Master Servicer and the Depositor at their respective facsimile numbers given to the Indenture Trustee in writing thereof.

Section 3.32.

Payments under the Credit Enhancement Instrument.  (a) On any Payment Date, other than a Dissolution Payment Date, the Indenture Trustee on behalf of the Noteholders, and in its capacity as Certificate Paying Agent on behalf of the Certificateholders shall make a draw on the Credit Enhancement Instrument in an amount if any equal to the sum of (x) the amount by which the sum of (i) interest accrued at the Note Rate on the Security Balance of the Notes plus (ii) the Certificate Distribution Amount exceeds the amount on deposit in the Payment Account available to be distributed therefor on such Payment Date and (y) the Guaranteed Principal Payment Amount (the “Credit Enhancement Draw Amount”).

(b)

The Indenture Trustee shall submit, if a Credit Enhancement Draw Amount is specified in any Statement to Holders prepared by the Master Servicer pursuant to Section 4.01 of the Servicing Agreement, the Notice for Payment (as defined in the Credit Enhancement Instrument) in the amount of the Credit Enhancement Draw Amount to the Credit Enhancer no later than 2:00 P.M., New York City time, on the second Business Day prior to the applicable Payment Date.  Upon receipt of such Credit Enhancement Draw Amount in accordance with the terms of the Credit Enhancement Instrument, the Indenture Trustee shall deposit such Credit Enhancement Draw Amount in the Payment Account for distribution to Holders pursuant to Section 3.05.

In addition, a draw may be made under the Credit Enhancement Instrument in respect of any Avoided Payment (as defined in and pursuant to the terms and conditions of the Credit Enhancement Instrument) and the Indenture Trustee shall submit a Notice for Payment with respect thereto together with the other documents required to be delivered to the Credit Enhancer pursuant to the Credit Enhancement Instrument in connection with a draw in respect of any Avoided Payment.

(c)

In the event that any Additional Credit Enhancement Instruments are issued pursuant to Section 4.01 and Section 2.02(B) of the Insurance Agreement, the Indenture Trustee shall be authorized to make draws thereon subject to the terms and conditions therein.

Section 3.33.

Replacement Credit Enhancement Instrument.  In the event of a Credit Enhancer Default or if the claims paying ability rating of the Credit Enhancer is downgraded and such downgrade results in a downgrading of the then current rating of the Securities (in each case, a “Replacement Event”), the Issuer, at its expense, in accordance with and upon satisfaction of the conditions set forth in the Credit Enhancement Instrument, including, without limitation, payment in full of all amounts owed to the Credit Enhancer, may, but shall not be required to, substitute a new surety bond or surety bonds for the existing Credit Enhancement Instrument or may arrange for any other form of credit enhancement; provided, however, that in each case the Notes and the Certificates shall be rated no lower than the rating assigned by each Rating Agency to the Notes and the Certificates immediately prior to such Replacement Event and the timing and mechanism for drawing on such new credit enhancement shall be reasonably acceptable to the Indenture Trustee and provided further that the premiums under the proposed credit enhancement shall not exceed such premiums under the existing Credit Enhancement Instrument.  It shall be a condition to substitution of any new credit enhancement that there be delivered to the Indenture Trustee (i) an Opinion of Counsel, acceptable in form to the Indenture Trustee, from counsel to the provider of such new credit enhancement with respect to the enforceability thereof and such other matters as the Indenture Trustee may require and (ii) an Opinion of Counsel to the effect that such substitution would not (a) adversely affect in any material respect the tax status of the Notes and the Certificates or (b) cause the Issuer to be subject to a tax at the entity level or to be classified as a taxable mortgage pool within the meaning of Section 7701(i) of the Code.  Upon receipt of the items referred to above and payment of all amounts owing to the Credit Enhancer and the taking of physical possession of the new credit enhancement, the Indenture Trustee shall, within five Business Days following receipt of such items and such taking of physical possession, deliver the replaced Credit Enhancement Instrument to the Credit Enhancer.  In the event of any such replacement the Issuer shall give written notice thereof to the Rating Agencies.

ARTICLE IV

THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

Section 4.01.

The Notes[; Increase of Maximum Variable Funding Balance; Additional Variable Funding Notes].  (a) The Term Notes shall be registered in the name of a nominee designated by the Depository.  Beneficial Owners will hold interests in the Term Notes through the book-entry facilities of the Depository in minimum initial Principal Balances of $[________] and integral multiples of $[_________] in excess thereof.  [The Capped Funding Notes will be issuable in minimum initial Principal Balances of $[_______] and integral multiples of $[________] in excess thereof, together with any additional amount necessary to cover the aggregate initial Principal Balance of the Capped Funding Notes surrendered at the time of the initial denominational exchange thereof (with such initial Principal Balance in each case being deemed to be the Principal Balance of the Capped Funding Notes at the time of such initial denominational exchange thereof).]

The Indenture Trustee may for all purposes (including the making of payments due on the Notes) deal with the Depository as the authorized representative of the Beneficial Owners with respect to the Term Notes for the purposes of exercising the rights of Holders of Term Notes hereunder.  Except as provided in the next succeeding paragraph of this Section 4.01, the rights of Beneficial Owners with respect to the Term Notes shall be limited to those established by law and agreements between such Beneficial Owners and the Depository and Depository Participants.  Except as provided in Section 4.08, Beneficial Owners shall not be entitled to definitive certificates for the Term Notes as to which they are the Beneficial Owners.  Requests and directions from, and votes of, the Depository as Holder of the Term Notes shall not be deemed inconsistent if they are made with respect to different Beneficial Owners.  The Indenture Trustee may establish a reasonable record date in connection with solicitations of consents from or voting by Noteholders and give notice to the Depository of such record date.  Without the consent of the Issuer and the Indenture Trustee, no Term Note may be transferred by the Depository except to a successor Depository that agrees to hold such Note for the account of the Beneficial Owners.

In the event the Depository Trust Company resigns or is removed as Depository, the Indenture Trustee with the approval of the Issuer may appoint a successor Depository.  If no successor Depository has been appointed within 30 days of the effective date of the Depository’s resignation or removal, each Beneficial Owner shall be entitled to certificates representing the Notes it beneficially owns in the manner prescribed in Section 4.08.

The Notes shall, on original issue, be executed on behalf of the Issuer by the Owner Trustee, not in its individual capacity but solely as Owner Trustee, authenticated by the Note Registrar and delivered by the Indenture Trustee to or upon the order of the Issuer.

[(b)

So long as no Amortization Event has occurred the Maximum Variable Funding Balance on the Closing Date may be increased from time to time by an aggregate amount not to exceed $[______________] and Additional Variable Funding Notes may be issued upon satisfaction of the following conditions:

(i)

the Indenture Trustee shall have received an Additional Credit Enhancement Instrument pursuant to the terms and conditions of the Insurance Agreement, including without limitation Section 2.02(B) thereof;

(ii)

the Indenture Trustee shall have received an Opinion of Counsel to the Credit Enhancer in the form attached hereto as Exhibit C;

(iii)

the Indenture Trustee shall have received an Opinion of Counsel in the form attached hereto as Exhibit D;

(iv)

the Indenture Trustee shall have received the documents specified in Section 11.01(a) (other than clause (iii) thereof).

The Security Balance of such Additional Variable Funding Notes in the aggregate will reflect the sum of (i) the related Excess Additional Balance Differential and (ii) the Additional Balance Differential for each Collection Period from the Collection Period during which the Additional Variable Funding Notes are issued until the new Maximum Variable Funding Balance is reached.  Notwithstanding the foregoing, the Security Balance of each specific Additional Variable Funding Note will be limited to the Maximum Individual Variable Funding Balance as provided in subsection (c) below.

The Additional Variable Funding Notes issued in connection with the first increase in the Maximum Variable Funding Balance pursuant to this subsection will bear the designation “A” (in addition to the numerical designation pursuant to subsection (c) below) and any subsequent Additional Variable Funding Notes issued in connection with any subsequent increases in the Maximum Variable Funding Balance will bear alphabetical designations in the order of their issuance.

Any Additional Variable Funding Notes shall be in the form of Exhibit A-2 hereof and for all purposes shall be Notes issued pursuant to this Indenture and all references to Variable Funding Notes herein shall include Additional Variable Funding Notes issued pursuant to this Section 4.01(b).

Upon the issuance of any Additional Variable Funding Notes the Issuer will deliver written notice thereof to the Rating Agencies.

(b)

Subject to the Maximum Variable Funding Balance at such time as the Security Balance of any Variable Funding Note reaches the Maximum Individual Variable Funding Balance no subsequent amounts in respect of the Additional Balance Differential shall be added to the Security Balance of such Variable Funding Note and instead a new Variable Funding Note shall be issued and executed on behalf of the Issuer by the Owner Trustee, not in its individual capacity but solely as Owner Trustee, authenticated by the Note Registrar and delivered by the Indenture Trustee to or upon the order of the Issuer.  All subsequent amounts in respect of the Additional Balance Differential shall be added to the Security Balance of such new Variable Funding Note (subject to the Maximum Variable Funding Balance) until the Security Balance thereof reaches the Maximum Individual Variable Funding Balance.

The Variable Funding Note issued on the Closing Date shall bear the Designation “1” and each new Variable Funding Note will bear sequential numerical designations in the order of their issuance.  On each Payment Date on or after the Accelerated Amortization Date a new Variable Funding Note will be issued on each Payment Date in a principal amount equal to the lesser of (a) the Maximum Individual Variable Funding Balance and (b) the Additional Balance Differential for such Payment Date, but in no event will the Principal Balance of the Variable Funding Notes exceed the Maximum Variable Funding Balance without satisfying the conditions of Section 4.01 hereof.]

Section 4.02.

Registration of and Limitations on Transfer and Exchange of Notes; Appointment of Certificate Registrar.  The Note Registrar shall cause to be kept at its Corporate Trust Office a Note Register in which, subject to such reasonable regulations as it may prescribe, the Note Registrar shall provide for the registration of Notes and of transfers and exchanges of Notes as herein provided.

Subject to the restrictions and limitations set forth below, upon surrender for registration of transfer of any Note at the Corporate Trust Office, the Indenture Trustee shall execute and the Note Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes in authorized initial Security Balances evidencing the same aggregate Percentage Interests.

[No Variable Funding Note, other than any Capped Funding Notes, may be transferred.  Subject to the provisions set forth below Capped Funding Notes may be transferred, provided that with respect to the initial transfer thereof by the Seller prior written notification of such transfer shall have been given to the Rating Agencies and to the Credit Enhancer by the Seller along with an Opinion of Counsel to the effect that such transfer will not constitute a fraudulent conveyance under the laws of the relevant jurisdiction.

No transfer of a Capped Funding Note shall be made unless such transfer is exempt from the registration requirements of the Securities Act of 1933, as amended, and any applicable state securities laws or is made in accordance with said Act and laws.  In the event of any such transfer, (i) unless such transfer is made in reliance upon Rule 144A under the 1933 Act, the Indenture Trustee or the Issuer may, require a written Opinion of Counsel (which may be in-house counsel) acceptable to and in form and substance reasonably satisfactory to the Indenture Trustee and the Issuer that such transfer may be made pursuant to an exemption, describing the applicable exemption and the basis therefor, from said Act and laws or is being made pursuant to said Act and laws, which Opinion of Counsel shall not be an expense of the Indenture Trustee or the Issuer and (ii) the Indenture Trustee shall require the transferee to execute an investment letter (in substantially the form attached hereto as Exhibit F) acceptable to and in form and substance reasonably satisfactory to the Issuer and the Indenture Trustee certifying to the Issuer and the Indenture Trustee the facts surrounding such transfer, which investment letter shall not be an expense of the Indenture Trustee or the Issuer.  The Holder of a Variable Funding Note desiring to effect such transfer shall, and does hereby agree to, indemnify the Indenture Trustee the Credit Enhancer and the Issuer against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.  Notwithstanding the foregoing, the restriction of transfer specified in this paragraph is not applicable to any Capped Funding Notes that have been registered under the Securities Act of 1933 pursuant to Section 2.5 of the Mortgage Loan Purchase Agreement.]

Subject to the foregoing, at the option of the Noteholders, Notes may be exchanged for other Notes of like tenor or, in each case in authorized initial Principal Balances evidencing the same aggregate Percentage Interests upon surrender of the Notes to be exchanged at the Corporate Trust Office of the Note Registrar.  [With respect to any surrender of Capped Funding Notes for exchange the new Notes delivered in exchange therefor will bear the designation “Capped” in addition to any other applicable designations.]  Whenever any Notes are so surrendered for exchange, the Indenture Trustee shall execute and the Note Registrar shall authenticate and deliver the Notes which the Noteholder making the exchange is entitled to receive.  Each Note presented or surrendered for registration of transfer or exchange shall (if so required by the Note Registrar) be duly endorsed by, or be accompanied by a written instrument of transfer in form reasonably satisfactory to the Note Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing.  Notes delivered upon any such transfer or exchange will evidence the same obligations, and will be entitled to the same rights and privileges, as the Notes surrendered.

No service charge shall be made for any registration of transfer or exchange of Notes, but the Note Registrar shall require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes.

All Notes surrendered for registration of transfer and exchange shall be cancelled by the Note Registrar and delivered to the Indenture Trustee for subsequent destruction without liability on the part of either.

The Issuer hereby appoints [___________________] as Certificate Registrar to keep at its Corporate Trust Office a Certificate Register pursuant to Section 3.09 of the Trust Agreement in which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall provide for the registration of Certificates Residual Ownership Interests and of transfers and exchanges thereof pursuant to Section 3.05 of the Trust Agreement.  [___________________] hereby accepts such appointment.

Section 4.03.

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, and provided that the requirements of Section 8-405 of the UCC are met, the Issuer shall execute, and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, instead of issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable 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 4.03, 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 4.03 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 4.03 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 4.04.

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 neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

Section 4.05.

Cancellation.  All Notes surrendered for payment, registration of transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee.  No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 4.05, except as expressly permitted by this Indenture.  All cancelled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Request that they be destroyed or returned to it; provided, that such Issuer Request is timely and the Notes have not been previously disposed of by the Indenture Trustee.

Section 4.06.

Book-Entry Notes.  The Term Notes, upon original issuance, will be issued in the form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository Trust Company, the initial Depository, by, or on behalf of, the Issuer.  Such Term Notes shall initially be registered on the Note Register in the name of Cede & Co., the nominee of the initial Depository, and no Beneficial Owner will receive a definitive Note representing such Beneficial Owner’s interest in such Note, except as provided in Section 4.08.  Unless and until definitive, fully registered Notes (the “Definitive Notes”) have been issued to Beneficial Owners pursuant to Section 4.08:

(i)

the provisions of this Section 4.06 shall be in full force and effect;

(ii)

the Note Registrar and the Indenture Trustee shall be entitled to deal with the Depository 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 Term Notes, and shall have no obligation to the Owners of Term Notes;

(iii)

to the extent that the provisions of this Section 4.06 conflict with any other provisions of this Indenture, the provisions of this Section 4.06 shall control;

(iv)

the rights of Beneficial Owners shall be exercised only through the Depository and shall be limited to those established by law and agreements between such Owners of Term Notes and the Depository and/or the Depository Participants pursuant to the Note Depository Agreement.  Unless and until Definitive Term Notes are issued pursuant to Section 4.08, the initial Depository will make book-entry transfers among the Depository Participants and receive and transmit payments of principal of and interest on the Notes to such Depository Participants; and

(v)

whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Term Notes evidencing a specified percentage of the Security Balances of the Term Notes, the Depository shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Beneficial Owners and/or Depository Participants owning or representing, respectively, such required percentage of the beneficial interest in the Term Notes and has delivered such instructions to the Indenture Trustee.

Section 4.07.

Notices to Depository.  Whenever a notice or other communication to the Term Note Holders is required under this Indenture, unless and until Definitive Term Notes shall have been issued to Beneficial Owners pursuant to Section 4.08, the Indenture Trustee shall give all such notices and communications specified herein to be given to Holders of the Term Notes to the Depository, and shall have no obligation to the Beneficial Owners.

Section 4.08.

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

Section 4.09.

Tax Treatment.  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.  The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of its Note (and each Beneficial 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 4.10.

Satisfaction and Discharge of Indenture.  This Indenture shall cease to be of further effect with respect to the Notes except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.10, 3.19, 3.21 and 3.22, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.07 and the obligations of the Indenture Trustee under Section 4.11) and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when

(A)

either

(1)

all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 4.03 and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided in Section 3.03) have been delivered to the Indenture Trustee for cancellation; or

(2)

all Notes not theretofore delivered to the Indenture Trustee for cancellation

a.

have become due and payable, or

b.

will become due and payable at the Final Scheduled Payment Date within one year,

and the Issuer, in the case of a.  or b.  above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes and Certificates then outstanding not theretofore delivered to the Indenture Trustee for cancellation when due on the Final Scheduled Payment Date;

(B)

the Issuer has paid or caused to be paid all other sums payable hereunder and under the Insurance Agreement by the Issuer; and

(C)

the Issuer has delivered to the Indenture Trustee and the Credit Enhancer an Officer’s Certificate, an Opinion of Counsel 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 11.01 and, subject to Section 11.01 each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with and, if the Opinion of Counsel relates to a deposit made in connection with Section 4.10(A)(2)b.  above, such opinion shall further be to the effect that such deposit will not have any material adverse tax consequences to the Issuer, any Noteholders or any Certificateholders.

Section 4.11.

Application of Trust Money.  All moneys deposited with the Indenture Trustee pursuant to Section 4.10 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 or Certificate Paying Agent, as the Indenture Trustee may determine, to the Holders of Securities, 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 required by law.

Section 4.12.

Subrogation and Cooperation.  (a) The Issuer and the Indenture Trustee acknowledge that (i) to the extent the Credit Enhancer makes payments under the Credit Enhancement Instrument on account of principal of or interest on the Notes or the Certificates, the Credit Enhancer will be fully subrogated to the rights of such Holders to receive such principal and interest from the Issuer, and (ii) the Credit Enhancer shall be paid such principal and interest but only from the sources and in the manner provided herein and in the Insurance Agreement for the payment of such principal and interest.

The Indenture Trustee shall cooperate in all respects with any reasonable request by the Credit Enhancer for action to preserve or enforce the Credit Enhancer’s rights or interest under this Indenture or the Insurance Agreement without limiting the rights of the Noteholders as otherwise set forth in the Indenture, including, without limitation, upon the occurrence and continuance of a default under the Insurance Agreement, a request to take any one or more of the following actions:

(i)

institute Proceedings for the collection of all amounts then payable on the Notes, or under this Indenture in respect to Notes and all amounts payable under the Insurance Agreement enforce any judgment obtained and collect from the Issuer moneys adjudged due;

(ii)

sell the Trust Estate or any portion thereof or rights or interest therein, at one or more public or private Sales called and conducted in any manner permitted by law;

(iii)

file or record all Assignments that have not previously been recorded;

(iv)

institute Proceedings from time to time for the complete or partial foreclosure of this Indenture; and

(v)

exercise any remedies of a secured party under the Uniform Commercial Code and take any other appropriate action to protect and enforce the rights and remedies of the Credit Enhancer hereunder.  

Section 4.13.

Repayment of Moneys Held by Paying Agent.  In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any Administrator other than the Indenture Trustee under the provisions of this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.05 and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.

ARTICLE V

REMEDIES

Section 5.01.

Events of Default.  “Event of Default,” wherever used herein, shall have the meaning provided in Appendix A; provided, however, that no Event of Default will occur under clause (i) or clause (ii) of the definition of “Event of Default” if the Issuer fails to make payments of principal of and interest on the Notes so long as the Credit Enhancer makes payments sufficient therefore under the Credit Enhancement Instrument.

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

Section 5.02.

Acceleration of Maturity; Rescission and Annulment.  If an Event of Default should occur and be continuing, then and in every such case the Indenture Trustee or the Holders of Notes representing not less than a majority of the Security Balances of all Notes may declare the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the unpaid principal amount of such Class of Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable.  Unless the prior written consent of the Credit Enhancer shall have been obtained by the Indenture Trustee, the Payment Date upon which such accelerated payment is due and payable shall not be a Payment Date under the Credit Enhancement Instrument and the Indenture Trustee shall not be authorized under Section 3.32 to make a draw therefor.

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 Holders of Notes representing a majority of the Security Balances of all Notes, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences if:

(i)

the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

(A)

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

(B)

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

(ii)

all Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in Section 5.12.  No such rescission shall affect any subsequent default or impair any right consequent thereto.

Section 5.03.

Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.  (a) The Issuer covenants that if (i) default is made in the payment of any interest on any Note when the same becomes due and payable, and such default continues for a period of five days, or (ii) default is made in the payment of the principal of or any installment of the principal of any Note when the same becomes due and payable, the Issuer will, upon demand of the Indenture Trustee, pay to it, for the benefit of the Holders of Notes and of the Credit Enhancer, the whole amount then due and payable on the Notes for principal and interest, with interest upon the overdue principal, 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 trustee of an express trust, subject to the provisions of Section 11.17 hereof may 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 the Notes and collect in the manner provided by law out of the property of the Issuer or other obligor the Notes, wherever situated, the moneys adjudged or decreed to be payable.

(c)

If an Event of Default occurs and is continuing, the Indenture Trustee subject to the provisions of Section 11.17 hereof may, as more particularly provided in Section 5.04, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders and the Credit Enhancer, 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 Trust Estate, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or otherwise:

(i)

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

(iv)

to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee or the Holders of Notes allowed in any judicial proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such Noteholders to make payments to the Indenture Trustee, and, in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of negligence or bad faith.

(e)

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

(f)

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 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 Term Notes or the Variable Funding Notes, as applicable.

(g)

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 Holders of the Notes, and it shall not be necessary to make any Noteholder a party to any such Proceedings.  

Section 5.04.

Remedies; Priorities.  (a) If an Event of Default shall have occurred and be continuing, the Indenture Trustee subject to the provisions of Section 11.17 hereof may do one or more of the following (subject to Section 5.05):

(i)

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

(ii)

institute Proceedings from time to time for the complete or partial foreclosure of this Indenture with respect to the Trust Estate;

(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, the Holders of the Notes and the Credit Enhancer; and

(iv)

sell the Trust Estate or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate following an Event of Default, other than a default in the payment of any principal or interest on the Notes for thirty (30) days or more, unless (A) the Holders of 100% of the Security Balances of the Securities and the Credit Enhancer, which consent will not be unreasonably withheld consent thereto, (B) the proceeds of such sale or liquidation distributable to Holders are sufficient to discharge in full all amounts then due and unpaid upon the Securities for principal and interest and to reimburse the Credit Enhancer for any amounts drawn under the Credit Enhancement Instrument and any other amounts due the Credit Enhancer under the Insurance Agreement or (C) the Indenture Trustee determines that the Mortgage Loans will not continue to provide sufficient funds for the payment of principal of and interest on either the Notes or the Certificates, as they would have become due if the Notes had not been declared due and payable, and the Indenture Trustee obtains the consent of the Credit Enhancer, which consent will not be unreasonably withheld, and of the Holders of not less than 66-2/3% of the Security Balances of the Securities.  In determining such sufficiency or insufficiency with respect to clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose.  Notwithstanding the foregoing, so long as an Event of Servicer Termination has not occurred, any Sale of the Trust Estate shall be made subject to the continued Servicing of the Mortgage Loans by the Master Servicer as provided in the Servicing Agreement.

(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 amounts due under Section 6.07;

SECOND:  to each Class of Noteholders for amounts due and unpaid on the related Class of Notes for interest and to each Noteholder of such Class in each case, ratably, without preference or priority of any kind, according to the amounts due and payable on such Class of Notes for interest from amounts available in the Trust Estate for such Noteholders;

THIRD:  to Holders of each Class of Notes for amounts due and unpaid on the related Class of Notes for principal, from amounts available in the Trust Estate for such Noteholders, and to each Noteholder of such Class in each case ratably, without preference or priority of any kind, according to the amounts due and payable on such Class of Notes for principal, until the Security Balances of each Class of Notes is reduced to zero;

FOURTH:  to the Issuer for amounts required to be distributed to the Certificateholders in respect of interest and principal pursuant to the Trust Agreement;

FIFTH:  [Reserved] [To the payment of all amounts due and owing to the Credit Enhancer under the Insurance Agreement];

SIXTH:  to the Issuer for amounts due under Article VIII of the Trust Agreement; and

SEVENTH:  to the payment of the remainder, if any to the Issuer or any other person legally entitled thereto.

The Indenture Trustee may fix a record date and payment date for any payment to Noteholders pursuant to this Section 5.04.  At least 15 days before such record date, the Issuer shall mail to each Noteholder and the Indenture Trustee a notice that states the record date, the payment date and the amount to be paid.

Section 5.05.

Optional Preservation of the Trust Estate.  If the Notes have been declared to be due and payable under Section 5.02 following an Event of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect to maintain possession of the Trust Estate.  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 Securities and other obligations of the Issuer including payment to the Credit Enhancer, and the Indenture Trustee shall take such desire into account when determining whether or not to maintain possession of the Trust Estate.  In determining whether to maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such purpose.

Section 5.06.

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 trustee, or for any other remedy hereunder, unless and subject to the provisions of Section 11.17 hereof:

(i)

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

(ii)

the Holders of not less than 25% of the Security Balances of the Notes have made written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder;

(iii)

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;

(iv)

the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute such Proceedings; and

(v)

no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders of a majority of the Security Balances of the Notes.

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, each representing less than a majority of the Security Balances of the Notes, the Indenture Trustee in its sole discretion may determine what action, if any, shall be taken, notwithstanding any other provisions of this Indenture.

Section 5.07.

Unconditional Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture 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 5.08.

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 5.09.

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 5.10.

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 Event of Default shall impair any such right or remedy or constitute a waiver of any such 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 5.11.

Control by Noteholders.  The Holders of a majority of the Security Balances of Notes shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

(i)

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

(ii)

subject to the express terms of Section 5.04, any direction to the Indenture Trustee to sell or liquidate the Trust Estate shall be by Holders of Notes representing not less than 100% of the Security Balances of Notes;

(iii)

if the conditions set forth in Section 5.05 have been satisfied and the Indenture Trustee elects to retain the Trust Estate pursuant to such Section, then any direction to the Indenture Trustee by Holders of Notes representing less than 100% of the Security Balances of Notes to sell or liquidate the Trust Estate shall be of no force and effect; and

(iv)

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

Notwithstanding the rights of Noteholders set forth in this Section, subject to Section 6.01, 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 5.12.

Waiver of Past Defaults.  Prior to the declaration of the acceleration of the maturity of the Notes as provided in Section 5.02, the Holders of Notes of not less than a majority of the Security Balances of the Notes may waive any past Event of Default and its consequences except an Event of Default (a) with respect to payment of principal of or interest on any of the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note or (c) the waiver of which would materially and adversely affect the interests of the Credit Enhancer or modify its obligation under the Credit Enhancement Instrument.  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 Event of Default or impair any right consequent thereto.

Upon any such waiver, 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 Event of Default or impair any right consequent thereto.

Section 5.13.

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 5.13 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 Security Balances 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 5.14.

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 5.15.

Sale of Trust Estate.  (a) The power to effect any sale or other disposition (a “Sale”) of any portion of the Trust Estate pursuant to Section 5.04 is expressly subject to the provisions of Section 5.05 and this Section 5.15.  The power to effect any such Sale shall not be exhausted by any one or more Sales as to any portion of the Trust Estate remaining unsold, but shall continue unimpaired until the entire Trust Estate shall have been sold or all amounts payable on the Notes and under this Indenture and under the Insurance Agreement shall have been paid.  The Indenture Trustee may from time to time postpone any public Sale by public announcement made at the time and place of such Sale.  The Indenture Trustee hereby expressly waives its right to any amount fixed by law as compensation for any Sale.

(b)

The Indenture Trustee shall not in any private Sale sell the Trust Estate, or any portion thereof, unless

(i)

the Holders of all Securities and the Credit Enhancer consent to or direct the Indenture Trustee to make, such Sale, or

(ii)

the proceeds of such Sale would be not less than the entire amount which would be payable to the Noteholders under the Notes, Certificateholders under the Certificates and the Credit Enhancer in respect of amounts drawn under the Credit Enhancement Instrument and any other amounts due the Credit Enhancer under the Insurance Agreement, in full payment thereof in accordance with Section 5.02, on the Payment Date next succeeding the date of such Sale, or

(iii)

The Indenture Trustee determines, in its sole discretion, that the conditions for retention of the Trust Estate set forth in Section 5.05 cannot be satisfied (in making any such determination, the Indenture Trustee may rely upon an opinion of an Independent investment banking firm obtained and delivered as provided in Section 5.05, and the Credit Enhancer consents to such Sale, which consent will not be unreasonably withheld and the Holders representing at least 66-2/3% of the Security Balances of the Securities consent to such Sale.

The purchase by the Indenture Trustee of all or any portion of the Trust Estate at a private Sale shall not be deemed a Sale or other disposition thereof for purposes of this Section 5.15(b).

(c)

Unless the Holders and the Credit Enhancer have otherwise consented or directed the Indenture Trustee, at any public Sale of all or any portion of the Trust Estate at which a minimum bid equal to or greater than the amount described in paragraph (2) of subsection (b) of this Section 5.15 has not been established by the Indenture Trustee and no Person bids an amount equal to or greater than such amount, the Indenture Trustee shall bid an amount at least $1.00 more than the highest other bid.

(d)

In connection with a Sale of all or any portion of the Trust Estate

(i)

any Holder or Holders of Notes may bid for and with the consent of the Credit Enhancer purchase the property offered for sale, and upon compliance with the terms of sale may hold, retain and possess and dispose of such property, without further accountability, and may, in paying the purchase money therefor, deliver any Notes or claims for interest thereon in lieu of cash up to the amount which shall, upon distribution of the net proceeds of such sale, be payable thereon, and such Notes, in case the amounts so payable thereon shall be less than the amount due thereon, shall be returned to the Holders thereof after being appropriately stamped to show such partial payment;

(ii)

the Indenture Trustee may bid for and acquire the property offered for Sale in connection with any Sale thereof, and, subject to any requirements of, and to the extent permitted by, applicable law in connection therewith, may purchase all or any portion of the Trust Estate in a private sale, and, in lieu of paying cash therefor, may make settlement for the purchase price by crediting the gross Sale price against the sum of (A) the amount which would be distributable to the Holders of the Notes and Holders of Certificates and amounts owing to the Credit Enhancer as a result of such Sale in accordance with Section 5.04(b) on the Payment Date next succeeding the date of such Sale and (B) the expenses of the Sale and of any Proceedings in connection therewith which are reimbursable to it, without being required to produce the Notes in order to complete any such Sale or in order for the net Sale price to be credited against such Notes, and any property so acquired by the Indenture Trustee shall be held and dealt with by it in accordance with the provisions of this Indenture;

(iii)

the Indenture Trustee shall execute and deliver an appropriate instrument of conveyance transferring its interest in any portion of the Trust Estate in connection with a Sale thereof;

(iv)

the Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the Issuer to transfer and convey its interest in any portion of the Trust Estate in connection with a Sale thereof, and to take all action necessary to effect such Sale; and

(v)

no purchaser or transferee at such a Sale shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any moneys.

Section 5.16.

Action on Notes.  The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture.  Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Trust Estate 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 5.04(b).

Section 5.17.

Performance and Enforcement of Certain Obligations.  (a) Promptly following a request from the Indenture Trustee to do so and at the Administrator’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 Purchase 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 Mortgage Loan Purchase Agreement and 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 Mortgage Loan Purchase Agreement and the Servicing Agreement.

(b)

If an Event of Default has occurred and is continuing, the Indenture Trustee subject to the rights of the Credit Enhancer under the Servicing Agreement may, and at the direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the Holders of 66-2/3% of the Security Balances of the Notes shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Seller or the Master Servicer under or in connection with the Mortgage Loan Purchase Agreement and the Servicing Agreement, including the right or power to take any action to compel or secure performance or observance by the Seller or the Master Servicer, as the case may be, of each of their obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the Mortgage Loan Purchase Agreement and the Servicing Agreement, as the case may be, and any right of the Issuer to take such action shall not be suspended.

ARTICLE VI

THE INDENTURE TRUSTEE

Section 6.01.

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 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:

(d)

(i)

this paragraph does not limit the effect of paragraph of this Section 6.01;

(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; and

(iii)

the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it (A) pursuant to Section 5.11 or (B) from the Credit Enhancer, which it is entitled to give under any of the Basic Documents.

(e)

Every provision of this Indenture that in any way relates to the Indenture Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section 6.01.

(f)

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.

(g)

Money held in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or the terms of this Indenture.

(h)

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.

(i)

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.

Section 6.02.

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

(b)

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

(c)

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

(d)

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

(e)

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

Section 6.03.

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

Section 6.04.

Indenture Trustee’s Disclaimer.  The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be 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.

Section 6.05.

Notice of Event of Default.  If an Event of Default occurs and is continuing and if it is known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall give notice thereof to the Credit Enhancer.  The Trustee shall mail to each Noteholder notice of the Event of Default within 90 days after it occurs.  Except in the case of an Event of Default in payment of principal of or interest on any Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders.

Section 6.06.

Reports by Indenture Trustee to Holders.  The Indenture Trustee shall deliver to each Noteholder such information as may be required to enable such holder to prepare its federal and state income tax returns.  In addition, upon the Issuer’s written request, the Indenture Trustee shall promptly furnish information reasonably requested by the Issuer that is reasonably available to the Indenture Trustee to enable the Issuer to perform its federal and state income tax reporting obligations.

Section 6.07.

Compensation and Indemnity.  The Issuer shall or shall cause the Administrator to pay to the Indenture Trustee on each Payment Date reasonable compensation for its services.  The Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Issuer shall or shall cause the Administrator to reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services.  Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and experts.  The Issuer shall or shall cause the Administrator to indemnify the Indenture Trustee against any and all loss, liability or expense (including attorneys’ fees) incurred by it in connection with the administration of this trust and the performance of its duties hereunder.  The Indenture Trustee shall notify the Issuer and the Administrator promptly of any claim for which it may seek indemnity.  Failure by the Indenture Trustee to so notify the Issuer and the Administrator shall not relieve the Issuer or the Administrator of its obligations hereunder.  The Issuer shall or shall cause the Administrator to defend any such claim, and the Indenture Trustee may have separate counsel and the Issuer shall or shall cause the Administrator to pay the fees and expenses of such counsel.  Neither the Issuer nor the Administrator need reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad faith.

The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section 6.07 shall survive the discharge of this Indenture.  When the Indenture Trustee incurs expenses after the occurrence of an Event of Default specified in Section 5.01(iv) or (v) 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 6.08.

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 6.08.  The Indenture Trustee may resign at any time by so notifying the Issuer and the Credit Enhancer.  The Holders of a majority of Security Balances of the Notes may remove the Indenture Trustee by so notifying the Indenture Trustee and the Credit Enhancer and may appoint a successor Indenture Trustee.  The Issuer shall remove the Indenture Trustee if:

(i)

the Indenture Trustee fails to comply with Section 6.11;

(ii)

the Indenture Trustee is adjudged a bankrupt or insolvent;

(iii)

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

(iv)

the Indenture Trustee otherwise becomes incapable of acting.

If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee and to the Issuer.  Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture.  The successor Indenture Trustee shall mail a notice of its succession to Noteholders.  The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

If a successor Indenture Trustee does not take office within 60 days after the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Holders of a majority of Security Balances 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 and the Administrator’s obligations under Section 6.07 shall continue for the benefit of the retiring Indenture Trustee.

Section 6.09.

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.  The Indenture Trustee shall provide the Rating Agencies prior written notice of any such transaction.

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

Section 6.10.

Appointment of Co-Indenture Trustee or Separate Indenture Trustee.  (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Estate 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-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under Section 6.08 hereof.

(b)

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

(i)

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

(ii)

no trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; and

(iii)

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

(c)

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

(d)

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

Section 6.11.

Eligibility; Disqualification.  The Indenture Trustee shall at all times satisfy the requirements of TIA ss.  310(a).  The Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition and it or its parent shall have a long-term debt rating of [____] or better by [______].  The Indenture Trustee shall comply with TIA ss.  310(b), including the optional provision permitted by the second sentence of TIA ss.  310(b)(9); provided, however, that there shall be excluded from the operation of TIA ss.  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 ss.  310(b)(1) are met.

Section 6.12.

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

Section 6.13.

Representation and Warranty.  The Indenture Trustee represents and warrants to the Issuer, for the benefit of the Noteholders, that this Indenture has been executed and delivered by one of its Responsible Officers who is duly authorized to execute and deliver such document in such capacity on its behalf.

Section 6.14.

Directions to Indenture Trustee.  The Indenture Trustee is hereby directed:

(a)

to accept assignment of the Mortgage Loans and hold the assets of the Trust in trust for the Noteholders;

(b)

to issue, execute and deliver the Notes substantially in the form prescribed by Exhibit A in accordance with the terms of this Indenture; and

(c)

to take all other actions as shall be required to be taken by the terms of this Indenture.

Section 6.15.

No Consent to Certain Acts of Depositor.  The Indenture Trustee shall not consent to any action proposed to be taken by the Depositor pursuant to Article [_______________] of the Depositor’s Certificate of Incorporation.

ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS

Section 7.01.

Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five 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, (b) at such other times as the Indenture Trustee and the Credit Enhancer may request in writing, within 30 days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished.

Section 7.02.

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 ss. 312(b) with other Noteholders with respect to their rights under this Indenture or under the Notes.

(c)

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

Section 7.03.

Reports by Issuer.  (a) The Issuer shall:

(i)

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

(ii)

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

(iii)

supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA ss.  313(c)) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.03(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 7.04.

Reports by Indenture Trustee.  If required by TIA ss.  313(a), within 60 days after each [__] 1 beginning with ___________, 20__, the Indenture Trustee shall mail to each Noteholder as required by TIA ss.  313(c) and to the Credit Enhancer a brief report dated as of such date that complies with TIA ss.  313(a).  The Indenture Trustee also shall comply with TIA ss.  313(b).

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

ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES

Section 8.01.

Collection of Money.  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 Trust Estate, 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 8.02.

Trust Accounts.  (a) On or prior to the Closing Date, the Issuer shall cause the Indenture Trustee to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Noteholders and the Certificateholders and the Credit Enhancer, the Payment Account as provided in Section 3.01 of this Indenture.

(b)

All moneys deposited from time to time in the Payment Account pursuant to the Servicing Agreement and all deposits therein pursuant to this Indenture are for the benefit of the Noteholders, the Certificateholders and the holders of the Residual Ownership Interest and all investments made with such moneys including all income or other gain from such investments are for the benefit of the Master Servicer as provided by the Servicing Agreement.

On each Payment Date during the Funding Period the Indenture Trustee shall withdraw Net Principal Collections from the Payment Account and deposit Net Principal Collections to the Funding Account.

On each Payment Date, the Indenture Trustee shall distribute all amounts on deposit in the Payment Account (after giving effect to the withdrawal referred to in the preceding paragraph) to Noteholders in respect of the Notes and in its capacity as Certificate Paying Agent to Certificateholders in the order of priority set forth in Section 3.05 (except as otherwise provided in Section 5.04(b)).

The Master Servicer may direct the Indenture Trustee to invest any funds in the Payment Account in Eligible Investments maturing no later than the Business Day preceding each Payment Date and shall not be sold or disposed of prior to the maturity.  Unless otherwise instructed by the Master Servicer, the Indenture Trustee shall invest all funds in the Payment Account in its [__________] Short Term Investment Fund so long as it is an Eligible Investment.

[(c)

On or before the Closing Date the Issuer shall open, at the Corporate Trust Office, an account which shall be the “Funding Account”.  The Master Servicer may direct the Indenture Trustee to invest any funds in the Funding Account in Eligible Investments maturing no later than the Business Day preceding each Payment Date and shall not be sold or disposed of prior to the maturity.  Unless otherwise instructed by the Master Servicer, the Indenture Trustee shall invest all funds in the Payment Account in its Corporate Trust Short Term Investment Fund so long as it is an Eligible Investment.  During the Funding Period, any amounts received by the Indenture Trustee in respect of Net Principal Collections for deposit in the Funding Account, together with any Eligible Investments in which such moneys are or will be invested or reinvested during the term of the Notes, shall be held by the Indenture Trustee in the Funding Account as part of the Trust Estate, subject to disbursement and withdrawal as herein provided.

(i)

Amounts on deposit in the Funding Account in respect of Net Principal Collections may be withdrawn on each Deposit Date and (1) paid to the Issuer in payment for Additional Loans by the deposit of such amount to the Collection Account and (2) at the end of the Funding Period any amounts remaining in the Funding Account after the withdrawal called for by clause (1) shall be deposited in the Payment Account to be included in the payment of principal on the Payment Date that is the last day of the Funding Period.

(ii)

Amounts on deposit in the Funding Account in respect of investment earnings shall be withdrawn on each Payment Date and deposited in the Payment Account and included in the amounts paid to Noteholders and Certificateholders.

(c)

(i) Any investment in the institution with which the Funding Account is maintained may mature on such Payment Date and (ii) any other investment may mature on such Payment Date if the Indenture Trustee shall advance funds on such Payment Date to the Funding Account in the amount payable on such investment on such Payment Date, pending receipt thereof to the extent necessary to make distributions on the Notes and the Certificates) and shall not be sold or disposed of prior to maturity.]

Section 8.03.

Opinion of Counsel.  The Indenture Trustee shall receive at least seven days notice when requested by the Issuer to take any action pursuant to Section 8.05(a), accompanied by copies of any instruments to be executed, and the Indenture Trustee shall also require, as a condition to such action, an Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such action have been complied with and such action will not materially and adversely impair the security for the Notes or the rights of the Noteholders in contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust Estate.  Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action.

Section 8.04.

Termination Upon Distribution to Noteholders.  This Indenture and the respective obligations and responsibilities of the Issuer and the Indenture Trustee created hereby shall terminate upon the distribution to Noteholders, Certificateholders, holders of the Residual Ownership Interest and the Indenture Trustee of all amounts required to be distributed pursuant to Article III; provided, however, that in no event shall the trust created hereby continue beyond the expiration of 21 years from the death of the survivor of the descendants of Joseph P.  Kennedy, the late ambassador of the United States to the Court of St. James, living on the date hereof.

Section 8.05.

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

(b)

The Indenture Trustee shall, at such time as (i) there are no Notes Outstanding, (ii) all sums due the Indenture Trustee pursuant to this Indenture have been paid, and (iii) all sums due the Credit Enhancer have been paid, release any remaining portion of the Trust Estate that secured the Notes from the lien of this Indenture.  The Indenture Trustee shall release property from the lien of this Indenture pursuant to this Section 8.05 only upon receipt of an request from the Issuer accompanied by an Officers’ Certificate, an Opinion of Counsel, and (if required by the TIA) Independent Certificates in accordance with TIA ss.  314(c) and 314(d)(1) meeting the applicable requirements as described herein, and a letter from the President or any Vice President or any Secretary of the Credit Enhancer, if any, stating that the Credit Enhancer has no objection to such request from the Issuer.

Section 8.06.

Surrender of Notes Upon Final Payment.  By acceptance of any Note, the Holder thereof agrees to surrender such Note to the Indenture Trustee promptly, prior to such Noteholder’s receipt of the final payment thereon.

ARTICLE IX

SUPPLEMENTAL INDENTURES

Section 9.01.

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

(i)

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

(ii)

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

(iii)

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

(iv)

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

(v)

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

(vi)

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

(vii)

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

provided, however, that no such indenture supplements shall be entered into unless the Indenture Trustee shall have received an Opinion of Counsel that entering into such indenture supplement will not have any material adverse tax consequences to the Noteholders.

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 Request, may, also without the consent of any of the Holders of the Notes but with the consent of the Credit Enhancer and prior notice to the Rating Agencies and the Credit Enhancer, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, (i) adversely affect in any material respect the interests of any Noteholder or (ii) cause the Issuer to be subject to an entity level tax or be classified as a taxable mortgage pool within the meaning of Section 7701(i) of the Code.

Section 9.02.

Supplemental Indentures With Consent of Noteholders.  The Issuer and the Indenture Trustee, when authorized by an Issuer Request, also may, with prior notice to the Rating Agencies and, with the written consent of the Credit Enhancer and with the consent of the Holders of not less than a majority of the Security Balances of each Class of Notes, by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Note affected thereby:

(i)

change the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof or 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 Trust Estate 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;

(ii)

reduce the percentage of the Security Balances 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;

(iii)

modify or alter the provisions of the proviso to the definition of the term “Outstanding” or modify or alter the exception in the definition of the term “Holder”;

(iv)

reduce the percentage of the Security Balances of the Notes required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section 5.04;

(v)

modify any provision of this Section 9.02 except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture or the Basic Documents cannot be modified or waived without the consent of the Holder of each Note affected thereby;

(vi)

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

(vii)

permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Trust Estate 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; and provided, further, that such action shall not, as evidenced by an Opinion of Counsel, cause the Issuer to be subject to an entity level tax or be classified as a taxable mortgage pool within the meaning of Section 7701(i) of the Code.

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

It shall not be necessary for any Act of Noteholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or supplemental indenture relates a notice setting forth in general terms the substance of such supplemental indenture.  Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.  

Section 9.03.

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 9.04.

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

Section 9.05.

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

Section 9.06.

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

ARTICLE X

[RESERVED]

ARTICLE XI

MISCELLANEOUS

Section 11.01.

Compliance Certificates and Opinions, etc.  (a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee and to the Credit Enhancer (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section 11.01, 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:

(1)

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

(2)

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;

(3)

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

(4)

a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with; and

(5)

if the Signer of such Certificate or Opinion is required to be Independent, the Statement required by the definition of the term “Independent”.

(b)

(i)

Prior to the deposit of any Collateral or other property or securities with the Indenture Trustee that is to be made the basis for the release of any property or securities subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in Section 11.01(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each person signing such certificate as to the fair value (within 90 days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited.

(ii)

Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described in clause (i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the Issuer of the securities to be so deposited and of all other such securities made the basis of any such withdrawal or release since the commencement of the then-current fiscal year of the Issuer, as set forth in the certificates delivered pursuant to clause (i) above and this clause (ii), is 10% or more of the Security Balances of the Notes, but such a certificate need not be furnished with respect to any securities so deposited, if the fair value thereof to the Issuer as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the Security Balances of the Notes.

(iii)

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

(iv)

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

(v)

Notwithstanding any provision of this Indenture, the Issuer may, without compliance with the requirements of the other provisions of this Section 11.01, (A) collect, sell or otherwise dispose of Mortgage Loans and Mortgaged Properties as and to the extent permitted or required by the Basic Documents or (B) make cash payments out of the Payment Account as and to the extent permitted or required by the Basic Documents, so long as the Issuer shall deliver to the Indenture Trustee every six months, commencing __________, 20__, an Officer’s Certificate of the Issuer stating that all the dispositions of Collateral described in clauses (A) or (B) above that occurred during the preceding six calendar months were in the ordinary course of the Issuer’s business and that the proceeds thereof were applied in accordance with the Basic Documents.  

Section 11.02.

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

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

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

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

Section 11.03.

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 11.03.  

(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 11.04.

Notices, etc., to Indenture Trustee, Issuer, Credit Enhancer 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:

(i)

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 the Corporate Trust Office, or

(ii)

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:  Home Equity Loan Trust ____-__ in care of [_____________], [______________] Attention of [_________] with a copy to the Administrator at [______________], Attention:  [_____________], or at any other address previously furnished in writing to the Indenture Trustee by the Issuer or the Administrator.  The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee, or

(iii)

the Credit Enhancer by the Issuer, the Indenture Trustee or by any Noteholders shall be sufficient for every purpose hereunder to in writing and mailed, first-class postage pre-paid, or personally delivered or telecopied to:  [_______________], Attention:  [______________], Telephone:  [_____________], Telecopier:  [___________].

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, to [(i) in the case of Duff & Phelps, at the following address:  [________________];] [and] [(ii) in the case of Fitch Investors Service, L.P., at the following address:  [______________];] [and] [(iii) in the case of Moody’s, at the following address:  Moody’s Investors Service, ABS Monitoring Department, 99 Church Street, New York, New York 10007]; [and] [(iv) in the case of Standard & Poor’s, at the following address:  Standard & Poor’s Corporation, 26 Broadway (15th Floor), New York, New York 10004, Attention of Asset Backed Surveillance Department;] or as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

Section 11.05.

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

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

Section 11.06.

Alternate Payment and Notice Provisions.  Notwithstanding any provision of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Administrator to such Holder, that is different from the methods provided for in this Indenture for such payments or notices.  The Issuer will furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee will cause payments to be made and notices to be given in accordance with such agreements.  

Section 11.07.

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 ss.ss. 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 11.08.

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

Section 11.09.

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

Section 11.10.

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

Section 11.11.

Benefits of Indenture.  The Credit Enhancer and its successors and assigns shall be a third-party beneficiary to the provisions of this Indenture.  Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, and the Noteholders, and any other party secured hereunder, and any other Person with an ownership interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 11.12.

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

Section 11.13.

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

Section 11.14.

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

Section 11.15.

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

Section 11.16.

Issuer Obligation.  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 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 11.17.

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

Section 11.18.

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 11.19.

Authority of the Administrator.  Each of the parties to this Indenture acknowledges that the Issuer and the Owner Trustee have each appointed the Administrator to act as its agent to perform the duties and obligations of the Issuer hereunder.  Unless otherwise instructed by the Issuer or the Owner Trustee, copies of all notices, requests, demands and other documents to be delivered to the Issuer or the Owner Trustee pursuant to the terms hereof shall be delivered to the Administrator.  Unless otherwise instructed by the Issuer or the Owner Trustee, all notices, requests, demands and other documents to be executed or delivered, and any action to be taken, by the Issuer or the Owner Trustee pursuant to the terms hereof may be executed, delivered and/or taken by the Administrator pursuant to the Administration Agreement.

Section 11.20.

Intent of the Parties; Reasonableness.  The Indenture Trustee and Issuer acknowledge and agree that the purpose of Section 3.11 of this Agreement is to facilitate compliance by the Issuer and the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.

Neither the Issuer nor the Administrator (acting on behalf of the Issuer) shall exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder. Each of the parties hereto agrees that (a) the obligations of the parties hereunder shall be interpreted in such a manner as to accomplish compliance with Regulation AB, (b) the parties’ obligations hereunder will be supplemented and modified as necessary to be consistent with any such amendments, interpretive advice or guidance from the Securities and Exchange Commission, convention or consensus among active participants in the asset-backed securities markets, or otherwise in respect of the requirements of Regulation AB as they may be applied by the Securities and Exchange Commission to the Issuer in connection with the Notes and (c) the parties shall comply with reasonable requests made by or on behalf of the Issuer or the Indenture Trustee for delivery of additional or different information, to the extent such information is available, as the person requesting such information may determine in good faith is necessary for it to comply with the provisions of Regulation AB.  Any and all expenses incurred by the Indenture Trustee in compliance with this Section shall be considered indemnities payable in accordance with Section 6.07 hereof.

The Issuer (or the Administrator, acting on behalf of the Issuer) shall cooperate with the Indenture Trustee by providing timely notice of requests for information under these provisions and by reasonably limiting such requests to information required, in the reasonable judgment of the Issuer to comply with Regulation AB.

Section 11.21.

[U.S.A. Patriot Act.  The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Indenture Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Indenture Trustee.  The parties to this Indenture agree that they will provide the Indenture Trustee with such information about the Owner Trustee as it may request in order for the Indenture Trustee to satisfy the requirements of the U.S.A. Patriot Act.]

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

HOME EQUITY LOAN TRUST ____-__

as Issuer

By:

[______________________],

not in its individual capacity

but solely as Owner Trustee

By:________________________________ 

Name:

Title:

[__________________________________],

as Indenture Trustee, as Certificate Paying 

Agent and as Certificate Registrar

By:________________________________ 

Name:

Title:

[_______________]

hereby accepts the appointment

as Certificate Paying Agent

pursuant to Section 3.03

hereof and as Certificate

Registrar pursuant to Section

4.02 hereof.

________________________________

By:

Title:

				
	State of 

	 
	 
	 

	 
	ss.:

	 

	County of 

	 
	 

On this ____ day of __________, before me personally appeared ______________, to me known, who being by me duly sworn, did depose and say, that he resides at _________________, __________________ _____, that he is the of the Owner Trustee, one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order.

_____________________________

Notary Public

[NOTARIAL SEAL]

				
	State of 

	 
	 
	 

	 
	ss.:

	 

	County of 

	 
	 

On this ____ day of __________, before me personally appeared ___________________, to me known, who being by me duly sworn, did depose and say, that he resides at __________________________________________________ , that he is the ______________ of ________________, as Indenture Trustee, one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order.

_____________________________

Notary Public

[NOTARIAL SEAL]

				
	State of 

	 
	 
	 

	 
	ss.:

	 

	County of 

	 
	 

On this ____ day of __________, before me personally appeared ______________________ , to me known, who being by me duly sworn, did depose and say, that he resides at __________________________________________________ , that he is an ________________ of _______________, as Indenture Trustee, one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he signed his name thereto by like order.

_____________________________

Notary Public

[NOTARIAL SEAL]

EXHIBIT A-1

Form of Term Notes

EXHIBIT A-2

Form of Variable Funding Notes

EXHIBIT B

Mortgage Loan Schedule

EXHIBIT C

Form of Opinion to be delivered pursuant to Section 4.01(b)(ii)

EXHIBIT D

Form of Opinion to be delivered pursuant to Section 4.01(b)(iii)

EXHIBIT E

Loan Agreement

EXHIBIT F

Investment Letter

EXHIBIT G

Servicing Criteria To Be Addressed In Assessment Of Compliance

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

			
	Reference

	Criteria

	 

	 
	

Cash Collection and Administration

	 

	1122(d)(2)(ii)

	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

	 

	 
	

Investor Remittances and Reporting

	 

	1122(d)(3)(ii)

	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.*

	 

	1122(d)(3)(iii)

	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements. 

	 

	1122(d)(3)(iv)

	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

	 

*  With respect to remittances.

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