Document:

EXHIBIT 4.5.2

                      Terms and conditions of the notes

     The following are the Terms and Conditions (the "Conditions", and any
reference to a "Condition" shall be construed accordingly) of the Notes in the
form (subject to amendment) in which they will be set out in the Current
Issuer Trust Deed. Investors should note that the issuer is referred to in the
Conditions as the "Current Issuer" and references to those documents to which
the issuer is a party are generally preceded with the words "Current Issuer".
A glossary of definitions appears in Condition 17 of these Conditions.

     The Notes of the Current Issuer are constituted by the Current Issuer
Trust Deed. The security for the Notes is created pursuant to, and on the
terms set out in, the Current Issuer Deed of Charge. By the Current Issuer
Paying Agent and Agent Bank Agreement, provision is made for, inter alia, the
payment of principal and interest in respect of the Notes.

     The statements in these Conditions include summaries of, and are subject
to, the detailed provisions of the Current Issuer Trust Deed, the Current
Issuer Deed of Charge and the Current Issuer Paying Agent and Agent Bank
Agreement. The Notes are also the subject of the Current Issuer Dollar
Currency Swap Agreements, the Current Issuer Euro Currency Swap Agreements and
the Current Issuer Basis Rate Swap Agreement.

     Copies of the Current Issuer Trust Deed, the Current Issuer Deed of
Charge, the Current Issuer Master Definitions Schedule dated on or about the
Closing Date, the Current Issuer Paying Agent and Agent Bank Agreement and
each of the other Transaction Documents are available for inspection at the
head office for the time being of (i) the Principal Paying Agent, being at the
date hereof 5 Carmelite Street, London EC4Y 0PA and (ii) the US Paying Agent,
being at the date hereof 14th Floor Zone 3, 111 Wall Street, New York, New
York 10043. The Noteholders are entitled to the benefit of, are bound by, and
are deemed to have notice of, all the provisions of, and definitions contained
or incorporated in, the Current Issuer Trust Deed, the Current Issuer Deed of
Charge, the Current Issuer Intercompany Loan Agreement, the Funding Deed of
Charge, the Second Priority Funding Deed of Charge, the Current Issuer Cash
Management Agreement, the Current Issuer Paying Agent and Agent Bank
Agreement, the Current Issuer Basis Rate Swap Agreement, the Current Issuer
Dollar Currency Swap Agreements and the Current Issuer Euro Currency Swap
Agreements.

     The issue of the Notes will be authorised by a resolution of the Board of
Directors of the Current Issuer passed on or about 19 May 2004.

1.   Form, Denomination, Register, Title and Transfers

(A)  Form and Denomination

     The Dollar Notes will initially be offered and sold pursuant to a
registration statement filed with the United States Securities and Exchange
Commission. The Series 2 Notes and the Series 3 Notes will initially be
offered and sold outside the United States to non- US persons pursuant to Reg
S.

     The Dollar Notes will be issued in minimum denominations of $10,000 and
integral multiples of $1,000 in excess thereof. Each class of Dollar Notes
will be initially represented by a US Global Note Certificate, which, in the
aggregate, will represent the Principal Amount Outstanding from time to time
of such class of Dollar Notes. The Euro Notes will be issued in minimum
denominations of A500,000 and integral multiples of A1,000 in excess thereof.
Each class of Euro Notes will be initially represented by a Reg S Global Note
Certificate which, in the aggregate, will represent the Principal Amount
Outstanding from time to time of such class of Euro Notes. The Sterling Notes
will be issued in minimum denominations of (GBP)10,000 and integral multiples
of (GBP)1,000 in excess thereof. Each class of Sterling Notes will be
initially represented by a Reg S Global Note Certificate, which, in the
aggregate, will represent the Principal Amount Outstanding from time to time
of such class of Sterling Notes.

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     Global Note Certificates will be exchanged for Individual Note
Certificates in definitive registered form only under certain limited
circumstances (as described in the relevant Global Note Certificate). If
Individual Note Certificates are issued, they will be serially numbered and
issued in an aggregate principal amount equal to the Principal Amount
Outstanding of the relevant Global Note Certificates and in registered form
only.

(B)  Register

     The Registrar will maintain the Register in respect of the Notes in
accordance with the provisions of the Current Issuer Paying Agent and Agent
Bank Agreement. In these Conditions, the "Holder" of a Note means the person
in whose name such Note is for the time being registered in the Register (or,
in the case of a joint holding, the first named thereof). A Note Certificate
will be issued to each Noteholder in respect of its registered holding. Each
Note Certificate will be numbered serially with an identifying number which
will be recorded in the Register.

(C)  Title

     The Holder of each Note shall (except as otherwise required by law) be
treated by the Current Issuer, the Note Trustee, the Agent Bank and any Agent
as the absolute owner of such Note for all purposes (whether or not it is
overdue and regardless of any notice of ownership, trust or any other interest
therein, any writing on the Note Certificate relating thereto (other than the
endorsed form of transfer) or any notice of any previous loss or theft of such
Note Certificate) and no person shall be liable for so treating such Holder.

(D)  Transfers

     Subject as provided otherwise in this Condition 1(D), a Note may be
transferred upon surrender of the relevant Note Certificate, with the endorsed
form of transfer duly completed, at the Specified Office of the Registrar or
the Transfer Agent, together with such evidence as the Registrar or (as the
case may be) such Transfer Agent may reasonably require to prove the title of
the transferor and the authority of the individuals who have executed the form
of transfer; provided, however, that a Note may not be transferred unless the
principal amount of Notes transferred and (where not all of the Notes held by
a Holder are being transferred) the principal amount of the balance of Notes
not transferred are Authorised Holdings. Where not all the Notes represented
by the surrendered Note Certificate are the subject of the transfer, a new
Note Certificate in respect of the balance of the Notes will be issued to the
transferor.

     Within five Commercial Business Days of such surrender of a Note
Certificate, the Registrar will register the transfer in question and deliver
a new Note Certificate of a like principal amount to the Notes transferred to
each relevant Holder at its Specified Office or (as the case may be) the
Specified Office of the Transfer Agent or (at the request and risk of any such
relevant Holder) by uninsured first class mail (and by airmail if the Holder
is overseas) to the address specified for such purpose by such relevant
Holder. In this paragraph, "Commercial Business Day" means a day on which
commercial banks are open for business in the city where the Registrar or (as
the case may be) Transfer Agent has its Specified Office.

     The transfer of a Note will be effected without charge by or on behalf of
the Current Issuer, the Registrar or the Transfer Agent but against such
indemnity as the Registrar or (as the case may be) such Transfer Agent may
require in respect of any tax or other duty of whatsoever nature which may be
levied or imposed in connection with such transfer.

     Noteholders may not require transfers of Notes to be registered during
the period of 15 days ending on the due date for any payment of principal or
interest in respect of the Notes.

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     All transfers of Notes and entries on the Register are subject to the
detailed regulations concerning the transfer of Notes scheduled to the Current
Issuer Paying Agent and Agent Bank Agreement. The regulations may be changed
by the Current Issuer with the prior written approval of the Note Trustee and
the Registrar. A copy of the current regulations will be mailed (free of
charge) by the Registrar to any Noteholder who requests in writing a copy of
such regulations.

2.   Status, Priority and Security

(A)  Status

     The Class A Notes, the Class B Notes, the Class M Notes and the Class C
Notes are direct, secured and unconditional obligations of the Current Issuer
and are all secured by the same security. Payments on each class of Notes will
be made equally amongst all Notes of that class.

(B)  Priority

(i)  Interest

     Among the Series 1 Notes, payments of interest on the Series 1 Class A
Notes will be made ahead of payments of interest on the Series 1 Class B
Notes, the Series 1 Class M Notes and the Series 1 Class C Notes, payments of
interest on the Series 1 Class B Notes will be made ahead of payments of
interest on the Series 1 Class M Notes and the Series 1 Class C Notes and
payments of interest on the Series 1 Class M Notes will be made ahead of
payments of interest on the Series 1 Class C Notes.

     Among the Series 2 Notes, payments of interest on the Series 2 Class A
Notes will be made ahead of payments of interest on the Series 2 Class B
Notes, the Series 2 Class M Notes and the Series 2 Class C Notes, payments of
interest on the Series 2 Class B Notes will be made ahead of payments of
interest on the Series 2 Class M Notes and the Series 2 Class C Notes and
payments of interest on the Series 2 Class M Notes will be made ahead of
payments of interest on the Series 2 Class C Notes.

     Among the Series 3 Notes, payments of interest on the Series 3 Class A
Notes will be made ahead of payments of interest on the Series 3 Class B
Notes, the Series 3 Class M Notes and the Series 3 Class C Notes, payments of
interest on the Series 3 Class B Notes will be made ahead of payments of
interest on the Series 3 Class M Notes and the Series 3 Class C Notes and
payments of interest on the Series 3 Class M Notes will be made ahead of
payments of interest on the Series 3 Class C Notes.

     As among the Series 1 Notes, the Series 2 Notes and the Series 3 Notes:

     o    payments of interest on the Series 1 Class A1 Notes, the Series 1
          Class A2 Notes, the Series 2 Class A1 Notes, the Series 2 Class A2
          Notes and the Series 3 Class A Notes will be made in no order of
          priority among them but in proportion to the respective amounts due
          on the Class A Notes. These payments of interest on the Class A
          Notes will be made ahead of payments of interest on each Series of
          Class B Notes, each Series of Class M Notes and each Series of Class
          C Notes;

     o    payments of interest on the Series 1 Class B Notes, the Series 2
          Class B Notes and the Series 3 Class B Notes will be made in no
          order of priority among them but in proportion to the respective
          amounts due on the Class B Notes. These payments of interest on the
          Class B Notes will be made ahead of payments of interest on each
          Series of Class M Notes and each Series of Class C Notes;

     o    payments of interest on the Series 1 Class M Notes, the Series 2
          Class M Notes and the Series 3 Class M Notes will be made in no
          order of priority among them but in proportion to the respective
          amounts due on the Class M Notes. These payments of interest on the
          Class M Notes will be made ahead of payments of interest on each
          Series of the Class C Notes; and

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     o    payments of interest on the Series 1 Class C Notes, the Series 2
          Class C Notes and the Series 3 Class C Notes will be made in no
          order of priority among them but in proportion to the respective
          amounts due on the Class C Notes.

(ii) Principal

     Subject to there being no Trigger Event and no enforcement of the Funding
Security and/or the Current Issuer Security, no Class of Notes will be repaid
an amount of principal which is greater than the Controlled Amortisation
Amount in respect of that Class of Notes for the relevant Payment Date and,
subject also to the satisfaction of certain conditions (described below) in
relation to the repayment of principal of the Class B Notes, the Class M Notes
and the Class C Notes at any time when any Class A Notes are outstanding,
payments of principal will be made in accordance with the following priority.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class A1 Notes will be made ahead of repayment of principal in
respect of the Controlled Amortisation Amount on the Series 1 Class A2 Notes,
the Series 2 Class A1 Notes, the Series 2 Class A2 Notes and the Series 3
Class A Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class A2 Notes will be made ahead of repayment of principal in
respect of the Controlled Amortisation Amount on the Series 2 Class A1 Notes,
the Series 2 Class A2 Notes and the Series 3 Class A Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 2 Class A1 Notes, the Series 2 Class A2 Notes and the Series 3
Class A Notes will be made in no order of priority between them but in
proportion to the respective Controlled Amortisation Amounts due on the Series
2 Class A1 Notes, the Series 2 Class A2 Notes and the Series 3 Class A Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
of the Series 2 Class A1 Notes, the Series 2 Class A2 Notes and the Series 3
Class A Notes will be made ahead of repayment of principal in respect of the
Controlled Amortisation Amount on the Class B Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class B Notes, the Series 2 Class B Notes and the Series 3
Class B Notes will be made in no order of priority among them but in
proportion to the respective Controlled Amortisation Amounts due on the Class
B Notes. However, repayment of principal in respect of the Controlled
Amortisation Amount on the Class B Notes will be made ahead of repayment of
principal in respect of the Controlled Amortisation Amount on the Class M
Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class M Notes, the Series 2 Class M Notes and the Series 3
Class M Notes will be made in no order of priority among them but in
proportion to the respective Controlled Amortisation Amounts due on the Class
M Notes. However, repayment of principal in respect of the Controlled
Amortisation Amount on the Class M Notes will be made ahead of repayment of
principal in respect of the Controlled Amortisation Amount on the Class C
Notes.

     Repayment of principal in respect of the Controlled Amortisation Amount
on the Series 1 Class C Notes, the Series 2 Class C Notes and the Series 3
Class C Notes will be made in no order of priority among them but in
proportion to the respective Controlled Amortisation Amounts due on the Class
C Notes.

     The above priority of payments will change and the Current Issuer will
make repayments of principal in accordance with and subject to the Current
Issuer Priority of Payments as set out in the Current Issuer Cash Management
Agreement or, as the case may be, the Current Issuer Deed of Charge (1)
following the occurrence of a Trigger Event and/or, (2) following the
enforcement of the Funding Security and/or the enforcement of the Current
Issuer Security.

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     If any Class A Notes are outstanding and either the Issuer Arrears Test
or the Issuer Reserve Requirement (as specified in the Current Issuer Cash
Management Agreement) is not satisfied on the relevant Payment Date, no amount
of principal will be payable in respect of the Class B Notes, the Class M
Notes or the Class C Notes on that Payment Date.

     Notwithstanding the foregoing priorities, the Controlled Amortisation
Amount payable in respect of each Class of Notes is determined by a schedule
that indicates the target balance for that Class of Notes on the relevant
Payment Date and not all Classes of Notes are scheduled to receive payments of
principal on each Payment Date, with some lower ranking Classes of Notes being
repaid principal before higher ranking Classes of Notes.

(C)  Conflict between the classes of Notes

     Each of the Current Issuer Trust Deed and the Current Issuer Deed of
Charge contains provisions requiring the Note Trustee to have regard to the
interests of the Class A Noteholders, the Class B Noteholders, the Class M
Noteholders and the Class C Noteholders equally as regards all powers, trusts,
authorities, duties and discretions of the Note Trustee (except where
expressly provided otherwise), but requiring the Note Trustee to have regard
(a) (for so long as there are any Class A Notes outstanding (as that term is
defined in the Current Issuer Trust Deed)) only to the interests of the Class
A Noteholders if, in the Note Trustee's opinion, there is or may be a conflict
between the interests of the Class A Noteholders and the interests of the
Class B Noteholders and/or the interests of the Class M Noteholders and/or the
interests of the Class C Noteholders, (b) subject to (a) above, (for so long
as there are any Class B Notes outstanding) only to the interests of the Class
B Noteholders if, in the Note Trustee's opinion, there is or may be a conflict
between the interests of the Class B Noteholders and the interest of the Class
M Noteholders and/or the interests of the Class C Noteholders, and (c) subject
to (a) and (b) above, (for so long as there are any Class M Notes outstanding)
only to the interests of the Class M Noteholders if, in the Note Trustee's
opinion, there is or may be a conflict between the interests of the Class M
Noteholders and the interests of the Class C Noteholders. Except where
expressly provided otherwise, so long as any of the Notes remains outstanding,
the Note Trustee is not required to have regard to the interests of any
persons (other than the class or classes of Noteholders described above)
entitled to the benefit of the Current Issuer Security.

     The Current Issuer Trust Deed contains provisions limiting the powers of
the Class B Noteholders, the Class M Noteholders and the Class C Noteholders,
inter alia, to request or direct the Note Trustee to take any action or to
pass an effective Extraordinary Resolution according to the effect thereof on
the interests of the Class A Noteholders. Except in certain circumstances
described in Condition 11, the Current Issuer Trust Deed contains no such
limitation on the powers of the Class A Noteholders, the exercise of which
will be binding on the Class B Noteholders, the Class M Noteholders and the
Class C Noteholders respectively, irrespective of the effect thereof on their
interests.

     Similarly, the Current Issuer Trust Deed contains provisions limiting the
powers of the Class M Noteholders and the Class C Noteholders, inter alia, to
request or direct the Note Trustee to take any action or to pass an effective
Extraordinary Resolution according to the effect thereof on the interests of
the Class B Noteholders. Except in certain circumstances described above and
in Condition 11, the Current Issuer Trust Deed contains no such limitation on
the powers of the Class B Noteholders, the exercise of which will be binding
on the Class M Noteholders and the Class C Noteholders, respectively,
irrespective of the effect thereof on their interests.

     Similarly, the Current Issuer Trust Deed contains provisions limiting the
powers of the Class C Noteholders, inter alia, to request or direct the Note
Trustee to take any action or to pass an effective Extraordinary Resolution
according to the effect thereof on the interests of the Class M Noteholders.
Except in certain circumstances described above

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and in Condition 11, the Current Issuer Trust Deed contains no such limitation
on the powers of the Class M Noteholders, the exercise of which will be
binding on the Class C Noteholders irrespective of the effect thereof on their
interests.

     The Note Trustee shall be entitled to assume, for the purpose of
exercising any right, power, trust, authority, duty or discretion under or in
relation to these Conditions or any of the Transaction Documents, that such
exercise will not be materially prejudicial to the interests of the
Noteholders (or any series and/or class thereof) if the Rating Agencies have
confirmed that the then current ratings of the applicable series and/or class
or classes of Notes would not be adversely affected by such exercise.

     The Noteholders will share in the benefit of the security created by the
Current Issuer Deed of Charge, upon and subject to the terms thereof.

(D)  Security

     As security for, inter alia, the payment of all monies payable in respect
of the Notes, the Current Issuer has entered into the Current Issuer Deed of
Charge creating the Current Issuer Security in favour of the Note Trustee for
itself and on trust for the Current Issuer Secured Creditors including, inter
alia, the following:

     (i)  an assignment by way of first fixed security of the Current Issuer's
          rights and claims in respect of all security and other rights held
          on trust by the Security Trustee pursuant to the Funding Deed of
          Charge, save to the extent that any of the Current Issuer's rights
          and claims derive from property that is situated in Jersey, which
          will be assigned to the Note Trustee for the purpose of creating a
          Security Interest in accordance with Jersey law;

     (ii) an assignment by way of first fixed security of the Current Issuer's
          rights, title, interest and benefit in and to the Transaction
          Documents to which the Current Issuer is a party, including:

          (a)  the Current Intercompany Loan Agreement;

          (b)  the Funding Deed of Charge;

          (c)  the Priority Funding Deed of Charge;

          (d)  the Current Issuer Basis Rate Swap

          (e)  any Current Issuer Dollar Currency Swap Agreement in relation
               to the Dollar Notes;

          (f)  any Current Issuer Euro Currency Swap Agreement in relation to
               the Euro Notes;

          (g)  the Current Issuer Paying Agent and Agent Bank Agreement;

          (h)  the Current Issuer Underwriting Agreement and the Current
               Issuer Subscription Agreement;

          (i)  the Current Issuer Corporate Services Agreement;

          (j)  the Current Issuer Bank Account Agreement;

          (k)  the Current Cash Management Agreement;

          (l)  the Current Issuer Trust Deed;

          (m)  any Collateral Ancillary Document; and

          (n)  such other documents as are to be subject to the charges under
               the Current Issuer Deed of Charge, in each case, save to the
               extent that such rights, title, interest and benefit derive
               from property that is situated in Jersey. To the extent that
               the same are derived from property situated in Jersey, the
               Current Issuer will assign such rights, title, interest and
               benefit to the Note Trustee for the purpose of creating a
               Security Interest in those rights, title, interest and benefit
               in accordance with Jersey law;

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    (iii) an assignment by way of fixed security over the Current Issuer's
          rights, title, interest and benefit, in and to the Current Issuer
          Transaction Accounts, any Swap Collateral Account and each other
          account (if any) of the Current Issuer and all amounts or securities
          standing to the credit of those accounts (including all interest or
          other income or distributions earned on such amounts or securities);

     (iv) a first fixed charge (which may take effect as a floating charge)
          over the Current Issuer's rights, title, interest and benefit in and
          to all Authorised Investments made by or on behalf of the Current
          Issuer, including all monies and income payable thereunder; and

     (v)  a first ranking floating charge over the whole of the assets and
          undertaking of the Current Issuer which are not otherwise
          effectively subject to any fixed charge or assignment by way of
          security as described in (i), (ii), (iii) or (iv) above, all as more
          particularly set out in the Current Issuer Deed of Charge.

3.   Covenants

     Save with the prior written consent of the Note Trustee or unless
provided in or contemplated under these Conditions or any of the Transaction
Documents to which the Current Issuer is a party, the Current Issuer shall
not, so long as any Note remains outstanding:

(A)  Negative Pledge

     create or permit to subsist any mortgage, standard security, pledge,
lien, charge or other Security Interest whatsoever (unless arising by
operation of law), upon the whole or any part of its assets (including any
uncalled capital) or its undertakings, present or future;

(B)  Disposal of Assets

     sell, assign, transfer, lease or otherwise dispose of, or deal with, or
grant any option or present or future right to acquire all or any of its
properties, assets, or undertakings or any interest, estate, right, title or
benefit therein or thereto or agree or attempt or purport to do any of the
foregoing;

(C)  Equitable Interest

     permit any person other than itself and the Note Trustee (as to itself
and on behalf of the Current Issuer Secured Creditors) to have any equitable
or beneficial interest in any of its assets or undertakings or any interest,
estate, right, title or benefit therein;

(D)  Bank Accounts

     have an interest in any bank account, other than a Current Issuer Bank
Account or a Swap Collateral Account;

(E)  Restrictions on Activities

     carry on any business other than as described in the prospectus dated 20
May 2004 relating to the issue of the Dollar Notes and the related activities
described therein or as contemplated in the Transaction Documents relating to
the issue of the Notes and the making of the Current Issuer Intercompany Loan;

(F)  Borrowings

     incur any indebtedness in respect of borrowed money whatsoever or give
any guarantee or indemnity in respect of any indebtedness or obligation of any
person;

(G)  Merger

     consolidate or merge with any other person or convey or transfer
substantially all of its properties or assets to any other person;

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(H)  Waiver or Consent

     permit the validity or effectiveness of any of the Current Issuer Trust
Deed or the Current Issuer Deed of Charge or the priority of the security
interests created thereby to be amended, terminated, postponed, waived or
discharged, or permit any other person whose obligations form part of the
Current Issuer Security to be released from such obligations;

(I)  Employees or premises

     have any employees or premises or subsidiaries;

(J)  Dividends and Distributions

     pay any dividend or make any other distribution to its shareholders or
issue any further shares or alter any rights attaching to its shares as at the
date of the Current Issuer Deed of Charge;

(K)  Purchase Notes

     purchase or otherwise acquire any Note or Notes; or

(L)  United States activities

     engage in any activities in the United States (directly or through
agents), or derive any income from United States sources as determined under
United States income tax principles, or hold any property if doing so would
cause it to be engaged in a trade or business within the United States as
determined under United States income tax principles.

4.   Interest

(A) Period of Accrual

     Each Note bears interest on its Principal Amount Outstanding from (and
including) the Closing Date. Each Note (or, in the case of redemption in part
only of a Note, that part only of such Note) shall cease to bear interest from
its due date for redemption unless, upon due presentation, payment of the
relevant amount of principal or any part thereof is improperly withheld or
refused. In such event, interest will continue to accrue on such unpaid amount
(before as well as after any judgment) at the rate applicable to such Note up
to (but excluding) the date on which, on presentation of such Note, payment in
full of the relevant amount of principal is made, or (if earlier) the seventh
day after notice is duly given by the Principal Paying Agent or the US Paying
Agent, as the case may be, to the Holder thereof (either in accordance with
Condition 14 or individually) that upon presentation thereof being duly made,
such payment will be made, provided that upon presentation thereof being duly
made, payment is in fact made.

     Whenever it is necessary to compute an amount of interest in respect of
the Notes for any period (including any Interest Period), such interest shall
be calculated:

     (i)  in respect of the Dollar Notes and the Euro Notes on the basis of
          actual days elapsed in a 360-day year; and

     (ii) in respect of the Sterling Notes, on the basis of actual days
          elapsed in a 365- day year (or, in the case of an Interest Period
          ending in a leap year, a 366-day year).

(B)  Payment Dates and Interest Periods

     Interest on the Notes is payable quarterly in arrears on the 20th day of
March, June, September and December of each year (or, if such day is not a
Business Day, the next succeeding Business Day) (each, a "Payment Date"), the
first Payment Date being the Payment Date occurring in September 2004 in
respect of the Interest Period commencing on the Closing Date.

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     The order of payments of interest to be made on the classes of Notes will
be prioritised so that interest payments due and payable on the Class C Notes
will be subordinated to interest payments due and payable on the Class M
Notes, the Class B Notes and the Class A Notes, interest payments due and
payable on the Class C Notes will be subordinated to interest payments due and
payable on the Class B Notes and the Class A Notes and interest payments due
and payable on the Class B Notes will be subordinated to interest payments due
and payable on the Class A Notes, in each case in accordance with the relevant
Current Issuer Priority of Payments.

     To the extent that the funds available to the Current Issuer, subject to
and in accordance with the relevant Current Issuer Priority of Payments, to
pay interest on the Class B Notes, the Class M Notes or the Class C Notes on a
Payment Date (in each case, after discharging the Current Issuer's liabilities
of a higher priority) are insufficient to pay the full amount of such
interest, payment of the shortfall attributable to the Class B Notes, the
Class M Notes or the Class C Notes, as the case may be (in each case,
"Deferred Interest"), which will be borne by each Class B Note, Class M Note
or Class C Note, as the case may be, in proportion to the amount of interest
due, subject to this Condition 4(B), on a Class B Note, Class M Note or Class
C Note, as the case may be, on such Payment Date, will not then fall due but
will instead be deferred until the first Payment Date thereafter on which
sufficient funds are available (after allowing for the Current Issuer's
liabilities of a higher priority and subject to and in accordance with the
relevant Current Issuer Priority of Payments) to fund the payment of such
Deferred Interest to the extent of such available funds.

     Such Deferred Interest will accrue interest ("Additional Interest") at
the rate of interest applicable from time to time to the Class B Notes, the
Class M Notes or the Class C Notes, as the case may be, and payment of any
Additional Interest will also be deferred until the first Payment Date
thereafter on which funds are available (after allowing for the Current
Issuer's liabilities of a higher priority subject to and in accordance with
the relevant Current Issuer Priority of Payments) to the Current Issuer to pay
such Additional Interest to the extent of such available funds.

     Amounts of Deferred Interest and Additional Interest shall not be
deferred beyond the Final Maturity Date of the Class B Notes, the Class M
Notes or the Class C Notes, as the case may be, when such amounts will become
due and payable.

     It is possible that all or any part of any interest due on the Class B
Notes, the Class M Notes or the Class C Notes, as the case may be, may never
be paid if there are insufficient funds available (subject to and in
accordance with the relevant Current Issuer Priority of Payments) to fund the
payment of such interest after paying amounts of a higher priority.

     Payments of interest due on a Payment Date in respect of the Class A
Notes will not be deferred. In the event of the delivery of a Class A Note
Enforcement Notice (as described in Condition 9), the amount of interest that
was due but not paid on such Payment Date will itself bear interest at the
applicable rate until both the unpaid interest and the interest on that
interest are paid.

(C)  Rates of Interest

     In relation to each Class of Notes the rate of interest payable in
respect of such Class (each a "Rate of Interest" and together the "Rates of
Interest") and the relevant Interest Amount in respect of such Class shall be
determined on the basis of the provisions set out below:

     (a)  On each Interest Determination Date in relation to such Class, the
          Agent Bank will determine the Relevant Screen Rate in respect of
          such Class as at or about the Quotation Time for such Class.

                                      9
<PAGE>

          If the Relevant Screen Rate is unavailable, the Agent Bank will
          request the principal London office of each of the Reference Banks
          to provide the Agent Bank with its offered quotation to leading
          banks for the relevant Quotation Deposits for the relevant Quotation
          Period in the relevant Quotation Market as at or about the relevant
          Quotation Time on such Interest Determination Date.

          The Rate of Interest for such Class for the Interest Period relating
          to such Class shall be the aggregate of (a) the Relevant Margin in
          respect of such Class and (b) the Relevant Screen Rate in respect of
          such Class or, if the Relevant Screen Rate is unavailable, the
          arithmetic mean (or, in the case of the initial Interest
          Determination Date relating to such Class, the linear interpolation
          of the arithmetic mean) of such offered quotations by the Reference
          Banks (rounded upwards, if necessary, to five decimal places).

     (b)  If on any Interest Determination Date in relation to such Class, the
          Relevant Screen Rate in respect of such Class is unavailable and
          only two or three of the Reference Banks provide offered quotations,
          the Rates of Interest for such Class for the relevant Interest
          Period shall be determined in accordance with the provisions of
          sub-paragraph (a) above on the basis of the offered quotations of
          those Reference Banks providing such quotations.

          If, on any such Interest Determination Date, only one or none of the
          Reference Banks provides the Agent Bank with such an offered
          quotation, the Agent Bank shall forthwith consult with the Note
          Trustee for the purposes of agreeing two banks (or, where one only
          of the Reference Banks provided such a quotation, one additional
          bank) to provide such a quotation or quotations to the Agent Bank
          (which bank or banks are in the opinion of the Note Trustee suitable
          for such purpose) and the Rates of Interest for the Interest Period
          in question shall be determined, as aforesaid, on the basis of the
          offered quotations of such banks as so agreed (or, as the case may
          be, the offered quotations of such bank as so agreed and the
          relevant Reference Bank).

          If no such bank or banks is or are so agreed or such bank or banks
          as so agreed does or do not provide such a quotation or quotations,
          then the Rates of Interest for the relevant Interest Period shall be
          the Rates of Interest in relation to such Class in effect for the
          immediately preceding Interest Period to which sub-paragraph (a)
          above shall have applied but taking account of any change in the
          Relevant Margin in relation to such Class.

     There will be no minimum or maximum Rate of Interest.

(D)  Determination of Rates of Interest and Calculation of Interest Amounts

     (i)  The Agent Bank shall, as soon as practicable after the Quotation
          Time on each Interest Determination Date, determine and notify the
          Current Issuer, the Current Issuer Cash Manager, the Note Trustee
          and the Paying Agents of (i) the Rates of Interest applicable to
          each Class of Notes for the relevant Interest Period, (ii) the
          Interest Amount payable in respect of each class of Notes for the
          relevant Interest Period and (iii) the Note Interest Amount payable
          in respect of each Note for the relevant Interest Period.

     (ii) The amount of interest in respect of each class of Notes in respect
          of an Interest Period (in each case, the "Interest Amount") shall be
          determined by applying the relevant Rate of Interest to the
          aggregate Principal Amount Outstanding of the relevant class of
          Notes, multiplying the sum by the applicable day count fraction
          described in Condition 4(A) and rounding the resultant figure to the
          nearest cent, amounts equal to or above half a cent being rounded
          upwards and amounts below half a cent being rounded downwards (in
          the case of Dollar Notes and the Euro Notes) and the nearest penny,
          amounts equal to or above half a penny being rounded upwards and
          amounts below half a penny being rounded downwards (in the case of
          the Sterling Notes).

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<PAGE>

          The amount of interest in respect of each Note in respect of an
          Interest Period (in each case, the "Note Interest Amount") shall be
          the proportion of the relevant Interest Amount in relation to the
          relevant class of Notes on such date equal to the proportion that
          the Principal Amount Outstanding of the relevant Note bears to the
          aggregate Principal Amount Outstanding of the relevant class of
          Notes rounding the resulting figure to the nearest cent, amounts
          equal to or above half a cent being rounded upwards and amounts
          below half a cent being rounded downwards (in respect of the Dollar
          Notes and the Euro Notes) and the nearest penny, amounts equal to or
          above half a penny being rounded upwards and amounts below half a
          penny being rounded downwards (in respect of the Sterling Notes).

(E)  Publication of Rates of Interest, Interest Amounts and other Notices

     As soon as possible, the Agent Bank will cause the Rate of Interest and
the Interest Amount applicable to each class of Notes for each Interest Period
and the Payment Date falling at the end of such Interest Period to be notified
to the Current Issuer, the Current Issuer Cash Manager, the Note Trustee, the
Paying Agents, the Registrar and to each stock exchange, competent listing
authority and/or quotation system (if any) on or by which the Notes are then
listed, quoted and/or traded and will cause notice thereof to be given to the
relevant class of Noteholders in accordance with Condition 14. The Interest
Amounts and Payment Dates so notified may subsequently be amended (or
appropriate alternative arrangements made by way of adjustment) without notice
in the event of any extension or shortening of the relevant Interest Period.

(F)  Determination and/or Calculation by Note Trustee

     If the Agent Bank does not at any time for any reason determine the Rate
of Interest and/or calculate the Interest Amount for any class of Notes in
accordance with the foregoing paragraphs, the Note Trustee shall (i) determine
the Rate of Interest at such rate as (having such regard as it shall think fit
to the procedure described above) it shall in its sole discretion deem fair
and reasonable in all the circumstances and/or (as the case may be) and (ii)
calculate the Interest Amount for such class of Notes in the manner specified
in paragraph (D) above, and any such determination and/or calculation shall be
deemed to have been made by the Agent Bank.

(G)  Notifications to be Final

     Subject to Condition 4(D)(ii) above, all notifications, opinions,
determinations, certificates, calculations, quotations and decisions given,
expressed, made or obtained for the purposes of this Condition 4, whether by
the Reference Banks (or any of them), any other bank or the Agent Bank (in the
absence of wilful default, bad faith or manifest error) shall be binding on
the Current Issuer, the Current Issuer Cash Manager, the Reference Banks, such
other bank, the Agent Bank, the Note Trustee and all Noteholders and (in such
absence as aforesaid) no liability to the Noteholders shall attach to the
Current Issuer, the Reference Banks, such other bank, the Agent Bank, the Note
Trustee or the Current Issuer Cash Manager in connection with the exercise or
non-exercise by them or any of them of their powers, duties and discretions
hereunder.

(H)  Reference Banks and Agent Bank

     The Agent Bank shall ensure that, so long as any of the Notes remains
outstanding, there shall at all times be four Reference Banks with offices in
London and an Agent Bank. In the event of any Reference Bank being unable or
unwilling to continue to act as a Reference Bank, the Current Issuer shall,
with the approval of the Note Trustee, appoint a successor Reference Bank to
act as such in its place. In the event of the then Agent Bank being unwilling
to act as the Agent Bank, or resigning pursuant to the Current Issuer Paying
Agent and Agent Bank Agreement, the Current Issuer shall, with the approval of
the Note Trustee, appoint a successor Agent Bank. If the Current Issuer shall
fail to appoint a successor Reference Bank or successor Agent Bank (as the
case may be), the

                                      11
<PAGE>

Agent Bank shall appoint such other bank as may be previously approved in
writing by the Note Trustee to act as the Reference Bank or Agent Bank (as the
case may be). The resignation of the Agent Bank will not take effect until a
successor approved by the Note Trustee has been appointed.

5.   Redemption, Purchase and Cancellation

(A)  Final Redemption

     Unless previously redeemed in full as provided in this Condition 5, the
Current Issuer shall redeem each class of Notes at their then Principal Amount
Outstanding together with all accrued interest on the Final Maturity Date in
respect of such class of Notes.

     The Current Issuer may not redeem the Notes in whole or in part prior to
those respective dates except as provided in paragraph (B), (D), (E) or (F)
below, but without prejudice to Condition 9.

(B)  Mandatory Redemption of the Notes in Part

     On each Payment Date, other than a Payment Date on which the Notes are to
be redeemed under Conditions 5(A), (D), (E) or (F), the Current Issuer shall
repay principal in respect of the Notes in accordance with and subject to the
relevant Current Issuer Priority of Payments applicable to the Current Issuer
on such Payment Date and then only to the extent of Current Issuer Available
Principal Receipts on such Payment Date in the manner described in and subject
to the Current Issuer Cash Management Agreement and/or, as applicable, the
Current Issuer Deed of Charge.

(C)  Note Principal Payments and Principal Amount Outstanding

     The principal amount redeemable (the "Note Principal Payment") in respect
of each Note of a particular class of Notes on any Payment Date under
paragraph (B) above shall be a proportion of the amount required as at that
Payment Date to be applied in redemption of the relevant class of Notes on
such date equal to the proportion that the Principal Amount Outstanding of the
relevant Note bears to the aggregate Principal Amount Outstanding of the
relevant class of Notes rounded down to the nearest cent in respect of the
Dollar Notes and the Euro Notes, and rounded down to the nearest penny in
respect of the Sterling Notes; provided always that no such Note Principal
Payment may exceed the Principal Amount Outstanding of the relevant Note.

     On each Note Determination Date the Current Issuer shall determine (or
cause the Current Issuer Cash Manager to determine) (i) the amount of any Note
Principal Payment payable in respect of each Note of the relevant series and
class on the immediately following Payment Date and (ii) the initial principal
amount of each such Note less the aggregate amount of all Note Principal
Payments in respect of such Note that has been paid since the Closing Date and
on or prior to that Note Determination Date (the "Principal Amount
Outstanding"). Each determination by or on behalf of the Current Issuer of any
Note Principal Payment of a Note and the Principal Amount Outstanding of a
Note shall in each case (in the absence of wilful default, bad faith or
manifest error) be final and binding on all persons.

     With respect to the Notes of each class, the Current Issuer will cause
each determination of the Note Principal Payment and the Principal Amount
Outstanding to be notified forthwith, and in any event not later than 1.00
p.m. (London time) on the Business Day immediately succeeding the Note
Determination Date, to the Note Trustee, the Paying Agents, the Registrar, the
Agent Bank and (for so long as the Notes are listed on one or more stock
exchanges) the relevant stock exchanges, and will cause notice of each
determination of the Note Principal Payment and the Principal Amount
Outstanding to be given to Noteholders in accordance with Condition 14 by no
later than the Business Day after the relevant Payment Date.

                                      12
<PAGE>

     If the Current Issuer does not at any time for any reason determine (or
cause the Current Issuer Cash Manager to determine) a Note Principal Payment
or the Principal Amount Outstanding in accordance with the preceding
provisions of this paragraph, such Note Principal Payment and/or Principal
Amount Outstanding may be determined by the Note Trustee in accordance with
this paragraph (C) in the manner the Note Trustee in its discretion considers
fair and reasonable in the circumstances, having regard to this paragraph (C),
and each such determination or calculation shall be deemed to have been made
by the Current Issuer. Any such determination shall (in the absence of wilful
default, bad faith or manifest error) be binding on the Current Issuer, the
Current Issuer Cash Manager and the Noteholders.

(D)  Optional Redemption in Full

     Subject to the provisos below, upon giving not more than 60 nor less than
30 days' prior notice to the Note Trustee and the Noteholders in accordance
with Condition 14, the Current Issuer may redeem the Notes at their aggregate
Principal Amount Outstanding together with any accrued and unpaid interest in
respect thereof on the following dates:

     (i)  the Payment Date falling in June 2011 and on any Payment Date
          thereafter. This gives the Current Issuer the option to redeem the
          Notes on or after the June 2011 step-up date for interest; or

     (ii) any Payment Date on which the aggregate Principal Amount Outstanding
          of the Notes is less than 10 per cent. of the aggregate Principal
          Amount Outstanding of the Notes as at the Closing Date,

     PROVIDED THAT (a) (in either of the cases above), prior to giving any
such notice, the Current Issuer shall have provided to the Note Trustee prior
to the date of such redemption a certificate signed by two directors of the
Current Issuer to the effect that it will have the funds, not subject to any
interest of any other person, required to redeem the Notes as aforesaid and
any amounts required to be paid in priority to or pari passu with the Notes
outstanding in accordance with the terms and conditions of the Current Issuer
Cash Management Agreement and (b) the Note Trustee is satisfied in accordance
with the Transaction Documents that there are sufficient funds to allow the
Current Issuer to redeem the Notes.

(E)  Optional Redemption for Tax and other Reasons

     If the Current Issuer at any time satisfies the Note Trustee immediately
prior to the giving of the notice referred to below that on the next Payment
Date either (i) the Current Issuer would be required to deduct or withhold
from any payment of principal or interest or any other amount under any of the
Notes any amount for or on account of any present or future taxes, duties,
assessments or governmental charges of whatever nature or (ii) Funding would
be required to deduct or withhold from amounts due under the Current Issuer
Intercompany Loan any amount on account of any present or future taxes,
duties, assessments or governmental charges of whatever nature and (iii) such
obligation of the Current Issuer or Funding (as the case may be) cannot be
avoided by the Current Issuer or Funding (as the case may be) taking
reasonable measures available to it, then the Current Issuer shall use its
reasonable endeavours to arrange the substitution of a company incorporated in
another jurisdiction approved by the Note Trustee as principal debtor under
the Class A Notes, the Class B Notes, the Class M Notes and the Class C Notes
and/or as lender under the Current Issuer Intercompany Loan Agreement, as the
case may be, upon the Note Trustee being satisfied that (1) such substitution
will not be materially prejudicial to the Noteholders, (2) that the position
of the Current Issuer Secured Creditors will not thereby be adversely
affected, and (3) that such substitution would not require registration of any
new security under United States securities laws or would materially increase
the disclosure requirements under United States law or the costs of issuance.
Only if the Current Issuer is unable to arrange a substitution will the
Current Issuer be entitled to redeem the Notes as described in this Condition
5(E).

                                      13
<PAGE>

     Subject to the proviso below, if the Current Issuer is unable to arrange
a substitution as described above and, as a result, one or more of the events
described in (i) or (ii) above (as the case may be) is continuing, then the
Current Issuer may, having given not more than 60 nor less than 30 days'
notice to the Note Trustee and the Noteholders in accordance with Condition
14, redeem all (but not some only) of the Notes on the immediately succeeding
Payment Date at their aggregate Principal Amount Outstanding together with any
accrued and unpaid interest in respect thereof provided that (in either case),
prior to giving any such notice, the Current Issuer shall have provided to the
Note Trustee (A) a certificate signed by two directors of the Current Issuer
stating the circumstances referred to in (i) or (ii) and (iii) above prevail
and setting out details of such circumstances and (B) an opinion in form and
substance satisfactory to the Note Trustee of independent legal advisors of
recognised standing to the effect that the Current Issuer has or will become
obliged to pay such additional amounts as a result of such change or
amendment. The Note Trustee shall be entitled to accept such certificate and
opinion as sufficient evidence of the satisfaction of the circumstance set out
in (i) or (ii) and (iii) above, in which event they shall be conclusive and
binding on the Noteholders. The Current Issuer may only redeem the Notes as
aforesaid if the Note Trustee is satisfied in accordance with the Transaction
Documents that the Current Issuer will have the funds, not subject to the
interest of any other person, required to redeem the Notes as aforesaid and
any amounts required under the Current Issuer Pre-Enforcement Revenue Priority
of Payments currently set out in the Current Issuer Cash Management Agreement
to be paid in priority to or pari passu with the Notes outstanding in
accordance with the terms and conditions thereof.

     In addition to the foregoing, if at any time it becomes unlawful for the
Current Issuer to make, fund or allow to remain outstanding the Current Issuer
Intercompany Loan, then the Current Issuer may require Funding upon giving not
more than 60 nor less than 30 days' (or such shorter period as may be required
under any relevant law) prior written notice to the Current Issuer and the
Note Trustee, to prepay the Current Issuer Intercompany Loan on any Payment
Date subject to and in accordance with the provisions of the Current Issuer
Intercompany Loan Agreement to the extent necessary to cure such illegality.
Such monies received by the Current Issuer shall be used to redeem the Notes
in full on that Payment Date.

(F)  Optional Redemption for Implementation of New Basel Capital Accord

     If the New Basel Capital Accord, as described in the third consultative
document, the "New Basel Capital Accord" published in April 2003 by the Basel
Committee on Banking Supervision, has been implemented in the United Kingdom,
whether by rule of law, recommendation or best practice or by any other
regulation, then on the Payment Date falling in June 2008 and on any Payment
Date thereafter, the Current Issuer may, by giving not more than 60 nor less
than 30 days' (or such shorter period as may be required under any relevant
law) prior notice to the Note Trustee and the Noteholders in accordance with
Condition 14, redeem all (but not some only) of the Notes at their aggregate
Principal Amount Outstanding together with any accrued and unpaid interest in
respect thereof on the next following Payment Date, provided that a Note
Enforcement Notice has not been served. The Current Issuer may only redeem the
Notes as aforesaid if the Note Trustee is satisfied in accordance with the
Transaction Documents that the Current Issuer will have the funds, not subject
to the interest of any other person, required to redeem the Notes as aforesaid
and any amounts required under the Current Issuer Pre-Enforcement Revenue
Priority of Payments currently set out in the Current Issuer Cash Management
Agreement to be paid in priority to or pari passu with the Notes outstanding
in accordance with the terms and conditions thereof.

                                      14
<PAGE>

6.   Payments

(A)  Payment of Interest and Principal

     Payments of principal shall be made by US Dollar cheque, in the case of
the Dollar Notes, Euro cheque, in the case of the Euro Notes or Sterling
cheque, in the case of the Sterling Notes, drawn on, or upon application by a
Holder of the relevant Note to the Specified Office of the Principal Paying
Agent not later than the fifteenth day before the due date for any such
payment, or by transfer to a US Dollar account maintained by the payee with a
bank in New York City or (as the case may be) to a Sterling account maintained
by the payee with a bank in London or (as the case may be) to a Euro account
maintained by the payee with a bank as specified by the payee, and (in the
case of final redemption) upon surrender (or, in the case of part payment
only, endorsement) of the relevant Note Certificates at the Specified Office
of any Paying Agent.

     Payments of interest shall be made by US Dollar cheque, in the case of
the Dollar Notes, Euro cheque, in the case of the Euro Notes or Sterling
cheque, in the case of the Sterling Notes, drawn on, or upon application by a
Holder of the relevant Note to the Specified Office of the Principal Paying
Agent not later than the fifteenth day before the due date for any such
payment, or by transfer to a US Dollar account maintained by the payee with a
bank in New York City or (as the case may be) to a Sterling account maintained
by the payee with a bank in London or (as the case may be) to a Euro account
maintained by the payee with a bank as directed by the payee, and (in the case
of interest payable on redemption) upon surrender (or, in the case of part
payment only, endorsement) of the relevant Note Certificates at the Specified
Office of any Paying Agent.

(B) Laws and Regulations

     Payments of principal and interest in respect of the Notes are subject in
all cases to any fiscal or other laws and regulations applicable thereto.
Noteholders will not be charged commissions or expenses on payments.

(C)  Payment of Interest following a failure to pay Principal

     If payment of principal is improperly withheld or refused on or in
respect of any Note or part thereof, the interest which continues to accrue in
respect of such Note in accordance with Condition 4(A) will be paid in
accordance with this Condition 6.

(D)  Change of Agents

     The initial Principal Paying Agent, the Registrar, the Transfer Agent and
the initial Paying Agents and their respective initial Specified Offices are
listed at the end of these Conditions. The Current Issuer reserves the right,
subject to the prior written approval of the Note Trustee, at any time to vary
or terminate the appointment of the Principal Paying Agent, the Registrar, the
Transfer Agent and the US Paying Agent and to appoint additional or other
Paying Agents. The Current Issuer will at all times maintain a Paying Agent
with a Specified Office in London and a US Paying Agent with a Specified
Office in New York and a Registrar. Except where otherwise provided in the
Current Issuer Trust Deed, the Current Issuer will cause at least 30 days'
notice of any change in or addition to the Paying Agents, the Transfer Agent
or the Registrar or their Specified Offices to be given in accordance with
Condition 14 and will notify the Rating Agencies of such change or addition.

(E)  No payment on non-Business Day

     Where payment is to be made by transfer to a US Dollar account, Sterling
account or Euro account, payment instructions (for value the due date or, if
the due date is not a Payment Business Day, for value the next succeeding
Business Day) will be initiated and, where payment is to be made by US Dollar
cheque, Sterling cheque or Euro cheque, the cheque will be mailed (i) (in the
case of payments of principal and interest payable on redemption) on the later
of the due date for payment and the day on which the relevant

                                      15
<PAGE>

Note is surrendered (or, in the case of part payment only, endorsed) at the
Specified Office of a Paying Agent and (ii) (in the case of payments of
interest payable other than on redemption) on the due date for payment. A
Holder of a Note shall not be entitled to any interest or other payment in
respect of any delay in payment resulting from (A) the due date for a payment
not being a Payment Business Day or (B) a cheque mailed in accordance with
this Condition 6(E) arriving after the due date for payment or being lost in
the mail.

(F)  Partial Payment

     If a Paying Agent makes a partial payment in respect of any Note, the
Current Issuer shall procure and the registrar will ensure that the amount and
date of such payment are noted on the Register and, in the case of partial
payment upon presentation of a Note Certificate, that a statement indicating
the amount and date of such payment is endorsed on the relevant Note
Certificate.

(G)  Record Date

     Each payment in respect of a Note will be made to the person shown as the
Holder in the Register at the opening of business in the place of the
Registrar's Specified Office on the fifteenth day before the due date for such
payment (the "Record Date"). Where payment in respect of a Note is to be made
by cheque, the cheque will be mailed to the address shown as the address of
the Holder in the Register at the opening of business on the relevant Record
Date.

(H)  Payment of Interest

     Subject as provided otherwise in these Conditions, if interest is not
paid in respect of a Note of any class on the date when due and payable (other
than because the due date is not a Payment Business Day) or by reason of
non-compliance with Condition 6(A), then such unpaid interest shall itself
bear interest at the Rate of Interest applicable from time to time to such
Note until such interest and interest thereon are available for payment and
notice thereof has been duly given in accordance with Condition 14.

7.   Prescription

     Claims against the Current Issuer for payment of interest and principal
on redemption shall be prescribed and become void if the relevant Note
Certificates are not surrendered for payment within a period of 10 years from
the relevant date in respect thereof. After the date on which a payment under
a Note becomes void in its entirety, no claim may be made in respect thereof.
In this Condition 7, the "relevant date", in respect of a payment under a
Note, is the date on which the payment in respect thereof first becomes due or
(if the full amount of the monies payable in respect of those payments under
all the Notes due on or before that date has not been duly received by the
Principal Paying Agent, the US Paying Agent or the Note Trustee on or prior to
such date) the date on which the full amount of such monies having been so
received or notice to that effect is duly given to Noteholders in accordance
with Condition 14.

8.   Taxation

     All payments in respect of the Notes will be made without withholding or
deduction for, or on account of, any present or future taxes, duties or
charges of whatsoever nature unless the Current Issuer or any relevant Paying
Agent is required by applicable law to make any payment in respect of the
Notes subject to any such withholding or deduction. In that event, the Current
Issuer or such Paying Agent shall make such payment after such withholding or
deduction has been made and shall account to the relevant authorities for the
amount so required to be withheld or deducted. No Paying Agent nor the Current
Issuer will be obliged to make any additional payments to Noteholders in
respect of such withholding or deduction.

                                      16
<PAGE>

     The Issuer will treat the US Notes as indebtedness for U.S. federal
income tax purposes. Each Holder of a US Note, by the acceptance thereof,
agrees to treat such US Note as indebtedness for U.S. federal income tax
purposes.

9.   Events of Default

(A)  Class A Noteholders:

     The Note Trustee in its absolute discretion may give notice to the
Current Issuer and the Security Trustee of a Current Issuer Note Event of
Default (as defined below) in respect of the Class A Notes (a "Class A Note
Enforcement Notice"), and shall give such notice if it is indemnified to its
satisfaction and (1) if so requested in writing by the Holders of not less
than 25 per cent. in aggregate Principal Amount Outstanding of the Class A
Notes or (2) if so directed by or pursuant to an Extraordinary Resolution
passed at a meeting of the Class A Noteholders, declaring (in writing) the
Notes to be due and repayable (and they shall forthwith become due and
repayable) at any time after the happening of any of the following events
which is continuing or unwaived:

     (i)  default being made for a period of seven Business Days in the
          payment of any amount of principal of any Class A Note when and as
          the same ought to be paid in accordance with these Conditions or
          default being made for a period of fifteen Business Days in the
          payment of any amount of interest on any Class A Note when and as
          the same ought to be paid in accordance with these Conditions; or

     (ii) the Current Issuer failing duly to perform or observe any other
          obligation binding upon it under the Class A Notes, the Current
          Issuer Trust Deed, the Current Issuer Deed of Charge or any other
          Transaction Document and, in any such case (except where the Note
          Trustee certifies that, in its opinion, such failure is incapable of
          remedy, in which case no notice will be required), such failure is
          continuing unremedied for a period of 30 days following the service
          by the Note Trustee on the Current Issuer of notice requiring the
          same to be remedied and the Note Trustee has certified that the
          failure to perform or observe is materially prejudicial to the
          interests of the Class A Noteholders; or

    (iii) the Current Issuer, otherwise than for the purposes of such
          amalgamation or reconstruction as is referred to in sub-paragraph
          (iv) below, ceases or threatens to cease to carry on its business or
          a substantial part of its business or the Current Issuer is deemed
          unable to pay its debts within the meaning of section 123(1)(a),
          (b), (c) or (d) of the Insolvency Act 1986 (as that section may be
          amended, modified or re-enacted) or becomes unable to pay its debts
          within the meaning of section 123(2) of the Insolvency Act 1986 (as
          that section may be amended, modified or re-enacted); or

     (iv) an order being made or an effective resolution being passed for the
          winding-up of the Current Issuer except a winding-up for the
          purposes of or pursuant to an amalgamation, restructuring or merger
          the terms of which have previously been approved by the Note Trustee
          in writing or by an Extraordinary Resolution of the Class A
          Noteholders; or

     (v)  proceedings being otherwise initiated against the Current Issuer
          under any applicable liquidation, insolvency, composition,
          reorganisation or other similar laws (including, but not limited to,
          presentation of a petition for administration or the filing of
          documents with the court for an administration) and (except in the
          case of presentation of a petition for an administration order) such
          proceedings are not, in the opinion of the Note Trustee, being
          disputed in good faith with a reasonable prospect of success, a
          formal notice is given of intention to appoint an administrator in
          relation to the Current Issuer or an administration order being
          granted or an administrative receiver or other receiver, liquidator
          or other similar official being appointed in relation to the Current
          Issuer or in relation to the

                                      17
<PAGE>

          whole or any substantial part of the undertaking or assets of the
          Current Issuer, or an encumbrancer taking possession of the whole or
          any substantial part of the undertaking or assets of the Current
          Issuer, or a distress, execution, diligence or other process being
          levied or enforced upon or sued out against the whole or any
          substantial part of the undertaking or assets of the Current Issuer
          and such possession or process (as the case may be) not being
          discharged or not otherwise ceasing to apply within 30 days, or the
          Current Issuer initiating or consenting to judicial proceedings
          relating to itself under applicable liquidation, insolvency,
          composition, reorganisation or other similar laws or making a
          conveyance or assignment for the benefit of its creditors generally
          or a composition or similar arrangement with the creditors or takes
          steps with a view to obtaining a moratorium in respect of its
          indebtedness, including without limitation, the filing of documents
          with the court; or

     (vi) if an Intercompany Loan Enforcement Notice is served under any
          Intercompany Loan Agreement while any of the Class A Notes is
          outstanding.

(B)  Class B Noteholders

     This Condition 9(B) shall have no effect if, and for as long as, any
Class A Notes are outstanding. Subject thereto, for so long as any Class B
Notes are outstanding, the Note Trustee in its absolute discretion may give
notice to the Current Issuer and the Security Trustee of a Current Issuer Note
Event of Default (as defined below) in respect of the Class B Notes (a "Class
B Note Enforcement Notice"), and shall give such notice if it is indemnified
to its satisfaction and (1) if so requested in writing by the Holders of not
less than 25 per cent. in aggregate Principal Amount Outstanding of the Class
B Notes or (2) if so directed by or pursuant to an Extraordinary Resolution
passed at a meeting of the Class B Noteholders, declaring (in writing) the
Notes to be due and repayable (and they shall forthwith become due and
repayable) at any time after the happening of any of the following events:

     (i)  default being made for a period of seven Business Days in the
          payment of any amount of principal of any Class B Note when and as
          the same ought to be paid in accordance with these Conditions or
          default being made for a period of fifteen Business Days in the
          payment of any amount of interest on any Class B Note when and as
          the same ought to be paid in accordance with these Conditions; or

     (ii) the occurrence of any of the events in Condition 9(A)(ii), (iii),
          (iv), (v) or (vi) above provided that the references in Condition
          9(A)(ii) and Condition 9(A)(iv) to Class A Notes and Class A
          Noteholders shall be read as references to Class B Notes and Class B
          Noteholders, respectively.

(C)  Class M Noteholders

     This Condition 9(C) shall have no effect if, and for as long as, any
Class A Notes or any Class B Notes are outstanding. Subject thereto, for so
long as any Class M Notes are outstanding, the Note Trustee in its absolute
discretion may give notice to the Current Issuer and the Security Trustee of a
Current Issuer Note Event of Default (as defined below) in respect of the
Class M Notes (a "Class M Note Enforcement Notice"), and shall give such
notice if it is indemnified to its satisfaction and (1) if so requested in
writing by the Holders of not less than 25 per cent. in aggregate Principal
Amount Outstanding of the Class M Notes or (2) if so directed by or pursuant
to an Extraordinary Resolution passed at a meeting of the Class M Noteholders,
declaring (in writing) the Notes to be due and repayable (and they shall
forthwith become due and repayable) at any time after the happening of any of
the following events:

     (i)  default being made for a period of seven Business Days in the
          payment of any amount of principal of any Class M Note when and as
          the same ought to be paid in accordance with these Conditions or
          default being made for a period of

                                      18
<PAGE>

          fifteen Business Days in the payment of any amount of interest on
          any Class M Note when and as the same ought to be paid in accordance
          with these Conditions; or

     (ii) the occurrence of any of the events in Condition 9(A)(ii), (iii),
          (iv), (v) or (vi) above provided that the references in Condition
          9(A)(ii) and Condition 9(A)(iv) to Class A Notes and Class A
          Noteholders shall be read as references to Class M Notes and Class M
          Noteholders, respectively.

(D)  Class C Noteholders

     This Condition 9(D) shall have no effect if, and for as long as, any
Class A Notes, any Class B Notes or any Class M Notes are outstanding. Subject
thereto, for so long as any Class C Notes are outstanding, the Note Trustee in
its absolute discretion may give notice to the Current Issuer and the Security
Trustee of a Current Issuer Note Event of Default (as defined below) in
respect of the Class C Notes (a "Class C Note Enforcement Notice"), and shall
give such notice if it is indemnified to its satisfaction and (1) if so
requested in writing by the Holders of not less than 25 per cent. in aggregate
Principal Amount Outstanding of the Class C Notes or (2) if so directed by or
pursuant to an Extraordinary Resolution passed at a meeting of the Class C
Noteholders, declaring (in writing) the Notes to be due and repayable (and
they shall forthwith become due and repayable) at any time after the happening
of any of the following events:

     (i)  default being made for a period of seven Business Days in the
          payment of any amount of principal of any Class C Note when and as
          the same ought to be paid in accordance with these Conditions or
          default being made for a period of fifteen Business Days in the
          payment of any amount of interest on any Class C Note when and as
          the same ought to be paid in accordance with these Conditions; or

     (ii) the occurrence of any of the events in Condition 9(A)(ii), (iii),
          (iv), (v) or (vi) above provided that the references in Condition
          9(A)(ii) and Condition 9(A)(iv) to Class A Notes and Class A
          Noteholders shall be read as references to Class C Notes and Class C
          Noteholders respectively.

(E)  Following Service of a Note Enforcement Notice

     For the avoidance of doubt, upon any Note Enforcement Notice being given
by the Note Trustee in accordance with Condition 9(A), (B), (C) or (D) above,
all classes of the Notes then outstanding shall immediately become due and
repayable, without further action or formality at their Principal Amount
Outstanding together with any accrued and unpaid interest in respect thereof
as provided in the Current Issuer Trust Deed.

10.  Enforcement of Notes

     The Note Trustee may, at its discretion and without notice at any time
and from time to time, take such steps and institute such proceedings against
the Current Issuer or any other person as it may think fit to enforce the
provisions of the Notes, the Current Issuer Trust Deed (including these
Conditions), the Current Issuer Deed of Charge or any of the other Transaction
Documents. The Note Trustee may, at its discretion and without notice, at any
time after the Current Issuer Security has become enforceable, take such steps
as it may think fit to enforce the Current Issuer Security. The Note Trustee
shall not be bound to take any such proceedings or steps unless:

     (i)  (subject in all cases to restrictions contained in the Current
          Issuer Trust Deed or, as the case may be, the Current Issuer Deed of
          Charge to protect the interests of any higher ranking class of
          Noteholders) it shall have been so directed by an Extraordinary
          Resolution (as described in Condition 9) of the Class A Noteholders,
          the Class B Noteholders, the Class M Noteholders or the Class C

                                      19
<PAGE>

          Noteholders or so requested in writing by the Holders of at least 25
          per cent. in Principal Amount Outstanding of the Class A Notes,
          Class B Notes, Class M Notes or Class C Notes; and

     (ii) it shall have been indemnified to its satisfaction.

     Amounts available for distribution after enforcement of the Current
Issuer Security shall be distributed in accordance with the terms of the
Current Issuer Deed of Charge.

     No Noteholder may institute any proceedings against the Current Issuer to
enforce its rights under or in respect of the Notes or the Current Issuer
Trust Deed unless (1) the Note Trustee has become bound to institute
proceedings and has failed to do so within 30 days of becoming so bound and
(2) such failure is continuing; provided that, no Class B Noteholder, Class M
Noteholder or Class C Noteholder will be entitled to commence proceedings for
the winding up or administration of the Current Issuer unless there are no
outstanding Notes of a class with higher priority, or if Notes of a class with
higher priority are outstanding, there is consent of Noteholders of not less
than 25 per cent. of the aggregate principal amount of the Notes outstanding
(as defined in the Current Issuer Trust Deed) of the class or classes of Notes
with higher priority. Notwithstanding the foregoing and notwithstanding any
other provision of the Current Issuer Trust Deed, the right of any Noteholder
to receive payment of principal and interest on its Notes on or after the due
date for such principal or interest, or to institute suit for the enforcement
of payment of that principal or interest, may not be impaired or affected
without the consent of that Noteholder.

     In the event that (a) the Current Issuer Security is enforced and after
payment of all other claims ranking in priority to the Notes under the Current
Issuer Deed of Charge, the remaining proceeds of such enforcement are
insufficient to pay in full all principal and interest and other amounts
whatsoever due in respect of the Notes and all other claims ranking pari passu
therewith or (b) within 20 days following the Final Maturity Date of the
latest maturing Note, the Note Trustee certifies that there is no further
amount outstanding under the related Current Issuer Intercompany Loan, then
all interests in the Global Note Certificate will be automatically exchanged
for equivalent interests in an equivalent amount of Notes in an equivalent
Principal Amount Outstanding in Individual Note Certificates and such Global
Note Certificate will be cancelled on the date of such exchange. The
Noteholders are required and the Note Trustee is required on their behalf at
the request of the Post Enforcement Call Option Holder, to transfer or (as the
case may be) procure transfer of all (but not some only) of the Notes to the
Post Enforcement Call Option Holder pursuant to the option granted to it by
the Note Trustee (as agent for the Noteholders) pursuant to the Current Issuer
Post Enforcement Call Option Agreement. The Noteholders will be paid for that
transfer the sum of one pence Sterling in respect of each Current Issuer Note
then outstanding. Immediately upon such transfer, no such former Noteholder
shall have any further interest in the Notes. Each of the Noteholders
acknowledges that the Note Trustee has the authority and the power to bind the
Noteholders in accordance with the terms and conditions set out in the Current
Issuer Post Enforcement Call Option Agreement and each Noteholder, by
subscribing for or purchasing Notes, agrees to be so bound.

11.  Meetings of Noteholders, Modifications and Waiver

(A)  Meetings of Noteholders

     The Current Issuer Trust Deed contains provisions for convening meetings
of each class of Noteholders to consider any matter affecting their interests,
including the sanctioning by Extraordinary Resolution of a modification of any
provision of these Conditions or the provisions of any of the Transaction
Documents.

(1)  Class A Notes

     The Current Issuer Trust Deed provides that:

                                      20
<PAGE>

     (i)  a single meeting of the Holders of all series of Class A Notes may
          be held whether or not there is a conflict of interest between the
          Holders of such series of the Class A Notes;

     (ii) there shall be no provision for a meeting of the Holders of one
          series only of the Class A Notes; and

    (iii) as the Class A Notes are not all denominated in the same currency,
          the Principal Amount Outstanding of any Class A Note denominated in
          Dollars or Euro shall be converted into Sterling at the relevant
          Current Issuer Dollar Currency Swap Rate or Current Issuer Euro
          Currency Swap Rate, respectively.

(2)  Class B Notes

     The Current Issuer Trust Deed provides that:

     (i)  a single meeting of the Holders of all series of Class B Notes may
          be held whether or not there is a conflict of interest between the
          Holders of such series of the Class B Notes;

     (ii) there shall be no provision for a meeting of the Holders of one
          series only of the Class B Notes; and

    (iii) as the Class B Notes are not all denominated in the same currency,
          the Principal Amount Outstanding of any Class B Note denominated in
          Dollars or Euro shall be converted into Sterling at the relevant
          Current Issuer Dollar Currency Swap Rate or Current Issuer Euro
          Currency Swap Rate, respectively.

(3)  Class M Notes

     The Current Issuer Trust Deed provides that:

     (i)  a single meeting of the Holders of all series of Class M Notes may
          be held whether or not there is a conflict of interest between the
          Holders of such series of the Class M Notes;

     (ii) there shall be no provision for a meeting of the Holders of one
          series only of the Class M Notes; and

    (iii) as the Class M Notes are not all denominated in the same currency,
          the Principal Amount Outstanding of any Class M Note denominated in
          Dollars or Euro shall be converted into Sterling at the relevant
          Current Issuer Dollar Currency Swap Rate or Current Issuer Euro
          Currency Swap Rate, respectively.

(4)  The Class C Notes

     The Current Issuer Trust Deed provides that:

     (i)  a single meeting of the Holders of all series of Class C Notes may
          be held whether or not there is a conflict of interest between the
          Holders of such series of the Class C Notes;

     (ii) there shall be no provision for a meeting of the Holders of one
          series only of the Class C Notes; and

    (iii) as the Class C Notes are not all denominated in the same currency,
          the Principal Amount Outstanding of any Class C Note denominated in
          Dollars or Euro shall be converted into Sterling at the relevant
          Current Issuer Dollar Currency Swap Rate or Current Issuer Euro
          Currency Swap Rate, respectively.

     Subject as provided in the following paragraph, the quorum at any meeting
of the Noteholders of any class convened to consider an Extraordinary
Resolution will be two or more persons holding or representing more than half
of the aggregate Principal Amount Outstanding of the Notes of that class or,
at any adjourned meeting, two or more persons being or representing
Noteholders of that class, whatever the aggregate Principal Amount Outstanding
of the Notes so held or represented.

                                      21
<PAGE>

     The quorum at any meeting of the Noteholders of any class for passing an
Extraordinary Resolution which includes the sanctioning of a modification
which would have the effect of altering the amount, rate or timing of payments
on the Notes, the currency of payment of the Notes, or altering the priority
of payments or altering the quorum or majority required in relation to this
exception (a "Basic Terms Modification"), shall be two or more persons holding
or representing not less than three quarters or, at any adjourned and
reconvened meeting, not less than one quarter of the aggregate Principal
Amount Outstanding of the Notes of such class.

     A resolution signed by or on behalf of all the Noteholders of the
relevant class who for the time being are entitled to receive notice of a
meeting under the Current Issuer Trust Deed shall for all purposes be as valid
and effective as an Extraordinary Resolution passed at a meeting of such class
of Noteholders.

(B)  Limitations on Class B Noteholders

     Subject as provided below in relation to an Extraordinary Resolution
concerning a Basic Terms Modification, no Extraordinary Resolution of the
Class B Noteholders shall take effect for any purpose while any Class A Notes
remain outstanding unless it shall have been sanctioned by an Extraordinary
Resolution of the Class A Noteholders or the Note Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Noteholders.

(C)  Limitations on Class M Noteholders

     Subject as provided below in relation to an Extraordinary Resolution
concerning a Basic Terms Modification, no Extraordinary Resolution of the
Class M Noteholders shall take effect for any purpose while any Class A Notes
or any Class B Notes remain outstanding unless it shall have been sanctioned
by an Extraordinary Resolution of the Class A Noteholders and an Extraordinary
Resolution of the Class B Noteholders or the Note Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Noteholders and the Class B Noteholders.

(D)  Limitations on Class C Noteholders

     Subject as provided below in relation to an Extraordinary Resolution
concerning a Basic Terms Modification, no Extraordinary Resolution of the
Class C Noteholders shall take effect for any purpose while any Class A Notes,
any Class B Notes or any Class M Notes remain outstanding unless it shall have
been sanctioned by an Extraordinary Resolution of the Class A Noteholders, an
Extraordinary Resolution of the Class B Noteholders and an Extraordinary
Resolution of the Class M Noteholders, or the Note Trustee is of the opinion
that it would not be materially prejudicial to the interests of the Class A
Noteholders, the Class B Noteholders and the Class M Noteholders.

(E)  Basic Terms Modifications

     (i)  An Extraordinary Resolution of the Class A Noteholders concerning a
          Basic Terms Modification will not be effective unless it shall have
          been sanctioned by an Extraordinary Resolution of the Class B
          Noteholders, an Extraordinary Resolution of the Class M Noteholders
          and an Extraordinary Resolution of the Class C Noteholders.

     (ii) An Extraordinary Resolution of the Class B Noteholders concerning a
          Basic Terms Modification will not be effective unless it shall have
          been sanctioned by an Extraordinary Resolution of the Class A
          Noteholders, an Extraordinary Resolution of the Class M Noteholders
          and an Extraordinary Resolution of the Class C Noteholders.

                                      22
<PAGE>

    (iii) An Extraordinary Resolution of the Class C Noteholders concerning a
          Basic Terms Modification will not be effective unless it is also
          sanctioned by an Extraordinary Resolution of the Class A
          Noteholders, an Extraordinary Resolution of the Class B Noteholders
          and an Extraordinary Resolution of the Class C Noteholders.

     (iv) An Extraordinary Resolution of the Class C Noteholders concerning a
          Basic Terms Modification will not be effective unless it is also
          sanctioned by an Extraordinary Resolution of the Class A
          Noteholders, an Extraordinary Resolution of the Class B Noteholders
          and an Extraordinary Resolution of the Class M Noteholders.

(F)  Modifications and Determinations by Note Trustee

     The Note Trustee may agree, without the consent of the relevant class of
Noteholders, (i) to any modification (other than a Basic Terms Modification)
of, or to the waiver or authorisation of any breach or proposed breach of, the
Conditions of a particular class or classes or any of the Transaction
Documents which is not, in the opinion of the Note Trustee, materially
prejudicial to the interests of the relevant class or classes of the
Noteholders or (ii) to any modification of these Conditions or any of the
Transaction Documents which, in the opinion of the Note Trustee, is of a
formal, minor or technical nature or is to correct a manifest error.

     Any such modification, waiver, authorisation or determination shall be
binding on the Noteholders and, unless the Note Trustee agrees otherwise, any
such modification shall be notified to the Noteholders and the Rating Agencies
in accordance with Condition 14 as soon as practicable thereafter.

     The Note Trustee may agree, without the consent of the Holders of the
Sterling Notes on or after the Specified Date (as defined below), to such
modifications to the Sterling Notes and the Current Issuer Trust Deed in
respect of redenomination of such Notes in euro and associated
reconventioning, renominalisation and related matters in respect of such Notes
as may be proposed by the Current Issuer (and confirmed by an independent
financial institution approved by the Note Trustee to be in conformity with
then applicable market conventions) and to provide for redemption at the euro
equivalent of the sterling principal amount of the Sterling Notes. For these
purposes, "Specified Date" means the date on which the United Kingdom
participates in the third stage of European economic and monetary union
pursuant to the Treaty establishing the European Community, as amended by the
Treaty on European Union, or otherwise participates in European economic and
monetary union in a manner with an effect similar to such third stage.

     Any such modification shall be binding on the Holders of the Sterling
Notes and, unless the Note Trustee agrees otherwise, any such modification
shall be notified to such Noteholders in accordance with Condition 14 as soon
as practicable thereafter.

(G)  Exercise of Note Trustee's Functions

     Where the Note Trustee is required, in connection with the exercise of
its powers, trusts, authorities, duties and discretions, to have regard to the
interests of the Noteholders of one class, it shall have regard to the
interests of such Noteholders as a class and, in particular but without
prejudice to the generality of the foregoing, the Note Trustee shall not have
regard to, or be in any way liable for, the consequences of such exercise for
individual Noteholders resulting from their being for any purpose domiciled or
resident in, or otherwise connected with, or subject to the jurisdiction of,
any particular territory. In connection with any such exercise, the Note
Trustee shall not be entitled to require, and no Noteholder shall be entitled
to claim, from the Current Issuer or any other person, any indemnification or
payment in respect of any tax consequence of any such exercise upon individual
Noteholders.

                                      23
<PAGE>

12.  Indemnification of the Note Trustee

     The Current Issuer Trust Deed and the Current Issuer Deed of Charge
contain provisions governing the responsibility (and relief from
responsibility) of the Note Trustee and providing for its indemnification in
certain circumstances, including, among others, provisions relieving it from
taking enforcement proceedings or enforcing the Current Issuer Security unless
indemnified to its satisfaction. The Note Trustee is also entitled to be paid
its costs and expenses in priority to any interest payments to Noteholders.

     The Note Trustee and its related companies are entitled to enter into
business transactions with the Current Issuer, the Current Issuer Cash
Manager, Northern Rock plc and/or the related companies of any of them and to
act as note trustee for the Holders of any new Notes and/or any other person
who is a party to any Transaction Document or whose obligations are comprised
in the Current Issuer Security and/or any of its subsidiary or associated
companies without accounting for any profit resulting therefrom.

     The Note Trustee will not be responsible for any loss, expense or
liability which may be suffered as a result of any assets comprised in the
Current Issuer Security, or any deeds or documents of title thereto, being
uninsured or inadequately insured or being held by clearing organisations or
their operators or by intermediaries such as banks, brokers or other similar
persons on behalf of the Note Trustee.

     Furthermore, the Note Trustee will be relieved of liability for making
searches or other inquiries in relation to the assets comprising the Current
Issuer Security. The Note Trustee does not have any responsibility in relation
to the legality and the enforceability of the trust arrangements and the
related Current Issuer Security. The Note Trustee will not be obliged to take
any action which might result in its incurring personal liabilities. The Note
Trustee is not obliged to monitor or investigate the performance of any other
person under the Current Issuer related documents or the documents relating to
the Current Issuer Intercompany Loan and the Mortgages Trust and is entitled
to assume, until it has actual knowledge to the contrary, that all such
persons are properly performing their duties, unless it receives express
notice to the contrary.

     The Note Trustee will not be responsible for any deficiency which may
arise because it is liable to tax in respect of the proceeds of any Current
Issuer Security.

     Similar provisions in respect of the indemnification of the Security
Trustee are set out in the Transaction Documents.

13.  Replacement of Notes

     If Individual Note Certificates are lost, stolen, mutilated, defaced or
destroyed, the Noteholder can replace them at the Specified Office of any
Paying Agent. The Noteholder will be required both to pay the expenses of
producing a replacement and to comply with the Current Issuer's, the
Registrar's and the Paying Agent's reasonable requests for evidence and
indemnity. The Noteholder must surrender any defaced or mutilated Note
Certificates before replacements will be issued.

     If a Global Note Certificate is lost, stolen, mutilated, defaced or
destroyed, the Current Issuer will deliver a replacement Global Note
Certificate to the registered holder upon satisfactory evidence and surrender
of any defaced or mutilated Global Note Certificate. A replacement will only
be made upon payment of the expenses for a replacement and compliance with the
Current Issuer's, Registrar's and Paying Agents' reasonable requests as to
evidence and indemnity.

14.  Notice to Noteholders

(A)  Publication of Notice

     Notices to Noteholders will be sent to them by first class mail (or its
equivalent) or (if posted to a non-UK address) by airmail at the respective
addresses on the Register. Any such notice shall have been deemed to have been
given on the fourth day after the date of mailing. In addition, any notice
shall be validly given if published on the date of such

                                      24
<PAGE>

mailing in The Financial Times and, for so long as amounts are outstanding on
the Dollar Notes, in a daily newspaper of general circulation in New York
(which is expected to be The New York Times) or, if such publication is not
practicable, in a leading English language daily newspaper having general
circulation in the United States; provided that if, at any time, the Current
Issuer procures that the information concerned in such notice shall appear on
a page of the Reuters screen, or any other medium for electronic display of
data as may be previously approved in writing by the Note Trustee and notified
to Noteholders (in each case a "Relevant Screen"), publication in the
newspapers set out above or such other newspaper or newspapers shall not be
required with respect to such information, provided however, that in the case
that any Notes are listed on the Official List of the UK Listing Authority and
admitted to trading by the London Stock Exchange, notices of Noteholder
Meetings shall continue to be published as set forth above. Any such notice
shall be deemed to have been given on the date of such publication or, if
published more than once or on different dates, on the first date on which
publication shall have been made in the newspaper or newspapers in which (or
on the Relevant Screen on which) publication is required.

(B)  Note Trustee's Discretion to Select Alternative Method

     The Note Trustee shall be at liberty to sanction some other method of
giving notice to the Noteholders or any class or category of them if, in its
opinion, such other method is reasonable having regard to market practice then
prevailing and to the requirements of the stock exchanges on which the Notes
are then listed and provided that notice of such other method is given to the
Noteholders in such manner as the Note Trustee shall require.

15.  Governing Law and Jurisdiction

     The Transaction Documents (other than the Current Issuer Underwriting
Agreement (which is governed by the laws of the State of New York)) and the
Notes are governed by English law, except for those provisions in which
security is taken over property situated in Jersey, to which Jersey law shall
apply and certain provisions relating to property situated in Scotland, to
which Scots law shall apply. The courts of England are to have nonexclusive
jurisdiction to settle any disputes which may arise out of or in connection
with the Notes and the Transaction Documents (other than the Current Issuer
Underwriting Agreement). The Current Issuer and the other parties to the
Transaction Documents (other than the Current Issuer Underwriting Agreement)
irrevocably submit to the non-exclusive jurisdiction of the courts of England.

16.  Contracts (Rights of Third Parties) Act 1999

     No person shall have any right to enforce any term or condition of the
Notes under the Contracts (Rights of Third Parties) Act 1999, but this shall
not affect any right or remedy of a third party which exists or is available
apart from that Act.

17.  Definitions

     Unless otherwise defined in these Conditions or unless the context
otherwise requires, in these Conditions the following words shall have the
following meanings and any other capitalised terms used in these Conditions
shall have the meanings ascribed to them or incorporated in the Current Issuer
Trust Deed or the Current Issuer Master Definitions Schedule. The provisions
of Clause 2 (Interpretation and Construction) of the Current Issuer Master
Definitions Schedule are incorporated into and shall apply to these
Conditions.

     "Additional Interest" has the meaning indicated in Condition 4(B);

     "Agents" means the Paying Agents, the Transfer Agent, the Registrar and
the Agent Bank;

                                      25
<PAGE>

     "Agent Bank" means Citibank, N.A. in its capacity as agent bank at its
Specified Office or such other person for the time being acting as agent bank
under the Current Issuer Paying Agent and Agent Bank Agreement;

     "Asset Trigger Event" means the event that occurs when there is a
positive balance on the Class A Principal Deficiency Sub-Ledger in respect of
any Issuer;

     "Authorised Holding" means, in respect of the US Global Note
Certificates, $10,000 and integral multiples of $1,000 in excess thereof, and
in respect of the Reg S Global Note Certificates, A500,000 and integral
multiples of A1,000 in excess thereof (in respect of the Euro Notes) and
(GBP)10,000 and integral multiples of (GBP)1,000 in excess thereof (in respect
of the Sterling Notes);

     "Authorised Investments" means (i) Sterling gilt-edged investments and
(ii) Sterling demand or time deposits, certificates of deposit and short-term
debt obligations (including commercial paper) (which may include deposits in
any account which earns a rate of interest related to LlBOR) provided that in
all cases such investments have a maturity date of 90 days or less and mature
on or before the next following Payment Date and the short-term unsecured,
unguaranteed and unsubordinated debt obligations of the issuing or
guaranteeing entity or entity with which the demand or time deposits are made
(being an authorised institution under the Financial Services and Markets Act
2000) are rated at least "A-1+" by Standard & Poor's, "F1+" by Fitch and "P-1"
by Moody's or which are otherwise acceptable to the Rating Agencies (if they
are notified in advance) to maintain the then current ratings of the Notes;

     "Basic Terms Modification" has the meaning indicated in Condition 11(A);

     "Business Day" means a day which is a New York Business Day, a London
Business Day and a TARGET Business Day;

     "Cash Management Agreement" means the cash management agreement dated the
Initial Closing Date, among the Cash Manager, the Mortgages Trustee, Funding
and the Security Trustee, as described further in "Cash management for the
mortgages trustee and Funding" in the Prospectus;

     "Cash Manager" means Northern Rock or such other person or persons for
the time being acting, under the cash management agreement, as agent for the
Mortgages Trustee, Funding and (following enforcement of the Funding security)
the Security Trustee for the purposes of, inter alia, managing all cash
transactions and maintaining certain ledgers on behalf of the Mortgages
Trustee, Funding and (following enforcement of the Funding security) the
Security Trustee;

     "Class" or "class" means, in relation to the Notes or the Noteholders, a
class of any of the Series 1 Notes, the Series 2 Notes or the Series 3 Notes,
as the context requires;

     "Class A Note Enforcement Notice" has the meaning indicated in Condition
9(A);

     "Class A Noteholders" means the Holders of the Class A Notes;

     "Class A Notes" means the Series 1 Class A1 Notes, the Series 1 Class A2
Notes, the Series 2 Class A1 Notes, the Series 2 Class A2 Notes and the Series
3 Class A Notes;

     "Class B Note Enforcement Notice" has the meaning indicated in Condition
9(B);

     "Class B Noteholders" means the Holders of the Class B Notes;

     "Class B Notes" means the Series 1 Class B Notes, the Series 2 Class B
Notes and the Series 3 Class B Notes;

     "Class C Note Enforcement Notice" has the meaning indicated in Condition
9(D);

     "Class C Noteholders" means the Holders of the Class C Notes;

     "Class C Notes" means the Series 1 Class C Notes, the Series 2 Class C
Notes and the Series 3 Class C Notes;

     "Class M Note Enforcement Notice" has the meaning indicated in Condition
9(C);

                                      26
<PAGE>

     "Class M Noteholders" means the Holders of the Class M Notes;

     "Class M Notes" means the Series 1 Class M Notes, the Series 2 Class M
Notes and the Series 3 Class M Notes;

     "Clearstream, Luxembourg" means Clearstream Banking, societe anonyme;

     "Closing Date" means on or about 26 May 2004;

     "Commercial Business Day" has the meaning indicated in Condition 1(D);

     "Controlled Amortisation Amount" means on any Payment Date before the
occurrence of a Trigger Event for any Note or class of Notes issued by the
Current Issuer which is a Controlled Amortisation Note or class of such Notes,
the maximum aggregate principal amount which may be repaid by the Current
Issuer to the relevant Noteholder or Noteholders of such class on that Payment
Date in accordance with the Conditions and the Current Issuer Cash Management
Agreement;

     "Controlled Amortisation Note" means any Note where, before the
occurrence of a Trigger Event or the enforcement of the Current Issuer
Security, the conditions of such Note impose a limit on the amount of
principal which may be repaid by the Current Issuer to the relevant Noteholder
for that Note on any Payment Date. All of the Notes issued by the Current
Issuer are Controlled Amortisation Notes;

     "Current Issuer" means Granite Mortgages 04-2 plc;

     "Current Issuer Account Bank" means Citibank, N.A., situated at 5
Carmelite Street, London EC4Y 0PA. Citibank, N.A. or such other person for the
time being acting as account bank to the Current Issuer under the Current
Issuer Bank Account Agreement;

     "Current Issuer Available Principal Receipts" means:

     (a)  prior to enforcement of the Current Issuer Security, for the Current
          Issuer in respect of any Payment Date an amount calculated by the
          Current Issuer Cash Manager on the Distribution Date immediately
          preceding such Payment Date equal to the sum of:

          (i)  all principal amounts repaid by Funding to the Current Issuer
               under the Current Issuer Intercompany Loan during the period
               from (but excluding) the immediately preceding Payment Date to
               (and including) that Payment Date; and

          (ii) all Current Issuer Available Revenue Receipts which are to be
               used on that Payment Date to credit the Current Issuer
               Principal Deficiency Ledger for any class of Notes issued by
               the Current Issuer;

     less

         (iii) the aggregate of all principal amounts (if any) repaid by
               Funding to the Current Issuer under the Current Issuer
               Intercompany Loan on the relevant Payment Date which are to be
               applied on the relevant Payment Date to pay items (A) through
               (E), (G), (I) and/or (K) of the Current Issuer Pre- Enforcement
               Revenue Priority of Payments; and

     (b)  following enforcement of the Current Issuer Security, for the
          Current Issuer in respect of any Payment Date the sum calculated by
          or on behalf of the Note Trustee on the Distribution Date
          immediately preceding such Payment Date as the amount to be repaid
          by Funding to the Current Issuer under the Current Issuer
          Intercompany Loan during the relevant Interest Period and/or the sum
          otherwise recovered by the Note Trustee (or the receiver appointed
          on its behalf) representing the Principal Amount Outstanding of the
          Notes;

     "Current Issuer Available Revenue Receipts" means for the Current Issuer
in respect of any Payment Date an amount calculated by the Current Issuer Cash
Manager on the Distribution Date immediately preceding such Payment Date equal
to the sum of:

                                      27
<PAGE>

     (a)  interest, fees and any other amount (excluding principal) paid by
          Funding on the relevant Payment Date in respect of the Current
          Issuer Intercompany Loan;

     (b)  amounts received by the Current Issuer under or in accordance with
          the Current Issuer Basis Rate Swap Agreement (excluding Swap
          Collateral Excluded Amounts) and any early termination amounts
          (other than such early termination amounts applied or to be applied
          by the Current Issuer in the purchase of one or more replacement
          hedge transactions) received by the Current Issuer under the Current
          Issuer Swap Agreements;

     (c)  interest payable on the Current Issuer Bank Accounts and any income
          from Authorised Investments made with funds standing to the credit
          of the Current Issuer Bank Accounts in each case which has been or
          will be received on or before the relevant Payment Date; and

     (d)  (only to the extent required after the Current Issuer Cash Manager
          has made the relevant calculations set out in the Current Issuer
          Cash Management Agreement) the aggregate of all principal amounts
          (if any) repaid by Funding to the Current Issuer under the Current
          Issuer Intercompany Loan on the relevant Payment Date which are to
          be applied on the relevant Payment Date to pay items (A) through
          (E), (G), (I) and/or (K) of the Current Issuer Pre-Enforcement
          Revenue Priority of Payments;

     "Current Issuer Bank Accounts" means the Current Issuer Transaction
Accounts and also includes any additional or replacement bank account opened
in the name of the Current Issuer from time to time with the prior written
consent of the Note Trustee and the Rating Agencies;

     "Current Issuer Bank Account Agreement" means the bank account agreement
entered into on or about the Closing Date between the Current Issuer, the
Current Issuer Cash Manager, the Current Issuer Account Bank and the Note
Trustee;

     "Current Issuer Basis Rate Swap Agreement" means the ISDA master
agreement, schedule thereto and confirmation thereunder entered into on or
about the Closing Date and any credit support annex entered into at any time
between the Current Issuer, the Current Issuer Basis Rate Swap Provider and
the Note Trustee, and includes any additional and/or replacement Current
Issuer Basis Rate Swap Agreement entered into by the Current Issuer from time
to time in connection with the Notes;

     "Current Issuer Basis Rate Swap Provider" means Northern Rock plc or such
other basis rate swap provider appointed from time to time in accordance with
the terms of the Transaction Documents;

     "Current Issuer Cash Management Agreement" means the cash management
agreement entered into on or about the Closing Date among the Current Issuer
Cash Manager, the Current Issuer and the Note Trustee;

     "Current Issuer Corporate Services Agreement" means the corporate
services agreement entered into on or before the Closing Date between, among
others, the Current Issuer Corporate Services Provider, Holdings, the Post
Enforcement Call Option Holder and the Current Issuer, for the provision by
the Current Issuer Corporate Services Provider of certain corporate services;

     "Current Issuer Corporate Services Provider" means Law Debenture
Corporate Services Limited or such other person for the time being acting as
corporate services provider to the Current Issuer under the Current Issuer
Corporate Services Agreement;

     "Current Issuer Deed of Charge" means the deed of charge entered into on
or about the Closing Date between, among others, the Current Issuer and the
Note Trustee, under which the Current Issuer creates the Current Issuer
Security in favour of the Current Issuer Secured Creditors;

                                      28
<PAGE>

     "Current Issuer Dollar Currency Swap Agreements" means the ISDA master
agreements, schedules thereto and confirmations thereunder relating to the
dollar currency swaps entered into on or about the Closing Date and any credit
support annexes or other credit support documents entered into at any time
among the Current Issuer, the Current Issuer Dollar Currency Swap Provider and
the Note Trustee and/or any credit support provider and includes any
additional and/or replacement Current Issuer Dollar Currency Swap Agreement
entered into by the Current Issuer from time to time in connection with the
Dollar Notes;

     "Current Issuer Dollar Currency Swap Provider" means Banque AIG or, as
applicable, such other dollar currency swap provider appointed from time to
time in relation to the Dollar Notes (or any class of them, as the context
shall require), in accordance with the terms of the Transaction Documents;

     "Current Issuer Dollar Currency Swap Rate" means the rate at which
Dollars are converted to Sterling or, as the case may be, Sterling is
converted to Dollars pursuant to, as applicable, to any Current Issuer Dollar
Currency Swap Agreement, or, if there is no relevant Current Issuer Dollar
Currency Swap Agreement in effect at such time, the "spot" rate at which
Dollars are converted to Sterling or, as the case may be, Sterling is
converted to Dollars, on the foreign exchange markets;

     "Current Issuer Euro Currency Swap Agreements" means the ISDA master
agreements, schedules thereto and confirmations thereunder relating to the
euro currency swaps entered into on or about the Closing Date and any credit
support annexes or other credit support documents entered into at any time
among the Current Issuer, the Current Issuer Euro Currency Swap Provider and
the Note Trustee and/or any credit support provider and includes any
additional and/or replacement Current Issuer Euro Currency Swap Agreement
entered into by the Current Issuer from time to time in connection with the
Euro Notes;

     "Current Issuer Euro Currency Swap Provider" means ABN AMRO Bank N.V. or,
as applicable, such other euro currency swap provider appointed from time to
time in relation to the Euro Notes (or any class of them, as the context shall
require), in accordance with the terms of the Transaction Documents;

     "Current Issuer Euro Currency Swap Rate" means the rate at which Euro are
converted to Sterling or, as the case may be, Sterling is converted to Euro
pursuant to, as applicable, to any Current Issuer Euro Currency Swap
Agreement, or, if there is no relevant Current Issuer Euro Currency Swap
Agreement in effect at such time, the "spot" rate at which Euro are converted
to Sterling or, as the case may be, Sterling is converted to Euro, on the
foreign exchange markets;

     "Current Issuer Intercompany Loan" means the loan made by the Current
Issuer to Funding on the Closing Date under the Current Issuer Intercompany
Loan Agreement;

     "Current Issuer Intercompany Loan Agreement" means the intercompany loan
agreement entered into on or about the Closing Date between, among others,
Funding, the Current Issuer and the Security Trustee;

     "Current Issuer Master Definitions Schedule" means the master definitions
schedule in connection with the Current Issuer dated on or about the Closing
Date setting out, among other things, definitions which apply to certain
Transaction Documents;

     "Current Issuer Paying Agent and Agent Bank Agreement" means the paying
agent and agent bank agreement entered into on or about the Closing Date
between the Current Issuer, the Principal Paying Agent, the Paying Agents, the
Transfer Agent, the Registrar, the Agent Bank and the Note Trustee;

     "Current Issuer Post-Enforcement Call Option Agreement" means the post
enforcement call option agreement entered into on or about the Closing Date
between the Current Issuer the Post Enforcement Call Option Holder and the
Note Trustee;

                                      29
<PAGE>

     "Current Issuer Post-Enforcement Priority of Payments" means the
provisions and the order of priority of payments in which all Current Issuer
Available Revenue Receipts, Current Issuer Available Principal Receipts and
all other monies, income, receipts and recoveries received by or on behalf of
the Current Issuer or the Note Trustee or any receiver of the Current Issuer
and the proceeds of enforcement of the Current Issuer Security are to be
applied following an enforcement of the Current Issuer Security as set out in
a schedule to the Current Issuer Deed of Charge, as the same may be amended,
varied or superseded from time to time in accordance with the terms of the
Current Issuer Deed of Charge;

     "Current Issuer Pre-Enforcement Principal Priority of Payments" means the
provisions and the order of priority of payments in which the Current Issuer
Available Principal Receipts will be applied until enforcement of the Current
Issuer Security as set out in a schedule to the Current Issuer Cash Management
Agreement;

     "Current Issuer Pre-Enforcement Revenue Priority of Payments" means the
provisions and the order of priority of payments in which the Current Issuer
Available Revenue Receipts will be applied until enforcement of the Current
Issuer Security and as set out in a schedule to the Current Issuer Cash
Management Agreement;

     "Current Issuer Priority of Payments" means the relevant Current Issuer
Pre- Enforcement Revenue Priority of Payments, the Current Issuer
Pre-Enforcement Principal Priority of Payments and the Current Issuer
Post-Enforcement Priority of Payments;

     "Current Issuer Reserve Fund" means the reserve fund established in the
name of Funding in respect of the Current Issuer on the Closing Date;

     "Current Issuer Secured Creditors" means the Note Trustee (and any
receiver appointed under the Current Issuer Deed of Charge), the Swap
Providers, the Current Issuer Corporate Services Provider, the Current Issuer
Account Bank, the Current Issuer Cash Manager, the Paying Agents, the Agent
Bank, the Transfer Agent, the Registrar and the Noteholders;

     "Current Issuer Security" means the security created by the Current
Issuer pursuant to the Current Issuer Deed of Charge;

     "Current Issuer Subscription Agreement" means the subscription agreement
relating to the sale of the Series 2 Notes and the Series 3 Notes, entered
into on or about 20 May 2004, between, among others, the Current Issuer,
Funding, the Mortgages Trustee, Citigroup Global Markets Limited, Credit
Suisse First Boston (Europe) Limited and Lehman Brothers International
(Europe);

     "Current Issuer Swap Agreements" means the Current Issuer Dollar Currency
Swap Agreements, the Current Issuer Euro Currency Swap Agreements and the
Current Issuer Basis Rate Swap Agreement;

     "Current Issuer Transaction Accounts" means the day to day bank accounts
of the Current Issuer, held with the Current Issuer Account Bank and
comprising the Current Issuer dollar account, the Current Issuer sterling
account and the Current Issuer euro account as at the Closing Date or that may
be opened, with the prior approval of the Note Trustee, after the Closing
Date;

     "Current Issuer Trust Deed" means the trust deed entered into on or about
the Closing Date between the Current Issuer and the Note Trustee, among other
things, constituting the Notes;

     "Current Issuer Underwriting Agreement" means the underwriting agreement
relating to the sale of the Series 1 Notes entered into on or about 20 May
2004 between, among others, the Current Issuer, Funding, the Mortgages
Trustee, Citigroup Global Markets Limited, Credit Suisse First Boston (Europe)
Limited and Lehman Brothers Inc. The governing law and jurisdiction of the
Current Issuer Underwriting Agreement is the State of New York;

                                      30
<PAGE>

     "Current Seller Share" means the amount of trust property beneficially
owned by the Seller from time to time.

     "Deferred Interest" has the meaning indicated in Condition 4(B);

     "Distribution Date" means the date on which the mortgages trust
terminates and the London Business Day determined by the Cash Manager falling
no later than 6 business days after each Trust Determination Date;

     "Dollar Interest Determination Date" means in relation to the Dollar
Notes and any Interest Period for which the applicable Rate of Interest shall
apply, two London Business Days before the first day of such Interest Period;

     "Dollar Notes" means the Series 1 Notes;

     "Dollars", "US$", "US Dollars" or "$" means the lawful currency for the
time being of the United States of America;

     "Euro", "euro" or "G" means the currency of the member states of the
European Union that adopt the single currency in accordance with the Treaty of
Rome of 25 March 1957, establishing the European Community, as amended from
time to time;

     "Euro Interest Determination Date" for the Euro Notes and any Interest
Period for which the applicable Rate of Interest shall apply means two TARGET
Business Days before the first day of such Interest Period;

     "Euro Notes" means the Series 2 Notes (other than the Series 2 Class A2
Notes);

     "Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
System;

     "Eurozone" means the region comprised of the member states of the
European Union that adopt the single currency in accordance with the Treaty of
Rome of 25 March 1957, establishing the European Community, as amended from
time to time;

     "Extraordinary Resolution" means (a) a resolution passed at a meeting of
the Noteholders of a particular class duly convened and held in accordance
with the provisions of the Current Issuer Trust Deed by a majority consisting
of not less than three-fourths of the persons voting thereat upon a show of
hands or if a poll is duly demanded by a majority consisting of not less than
three-fourths of the votes cast on such poll or (b) a resolution in writing
signed by or on behalf of all the Noteholders of a particular class, which
resolution in writing may be contained in one document or in several documents
in like form each signed by or on behalf of one or more of the Noteholders;

     "Final Maturity Date" means:

     (i)  in respect of the Series 1 Class A1 Notes, the Payment Date falling
          in June 2025;

     (ii) in respect of the Series 1 Class A2 Notes, the Payment Date falling
          in June 2028;

    (iii) in respect of the Series 1 Class B Notes, the Payment Date falling
          in June 2044;

     (iv) in respect of the Series 1 Class M Notes, the Payment Date falling
          in June 2044;

     (v)  in respect of the Series 1 Class C Notes, the Payment Date falling
          in June 2044;

     (vi) in respect of the Series 2 Class A1 Notes, the Payment Date falling
          in June 2044;

    (vii) in respect of the Series 2 Class A2 Notes, the Payment Date falling
          in June 2044;

   (viii) in respect of the Series 2 Class B Notes, the Payment Date falling
          in June 2044;

     (ix) in respect of the Series 2 Class M Notes, the Payment Date falling
          in June 2044;

     (x)  in respect of the Series 2 Class C Notes, the Payment Date falling
          in June 2044;

     (xi) in respect of the Series 3 Class A Notes, the Payment Date falling
          in June 2044;

                                      31
<PAGE>

    (xii) in respect of the Series 3 Class B Notes, the Payment Date falling
          in June 2044;

   (xiii) in respect of the Series 3 Class M Notes, the Payment Date falling
          in June 2044; and

    (xiv) in respect of the Series 3 Class C Notes, the Payment Date falling
          in June 2044;

     "Funding" means Granite Finance Funding Limited;

     "Funding Deed of Charge" means the deed of charge dated the Initial
Closing Date, as amended and restated from time to time, between, among
others, Funding, the Security Trustee, the First Issuer and the Note Trustee
and each deed of accession or supplement entered into in connection therewith
(including, where the context admits and for the avoidance of doubt, the
Second Priority Funding Deed of Charge);

     "Funding Security" means the mortgages, charges, assignments, pledges and
other security created by Funding under or pursuant to the Funding Deed of
Charge in favour of the Security Trustee for the benefit of the secured
creditors of Funding as described under the Funding Deed of Charge;

     "Global Note Certificates" means the US Global Note Certificates and the
Reg S Global Note Certificates;

     "Holder" has the meaning indicated in Condition 1(B);

     "Individual Note Certificates" means the note certificates representing
the Notes while in definitive form;

     "Initial Relevant Screen Rate" means:

     (i)  in respect of the Dollar Notes, the linear interpolation of the
          arithmetic mean of the offered quotations to leading banks for three
          months Dollar deposits and the arithmetic mean of the offered
          quotations to leading banks for four months Dollar deposits (rounded
          upwards, if necessary, to five decimal places), displayed on the
          Dow-Jones Telerate Monitor at Telerate Page No. 3750;

     (ii) in respect of the Euro Notes, the linear interpolation of the
          arithmetic mean of the offered quotations to leading banks for three
          months Euro deposits and the arithmetic mean of the offered
          quotations to leading banks for four months Euro deposits (rounded
          upwards, if necessary, to five decimal places), displayed on the
          Dow-Jones Telerate Monitor at Telerate Page No. 248; or

    (iii) in respect of the Sterling Notes, the linear interpolation of the
          arithmetic mean of the offered quotations to leading banks for three
          months Sterling deposits and the arithmetic mean of the offered
          quotations to leading banks for four months Sterling deposits
          (rounded upwards, if necessary, to five decimal places), displayed
          on the Dow-Jones Telerate Monitor at Telerate Page No. 3750;

     in each case, displayed on the above-mentioned page of the
Dow-Jones/Telerate Monitor (or such replacement page on that service which
displays the information) or, if that service ceases to display the
information, such other screen service as may be determined by the Current
Issuer (with the approval of the Note Trustee, in its sole discretion)
(rounded upwards, if necessary, to five decimal places);

     "Interest Amount" has the meaning indicated in Condition 4(D)(ii);

     "Interest Determination Date" means (a) in respect of each Class of
Dollar Notes, the Dollar Interest Determination Date, (b) in respect of each
Class of Euro Notes, the Euro Interest Determination Date, and (c) in respect
of each Class of Sterling Notes, the Sterling Interest Determination Date;

     "Interest Period" means, in relation to each of the Notes and any Payment
Date, the period from (and including) the immediately preceding Payment Date
for such Note (or in respect of the first Interest Period, the Closing Date)
to (but excluding) the next following (or first) Payment Date for such Note;

                                      32
<PAGE>

     "London Business Day" means a day (other than a Saturday or Sunday or
public holiday) on which banks are generally open for business in London;

     "London Stock Exchange" means the London Stock Exchange plc;

     "Minimum Seller Share" means an amount included in the Seller Share which
is calculated in accordance with the Mortgages Trust Deed and which, as at the
Closing Date, will be approximately (GBP)890,000,000;

     "Mortgages Trust" means the trust of the trust property held by the
Mortgages Trustee under the Mortgages Trust Deed;

     "New York Business Day" means a day (other than a Saturday, Sunday or a
public holiday) on which banks are generally open for business in the City of
New York;

     "Non-Asset Trigger Event" means any of the following events: (a) an
Insolvency Event occurs in relation to the Seller, (b) the role of the Seller
as Administrator under the Administration Agreement is terminated and a new
Administrator is not appointed within 60 days, or (c) on the Distribution Date
immediately succeeding a Seller Share Event Distribution Date, the Current
Seller Share is equal to or less than the Minimum Seller Share (determined
using the amounts of the Current Seller Share and Minimum Seller Share that
would exist after making the distributions of mortgages trustee principal
receipts due on that Distribution Date on the basis that the Cash Manager
assumes that those mortgages trustee principal receipts are distributed in the
manner described under "- Mortgages trustee allocation and distribution of
mortgages trustee principal receipts prior to the occurrence of a trigger
event" in the prospectus);

     "Note Certificates" means any Global Note Certificates or Individual Note
Certificates;

     "Note Determination Date" means the Distribution Date immediately
preceding each Payment Date;

     "Note Enforcement Notice" means any or all of a Class A Note Enforcement
Notice, a Class B Note Enforcement Notice, a Class M Note Enforcement Notice
and a Class C Note Enforcement Notice;

     "Note Interest Amount" has the meaning indicated in Condition 4(D)(ii);

     "Note Principal Payment" has the meaning indicated in Condition 5(C);

     "Note Trustee" means The Bank of New York and its successors or any
further or other note trustee under the Current Issuer Trust Deed, as trustee
for the Noteholders, and/or the Current Issuer Deed of Charge;

     "Noteholders" means the Holders for the time being of the Notes;

     "Notes" means the Class A Notes, the Class B Notes, the Class M Notes and
the Class C Notes;

     "Paying Agents" means the Principal Paying Agent and the US Paying Agent,
together with any further or other paying agents for the time being appointed
under the Current Issuer Paying Agent and Agent Bank Agreement;

     "Payment Business Day" means a day which is (i) a New York Business Day,
(ii) a London Business Day and (iii) a TARGET Business Day and, in the case of
surrender (or, in the case of part payment only, endorsement) of a Note
Certificate under Condition 6(E), means any day on which banks are open for
business in the place in which such Note Certificate is surrendered (or, as
the case may be, endorsed);

     "Post Enforcement Call Option Holder" means GPCH Limited;

     "Principal Amount Outstanding" has the meaning indicated in Condition
5(C);

     "Principal Paying Agent" means Citibank, N.A. in its capacity as
principal paying agent at its Specified Office or such other person for the
time being acting as principal paying agent under the Current Issuer Paying
Agent and Agent Bank Agreement;

                                      33
<PAGE>

     "Quotation Deposits" means (a) in respect of each Class of Dollar Notes,
Dollar deposits of $10,000,000, (b) in respect of each Class of Euro Notes,
Euro deposits of A10,000,000, and (c) in respect of each Class of Sterling
Notes, Sterling deposits of (GBP)10,000,000;

     "Quotation Market" means (a) in respect of each Class of Euro Notes, the
Eurozone inter-bank market, and (b) in respect of each other Class of Notes,
the London inter-bank market;

     "Quotation Period" means on the initial Interest Determination Date
relating to a Class of Notes, three months and four months and (b) on each
other Interest Determination Date relating to such Class, three months;

     "Quotation Time" means (a) in respect of each Class of Euro Notes, 11.00
a.m. Brussels time on the relevant Interest Determination Date relating to
such Class, and (b) in respect of each other Class of Notes, 11.00 a.m. London
time on the relevant Interest Determination Date relating to such Class;

     "Rate of Interest" and "Rates of Interest" have the meanings indicated in
Condition 4(C);

     "Rating Agencies" means Standard & Poor's Rating Services, a division of
The McGraw-Hill Companies Inc., Moody's Investors Service Limited and Fitch
Ratings Ltd.;

     "Reference Banks" means the principal London offices of Citibank, N.A.,
ABN AMRO Bank N.V., Barclays Bank plc and JPMorgan Chase Bank and their
successors and/or such other bank as may be appointed pursuant to Condition
4(H);

     "Reg S" means Regulation S under the United States Securities Act of
1933, as amended;

     "Reg S Global Note Certificates" means the note certificates representing
the Series 2 Notes and Series 3 Notes, as applicable, while in global form;

     "Register" means the register of Noteholders kept by the Registrar and
which records the identity of each Noteholder and the number of Notes that
each Noteholder owns;

     "Registrar" means Citibank, N.A. in its capacity as registrar at its
Specified Office or such other person for the time being acting as registrar
under the Current Issuer Paying Agent and Agent Bank Agreement;

     "Relevant Margin" means:

     (i)  in respect of the Series 1 Class A1 Notes, 0.04 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.08 per cent. per annum;

     (ii) in respect of the Series 1 Class A2 Notes, 0.07 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.14 per cent. per annum;

    (iii) in respect of the Series 1 Class B Notes, 0.17 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.34 per cent. per annum;

     (iv) in respect of the Series 1 Class M Notes, 0.28 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.56 per cent. per annum;

     (v)  in respect of the Series 1 Class C Notes, 0.70 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 1.40 per cent. per annum;

     (vi) in respect of the Series 2 Class A1 Notes, 0.14 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.28 per cent. per annum;

                                      34
<PAGE>

    (vii) in respect of the Series 2 Class A2 Notes, 0.14 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.28 per cent. per annum;

   (viii) in respect of the Series 2 Class B Notes, 0.27 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.54 per cent. per annum;

     (ix) in respect of the Series 2 Class M Notes, 0.40 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.80 per cent. per annum;

     (x)  in respect of the Series 2 Class C Notes, 0.80 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 1.60 per cent. per annum;

     (xi) in respect of the Series 3 Class A Notes, 0.16 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.32 per cent. per annum;

    (xii) in respect of the Series 3 Class B Notes, 0.32 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.64 per cent. per annum;

   (xiii) in respect of the Series 3 Class M Notes, 0.47 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 0.94 per cent. per annum; and

    (xiv) in respect of the Series 3 Class C Notes, 0.85 per cent. per annum
          up to and including the Interest Period ending on the Payment Date
          in June 2011 and thereafter 1.70 per cent. per annum;

     "Relevant Screen Rate" means:

     (i)  in respect of the first Interest Period, the Initial Relevant Screen
          Rate; and

     (ii) (1)  in respect of subsequent Interest Periods in respect of the
               Dollar Notes, the arithmetic mean of the offered quotations to
               leading banks for three-month Dollar deposits in the London
               inter-bank market displayed on the Dow- Jones/Telerate Monitor at
               Telerate Page No. 3750;

          (2)  in respect of subsequent Interest Periods in respect of the
               Euro Notes, the arithmetic mean of offered quotations for three
               month Euro deposits in the Eurozone inter-bank market displayed
               on the Dow-Jones/Telerate Monitor at Telerate Page No. 248; and

          (3)  in respect of subsequent Interest Periods in respect of the
               Sterling Notes, the arithmetic mean of offered quotations for
               three month Sterling deposits in the London inter-bank market
               displayed on the Dow-Jones/Telerate Monitor at Telerate Page
               No. 3750;

     in each case, displayed on the above-mentioned page of the
Dow-Jones/Telerate Monitor (or such replacement page on that service which
displays the information) or, if that service ceases to display the
information, such other screen service as may be determined by the Current
Issuer (with the approval of the Note Trustee, in its sole discretion)
(rounded upwards, if necessary, to five decimal places);

     "Second Priority Funding Deed of Charge" means the second priority deed
of charge dated January 28, 2004, as amended, restated, novated or
supplemented from time to time, among Funding, the Mortgages Trustee and the
Security Trustee;

     "Security Interest" means any mortgage or sub-mortgage, standard
security, charge or sub-charge (whether legal or equitable), encumbrance,
pledge, lien, hypothecation, assignment by way of security or other security
interest or title retention arrangement and

                                      35
<PAGE>

any agreement, trust or arrangement having substantially the same economic or
financial effect as any of the foregoing (other than a lien arising in the
ordinary course of business or by operation of law);

     "Security Trustee" means The Bank of New York and its successors or any
other security trustee under the Funding Deed of Charge);

     "Seller Share" means the Current Seller Share of the trust property
calculated as set forth in the Mortgages Trust Deed;

     "Seller Share Event" means an event that will occur if, on a Distribution
Date, (i) the result of the calculation of the Current Seller Share on that
Distribution Date would be equal to or less than the Minimum Seller Share for
such Distribution Date (determined using the amounts of the Current Seller
Share and Minimum Seller Share that would exist after making the distributions
of mortgages trustee principal receipts due on that Distribution Date on the
basis that the Cash Manager assumes that those mortgages trustee principal
receipts are distributed in the manner described under "- Mortgages trustee
allocation and distribution of mortgages trustee principal receipts prior to
the occurrence of a trigger event") in the prospectus, and (ii) a Seller Share
Event has not occurred on the immediately preceding Distribution Date);

     "Seller Share Event Distribution Date" means a Distribution Date on which
a Seller Share Event occurs;

     "Series" or "series" means, in relation to the Notes, the Series 1 Notes,
the Series 2 Notes or the Series 3 Notes, as the context requires;

     "Series 1 Class A Notes" means the Series 1 Class A1 Notes and the Series
1 Class A2 Notes;

     "Series 1 Class A1 Notes" means the $1,120,400,000 Series 1 Class A1
floating rate notes due June 2025;

     "Series 1 Class A2 Notes" means the $1,322,800,000 Series 1 Class A2
floating rate notes due June 2028;

     "Series 1 Class B Notes" means the $40,300,000 Series 1 Class B floating
rate notes due June 2044;

     "Series 1 Class C Notes" means the $73,500,000 Series 1 Class C floating
rate notes due June 2044;

     "Series 1 Class M Notes" means the $33,200,000 Series 1 Class M floating
rate notes due June 2044;

     "Series 1 Notes" means collectively the Series 1 Class A Notes, the
Series 1 Class B Notes, the Series 1 Class M Notes and the Series 1 Class C
Notes;

     "Series 2 Class A Notes" means the Series 2 Class A1 Notes and the Series
2 Class A2 Notes;

     "Series 2 Class A1 Notes" means the A1,340,000,000 Series 2 Class A1
floating rate notes due June 2044;

     "Series 2 Class A2 Notes" means the (GBP)244,000,000 Series 2 Class A2
floating rate notes due June 2044;

     "Series 2 Class B Notes" means the A92,000,000 Series 2 Class B floating
rate notes due June 2044;

     "Series 2 Class C Notes" means the A89,000,000 Series 2 Class C floating
rate notes due June 2044;

     "Series 2 Class M Notes" means the A53,500,000 Series 2 Class M floating
rate notes due June 2044;

     "Series 2 Notes" means collectively the Series 2 Class A Notes, the
Series 2 Class B Notes, the Series 2 Class M Notes and the Series 2 Class C
Notes;

                                      36
<PAGE>

     "Series 3 Class A Notes" means the (GBP)752,100,000 Series 3 Class A
floating rate notes due June 2044;

     "Series 3 Class B Notes" means the (GBP)38,900,000 Series 3 Class B
floating rate notes due June 2044;

     "Series 3 Class C Notes" means the (GBP)48,500,000 Series 3 Class C
floating rate notes due June 2044;

     "Series 3 Class M Notes" means the (GBP)26,500,000 Series 3 Class M
floating rate notes due June 2044;

     "Series 3 Notes" means collectively the Series 3 Class A Notes, the
Series 3 Class B Notes, the Series 3 Class M Notes and the Series 3 Class C
Notes;

     "Specified Date" has the meaning indicated in Condition 11(F);

     "Specified Office" means, the context may require, in relation to any of
the Agents, the office specified against the name of such Agent in the Current
Issuer Paying Agent and Agent Bank Agreement or such other specified notice as
may be notified to the Current Issuer and the Note Trustee pursuant to the
Current Issuer Paying Agent and Agency Bank Agreement;

     "Sterling", "Pounds Sterling" or "(GBP)" means the lawful currency for
the time being of the United Kingdom of Great Britain and Northern Ireland;

     "Sterling Notes" means the Series 2 Class A2 Notes and the Series 3
Notes;

     "Sterling Interest Determination Date" for the Sterling Notes and any
Interest Period for which the applicable Rate of Interest shall apply means
the first day of such Interest Period;

     "Swap Collateral" means any asset (including, without limitation, cash
and/or securities) paid or transferred to the Current Issuer by a Swap
Provider in accordance with the terms of the relevant Current Issuer Swap
Agreement as collateral to secure the performance of that Swap Provider's
obligations under the relevant Current Issuer Swap Agreement together with any
income or distributions received in respect of such asset and any equivalent
of or replacement of such asset into which such asset is transformed;

     "Swap Collateral Accounts" means the Swap Collateral Cash Account and the
Swap Collateral Securities Account;

     "Swap Collateral Ancillary Document" means any document (including,
without limitation, any custodial agreement or bank account agreement but
excluding the Current Issuer Swap Agreements, the Current Issuer Cash
Management Agreement and the Current Issuer Deed of Charge) as may be entered
into by the Current Issuer from time to time in connection with the Swap
Collateral;

     "Swap Collateral Available Principal Amount" means, at any time, the
amount of Swap Collateral which under the terms of the relevant Current Issuer
Swap Agreement may be applied at that time in satisfaction of the relevant
Swap Provider's obligations to the Current Issuer to the extent that such
obligations relate to payments to be made in connection with the Current
Issuer Pre-Enforcement Principal Priority of Payments or Current Issuer
Post-Enforcement Priority of Payments, as the case may be;

     "Swap Collateral Available Revenue Amount" means, at any time, the amount
of Swap Collateral which under the terms of the relevant Current Issuer Swap
Agreement may be applied at that time in satisfaction of the relevant Swap
Provider's obligations to the Current Issuer to the extent that such
obligations relate to payments to be made in connection with the Current
Issuer Pre-Enforcement Revenue Priority of Payments or Current Issuer
Post-Enforcement Priority of Payments, as the case may be;

     "Swap Collateral Cash Account" means an account opened in the name of the
Current Issuer for the purpose of holding Swap Collateral in cash and
maintained in accordance with the terms of the Current Issuer Cash Management
Agreement;

                                      37
<PAGE>

     "Swap Collateral Securities Account" means a securities account opened in
the name of the Current Issuer for the purpose of holding Swap Collateral in
the form of securities and maintained in accordance with the terms of the
Current Issuer Cash Management Agreement;

     "Swap Providers" means each of the Current Issuer Basis Rate Swap
Provider, the Current Issuer Dollar Currency Swap Provider and the Current
Issuer Euro Currency Swap Provider, or any one of them as the context
requires;

     "TARGET Business Day" means a day on which the Trans-European Automated
Real-time Gross settlement Express Transfer (TARGET) System is open;

     "Transaction Documents" means the Current Issuer Corporate Services
Agreement, the Current Issuer Intercompany Loan Agreement, the Funding Deed of
Charge, the Second Priority Funding Deed of Charge, the Current Issuer Bank
Account Agreement, the Current Issuer Deed of Charge, the Current Issuer Trust
Deed, the Current Issuer Paying Agent and Agent Bank Agreement, the Current
Issuer Cash Management Agreement, the Current Issuer Post-Enforcement Call
Option Agreement, the Current Issuer Dollar Currency Swap Agreement, the
Current Issuer Euro Currency Swap Agreement, the Current Issuer Basis Rate
Swap Agreement, any Swap Collateral Ancillary Document, the Current Issuer
Subscription Agreement, the Current Issuer Underwriting Agreement, the Current
Issuer Master Definitions Schedule, the Funding (Granite 04-2) Guaranteed
Investment Contract, the Mortgages Trustee Guaranteed Investment Contract, the
Funding Guaranteed Investment Contract and such other related documents which
are referred to in the terms of the above documents;

     "Transfer Agent" means Citibank, N.A. in its capacity as transfer agent
at its Specified Office or such other person for the time being acting as
transfer agent under the Current Issuer Paying Agent and Agent Bank Agreement;

     "Trigger Event" means an Asset Trigger Event or a Non-Asset Trigger
Event, as the case may be;

     "Trust Determination Date" means the first day (or, if not a London
Business Day, the next succeeding London Business Day) of each calendar month;

     "UK Listing Authority" means the United Kingdom Financial Services
Authority in its capacity as competent authority pursuant to Part VI of the
FSMA;

     "US Global Note Certificates" means the note certificates representing
the Series 1 Notes while in global form; and

     "US Paying Agent" means Citibank, N.A., acting in its capacity as US
paying agent through its New York office or such other person for the time
being acting as US paying agent under the Current Issuer Paying Agent and
Agent Bank Agreement.

                                      38EXHIBIT 4.6

                               Dated 26 May 2004
                               -----------------

                          GRANITE MORTGAGES 04-2 PLC
                               as Current Issuer

                                CITIBANK, N.A.
                          as Principal Paying Agent,
                   Agent Bank, Registrar and Transfer Agent

                       CITIBANK, N.A. (NEW YORK BRANCH)
                              as US Paying Agent

                                    - and -

                             THE BANK OF NEW YORK
                                as Note Trustee

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

                 ISSUER PAYING AGENT AND AGENT BANK AGREEMENT

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

                          SIDLEY AUSTIN BROWN & WOOD
                               WOOLGATE EXCHANGE
                             25 BASINGHALL STREET
                                LONDON EC2V 5HA
                            TELEPHONE 020 7360 3600
                            FACSIMILE 020 7626 7937

<PAGE>

                                   CONTENTS

1.   Definitions and Interpretation..........................................1

2.   Appointment of the Agents...............................................2

3.   The Current Issuer Notes; Authentication................................3

4.   Duties of Agents........................................................4

5.   Exchanges of Global Note Certificates and Delivery of Individual
     Note Certificates.......................................................6

6.   Replacement Note Certificates...........................................7

7.   Payments to the Paying Agents...........................................7

8.   Payments to Noteholders.................................................9

9.   Transfers of Current Issuer Notes......................................11

10.  Miscellaneous Duties of the Agents.....................................12

11.  Agents to act for Note Trustee.........................................15

12.  Fees and Expenses......................................................16

13.  Terms of Appointment...................................................17

14.  No Liability for Consequential Loss....................................19

15.  Termination of Appointment.............................................19

16.  Non-Petition and Limited Recourse......................................22

17.  Notices................................................................23

18.  Third Party Rights.....................................................24

19.  Time of the Essence....................................................24

20.  Variation and Waiver...................................................24

21.  Execution in Counterparts; Severability................................24

22.  Governing Law and Jurisdiction; Process Agent;
     Appropriate Forum......................................................25

23.  Exclusion of Liability.................................................25

                                      ii
<PAGE>

SCHEDULE 1 SPECIFIED OFFICES OF THE AGENTS..................................26
SCHEDULE 2 REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND
           REGISTRATION OF THE CURRENT ISSUER NOTES.........................27
EXECUTION PAGE..............................................................31

                                     iii
<PAGE>

THIS AGREEMENT is made on 26 May 2004

BETWEEN:

(1)    GRANITE MORTGAGES 04-2 PLC (registered number 5057377), a public
       limited company incorporated under the laws of England and Wales whose
       registered office is Fifth Floor, 100 Wood Street, London EC2V 7EX as
       Current Issuer;

(2)    CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
       EC4Y 0PA in its capacity as Principal Paying Agent;

(3)    CITIBANK, N.A., acting through its office at Global Agency and Trust,
       111 Wall Street, 14th Floor, New York, N.Y. 10043, U.S.A. in its
       capacity as US Paying Agent;

(4)    CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
       EC4Y 0PA in its capacity as Agent Bank;

(5)    CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
       EC4Y 0PA in its capacity as Registrar;

(6)    CITIBANK, N.A., acting through its office at 5 Carmelite Street, London
       EC4Y 0PA in its capacity as Transfer Agent; and

(7)    THE BANK OF NEW YORK, acting through its office at 48th Floor, One
       Canada Square, London E14 5Al at in its capacity as Note Trustee.

WHEREAS:

By a resolution of a duly authorised Board of Directors of the Current Issuer
passed on 19 May 2004, the Current Issuer authorised the creation and issue of
the Current Issuer Notes constituted by the Current Issuer Trust Deed and
secured by the Current Issuer Deed of Charge.

IT IS AGREED as follows:

1.     Definitions and Interpretation

1.1    The provisions of:

       (a)  the Master Definitions Schedule as amended and restated by (and
            appearing as Appendix 1 to) the Master Definitions Schedule Eighth
            Amendment Deed made on 26 May 2004 between, among others, the
            Seller, Funding and the Mortgages Trustee, and

       (b)  the Issuer Master Definitions Schedule signed for the purposes of
            identification by Sidley Austin Brown & Wood and Allen & Overy LLP
            on 26 May 2004,

                                      1
<PAGE>

           (as the same have been and may be amended, varied or supplemented
           from time to time with the consent of the parties hereto) are
           expressly and specifically incorporated into and shall apply to
           this Agreement.

           The Issuer Master Definitions Schedule specified above shall
           prevail to the extent that it conflicts with the Master Definitions
           Schedule.

1.2    Where the context permits, references in this agreement to a "Current
       Issuer Note" shall mean, while any of the Current Issuer Notes are
       represented by a Global Note Certificate, such Global Note Certificate,
       and while any of the Current Issuer Notes are represented by one or
       more Individual Note Certificates, such Individual Note Certificates.

1.3    Where the context permits, references in this agreement to the "Holder"
       of a Current Issuer Note means the person in whose name such Current
       Issuer Note is for the time being registered in the Register (or, in
       the case of a joint holding, the first named thereof) and "Noteholder"
       shall be construed accordingly.

2.     Appointment of the Agents

2.1    Appointment: Upon and subject to the terms of this Agreement, the
       Current Issuer and, for the purposes of Clause 11 (Agents to act for
       Note Trustee) only, the Note Trustee hereby appoint, for the purposes
       specified in, and to carry out their respective duties under, this
       Agreement and under the Current Issuer Conditions on a several but not
       joint basis:

       (a)  the Principal Paying Agent acting through its Specified Office as
            principal paying agent in respect of the Reg S Notes;

       (b)  the US Paying Agent acting through its Specified Office as paying
            agent in the United States in respect of the US Notes;

       (c)  the Agent Bank acting through its Specified Office as agent bank
            for the purpose of determining interest payable in respect of the
            Current Issuer Notes;

       (d)  the Registrar acting through its Specified Office as registrar for
            the Current Issuer Notes; and

       (e)  the Transfer Agent acting through its Specified Office as transfer
            agent for the Current Issuer Notes.

2.2    Obligations of Agents: The obligations of the Agents under this
       Agreement shall be several and not joint.

2.3    Acceptance of appointment by Paying Agents and Agent Bank: Each of the
       Principal Paying Agent, the US Paying Agent and the Agent Bank accepts
       its appointment as agent of the Current Issuer and, for the purpose of
       Clause 11 (Agents to act for Note Trustee) only, the Note Trustee in
       relation to the Current Issuer Notes and agrees to comply with the
       provisions of this Agreement and to perform its duties under the
       Current Issuer Conditions.

2.4    Acceptance of appointment by Registrar and Transfer Agent: Each of the
       Registrar

                                      2
<PAGE>

       and the Transfer Agent accepts its appointment as agent of the Current
       Issuer and, for the purpose of Clause 11 (Agents to act for Note
       Trustee) only, the Note Trustee in relation to the Current Issuer Notes
       and agrees to comply with the provisions of this Agreement and to
       perform its duties under the Current Issuer Conditions.

3.     The Current Issuer Notes; Authentication

3.1    Global Note Certificates: The US Notes will be initially offered and
       sold pursuant to a Registration Statement filed with the SEC. Each
       class of the US Notes will be issued in fully registered global form
       and be initially represented by a Global Note Certificate and which, in
       aggregate, will represent the aggregate Principal Amount Outstanding of
       the US Notes. The Reg S Notes will be initially offered and sold
       outside the United States to non-US persons pursuant to Reg S. Each
       class of the Reg S Notes will be issued in fully registered global form
       and be initially represented by a Global Note Certificate and which, in
       aggregate, will represent the aggregate Principal Amount Outstanding of
       the Reg S Notes. Each Global Note Certificate shall be substantially in
       the respective forms set out in Schedule 1 (Forms of Global Note
       Certificates) to the Current Issuer Trust Deed. The Global Note
       Certificates shall be executed manually or in facsimile by an
       Authorised Signatory of the Current Issuer and authenticated manually
       by or on behalf of the Registrar on the Closing Date.

3.2    Individual Note Certificates: The Global Note Certificates will be
       exchangeable for Individual Note Certificates in the circumstances
       described therein. If the Current Issuer is required to deliver
       Individual Note Certificates pursuant to the terms of the relevant
       Global Note Certificate and the Current Issuer Trust Deed, each
       Individual Note Certificate shall:

       (a)  be printed or typewritten in accordance with all applicable legal
            and stock exchange requirements;

       (b)  be in substantially the form set out in Schedule 2 (Forms of
            Individual Note Certificates) to the Current Issuer Trust Deed;

       (c)  be in registered form and, in each case, in an Authorised
            Denomination;

       (d)  bear a unique serial number; and

       (e)  be executed manually or in facsimile by an Authorised Signatory of
            the Current Issuer and authenticated manually by or on behalf of
            the Registrar.

3.3    Facsimile signatures on Note Certificates: The Current Issuer may use
       for the purposes of executing any Note Certificate, the facsimile
       signature of any person who at the date of this Agreement was duly
       authorised to sign the same on behalf of the Current Issuer, even if at
       the time of issue of such Note Certificate, such person no longer holds
       (for whatever reason including death) the relevant office and any Note
       Certificate so executed and authenticated will be valid and binding
       obligations of the Current Issuer. No Note Certificate representing a
       Current Issuer Note shall be valid for any purpose until it has been
       authenticated by or on behalf of the Registrar in accordance with this
       Agreement and the Current Issuer Trust Deed.

3.4    Authentication and Deposit of Global Note Certificates: The Current
       Issuer shall, on

                                      3
<PAGE>

       or prior to the Closing Date, deliver each unauthenticated Global Note
       Certificate to or to the order of the Registrar for authentication in
       accordance with Clause 3.1 (Global Note Certificates). The Registrar
       shall, on or about the Closing Date, authenticate each Global Note
       Certificate in accordance with Clause 3.1 (Global Note Certificates).
       The Euro Global Note Certificates and the Sterling Global Note
       Certificates shall be registered in the name of Citivic Nominees
       Limited as nominee for, and shall be deposited on or about the Closing
       Date with, the Common Depositary. The Dollar Global Note Certificates
       shall be registered in the name of Cede & Co. as nominee of DTC, and
       shall be deposited on or about the Closing Date with, the DTC
       Custodian. The Current Issuer shall also arrange, on written request,
       for such unauthenticated Global Note Certificates as are required to
       enable the Registrar and Transfer Agent to perform their obligations
       under Clause 6 (Replacement Note Certificates) and Clause 9 (Transfers
       of Current Issuer Notes) to be made available to or to the order of the
       Registrar from time to time. Participants in DTC, Euroclear and
       Clearstream, Luxembourg shall have no rights under this Agreement with
       respect to the Global Note Certificates and DTC, Euroclear,
       Clearstream, Luxembourg or their respective nominees may be treated by
       the Current Issuer or any Agent as the absolute owner of each Global
       Note Certificate for all purposes under this Agreement. Notwithstanding
       the foregoing, nothing in this Agreement shall impair, as between DTC,
       Euroclear and Clearstream, Luxembourg and their respective
       participants, the operation of customary practices governing the
       exercise of the rights of a Holder of any Current Issuer Note.

3.5    Availability of Individual Note Certificates: If the Current Issuer is
       required to deliver Individual Note Certificates pursuant to the terms
       of the Global Note Certificates (or either of them) and the Current
       Issuer Trust Deed, the Current Issuer shall promptly arrange for a
       stock of Individual Note Certificates (both bearing and not bearing the
       Regulation S Legend, and, in either case, unauthenticated and with the
       names of the registered holders left blank but otherwise complete and
       executed on behalf of the Current Issuer) to be made available to or to
       the order of the Registrar by the date falling 30 days after the
       occurrence of the relevant event as set out in Clause 3.2 (Individual
       Note Certificates) of the Current Issuer Trust Deed for authentication
       in accordance with Clause 3.2 (Individual Note Certificates). The
       Current Issuer shall also arrange for such Individual Note Certificates
       as are required to enable the Registrar and the Transfer Agent to
       perform their respective obligations under Clause 5 (Exchanges of
       Global Note Certificates and Delivery of Individual Note Certificates),
       Clause 9 (Transfers of Current Issuer Notes) and Clause 6 (Replacement
       Note Certificates) to be made available to or to the order of the
       Registrar and the Transfer Agent from time to time.

4.     Duties of Agents

4.1    Duties of the Agent Bank: The Agent Bank shall perform such duties at
       its Specified Office as are set forth in this Agreement and in the
       Current Issuer Conditions and such other duties as are reasonably
       incidental thereto at the request of the Current Issuer or the
       Registrar or the Paying Agents (or for the purposes of Clause 11
       (Agents to act for Note Trustee), the Note Trustee) and agrees to
       comply with the provisions of Condition 4 (Interest). In particular and
       save as hereinafter provided, the Agent Bank shall:

                                      4
<PAGE>

       (a)  on each Interest Determination Date determine the Rate of Interest
            for each class of Current Issuer Notes for the relevant Interest
            Period and the Interest Amount in respect of each class of Current
            Issuer Notes on the Payment Date falling at the end of such
            Interest Period in each case in accordance with the Current Issuer
            Conditions;

       (b)  promptly following each such Interest Determination Date or as
            soon as practicable (or, in any event, within 2 days) after
            determining the Rate of Interest applicable to each class of
            Current Issuer Notes for any period in accordance with the Current
            Issuer Conditions, cause the Rate of Interest and the Interest
            Amount in respect of each class of Current Issuer Notes and the
            Payment Date falling at the end of the relevant Interest Period to
            be notified to the Current Issuer, the Note Trustee, the Account
            Bank, the Current Issuer Account Bank, the Registrar, the Paying
            Agents, the Current Issuer Cash Manager and the London Stock
            Exchange (or other stock exchange or, as the case may be, listing
            authority that it may be notified of pursuant to Clause 4.2
            (Listing)), specifying the rates upon which the same are based and
            (where relevant) the names of the banks quoting such rates
            provided that the Agent Bank shall make such determination and
            calculations in relation to each class of Current Issuer Notes as
            provided in Condition 4 (Interest) of the Current Issuer Notes;

       (c)  cause notice of the Rate of Interest and Interest Amounts in
            respect of each class of Current Issuer Notes for each Interest
            Period and the related Payment Date to be notified to the London
            Stock Exchange or any other stock exchange or, as the case may be,
            listing authority that it may be notified of pursuant to Clause
            4.2 (Listing) and to be published in accordance with the Current
            Issuer Conditions;

       (d)  determine the Rate of Interest in respect of each class of Current
            Issuer Notes in accordance with Condition 4(C) (Rates of Interest)
            and notify the Funding GIC Provider of the Rates of Interest which
            shall apply for the relevant Interest Period;

       (e)  save as expressly provided otherwise carry out all other relevant
            calculations (if any) under the Current Issuer Conditions; and

       (f)  maintain such records of the quotations obtained and all rates
            determined and all calculations made by it and make such records
            available for inspection at all reasonable times by the Current
            Issuer, the Current Issuer Cash Manager, the other Agents and the
            Note Trustee.

4.2    Listing: The Current Issuer Notes, on issue, are expected to be
       admitted to the Official List of the UK Listing Authority and to be
       admitted to trading on the London Stock Exchange. The Current Issuer
       will advise the Agent Bank and the Note Trustee in writing if such
       listing is withdrawn or if the Current Issuer Notes become listed by
       any other listing authority or, as the case may be, admitted to trading
       on any other stock exchange.

4.3    Duties of the Registrar: The Registrar and the Transfer Agent shall
       hold or shall procure the holding in safe custody of any
       unauthenticated Global Note Certificates

                                      5
<PAGE>

       delivered to it in accordance with Clause 3.4 (Authentication, and
       Deposit of Global Note Certificates) and any Individual Note
       Certificates delivered to it in accordance with Clause 3.5
       (Availability of Individual Note Certificates) and shall ensure that
       such Global Note Certificates and Individual Note Certificates are
       authenticated and delivered only in accordance with the terms of this
       Agreement, the Current Issuer Trust Deed, the Global Note Certificates
       and the Current Issuer Conditions.

4.4    Authority to authenticate: Each of the Registrar, the Transfer Agent or
       their designated agent is authorised and instructed by the Current
       Issuer to authenticate the Note Certificates as may be required to be
       authenticated hereunder by the signature of any of its officers or any
       other person duly authorised for the purpose by the Registrar or (as
       the case may be) the Transfer Agent.

5.     Exchanges of Global Note Certificates and Delivery of Individual Note
       Certificates

5.1    Exchange of Global Note Certificates for Individual Note Certificates
       and Delivery of Individual Note Certificates: A Global Note Certificate
       may only be exchanged for Individual Note Certificates in the
       circumstances set forth in the Global Note Certificate and set out in
       Clause 3.3 (Individual Note Certificates) of the Current Issuer Trust
       Deed. If any Global Note Certificate becomes exchangeable for
       Individual Note Certificates in accordance with its terms, the
       Registrar shall, subject to its having received any certificates
       required by the terms of the relevant Global Note Certificate, against
       surrender of such Global Note Certificate to it or to its order,
       authenticate and deliver in accordance with this Agreement, the Global
       Note Certificates, the Current Issuer Conditions and the Current Issuer
       Trust Deed, Individual Note Certificates, provided that in no
       circumstances shall the aggregate principal amount of such Individual
       Note Certificates exceed the aggregate principal amount of the relevant
       Global Note Certificate. The Individual Note Certificates so issued in
       exchange for any Global Note Certificate shall be issued in such names
       as the DTC Custodian or the Common Depositary, as the case may be,
       (based on the instructions of DTC, Euroclear and Clearstream,
       Luxembourg) shall instruct the Registrar and the Registrar shall, in
       accordance with this Agreement, the Global Notes, the Current Issuer
       Conditions and the Current Issuer Trust Deed, deliver or cause to be
       delivered to the persons designated in such instructions Individual
       Note Certificates of the relevant class in the appropriate principal
       amounts and the Registrar will enter the names and addresses of such
       persons on the Register. Individual Note Certificates issued in
       exchange for a Reg S Global Note Certificate pursuant to this Clause
       5.1 (Exchange of Global Note Certificates for Individual Note
       Certificates) shall bear the Regulation S Legend and shall be subject
       to all restrictions on transfer contained therein to the same extent as
       the Global Note Certificate so exchanged.

5.2    Exchange of Global Note Certificates: Global Note Certificates may also
       be exchanged or replaced, in whole or in part, as provided in Clause 6
       (Replacement Note Certificates). Every Global Note Certificate
       authenticated and delivered in exchange for, or in lieu of, another
       Global Note Certificate or any portion thereof, pursuant to Clause 6
       (Replacement Note Certificates) hereof, shall be authenticated and
       delivered in the form of, and shall be, a Global Note Certificate. A
       Global Note Certificate may not be exchanged for another Global Note
       Certificate other than as provided in this Clause 5 (Exchanges of
       Global Note Certificates and Delivery of

                                      6
<PAGE>

       Individual Note Certificates).

6.     Replacement Note Certificates

6.1    Delivery of Replacements: Subject to and in accordance with this Clause
       6 (Replacement Note Certificates) and Condition 13 (Replacement of
       Notes) and receipt of replacement Global Note Certificates and/or
       Individual Note Certificates (as the case may be), the Registrar or the
       Transfer Agent, as the case may be shall, upon and in accordance with
       the instructions of the Current Issuer (which instructions may, without
       limitation, include such terms as to the payment of expenses and as to
       evidence, security and indemnity as the Current Issuer, the Transfer
       Agent and the Registrar may reasonably require and otherwise as
       required by Condition 13 (Replacement of Notes), as necessary),
       complete, authenticate and deliver, or procure the authentication and
       delivery on their behalf of, a Global Note Certificate or, as the case
       may be, an Individual Note Certificate, as a replacement for (and being
       a Current Issuer Note in the same form as) the relevant Global Note
       Certificate or, as the case may be, Individual Note Certificate which
       the Current Issuer has determined to issue as a replacement for any
       Global Note Certificate or Individual Note Certificate which has been
       mutilated or defaced or which is alleged to have been destroyed, stolen
       or lost and the Registrar shall, in addition, as promptly as is
       practicable, enter such details on the Register; provided, however,
       that neither the Registrar nor the Transfer Agent shall deliver any
       Global Note Certificate or Individual Note Certificate as a replacement
       for any Global Note Certificate or Individual Note Certificate which
       has been mutilated or defaced otherwise than against surrender of the
       same and shall not issue any replacement Global Note Certificate or
       Individual Note Certificate until the applicant has furnished the
       Current Issuer, Registrar or Transfer Agent, as the case may be, with
       such evidence and indemnity as the Current Issuer and the Transfer
       Agent or the Registrar (as the case may be) may reasonably require and
       has paid such costs and expenses as may be incurred in connection with
       such replacement.

6.2    Replacements to be numbered: Each replacement Global Note Certificate
       or Individual Note Certificate delivered hereunder shall bear a unique
       serial number.

6.3    Cancellation and destruction: Each of the Registrar and the Transfer
       Agent, as the case may be, shall cancel and destroy each mutilated or
       defaced Note Certificate surrendered to it in respect of which a
       replacement has been delivered and the Registrar shall, in addition, as
       promptly as is practicable, enter such details on the Register.

6.4    Notification: The Registrar or the Transfer Agent, as the case may be,
       shall notify the Current Issuer, the other Agents and the Note Trustee
       of the delivery by it in accordance herewith of any replacement Note
       Certificate, specifying the serial number thereof and the serial number
       (if any and if known) of the Note Certificate which it replaces and
       confirm (if such is the case) that the Note Certificate which it
       replaces has been cancelled or destroyed.

7.     Payments to the Paying Agents

7.1    Current Issuer to pay the Paying Agents: In order to provide for the
       payment of interest and principal in respect of the Current Issuer
       Notes as the same becomes due and payable in accordance with the
       Current Issuer Conditions and the Current Issuer

                                      7
<PAGE>

       Trust Deed, the Current Issuer shall pay to the Paying Agents or
       otherwise cause the Paying Agents to receive on or before the date on
       which such payment becomes due, an amount which is equal to the amount
       of principal and interest then falling due in respect of the Current
       Issuer Notes on such Payment Date.

7.2    Manner and Time of Payment: The Current Issuer shall, not later than
       10.00 a.m. (London time) or, in the case of any payment in dollars,
       10.00 a.m. (New York time) on each Payment Date, or other date on which
       any payment of principal and interest in respect of the Current Issuer
       Notes becomes due, unconditionally pay or cause to be unconditionally
       paid to the Paying Agents by credit transfer such amounts in sterling,
       euro or dollars, as the case may be, in immediately available funds or,
       as the case may be, same day freely-transferable funds as may be
       required for the purpose of paying interest and (to the extent
       applicable) principal under the Current Issuer Notes (after taking
       account of any cash then held by the Paying Agents and available for
       the purpose), such amounts to be paid to the credit of such accounts of
       the Paying Agents with such banks (in the case of sterling and euro
       payments, in London and in the case of dollar payments, New York) as
       shall be notified to the Current Issuer, the Current Issuer Cash
       Manager and to the Note Trustee by the Paying Agents in writing not
       less than two weeks before the first payment is due to be made to the
       Noteholders. Each Paying Agent shall notify the Current Issuer, the
       Current Issuer Cash Manager and/or the Note Trustee in writing, 15
       Business Days prior to any change of those accounts, or any of them.

7.3    Notification of Payment by Current Issuer: The Current Issuer shall
       procure that each bank or other person effecting payment for it in
       accordance with Clause 7.2 (Manner and Time of Payment) shall by not
       later than 2.00 p.m. (Local time) on the second Business Day before the
       due date of each payment under Clause 7.2 (Manner and Time of Payment)
       confirm by tested telex, facsimile or authenticated SWIFT message to
       the Paying Agents that it has issued irrevocable payment instructions
       for the transfer of the relevant sum due to the relevant account of the
       Paying Agents.

7.4    Confirmation of Amounts Payable in respect of the Current Issuer Notes:
       The Current Issuer shall by not later than 2.00 p.m. (Local time) on
       the second Business Day before each Payment Date, or other date on
       which any payment is due under Clause 7.2 (Manner and Time of Payment),
       notify, or procure the notification by the Current Issuer Cash Manager
       or other person on behalf of the Current Issuer to, the Paying Agents,
       the Note Trustee and the Registrar of the amount of interest and/or
       principal (as the case may be) payable to Noteholders in accordance
       with the Current Issuer Conditions in respect of each class of the
       Current Issuer Notes on the Payment Date, or other date in question and
       the apportionment of such amount as between principal and interest. All
       such amounts shall be payable subject to and in accordance with the
       Current Issuer Priority of Payments.

7.5    Exclusion of Liens and Interest: Save as expressly provided otherwise
       in this Agreement, the Paying Agents shall be entitled to deal with
       each amount paid to them under this Clause 7 (Payments to the Paying
       Agents) in the same manner as other amounts paid to them as bankers by
       their customers; provided, however, that:

       (a)  they shall not exercise against the Current Issuer any lien, right
            of set-off or similar claim in respect thereof;

                                      8
<PAGE>

       (b)  they shall not be liable to any person for interest thereon; and

       (c)  funds received by the Paying Agents for the payment of any sums
            due in respect of any Current Issuer Notes shall be segregated
            only to the extent required by law.

7.6    Application by Paying Agents: The Paying Agents shall apply (or direct
       or cause the application of) each amount paid to them under this Clause
       7 (Payments to the Paying Agents) in accordance with Clause 8 (Payments
       to Noteholders) and shall not be obliged to repay any such amount other
       than as provided herein or unless the claim for the relevant payment
       becomes void under the Current Issuer Conditions in which event they
       shall repay to the Current Issuer such portion of such amount as
       relates to such payment, by paying the same by credit transfer in
       sterling, euro or dollars, as the case may be, to such account with
       such bank as the Current Issuer has by notice to the Paying Agents
       specified for the purpose.

7.7    Notification if Funds Not Received on Payment Date: Each Paying Agent
       shall forthwith notify the Current Issuer, the Current Issuer Cash
       Manager, the Note Trustee and the other Agents if it has not, by the
       due date of payment to it specified in Clause 7.2 (Manner and Time of
       Payment), received unconditionally the full amount required for any
       payment.

8.     Payments to Noteholders

8.1    Payments in respect of Current Issuer Notes: Each Paying Agent acting
       through its Specified Office shall make payments of interest and
       principal in respect of the Current Issuer Notes in accordance with the
       Current Issuer Conditions and so long as the Current Issuer Notes are
       evidenced by Global Note Certificates, the terms thereof, provided
       however, that:

       (a)  no Paying Agent will make any payment of interest or principal in
            respect of any class of the Current Issuer Notes in an amount
            which is greater than the amount of interest or principal payable
            in accordance with the Current Issuer Conditions in respect of
            such class of Current Issuer Notes and notified to the Paying
            Agents in accordance with Clause 7.4 (Confirmation of Amounts
            Payable in respect of the Current Issuer Notes);

       (b)  whilst the Current Issuer Notes of any class continue to be
            represented by Global Note Certificates, all payments of principal
            or interest (as the case may be) due in respect of such Current
            Issuer Notes will be payable to, or to the order of, DTC or its
            nominee or Euroclear, Clearstream Luxembourg or their nominee;

       (c)  if any Note Certificate is presented or surrendered for payment to
            any Paying Agent and such Paying Agent has delivered a replacement
            therefor or has been notified that the same has been replaced,
            such Paying Agent shall as soon as is reasonably practicable
            notify the Current Issuer in writing of such presentation or
            surrender and shall not make payment against the same until it is
            so instructed by the Current Issuer and has received the amount to
            be so paid;

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<PAGE>

       (d)  each Paying Agent shall cancel each Note Certificate against
            presentation and surrender of which it has made full payment and
            shall deliver each such Note Certificate so cancelled by it to the
            Registrar;

       (e)  all payments in respect of the Current Issuer Notes will be
            distributed without deduction or withholding for any taxes,
            duties, assessments or other governmental charges of whatever
            nature except as and then only to the extent required by
            applicable law, in which case each Paying Agent shall be entitled
            to make such deduction or withholding from any payment which it
            makes hereunder. If any such deduction or withholding is required
            to be made, then neither the Current Issuer nor any other person
            will be obliged to pay any additional amounts in respect thereof;
            and

       (f)  a Paying Agent shall not be obliged (but shall be entitled) to
            make payments of principal or interest if it has not received the
            full amount of any payment due to it under Clause 7 (Payments to
            the Paying Agents).

8.2    Registrar Notification: The Registrar will notify the Paying Agents,
       not later than five days after each Record Date, of the names of all
       Noteholders appearing in the Register on the Record Date and the
       addresses of such Noteholders to which cheques should be posted and
       whether any Noteholder has elected to receive payments by transfer to a
       bank account and, if so, the relevant details of such bank account and
       the Registrar and the Paying Agents shall make or shall procure that
       payments of interest and principal in respect of the Current Issuer
       Notes will be made in accordance with Condition 6 (Payments) either by
       cheque posted to the address of the Noteholder appearing in the
       Register on the Record Date or, if the Noteholder has so elected in
       accordance with the Current Issuer Conditions, by transfer to the
       relevant dollar, euro or sterling account, as the case may be; provided
       that no payment in respect of any Current Issuer Notes will be made on
       the final date for redemption or payment, or such earlier date as the
       relevant Current Issuer Notes may become repayable or payable, in whole
       unless the Registrar or the Transfer Agent confirms to the Paying
       Agents that the relevant Note Certificate has been surrendered to it.

8.3    Partial Payments: If at any time and for any reason a Paying Agent
       makes a partial payment in respect of any Global Note Certificate or
       any Individual Note Certificate presented for payment to it, such
       Paying Agent shall endorse thereon a statement indicating the amount
       and the date of such payment. In addition, if, on any due date for
       payment, less than the full amount of any principal or interest is paid
       in respect of the Current Issuer Notes, the Registrar will note on the
       Register a memorandum of the amount and date of any payment then made
       and, if a Global Note Certificate or Individual Note Certificate is
       presented for payment in accordance with the Conditions and no payment
       is then made, the date of presentation of such Global Note Certificate
       or Individual Note Certificate.

8.4    Appropriation by Paying Agent: If any Paying Agent makes any payment in
       accordance with Clause 8.1 (Payments in respect of Current Issuer
       Notes), it shall be entitled to appropriate for its own account out of
       the funds received by it under Clause 7.1 (Current Issuer to pay the
       Paying Agents) an amount equal to the amount so paid by it.

8.5    Reimbursement by Current Issuer: If any Paying Agent makes a payment in
       respect

                                      10
<PAGE>

       of the Current Issuer Notes at any time at which the relevant Paying
       Agent has not received the full amount of the relevant payment due to
       it under Clause 7.1 (Current Issuer to pay the Paying Agents) and that
       Paying Agent is not able out of the funds received by it under Clause
       7.1 (Current Issuer to pay the Paying Agents) to reimburse such Paying
       Agent therefor by appropriation under Clause 8.4 (Appropriation by
       Paying Agent), the Current Issuer shall from time to time on written
       demand pay to that Paying Agent for account of such Paying Agent:

       (a)  the amount so paid out by such Paying Agent and not so reimbursed
            to it; and

       (b)  interest on such amount from the date on which such Paying Agent
            made such payment until the date of reimbursement of such amount,

       provided, however, that any payment under paragraph (a) above shall
       satisfy pro tanto the Current Issuer's obligations under Clause 7.1
       (Current Issuer to pay the Paying Agents) and provided, further,
       that interest shall accrue for the purpose of paragraph (b) (as
       well after as before judgment) on the basis of a year of 365 days
       and the actual number of days elapsed and at a rate per annum
       specified by the Paying Agents as reflecting its cost of funds for
       the time being in relation to the unpaid amount.

9.     Transfers of Current Issuer Notes

9.1    Authentication and Delivery of Individual Note Certificates: The
       Registrar shall authenticate and deliver, or cause the Transfer Agent
       or other designated agent to authenticate and deliver, any Individual
       Note Certificate issued upon a transfer in accordance with this
       Agreement and the Current Issuer Conditions.

9.2    Maintenance of Register: The Registrar shall maintain the Register at
       its Specified Office or at such other place as the Note Trustee may
       approve in writing, in accordance with the Current Issuer Conditions.
       The Register shall show the aggregate Principal Amount Outstanding of
       each Current Issuer Note, the serial numbers thereof and the respective
       dates of issue of the related Note Certificate(s) and all subsequent
       transfers, cancellations and replacements thereof and the names and
       addresses of the initial holders thereof and the dates of all transfers
       and changes of ownership thereto and the names and addresses of all
       subsequent holders of such Note Certificates. The Registrar shall make
       the Register available to the Current Issuer, the Current Issuer Cash
       Manager, the Note Trustee, the other Agents or any person authorised by
       any of them at all reasonable times during its office hours for their
       inspection and for the taking of copies thereof or extracts therefrom
       and the Registrar shall deliver to such persons all such lists of
       Noteholders, their addresses and holdings as they may request.

9.3    Registration of transfers in the Register: The Registrar shall make
       available forms of transfer and receive requests for the transfer of
       Current Issuer Notes and shall make the necessary entries in the
       Register to record all transfers in each case subject to and in
       accordance with the Current Issuer Notes, the Current Issuer
       Conditions, the Regulations and the Current Issuer Trust Deed. In
       particular the Registrar shall, subject to and in accordance with the
       Current Issuer Conditions and the Regulations, within such period of
       time as is set out in the Current Issuer Conditions after the receipt
       by it of (or the receipt by it of notification from the Transfer Agent
       of delivery to it of) the relevant Note Certificates duly endorsed for
       transfer, authenticate and

                                      11
<PAGE>

       issue the duly dated and completed new Note Certificate(s) and deliver
       the new Note Certificate(s) in the name of the transferee at its
       Specified Office or (at the risk of the transferee) send the new Note
       Certificate(s) by mail to such address as may be specified in the form
       of transfer and make all necessary entries on the Register to record
       such transfer.

9.4    Closed Period: No transfer shall be registered for a period of 15 days
       immediately preceding any due date for payment of principal or interest
       in respect of the Current Issuer Notes or, as the case may be, the due
       date for redemption, or as the case may be, payment of any of the
       relevant Current Issuer Notes.

9.5    Transfer Agent to receive requests for transfers of Current Issuer
       Notes: The Transfer Agent shall receive requests for the transfer of
       Current Issuer Notes in accordance with the Current Issuer Conditions
       and the Regulations and assist, if required, in the issue of new Note
       Certificates to give effect to such transfers and, in particular, upon
       any such request being duly made, shall promptly notify the Registrar
       of:

       (a)  the aggregate principal amount of the Current Issuer Notes to be
            transferred;

       (b)  the name(s) and addressees to be entered on the Register of the
            holder(s) of the new Note Certificate(s) to be issued in order to
            give effect to such transfer; and

       (c)  the place and manner of delivery of the new Note Certificate(s) to
            be delivered in respect of such transfer,

       and shall forward the Note Certificate(s) relating to the Current
       Issuer Note(s) to be transferred (with the relevant form(s) of transfer
       duly completed) to the Registrar with such notification. The Transfer
       Agent shall maintain in safe custody all Note Certificates delivered to
       and held by it hereunder and shall ensure that Current Issuer Notes are
       transferred only in accordance with the Current Issuer Conditions, the
       Regulations, this Agreement and the Current Issuer Trust Deed.

9.6    Regulations: In the event that Individual Note Certificates with
       respect to the Current Issuer Notes are required to be issued, the
       Registrar shall (after consultation with the Current Issuer, the Paying
       Agents, the Transfer Agent and the Note Trustee) promulgate reasonable
       regulations concerning the carrying out of their respective duties (the
       "Regulations"), including the carrying out of transfers and exchanges
       of Current Issuer Notes and the forms and evidence to be proved. All
       such transfers and exchanges will be made subject to the Regulations.
       The initial Regulations are set out in Schedule 2 (Regulations
       concerning the Transfer, Exchange and Registration of the Current
       Issuer Notes) hereto. The Regulations may be changed by the Current
       Issuer with the prior written approval of the Registrar and the Note
       Trustee, which approval shall not be unreasonably withheld or delayed.
       A copy of the current Regulations will be sent by the Registrar to any
       holder of a Current Issuer Note who so requests.

10.    Miscellaneous Duties of the Agents

10.1   Maintenance of Records: Each of the Agents shall maintain records of
       all documents received by it in connection with its duties hereunder
       and shall make such records

                                      12
<PAGE>

       available for inspection at all reasonable times by the Current Issuer,
       the Current Issuer Cash Manager, the Note Trustee and the other Agents
       and, in particular, the Registrar shall:

       (a)  maintain a full and complete record of all Note Certificates
            delivered hereunder and of their exchange, redemption, payment,
            partial payment, cancellation, mutilation, defacement, alleged
            destruction, theft, loss or, as the case may be, replacement
            (including all replacement Note Certificates issued in
            substitution for any lost, stolen, mutilated, defaced or destroyed
            Note Certificates);

       (b)  make such records available for inspection at all reasonable times
            by the Current Issuer, the Current Issuer Cash Manager, the Note
            Trustee and the other Agents; and

       (c)  make copies of this Agreement, the Current Issuer Trust Deed, the
            Current Issuer Deed of Charge, the Master Definitions Schedule and
            the Current Issuer Master Definitions Schedule available for
            inspection at its Specified Office at all reasonable times.

10.2   Cancellation: The Transfer Agent, the Paying Agents or the Registrar
       (as the case may be) shall:

       (a)  procure that all Note Certificates surrendered or delivered to it
            as (i) redeemed in full, (ii) mutilated or defaced, surrendered
            and replaced pursuant to the Current Issuer Conditions, or (iii)
            exchanged, shall forthwith be cancelled on behalf of the Current
            Issuer;

       (b)  shall keep a record of the aggregate principal amount of the
            Current Issuer Notes, and the serial numbers of the Note
            Certificates, which are so cancelled by it; and

       (c)  shall notify the other party or parties (i.e. the Paying Agents,
            the Transfer Agent or the Registrar (as the case may be)) of all
            action taken pursuant to Clause 10.2(a) and 10.2(b).

10.3   Information from Agents: The Agents shall make available to the other
       Agents such information as is reasonably required for the maintenance
       of the records referred to in Clause 10.1 (Maintenance of Records).

10.4   Certifications: Each Paying Agent shall promptly copy to the Current
       Issuer, any other Paying Agent and the Note Trustee any certifications
       received by it in accordance with or otherwise in relation to the
       Current Issuer Notes.

10.5   Forwarding of Communications: Each Agent shall promptly forward to the
       Current Issuer and the Note Trustee a copy of any notice or
       communication addressed to the Current Issuer or the Note Trustee by
       any Noteholder and which is received by such Agent.

10.6   Safe Custody of Note Certificates: Each of the Registrar and the
       Transfer Agent shall maintain in safe custody all Note Certificates
       delivered to it and held by it hereunder.

                                      13
<PAGE>

10.7   Publication and Delivery of Notices: The Registrar shall, upon and in
       accordance with the instructions of the Current Issuer and the Note
       Trustee received at least 10 days before the proposed publication date,
       arrange for the publication and delivery in accordance with the Current
       Issuer Conditions of any notice which is to be given to the Noteholders
       and shall promptly supply two copies thereof to the Note Trustee, the
       other Agents, the London Stock Exchange or other stock exchange on
       which the Current Issuer Notes are then listed, (if any) and any
       Clearing System.

10.8   Destruction: The Registrar may destroy each Note Certificate which has
       been cancelled and delivered to it in accordance with the terms of this
       Agreement, in which case it shall promptly furnish the Current Issuer
       and the Note Trustee, on request, a certificate as to such destruction,
       specifying the reason for such destruction and the serial numbers of
       the relevant Note Certificate.

10.9   Forms of Proxy and Block Voting Instructions: In the event of a Meeting
       (as defined in Schedule 4 (Provisions for Meetings of Noteholders) to
       the Current Issuer Trust Deed) of the Noteholders, the Registrar shall,
       at the request of any Noteholder in accordance with the Current Issuer
       Trust Deed, make available uncompleted and unexecuted Forms of Proxy
       and issue Block Voting Instructions in a form and manner which comply
       with the provisions of the Schedule 4 (Provisions for Meetings of
       Noteholders) to the Current Issuer Trust Deed (except that it shall not
       be required to issue the same less than forty-eight hours before the
       time for which the Meeting or the poll to which the same relates has
       been convened or called). The Registrar shall keep a full record of
       completed and executed Forms of Proxy and Block Voting Instructions
       issued or received by it and will give to the Current Issuer and the
       Note Trustee not less than twenty-four hours before the time appointed
       for any Meeting or adjourned Meeting, full particulars of duly
       completed Forms of Proxy received by it and of all Block Voting
       Instructions issued by it in respect of such Meeting or adjourned
       Meeting.

10.10  Additional Duties of the Registrar: If Individual Note Certificates are
       required to be delivered pursuant to the terms of any Global Note
       Certificate and the Current Issuer Trust Deed, the Registrar shall:

       (a)  five Business Days prior to each Payment Date notify the Current
            Issuer, the Current Issuer Cash Manager and the other Agents of
            the aggregate Principal Amount Outstanding of the relevant Current
            Issuer Notes;

       (b)  receive any document relating to or affecting the title to any
            Individual Note Certificates including all forms of transfer,
            forms of exchange, probates, letters of administration and powers
            of attorney and maintain proper records of the details of all
            documents received;

       (c)  prepare all such lists of the holders of the Individual Note
            Certificates as may be required by the Current Issuer, the Current
            Issuer Cash Manager, the Paying Agents or the Note Trustee or any
            person authorised by any of them;

       (d)  comply with the proper and reasonable requests of the Current
            Issuer with respect to the maintenance of the Register and provide
            the Paying Agents with such information relating to the Individual
            Note Certificates as they may reasonably require for the proper
            performance of their duties; and

                                      14
<PAGE>

       (e)  carry out such other acts as may reasonably be necessary to give
            effect to the Current Issuer Conditions, this Agreement and the
            Regulations. In carrying out its functions the Registrar shall act
            in accordance with the terms of this Agreement, the Regulations,
            the Current Issuer Conditions and the Current Issuer Trust Deed.

       No transfer from a holder of an Individual Note Certificate shall
       be registered for a period of 15 days immediately preceding a
       Payment Date.

10.11  Additional Duties of the Transfer Agent: Subject as provided in and in
       accordance with the Current Issuer Conditions, the Regulations and this
       Agreement or if otherwise requested by the Current Issuer, the Transfer
       Agent shall:

       (a)  on behalf of the Registrar, authenticate Note Certificates in
            accordance with this Agreement upon any transfer of interests in a
            Global Note Certificate, Individual Note Certificate or otherwise
            upon any transfer of any Current Issuer Notes;

       (b)  on behalf of the Registrar, make available forms of transfer,
            Forms of Proxy and any certificates as to beneficial ownership in
            respect of the Current Issuer Notes, receive requests for the
            transfer of Note Certificates, forms of transfer, Forms of Proxy,
            certificates and other evidence, inform the Registrar of the name
            and address of the holder of each such Note Certificate, the
            serial numbers of any Note Certificates, the name and address of
            the relevant person to be inserted in the Register, forward each
            such document to the Registrar and, upon being informed by the
            Registrar that the appropriate entries have been made in the
            Register and all formalities complied with, forthwith upon request
            by the Registrar issue new Note Certificates on behalf of the
            Registrar representing the relevant new Note Certificates to be
            transferred;

       (c)  keep the Registrar informed of all transfers and exchanges and
            give to the Paying Agents and the Registrar such further
            information with regard to its activities hereunder as may
            reasonably be required by them for the proper carrying out of
            their respective duties; and

       (d)  carry out such other acts as may be necessary to give effect to
            the Current Issuer Conditions, this Agreement and the Regulations.

11.    Agents to act for Note Trustee

11.1   Actions of Agents after Notice by Note Trustee of a Note Event of
       Default: At any time after a Note Event of Default in respect of the
       Current Issuer Notes or any of them shall have occurred (which shall
       not have been waived by the Note Trustee or remedied to its
       satisfaction), the Paying Agents, the Agent Bank, the Transfer Agent
       and the Registrar shall, if so required by notice in writing given by
       the Note Trustee to the Current Issuer and the Agents (or such of them
       as are specified in such notice):

       (a)  act thereafter, and until otherwise instructed by the Note
            Trustee, as the Agents of the Note Trustee on the terms mutatis
            mutandis provided herein (with consequential amendments as
            necessary and save that the Note Trustee's liability under any
            provision herein contained for the remuneration

                                      15
<PAGE>

            indemnification and payment of out-of pocket expenses of such
            Agents shall be limited to the amount for the time being held by
            the Note Trustee on the trusts of the Current Issuer Trust Deed
            which is available to be applied by the Note Trustee for such
            purpose) and thereafter hold all Note Certificates and all sums,
            documents and records held by them in their respective capacities
            in respect of the Current Issuer Notes on behalf of the Note
            Trustee; and/or

       (b)  deliver up all Note Certificates and all sums, documents and
            records held by them in respect of the Current Issuer Notes to the
            Note Trustee or as the Note Trustee shall direct in such notice,
            provided that such notice shall be deemed not to apply to any
            document or record which any Agent is obliged not to release by
            any applicable law or regulation.

11.2   Withdrawal of Notice: The Note Trustee may, at any time if a Note Event
       of Default is remedied to the reasonable satisfaction of the Note
       Trustee during any applicable grace period, by notice in writing to the
       Current Issuer and the relevant Agents, withdraw any notice given by
       the Note Trustee pursuant to Clause 11.1 (Actions of Agents after
       Notice by Note Trustee of a Note Event of Default) whereupon such
       Agents shall act as agents of the Current Issuer in accordance with the
       terms hereof. The withdrawal of any notice given by the Note Trustee
       pursuant to Clause 11.1 (Actions of Agents after Notice by Note Trustee
       of a Note Event of Default) shall not preclude the Note Trustee from
       issuing any other or further notices pursuant to that Clause on any
       subsequent occasion and at any time after the occurrence of a Note
       Event of Default, no notice given by the Note Trustee pursuant to
       Clause 11.1 (Actions of Agents after Notice by Note Trustee of a Note
       Event of Default) shall be withdrawn except at the absolute discretion
       of the Note Trustee.

12.    Fees and Expenses

12.1   Fees: The Current Issuer shall pay to each Agent, during the period
       when any of the Current Issuer Notes remains outstanding, such fees as
       have been agreed in writing between the Current Issuer and each Agent
       in respect of the respective services of each Agent hereunder (together
       with any amounts in respect of value added tax (against production of a
       valid tax invoice)). If any agent shall cease to be an Agent hereunder,
       it shall repay to the Current Issuer, the unearned portion, calculated
       on a pro rata basis of the said fees.

12.2   Front-end Expenses: The Current Issuer shall after receipt of an
       account of such expenses reimburse each Agent for all reasonable
       out-of-pocket expenses incurred by it in the negotiation, preparation
       and execution of this Agreement and for all reasonable expenses
       (including, without limitation, reasonable legal fees and any
       communication, courier, postage and other out-of-pocket expenses)
       properly incurred in connection with its services hereunder (together
       with any amounts in respect of value added tax (against production of a
       valid tax invoice)) provided that such expenses shall not have been
       incurred as a result of the Agent's negligence, wilful misconduct or
       bad faith, other than such costs and expenses as are separately agreed
       to be reimbursed out of the fees payable under Clause 12.1 (Fees).

12.3   Taxes and Expenses Occasioned by Default: The Current Issuer shall pay
       all stamp, registration and other similar taxes, duties and
       governmental levies of whatsoever nature (including any interest and
       penalties thereon or in connection therewith) which

                                      16
<PAGE>

       are payable upon or in connection with the execution and delivery of
       this Agreement.

12.4   Payment: All amounts to be paid by the Current Issuer to any Agent
       under this Clause 12 (Fees and Expenses) shall only be payable in
       accordance with and subject to the Current Issuer Priority of Payments
       which is applicable to the Current Issuer at the time of payment.

13.    Terms of Appointment

13.1   Rights and Powers of the Paying Agents:

       (a)  The Paying Agents shall (except as ordered by a court of competent
            jurisdiction or as required by law) in connection with their
            services hereunder (whether or not the relevant Current Issuer
            Note shall be overdue and notwithstanding any notice to the
            contrary or writing shown thereon or any notice of previous loss
            or theft or of trust or other interest therein (other than a duly
            executed form of transfer)) be entitled to treat the registered
            holder of any Current Issuer Note as the absolute owner of such
            Current Issuer Note for all purposes and (save as expressly
            provided hereunder) make payments thereon.

       (b)  Each Agent may in connection with its services hereunder:

            (i)    rely upon the terms of any notice, communication or other
                   document reasonably believed by it to be genuine;

            (ii)   engage and pay for the advice or services of any lawyers or
                   other experts (being an appointee who shall have been
                   previously approved in writing by the Note Trustee) whose
                   advice or services it considers necessary and rely upon any
                   written advice so obtained (and such Agent shall be
                   protected and shall incur no liability as against the
                   Current Issuer in respect of any action taken, or suffered
                   to be taken in good faith, in accordance with such advice
                   except to the extent that such liability arises out of any
                   breach of contract, bad faith, misconduct or negligence on
                   the part of such Agent);

            (iii)  assume that the terms of each Global Note Certificate and
                   Individual Note Certificate as issued are correct;

            (iv)   refer any question relating to the ownership of any Note
                   Certificate, or the adequacy or sufficiency of any evidence
                   supplied in connection with the replacement, transfer or
                   exchange of any Note Certificate to the Current Issuer for
                   determination by the Current Issuer and in good faith
                   conclusively rely upon any determination so made; and

            (v)    whenever in the administration of this Agreement it shall
                   deem it desirable that a matter be proved or established
                   prior to taking, suffering or omitting any action
                   hereunder, in the absence of bad faith or negligence or
                   wilful misconduct on its part, accept a certificate signed
                   by any person duly authorised on behalf of the Current
                   Issuer as to any fact or matter prima facie within the
                   knowledge of the Current Issuer as sufficient evidence
                   thereof.

                                      17
<PAGE>

13.2   Provision of Specimen Signatures: The Current Issuer will supply the
       Paying Agents, the Transfer Agent and the Registrar with the names and
       specimen signatures of its Authorised Signatories.

13.3   Extent of Duties: Each Agent shall only be obliged to perform the
       duties set out herein and such other duties as are necessarily
       incidental thereto. No Agent shall (i) be under any fiduciary duty
       towards or have any relationship of agency or trust for or with any
       person other than the Current Issuer and (to the extent expressly
       provided herein only) the Note Trustee (ii) be responsible for or
       liable in respect of the authorisation, validity or legality or
       enforceability of any Current Issuer Note or any Note Certificate
       (other than in respect of the authentication of Note Certificates by it
       in accordance with this Agreement) or any act or omission of any other
       person including, without limitation, any other Agent (except to the
       extent that such liability arises out of any breach of contract, bad
       faith, misconduct or negligence on the part of any such Agent), (iii)
       be under any obligation towards any person other than the Current
       Issuer, the other Agents and the Note Trustee or (iv) assume any
       relationship of agency or trust for or with any Noteholder except that
       funds received by the Paying Agents for the payment of any sums due in
       respect of any Current Issuer Notes shall be held by them on trust for
       the relevant Noteholders to the extent required by the Trust Indenture
       Act until the expiration of the relevant prescription period under the
       Current Issuer Trust Deed.

13.4   Freedom to Transact: Each Agent may purchase, hold and dispose of
       beneficial interests in a Current Issuer Note and may enter into any
       transaction (including, without limitation, any depository, trust or
       agency transaction) with the Current Issuer or any holders or owners of
       any Current Issuer Notes or with any other party hereto in the same
       manner as if it had not been appointed as the agent of the Current
       Issuer or the Note Trustee in relation to the Current Issuer Notes.

13.5   Indemnity in favour of the Agents: The Current Issuer agrees to
       indemnify each Agent for, and to hold such Agent harmless against, any
       loss, liability or expense incurred by it arising out of, or in
       connection with, its acting as agent of the Current Issuer or the Note
       Trustee in relation to the Current Issuer Notes provided that such
       loss, liability and/or expense has not arisen as a result of its own
       fraud, negligence, wilful misconduct or breach of contract. No
       termination of this Agreement shall affect the obligations created by
       this Clause 13.5 (Indemnity in favour of the Agents).

13.6   Indemnity in favour of the Current Issuer: Each Agent shall severally
       indemnify the Current Issuer and, for the purposes of Clause 11 (Agents
       to act for Note Trustee), the Note Trustee, against any loss,
       liability, reasonable costs and expenses including any claim, action or
       demand which the Current Issuer or Note Trustee may incur or which may
       be made against it as a result of the breach by such Agent of the terms
       of this Agreement or its negligence, breach of contract, bad faith or
       wilful misconduct or that of its officers or employees including any
       failure to obtain and maintain in existence any consent, authorisation,
       permission or licence required by it for the assumption, exercise and
       performance of its powers and duties hereunder. No termination of this
       Agreement shall affect the obligations created by this Clause 13.6
       (Indemnity in favour of the Current Issuer).

                                      18
<PAGE>

14.    No Liability for Consequential Loss

       No Paying Agent shall in any event be liable to the Current Issuer
       or to any other party to the Current Issuer Transaction Documents
       for any special, indirect, punitive or consequential loss or damage
       of any kind whatsoever (including but not limited to lost profits),
       whether or not foreseeable and in each case however caused or
       arising.

15.    Termination of Appointment

15.1   Resignation: Subject to Clause 15.8 (Limitations on Resignation and
       Revocation), each Paying Agent in respect of any or all classes of
       Current Issuer Notes or the Agent Bank, the Registrar or the Transfer
       Agent may resign its appointment upon not less than 60 days' written
       notice to the Current Issuer, the Current Issuer Cash Manager and the
       Note Trustee to that effect, provided, however, that

       (a)  if such resignation would otherwise take effect less than 30 days
            before or after the maturity date or other date for redemption of
            the Current Issuer Notes or any Payment Date in relation to the
            Current Issuer Notes, it shall not take effect until the thirtieth
            day following such date; and

       (b)  in the case of the Registrar, the only remaining Paying Agent with
            its Specified Office in the United Kingdom, the Agent Bank or the
            only remaining Paying Agent with its Specified Office outside the
            United Kingdom, such resignation shall not take effect until a
            successor has been duly appointed in accordance with Clause 15.4
            (Additional and Successor Agents) and notice of such appointment
            has been given to the Noteholders.

15.2   Revocation: Subject to Clause 15.7 (Maintenance of a Paying Agent in
       the European Union) and Clause 15.8 (Limitations on Resignation and
       Revocation), the Current Issuer may at any time with the prior written
       consent of the Note Trustee revoke its appointment of any Agent as its
       agent in relation to the Current Issuer Notes by not less than 60 days'
       written notice to the Note Trustee and such Agent whose appointment is
       to be revoked, which notice shall expire not less than 30 days before a
       Payment Date, provided, however, that in the case of the Registrar, the
       Principal Paying Agent, the Agent Bank or the only remaining Paying
       Agent with its Specified Office outside the United Kingdom, such
       resignation shall not take effect until a successor has been duly
       appointed consistently with Clause 15.4 (Additional and Successor
       Agents) and notice of such appointment has been given to the
       Noteholders.

15.3   Automatic Termination: The appointment of any Agent shall terminate
       forthwith if at any time:

       (a)  such Agent becomes incapable of acting;

       (b)  a secured party takes possession, or a receiver, manager or other
            similar officer is appointed, of the whole or any part of the
            undertaking, assets and revenues of such Agent;

       (c)  such Agent admits in writing its insolvency or inability to pay
            its debts as they fall due or suspends payments of its debts;

                                      19
<PAGE>

       (d)  an administrator or liquidator of such Agent or the whole or any
            part of the undertaking, assets and revenues of such Agent is
            appointed (or application for any such appointment is made);

       (e)  such Agent takes any action for a readjustment or deferment of any
            of its obligations or makes a general assignment or an arrangement
            or composition `with or for the benefit of its creditors or
            declares a moratorium in respect of any of its indebtedness;

       (f)  an order is made or an effective resolution is passed for the
            winding up of such Agent; or

       (g)  any event occurs which has an analogous effect to any of the
            foregoing in relation to such Agent.

       On the occurrence of any of the above, the relevant Agent shall
       forthwith notify the Current Issuer, the Current Issuer Cash
       Manager, the Note Trustee and the Paying Agents. If the appointment
       of the Registrar or the only remaining Principal Agent with a
       Specified Office in the United Kingdom, the Agent Bank or the only
       remaining Paying Agent with its Specified Office outside of the
       United Kingdom is terminated in accordance with the preceding
       sentence, the Current Issuer shall forthwith appoint a successor in
       accordance with Clause 15.4 (Additional and Successor Agents).

15.4   Additional and Successor Agents: The Current Issuer may with the prior
       written approval of the Note Trustee appoint a successor principal
       paying agent, US paying agent, agent bank or registrar and additional
       or successor transfer agents or paying agents and shall forthwith give
       notice of any such appointment to the continuing Agents, the
       Noteholders, the Current Issuer Cash Manager and the Note Trustee,
       whereupon the successor or additional agents shall acquire and become
       subject to the same rights and obligations between themselves as if
       they had entered into an agreement in the form mutatis mutandis of this
       Agreement.

15.5   Agent may appoint Successor: If any Agent gives notice of its
       resignation in accordance with Clause 15.1 (Resignation) and by the
       tenth day before the expiration of such notice a successor agent has
       not been duly appointed in accordance with Clause 15.4 (Additional and
       Successor Agents), such Agent may itself, following such consultation
       with the Current Issuer as is practicable in the circumstances and with
       the prior written approval of the Note Trustee and the Current Issuer
       (provided such failure to appoint was not due to default by the Current
       Issuer), appoint as its successor agent any reputable and experienced
       bank or financial institution and give notice of such appointment to
       the Current Issuer, the Note Trustee, the Current Issuer Cash Manager,
       the remaining Agents and the Noteholders.

15.6   Rights of Successor Agent: Upon the execution by the Current Issuer and
       any successor agent of an instrument effecting the appointment of a
       successor agent, such successor agent shall, without any further act,
       deed or conveyance, become vested with all the authority, rights,
       powers, trusts, immunities, duties and obligations of its predecessor
       with like effect as if originally named as the relevant agent herein
       and such predecessor, upon payment to it of the pro rata proportion of
       its administration fee and disbursements then unpaid (if any), shall
       thereupon become obliged to transfer, deliver and pay over, and such
       successor agent shall be entitled to receive, all

                                      20
<PAGE>

       monies, records and documents (including any Note Certificates of the
       relevant class or classes of Current Issuer Notes, if any) held by such
       predecessor hereunder.

15.7   Maintenance of a Paying Agent in the European Union: The Current Issuer
       undertakes that it shall ensure that it maintains a Paying Agent in a
       European Union member state that will not be obliged to withhold or
       deduct tax (i) pursuant to the Directive on the taxation of savings
       adopted by the Council of Economic and Finance Ministers of the
       European Union on 3 June 2003, or (ii) any law implementing or
       complying with, or introduced in order to conform to such Directive.

15.8   Limitations on Resignation and Revocation: Notwithstanding Clause 15.1
       (Resignation) and Clause 15.2 (Revocation):

       (a)  if at any time there should be only one Paying Agent, no
            resignation by or termination of the appointment of the Paying
            Agent shall take effect until a successor paying agent in respect
            of the affected class or classes of Current Issuer Notes approved
            in writing by the Note Trustee has been appointed on terms
            previously approved in writing by the Note Trustee;

       (b)  no resignation by or termination of the appointment of any Paying
            Agent shall take effect if as a result of such resignation or
            termination there would cease to be a Paying Agent in respect of
            the affected class or classes of Current Issuer Notes having a
            Specified Office in London or New York (as the case may be);

       (c)  no appointment or termination of the appointment of a Paying Agent
            shall take effect unless and until notice thereof shall have been
            given to the relevant Noteholders in accordance with the Current
            Issuer Conditions;

       (d)  no resignation by or revocation of the appointment of the Agent
            Bank shall take effect until a new Agent Bank having its Specified
            Office in London has been appointed;

       (e)  no resignation by or termination of the appointment of the
            Registrar shall take effect until a new Registrar having its
            Specified Office in London has been appointed; and

       (f)  the appointment of any additional Paying Agent shall be mutatis
            mutandis on the terms and subject to the conditions of this
            Agreement and each of the parties hereto shall co-operate fully to
            do all such further acts and things and execute any further
            documents as may be necessary or desirable to give effect to the
            appointment of such Paying Agent.

15.9   Effect of Resignation, Revocation and Termination: Upon any resignation
       or revocation taking effect under Clause 15.1 (Resignation) or Clause
       15.2 (Revocation) or any termination under Clause 15.3 (Automatic
       Termination), the relevant Agent shall:

       (a)  without prejudice to any accrued liabilities and obligations, be
            released and discharged from any further obligations under this
            Agreement (save that it shall remain entitled to the benefit of,
            and subject to, Clauses 12 (Fees and

                                      21
<PAGE>

            Expenses), Clause 13 (Terms of Appointment) and Clause 15
            (Termination of Appointment));

       (b)  repay to the Current Issuer such part of any fee paid to it in
            accordance with Clause 12.1 (Fees) as shall relate to any period
            thereafter;

       (c)  deliver to the Current Issuer and to its successor agent a copy,
            certified as true and up-to-date by an officer of such Agent of
            the records maintained by it pursuant to this Agreement;

       (d)  forthwith transfer all monies and papers (including any unissued
            Note Certificates held by it hereunder) to its successor in that
            capacity and provide reasonable assistance to its successor for
            the discharge by it of its duties and responsibilities hereunder;
            and

       (e)  in the case of any Paying Agent, pay to the successor paying agent
            any amount held by it for payment of principal or interest in
            respect of the relevant Current Issuer Notes.

15.10  Change of Specified Office: If any Agent shall determine to change its
       Specified Office (which, in the case of each Paying Agent, may only be
       effected within the same city where each Paying Agent currently has its
       Specified Office), it shall give to the Current Issuer and the Note
       Trustee written notice of such determination giving the address of the
       new Specified Office and stating the date on which such change is to
       take effect, which date shall not be less than 30 days after the date
       of such notice, provided that no such notice shall take effect within
       the period of 30 days before or after any Payment Date. The Current
       Issuer shall, within 40 days of receipt of such notice (unless the
       appointment is pursuant to a revocation or termination under Clause
       15.2 (Revocation) or Clause 15.3 (Automatic Termination) above on or
       prior to the date of such change), give to the Noteholders notice of
       such change as approved by the Note Trustee and of the address of the
       Specified Office in accordance with the Current Issuer Conditions but
       the costs of giving such notice shall be borne by such Agent changing
       its office and not by the Current Issuer.

15.11  Merger: Any legal entity into which any Agent is merged or converted or
       any legal entity resulting from any merger or conversion to which such
       Agent is a party shall, to the extent permitted by applicable law, be
       the successor to such Agent without any further formality, whereupon
       the Current Issuer, the Note Trustee, the other Agents and such
       successor shall acquire and become subject to the same rights and
       obligations between themselves as if they had entered into an agreement
       in the form mutatis mutandis of this Agreement. Written notice of any
       such merger or conversion shall forthwith be given by such successor to
       the Current Issuer, the Note Trustee and the other Agents.

16.    Non-Petition and Limited Recourse

16.1   Limited Recourse: Each party hereto agrees that notwithstanding any
       other provisions hereof, all payments to be made by the Current Issuer
       under this Agreement will be payable only from, and to the extent of,
       the sums paid to, or net proceeds recovered by or on behalf of, the
       Current Issuer or the Note Trustee in respect of the Current Issuer
       Charged Property less any amount which is required to

                                      22
<PAGE>

       be paid to any other person in priority to or in the same priority as
       the relevant party hereto subject to and in accordance with the Current
       Issuer Priority of Payments and there will be no other assets of the
       Current Issuer available for any further payments and following the
       realisation of the Current Issuer Charged Property and the distribution
       of the proceeds thereof in accordance with the Current Issuer Deed of
       Charge none of the parties hereto shall be entitled to take any further
       steps against the Current Issuer to recover any sums due hereunder but
       still unpaid and all outstanding claims in respect of such sums due but
       still unpaid shall be extinguished. The parties hereto look solely to
       such sums and proceeds and the rights of the Current Issuer in respect
       of the Current Issuer Charged Property (net as aforesaid) for payments
       to be made by the Current Issuer. The obligations of the Current Issuer
       to make such payments hereunder will be limited to such sums and the
       proceeds of realisation of the Current Issuer Charged Property (net as
       aforesaid) and the parties hereto will have no further recourse in
       respect thereof.

16.2   Non-Petition: Each of the Agents hereby covenants and agrees with the
       Current Issuer and the Note Trustee that:

       (a)  only the Note Trustee may enforce the security created in favour
            of the Note Trustee by the Current Issuer Deed of Charge in
            accordance with its provisions; and

       (b)  save as provided in the Current Issuer Trust Deed, it shall not
            take any steps for the purpose of recovering any sums due under
            this Agreement or enforcing any rights arising out of this
            Agreement or institute against the Current Issuer or join any
            other person in instituting against the Current Issuer any
            winding-up, administration, reorganisation, liquidation,
            bankruptcy, insolvency or other proceedings of the Current Issuer
            for so long as the Current Issuer Notes are outstanding and until
            two years and one day has elapsed after all amounts outstanding
            under the Current Issuer Secured Obligations have been paid in
            full.

16.3   Payment to Note Trustee: Each of the Agents hereby undertakes with the
       Note Trustee and the Current Issuer that if, whether in the liquidation
       of the Current Issuer or otherwise any payment is made to or amount
       recovered by any Agent otherwise than in accordance with the Current
       Issuer Deed of Charge, the amount so paid or recovered shall be paid by
       such Agent to the Note Trustee.

17.    Notices

       Any notices or other communication or document to be given or delivered
       pursuant to this Agreement to any of the parties hereto shall be
       sufficiently served if sent by prepaid first class post, by hand or by
       facsimile transmission and shall be deemed to be given (in the case of
       facsimile transmission) when despatched or (where delivered by hand) on
       the day of delivery if delivered before 17.00 hours on a business day
       in the place of the addressee or otherwise on the next business day in
       the place of the addressee if delivered thereafter or (in the case of
       first class post) when it would be received in the ordinary course of
       the post and shall be sent:

       (a)  in the case of the Current Issuer, to Granite Mortgages 04-2 plc,
            c/o Fifth Floor, 100 Wood Street, London EC2V 7EX (facsimile
            number 020 7606

                                      23
<PAGE>

            0643) for the attention of: Company Secretary with a copy to
            Northern Rock plc, Northern Rock House, Gosforth, Newcastle upon
            Tyne NE3 4PL (facsimile number 0191 213 2203) for the attention of
            the Group Secretary;

       (b)  in the case of the Note Trustee, to The Bank of New York (London
            Branch) at 48th Floor, One Canada Square, London E14 5AI
            (facsimile number 020 7964 6061/6399) for the attention of: Global
            Structured Products Unit (Corporate Trust);

       (c)  in the case of the Current Issuer Cash Manager to Northern Rock
            plc, Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL
            (facsimile number 0191 213 2203) for the attention of the Group
            Secretary;

       (d)  in the case of any Agent, to it at the address or fax number
            specified against its name in Schedule 1 (Specified Offices of the
            Agents) hereto (or in the case of an Agent not originally a party
            hereto, specified by notice to the parties hereto at the time of
            its appointment) for the attention of the person or department
            specified therein,

       or to such other address or facsimile number or for the attention of
       such other person or entity as may from time to time be notified by any
       party to the others by fifteen days prior written notice in accordance
       with the provisions of this Clause 17 (Notices).

18.    Third Party Rights

       A person who is not a party to this Agreement may not enforce any of
       its terms under the Contracts (Rights of Third Parties) Act 1999, but
       this shall not affect any right or remedy of a third party which exists
       or is available apart from that Act.

19.    Time of the Essence

       Any date or period specified in this Agreement may be postponed or
       extended by mutual agreement among the parties, but as regards any date
       or period originally fixed or so postponed or extended, time shall be
       of the essence.

20.    Variation and Waiver

       No variation or waiver of this Agreement shall be effective unless it
       is in writing and signed by a duly authorised signatory of each party.
       No single or partial exercise of, or failure or delay in exercising,
       any right under this Agreement shall constitute a waiver or preclude
       any other or further exercise of that or any other right.

21.    Execution in Counterparts; Severability

21.1   Counterparts: This Agreement may be executed in any number of
       counterparts (manually or by facsimile) and by different parties hereto
       in separate counterparts, each of which when so executed shall be
       deemed to be an original and all of which when taken together shall
       constitute one and the same instrument.

21.2   Severability: Where any provision in or obligation under this Agreement
       shall be invalid, illegal or unenforceable in any jurisdiction, the
       validity, legality and

                                      24
<PAGE>

       enforceability of the remaining provisions or obligations under this
       Agreement, or of such provision or obligation in any other
       jurisdiction, shall not be affected or impaired thereby.

22.    Governing Law and Jurisdiction; Process Agent; Appropriate Forum

22.1   Governing Law: This Agreement is governed by, and shall be construed in
       accordance with, English law.

22.2   Jurisdiction: The parties hereto irrevocably agree for the benefit of
       the Current Issuer and the Note Trustee that the courts of England are
       to have jurisdiction to settle any suit, action or proceeding, and to
       settle any disputes which may arise out of or in connection with this
       Agreement and, for such purposes, irrevocably submit to the
       jurisdiction of such courts.

22.3   Process Agent: The US Paying Agent irrevocably and unconditionally
       appoints the Principal Paying Agent at its registered office for the
       time being as its agent for service of process in England in respect of
       any proceedings in respect of this Agreement and undertakes that in the
       event of the Principal Paying Agent ceasing so to act it will appoint
       another person with a registered office in London as its agent for
       service of process.

22.4   Appropriate Forum: Each of the parties hereto irrevocably waives any
       objection which it might now or hereafter have to the courts of England
       being nominated as the forum to hear and determine any Proceedings and
       to settle any disputes, and agrees not to claim that any such court is
       not a convenient or appropriate forum.

23.    Exclusion of Liability

       The Note Trustee is a party to this Agreement only to receive the
       benefit of the provisions in this Agreement and has no liability under
       this Agreement.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

                                      25
<PAGE>

                                  SCHEDULE 1
                        SPECIFIED OFFICES OF THE AGENTS

The Principal Paying Agent

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

The US Paying Agent

Citibank, N.A.
Global Agency and Trust
111 Wall Street, 14th Floor
New York N.Y. 10043
U.S.A.

The Agent Bank

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

The Registrar

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

The Transfer Agent

Citibank, N.A.
5 Carmelite Street
London EC4Y 0PA

The Note Trustee

The Bank of New York (London Branch)
48th  Floor
One Canada Square
London E14 5AL

                                      26
<PAGE>

                                  SCHEDULE 2
               REGULATIONS CONCERNING THE TRANSFER, EXCHANGE AND
                   REGISTRATION OF THE CURRENT ISSUER NOTES

1.     The Current Issuer Notes are in their respective Authorised
       Denominations of (GBP)1,000, (GBP)10,000, $1,000, $10,000, (euro)1,000
       or (euro)500,000 depending on the currency of denomination, or in such
       other denominations as the Note Trustee shall determine and notify to
       the relevant Noteholders. Each Dollar Note shall be held in an
       Authorised Dollar Holding, each Sterling Note shall be held in an
       Authorised Sterling Holding and each Euro Note shall be held in an
       Authorised Euro Holding.

2.     Subject to paragraphs 4, 6 and 11 below, a Current Issuer Note may be
       transferred by execution of the relevant form of transfer under the
       hand of the transferor or, where the transferor is a corporation, under
       its common seal or under the hand of two of its officers duly
       authorised in writing. Where the form of transfer is executed by an
       attorney or, in the case of a corporation, under seal or under the hand
       of two of its officers duly authorised in writing, a copy of the
       relevant power of attorney certified by a financial institution in good
       standing or a notary public or in such other manner as the Registrar
       may require or, as the case may be, copies certified in the manner
       aforesaid of the documents authorising such officers to sign and
       witness the affixing of the seal must be delivered with the form of
       transfer. In this Schedule, "transferor" shall, where the context
       permits or requires, include joint transferors and shall be construed
       accordingly.

3.     The Note Certificate issued in respect of a Current Issuer Note to be
       transferred or exchanged must be surrendered for registration, together
       with a duly completed and executed form of transfer (including any
       certification as to compliance with restrictions on transfer included
       in such form of transfer) at the Specified Office of the Registrar or
       the Transfer Agent, together with such evidence as the Registrar or (as
       the case may be) the Transfer Agent may reasonably require to prove the
       title of the transferor and the authority of the persons who have
       executed the form of transfer. The signature of the person effecting a
       transfer or exchange of a Current Issuer Note shall conform to any list
       of duly authorised specimen signatures supplied by the holder of such
       Current Issuer Note or be certified by a financial institution in good
       standing, notary public or in such other manner as the Registrar or the
       Transfer Agent may require.

4.     No Noteholder may require the transfer of a Current Issuer Note to be
       registered during the period of 15 calendar days ending on a Payment
       Date in respect of such Current Issuer Note.

5.     No Noteholder which has executed a Form of Proxy in relation to any
       Meeting may require the transfer of a Current Issuer Note covered by
       such Form of Proxy to be registered until the earlier of the conclusion
       of the Meeting and its adjournment for want of quorum.

6.     The executors or administrator of a deceased holder of a Current Issuer
       Note (not being one of several joint holders) and, in the case of the
       death of one or more of several joint holders, the survivor or
       survivors of such joint holders, shall be the only

                                      27
<PAGE>

       persons recognised by the Current Issuer as having any title to such
       Current Issuer Note.

7.     Any person becoming entitled to any Current Issuer Notes in consequence
       of the death or bankruptcy of the holder of such Current Issuer Notes
       may, upon producing such evidence that he holds the position in respect
       of which he proposes to act under this paragraph or of his title as the
       Registrar or the Transfer Agent shall require (including legal
       opinions), become registered himself as the holder of such Current
       Issuer Notes or, subject to the provisions of these Regulations, the
       Current Issuer Notes and the relevant Current Issuer Conditions as to
       transfer, may transfer such Current Issuer Notes. The Current Issuer,
       the Transfer Agent and the Registrar shall be at liberty to retain any
       amount payable upon the Current Issuer Notes to which any person is so
       entitled until such person shall be registered as aforesaid or shall
       duly transfer such Current Issuer Notes.

8.     Unless otherwise required by him and agreed by the Current Issuer and
       the Registrar, the holder of any Current Issuer Notes shall be entitled
       to receive only one Note Certificate in respect of his holding.

9.     The joint holders of any Current Issuer Note shall be entitled to one
       Note Certificate only in respect of their joint holding which shall,
       except where they otherwise direct, be delivered to the joint holder
       whose name appears first in the Register in respect of the joint
       holding.

10.    Where there is more than one transferee (to hold other than as joint
       holders), separate forms of transfer (obtainable from the specified
       office of the Registrar or the Transfer Agent) must be completed in
       respect of each new holding.

11.    A holder of Current Issuer Notes may transfer all or part of his
       holding provided that both the principal amount of Current Issuer Notes
       transferred and the principal amount of the balance transferred are in
       an amount equal to an Authorised Denomination. Where a holder of
       Current Issuer Notes has transferred part only of his holding comprised
       therein, there shall be delivered to him a new Note Certificate in
       respect of the balance of such holding.

12.    The Current Issuer, the Transfer Agent and the Registrar shall, save in
       the case of the issue of replacement Current Issuer Notes pursuant to
       the Current Issuer Conditions, make no charge to the holders for the
       registration of any holding of Current Issuer Notes or any transfer
       thereof or for the issue of any Current Issuer Notes or for the
       delivery thereof at the Specified Office of the Transfer Agent or the
       Registrar or by uninsured post to the address specified by the holder,
       but such registration, transfer, issue or delivery shall be effected
       against such indemnity from the holder or the transferee thereof as the
       Registrar or the Transfer Agent may require in respect of any tax or
       other duty of whatever nature which may be levied or imposed in
       connection with such registration, transfer, issue or delivery.

13.    Provided a transfer of a Current Issuer Note is duly made in accordance
       with all applicable requirements and restrictions upon transfer and the
       Note Certificate(s) issued in relation to such Current Issuer Note
       transferred are presented to the Transfer Agent and/or the Registrar in
       accordance with the Current Issuer Paying Agency and Agent Bank
       Agreement and these Regulations and subject to unforeseen

                                      28
<PAGE>

       circumstances beyond the control of the Transfer Agent or the Registrar
       arising, the Transfer Agent and the Registrar will, within five
       business days of the request for transfer being duly made, deliver at
       its Specified Office or despatch to the transferee by uninsured post
       (at the request and risk of the transferee) to such address as the
       transferee entitled to the Current Issuer Notes in relation to which
       such Note Certificate is issued may have specified, a Note Certificate
       in respect of which entries have been made in the Register, all
       formalities complied with and the name of the transferee completed on
       the Note Certificate by or on behalf of the Registrar; and, for the
       purposes of this paragraph, "business day" means a day (other than a
       Saturday or a Sunday) on which commercial banks are open for business
       (including dealings in foreign currencies) in the cities in which the
       Registrar and the Transfer Agent have their respective Specified
       Office.

14.    No transfer may be effected unless:

       (a)  such Current Issuer Note is transferred in a transaction that does
            not require registration under the Securities Act and is not in
            violation of the United States Investment Company Act of 1940;

       (b)  such transfer is effected in accordance with the provision of any
            restrictions on transfer specified in the legends (if any) set
            forth on the face of the Note Certificate issued in relation to
            such Current Issuer Note;

       (c)  the transferee delivers to the Registrar or the Transfer Agent a
            form of transfer (including any certification as to compliance
            with restrictions on transfer included in such form of transfer)
            endorsed on the Note Certificate issued in relation to such
            Current Issuer Note; and

       (d)  if the Current Issuer so requests, the Transfer Agent and the
            Registrar receive an opinion of counsel satisfactory to all of
            them.

15.    Except for in connection with the issue of replacement Note
       Certificates pursuant to Clause 6 (Replacement Note Certificates)
       hereof, no charge shall be made to the Noteholders in connection with,
       inter alia,

       (a)  the registration of any holding of Current Issuer Notes; or

       (b)  the transfer of Current Issuer Notes subject to any registration,
            transfer, issue or delivery which may be effected against an
            indemnity from the Noteholder or transferee as any relevant Paying
            Agent or, as the case may be, the Transfer Agent may require in
            respect of any tax or other duty levied or imposed in connection
            with such registration, transfer, issue or delivery.

16.    If Current Issuer Notes are issued upon the transfer, exchange or
       replacement of Note Certificates not bearing the Regulation S Legend
       (as defined below), the Note Certificates so issued shall not bear the
       Regulation S Legend. If Note Certificates are issued upon the transfer,
       exchange or replacement of Note Certificates bearing the Regulation S
       Legend, the Note Certificates so issued shall bear the Regulation S
       Legend. Each Note Certificate issued in exchange therefor shall bear a
       legend (the "Regulation S Legend") in substantially the following form:

                                      29
<PAGE>

       "THIS CURRENT ISSUER NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
       THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
       ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND, AS
       A MATTER OF U.S. LAW, PRIOR TO THE DATE THAT IS 40 DAYS AFTER THE LATER
       OF THE CLOSING DATE AND THE COMMENCEMENT OF THE OFFERING OF THE CURRENT
       ISSUER NOTES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
       IN THE UNITED STATES OR TO A U.S. PERSON (AS DEFINED IN REGULATION S
       UNDER THE SECURITIES ACT) EXCEPT PURSUANT TO AN EXEMPTION FROM THE
       REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
       ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES."

17.    Notwithstanding any provision to the contrary herein, so long as
       Current Issuer Notes are represented by a Global Note Certificate which
       is held by or on behalf of DTC, transfers, exchanges or replacements of
       the Current Issuer Notes represented by such Global Note Certificate
       shall only be made in accordance with the legends relating to DTC set
       forth thereon.

                                      30
<PAGE>

<TABLE>
<CAPTION>
                                              EXECUTION PAGE

The Current Issuer

<S>                                                          <C>
Executed by
GRANITE MORTGAGES 04-2 PLC
as follows:                                                  By
Signed for and on its behalf by one of its duly                   -----------------------------------------------------
authorised attorneys/signatories                                  Duly Authorised Attorney/Signatory

                                                             Name
                                                                  -----------------------------------------------------

The Principal Paying Agent, the Agent Bank,
the Registrar, and the Transfer Agent

Executed by
CITIBANK, N.A.
as follows:                                                  By
Signed for and on its behalf by one of its duly                   -----------------------------------------------------
authorised attorneys/signatories                                  Duly Authorised Attorney/Signatory

                                                             Name
                                                                  -----------------------------------------------------

The US Paying Agent

Executed by
CITIBANK, N.A.
as follows:                                                  By
Signed for and on its behalf by one of its duly                   -----------------------------------------------------
authorised attorneys/signatories                                  Duly Authorised Attorney/Signatory

                                                             Name
                                                                  -----------------------------------------------------

The Note Trustee

Executed by
THE BANK OF NEW YORK
as follows:                                                  By
Signed for and on its behalf by one of its duly                   -----------------------------------------------------
authorised attorneys/signatories                                  Duly Authorised Attorney/Signatory

                                                             Name
                                                                  -----------------------------------------------------
</TABLE>

                                                            31

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