Document:

EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

           THIS EMPLOYMENT AGREEMENT is made effective the 1st day January,
2003, by and between The Avon-Dixon Agency, LLC (the "Company") and Kevin
LaTulip (the "Employee").

           WITNESSETH: That for and in consideration of the sum of One Dollar
($1.00), and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by each of the parties, it is hereby agreed by
and between the parties as follows:

     1. DUTIES. THE COMPANY HEREBY EMPLOYS THE EMPLOYEE AS AN INSURANCE PRODUCER
WITH SUCH DUTIES AS MAY BE ASSIGNED TO THE EMPLOYEE BY THE PRESIDENT OF THE
COMPANY. THE EMPLOYEE SHALL DEVOTE HIS OR HER FULL BUSINESS TIME, ATTENTION AND
ENERGIES TO THE PERFORMANCE OF HIS OR HER DUTIES HEREUNDER, WHICH SHALL INCLUDE
A MINIMUM OF FORTY (40) HOURS PER WEEK. DURING THE TERM OF THIS AGREEMENT, THE
EMPLOYEE SHALL NOT BE ENGAGED IN ANY OTHER ACTIVITY FOR COMPENSATION.

     2. COMPENSATION. THE EMPLOYEE SHALL RECEIVE COMPENSATION IN ACCORDANCE WITH
AND AS SET FORTH IN SCHEDULE "A" ATTACHED HERETO.

     3. TERM. THE EMPLOYMENT OF THE EMPLOYEE SHALL COMMENCE ON THE DATE OF THIS
AGREEMENT AND SHALL CONTINUE UNTIL OTHERWISE TERMINATED IN ACCORDANCE WITH
SECTION 4 OF THIS AGREEMENT.

     4. CONDITIONS OF TERMINATION.

     (a) This Agreement may be terminated by either party, without cause, on
thirty (30) days written notice to the other. The Company shall have the option
to pay the Employee thirty (30) days salary in lieu of his working during the
notice period. In any event, Employee shall be entitled to no further
compensation, after the expiration of thirty (30) days from the date of notice
or payment of thirty (30) days' compensation in lieu of such notice.

     (b) This Agreement may be terminated by the Company for any of the
following reasons without prior notice and with no right to thirty (30) days'
compensation:

     (I) DISHONESTY BY EMPLOYEE;

     (II) COMMISSION OF A FELONY BY EMPLOYEE WITH RESPECT TO THE COMPANY'S
PROPERTY OR PERSON;

     (III) FRAUD BY EMPLOYEE;

     (IV) DEATH OF EMPLOYEE; PROVIDED, HOWEVER, THAT THE PROVISIONS OF THIS
AGREEMENT APPLICABLE TO EMPLOYEE'S DEATH SHALL BE PERFORMED BY THE COMPANY; (V)
VIOLATION BY EMPLOYEE OF ANY OF THE PROVISIONS OF SECTION 9;

     (VI) FAILURE BY EMPLOYEE TO FAITHFULLY AND DILIGENTLY PERFORM THE
PROVISIONS OF THIS AGREEMENT OR THE USUAL CUSTOMARY DUTIES OF HIS EMPLOYMENT;

     (VII) PERMANENT DISABILITY OF EMPLOYEE. FOR THE PURPOSES HEREOF, "PERMANENT
DISABILITY" SHALL BE: (1) EMPLOYEE'S INABILITY, THROUGH PHYSICAL OR MENTAL
ILLNESS OR OTHER CAUSE, TO PERFORM THE MAJORITY OF HIS REGULAR DUTIES FOR A
PERIOD OF ONE HUNDRED EIGHTY (180) DAYS OR MORE; (2) THE DECLARATION BY EMPLOYEE
THAT HE IS PERMANENTLY DISABLED; (3) A DETERMINATION BY EMPLOYEE'S PERSONAL
PHYSICIAN THAT EMPLOYEE IS PERMANENTLY DISABLED; OR (4) A DETERMINATION BY THE
COMPANY'S PHYSICIAN THAT EMPLOYEE IS PERMANENTLY DISABLED;

     (VIII) THE FILING OF A PETITION IN VOLUNTARY OR INVOLUNTARY BANKRUPTCY BY
OR AGAINST THE COMPANY; OR

     (IX) A BONA FIDE DETERMINATION BY THE COMPANY TO DISCONTINUE THE BUSINESS.

     (c) In the event of termination under (i) through (ix), inclusive, of
subsection (b) hereof, the salary due to Employee to the date of such
termination shall be considered full compensation in payment for all claims
under this Agreement, and Employee shall not be entitled to any other
compensation. Upon termination, the Company shall have the night to deduct from
the amount due Employee, any amounts which the Employee owes the Company.

     5. FRINGE BENEFITS. THE COMPANY SHALL PROVIDE THE SAME FRINGE BENEFITS AS
ARE PROVIDED TO OTHER SIMILARLY SITUATED EMPLOYEES OF THE COMPANY'S AFFILIATE
SHORE BANCSHARES, INC.

<PAGE>

     6. REIMBURSEMENT OF EXPENSES.

     (a) The Company recognizes that Employee may incur various expenses, from
time to time, for the Company's benefit and in furtherance of the business. The
Company agrees either to pay directly, advance sums to Employee to be used for
and/or to reimburse Employee for expenses authorized in advance by the Company
so long as the Company is permitted to take the same as income tax deductions.
In no event shall such reimbursable expenses exceed $1,800.00 per calendar year
without the consent of the Company.

     (b) Employee agrees to submit to the Company such documentation as may be
necessary to substantiate the deductibility of the foregoing expenses for income
tax purposes.

     (c) The Company shall have the right to establish, change and alter
guidelines, from time to time, with respect to the nature and type of expenses
that the Company will pay hereunder and the limits of payment.

     7. OTHER COMMISSIONS. THE EMPLOYEE AGREES TO REMIT TO THE COMPANY ANY AND
ALL COMMISSIONS, FEES AND BONUSES WHICH MAY BE MADE PAYABLE TO HIM WHICH HE
RECEIVES AS A RESULT OF HIS REFERRAL OR SALES OF INSURANCE WHILE EMPLOYED BY THE
COMPANY.
     8. PROPERTY RIGHTS. THE EMPLOYEE AGREES THAT ANY AND ALL WORK PRODUCTS HE
PRODUCES, INCLUDING BUT NOT LIMITED TO EXPIRATIONS, RENEWALS, EXPIRATIONS LISTS,
MANUALS, INSURANCE DAILIES, CUSTOMER LISTS, COMMISSIONS OR PREMIUMS, LISTS OF
COMMISSIONS ON PREMIUMS, ADVERTISING COPY AND SALESMANSHIP POINTERS SHALL BE
CONSIDERED THE EXCLUSIVE PROPERTY OF THE COMPANY AND SHALL REMAIN SO AFTER
TERMINATION OF THIS AGREEMENT. THE ABOVE ENUMERATIONS ARE INTENDED TO BE
ILLUSTRATIONS ONLY.
     9. PROTECTION OF BUSINESS. IN ORDER THAT THE COMPANY SHALL CONTINUE TO
RECEIVE THE BENEFIT OF THE GOODWILL AND RELATIONSHIPS WITH CUSTOMERS WHICH IT
ENJOYS, THE EMPLOYEE AGREES THAT:

     (a) For a period of three (3) years after the Employee ceases to be
employed by the Company, the Employee will not directly or indirectly, within
the Delmarva Peninsula or Anne Arundel County, Maryland, whether alone or as an
employee, officer, director, stockholder, member, or partner of any other
entity, or as a trustee, fiduciary, or other representative of any other such
activity, solicit, sell, serve, divert or receive insurance brokerage or
employee benefit business to or from any party which was a customer or an
actively solicited prospective customer of the Company as of the date of
termination or during the period of eighteen (18) months prior to said
termination date.

(b) For a period of three (3) years after the Employee ceases to be employed by
the Company, the Employee will not, directly or indirectly, engage in the
insurance agency, insurance brokerage or employee-benefit business in the
Delmarva Peninsula or Anne Arundel County, Maryland.

     (c) During and after the Employee's employment with the Company, the
Employee shall not disclose or divulge to third parties, any confidential
information concerning the Company, its business, or its customers. All
information regarding the Company, and its business, including but not limited
to information regarding the Company's former, current or prospective customers,
employees and markets, methods of doing business, systems, procedures and
financial performance and condition shall be presumed to be confidential
information of the company for purposes of this Agreement except to the extent
that any such information is otherwise in the public domain and became part of
the public domain other than by means of a breach of a confidentiality
obligation. All tangible embodiments of confidential information, whether typed,
written, stored electronically or otherwise, shall at all times remain the
property of the Company. Upon the cessation of employment with the Company, the
Employee shall promptly return to the Company all copies of such tangible
embodiments of confidential information.

<PAGE>

     (d) It is recognized that damages in the event of a breach of this Section
9 by the Employee would be difficult, if not impossible, to ascertain, and it is
therefore agreed that the Company, in addition to and without limiting any other
remedy or right it may have, shall have the right to an injunction or other
equitable relief in any court in the State of Maryland of competent
jurisdiction, enjoining any such breach, and the Employee hereby waives any and
all defenses he may have on the ground of lack of jurisdiction or competence of
a court in the State of Maryland to grant such an injunction or other equitable
relief. The existence of this right shall not preclude any other rights and
remedies at law or in equity which the Company may have.

     (e) The covenants contained in each of the above subsections of this
Section 9 and within the subsections themselves are intended to be separate and
divisible covenants and if, for any reason, any one or more thereof shall be
held to be invalid or unenforceable, in whole or in part, it is agreed that the
same shall not be held to affect the validity of any other such covenant
contained in this Agreement. The benefits of this Section 9 shall inure to the
benefit of, and each reference to Company shall be deemed to include any
affiliate, subsidiary or parent of the Company.

     10. SET OFF. THE COMPANY MAY SET OFF AGAINST ANY OF THE AMOUNTS DUE THE
EMPLOYEE BY THE COMPANY HEREUNDER, ANY AMOUNTS WHICH ARE DUE FROM THE EMPLOYEE
TO THE COMPANY AND FOR BAD DEBTS OF CUSTOMERS FOR WHICH THE EMPLOYEE IS
RESPONSIBLE (AS EVIDENCED BY THE CODING OF SUCH CUSTOMERS OR OTHERWISE ASSIGNED
TO THE EMPLOYEE) IN EXCESS OF $3,500.00 IN ANY CALENDAR YEAR (EXCLUSIVE OF ANY
LATE CHARGES OR COMMISSION DUE TO THE COMPANY OR THE EMPLOYEE). THE COMPANY
SHALL PROVIDE THE EMPLOYEE WITH A PERIOD OF ONE (1) YEAR FOLLOWING THE YEAR THAT
THE BAD DEBT IS WRITTEN OFF BY THE COMPANY TO COLLECT THE BAD DEBT PRIOR TO
EXERCISING ITS NIGHT OF SETOFF RELATING TO SUCH BAD DEBT UNDER THIS SECTION.

     11. MISCELLANEOUS PROVISIONS:

     (a) APPLICABLE LAW. It is the intention of the parties hereto that all
questions with respect to the construction of this Agreement and rights and
liabilities of the parties hereunder shall be determined in accordance with the
laws of the State of Maryland.

     (b) ENTIRE AGREEMENT. This Agreement embodies and constitutes the entire
understanding among the parties with respect to the transactions contemplated
herein, and all prior or contemporaneous agreements, understanding,
representations and statements, oral or written, are merged into this Agreement.

     (c) MODIFICATION. Neither this Agreement nor any provision hereof may be
waived, modified, amended, discharged, or terminated except by an instrument in
writing signed by the party against which the enforcement of such waiver,
modification, amendment, discharge or termination is sought, and then only to
the extent set forth in such instrument.

     (d) HEADINGS. Descriptive headings are for convenience only and shall not
control or affect the meaning or construction of any provision of this
Agreement.

     (e) BINDING EFFECT. The Agreement shall be binding upon and shall insure to
the benefit of the parties hereto and their successors and assigns. This
Agreement may be assigned by the Company to an affiliate of the Company, or to
any third party in connection with any sale of the Company's business or other
extraordinary transaction. This Agreement may not be assigned by the Employee.

     (f) SEVERABILITY. In case any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision hereof, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.

     (g) GENDER. Whenever herein the singular number is used, the same shall
include the plural and the masculine gender shall include the feminine and
neuter genders.

<PAGE>

     (h) NOTICES. All notices and communications hereunder shall be in writing
and shall be deemed given when sent postage prepaid by registered or certified
mail, return receipt requested, and, if intended for the Company, shall be
addressed to it, to the attention of its President, at the principal office of
the Company, and if intended for Employee, shall be addressed to the Employee at
the Employee's address as shown in the Company's records.

     (i) COUNTERPARTS. This Agreement may be executed simultaneously in one or
more counterparts, each one of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

     (j) WAIVER. Failure to insist upon strict compliance with any of terms,
covenants or conditions hereof shall not be deemed a waiver of such terms,
covenants or conditions, nor shall any waiver or relinquishment or any night or
power hereunder at any one instance or instances be deemed a waiver or
relinquishment of such right or power at any other time or times.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

ATTEST:                                THE AVON-DIXON AGENCY, LLC

                                       By:  Shore Bancshares, Inc.

                                       By:
-----------------------------          ------------------------------------
Terry Mead, Secretary                   W. Moorhead Vermilye, President/CEO

                                       ----------------------------------------
                                       Employee's Signature
                                       Printed Name of Employee:  Kevin LaTulip

<PAGE><PAGE>
                                                                   EXHIBIT 10.28

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 1 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 1 Loan (as defined in the Loan Agreement) a principal
amount of US$5,080,636.30 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 1 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>

                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                   ----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                   ----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                   ----------------------------

                                               By:
                                                   ----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               --------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>
                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 2 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 2 Loan (as defined in the Loan Agreement) a principal
amount of US$9,643,823.39 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 2 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>

                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to Section 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                   ----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                   ----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                   ----------------------------

                                               By:
                                                   ----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               --------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>
                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 3 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 3 Loan (as defined in the Loan Agreement) a principal
amount of US$4,425,150.57 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 3 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  -----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  -----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  -----------------------------

                                               By:
                                                  -----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               --------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>
                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 4 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 4 Loan (as defined in the Loan Agreement) a principal
amount of US$6,300,323.22 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 4 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>

                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of
<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  -----------------------------

                                               ASSIGNEE

<PAGE>

                                      -9-

                                               NB CAPITAL CORPORATION

                                               By:
                                                  -----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  -----------------------------

                                               By:
                                                  -----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 5 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 5 Loan (as defined in the Loan Agreement) a principal
amount of US$7,897,184.70 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 5 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  -----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  -----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  -----------------------------

                                               By:
                                                  -----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 6 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 6 Loan (as defined in the Loan Agreement) a principal
amount of US$8,304,717.22 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 6 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  -----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  -----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  -----------------------------

                                               By:
                                                  -----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 7 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 7 Loan (as defined in the Loan Agreement) a principal
amount of US$10,348,651.63 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 7 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  -----------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  -----------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  -----------------------------

                                               By:
                                                  -----------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>
                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 8 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 8 Loan (as defined in the Loan Agreement) a principal
amount of US$9,926,963.73 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 8 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.
<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  ------------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  ------------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  ------------------------------

                                               By:
                                                  ------------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 9 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 9 Loan (as defined in the Loan Agreement) a principal
amount of US$7,178,371.80 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 9 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

                  Bermuda court. Each of the parties hereto agrees that a final
                  judgment in any such action or proceeding shall be conclusive
                  and may be enforced in other jurisdictions by suit on the
                  judgment or in any other manner provided by law. Nothing in
                  this Assignment shall affect any right that any party may
                  otherwise have to bring any action or proceeding relating to
                  this Assignment in the courts of any jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  ------------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  ------------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  ------------------------------

                                               By:
                                                  ------------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                 JANUARY 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                          (JANUARY 2002 SERIES 10 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
January 25, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                                  WITNESSETH:

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of January 25, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the January 2002 Series 10 Loan (as defined in the Loan Agreement) a principal
amount of US$2,760,257.31 to Assignor, as of January 25, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
January 2002 Series 10 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of January 25, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twenty-fifth (25th)
day of January, Two thousand and two (2002).

                                               ASSIGNOR

                                               NB FINANCE, LTD.

                                               By:
                                                  ------------------------------

<PAGE>
                                      -9-

                                               ASSIGNEE

                                               NB CAPITAL CORPORATION

                                               By:
                                                  ------------------------------

                                               BANK

                                               NATIONAL BANK OF CANADA

                                               By:
                                                  ------------------------------

                                               By:
                                                  ------------------------------

<PAGE>

PROVINCE OF QUEBEC           )
                             )  ss.:
DISTRICT OF MONTREAL         )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                               ---------------------------------
                                               NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

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