Document:

EXHIBIT 4.3

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                        AMERICAN HOME MORTGAGE ASSETS LLC

                                  as Depositor

                                       and

                             _____________________,

                                as Owner Trustee

                           ___________________________

                                 TRUST AGREEMENT

                          Dated as of ________________

                           ___________________________

                    $_________ Mortgage-Backed Certificates,
                                 Series 200_-__

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                                TABLE OF CONTENTS

SECTION

                                                ARTICLE I

                                               DEFINITIONS

<S>                   <C>
Section 1.01.         Definitions...............................................................
Section 1.02.         Other Definitional Provisions.............................................

                                                ARTICLE II

                                               ORGANIZATION

Section 2.01.         Name......................................................................
Section 2.02.         Office....................................................................
Section 2.03.         Purposes and Powers.......................................................
Section 2.04.         Appointment of Owner Trustee..............................................
Section 2.05.         Initial Capital Contribution of Owner Trust Estate........................
Section 2.06.         Declaration of Trust......................................................
Section 2.07.         Liability of the Holder of the Certificates...............................
Section 2.08.         Title to Trust Property...................................................
Section 2.09.         Situs of Trust............................................................
Section 2.10.         Representations and Warranties of the Depositor...........................
Section 2.11.         Payment of Trust Fees.....................................................

                                               ARTICLE III

                           CONVEYANCE OF THE MORTGAGE COLLATERAL; CERTIFICATES

Section 3.01.         Conveyance of the Mortgage Collateral.....................................
Section 3.02.         Initial Ownership.........................................................
Section 3.03.         The Certificates..........................................................
Section 3.04.         Authentication of Certificates............................................
Section 3.05.         Registration of and Limitations on Transfer and Exchange of Certificates..
Section 3.06.         Mutilated, Destroyed, Lost or Stolen Certificates.........................
Section 3.07.         Persons Deemed Certificateholders.........................................
Section 3.08.         Access to List of Certificateholders' Names and Addresses.................
Section 3.09.         Maintenance of Office or Agency...........................................
Section 3.10.         Certificate Paying Agent..................................................
Section 3.11.         Ownership.................................................................

                                                ARTICLE IV

                                  AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 4.01.         General Authority.........................................................
Section 4.02.         General Duties............................................................
Section 4.03.         Action Upon Instruction...................................................
Section 4.04.         No Duties Except as Specified under Specified Documents or
                      in Instructions...........................................................
Section 4.05.         Restrictions..............................................................
Section 4.06.         Prior Notice to Certificateholders with Respect to Certain Matters........
Section 4.07.         Action by Certificateholders with Respect to Certain Matters..............
Section 4.08.         Action by Certificateholders with Respect to Bankruptcy...................
Section 4.09.         Restrictions on Certificateholders' Power.................................
Section 4.10.         Majority Control..........................................................

                                                ARTICLE V

                                        APPLICATION OF TRUST FUNDS

Section 5.01.         Distributions.............................................................
Section 5.02.         Method of Payment.........................................................
Section 5.03.         Signature on Returns......................................................
Section 5.04.         Statements to Certificateholders..........................................
Section 5.05.         Tax Reporting; Tax Elections..............................................

                                                ARTICLE VI

                                       CONCERNING THE OWNER TRUSTEE

Section 6.01.         Acceptance of Trusts and Duties...........................................
Section 6.02.         Furnishing of Documents...................................................
Section 6.03.         Representations and Warranties............................................
Section 6.04.         Reliance; Advice of Counsel...............................................
Section 6.05.         Not Acting in Individual Capacity.........................................
Section 6.06.         Owner Trustee Not Liable for Certificates or Related Documents............
Section 6.07.         Owner Trustee May Own Certificates and Notes..............................

                                               ARTICLE VII

                                      COMPENSATION OF OWNER TRUSTEE

Section 7.01.         Owner Trustee's Fees and Expenses.........................................
Section 7.02.         Indemnification...........................................................

                                               ARTICLE VIII

                                      TERMINATION OF TRUST AGREEMENT

Section 8.01.         Termination of Trust Agreement............................................
Section 8.02.         Dissolution upon Bankruptcy of the Holder of the Designated Certificate...

                                                ARTICLE IX

                          SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 9.01.         Eligibility Requirements for Owner Trustee................................
Section 9.02.         Replacement of Owner Trustee..............................................
Section 9.03.         Successor Owner Trustee...................................................
Section 9.04.         Merger or Consolidation of Owner Trustee..................................
Section 9.05.         Appointment of Co-trustee or Separate Trustee.............................

                                                ARTICLE X

                                              MISCELLANEOUS

Section 10.01.        Amendments................................................................
Section 10.02.        No Legal Title to Owner Trust Estate......................................
Section 10.03.        Limitations on Rights of Others...........................................
Section 10.04.        Notices...................................................................
Section 10.05.        Severability..............................................................
Section 10.06.        Separate Counterparts.....................................................
Section 10.07.        Successors and Assigns....................................................
Section 10.08.        [No Petition..............................................................
Section 10.09.        No Recourse...............................................................
Section 10.10.        Headings..................................................................
Section 10.11.        Governing Law.............................................................
Section 10.12.        Integration...............................................................

EXHIBIT

Exhibit A - Form of Certificate.................................................................
Exhibit B - Certificate of Trust of American Home Mortgage Assets LLC
                  Trust Series 200_-__..........................................................
Exhibit C - Form of Certificate of Non-Foreign Status...........................................
Exhibit D - Form of Investment Letter...........................................................
Exhibit E - Form of Investment Letter for Certificates..........................................
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         This Trust Agreement, dated as of ________________ (as amended from
time to time, this "Trust Agreement"), between American Home Mortgage Assets
LLC, a Delaware limited liability company, as Depositor (the "Depositor") and
______________________, a Delaware ___________________, as Owner Trustee (the
"Owner Trustee"),

                                WITNESSETH THAT:

         In consideration of the mutual agreements herein contained, the
Depositor and the Owner Trustee agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

         Section 1.01 DEFINITIONS. For all purposes of this Trust Agreement,
except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in the Indenture. All other capitalized terms used herein
shall have the meanings specified herein.

         Section 1.02 OTHER DEFINITIONAL PROVISIONS.

         (a) All terms defined in this Trust Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

         (b) As used in this Trust Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Trust Agreement or in any such certificate or other document,
and accounting terms partly defined in this Trust Agreement or in any such
certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the
definitions contained in this Trust Agreement or in any such certificate or
other document shall control.

         (c) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Trust Agreement shall refer to this Trust Agreement as
a whole and not to any particular provision of this Trust Agreement; Section and
Exhibit references contained in this Trust Agreement are references to Sections
and Exhibits in or to this Trust Agreement unless otherwise specified; and the
term "including" shall mean "including without limitation".

         (d) The definitions contained in this Trust Agreement are applicable to
the singular as well as the plural forms of such terms and to the masculine as
well as to the feminine and neuter genders of such terms.

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

                                   ARTICLE II

                                  ORGANIZATION

         Section 2.01 NAME. The trust created hereby (the "Trust") shall be
known as "American Home Mortgage Assets LLC Trust Series 200_-_," in which name
the Owner Trustee may conduct the business of the Trust, make and execute
contracts and other instruments on behalf of the Trust and sue and be sued.

         Section 2.02 OFFICE. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Certificateholders
and the Depositor.

         Section 2.03 PURPOSES AND POWERS. The purpose of the Trust is to engage
in the following activities:

                  (i) to issue the Notes pursuant to the Indenture and the
         Certificates pursuant to this Trust Agreement and to sell the Notes and
         the Certificates;

                  (ii) to pay the organizational, start-up and transactional
         expenses of the Trust;

                  (iii) to assign, grant, transfer, pledge and convey the
         Mortgage Collateral pursuant to the Indenture and to hold, manage and
         distribute to the Certificateholders pursuant to Section 5.01 any
         portion of the Mortgage Collateral released from the Lien of, and
         remitted to the Trust pursuant to the Indenture;

                  (iv) to enter into and perform its obligations under the Basic
         Documents to which it is to be a party;

                  (v) to engage in those activities, including entering into
         agreements, that are necessary, suitable or convenient to accomplish
         the foregoing or are incidental thereto or connected therewith,
         including, without limitation, to accept additional contributions of
         equity that are not subject to the Lien of the Indenture; and

                  (vi) subject to compliance with the Basic Documents, to engage
         in such other activities as may be required in connection with
         conservation of the Owner Trust Estate and the making of distributions
         to the Certificateholders and the Noteholders.

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Trust Agreement or the
Basic Documents [while any Note is outstanding and] [without the consent of __%
of the Certificateholders].

         Section 2.04 APPOINTMENT OF OWNER TRUSTEE. The Depositor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein.

         Section 2.05 INITIAL CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,
as of the date hereof, the sum of $1.00. The Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial corpus of the Trust and shall
be deposited in the Certificate Distribution Account. The Owner Trustee also
acknowledges on behalf of the trust receipt of the Mortgage Collateral and a
Surety Bond assigned to the Trust pursuant to Section 3.01, which shall
constitute the Owner Trust Estate.

         Section 2.06 DECLARATION OF TRUST. The Owner Trustee hereby declares
that it shall hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Certificateholders,
subject to the obligations of the Trust under the Basic Documents. It is the
intention of the parties hereto that the Trust constitute a statutory trust
under the Statutory Trust Statute and that this Trust Agreement constitute the
governing instrument of such statutory trust. It is the intention of the parties
hereto that, for income and franchise tax purposes, the Trust shall be treated
as a corporation, with the assets of the corporation being the Owner Trust
Estate, the [equity interest in the corporation] being the Certificates and the
Notes being debt of the corporation and the provisions of this Agreement shall
be interpreted to further this intention. Except as otherwise provided in this
Trust Agreement, the rights of the Certificateholders will be those of [equity
owners of the Trust] formed under the Delaware [corporation law]. The parties
agree that, unless otherwise required by appropriate tax authorities, the Trust
will file or cause to be filed annual or other necessary returns, reports and
other forms consistent with the characterization of the Trust as a corporation
for such tax purposes. Effective as of the date hereof, the Owner Trustee shall
have all rights, powers and duties set forth herein and in the Statutory Trust
Statute with respect to accomplishing the purposes of the Trust.

         Section 2.07 LIABILITY OF THE HOLDER OF THE CERTIFICATES. (a) The
Holders of the Certificates shall be liable directly to and shall indemnify any
injured party for all losses, claims, damages, liabilities and expenses of the
Trust (including Expenses, to the extent not paid out of the Owner Trust Estate)
to the extent that the Holders of the Certificates would be liable if the Trust
were a corporation under [Delaware corporate law]; provided, however, that the
Holders of the Certificates shall not be liable for payments required to be made
on the Notes or the Certificates, or for any losses incurred by a
Certificateholder in the capacity of an investor in the Certificates or a
Noteholder in the capacity of an investor in the Notes. The Holders of the
Certificates shall be liable for any entity level taxes imposed on the Trust. In
addition, any third party creditors of the Trust, including the Credit Enhancer
(other than in connection with the obligations described in the preceding
sentence for which the Holders of the Certificates shall not be liable) shall be
deemed third party beneficiaries of this paragraph. The obligations of the
Holders of the Certificates under this paragraph shall be evidenced by the
Certificates.

         (b) Subject to subsection (a) above, the Certificateholders shall be
entitled to the same limitation of personal liability extended to stockholders
of private corporations for profit organized under the General Corporation Law
of the State of Delaware.

         Section 2.08 TITLE TO TRUST PROPERTY. Legal title to the Owner Trust
Estate shall be vested at all times in the Trust as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

         Section 2.09 SITUS OF TRUST. The Trust will be located and administered
in the State of Delaware. All bank accounts maintained by the Owner Trustee on
behalf of the Trust shall be located in the State of Delaware or the State of
________. The Trust shall not have any employees in any state other than
Delaware; provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having employees within or without the State of Delaware or
taking actions outside the State of Delaware in order to comply with Section
2.03. Payments will be received by the Trust only in Delaware, New York or
________, and payments will be made by the Trust only from Delaware, New York or
________. The only office of the Trust will be at the Corporate Trust Office in
Delaware.

         Section 2.10 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The
Depositor hereby represents and warrants to the Owner Trustee that:

                  (i) The Depositor is duly organized and validly existing as a
         limited liability company in good standing under the laws of the State
         of Delaware, with power and authority to own its properties and to
         conduct its business as such properties are currently owned and such
         business is presently conducted.

                  (ii) The Depositor is duly qualified to do business as a
         foreign limited liability company in good standing and has obtained all
         necessary licenses and approvals in all jurisdictions in which the
         ownership or lease of its property or the conduct of its business shall
         require such qualifications and in which the failure to so qualify
         would have a material adverse effect on the business, properties,
         assets or condition (financial or other) of the Depositor.

                  (iii) The Depositor has the power and authority to execute and
         deliver this Trust Agreement and to carry out its terms; the Depositor
         has full power and authority to sell and assign the property to be sold
         and assigned to and deposited with the Trust as part of the Trust and
         the Depositor has duly authorized such sale and assignment and deposit
         to the Trust by all necessary company action; and the execution,
         delivery and performance of this Trust Agreement have been duly
         authorized by the Depositor by all necessary company action.

                  (iv) The consummation of the transactions contemplated by this
         Trust Agreement and the fulfillment of the terms hereof do not conflict
         with, result in any breach of any of the terms and provisions of, or
         constitute (with or without notice or lapse of time) a default under,
         the limited liability agreement and company resolutions of the
         Depositor, or any indenture, agreement or other instrument to which the
         Depositor is a party or by which it is bound; nor result in the
         creation or imposition of any Lien upon any of its properties pursuant
         to the terms of any such indenture, agreement or other instrument
         (other than pursuant to the Basic Documents); nor violate any law or,
         to the best of the Depositor's knowledge, any order, rule or regulation
         applicable to the Depositor of any court or of any federal or state
         regulatory body, administrative agency or other governmental
         instrumentality having jurisdiction over the Depositor or its
         properties.

         Section 2.11 PAYMENT OF TRUST FEES. The Owner Trustee shall cause the
Administrator (i) to pay the Trust's fees and expenses incurred with respect to
the performance of the Trust's duties under the Indenture from amounts received
pursuant to Section 3.05(x) under the Indenture and (ii) to notify the
Certificate Paying Agent of such fees and expenses incurred thereunder.

                                  ARTICLE III

                     CONVEYANCE OF THE MORTGAGE COLLATERAL;
                                  CERTIFICATES

         Section 3.01 CONVEYANCE OF THE MORTGAGE COLLATERAL. The Depositor,
concurrently with the execution and delivery hereof, does hereby transfer,
convey, sell and assign to the Trust, on behalf of the Holders of the Notes and
the Certificates and the Credit Enhancer, without recourse, all its right, title
and interest in and to the Mortgage Collateral. The Depositor will also provide
the Trust with a Surety Bond.

         The parties hereto intend that the transaction set forth herein be a
sale by the Depositor to the Trust of all of its right, title and interest in
and to the Mortgage Collateral. In the event that the transaction set forth
herein is not deemed to be a sale, the Depositor hereby grants to the Trust a
security interest in all of its right, title and interest in, to and under the
Owner Trust Estate, all distributions thereon and all proceeds thereof; and this
Trust Agreement shall constitute a security agreement under applicable law.
Section 3.02......INITIAL OWNERSHIP. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the conveyance
of the Mortgage Collateral pursuant to Section 3.01 and the issuance of the
Certificates, the Depositor shall be the sole Certificateholder.

         Section 3.03 THE CERTIFICATES. The Certificates shall be issued in
minimum denominations of $[250,000] and in integral multiples of $10,000 in
excess thereof; except for one Certificate that may not be in an integral
multiple of $10,000; provided, however, that the Designated Certificate issued
pursuant to Section 3.11 may be issued in the amount of $_________. The
Certificates shall be executed on behalf of the Trust by manual or facsimile
signature of an authorized officer of the Owner Trustee and authenticated in the
manner provided in Section 3.04. Certificates bearing the manual or facsimile
signatures of individuals who were, at the time when such signatures shall have
been affixed, authorized to sign on behalf of the Trust, shall be validly issued
and entitled to the benefit of this Trust Agreement, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of authentication and delivery of such Certificates. A Person shall
become a Certificateholder and shall be entitled to the rights and subject to
the obligations of a Certificateholder hereunder upon such Person's acceptance
of a Certificate duly registered in such Person's name, pursuant to Section
3.05.

         A transferee of a Certificate shall become a Certificateholder and
shall be entitled to the rights and subject to the obligations of a
Certificateholder hereunder upon such transferee's acceptance of a Certificate
duly registered in such transferee's name pursuant to and upon satisfaction of
the conditions set forth in Section 3.05.

         Section 3.04 AUTHENTICATION OF CERTIFICATES. Concurrently with the
acquisition of the Mortgage Collateral by the Trust, the Owner Trustee shall
cause the Certificates in an aggregate principal amount equal to the Initial
Principal Balance of the Certificates to be executed on behalf of the Trust,
authenticated and delivered to or upon the written order of the Depositor,
signed by its chairman of the board, its president or any vice president,
without further company action by the Depositor, in authorized denominations. No
Certificate shall entitle its holder to any benefit under this Trust Agreement
or be valid for any purpose unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit A,
executed by the Owner Trustee or ____________________, by manual signature; such
authentication shall constitute conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder. All Certificates shall be
dated the date of their authentication.

         Section 3.05 REGISTRATION OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF CERTIFICATES. The Certificate Registrar shall keep or cause to be kept, at
the office or agency maintained pursuant to Section 3.09, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the [Owner
Trustee] shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. _____________________________
shall be the initial Certificate Registrar. If the Certificate Registrar resigns
or is removed, the Owner Trustee shall appoint a successor Certificate
Registrar.

         Subject to satisfaction of the conditions set forth below and to the
provisions of Section 3.11 with respect to the Designated Certificate, upon
surrender for registration of transfer of any Certificate at the office or
agency maintained pursuant to Section 3.09, the Owner Trustee shall execute,
authenticate and deliver (or shall cause __________________________________ as
its authenticating agent to authenticate and deliver) in the name of the
designated transferee or transferees, one or more new Certificates in authorized
denominations of a like aggregate amount dated the date of authentication by the
Owner Trustee or any authenticating agent. At the option of a Holder,
Certificates may be exchanged for other Certificates of authorized denominations
of a like aggregate amount upon surrender of the Certificates to be exchanged at
the office or agency maintained pursuant to Section 3.09.

         Every Certificate presented or surrendered for registration of transfer
or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Certificate Registrar duly executed by the Holder or such
Holder's attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Certificate Registrar in accordance with its customary
practice.

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

         No Person shall become a Certificateholder until it shall establish its
non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9
and the Certificate of Non-Foreign Status set forth in Exhibit C hereto.

         No transfer of a Certificate shall be made unless such transfer is
exempt from the registration requirements of the Securities Act and any
applicable state securities laws or is made in accordance with said Act and
laws. In the event of any such transfer, the Certificate Registrar or the
Depositor shall prior to such transfer require the transferee to execute (i) (a)
an investment letter (in substantially the form attached hereto as Exhibit D) in
form and substance reasonably satisfactory to the Certificate Registrar and the
Depositor certifying to the Trust, the Owner Trustee, the Certificate Registrar
and the Depositor that such transferee is a "qualified institutional buyer"
under Rule 144A under the Securities Act, or (b) solely with respect to the
Designated Certificate, an investment letter (in substantially the form attached
hereto as Exhibit E), acceptable to and in form and substance reasonably
satisfactory to the Certificate Registrar and the Depositor, which investment
letters shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Servicer or the Depositor and (ii) the Certificate of Non-Foreign
Status (in substantially the form attached hereto as Exhibit C) acceptable to
and in form and substance reasonably satisfactory to the Certificate Registrar
and the Depositor, which certificate shall not be an expense of the Trust, the
Owner Trustee, the Certificate Registrar or the Depositor. The Holder of a
Certificate desiring to effect such transfer shall, and does hereby agree to,
indemnify the Trust, the Owner Trustee, the Certificate Registrar, the Servicer
and the Depositor against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

         No transfer of a Certificate shall be made unless the Certificate
Registrar shall have received either (i) a representation letter from the
proposed transferee of such Certificate to the effect that such proposed
transferee is not an employee benefit plan subject to the fiduciary
responsibility provisions of ERISA, or Section 4975 of the Code, or a Person
acting on behalf of any such plan or using the assets of any such plan, which
representation letter shall not be an expense of the Trust, Owner Trustee, the
Certificate Registrar, the Servicer or the Depositor or (ii) in the case of any
such certificate presented for registration in the name of an employee benefit
plan subject to the fiduciary responsibility provisions of ERISA, or Section
4975 of the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan, or any other Person who is using the assets of any
such plan to effect such acquisition, an Opinion of Counsel, in form and
substance reasonably satisfactory to, and addressed and delivered to, the Trust,
the Certificate Registrar and the Depositor, to the effect that the purchase or
holding of such Certificate will not result in the assets of the Owner Trust
Estate being deemed to be "plan assets" and subject to the fiduciary
responsibility provisions of ERISA or the prohibited transaction provisions of
the Code, will not constitute or result in a prohibited transaction within the
meaning of Section 406 or Section 407 of ERISA or Section 4975 of the Code, and
will not subject the Trust, the Owner Trustee, the Certificate Registrar or the
Depositor to any obligation or liability (including obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those explicitly
undertaken in this Trust Agreement which Opinion of Counsel shall not be an
expense of the Trust, the Owner Trustee, the Certificate Registrar or Depositor.

         Section 3.06 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar, or
if the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required by them to save each of them harmless, then in the absence of
notice to the Certificate Registrar or the Owner Trustee that such Certificate
has been acquired by a bona fide purchaser, the Owner Trustee shall execute on
behalf of the Trust and the Owner Trustee or ________________, as the Trust's
authenticating agent, shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor and denomination. In connection with the issuance of any new
Certificate under this Section 3.06, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this Section 3.06 shall constitute conclusive
evidence of ownership in the Trust, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.

         Section 3.07 PERSONS DEEMED CERTIFICATEHOLDERS. Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee,
the Certificate Registrar or any Certificate Paying Agent may treat the Person
in whose name any Certificate is registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Trust, the
Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by
any notice to the contrary.

         Section 3.08 ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.
The Certificate Registrar shall furnish or cause to be furnished to the
Depositor or the Owner Trustee, within 15 days after receipt by the Certificate
Registrar of a written request therefor from the Depositor or the Owner Trustee,
a list, in such form as the Depositor or the Owner Trustee, as the case may be,
may reasonably require, of the names and addresses of the Certificateholders as
of the most recent Record Date. Each Holder, by receiving and holding a
Certificate, shall be deemed to have agreed not to hold any of the Trust, the
Depositor, the Holder of the Designated Certificate, the Certificate Registrar
or the Owner Trustee accountable by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.

         Section 3.09 MAINTENANCE OF OFFICE OR AGENCY. The Owner Trustee on
behalf of the Trust, shall maintain in the Borough of Manhattan, The City of New
York, an office or offices or agency or agencies where Certificates may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Owner Trustee in respect of the Certificates and the
Basic Documents may be served. The Owner Trustee initially designates the
Corporate Trust Office of the Owner Trustee as its office for such purposes. The
Owner Trustee shall give prompt written notice to the Depositor, the Holder of
the Designated Certificate and the Certificateholders of any change in the
location of the Certificate Register or any such office or agency.

         Section 3.10 CERTIFICATE PAYING AGENT. (a) The Certificate Paying Agent
shall make distributions to Certificateholders from the Certificate Distribution
Account on behalf of the Trust in accordance with the provisions of the
Certificates and Section 5.01 hereof from payments remitted to the Certificate
Paying Agent by the Indenture Trustee pursuant to Section 3.05 of the Indenture.
The Trust hereby appoints __________________ as Certificate Paying Agent and
_________________ hereby accepts such appointment and further agrees that it
will be bound by the provisions of this Trust Agreement relating to the
Certificate Paying Agent and shall:

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

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

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

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

                  (v) comply with all requirements of the Code with respect to
         the withholding from any payments made by it on any Certificates of any
         applicable withholding taxes imposed thereon and with respect to any
         applicable reporting requirements in connection therewith; and

                  (vi) deliver to the Owner Trustee a copy of the report to
         Certificateholders prepared with respect to each Payment Date by the
         Servicer pursuant to Section 4.01 of the Servicing Agreement.

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

         (c) The Trust may revoke such power and remove the Certificate Paying
Agent if the Administrator determines in its sole discretion that the
Certificate Paying Agent shall have failed to perform its obligations under this
Trust Agreement in any material respect. __________________ shall be permitted
to resign as Certificate Paying Agent upon 30 days written notice to the Owner
Trustee; provided ________________ is also resigning as Paying Agent under the
Indenture at such time. In the event that ___________________ shall no longer be
the Certificate Paying Agent under this Trust Agreement and Paying Agent under
the Indenture, the Administrator shall appoint a successor to act as Certificate
Paying Agent (which shall be a bank or trust company) and which shall also be
the successor Paying Agent under the Indenture. The Administrator shall cause
such successor Certificate Paying Agent or any additional Certificate Paying
Agent appointed by the Administrator to execute and deliver to the Owner Trustee
an instrument to the effect set forth in this Section 3.10 as it relates to the
Certificate Paying Agent. The Certificate Paying Agent shall return all
unclaimed funds to the Trust and upon removal of a Certificate Paying Agent such
Certificate Paying Agent shall also return all funds in its possession to the
Trust. The provisions of Sections 6.01, 6.03, 6.04 and 7.01 shall apply to the
Certificate Paying Agent to the extent applicable. Any reference in this
Agreement to the Certificate Paying Agent shall include any co-paying agent
unless the context requires otherwise.

         (d) The Certificate Paying Agent shall establish and maintain with
itself a trust account (the "Certificate Distribution Account") in which the
Certificate Paying Agent shall, deposit, on the same day as it is received from
the Indenture Trustee, each remittance received by the Certificate Paying Agent
with respect to payments made pursuant to the Indenture. The Certificate Paying
Agent shall make all distributions of principal of and interest on the
Certificates, from moneys on deposit in the Certificate Distribution Account.

         Section 3.11 [OWNERSHIP. The Certificates shall, for income and
franchise tax purposes, be treated as the equity interest of the Trust. The
Certificates shall not be transferred unless (a) the transferee shall be an
Affiliate of the Seller, unless the prior written consent of the Credit Enhancer
is obtained, which will not be unreasonably withheld, (b) the applicable
provisions of Section 3.05 are satisfied, (c) the Certificate Registrar receives
an Opinion of Counsel to the effect that the transfer of the Certificates shall
not cause the Trust to be subject to an entity level tax and (d) the Rating
Agencies shall consent to such transfer.]

                                   ARTICLE IV

                             AUTHORITY AND DUTIES OF
                                  OWNER TRUSTEE

         Section 4.01 GENERAL AUTHORITY. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Trust is to be
a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument described herein, in each case, in
such form as the Administrator shall approve, as evidenced conclusively by the
Owner Trustee's execution thereof. In addition to the foregoing, the Owner
Trustee is authorized, but shall not be obligated, to take all actions required
of the Trust pursuant to the Basic Documents. The Owner Trustee is further
authorized from time to time to take such action as the Administrator directs
with respect to the Basic Documents.

         Section 4.02 GENERAL DUTIES. It shall be the duty of the Owner Trustee
to discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Trust Agreement and the Basic Documents to which the Trust is
a party and to administer the Trust in the interest of the Certificateholders,
subject to the Basic Documents and in accordance with the provisions of this
Trust Agreement. Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Administrator has agreed in the
Administration Agreement to perform such acts or to discharge such duties of the
Owner Trustee or the Trust hereunder or under any Basic Document, and the Owner
Trustee shall not be held liable for the default or failure of the Administrator
to carry out its obligations under the Administration Agreement.

         Section 4.03 ACTION UPON INSTRUCTION. (a) Subject to Article IV and in
accordance with the terms of the Basic Documents, the Certificateholders may by
written instruction direct the Owner Trustee in the management of the Trust.
Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to Article IV.

         (b) Notwithstanding the foregoing, the Owner Trustee shall not be
required to take any action hereunder or under any Basic Document if the Owner
Trustee shall have reasonably determined, or shall have been advised by counsel,
that such action is likely to result in liability on the part of the Owner
Trustee or is contrary to the terms hereof or of any Basic Document or is
otherwise contrary to law.

         (c) Whenever the Owner Trustee is unable to decide between alternative
courses of action permitted or required by the terms of this Trust Agreement or
under any Basic Document, or in the event that the Owner Trustee is unsure as to
the application of any provision of this Trust Agreement or any Basic Document
or any such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or in the event that this
Trust Agreement permits any determination by the Owner Trustee or is silent or
is incomplete as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee shall promptly
give notice (in such form as shall be appropriate under the circumstances) to
the Certificateholders (with a copy to the Credit Enhancer) requesting
instruction as to the course of action to be adopted, and to the extent the
Owner Trustee acts in good faith in accordance with any written instruction of
the Certificateholders received, the Owner Trustee shall not be liable on
account of such action to any Person. If the Owner Trustee shall not have
received appropriate instruction within 10 days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action not inconsistent with this Trust Agreement or
the Basic Documents, as it shall deem to be in the best interests of the
Certificateholders, and the Owner Trustee shall have no liability to any Person
for such action or inaction.

         Section 4.04 NO DUTIES EXCEPT AS SPECIFIED UNDER SPECIFIED DOCUMENTS OR
IN INSTRUCTIONS. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Trust Agreement, (ii) in accordance with the Basic
Documents and (iii) in accordance with any document or instruction delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at any time or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Trust Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

         Section 4.05 RESTRICTIONS. (a) The Owner Trustee shall not take any
action (x) that is inconsistent with the purposes of the Trust set forth in
Section 2.03 or (y) that, to the actual knowledge of the Owner Trustee, would
result in the Trust becoming taxable as a corporation for federal income tax
purposes. The Certificateholders shall not direct the Owner Trustee to take
action that would violate the provisions of this Section 4.06.

         (b) The Owner Trustee shall not convey or transfer any of the Trust's
properties or assets, including those included in the Trust Estate, to any
person unless (a) it shall have received an Opinion of Counsel to the effect
that such transaction will not have any material adverse tax consequence to the
Trust or any Certificateholder and (b) such conveyance or transfer shall not
violate the provisions of Section 3.16(b) of the Indenture.

         Section 4.06 PRIOR NOTICE TO CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN
MATTERS. With respect to the following matters, the Owner Trustee shall not take
action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Certificateholders in writing of the proposed
action and the Certificateholders shall not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that such
Certificateholders have withheld consent or provided alternative direction:

         (a) the initiation of any claim or lawsuit by the Trust (except claims
or lawsuits brought in connection with the collection of cash distributions due
and owing under the Mortgage Collateral) and the compromise of any action, claim
or lawsuit brought by or against the Trust (except with respect to the
aforementioned claims or lawsuits for collection of cash distributions due and
owing under the Mortgage Collateral);

         (b) the election by the Trust to file an amendment to the Certificate
of Trust (unless such amendment is required to be filed under the Statutory
Trust Statute);

         (c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

         (d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholders;

         (e) the amendment, change or modification of the Administration
Agreement, except to cure any ambiguity or to amend or supplement any provision
in a manner or add any provision that would not materially adversely affect the
interests of the Certificateholders; or

         (f) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor Certificate Registrar or Certificate Paying Agent or the consent
to the assignment by the Note Registrar, Paying Agent, Indenture Trustee,
Certificate Registrar or Certificate Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.

         Section 4.07 ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN
MATTERS. The Owner Trustee shall not have the power, except upon the direction
of the Certificateholders, and with the consent of the Credit Enhancer, to (a)
remove the Administrator under the Administration Agreement pursuant to Section
8 thereof, (b) appoint a successor Administrator pursuant to Section 8 of the
Administration Agreement, (c) remove the Servicer under the Servicing Agreement
pursuant to Sections 7.01 and 8.05 thereof or (d) except as expressly provided
in the Basic Documents, sell the Mortgage Collateral after the termination of
the Indenture. The Owner Trustee shall take the actions referred to in the
preceding sentence only upon written instructions signed by the
Certificateholders and with the consent of the Credit Enhancer.

         Section 4.08 ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY.
The Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the unanimous prior approval of all
Certificateholders and with the consent of the Credit Enhancer and the delivery
to the Owner Trustee by each such Certificateholder of a certificate certifying
that such Certificateholder reasonably believes that the Trust is insolvent.

         Section 4.09 RESTRICTIONS ON CERTIFICATEHOLDERS' POWER. The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic
Documents or would be contrary to Section 2.03, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

         Section 4.10 MAJORITY CONTROL. Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Trust Agreement
may be taken by the Holders of Certificates evidencing not less than a majority
of the outstanding Principal Balance of the Certificates. Except as expressly
provided herein, any written notice of the Certificateholders delivered pursuant
to this Trust Agreement shall be effective if signed by holders of Certificates
evidencing not less than a majority of the outstanding Principal Balance of the
Certificates at the time of the delivery of such notice.

                                   ARTICLE V

                           APPLICATION OF TRUST FUNDS

         Section 5.01 DISTRIBUTIONS. (a) On each Payment Date, the Certificate
Paying Agent shall distribute to the Certificateholders all funds on deposit in
the Certificate Distribution Account and available therefor (as provided in
Section 3.05 of the Indenture), as principal and the Certificate Distribution
Amount for such Payment Date. All distributions made pursuant to this Section
shall be made on a pro rata basis to the Certificateholders based on the
Certificate Principal Balances thereof; provided however that any amount on
deposit in the Certificate Distribution Account relating to a payment to the
Certificate Paying Agent pursuant to Section 3.05(xi) of the Indenture shall be
distributed solely to the Designated Certificate.

         (b) In the event that any withholding tax is imposed on the
distributions (or allocations of income) to a Certificateholder, such tax shall
reduce the amount otherwise distributable to the Certificateholder in accordance
with this Section 5.01. The Certificate Paying Agent is hereby authorized and
directed to retain or cause to be retained from amounts otherwise distributable
to the Certificateholders sufficient funds for the payment of any tax that is
legally owed by the Trust (but such authorization shall not prevent the Owner
Trustee from contesting any such tax in appropriate proceedings, and withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings). The amount of any withholding tax imposed with respect to a
Certificateholder shall be treated as cash distributed to such Certificateholder
at the time it is withheld by the Certificate Paying Agent and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is
payable with respect to a distribution (such as a distribution to a non-U.S.
Certificateholder), the Certificate Paying Agent may in its sole discretion
withhold such amounts in accordance with this paragraph (b).

         (c) All calculations of the Certificate Distribution Amount on the
Certificates shall be made on the basis of the actual number of days in an
Interest Period and a year assumed to consist of 360 days.

         (d) Distributions to Certificateholders shall be subordinated to the
creditors of the Trust, including the Noteholders.

         Section 5.02 METHOD OF PAYMENT. Subject to Section 8.01(c),
distributions required to be made to Certificateholders on any Payment Date as
provided in Section 5.01 shall be made to each Certificateholder of record on
the preceding Record Date either by, in the case of any Certificateholder owning
Certificates having denominations aggregating at least $1,000,000, wire
transfer, in immediately available funds, to the account of such Holder at a
bank or other entity having appropriate facilities therefor, if such
Certificateholder shall have provided to the Certificate Registrar appropriate
written instructions at least five Business Days prior to such Payment Date or,
if not, by check mailed to such Certificateholder at the address of such Holder
appearing in the Certificate Register.

         Section 5.03 SIGNATURE ON RETURNS. The Owner Trustee shall sign on
behalf of the Trust the tax returns of the Trust.

         Section 5.04 STATEMENTS TO CERTIFICATEHOLDERS. On each Payment Date,
the Certificate Paying Agent shall send to each Certificateholder the statement
or statements provided to the Owner Trustee and the Certificate Paying Agent by
the Servicer pursuant to Section 4.01 of the Servicing Agreement with respect to
such Distribution Date.

         Section 5.05 TAX REPORTING; TAX ELECTIONS. The Holder of the
Certificate shall cause the Trust to file federal and state income tax returns
and information statements as a corporation for each of its taxable years.
Within 90 days after the end of each calendar year, the Holder of the Designated
Certificate shall cause the Trust to provide to each Certificateholder an
Internal Revenue Service "K-1" or any successor schedule and supplemental
information, if required by law, to enable each Certificateholder to file its
federal and state income tax returns. The Holder of the Designated Certificate
may from time to time make and revoke such tax elections with respect to the
Trust as it deems necessary or desirable in its sole discretion to carry out the
business of the Trust or the purposes of this Trust Agreement if permitted by
applicable law. Notwithstanding the foregoing, an election under Section 754 of
the Code shall not be made without the written consent of a majority in interest
of the Holders of the Certificates. The Holder of the Designated Certificate
shall serve as tax matters partner for the Trust.

                                   ARTICLE VI

                              CONCERNING THE OWNER
                                     TRUSTEE

         Section 6.01 ACCEPTANCE OF TRUSTS AND DUTIES. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Trust Agreement. The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually received by it constituting part of the Owner Trust Estate upon the
terms of the Basic Documents and this Trust Agreement. The Owner Trustee shall
not be answerable or accountable hereunder or under any Basic Document under any
circumstances, except (i) for its own willful misconduct, negligence or bad
faith or negligent failure to act or (ii) in the case of the inaccuracy of any
representation or warranty contained in Section 6.03 expressly made by the Owner
Trustee. In particular, but not by way of limitation (and subject to the
exceptions set forth in the preceding sentence):

         (a) The Owner Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in accordance with the instructions of the
Administrator or the Certificateholders;

         (b) No provision of this Trust Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights, duties or powers
hereunder or under any Basic Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured or provided to it;

         (c) Under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

         (d) The Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Trust Agreement or for the due execution hereof
by the Depositor or the Holder of the Designated Certificate or for the form,
character, genuineness, sufficiency, value or validity of any of the Owner Trust
Estate, or for or in respect of the validity or sufficiency of the Basic
Documents, the Notes, the Certificates, other than the certificate of
authentication on the Certificates, if executed by the Owner Trustee and the
Owner Trustee shall in no event assume or incur any liability, duty, or
obligation to any Noteholder or to any Certificateholder, other than as
expressly provided for herein or expressly agreed to in the Basic Documents;

         (e) The execution, delivery, authentication and performance by it of
this Trust Agreement will not require the authorization, consent or approval of,
the giving of notice to, the filing or registration with, or the taking of any
other action with respect to, any governmental authority or agency;

         (f) The Owner Trustee shall not be liable for the default or misconduct
of the Administrator, the Holder of the Designated Certificate, the Depositor,
Indenture Trustee or the Servicer under any of the Basic Documents or otherwise
and the Owner Trustee shall have no obligation or liability to perform the
obligations of the Trust under this Trust Agreement or the Basic Documents that
are required to be performed by the Administrator under the Administration
Agreement, the Indenture Trustee under the Indenture or the Seller under the
Mortgage Loan Purchase Agreement; and

         (g) The Owner Trustee shall be under no obligation to exercise any of
the rights or powers vested in it or duties imposed by this Trust Agreement, or
to institute, conduct or defend any litigation under this Trust Agreement or
otherwise or in relation to this Trust Agreement or any Basic Document, at the
request, order or direction of any of the Certificateholders, unless such
Certificateholders have offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any discretionary act enumerated in this Trust Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its negligence or willful misconduct in the
performance of any such act.

         Section 6.02 FURNISHING OF DOCUMENTS. The Owner Trustee shall furnish
to the Securityholders promptly upon receipt of a written reasonable request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Trust under the Basic Documents.

         Section 6.03 REPRESENTATIONS AND WARRANTIES. The Owner Trustee hereby
represents and warrants to the Depositor, for the benefit of the
Certificateholders, that:

         (a) It is a banking corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. It has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Trust Agreement.

         (b) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Trust Agreement, and this Trust Agreement
will be executed and delivered by one of its officers who is duly authorized to
execute and deliver this Trust Agreement on its behalf.

         (c) Neither the execution nor the delivery by it of this Trust
Agreement, nor the consummation by it of the transactions contemplated hereby
nor compliance by it with any of the terms or provisions hereof will contravene
any federal or Delaware law, governmental rule or regulation governing the
banking or trust powers of the Owner Trustee or any judgment or order binding on
it, or constitute any default under its charter documents or bylaws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound.

         (d) This Trust Agreement, assuming due authorization, execution and
delivery by the Owner Trustee and the Depositor, constitutes a valid, legal and
binding obligation of the Owner Trustee, enforceable against it in accordance
with the terms hereof subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of
creditors' rights generally and to general principles of equity, regardless of
whether such enforcement is considered in a proceeding in equity or at law;

         (e) The Owner Trustee is not in default with respect to any order or
decree of any court or any order, regulation or demand of any Federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Owner Trustee or its properties or might have consequences
that would materially adversely affect its performance hereunder;

         (f) No litigation is pending or, to the best of the Owner Trustee's
knowledge, threatened against the Owner Trustee which would prohibit its
entering into this Trust Agreement or performing its obligations under this
Trust Agreement;

         Section 6.04 RELIANCE; ADVICE OF COUNSEL. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, bond, or
other document or paper believed by it to be genuine and believed by it to be
signed by the proper party or parties. The Owner Trustee may accept a certified
copy of a resolution of the board of directors or other governing body of any
corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.

         (b) In the exercise or administration of the trusts hereunder and in
the performance of its duties and obligations under this Trust Agreement or the
Basic Documents, the Owner Trustee (i) may act directly or through its agents,
attorneys, custodians or nominees (including persons acting under a power of
attorney) pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents,
attorneys , custodians or nominees (including persons acting under a power of
attorney) if such persons have been selected by the Owner Trustee with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it. The
Owner Trustee shall not be liable for anything done, suffered or omitted in good
faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such Persons and not contrary to this Trust
Agreement or any Basic Document.

         Section 6.05 NOT ACTING IN INDIVIDUAL CAPACITY. Except as provided in
this Article VI, in accepting the trusts hereby created ______________________
acts solely as Owner Trustee hereunder and not in its individual capacity, and
all Persons having any claim against the Owner Trustee by reason of the
transactions contemplated by this Trust Agreement or any Basic Document shall
look only to the Owner Trust Estate for payment or satisfaction thereof.

         Section 6.06 OWNER TRUSTEE NOT LIABLE FOR CERTIFICATES OR RELATED
DOCUMENTS. The recitals contained herein and in the Certificates (other than the
signatures of the Owner Trustee on the Certificates) shall be taken as the
statements of the Depositor, and the Owner Trustee assumes no responsibility for
the correctness thereof. The Owner Trustee makes no representations as to the
validity or sufficiency of this Trust Agreement, of any Basic Document or of the
Certificates (other than the signatures of the Owner Trustee on the
Certificates) or the Notes, or of any Related Documents. The Owner Trustee shall
at no time have any responsibility or liability with respect to the sufficiency
of the Owner Trust Estate or its ability to generate the payments to be
distributed to Certificateholders under this Trust Agreement or the Noteholders
under the Indenture, including, the compliance by the Depositor or the Seller
with any warranty or representation made under any Basic Document or in any
related document or the accuracy of any such warranty or representation, or any
action of the Administrator, the Certificate Paying Agent, the Certificate
Registrar or the Indenture Trustee taken in the name of the Owner Trustee.

         Section 6.07 OWNER TRUSTEE MAY OWN CERTIFICATES AND NOTES. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee
of Certificates or Notes and may deal with the Depositor, the Seller, the
Certificate Paying Agent, the Certificate Registrar, the Administrator and the
Indenture Trustee in transactions with the same rights as it would have if it
were not Owner Trustee.

                                  ARTICLE VII

                              COMPENSATION OF OWNER
                                     TRUSTEE

         Section 7.01 OWNER TRUSTEE'S FEES AND EXPENSES. The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof, and the Owner Trustee shall be
reimbursed for its reasonable expenses hereunder and under the Basic Documents,
including the reasonable compensation, expenses and disbursements of such
agents, representatives, experts and counsel as the Owner Trustee may reasonably
employ in connection with the exercise and performance of its rights and its
duties hereunder and under the Basic Documents pursuant to Section 3.08 of the
Servicing Agreement.

         Section 7.02 INDEMNIFICATION. The Holder of the Designated Certificate
shall indemnify, defend and hold harmless the Owner Trustee and its successors,
assigns, agents and servants (collectively, the "Indemnified Parties") from and
against, any and all liabilities, obligations, losses, damages, taxes, claims,
actions and suits, and any and all reasonable costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "Expenses") which may at any time be imposed on, incurred by, or
asserted against the Owner Trustee or any Indemnified Party in any way relating
to or arising out of this Trust Agreement, the Basic Documents, the Owner Trust
Estate, the administration of the Owner Trust Estate or the action or inaction
of the Owner Trustee hereunder, provided, that:

                  (i) the Holder of the Designated Certificate shall not be
         liable for or required to indemnify an Indemnified Party from and
         against Expenses arising or resulting from the Owner Trustee's willful
         misconduct, negligence or bad faith or as a result of any inaccuracy of
         a representation or warranty contained in Section 6.03 expressly made
         by the Owner Trustee;

                  (ii) with respect to any such claim, the Indemnified Party
         shall have given the Holder of the Designated Certificate written
         notice thereof promptly after the Indemnified Party shall have actual
         knowledge thereof;

                  (iii) while maintaining control over its own defense, the
         Holder of the Designated Certificate shall consult with the Indemnified
         Party in preparing such defense; and

                  (iv) notwithstanding anything in this Agreement to the
         contrary, the Holder of the Designated Certificate shall not be liable
         for settlement of any claim by an Indemnified Party entered into
         without the prior consent of the Holder of the Designated Certificate
         which consent shall not be unreasonably withheld.

         The indemnities contained in this Section shall survive the resignation
or termination of the Owner Trustee or the termination of this Trust Agreement.
In the event of any claim, action or proceeding for which indemnity will be
sought pursuant to this Section, the Owner Trustee's choice of legal counsel, if
other than the legal counsel retained by the Owner Trustee in connection with
the execution and delivery of this Trust Agreement, shall be subject to the
approval of the Holder of the Designated Certificate, which approval shall not
be unreasonably withheld. In addition, upon written notice to the Owner Trustee
and with the consent of the Owner Trustee which consent shall not be
unreasonably withheld, the Holder of the Designated Certificate has the right to
assume the defense of any claim, action or proceeding against the Owner Trustee.

                                  ARTICLE VIII

                              TERMINATION OF TRUST
                                    AGREEMENT

         Section 8.01 TERMINATION OF TRUST AGREEMENT. (a) This Trust Agreement
(other than Article VIII) and the Trust shall terminate and be of no further
force or effect upon the earliest of (i) upon the final distribution of all
moneys or other property or proceeds of the Owner Trust Estate in accordance
with the terms of the Indenture and this Trust Agreement, (ii) the Payment Date
in ____________, (iii) at the time provided in Section 8.02 or (iv) purchase by
the Servicer of all Mortgage Loans pursuant to Section 8.08 of the Servicing
Agreement. The bankruptcy, liquidation, dissolution, death or incapacity of any
Certificateholder, other than the Holder of the Designated Certificate as
described in Section 8.02, shall not (x) operate to terminate this Trust
Agreement or the Trust or (y) entitle such Certificateholder's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or the Owner Trust Estate or (z) otherwise affect the rights, obligations
and liabilities of the parties hereto.

         (b) Except as provided in Section 8.01(a), none of the Depositor, the
Holder of the Designated Certificate or any other Certificateholder shall be
entitled to revoke or terminate the Trust.

         (c) Notice of any termination of the Trust, specifying the Payment Date
upon which Certificateholders shall surrender their Certificates to the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate Paying Agent by letter to Certificateholders
and the Credit Enhancer mailed within five Business Days of receipt of notice of
such termination from the Administrator, stating (i) the Payment Date upon or
with respect to which final payment of the Certificates shall be made upon
presentation and surrender of the Certificates at the office of the Certificate
Paying Agent therein designated, (ii) the amount of any such final payment and
(iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Certificate Payment Agent therein specified.
The Certificate Paying Agent shall give such notice to the Owner Trustee and the
Certificate Registrar at the time such notice is given to Certificateholders.
Upon presentation and surrender of the Certificates, the Certificate Paying
Agent shall cause to be distributed to Certificateholders amounts distributable
on such Payment Date pursuant to Section 5.01.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the date specified
in the above mentioned written notice, the Certificate Paying Agent shall give a
second written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. Subject to applicable laws with respect to escheat of funds, if within
one year following the Payment Date on which final payment of the Certificates
was to have been made pursuant to Section 3.03 of the Indenture, all the
Certificates shall not have been surrendered for cancellation, the Certificate
Paying Agent may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets that shall remain subject to this Trust Agreement. Any
funds remaining in the Certificate Distribution Account after exhaustion of such
remedies shall be distributed by the Certificate Paying Agent to the Holder of
the Designated Certificate.

         (d) Upon the winding up of the Trust and its termination, the Owner
Trustee shall cause the Certificate of Trust to be cancelled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810(c) of the Statutory Trust Statute.

Section 8.02 DISSOLUTION UPON BANKRUPTCY OF THE HOLDER OF THE DESIGNATED
CERTIFICATE. In the event that an Insolvency Event shall occur with respect to
the Holder of the Designated Certificate, this Trust Agreement and the Trust
shall be terminated in accordance with Section 8.01, 90 days after the date of
such Insolvency Event, unless, before the end of such 90-day period, the Owner
Trustee shall have received written instructions from (a) if no Credit Enhancer
Default shall have occurred and be continuing, Holders of Certificates (other
than the Holder of the Designated Certificate) representing more than 50% of the
Principal Balance of the Certificates (not including the Principal Balance of
the Designated Certificate), to the effect that such Holders disapprove of the
termination of the Trust or (b) if a Credit Enhancer Default shall have occurred
and be continuing, (i) each of the Holders of Certificates and (ii) each of the
Holders of the Notes, to the effect that such Holders disapprove of the
termination of the Trust. Promptly after the occurrence of any Insolvency Event
with respect to the Holder of the Designated Certificate (A) the Holder of the
Designated Certificate shall give the Indenture Trustee, the Credit Enhancer and
the Owner Trustee written notice of such Insolvency Event, (B) the Owner Trustee
shall, upon the receipt of such written notice from the Holder of the Designated
Certificate, give prompt written notice to the Certificateholders of the
occurrence of such event and (C) the Indenture Trustee shall give prompt written
notice of such event to the Noteholders; provided, however, that any failure to
give a notice required by this sentence shall not prevent or delay, in any
manner, a termination of the Trust pursuant to the first sentence of this
Section 8.02. Upon a termination pursuant to this Section, the Owner Trustee
shall direct the Indenture Trustee promptly to sell the assets of the Trust
(other than the Payment Account) in a commercially reasonable manner and on
commercially reasonable terms. The proceeds of any such sale of the assets of
the Trust shall be deposited to the Payment Account for distribution in
accordance with Section 5.04(b) of the Indenture.

                                   ARTICLE IX

                            SUCCESSOR OWNER TRUSTEES
                          AND ADDITIONAL OWNER TRUSTEES

         Section 9.01 ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Statutory Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; and
having (or having a parent that has) a rating of at least [Baa3] by [Moody's].
If such corporation shall publish reports of condition at least annually
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purpose of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section 9.01, the Owner Trustee shall resign immediately
in the manner and with the effect specified in Section 9.02.

         Section 9.02 REPLACEMENT OF OWNER TRUSTEE. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving 30 days
prior written notice thereof to the Administrator, the Credit Enhancer and the
Depositor. Upon receiving such notice of resignation, the Administrator shall
promptly appoint a successor Owner Trustee with the consent of the Credit
Enhancer which will not be unreasonably withheld, by written instrument, in
duplicate, one copy of which instrument shall be delivered to the resigning
Owner Trustee and to the successor Owner Trustee. If no successor Owner Trustee
shall have been so appointed and have accepted appointment within 30 days after
the giving of such notice of resignation, the resigning Owner Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Owner Trustee.

         If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.01 and shall fail to resign after
written request therefor by the Administrator, or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Administrator may remove the Owner
Trustee. If the Administrator shall remove the Owner Trustee under the authority
of the immediately preceding sentence, the Administrator shall promptly appoint
a successor Owner Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the outgoing Owner Trustee so removed and one
copy to the successor Owner Trustee, and shall pay all fees owed to the outgoing
Owner Trustee.

         Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

         Section 9.03 SUCCESSOR OWNER TRUSTEE. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Administrator and to its predecessor Owner Trustee an instrument accepting such
appointment under this Trust Agreement, and thereupon the resignation or removal
of the predecessor Owner Trustee shall become effective, and such successor
Owner Trustee, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
under this Trust Agreement, with like effect as if originally named as Owner
Trustee. The predecessor Owner Trustee shall upon payment of its fees and
expenses deliver to the successor Owner Trustee all documents and statements and
monies held by it under this Trust Agreement; and the Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such
other things as may reasonably be required for fully and certainly vesting and
confirming in the successor Owner Trustee all such rights, powers, duties and
obligations.

         No successor Owner Trustee shall accept appointment as provided in this
Section 9.03 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 9.03, the Administrator shall mail notice thereof to all
Certificateholders, the Indenture Trustee, the Noteholders and the Rating
Agencies. If the Administrator shall fail to mail such notice within 10 days
after acceptance of such appointment by the successor Owner Trustee, the
successor Owner Trustee shall cause such notice to be mailed at the expense of
the Administrator.

         Section 9.04 MERGER OR CONSOLIDATION OF OWNER TRUSTEE. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such Person shall be eligible pursuant to Section 9.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

         Section 9.05 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions of this Trust Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Owner Trust Estate may at the time be located, the Administrator and
the Owner Trustee acting jointly shall have the power and shall execute and
deliver all instruments to appoint one or more Persons approved by the
Administrator and Owner Trustee to act as co-trustee, jointly with the Owner
Trustee, or as separate trustee or trustees, of all or any part of the Owner
Trust Estate, and to vest in such Person, in such capacity, such title to the
Trust or any part thereof and, subject to the other provisions of this Section,
such powers, duties, obligations, rights and trusts as the Administrator and the
Owner Trustee may consider necessary or desirable. If the Administrator shall
not have joined in such appointment within 15 days after the receipt by it of a
request so to do, the Owner Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee under this Trust Agreement shall
be required to meet the terms of eligibility as a successor Owner Trustee
pursuant to Section 9.01 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 9.03.

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

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

         (b) No trustee under this Trust Agreement shall be personally liable by
reason of any act or omission of any other trustee under this Trust Agreement;
and

         (c) The Administrator and the Owner Trustee acting jointly may at any
time accept the resignation of or remove any separate trustee or co-trustee.

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

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

                                   ARTICLE X

                                  MISCELLANEOUS

         Section 10.01 AMENDMENTS. (a) This Trust Agreement may be amended from
time to time by the parties hereto as specified in this Section [, provided that
any amendment, except as provided in subparagraph (e) below, be accompanied by
an Opinion of Counsel to the Owner Trustee to the effect that such amendment (i)
complies with the provisions of this Section and (ii) will not cause the Trust
to be subject to an entity level tax].

         (b) If the purpose of the amendment (as detailed therein) is to correct
any mistake, eliminate any inconsistency, cure any ambiguity or deal with any
matter not covered (i.e. to give effect to the intent of the parties and, if
applicable, to the expectations of the Holders), it shall not be necessary to
obtain the consent of any Holders, but the Owner Trustee shall be furnished with
(A) a letter from the Rating Agencies that the amendment will not result in the
downgrading or withdrawal of the rating then assigned to any Security and (B) an
Opinion of Counsel to the effect that such action will not adversely affect in
any material respect the interests of any Holders, and the consent of the Credit
Enhancer shall be obtained.

         (c) If the purpose of the amendment is to prevent the imposition of any
federal or state taxes at any time that any Security is outstanding (i.e.
technical in nature), it shall not be necessary to obtain the consent of any
Holder, but the Owner Trustee shall be furnished with an Opinion of Counsel that
such amendment is necessary or helpful to prevent the imposition of such taxes
and is not materially adverse to any Holder and the consent of the Credit
Enhancer shall be obtained.

         (d) If the purpose of the amendment is to add or eliminate or change
any provision of the Trust Agreement other than as contemplated in (b) and (c)
above, the amendment shall require (A) an Opinion of Counsel to the effect that
such action will not adversely affect in any material respect the interests of
any Holders and (B) either (a) a letter from the Rating Agency that the
amendment will not result in the downgrading or withdrawal of the rating then
assigned to any security or (b) the consent of Holders of Certificates
evidencing a majority of the Principal Balance of the Certificates and the
Indenture Trustee; provided, however, that no such amendment shall (i) reduce in
any manner the amount of, or delay the timing of, payments received that are
required to be distributed on any Certificate without the consent of the related
Certificateholder and the Credit Enhancer, or (ii) reduce the aforesaid
percentage of Certificates the Holders of which are required to consent to any
such amendment, without the consent of the Holders of all such Certificates then
outstanding.

         (e) If the purpose of the amendment is to provide for the holding of
any of the Certificates in book-entry form, it shall require the consent of
Holders of all such Certificates then outstanding; provided, that the Opinion of
Counsel specified in subparagraph (a) above shall not be required.

         (f) If the purpose of the amendment is to provide for the issuance of
additional certificates representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Holder, but the Owner Trustee shall be
furnished with (A) an Opinion of Counsel to the effect that such action will not
adversely affect in any material respect the interests of any Holders and (B) a
letter from the Rating Agencies that the amendment will not result in the
downgrading or withdrawal of the rating then assigned to any Security and the
consent of the Credit Enhancer shall be obtained.

         (g) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Certificateholder, the Indenture Trustee, the
Credit Enhancer and each of the Rating Agencies. It shall not be necessary for
the consent of Certificateholders or the Indenture Trustee pursuant to this
Section 10.01 to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents (and any other consents of
Certificateholders provided for in this Trust Agreement or in any other Basic
Document) and of evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

         (h) In connection with the execution of any amendment to any agreement
to which the Trust is a party, other than this Trust Agreement, the Owner
Trustee shall be entitled to receive and conclusively rely upon an Opinion of
Counsel to the effect that such amendment is authorized or permitted by the
documents subject to such amendment and that all conditions precedent in the
Basic Documents for the execution and delivery thereof by the Trust or the Owner
Trustee, as the case may be, have been satisfied.

         Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall cause the filing of such amendment with the
Secretary of State of the State of Delaware.

         Section 10.02 NO LEGAL TITLE TO OWNER TRUST ESTATE. The
Certificateholders shall not have legal title to any part of the Owner Trust
Estate. The Certificateholders shall be entitled to receive distributions with
respect to their undivided beneficial interest therein only in accordance with
Articles V and IX. No transfer, by operation of law or otherwise, of any right,
title or interest of the Certificateholders to and in their ownership interest
in the Owner Trust Estate shall operate to terminate this Trust Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer
to it of legal title to any part of the Owner Trust Estate.

         Section 10.03 LIMITATIONS ON RIGHTS OF OTHERS. Except for Section 2.07,
the provisions of this Trust Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Holder of the Designated Certificate, the
Certificateholders, the Administrator, the Credit Enhancer and, to the extent
expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Trust Agreement (other than Section 2.07), whether express or
implied, shall be construed to give to any other Person any legal or equitable
right, remedy or claim in the Owner Trust Estate or under or in respect of this
Trust Agreement or any covenants, conditions or provisions contained herein.

         Section 10.04 NOTICES. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt , if to the Owner Trustee, addressed to the Corporate
Trust Office; if to the Depositor, addressed to American Home Mortgage Assets
LLC, ______________________________; Attention: _________________; if to the
Credit Enhancer, addressed to ___________, Attention: _________________, if to
the Rating Agencies, addressed to ________________________ Attention:
__________or, as to each party, at such other address as shall be designated by
such party in a written notice to each other party.

         (b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Trust Agreement shall be conclusively presumed to have
been duly given, whether or not the Certificateholder receives such notice.

         (c) A copy of any notice delivered to the Owner Trustee or the Trust
shall also be delivered to the Depositor and the Administrator.

         Section 10.05 SEVERABILITY. Any provision of this Trust Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         Section 10.06 SEPARATE COUNTERPARTS. This Trust Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

         Section 10.07 SUCCESSORS AND ASSIGNS. All representations, warranties,
covenants and agreements contained herein shall be binding upon, and inure to
the benefit of, each of the Depositor, the Owner Trustee and its successors and
each Certificateholder and its successors and permitted assigns, all as herein
provided and the Credit Enhancer. Any request, notice, direction, consent,
waiver or other instrument or action by a Certificateholder shall bind the
successors and assigns of such Certificateholder.

         Section 10.08 [NO PETITION. The Owner Trustee, by entering into this
Trust Agreement and each Certificateholder, by accepting a Certificate, hereby
covenant and agree that they will not at any time institute against the
Depositor or the Trust, or join in any institution against the Depositor or the
Trust of, any bankruptcy proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations to the
Certificates, the Notes, this Trust Agreement or any of the Basic Documents.]

         Section 10.09 NO RECOURSE. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Trust only and do not represent interests in or
obligations of the Depositor, the Holder of the Designated Certificate, the
Seller, the Administrator, the Owner Trustee, the Indenture Trustee or any
Affiliate thereof and no recourse may be had against such parties or their
assets, except as may be expressly set forth or contemplated in this Trust
Agreement, the Certificates or the Basic Documents.

         Section 10.10 HEADINGS. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

         Section 10.11 GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 10.12 INTEGRATION. This Trust Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understanding pertaining thereto.

<PAGE>

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

                                       AMERICAN HOME MORTGAGE ASSETS LLC

                                       By:_____________________________________
                                          Name:
                                          Title:

                                       ______________________,  not  in its
                                       individual  capacity but solely as Owner
                                       Trustee

                                       By:_____________________________________
                                          Name:
                                          Title:

Acknowledged and Agreed:
___________________________________
__________, as Certificate Registrar
and Certificate Paying Agent

By:_____________________________________
   Name:
   Title:

<PAGE>

                                    EXHIBIT A

                              [Form of Certificate]

                                     [Face]

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED
TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR SHALL HAVE RECEIVED EITHER (I) A REPRESENTATION LETTER FROM THE
TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN
EMPLOYEE BENEFIT PLAN SUBJECT TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR A
PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF ANY SUCH PLAN,
OR (II) IF THIS CERTIFICATE IS PRESENTED FOR REGISTRATION IN THE NAME OF A PLAN
SUBJECT TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA, OR SECTION 4975 OF
THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE
OF ANY SUCH PLAN, OR ANY OTHER PERSON WHO IS USING THE ASSETS OF ANY SUCH PLAN
TO EFFECT SUCH ACQUISITION, AN OPINION OF COUNSEL TO THE EFFECT THAT THE
PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN THE ASSETS OF THE
OWNER TRUST ESTATE BEING DEEMED TO BE "PLAN ASSETS" AND SUBJECT TO THE FIDUCIARY
RESPONSIBILITY PROVISIONS OF ERISA OR THE PROHIBITED TRANSACTION PROVISIONS OF
THE CODE, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION WITHIN THE
MEANING OF SECTION 406 OR SECTION 407 OF ERISA OR SECTION 4975 OF THE CODE, AND
WILL NOT SUBJECT THE OWNER TRUSTEE OR THE DEPOSITOR TO ANY OBLIGATION OR
LIABILITY.

         NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS
TO THE TRANSFEREE'S STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

         THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE DEPOSITOR, THE SERVICER, THE INDENTURE TRUSTEE, OR THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE TRUST
AGREEMENT OR THE BASIC DOCUMENTS.

<TABLE>
<CAPTION>
<S>                                          <C>
Certificate No. ____                         Original principal amount ("Denomination")
                                             of this Certificate:  $______________

Aggregate Denominations of all Certificates: $

Pass-Through Rate:  Floating

Cut-Off Date:

First Payment Date:        -----------, ----

CUSIP NO. __________
</TABLE>

              AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_

         Evidencing a fractional undivided equity interest in the Owner Trust
Estate, the property of which consists primarily of the Mortgage Collateral in
_________________________, a corporation sold by AMERICAN HOME MORTGAGE ASSETS
LLC, as depositor.

         This certifies that [name of Holder] is the registered owner of the
Percentage Interest represented hereby in the American Home Mortgage Assets LLC
Trust Series 200_-_ (the "Trust").

         The Trust was created pursuant to an Trust Agreement dated as of (as
amended and supplemented from time to time, the "Trust Agreement") between the
Depositor and ______________________, as owner trustee (as amended and
supplemented from time to time, the "Owner Trustee", which term includes any
successor entity under the Trust Agreement), a summary of certain of the
pertinent provisions of which is set forth hereinafter. This Certificate is
issued under and is subject to the terms, provisions and conditions of the Trust
Agreement, to which Trust Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which such Holder is bound.

         This Certificate is one of a duly authorized issue of Mortgage-Backed
Certificates, Series 200_-__ (herein called the "Certificates") issued under the
Trust Agreement to which reference is hereby made for a statement of the
respective rights thereunder of the Depositor, the Owner Trustee and the Holders
of the Certificates and the terms upon which the Certificates are executed and
delivered. All terms used in this Certificate which are defined in the Trust
Agreement shall have the meanings assigned to them in the Trust Agreement. The
Owner Trust Estate consists of the Mortgage Collateral in the American Home
Mortgage Assets LLC Trust Series 200_-____ and a Surety Bond. The rights of the
Holders of the Certificates are subordinated to the rights of the Holders of the
Notes, as set forth in the [Indenture].

         There will be distributed on the [twenty-fifth] day of each month or,
if such day is not a Business Day, the next Business Day (each, a "Payment
Date"), commencing in _____________, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of
the month preceding the month of such Payment Date (the "Record Date"), such
Certificateholder's Percentage Interest (obtained by dividing the Denomination
of this Certificate by the aggregate Denominations of all Certificates) in the
amount to be distributed to Certificateholders on such Payment Date.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Payment Account that
have been released from the Lien of the Indenture for payment hereunder and that
neither the Owner Trustee in its individual capacity nor the Depositor is
personally liable to the Certificateholders for any amount payable under this
Certificate or the Trust Agreement or, except as expressly provided in the Trust
Agreement, subject to any liability under the Trust Agreement.

         The Holder of this Certificate acknowledges and agrees that its rights
to receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Indenture, dated as of _________,
____, between the Trust and __________________________________, as Indenture
Trustee (the "Indenture").

         It is the intent of the Depositor and the Certificateholders that, for
purposes of federal income, state and local income and single business tax and
any other income taxes, the Trust will be treated as a corporation. The
Depositor and each Certificateholder, by acceptance of a Certificate, agree to
treat, and to take no action inconsistent with the treatment of, the
Certificates for such tax purposes as an equity interest in a corporation.

         Each Certificateholder, by its acceptance of a Certificate, covenants
and agrees that such Certificateholder will not at any time institute against
the Depositor, or join in any institution against the Depositor or the Trust of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the
Certificates, the Notes, the Trust Agreement or any of the Basic Documents.

         Distributions on this Certificate will be made as provided in the Trust
Agreement by the Certificate Paying Agent by wire transfer or check mailed to
the Certificateholder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon. Except as otherwise provided in the Trust Agreement and notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Certificate Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the Certificate Registrar for that purpose by the Trust in the
Borough of Manhattan, The City of New York.

         Reference is hereby made to the further provisions of this Certificate
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, or an authenticating
agent by manual signature, this Certificate shall not entitle the Holder hereof
to any benefit under the Trust Agreement or be valid for any purpose.

<PAGE>

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

<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Certificate to be duly executed.

                                        AMERICAN HOME MORTGAGE ASSETS LLC
                                        TRUST SERIES 200_-_

                                        by _____________________,  not in its
                                        individual capacity but solely as Owner
                                        Trustee

Dated:                                  _______________________________________
                                        Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Trust
Agreement.

                                            ,
not in its individual capacity
but solely as Owner Trustee

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

or
   -----------------------------------------
   as Authenticating Agent of the Trust

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

<PAGE>

                            [REVERSE OF CERTIFICATE]

         The Certificates do not represent an obligation of, or an interest in,
the Depositor, the Seller, the Servicer, the Indenture Trustee, the Owner
Trustee or any Affiliates of any of them and no recourse may be had against such
parties or their assets, except as expressly set forth or contemplated herein or
in the Trust Agreement or the Basic Documents. In addition, this Certificate is
not guaranteed by any governmental agency or instrumentality and is limited in
right of payment to certain collections and recoveries with respect to the
Mortgage Collateral, all as more specifically set forth herein. A copy of the
Trust Agreement may be examined by any Certificateholder upon written request
during normal business hours at the principal office of the Depositor and at
such other places, if any, designated by the Depositor.

         The Trust Agreement permits the amendment thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Trust Agreement and will not cause the Trust
to be subject to an entity level tax. If the purpose of the amendment is to
correct any mistake, eliminate any inconsistency, cure any ambiguity or deal
with any matter not covered, it shall not be necessary to obtain the consent of
any Holder, but the Owner Trustee shall be furnished with a letter from the
Rating Agencies that the amendment will not result in the downgrading or
withdrawal of the rating then assigned to any Security. If the purpose of the
amendment is to prevent the imposition of any federal or state taxes at any time
that any Security is outstanding, it shall not be necessary to obtain the
consent of the any Holder, but the Owner Trustee shall be furnished with an
Opinion of Counsel that such amendment is necessary or helpful to prevent the
imposition of such taxes and is not materially adverse to any Holder. If the
purpose of the amendment is to add or eliminate or change any provision of the
Trust Agreement, other than as specified in the preceding two sentences, the
amendment shall require either (a) a letter from the Rating Agencies that the
amendment will not result in the downgrading or withdrawal of the rating then
assigned to any Security or (b) the consent of Holders of the Certificates
evidencing a majority of the Percentage Interests of the Certificates and the
Indenture Trustee; PROVIDED, HOWEVER, that no such amendment shall (i) reduce in
any manner the amount of, or delay the time of, payments received that are
required to be distributed on any Certificate without the consent of the related
Certificateholder, or (ii) reduce the aforesaid percentage of Certificates the
Holders of which are required to consent to any such amendment without the
consent of the Holders of all such Certificates then outstanding.

         As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Trust in the Borough of Manhattan, The City of New York, accompanied by a
written instrument of transfer in form satisfactory to the Certificate Registrar
duly executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
evidencing the same aggregate interest in the Trust will be issued to the
designated transferee. The initial Certificate Registrar appointed under the
Trust Agreement is __________________________________.

         Except as provided in the Trust Agreement, the Certificates are
issuable only in minimum denominations of $10,000 and in integral multiples of
$10,000 in excess thereof, except for one Certificate that may not be in an
integral multiple of $10,000. As provided in the Trust Agreement and subject to
certain limitations therein set forth, Certificates are exchangeable for new
Certificates of authorized denominations evidencing the same aggregate
denomination, as requested by the Holder surrendering the same. No service
charge will be made for any such registration of transfer or exchange, but the
Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge payable in connection
therewith.

         The Owner Trustee, the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate Registrar or any such agent shall
be affected by any notice to the contrary.

         The obligations and responsibilities created by the Trust Agreement and
the Trust created thereby shall terminate (i) upon the final distribution of all
moneys or other property or proceeds of the Owner Trust Estate in accordance
with the terms of the Indenture and the Trust Agreement, (ii) the Payment Date
in ____________, or (iii) upon the bankruptcy or insolvency of the Holder of the
Designated Certificate and the satisfaction of other conditions specified in
Section 8.02 of the Trust Agreement.

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing to transfer said Certificate on the books of the
Certificate Registrar, with full power of substitution in the premises.

Dated:

                                                                             */
                                        ----------------------------------------
                                                Signature Guaranteed:

                                                                             */
                                        ----------------------------------------

----------
*/ NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be
guaranteed by a member firm of the New York Stock Exchange or a commercial bank
or trust company.

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for the information of the
Certificate Paying Agent:

         Distribution shall be made by wire transfer in immediately available
funds to ___________________________________________________________ for the
account of ________________________________________, account number
______________, or, if mailed by check, to ______________.

         Applicable statements should be mailed to__________________.

                                   _________________________________________
                                   Signature of assignee or agent
                                   (for authorization of wire transfer only)

<PAGE>

                                    EXHIBIT B
                             TO THE TRUST AGREEMENT

                             CERTIFICATE OF TRUST OF
              AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_

         THIS Certificate of Trust of American Home Mortgage Assets LLC Trust
Series 200_-_ (the "Trust"), dated ___________, ____, is being duly executed and
filed by ______________________, a Delaware banking corporation, as trustee, to
form a statutory trust under the Delaware Statutory Trust Act (12 DEL. CODE, ss.
3801 ET SEQ.).

         1. NAME. The name of the statutory trust formed hereby is American Home
Mortgage Assets LLC Trust Series 200_-_.

         2. DELAWARE TRUSTEE. The name and business address of the trustee of
the Trust in the State of Delaware is ______________________,
__________________, __________, ______________, Attention:
______________________________.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust as of the date first above
written.

                                      not in its individual capacity but
                                      solely as owner trustee under a Trust
                                      Agreement dated as of _________, ___,

                                      By:___________________________________
                                         Name:
                                         Title:

<PAGE>

                                       C-8

                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

                       _________________________________
                       _________________________________
                       _________________________________
                       _________________________________

         The undersigned seller, as registered holder (the "Seller"), intends to
transfer the Rule 144A Securities described above to the undersigned buyer (the
"Buyer").

         1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the Seller
hereby certifies the following facts: Neither the Seller nor anyone acting on
its behalf has offered, transferred, pledged, sold or otherwise disposed of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

         2. The Buyer warrants and represents to, and covenants with, the Owner
Trustee and the Depositor (as defined in the Trust Agreement (the "Agreement"),
dated as of _________, ____ between American Home Mortgage Assets LLC, as
Depositor and ______________________, as Owner Trustee pursuant to Section 3.05
of the Agreement and __________________________________ as indenture trustee, as
follows:

                  a. The Buyer understands that the Rule 144A Securities have
         not been registered under the 1933 Act or the securities laws of any
         state.

                  b. The Buyer considers itself a substantial, sophisticated
         institutional investor having such knowledge and experience in
         financial and business matters that it is capable of evaluating the
         merits and risks of investment in the Rule 144A Securities.

                  c. The Buyer has been furnished with all information regarding
         the Rule 144A Securities that it has requested from the Seller, the
         Indenture Trustee, the Owner Trustee or the Servicer.

                  d. Neither the Buyer nor anyone acting on its behalf has
         offered, transferred, pledged, sold or otherwise disposed of the Rule
         144A Securities, any interest in the Rule 144A Securities or any other
         similar security to, or solicited any offer to buy or accept a
         transfer, pledge or other disposition of the Rule 144A Securities, any
         interest in the Rule 144A Securities or any other similar security
         from, or otherwise approached or negotiated with respect to the Rule
         144A Securities, any interest in the Rule 144A Securities or any other
         similar security with, any person in any manner, or made any general
         solicitation by means of general advertising or in any other manner, or
         taken any other action, that would constitute a distribution of the
         Rule 144A Securities under the 1933 Act or that would render the
         disposition of the Rule 144A Securities a violation of Section 5 of the
         1933 Act or require registration pursuant thereto, nor will it act, nor
         has it authorized or will it authorize any person to act, in such
         manner with respect to the Rule 144A Securities.

                  e. The Buyer is a "qualified institutional buyer" as that term
         is defined in Rule 144A under the 1933 Act and has completed either of
         the forms of certification to that effect attached hereto as Annex 1 or
         Annex 2. The Buyer is aware that the sale to it is being made in
         reliance on Rule 144A. The Buyer is acquiring the Rule 144A Securities
         for its own account or the accounts of other qualified institutional
         buyers, understands that such Rule 144A Securities may be resold,
         pledged or transferred only (i) to a person reasonably believed to be a
         qualified institutional buyer that purchases for its own account or for
         the account of a qualified institutional buyer to whom notice is given
         that the resale, pledge or transfer is being made in reliance on Rule
         144A, or (ii) pursuant to another exemption from registration under the
         1933 Act.

         [3. The Buyer warrants and represents to, and covenants with, the
Seller, the Indenture Trustee, Owner Trustee, Servicer and the Depositor that
either (1) the Buyer is (A) not an employee benefit plan (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), or a plan (within the meaning of Section 4975(e)(1) of the Internal
Revenue Code of 1986 ("Code")), which (in either case) is subject to ERISA or
Section 4975 of the Code (both a "Plan"), and (B) is not directly or indirectly
purchasing the Rule 144A Securities on behalf of, as investment manager of, as
named fiduciary of, as trustee of, or with "plan assets" of a Plan, or (2) the
Buyer understands that registration of transfer of any Rule 144A Securities to
any Plan, or to any Person acting on behalf of any Plan, will not be made unless
such Plan delivers an opinion of its counsel, addressed and satisfactory to the
Certificate Registrar and the Depositor, to the effect that the purchase and
holding of the Rule 144A Securities by, on behalf of or with "plan assets" of
any Plan would not constitute or result in a prohibited transaction under
Section 406 of ERISA or Section 4975 of the Code, and would not subject the
Depositor, the Servicer, the Indenture Trustee or the Trust to any obligation or
liability (including liabilities under ERISA or Section 4975 of the Code) in
addition to those undertaken in the Agreement or any other liability.]

         4. This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

         IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

                                          :
------------------------------------            --------------------------------
Print Name of Seller                            Print Name of Buyer
                                          :
By:                                             By:
    --------------------------------                  --------------------------
         Name:                            :              Name:
         Title                                           Title
                                          :
Taxpayer Identification:                        Taxpayer Identification:
                                          :
No.                                             No.:
      ------------------------------                   -------------------------
Date:                                           Date:
      ------------------------------                   -------------------------

<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a
discretionary basis $____________________(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

         ___      CORPORATION, ETC. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or
                  charitable organization described in Section 501(c)(3) of the
                  Internal Revenue Code.

         ___      BANK. The Buyer (a) is a national bank or banking institution
                  organized under the laws of any State, territory or the
                  District of Columbia, the business of which is substantially
                  confined to banking and is supervised by the State or
                  territorial banking commission or similar official or is a
                  foreign bank or equivalent institution, and (b) has an audited
                  net worth of at least $25,000,000 as demonstrated in its
                  latest annual financial statements, a copy of which is
                  attached hereto.

         ___      SAVINGS AND LOAN. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements.

         ___      BROKER-DEALER.  The Buyer is a dealer registered pursuant to
                  Section  15 of the  Securities Exchange Act of 1934.

         ___      INSURANCE COMPANY. The Buyer is an insurance company whose
                  primary and predominant business activity is the writing of
                  insurance or the reinsuring of risks underwritten by insurance
                  companies and which is subject to supervision by the insurance
                  commissioner or a similar official or agency of a State or
                  territory or the District of Columbia.

         ___      STATE OR LOCAL PLAN. The Buyer is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

         ___      ERISA PLAN. The Buyer is an employee benefit plan within the
                  meaning of Title I of the Employee Retirement Income Security
                  Act of 1974.

         ___      INVESTMENT ADVISER. The Buyer is an investment adviser
                  registered under the Investment Advisers Act of 1940.

         ___      SBIC. The Buyer is a Small Business Investment Company
                  licensed by the U.S. Small Business Administration under
                  Section 301(c) or (d) of the Small Business Investment Act of
                  1958.

         ___      BUSINESS DEVELOPMENT COMPANY. The Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisers Act of 1940.

         ___      TRUST FUND. The Buyer is a trust fund whose trustee is a bank
                  or trust company and whose participants are exclusively (a)
                  plans established and maintained by a State, its political
                  subdivisions, or any agency or instrumentality of the State or
                  its political subdivisions, for the benefit of its employees,
                  or (b) employee benefit plans within the meaning of Title I of
                  the Employee Retirement Income Security Act of 1974, but is
                  not a trust fund that includes as participants individual
                  retirement accounts or H.R. 10 plans.

         3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

         ___      ___      Will the Buyer be purchasing the Rule 144A
         Yes      No       Securities only for the Buyer's own account?

         6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

         7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                        ------------------------------------
                                        Print Name of Buyer

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

                                        Date:
                                             -------------------------------

----------
(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used.

         ____     The Buyer owned $___________________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         ____     The Buyer is part of a Family of Investment Companies which
                  owned in the aggregate $______________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) bank deposit notes and certificates of deposit,
(iii) loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.

         5. The Buyer is familiar with Rule 144A and understands that each of
the parties to which this certification is made are relying and will continue to
rely on the statements made herein because one or more sales to the Buyer will
be in reliance on Rule 144A. In addition, the Buyer will only purchase for the
Buyer's own account.

         6. The undersigned will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                        ------------------------------------
                                        Print Name of Buyer

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

                                        IF AN ADVISOR:

                                        ------------------------------------
                                        Print Name of Buyer

                                        Date:
                                             -------------------------------

<PAGE>

                                    EXHIBIT D

                        CERTIFICATE OF NON-FOREIGN STATUS

         This Certificate of Non-Foreign Status ("certificate") is delivered
pursuant to Section 3.03 of the Trust Agreement, dated as of _________, ____
(the "Trust Agreement"), between American Home Mortgage Assets LLC, as depositor
and ______________________, as Owner Trustee, in connection with the acquisition
of, transfer to or possession by the undersigned, whether as beneficial owner
(the "Beneficial Owner"), or nominee on behalf of the Beneficial Owner of the
Mortgage-Backed Certificates, Series 200_-__ (the "Certificate"). Capitalized
terms used but not defined in this certificate have the respective meanings
given them in the Trust Agreement.

         Each holder must complete Part I, Part II (if the holder is a nominee),
and in all cases sign and otherwise complete Part III. In addition, each holder
shall submit with the Certificate an IRS Form W-9 relating to such holder.

         To confirm to the Trust that the provisions of Sections 871, 881 or
1446 of the Internal Revenue Code (relating to withholding tax on foreign
partners) do not apply in respect of the Certificate held by the undersigned,
the undersigned hereby certifies:

Part I - Complete Either A or B

         A.       Individual as Beneficial Owner

                  1.       I am (The Beneficial Owner is ) not a non-resident
                           alien for purposes of U.S. income taxation;

                  2.       My (The Beneficial Owner's) name and home address
                           are:
                           ------------------------------------------------
                           ------------------------------------------------
                           ------------------------------------------------; and

                  3.       My (The Beneficial Owner's) U.S. taxpayer
                           identification number (Social Security Number) is
                           _______________________.

         B.       Corporate, Partnership or Other Entity as Beneficial Owner

                  1.       __________________________ (Name of the Beneficial
                           Owner) is not a foreign corporation, foreign
                           partnership, foreign trust or foreign estate (as
                           those terms are defined in the Code and Treasury
                           Regulations;

                  2.       The Beneficial Owner's office address and place of
                           incorporation (if applicable) is
                           _______________________________; and

                  3.       The Beneficial Owner's U.S. employer identification
                           number is __________________________.

Part II - Nominees

         If the undersigned is the nominee for the Beneficial Owner, the
undersigned certifies that this certificate has been made in reliance upon
information contained in:

         _____    an IRS Form W-9

         _____    a form such as this or substantially similar

         provided to the undersigned by an appropriate person and (i) the
         undersigned agrees to notify the Trust at least thirty (30) days prior
         to the date that the form relied upon becomes obsolete, and (ii) in
         connection with change in Beneficial Owners, the undersigned agrees to
         submit a new Certificate of Non-Foreign Status to the Trust promptly
         after such change.

Part III - Declaration

         The undersigned, as the Beneficial Owner or a nominee thereof, agrees
to notify the Trust within sixty (60) days of the date that the Beneficial Owner
becomes a foreign person. The undersigned understands that this certificate may
be disclosed to the Internal Revenue Service by the Trust and any false
statement contained therein could be punishable by fines, imprisonment or both.

         Under penalties of perjury, I declare that I have examined this
certificate and to the best of my knowledge and belief it is true, correct and
complete and will further declare that I will inform the Trust of any change in
the information provided above, and, if applicable, I further declare that I
have the authority* to sign this document.

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

--------------------------
  Title (if applicable)

--------------------------
         Signature and Date

         *Note: If signed pursuant to a power of attorney, the power of attorney
must accompany this certificate.

<PAGE>

                                    EXHIBIT E

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

[Certificate Registrar]

         Re:      American Home Mortgage Assets LLC Trust Series 200_-_ ,
                  MORTGAGE-BACKED CERTIFICATES, SERIES 200_-__, (THE
                  "CERTIFICATES")

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates,
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Trust Agreement.

<PAGE>

                                        Very truly yours,

                                        [TRANSFEREE]

                                        By:
                                            --------------------------------
                                                  Authorized OfficerEXHIBIT 4.4

            AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_ - __

                                 Issuing Entity

                                       AND

                           [Name of Indenture Trustee]

                                INDENTURE TRUSTEE

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

                                    INDENTURE

                           Dated as of _____ __, 200_

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

                              MORTGAGE-BACKED NOTES

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

<PAGE>

                                TABLE OF CONTENTS

SECTION

ARTICLE I            Definitions................................................
   Section 1.01         Definitions.............................................
   Section 1.02         Incorporation by Reference of Trust Indenture Act.......
   Section 1.03         Rules of Construction...................................

ARTICLE II           Original Issuance of Notes.................................
   Section 2.01         Form....................................................
   Section 2.02         Execution, Authentication and Delivery..................

ARTICLE III          Covenants..................................................
   Section 3.01         Collection of Payments with Respect to the Mortgage
                        Loans................................
   Section 3.02         Maintenance of Office or Agency.........................
   Section 3.03         Money for Payments to Be Held in Trust; Paying Agent....
   Section 3.04         Existence...............................................
   Section 3.05         Payment of Principal and Interest; Defaulted Interest...
   Section 3.06         Protection of Trust Estate..............................
   Section 3.07         Opinions as to Trust Estate.............................
   Section 3.08         Performance of Obligations; Servicing Agreement.........
   Section 3.09         Negative Covenants......................................
   Section 3.10         Annual Statement as to Compliance.......................
   Section 3.11         Recording of Assignments................................
   Section 3.12         Representations and Warranties Concerning the Mortgage
                        Loans..........................
   Section 3.13         Amendments to Servicing Agreement.......................
   Section 3.14         Servicer as Agent and Bailee of the Mortgage Loans
                        Holder...............................
   Section 3.15         Investment Company Act..................................
   Section 3.16         Issuing Entity May Consolidate, Etc.....................
   Section 3.17         Successor or Transferee.................................
   Section 3.18         No Other Business.......................................
   Section 3.19         No Borrowing............................................
   Section 3.20         Guarantees, Loans, Advances and Other Liabilities.......
   Section 3.21         Capital Expenditures....................................
   Section 3.22         [Reserved]..............................................
   Section 3.23         Restricted Payments.....................................
   Section 3.24         Notice of Events of Default.............................
   Section 3.25         Further Instruments and Acts............................
   Section 3.26         Statements to Noteholders...............................
   Section 3.27         Determination of Note Interest Rate.....................
   Section 3.28         Payments under the Credit Enhancement Instrument........
   Section 3.29         Replacement Credit Enhancement Instrument...............

ARTICLE IV           The Notes; Satisfaction and Discharge of Indenture.........
   Section 4.01         The Notes...............................................
   Section 4.02         Registration of and Limitations on Transfer
                        and Exchange of Notes; Appointment of Certificate
                        Registrar...............................................
   Section 4.03         Mutilated, Destroyed, Lost or Stolen Notes..............
   Section 4.04         Persons Deemed Owners...................................
   Section 4.05         Cancellation............................................
   Section 4.06         Book-Entry Notes........................................
   Section 4.07         Notices to Depository...................................
   Section 4.08         Definitive Notes........................................
   Section 4.09         Tax Treatment...........................................
   Section 4.10         Satisfaction and Discharge of Indenture.................
   Section 4.11         Application of Trust Money..............................
   Section 4.12         Subrogation and Cooperation.............................
   Section 4.13         Repayment of Monies Held by Paying Agent................
   Section 4.14         Temporary Notes.........................................

ARTICLE V            Default and Remedies.......................................
   Section 5.01         Events of Default.......................................
   Section 5.02         Acceleration of Maturity; Rescission and Annulment......
   Section 5.03         Collection of Indebtedness and Suits for Enforcement
                        by Indenture Trustee................
   Section 5.04         Remedies; Priorities....................................
   Section 5.05         Optional Preservation of the Trust Estate...............
   Section 5.06         Limitation of Suits.....................................
   Section 5.07         Restoration of Rights and Remedies......................
   Section 5.08         Rights and Remedies Cumulative..........................
   Section 5.09         Delay or Omission Not a Waiver..........................
   Section 5.10         Control by Noteholders..................................
   Section 5.11         Waiver of Past Defaults.................................
   Section 5.12         Undertaking for Costs...................................
   Section 5.13         Waiver of Stay or Extension Laws........................
   Section 5.14         Sale of Trust Estate....................................
   Section 5.15         Action on Notes.........................................
   Section 5.16         Performance and Enforcement of Certain Obligations......

ARTICLE VI           The Indenture Trustee......................................
   Section 6.01         Duties of Indenture Trustee.............................
   Section 6.02         Rights of Indenture Trustee.............................
   Section 6.03         Individual Rights of Indenture Trustee..................
   Section 6.04         Indenture Trustee's Disclaimer..........................
   Section 6.05         Notice of Event of Default..............................
   Section 6.06         Reports by Indenture Trustee to Holders.................
   Section 6.07         Compensation and Indemnity..............................
   Section 6.08         Replacement of Indenture Trustee........................
   Section 6.09         Successor Indenture Trustee by Merger...................
   Section 6.10         Appointment of Co-Indenture Trustee or Separate
                        Indenture Trustee.......................
   Section 6.11         Eligibility; Disqualification...........................
   Section 6.12         Preferential Collection of Claims Against Issuing Entity
   Section 6.13         Representation and Warranty.............................
   Section 6.14         Directions to Indenture Trustee.........................
   Section 6.15         [Reserved]..............................................
   Section 6.16         Indenture Trustee May Own Securities....................

ARTICLE VII          Noteholders' Lists and Reports.............................
   Section 7.01         Issuing Entity to Furnish Indenture Trustee Names and
                        Addresses of Noteholders..........
   Section 7.02         Preservation of Information; Communications to
                        Noteholders..............................
   Section 7.03         Reports by Issuing Entity...............................
   Section 7.04         Reports by Indenture Trustee............................

ARTICLE VIII         Accounts, Disbursements and Releases.......................
   Section 8.01         Collection of Money.....................................
   Section 8.02         Trust Accounts..........................................
   Section 8.03         Officer's Certificate...................................
   Section 8.04         Termination upon Distribution to Noteholders............
   Section 8.05         Release of Trust Estate.................................
   Section 8.06         Surrender of Notes upon Final Payment...................

ARTICLE IX           Supplemental Indentures....................................
   Section 9.01         Supplemental Indentures Without Consent of Noteholders..
   Section 9.02         Supplemental Indentures with Consent of Noteholders.....
   Section 9.03         Execution of Supplemental Indentures....................
   Section 9.04         Effect of Supplemental Indenture........................
   Section 9.05         Conformity with Trust Indenture Act.....................
   Section 9.06         Reference in Notes to Supplemental Indentures...........

ARTICLE X            Miscellaneous..............................................
   Section 10.01        Compliance Certificates and Opinions, Etc...............
   Section 10.02        Form of Documents Delivered to Indenture Trustee........
   Section 10.03        Acts of Noteholders.....................................
   Section 10.04        Notices, Etc., to Indenture Trustee, Issuing Entity,
                        Credit Enhancer and Rating Agencies.
   Section 10.05        Notices to Noteholders; Waiver..........................
   Section 10.06        Alternate Payment and Notice Provisions.................
   Section 10.07        Conflict with Trust Indenture Act.......................
   Section 10.08        Effect of Headings......................................
   Section 10.09        Successors and Assigns..................................
   Section 10.10        Separability............................................
   Section 10.11        Benefits of Indenture...................................
   Section 10.12        Legal Holidays..........................................
   Section 10.13        GOVERNING LAW...........................................
   Section 10.14        Counterparts............................................
   Section 10.15        Recording of Indenture..................................
   Section 10.16        Issuing Entity Obligation...............................
   Section 10.17        No Petition.............................................
   Section 10.18        Inspection..............................................
   Section 10.19        Authority of the Administrator..........................

<PAGE>

EXHIBITS

Exhibit A         --  Form of Notes

Appendix A        --  Definitions

<PAGE>

         This Indenture, dated as of _______________, between American Home
Mortgage Assets LLC Trust Series 200_ -__, a Delaware statutory trust, as
Issuing Entity (the "Issuing Entity"), and ____________________________, a
____________________________, as Indenture Trustee (the "Indenture Trustee"),

                                WITNESSETH THAT:

         Each party hereto agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Holders of the Issuing Entity's
Series 200_-_ Mortgage-Backed Notes (the "Notes").

                                 GRANTING CLAUSE

         The Issuing Entity hereby Grants to the Indenture Trustee on the
Closing Date, as trustee for the benefit of the Holders of the Notes, all of the
Issuing Entity's right, title and interest in and to whether now existing or
hereafter created by (a) the Mortgage Loans and the proceeds thereof, (b) all
funds on deposit in the Funding Account, including all income from the
investment and reinvestment of funds therein, (c) all funds on deposit from time
to time in the Collection Account allocable to the Mortgage Loans excluding any
investment income from such funds; (d) all funds on deposit from time to time in
the Payment Account and in all proceeds thereof; (e) the Policy and (f) all
present and future claims, demands, causes and chooses in action in respect of
any or all of the foregoing and all payments on or under, and all proceeds of
every kind and nature whatsoever in respect of, any or all of the foregoing and
all payments on or under, and all proceeds of every kind and nature whatsoever
in the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, checks, deposit accounts, rights to payment of any and every kind,
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Trust Estate" or the "Collateral").

         The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, all as provided in this
Indenture.

         The Indenture Trustee, as trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein.

<PAGE>

                                   ARTICLE I

                                   Definitions

         Section 1.01 DEFINITIONS. For all purposes of this Indenture, except as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such  terms  in the  Definitions  attached  hereto  as  Appendix  A which  is
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

         Section  1.02  INCORPORATION  BY  REFERENCE  OF  TRUST  INDENTURE  ACT.
Whenever this  Indenture  refers to a provision of the Trust  Indenture Act (the
"TIA"),  the provision is  incorporated  by reference in and made a part of this
Indenture.  The  following TIA terms used in this  Indenture  have the following
meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture  trustee"  or  "institutional  trustee"  means  the
         Indenture Trustee.

                  "obligor" on the indenture securities means the Issuing Entity
         and any other obligor on the indenture securities.

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

                  Section  1.03  RULES  OF  CONSTRUCTION.   Unless  the  context
         otherwise requires:

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

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

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

<PAGE>

                                   ARTICLE II

                           Original Issuance of Notes

         Section 2.01 FORM.  The Notes,  together with the  Indenture  Trustee's
certificate of  authentication,  shall be in substantially the form set forth in
Exhibit A, with such appropriate insertions, omissions,  substitutions and other
variations  as are  required or permitted  by this  Indenture  and may have such
letters,   numbers  or  other  marks  of  identification  and  such  legends  or
endorsements placed thereon as may, consistently  herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.

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

         Section 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuing Entity by any of its Authorized Officers.  The
signature  of any  such  Authorized  Officer  on the  Notes  may  be  manual  or
facsimile.

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

         The Indenture Trustee shall upon Issuing Entity Request authenticate
and deliver Notes for original issue in an aggregate initial principal amount of
$___________.

         Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes and the Notes shall be issuable in the
minimum initial Security Balances of $100,000 and in integral multiples of
$1,000 in excess thereof.

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

<PAGE>

                                  ARTICLE III

                                    Covenants

         Section 3.01 COLLECTION OF PAYMENTS WITH RESPECT TO THE MORTGAGE LOANS.
The Indenture  Trustee shall  establish and maintain with itself a trust account
(the "Payment  Account") in which the Indenture  Trustee  shall,  subject to the
terms of this  paragraph,  deposit,  on the same day as it is received  from the
Servicer,  each remittance received by the Indenture Trustee with respect to the
Mortgage  Loans.  The Indenture  Trustee shall make all payments of principal of
and  interest on the Notes,  subject to Section 3.03 as provided in Section 3.05
herein from monies on deposit in the Payment Account.

         Section 3.02  MAINTENANCE OF OFFICE OR AGENCY.  The Issuing Entity will
maintain  in the  [Borough  of  Manhattan,  The City of New  York,] an office or
agency where,  subject to satisfaction of conditions set forth herein, Notes may
be surrendered for  registration of transfer or exchange,  and where notices and
demands to or upon the Issuing Entity in respect of the Notes and this Indenture
may be served.  The Issuing  Entity  hereby  initially  appoints  the  Indenture
Trustee  to serve as its agent for the  foregoing  purposes.  If at any time the
Issuing Entity shall fail to maintain any such office or agency or shall fail to
furnish the Indenture Trustee with the address thereof, such surrenders, notices
and demands may be made or served at the Corporate Trust Office, and the Issuing
Entity hereby  appoints the  Indenture  Trustee as its agent to receive all such
surrenders, notices and demands.

         Section 3.03 MONEY FOR PAYMENTS TO BE HELD IN TRUST;  PAYING AGENT. (a)
As  provided in Section  3.01,  all  payments  of amounts  due and payable  with
respect to any Notes that are to be made from amounts withdrawn from the Payment
Account  pursuant to Section 3.01 shall be made on behalf of the Issuing  Entity
by the  Indenture  Trustee or by the Paying  Agent,  and no amounts so withdrawn
from the Payment Account for payments of Notes shall be paid over to the Issuing
Entity except as provided in this Section 3.03.

         The Issuing Entity will cause each Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee an instrument
in which such Paying Agent shall agree with the Indenture Trustee (and if the
Indenture Trustee acts as Paying Agent it hereby so agrees), subject to the
provisions of this Section 3.03, that such Paying Agent will:

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

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

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

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

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

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

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuing Entity on Issuer Request; and the Holder of such Note
shall thereafter, as an unsecured general creditor, look only to the Issuing
Entity for payment thereof (but only to the extent of the amounts so paid to the
Issuing Entity), and all liability of the Indenture Trustee or such Paying Agent
with respect to such trust money shall thereupon cease; provided, however, that
the Indenture Trustee or such Paying Agent, before being required to make any
such repayment, shall at the expense and direction of the Issuing Entity cause
to be published once, in an Authorized Newspaper published in the English
language, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Issuing Entity. The Indenture Trustee may also adopt and employ, at the
expense and direction of the Issuing Entity, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of
such repayment to Holders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Holder).

         Section 3.04 EXISTENCE. The Issuing Entity will keep in full effect its
existence,  rights and  franchises  as a  statutory  trust under the laws of the
State of Delaware (unless it becomes,  or any successor Issuing Entity hereunder
is or  becomes,  organized  under the laws of any other  state or of the  United
States of America, in which case the Issuing Entity will keep in full effect its
existence,  rights and franchises under the laws of such other jurisdiction) and
will obtain and preserve its  qualification to do business in each  jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability  of this Indenture,  the Notes, the Mortgage Loans and each other
instrument or agreement included in the Trust Estate.

         Section 3.05 PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST. (a)
On each Payment Date from amounts on deposit in the Payment Account after making
(x) any deposit to the Funding  Account  pursuant to Section 8.02(b) and (y) any
deposits to the Payment  Account  pursuant  to Section  8.02(c)(ii)  and Section
8.02(c)(i)(2),   the  Indenture  Trustee  shall  pay  to  the  Noteholders,  the
Certificate  Paying  Agent,  on behalf of the  Certificateholders,  and to other
Persons the amounts to which they are entitled as set forth below:

                  (i) to the Noteholders the sum of (a) one month's  interest at
         the Note  Interest Rate on the Security  Balances of Notes  immediately
         prior to such  Payment Date and (b) any  previously  accrued and unpaid
         interest for prior Payment Dates;

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

                  (iii) to the Noteholders,  as principal on the Notes, from the
         amount  remaining  on  deposit  in  the  Payment  Account,  up  to  the
         applicable  Security  Percentage  of  Liquidation  Loss Amounts for the
         related Collection Period;

                  (iv) to the Noteholders,  as principal on the Notes,  from the
         amount  remaining  on  deposit  in  the  Payment  Account,  up  to  the
         applicable Security Percentage of Carryover Loss Amounts;

                  (v) to the Credit  Enhancer,  in the amount of the premium for
         the  Credit  Enhancement  Instrument  and  for  any  Additional  Credit
         Enhancement Instrument;

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

                  (vii) to the  Noteholders,  as principal on the Notes based on
         the Security  Balances from Security  Interest  Collections,  up to the
         Special Capital Distribution Amount for such Payment Date;

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

                  (ix) [Reserved];

                  (x) to reimburse the  Administrator  for expenditures  made on
         behalf of the Issuing  Entity with  respect to the  performance  of its
         duties under the Indenture; and

                  (xi) any remaining amount, to the Certificate Paying Agent, on
         behalf of the Certificates.

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

         On each Payment Date, the Certificate Paying Agent shall deposit in the
Certificate Distribution Account all amounts it received pursuant to this
Section 3.05 for the purpose of distributing such funds to the
Certificateholders.

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

         [Any installment of interest or principal, if any, payable on any Note
or Certificate that is punctually paid or duly provided for by the Issuing
Entity on the applicable Payment Date shall, if such Holder holds Notes or
Certificates of an aggregate initial Principal Balance of at least $1,000,000,
be paid to each Holder of record on the preceding Record Date, by wire transfer
to an account specified in writing by such Holder reasonably satisfactory to the
Indenture Trustee as of the preceding Record Date or in all other cases or if no
such instructions have been delivered to the Indenture Trustee, by check to such
Noteholder mailed to such Holder's address as it appears in the Note Register
the amount required to be distributed to such Holder on such Payment Date
pursuant to such Holder's Securities; provided, however, that the Indenture
Trustee shall not pay to such Holders any amount required to be withheld from a
payment to such Holder by the Code.]

         (b) The  principal of each Note shall be due and payable in full on the
Final  Scheduled  Payment Date for such Note as provided in the form of Note set
forth in Exhibit A. All principal  payments on each Class of Notes shall be made
to the  Noteholders  of such  Class  entitled  thereto  in  accordance  with the
Percentage  Interests  represented  by such Notes.  Upon notice to the Indenture
Trustee by the Issuing Entity,  the Indenture Trustee shall notify the Person in
whose name a Note is  registered  at the close of  business  on the Record  Date
preceding the Final  Scheduled  Payment Date or other final  Payment Date.  Such
notice  shall be mailed no later  than five  Business  Days  prior to such Final
Scheduled  Payment  Date or other  final  Payment  Date and shall  specify  that
payment of the  principal  amount and any interest due with respect to such Note
at the Final Scheduled  Payment Date or other final Payment Date will be payable
only upon  presentation  and  surrender of such Note and shall specify the place
where such Note may be presented and surrendered for such final payment.

         Section 3.06  PROTECTION OF TRUST ESTATE.  (a) The Issuing  Entity will
from time to time execute and deliver all such supplements and amendments hereto
and all such  financing  statements,  continuation  statements,  instruments  of
further  assurance  and  other  instruments,  and will take  such  other  action
necessary or advisable to:

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

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

                  (iii) cause the Issuing  Entity to enforce any of the Mortgage
         Loans; or

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

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

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

         Section 3.07 OPINIONS AS TO TRUST ESTATE.  (a) On the Closing Date, the
Issuing  Entity shall furnish to the Indenture  Trustee and the Owner Trustee an
Opinion of Counsel  either  stating that,  in the opinion of such counsel,  such
action  has  been  taken  with  respect  to the  recording  and  filing  of this
Indenture,   any  indentures   supplemental  hereto,  and  any  other  requisite
documents,  and with  respect  to the  execution  and  filing  of any  financing
statements  and  continuation  statements,  as are necessary to perfect and make
effective the lien and security  interest in the Mortgage Loans and reciting the
details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

         (b) On or before ___________ in each calendar year,  beginning in ____,
the Issuing Entity shall furnish to the Indenture  Trustee an Opinion of Counsel
at the expense of the Issuing Entity either stating that, in the opinion of such
counsel,  such  action  has been taken with  respect to the  recording,  filing,
re-recording and refiling of this Indenture,  any indentures supplemental hereto
and any other  requisite  documents and with respect to the execution and filing
of any  financing  statements  and  continuation  statements  as is necessary to
maintain the lien and security  interest in the Mortgage  Loans and reciting the
details of such action or stating  that in the  opinion of such  counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording,  filing, re-recording and refiling of
this  Indenture,  any  indentures  supplemental  hereto and any other  requisite
documents  and  the  execution  and  filing  of  any  financing  statements  and
continuation  statements that will, in the opinion of such counsel,  be required
to maintain the lien and security  interest in the Mortgage Loans until December
31 in the following calendar year.

         Section 3.08 PERFORMANCE OF OBLIGATIONS;  SERVICING AGREEMENT.  (a) The
Issuing Entity will  punctually  perform and observe all of its  obligations and
agreements  contained  in  this  Indenture,  the  Basic  Documents  and  in  the
instruments and agreements included in the Trust Estate.

         (b) The Issuing  Entity may contract with other Persons to assist it in
performing its duties under this  Indenture,  and any performance of such duties
by a Person identified to the Indenture  Trustee in an Officer's  Certificate of
the Issuing  Entity  shall be deemed to be action  taken by the Issuing  Entity.
Initially,  the Issuing Entity has contracted with the  Administrator  to assist
the Issuing Entity in performing its duties under this Indenture.

         (c) The Issuing Entity will not take any action or permit any action to
be taken by others  which would  release  any Person  from any of such  Person's
covenants or  obligations  under any of the  documents  relating to the Mortgage
Loans or under any  instrument  included  in the Trust  Estate,  or which  would
result in the amendment, hypothecation,  subordination, termination or discharge
of, or impair the validity or effectiveness of, any of the documents relating to
the Mortgage Loans or any such  instrument,  except such actions as the Servicer
is  expressly  permitted  to  take in the  Servicing  Agreement.  The  Indenture
Trustee,  as pledgee of the Mortgage Loans, shall be able to exercise the rights
Issuing  Entity and the  Mortgage  Loans  holder,  to direct the  actions of the
Servicer.

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

         Section 3.09 NEGATIVE COVENANTS.  So long as any Notes are Outstanding,
the Issuing Entity shall not:

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

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

                  (iii)  (A)  permit  the  validity  or  effectiveness  of  this
         Indenture  to be impaired,  or permit the lien of this  Indenture to be
         amended,  hypothecated,  subordinated,  terminated  or  discharged,  or
         permit any Person to be released from any covenants or obligations with
         respect to the Notes under this  Indenture  except as may be  expressly
         permitted hereby, (B) permit any lien, charge,  excise, claim, security
         interest,  mortgage or other  encumbrance  (other than the lien of this
         Indenture)  to be  created  on or extend to or other wise arise upon or
         burden the Trust Estate or any part thereof or any interest  therein or
         the proceeds  thereof or (C) permit the lien of this  Indenture  not to
         constitute  a valid  first  priority  security  interest  in the  Trust
         Estate; or

                  (iv)  waive or impair,  or fail to assert  rights  under,  the
         Mortgage  Loans, or impair or cause to be impaired the Company's or the
         Issuing  Entity's  interest in the Mortgage  Loans,  the Mortgage  Loan
         Purchase  Agreement or in any Basic Document,  if any such action would
         materially and adversely affect the interests of the Noteholders.

         Section 3.10 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuing Entity will
deliver to the Indenture  Trustee,  within 120 days after the end of each fiscal
year of the Issuing Entity  (commencing with the fiscal year ____), an Officer's
Certificate  stating,  as to  the  Authorized  Officer  signing  such  Officer's
Certificate, that:

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

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

         Section 3.11 RECORDING OF  ASSIGNMENTS.  The Company shall cause the to
exercise its right under the Mortgage  Loan Purchase  Agreement  with respect to
the  obligation  of the Seller to submit or cause to be submitted  for recording
all Assignments of Mortgages on or prior to  ______________  with respect to the
Initial Loans and within 60 days following the related Deposit Date with respect
to any Additional Loans.

         Section 3.12  REPRESENTATIONS  AND  WARRANTIES  CONCERNING THE MORTGAGE
LOANS. The Indenture Trustee,  as pledgee of the Mortgage Loans, has the benefit
of the  representations  and warranties made by the Seller in Section [____] and
Section [____] of the Mortgage Loan Purchase  Agreement  concerning the Mortgage
Loans and the right to enforce the remedies  against the Seller provided in such
Section   [____]  or  Section   [____]  to  the  same   extent  as  though  such
representations and warranties were made directly to the Indenture Trustee.

         Section 3.13  AMENDMENTS  TO SERVICING  AGREEMENT.  The Issuing  Entity
covenants  with the Indenture  Trustee that it will not enter into any amendment
or supplement to the Servicing  Agreement in accordance with Section 8.01 of the
Servicing  Agreement without the prior written consent of the Indenture Trustee.
The Indenture Trustee, as pledgee of the Mortgage Loans, may, in its discretion,
decline to enter into or consent to any such  supplement or amendment if its own
rights, duties or immunities shall be adversely affected.

         Section 3.14 SERVICER AS AGENT AND BAILEE OF THE MORTGAGE LOANS HOLDER.
Solely for purposes of perfection under Section 9-305 of the Uniform  Commercial
Code or other similar  applicable  law, rule or regulation of the state in which
such property is held by the Servicer, the Indenture Trustee hereby acknowledges
that the Servicer is acting as agent and bailee of the Mortgage  Loans holder in
holding amounts on deposit in the Collection Account pursuant to Section 3.02 of
the Servicing Agreement,  as well as its agent and bailee in holding any Related
Documents  released to the Servicer pursuant to Section 3.06(c) of the Servicing
Agreement,  and any other items  constituting  a part of the Trust  Estate which
from time to time come into the possession of the Servicer. It is intended that,
by the  Servicer's  acceptance  of such agency  pursuant to Section  3.02 of the
Servicing  Agreement,  the Indenture Trustee, as a secured party of the Mortgage
Loans, will be deemed to have possession of such Related Documents,  such monies
and such other  items for  purposes of Section  9-305 of the Uniform  Commercial
Code of the state in which such property is held by the Servicer.

         Section  3.15  INVESTMENT  COMPANY  ACT.  The Issuing  Entity shall not
become an "investment company" or under the "control" of an "investment company"
as such terms are defined in the Investment  Company Act of 1940, as amended (or
any successor or amendatory statute),  and the rules and regulations  thereunder
(taking into  account not only the general  definition  of the term  "investment
company"  but  also  any  available  exceptions  to  such  general  definition);
provided,  however,  that the Issuing  Entity shall be in  compliance  with this
Section 3.15 if it shall have obtained an order  exempting it from regulation as
an  "investment  company"  so long as it is in  compliance  with the  conditions
imposed in such order.

         Section  3.16  ISSUING  ENTITY MAY  CONSOLIDATE,  ETC.  (a) The Issuing
Entity shall not consolidate or merge with or into any other Person, unless:

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

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

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

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

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

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

         (b)  The  Issuing  Entity  shall  not  convey  or  transfer  any of its
properties  or assets,  including  those  included in the Trust  Estate,  to any
Person, unless:

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

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

                  (iii) the Rating  Agencies  shall have  notified  the  Issuing
         Entity that such transaction shall not cause the rating of the Notes or
         the Certificates to be reduced, suspended or withdrawn;

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

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

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

         Section 3.17 SUCCESSOR OR  TRANSFEREE.  (a) Upon any  consolidation  or
merger of the Issuing  Entity in  accordance  with Section  3.16(a),  the Person
formed by or surviving such  consolidation  or merger (if other than the Issuing
Entity) shall succeed to, and be  substituted  for, and may exercise every right
and power of, the Issuing Entity under this Indenture with the same effect as if
such Person had been named as the Issuing Entity herein.

         (b) Upon a conveyance  or transfer of all the assets and  properties of
the Issuing  Entity  pursuant  to Section  3.16(b),  the Issuing  Entity will be
released from every  covenant and agreement of this  Indenture to be observed or
performed  on  the  part  of the  Issuing  Entity  with  respect  to  the  Notes
immediately upon the delivery of written notice to the Indenture Trustee of such
conveyance or transfer.

         Section 3.18 NO OTHER BUSINESS.  The Issuing Entity shall not engage in
any business other than financing,  purchasing,  owning and selling and managing
the Mortgage Loans and the issuance of the Notes and  Certificates in the manner
contemplated  by this  Indenture  and the  Basic  Documents  and all  activities
incidental thereto.

         Section 3.19 NO BORROWING.  The Issuing Entity shall not issue,  incur,
assume,  guarantee or otherwise become liable,  directly or indirectly,  for any
indebtedness except for the Notes.

         Section 3.20 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES.  Except
as  contemplated  by this Indenture or the Basic  Documents,  the Issuing Entity
shall not make any loan or  advance  or credit  to, or  guarantee  (directly  or
indirectly or by an instrument  having the effect of assuring  another's payment
or  performance  on any  obligation  or  capability  of so doing or  otherwise),
endorse or otherwise  become  contingently  liable,  directly or indirectly,  in
connection  with the  obligations,  stocks or  dividends  of, or own,  purchase,
repurchase or acquire (or agree  contingently to do so) any stock,  obligations,
assets  or  securities  of,  or any  other  interest  in,  or make  any  capital
contribution to, any other Person.

         Section 3.21 CAPITAL  EXPENDITURES.  The Issuing  Entity shall not make
any  expenditure  (by long- term or operating  lease or  otherwise)  for capital
assets (either realty or personalty).

         Section 3.22 [Reserved]

         Section  3.23  RESTRICTED  PAYMENTS.  The  Issuing  Entity  shall  not,
directly  or  indirectly,  (i) pay any  dividend  or make any  distribution  (by
reduction of capital or otherwise),  whether in cash, property,  securities or a
combination  thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuing  Entity or  otherwise  with  respect to any  ownership  or equity
interest or security in or of the Issuing Entity, (ii) redeem, purchase,  retire
or otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or  otherwise  segregate  any amounts  for any such  purpose;
provided,  however,  that the Issuing  Entity may make, or cause to be made, (x)
distributions  to the Owner Trustee and the  Certificateholders  as contemplated
by, and to the  extent  funds are  available  for such  purpose  under the Trust
Agreement,  (y) payments to the Servicer  pursuant to the terms of the Servicing
Agreement and (z) payments to the Indenture Trustee pursuant to Section 1(a)(ii)
of the  Administration  Agreement.  The  Issuing  Entity  will not,  directly or
indirectly, make payments to or distributions from the Collection Account except
in accordance with this Indenture and the Basic Documents.

         Section 3.24 NOTICE OF EVENTS OF DEFAULT. The Issuing Entity shall give
the Indenture Trustee the Credit Enhancer and the Rating Agencies prompt written
notice of each Event of Default hereunder and under the Trust Agreement.

         Section  3.25  FURTHER  INSTRUMENTS  AND  ACTS.  Upon  request  of  the
Indenture  Trustee,  the Issuing  Entity will  execute and deliver  such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

         Section 3.26 STATEMENTS TO NOTEHOLDERS.  The Indenture  Trustee and the
Certificate   Registrar   shall   forward  by  mail  to  each   Noteholder   and
Certificateholder,  respectively,  the  Statement  delivered  to it  pursuant to
Section 4.01 of the Servicing Agreement.

         Section 3.27  DETERMINATION  OF NOTE INTEREST RATE. On the second LIBOR
Business Day immediately preceding (i) the Closing Date in the case of the first
Interest Period and (ii) the first day of each succeeding  Interest Period,  the
Indenture  Trustee  shall  determine  LIBOR and the Note  Interest Rate for such
Interest  Period and shall  inform the  Issuing  Entity,  the  Servicer  and the
Depositor at their respective  facsimile  numbers given to the Indenture Trustee
in writing thereof.

         Section 3.28 PAYMENTS UNDER THE CREDIT ENHANCEMENT  INSTRUMENT.  (a) On
any Payment Date, other than a Dissolution  Payment Date, the Indenture  Trustee
on behalf of the Noteholders, and in its capacity as Certificate Paying Agent on
behalf of the  Certificateholders  shall make a draw on the  Credit  Enhancement
Instrument  in an amount if any equal to the sum of (x) the  amount by which the
interest  accrued at the Note Interest Rate on the Security Balance of the Notes
exceeds the amount on deposit in the Payment Account available to be distributed
therefor on such Payment Date and (y) the  Guaranteed  Principal  Payment Amount
(the "Credit Enhancement Draw Amount").

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

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

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

         Section 3.29 REPLACEMENT CREDIT ENHANCEMENT INSTRUMENT. In the event of
a Credit  Enhancer  Default or if the claims paying ability rating of the Credit
Enhancer is downgraded and such  downgrade  results in a downgrading of the then
current  rating of the Securities  (in each case, a  "Replacement  Event"),  the
Issuing Entity, at its expense,  in accordance with and upon satisfaction of the
conditions set forth in the Credit Enhancement  Instrument,  including,  without
limitation, payment in full of all amounts owed to the Credit Enhancer, may, but
shall not be required  to,  substitute a new surety bond or surety bonds for the
existing  Credit  Enhancement  Instrument  or may  arrange for any other form of
credit  enhancement;  provided,  however,  that in each case the Notes  shall be
rated no lower  than the  rating  assigned  by each  Rating  Agency to the Notes
immediately  prior to such  Replacement  Event and the timing and  mechanism for
drawing on such new credit  enhancement  shall be  reasonably  acceptable to the
Indenture  Trustee and provided  further  that the  premiums  under the proposed
credit  enhancement  shall not exceed such  premiums  under the existing  Credit
Enhancement  Instrument.  It shall be a  condition  to  substitution  of any new
credit  enhancement  that there be  delivered  to the  Indenture  Trustee (i) an
Opinion of Counsel, acceptable in form to the Indenture Trustee, from counsel to
the provider of such new credit  enhancement with respect to the  enforceability
thereof and such other matters as the Indenture  Trustee may require and (ii) an
Opinion of Counsel to the effect that such substitution  would not (a) adversely
affect  in any  material  respect  the tax  status of the Notes or (b) cause the
Issuing  Entity to be subject to a tax at the entity level.  Upon receipt of the
items referred to above and payment of all amounts owing to the Credit  Enhancer
and the  taking  of  physical  possession  of the new  credit  enhancement,  the
Indenture  Trustee shall,  within five Business Days  following  receipt of such
items and such  taking of  physical  possession,  deliver  the  replaced  Credit
Enhancement  Instrument  to the  Credit  Enhancer.  In  the  event  of any  such
replacement  the Issuing  Entity shall give written notice thereof to the Rating
Agencies.

<PAGE>

                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

         Section 4.01 THE NOTES.  The Notes shall be registered in the name of a
nominee  designated by the Depository.  Beneficial Owners will hold interests in
the Notes through the book-entry facilities of the Depository in minimum initial
Principal Balances of $1,000 and integral multiples of $1,000 in excess thereof.

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

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

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

         Section 4.02  REGISTRATION  OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF NOTES;  APPOINTMENT OF CERTIFICATE REGISTRAR.  The Issuing Entity shall cause
to be kept at its Corporate  Trust Office a Note  Register in which,  subject to
such  reasonable  regulations  as it may  prescribe,  the Note  Registrar  shall
provide for the registration of Notes and of transfers and exchanges of Notes as
herein provided.

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

         Subject to the foregoing, at the option of the Noteholders, Notes may
be exchanged for other Notes of like tenor or, in each case in authorized
initial Principal Balances evidencing the same aggregate Percentage Interests
upon surrender of the Notes to be exchanged at the Corporate Trust Office of the
Note Registrar. Whenever any Notes are so surrendered for exchange, the
Indenture Trustee shall execute and the Note Registrar shall authenticate and
deliver the Notes which the Noteholder making the exchange is entitled to
receive. Each Note presented or surrendered for registration of transfer or
exchange shall (if so required by the Note Registrar) be duly endorsed by, or be
accompanied by a written instrument of transfer in form reasonably satisfactory
to the Note Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing with such signature guaranteed by a commercial bank or
trust company located or having a correspondent located in the city of New York.
Notes delivered upon any such transfer or exchange will evidence the same
obligations, and will be entitled to the same rights and privileges, as the
Notes surrendered.

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

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

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

         Section 4.03  MUTILATED,  DESTROYED,  LOST OR STOLEN NOTES.  If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives  evidence to its satisfaction of the destruction,  loss or theft of any
Note,  and (ii) there is delivered  to the  Indenture  Trustee such  security or
indemnity as may be required by it to hold the Issuing  Entity and the Indenture
Trustee harmless, then, in the absence of notice to the Issuing Entity, the Note
Registrar or the  Indenture  Trustee that such Note has been  acquired by a bona
fide purchaser,  and provided that the  requirements of Section 8-405 of the UCC
are met, the Issuing  Entity shall  execute,  and upon its request the Indenture
Trustee shall  authenticate and deliver,  in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class;
provided,  however,  that if any such destroyed,  lost or stolen Note, but not a
mutilated Note, shall have become or within seven days shall be due and payable,
instead  of  issuing  a  replacement  Note,  the  Issuing  Entity  may pay  such
destroyed, lost or stolen Note when so due or payable without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed,  lost
or stolen Note  pursuant to the proviso to the preceding  sentence,  a bona fide
purchaser of the original Note in lieu of which such replacement Note was issued
presents for payment such original  Note,  the Issuing  Entity and the Indenture
Trustee  shall be entitled to recover such  replacement  Note (or such  payment)
from the Person to whom it was delivered or any Person  taking such  replacement
Note  from  such  Person  to whom such  replacement  Note was  delivered  or any
assignee of such Person, except a bona fide purchaser,  and shall be entitled to
recover upon the security or  indemnity  provided  therefor to the extent of any
loss,  damage,  cost or expense  incurred by the Issuing Entity or the Indenture
Trustee in connection therewith.

         Upon the issuance of any replacement Note under this Section 4.03, the
Issuing Entity may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

         Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuing Entity, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

         The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         Section  4.04  PERSONS  DEEMED  OWNERS.  Prior to due  presentment  for
registration of transfer of any Note, the Issuing Entity,  the Indenture Trustee
and any agent of the  Issuing  Entity  or the  Indenture  Trustee  may treat the
Person in whose name any Note is registered (as of the day of  determination) as
the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or
not such Note be overdue,  and neither the Issuing Entity, the Indenture Trustee
nor any agent of the Issuing  Entity or the Indenture  Trustee shall be affected
by notice to the contrary.

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

         Section 4.06 BOOK-ENTRY NOTES. The Notes, upon original issuance,  will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Depository,  by, or on
behalf of, the Issuing  Entity.  Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial  Depository,
and no  Beneficial  Owner  will  receive a  Definitive  Note  representing  such
Beneficial  Owner's  interest in such Note,  except as provided in Section 4.08.
Unless and until  definitive,  fully registered  Notes (the "Definitive  Notes")
have been issued to Beneficial Owners pursuant to Section 4.08:

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

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

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

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

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

         Section  4.07  NOTICES  TO  DEPOSITORY.  Whenever  a  notice  or  other
communication  to the Note Holders is required under this Indenture,  unless and
until Definitive  Notes shall have been issued to Beneficial  Owners pursuant to
Section  4.08,   the   Indenture   Trustee  shall  give  all  such  notices  and
communications  specified  herein  to be given to  Holders  of the  Notes to the
Depository, and shall have no obligation to the Beneficial Owners.

         Section 4.08  DEFINITIVE  NOTES. If (i) the  Administrator  advises the
Indenture Trustee in writing that the Depository is no longer willing or able to
properly  discharge  its  responsibilities  with  respect  to the  Notes and the
Administrator is unable to locate a qualified successor,  (ii) the Administrator
at its  option  advises  the  Indenture  Trustee  in  writing  that it elects to
terminate  the  book-entry  system  through  the  Depository  or (iii) after the
occurrence  of an Event of  Default,  Owners  of Notes  representing  beneficial
interests  aggregating at least a majority of the Security Balances of the Notes
advise the Depository in writing that the  continuation  of a book-entry  system
through the  Depository  is no longer in the best  interests  of the  Beneficial
Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee  of the  occurrence  of any  such  event  and  of  the  availability  of
Definitive Notes to Beneficial Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes  representing the Book-Entry Notes by
the  Depository,  accompanied by registration  instructions,  the Issuing Entity
shall execute and the Indenture Trustee shall  authenticate the Definitive Notes
in  accordance  with the  instructions  of the  Depository.  None of the Issuing
Entity,  the Note  Registrar or the  Indenture  Trustee  shall be liable for any
delay in delivery of such  instructions and may conclusively  rely on, and shall
be protected in relying on, such  instructions.  Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders.

         Section 4.09 TAX  TREATMENT.  The Issuing  Entity has entered into this
Indenture,  and the Notes will be issued,  with the intention that, for federal,
state and local income,  single  business and franchise tax purposes,  the Notes
will qualify as  indebtedness  of the Issuing  Entity.  The Issuing  Entity,  by
entering into this Indenture, and each Noteholder, by its acceptance of its Note
(and each  Beneficial  Owner by its  acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal,  state and local income,
single  business  and  franchise  tax  purposes as  indebtedness  of the Issuing
Entity.

         Section 4.10  SATISFACTION  AND DISCHARGE OF INDENTURE.  This Indenture
shall cease to be of further  effect with  respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee  hereunder  (including the rights of the Indenture Trustee under Section
6.07 and the  obligations of the Indenture  Trustee under Section 4.11) and (vi)
the rights of Noteholders as  beneficiaries  hereof with respect to the property
so deposited with the Indenture  Trustee  payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuing Entity,  shall
execute  proper  instruments  acknowledging  satisfaction  and discharge of this
Indenture with respect to the Notes, when

         (A) either

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

                  (2) all  Notes  not  theretofore  delivered  to the  Indenture
         Trustee for cancellation

                           a. have become due and payable,

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

                           c. have been called for early redemption  pursuant to
                  Section 5.02.

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

                           (B) the Issuing  Entity has paid or caused to be paid
                  all other  sums  payable  hereunder  and  under the  Insurance
                  Agreement by the Issuing Entity; and

                           (C) the Issuing Entity has delivered to the Indenture
                  Trustee and the Credit Enhancer an Officer's  Certificate,  an
                  Opinion   of  Counsel   and  each   meeting   the   applicable
                  requirements of Section 10.01 each stating that all conditions
                  precedent herein provided for relating to the satisfaction and
                  discharge of this  Indenture  have been  complied with and, if
                  the Opinion of Counsel relates to a deposit made in connection
                  with Section 4.10(A)(2)b. above, such opinion shall further be
                  to the effect  that such  deposit  will not have any  material
                  adverse  tax   consequences   to  the  Issuing   Entity,   any
                  Noteholders or any Certificateholders.

         Section 4.11  APPLICATION OF TRUST MONEY. All monies deposited with the
Indenture  Trustee  pursuant to Section  4.10 hereof  shall be held in trust and
applied  by it,  in  accordance  with  the  provisions  of the  Notes  and  this
Indenture,  to the  payment,  either  directly  or through  any Paying  Agent or
Certificate Paying Agent, as the Indenture Trustee may determine, to the Holders
of  Securities,  of all sums due and to become due  thereon  for  principal  and
interest;  but such monies need not be segregated from other funds except to the
extent required herein or required by law.

         Section 4.12  SUBROGATION AND  COOPERATION.  (a) The Issuing Entity and
the Indenture  Trustee  acknowledge  that (i) to the extent the Credit  Enhancer
makes payments under the Credit  Enhancement  Instrument on account of principal
of or interest on the Notes, the Credit Enhancer will be fully subrogated to the
rights of such Holders to receive such  principal  and interest from the Issuing
Entity,  and (ii) the Credit  Enhancer shall be paid such principal and interest
but only from the sources and in the manner provided herein and in the Insurance
Agreement for the payment of such principal and interest.

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

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

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

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

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

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

         Section 4.13  REPAYMENT OF MONIES HELD BY PAYING  AGENT.  In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Administrator other than the Indenture Trustee under
the provisions of this  Indenture with respect to such Notes shall,  upon demand
of the Issuing Entity,  be paid to the Indenture  Trustee to be held and applied
according to Section 3.05 and thereupon such Paying Agent shall be released from
all further liability with respect to such monies.

         Section 4.14 TEMPORARY NOTES. Pending the preparation of any Definitive
Notes,  the  Issuing  Entity may execute  and upon its  written  direction,  the
Indenture  Trustee may authenticate  and make available for delivery,  temporary
Notes that are  printed,  lithographed,  typewritten,  photocopied  or otherwise
produced,  in any  denomination,  substantially  of the tenor of the  Definitive
Notes in lieu of which  they are issued  and with such  appropriate  insertions,
omissions,  substitutions  and other  variations as the officers  executing such
Notes may determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuing Entity will cause Definitive
Notes to be prepared without unreasonable delay. After the preparation of the
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the office or agency of the Indenture
Trustee, without charge to the Holder. Upon surrender for cancellation of any
one or more temporary Notes, the Issuing Entity shall execute and the Indenture
Trustee shall authenticate and make available for delivery, in exchange
therefor, Definitive Notes of authorized denominations and of like tenor and
aggregate principal amount. Until so exchanged, such temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Definitive
Notes.

<PAGE>

                                   ARTICLE V

                              Default and Remedies

         Section  5.01  EVENTS OF DEFAULT.  "Event of  Default,"  wherever  used
herein, shall have the meaning provided in Article I; provided, however, that no
Event of Default will occur under clause (i) or clause (ii) of the definition of
"Event of Default" if the Issuing  Entity fails to make payments of principal of
and  interest  on the  Notes  so  long as the  Credit  Enhancer  makes  payments
sufficient therefore under the Credit Enhancement Instrument.

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

         Section 5.02 ACCELERATION OF MATURITY;  RESCISSION AND ANNULMENT. If an
Event of  Default  should  occur  and be  continuing  or if the  Servicer  shall
purchase all of the  Mortgage  Loans  pursuant to Section 8.08 of the  Servicing
Agreement,  then and in every such case the Indenture  Trustee or the Holders of
Notes  representing  not less than a majority  of the  Security  Balances of all
Notes may declare the Notes to be  immediately  due and payable,  by a notice in
writing  to the  Issuing  Entity  (and to the  Indenture  Trustee  if  given  by
Noteholders),  and upon any such declaration the unpaid principal amount of such
Class of Notes,  together with accrued and unpaid  interest  thereon through the
date of acceleration, shall become immediately due and payable. Unless the prior
written consent of the Credit Enhancer shall have been obtained by the Indenture
Trustee, the Payment Date upon which such accelerated payment is due and payable
shall not be a Payment  Date under the  Credit  Enhancement  Instrument  and the
Indenture  Trustee  shall not be  authorized  under  Section 3.28 to make a draw
therefor.

         At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Holders of Notes representing a
majority of the Security Balances of all Notes, by written notice to the Issuing
Entity and the Indenture Trustee, may waive the related Event of Default and
rescind and annul such declaration and its consequences if:

                  (i)  the  Issuing  Entity  has  paid  or  deposited  with  the
         Indenture Trustee a sum sufficient to pay:

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

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

                  (ii) all Events of Default,  other than the  nonpayment of the
         principal of the Notes that has become due solely by such acceleration,
         have been cured or waived as provided in Section 5.12.

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

         Section 5.03  COLLECTION OF  INDEBTEDNESS  AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE.  (a) The Issuing Entity covenants that if (i) default is made
in the  payment  of any  interest  on any Note  when the  same  becomes  due and
payable,  and such default  continues for a period of five days, or (ii) default
is made in the payment of the principal of or any  installment  of the principal
of any Note when the same becomes due and payable,  the Issue shall, upon demand
of the Indenture Trustee, pay to it, for the benefit of the Holders of Notes and
of the Credit  Enhancer,  the whole amount then due and payable on the Notes for
principal  and  interest,  with  interest  upon the  overdue  principal,  and in
addition  thereto such further  amount as shall be sufficient to cover the costs
and expenses of  collection,  including the reasonable  compensation,  expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

         (b) In case the Issuing Entity shall fail forthwith to pay such amounts
upon such demand,  the Indenture  Trustee,  in its own name and as trustee of an
express trust, subject to the provisions of Section 10.17 hereof may institute a
Proceeding for the  collection of the sums so due and unpaid,  and may prosecute
such  Proceeding to judgment or final  decree,  and may enforce the same against
the  Issuing  Entity or other  obligor  upon the Notes and collect in the manner
provided by law out of the property of the Issuing  Entity or other  obligor the
Notes, wherever situated, the monies adjudged or decreed to be payable.

         (c) If an Event of Default  occurs  and is  continuing,  the  Indenture
Trustee  subject  to the  provisions  of  Section  10.17  hereof  may,  as  more
particularly provided in Section 5.04, in its discretion, proceed to protect and
enforce its rights and the rights of the Noteholders and the Credit Enhancer, by
such appropriate  Proceedings as the Indenture Trustee shall deem most effective
to protect and enforce any such rights,  whether for the specific enforcement of
any  covenant or  agreement  in this  Indenture or in aid of the exercise of any
power  granted  herein,  or to  enforce  any  other  proper  remedy  or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

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

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

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

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

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

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

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

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

         (g) In any Proceedings  brought by the Indenture  Trustee (and also any
Proceedings  involving the  interpretation of any provision of this Indenture to
which the Indenture  Trustee shall be a party),  the Indenture  Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

         Section 5.04  REMEDIES;  PRIORITIES.  (a) If an Event of Default  shall
have occurred and be continuing, the Indenture Trustee subject to the provisions
of Section 10.17 hereof may do one or more of the following  (subject to Section
5.05):

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

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

                  (iii)  exercise any remedies of a secured  party under the UCC
         and take any other appropriate action to protect and enforce the rights
         and remedies of the Indenture Trustee, the Holders of the Notes and the
         Credit Enhancer; and

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

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

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

         FIRST: to the Indenture Trustee for amounts due under Section 6.07;

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

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

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

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

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

         SEVENTH: to the payment of the remainder, if any to the Issuing Entity
or any other person legally entitled thereto. The Indenture Trustee may fix a
record date and payment date for any payment to Noteholders pursuant to this
Section 5.04. At least 15 days before such record date, the Indenture Trustee
shall mail to each Noteholder a notice that states the record date, the payment
date and the amount to be paid.

         Section 5.05 OPTIONAL  PRESERVATION  OF THE TRUST ESTATE.  If the Notes
have been declared to be due and payable  under Section 5.02  following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled,  the Indenture  Trustee may, but need not,  elect to take and maintain
possession of the Trust Estate.  It is the desire of the parties  hereto and the
Noteholders  that  there be at all times  sufficient  funds for the  payment  of
principal  of and  interest  on the Notes and other  obligations  of the Issuing
Entity including payment to the Credit Enhancer, and the Indenture Trustee shall
take such  desire  into  account  when  determining  whether  or not to take and
maintain  possession of the Trust  Estate.  In  determining  whether to take and
maintain  possession  of the Trust Estate,  the Indenture  Trustee may, but need
not,  obtain and rely upon an opinion of an  Independent  investment  banking or
accounting  firm of national  reputation as to the  feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

         Section 5.06  LIMITATION OF SUITS. No Holder of any Note shall have any
right to institute any Proceeding,  judicial or otherwise,  with respect to this
Indenture,  or for the  appointment  of a receiver or trustee,  or for any other
remedy hereunder, unless and subject to the provisions of Section 10.17 hereof:

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

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

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

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

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

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

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Security Balances of the Notes,
the Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

         Section 5.07  UNCONDITIONAL  RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Note  shall have the  right,  which is  absolute  and  unconditional,  to
receive  payment of the  principal of and  interest,  if any, on such Note on or
after  the  respective  due  dates  thereof  expressed  in such  Note or in this
Indenture and to institute  suit for the  enforcement  of any such payment,  and
such right shall not be impaired without the consent of such Holder.

         Section  5.08  RESTORATION  OF RIGHTS AND  REMEDIES.  If the  Indenture
Trustee or any  Noteholder has instituted any Proceeding to enforce any right or
remedy  under  this  Indenture  and such  Proceeding  has been  discontinued  or
abandoned  for any  reason or has been  determined  adversely  to the  Indenture
Trustee or to such  Noteholder,  then and in every such case the Issuing Entity,
the Indenture Trustee and the Noteholders shall, subject to any determination in
such  Proceeding,  be  restored  severally  and  respectively  to  their  former
positions  hereunder,  and  thereafter  all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

         Section 5.09 RIGHTS AND REMEDIES CUMULATIVE.  No right or remedy herein
conferred  upon or reserved to the Indenture  Trustee or to the  Noteholders  is
intended  to be  exclusive  of any other  right or remedy,  and every  right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

         Section  5.10 DELAY OR OMISSION  NOT A WAIVER.  No delay or omission of
the Indenture  Trustee or any Holder of any Note to exercise any right or remedy
accruing  upon any Event of  Default  shall  impair  any such right or remedy or
constitute  a waiver of any such Event of Default  or an  acquiescence  therein.
Every  right  and  remedy  given by this  Article  V or by law to the  Indenture
Trustee or to the  Noteholders  may be exercised from time to time, and as often
as may be deemed expedient,  by the Indenture Trustee or by the Noteholders,  as
the case may be.

         Section 5.11 CONTROL BY  NOTEHOLDERS.  The Holders of a majority of the
Security  Balances of Notes shall have the right to direct the time,  method and
place of conducting  any  Proceeding  for any remedy  available to the Indenture
Trustee with respect to the Notes or exercising any trust or power  conferred on
the Indenture Trustee; provided that:

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

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

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

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

         Notwithstanding the rights of Noteholders set forth in this Section,
subject to Section 6.01, the Indenture Trustee need not take any action that it
determines might involve it in liability or might materially adversely affect
the rights of any Noteholders not consenting to such action.

         Section 5.12 WAIVER OF PAST DEFAULTS.  Prior to the  declaration of the
acceleration  of the  maturity  of the Notes as provided  in Section  5.02,  the
Holders of Notes of not less than a majority  of the  Security  Balances  of the
Notes may waive any past Event of Default and its  consequences  except an Event
of Default (a) with respect to payment of principal of or interest on any of the
Notes or (b) in  respect of a  covenant  or  provision  hereof  which  cannot be
modified  or amended  without  the consent of the Holder of each Note or (c) the
waiver of which would  materially  and  adversely  affect the  interests  of the
Credit  Enhancer  or  modify  its  obligation   under  the  Credit   Enhancement
Instrument.  In the case of any such waiver,  the Issuing Entity,  the Indenture
Trustee and the Holders of the Notes shall be restored to their former positions
and rights  hereunder,  respectively;  but no such  waiver  shall  extend to any
subsequent or other Event of Default or impair any right consequent thereto.

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

         Section  5.13  UNDERTAKING  FOR COSTS.  All  parties to this  Indenture
agree, and each Holder of any Note by such Holder's  acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture,  or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture  Trustee,  the  filing  by any  party  litigant  in  such  suit  of an
undertaking  to pay the  costs of such  suit,  and that  such  court  may in its
discretion  assess  reasonable  costs,  including  reasonable  attorneys'  fees,
against  any party  litigant  in such suit,  having due regard to the merits and
good  faith of the  claims or  defenses  made by such  party  litigant;  but the
provisions  of this Section 5.13 shall not apply to (a) any suit  instituted  by
the Indenture  Trustee,  (b) any suit instituted by any Noteholder,  or group of
Noteholders, in each case holding in the aggregate more than 10% of the Security
Balances  of the  Notes or (c) any suit  instituted  by any  Noteholder  for the
enforcement  of the payment of  principal of or interest on any Note on or after
the respective due dates expressed in such Note and in this Indenture.

         Section  5.14 WAIVER OF STAY OR  EXTENSION  LAWS.  The  Issuing  Entity
covenants  (to the extent  that it may  lawfully  do so) that it will not at any
time  insist  upon,  or plead  or in any  manner  whatsoever,  claim or take the
benefit or advantage of, any stay or extension law wherever  enacted,  now or at
any time hereafter in force, that may affect the covenants or the performance of
this  Indenture;  and the Issuing  Entity (to the extent that it may lawfully do
so) hereby  expressly  waives  all  benefit or  advantage  of any such law,  and
covenants  that it shall not hinder,  delay or impede the execution of any power
herein  granted  to the  Indenture  Trustee,  but will  suffer  and  permit  the
execution of every such power as though no such law had been enacted.

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

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

                  (1) the Holders of all Notes and the Credit  Enhancer  consent
         to or direct the Indenture Trustee to make, such Sale, or

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

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

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

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

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

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

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

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

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

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

         Section 5.16 ACTION ON NOTES. The Indenture Trustee's right to seek and
recover  judgment on the Notes or under this Indenture  shall not be affected by
the seeking,  obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture  Trustee against the Issuing Entity or by the levy
of any  execution  under such  judgment  upon any portion of the Trust Estate or
upon any of the assets of the Issuing Entity. Any money or property collected by
the Indenture Trustee shall be applied in accordance with Section 5.04(b).

         Section 5.17  PERFORMANCE AND ENFORCEMENT OF CERTAIN  OBLIGATIONS.  (a)
Promptly  following  a request  from the  Indenture  Trustee to do so and at the
Administrator's  expense,  the Issuing  Entity in its  capacity as holder of the
Mortgage Loans,  shall take all such lawful action as the Indenture  Trustee may
request  to cause the  Issuing  Entity to compel or secure the  performance  and
observance  by the  Seller and the  Servicer,  as  applicable,  of each of their
obligations to the Issuing Entity under or in connection  with the Mortgage Loan
Purchase  Agreement  and the  Servicing  Agreement,  and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuing Entity
under or in  connection  with  the  Mortgage  Loan  Purchase  Agreement  and the
Servicing  Agreement to the extent and in the manner  directed by the  Indenture
Trustee, as pledgee of the Mortgage Loans, including the transmission of notices
of  default  on the  part  of the  Seller  or the  Servicer  thereunder  and the
institution  of legal or  administrative  actions  or  proceedings  to compel or
secure  performance  by the Seller or the Servicer of each of their  obligations
under the Mortgage Loan Purchase Agreement and the Servicing Agreement.

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

<PAGE>

                                   ARTICLE VI

                              The Indenture Trustee

         Section  6.01 DUTIES OF INDENTURE  TRUSTEE.  (a) If an Event of Default
has occurred and is continuing,  the Indenture Trustee shall exercise the rights
and powers  vested in it by this  Indenture  and use the same degree of care and
skill in their  exercise  as a prudent  person  would  exercise or use under the
circumstances in the conduct of such person's own affairs.

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

                  (i) the  Indenture  Trustee  undertakes to perform such duties
         and only such duties as are  specifically  set forth in this  Indenture
         and no  implied  covenants  or  obligations  shall  be read  into  this
         Indenture against the Indenture Trustee; and

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

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

                  (i) this  paragraph does not limit the effect of paragraph (b)
         of this Section 6.01;

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

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

         (d) The Indenture Trustee shall not be liable for interest on any money
received by it except as the  Indenture  Trustee  may agree in writing  with the
Issuing Entity.

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

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

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

         Section 6.02 RIGHTS OF INDENTURE TRUSTEE. (a) The Indenture Trustee may
rely on any  document  believed  by it to be genuine  and to have been signed or
presented by the proper person.  The Indenture  Trustee need not investigate any
fact or matter stated in the document.

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

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

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

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

         Section 6.03  INDIVIDUAL  RIGHTS OF INDENTURE  TRUSTEE.  The  Indenture
Trustee in its  individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuing  Entity or its Affiliates  with
the  same  rights  it  would  have  if  it  were  not  Indenture  Trustee.   Any
Administrator,  Note Registrar,  co-registrar or co-paying agent may do the same
with like rights.  However, the Indenture Trustee must comply with Sections 6.11
and 6.12.

         Section 6.04  INDENTURE  TRUSTEE'S  DISCLAIMER.  The Indenture  Trustee
shall not be responsible for and makes no  representation  as to the validity or
adequacy of this  Indenture or the Notes,  it shall not be  accountable  for the
Issuing  Entity's  use of the  proceeds  from the  Notes,  and it  shall  not be
responsible  for any statement of the Issuing  Entity in the Indenture or in any
document  issued in connection  with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         Section 6.05 NOTICE OF EVENT OF DEFAULT.  If an Event of Default occurs
and is continuing  and if it is known to a Responsible  Officer of the Indenture
Trustee, the Indenture Trustee shall give notice thereof to the Credit Enhancer.
The Trustee shall mail to each Noteholder  notice of the Event of Default within
90 days after it occurs. Except in the case of an Event of Default in payment of
principal  of or interest on any Note,  the  Indenture  Trustee may withhold the
notice if and so long as a committee of its  Responsible  Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

         Section  6.06 REPORTS BY INDENTURE  TRUSTEE TO HOLDERS.  The  Indenture
Trustee shall deliver to each Noteholder such  information as may be required to
enable  such holder to prepare its  federal  and state  income tax  returns.  In
addition, upon the Issuing Entity's written request, the Indenture Trustee shall
promptly furnish information  reasonably requested by the Issuing Entity that is
reasonably  available to the Indenture  Trustee to enable the Issuing  Entity to
perform its federal and state income tax reporting obligations.

         Section 6.07  COMPENSATION  AND INDEMNITY.  The Issuing Entity shall or
shall cause the  Administrator  to pay to the Indenture  Trustee on each Payment
Date  reasonable   compensation  for  its  services.   The  Indenture  Trustee's
compensation  shall not be limited by any law on compensation of a trustee of an
express  trust.  The Issuing  Entity shall or shall cause the  Administrator  to
reimburse  the  Indenture  Trustee  for all  reasonable  out-of-pocket  expenses
incurred  or made by it,  including  costs of  collection,  in  addition  to the
compensation  for its  services.  Such  expenses  shall  include the  reasonable
compensation and expenses, disbursements and advances of the Indenture Trustee's
agents,  counsel,  accountants  and experts.  The Issuing  Entity shall or shall
cause the  Administrator to indemnify the Indenture  Trustee against any and all
loss,  liability  or  expense  (including  attorneys'  fees)  incurred  by it in
connection  with the  administration  of this trust and the  performance  of its
duties hereunder.  The Indenture Trustee shall notify the Issuing Entity and the
Administrator promptly of any claim for which it may seek indemnity.  Failure by
the  Indenture  Trustee to so notify the  Issuing  Entity and the  Administrator
shall not relieve the Issuing  Entity or the  Administrator  of its  obligations
hereunder.  The Issuing Entity shall or shall cause the  Administrator to defend
any such claim,  and the  Indenture  Trustee may have  separate  counsel and the
Issuing  Entity  shall  or shall  cause  the  Administrator  to pay the fees and
expenses of such counsel.  Neither the Issuing Entity nor the Administrator need
reimburse  any  expense or  indemnify  against  any loss,  liability  or expense
incurred by the Indenture  Trustee  through the Indenture  Trustee's own willful
misconduct, negligence or bad faith.

         The Issuing Entity's payment obligations to the Indenture Trustee
pursuant to this Section 6.07 shall survive the discharge of this Indenture.
When the Indenture Trustee incurs expenses after the occurrence of an Event of
Default specified in Section 5.01(iv) or (v) with respect to the Issuing Entity,
the expenses are intended to constitute expenses of administration under Title
11 of the United States Code or any other applicable federal or state
bankruptcy, insolvency or similar law.

         Section  6.08  REPLACEMENT  OF INDENTURE  TRUSTEE.  No  resignation  or
removal of the Indenture  Trustee and no  appointment  of a successor  Indenture
Trustee  shall become  effective  until the  acceptance  of  appointment  by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may  resign  at any time by so  notifying  the  Issuing  Entity  and the  Credit
Enhancer. The Holders of a majority of Security Balances of the Notes may remove
the  Indenture  Trustee by so  notifying  the  Indenture  Trustee and the Credit
Enhancer and may appoint a successor Indenture Trustee. The Issuing Entity shall
remove the Indenture Trustee if:

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

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

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

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

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

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

         If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuing Entity or the Holders of a majority of Security
Balances of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

         If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may petition any court of competent jurisdiction for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

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

         Section 6.09 SUCCESSOR  INDENTURE  TRUSTEE BY MERGER.  If the Indenture
Trustee  consolidates  with,  merges  or  converts  into,  or  transfers  all or
substantially all its corporate trust business or assets to, another corporation
or banking  association,  the  resulting,  surviving or  transferee  corporation
without any further act shall be the successor Indenture Trustee; provided, that
such  corporation  or  banking  association  shall be  otherwise  qualified  and
eligible  under  Section 6.11.  The  Indenture  Trustee shall provide the Rating
Agencies prior written notice of any such transaction.

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

         Section 6.10 APPOINTMENT OF CO-INDENTURE  TRUSTEE OR SEPARATE INDENTURE
TRUSTEE.  (a)  Notwithstanding  any other  provisions of this Indenture,  at any
time, for the purpose of meeting any legal  requirement of any  jurisdiction  in
which any part of the Trust  Estate may at the time be  located,  the  Indenture
Trustee  shall have the power and may execute and  deliver  all  instruments  to
appoint one or more Persons to act as a co-trustee or  co-trustees,  or separate
trustee or separate  trustees,  of all or any part of the Trust,  and to vest in
such Person or Persons, in such capacity and for the benefit of the Noteholders,
such title to the Trust Estate,  or any part hereof,  and,  subject to the other
provisions of this Section, such powers, duties, obligations,  rights and trusts
as the Indenture Trustee may consider  necessary or desirable.  No co-trustee or
separate  trustee here under shall be required to meet the terms of  eligibility
as a successor  trustee under Section 6.11 and no notice to  Noteholders  of the
appointment  of any  co-trustee  or separate  trustee  shall be  required  under
Section 6.08 hereof.

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

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

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

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

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

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

         Section 6.11 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a).  The Indenture  Trustee
shall have a combined capital and surplus of at least [$50,000,000] as set forth
in its most recent  published  annual  report of condition  and it or its parent
shall  have a  long-term  debt  rating of [Baa3]  or  better by  [Moody's].  The
Indenture  Trustee  shall  comply with TIA ss.  310(b),  including  the optional
provision  permitted  by the second  sentence  of TIA ss.  310(b)(9);  provided,
however,  that there shall be excluded from the  operation of TIA ss.  310(b)(1)
any indenture or indentures  under which other  securities of the Issuing Entity
are  outstanding  if the  requirements  for such  exclusion set forth in TIA ss.
310(b)(1)  are met.  Section  6.12  PREFERENTIAL  COLLECTION  OF CLAIMS  AGAINST
ISSUING  ENTITY.  The  Indenture  Trustee  shall  comply  with  TIA ss.  311(a),
excluding  any  creditor  relationship  listed in TIA ss.  311(b).  An Indenture
Trustee who has resigned or been removed  shall be subject to TIA ss.  311(a) to
the extent indicated.

         Section 6.13 REPRESENTATION AND WARRANTY.  The Indenture Trustee hereby
represents that:

                  (i) The  Indenture  Trustee  is  duly  organized  and  validly
         existing as a corporation  in good standing under the laws of the State
         of  ___________,  with power and authority to own its properties and to
         conduct its business as such  properties  are currently  owned and such
         business is presently conducted.

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

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

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

         Section 6.14 DIRECTIONS TO INDENTURE TRUSTEE.  The Indenture Trustee is
hereby directed:

         (a) to accept the pledge of the  Mortgage  Loans and hold the assets of
the Trust in trust for the Noteholders;

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

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

         Section 6.15 [Reserved]

         Section  6.16  INDENTURE  TRUSTEE  MAY OWN  SECURITIES.  The  Indenture
Trustee, in its individual or any other capacity may become the owner or pledgee
of  Securities  with the same  rights  it  would  have if it were not  Indenture
Trustee.

<PAGE>

                                  ARTICLE VII

                         Noteholders' Lists and Reports

         Section  7.01 ISSUING  ENTITY TO FURNISH  INDENTURE  TRUSTEE  NAMES AND
ADDRESSES  OF  NOTEHOLDERS.  The  Issuing  Entity  will  furnish  or cause to be
furnished to the Indenture Trustee (a) not more than five days after each Record
Date, a list, in such form as the Indenture Trustee may reasonably  require,  of
the names and  addresses of the Holders of Notes as of such Record Date,  (b) at
such other times as the Indenture Trustee and the Credit Enhancer may request in
writing, within 30 days after receipt by the Issuing Entity of any such request,
a list of similar  form and  content as of a date not more than 10 days prior to
the  time  such  list  is  furnished;  provided,  however,  that  so long as the
Indenture  Trustee is the Note  Registrar,  no such list shall be required to be
furnished.

         Section   7.02   PRESERVATION   OF   INFORMATION;   COMMUNICATIONS   TO
NOTEHOLDERS.  (a) The Indenture Trustee shall preserve,  in as current a form as
is  reasonably  practicable,  the names and  addresses  of the  Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes  received by the
Indenture  Trustee in its capacity as Note Registrar.  The Indenture Trustee may
destroy any list  furnished  to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

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

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

         Section 7.03 REPORTS BY ISSUING ENTITY. (a) The Issuing Entity shall:

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

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

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

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

         Section  7.04  REPORTS BY  INDENTURE  TRUSTEE.  If  required by TIA ss.
313(a),  within 60 days after each January 1 beginning with January 1, 200_, the
Indenture  Trustee  shall mail to each  Noteholder as required by TIA ss. 313(c)
and to the Credit  Enhancer a brief report  dated as of such date that  complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b).

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

         Section 7.05 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.

         (a) (i) Within 15 days  after each  Distribution  Date,  the  Indenture
Trustee shall, in accordance with industry  standards,  file with the Commission
via the Electronic Data Gathering and Retrieval System ("EDGAR"), a Distribution
Report  on  Form  10-D,  signed  by the  Servicer,  with a copy  of the  monthly
statement to be furnished by the Indenture  Trustee to the  Noteholders for such
Distribution  Date and detailing all data elements  specified in Item 1121(a) of
Regulation  AB as part of the monthly  statement;  provided  that the  Indenture
Trustee  shall  have  received  no later  than 2 days  prior  to the  date  such
Distribution  Report  on Form 10-D is  required  to be  filed,  all  information
required to be provided to the Indenture  Trustee as described in clause (a)(iv)
below.

         (ii) The  Indenture  Trustee will  prepare and file Current  Reports on
Form 8-K in respect of the Trust, signed by the Servicer,  as and when required;
provided,  that,  the  Indenture  Trustee  shall have received no later than one
Business  Day  prior  to the  filing  deadline  for  such  Current  Report,  all
information,  data,  and  exhibits  required  to be  provided or filed with such
Current Report and required to be provided to the Indenture Trustee as described
in clause (a)(iv) below.

         (iii)  Prior  to  January  30 in each  year  commencing  in  2007,  the
Indenture Trustee shall, in accordance with industry  standards,  file a Form 15
Suspension  Notice with respect to the Trust Fund, if  applicable.  Prior to (x)
March 15, 2007 and (y) unless and until a Form 15  Suspension  Notice shall have
been  filed,  prior to March 15 of each  year  thereafter,  the  Servicer  shall
provide the Indenture Trustee with an Annual Compliance Statement, together with
a copy of the Assessment of Compliance and Attestation Report to be delivered by
the Servicer pursuant to the Servicing Agreement  (including with respect to any
subservicer or subcontractor,  if required to be filed).  Prior to (x) March 31,
2007 and (y) unless and until a Form 15 Suspension Notice shall have been filed,
March 31 of each year  thereafter,  the  Indenture  Trustee  shall,  subject  to
subsection  (d) below,  file a Form 10-K,  in substance  conforming  to industry
standards,  with  respect to the Trust  Fund.  Such Form 10-K shall  include the
Assessment of Compliance,  Attestation Report,  Annual Compliance Statements and
other documentation provided by the Servicer pursuant to the Servicing Agreement
(including with respect to any subservicer or  subcontractor,  if required to be
filed) and with respect to the Indenture Trustee and the Custodian, and the Form
10-K certification signed by the Depositor;  provided that the Indenture Trustee
shall have  received no later than March 15 of each  calendar  year prior to the
filing deadline for the Form 10-K all information, data and exhibits required to
be  provided  or filed with such Form 10-K and  required  to be  provided to the
Indenture Trustee as described in clause (a)(iv) below.

         (iv) As to each item of information required to be included in any Form
10-D, Form 8-K or Form 10-K, the Indenture  Trustee's  obligation to include the
information in the applicable  report is subject to receipt from the entity that
is  indicated  in  Exhibit  __ as  the  responsible  party  for  providing  that
information,  if other  than the  Indenture  Trustee,  as and when  required  as
described  above.  Each of the Servicer,  Seller and  Depositor  hereby agree to
notify and provide to the Indenture  Trustee all information that is required to
be included in any Form 10-D,  Form 8-K or Form 10-K, with respect to which that
entity is indicated in Exhibit __ as the  responsible  party for providing  that
information.  The Swap Provider will be obligated pursuant to the Swap Agreement
to provide to the Indenture  Trustee any information  that may be required to be
included in any Form 10-D, Form 8-K or Form 10-K. The Indenture Trustee shall be
responsible for determining the significance percentage (as defined in Item 1115
of  Regulation  AB) of the Swap  Provider  at any time.  The  Servicer  shall be
responsible for determining the pool concentration applicable to any subservicer
or originator at any time,  for purposes of disclosure as required by Items 1117
and 1119 of Regulation AB.

The Depositor hereby grants to the Servicer a limited power of attorney to sign
each Form 10-D, Form 8-K and Form 10-K on behalf of the Depositor. Such power of
attorney shall continue until either the earlier of (x) receipt by the Servicer
from the Depositor of written termination of such power of attorney and (y) the
termination of the Trust Fund. The Depositor agrees to promptly furnish to the
Indenture Trustee, from time to time upon request, such further information,
reports and financial statements within its control related to this Agreement,
the Mortgage Loans as the Indenture Trustee reasonably deems appropriate to
prepare and file all necessary reports with the Commission. The Indenture
Trustee shall have no responsibility to file any items other than those
specified in this Section 7.05; provided, however, the Indenture Trustee will
cooperate with the Depositor in connection with any additional filings with
respect to the Trust Fund as the Depositor deems necessary under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Copies of all reports
filed by the Indenture Trustee under the Exchange Act shall be sent to: the
Depositor c/o _____________, Attn: _____________, _____________, _____________,
_____________. Fees and expenses incurred by the Indenture Trustee in connection
with this Section 7.05 shall not be reimbursable from the Trust Fund.

         (b) In connection with the filing of any 10-K hereunder,  the Indenture
Trustee shall sign a  certification  (in the form attached hereto as Exhibit __)
for the  Depositor  regarding  certain  aspects  of the Form 10-K  certification
signed by the Depositor, provided, however, that the Indenture Trustee shall not
be required to undertake an analysis of any  accountant's  report attached as an
exhibit to the Form 10-K.

         (c) In connection with the filing of any 10-K  hereunder,  the Servicer
shall sign a  certification  (in the form attached hereto as Exhibit __) for the
benefit  of  the  Depositor   regarding   certain   aspects  of  the  Form  10-K
certification  signed by the  Depositor,  provided,  however,  that the Servicer
shall not be  required to  undertake  an  analysis  of any  accountant's  report
attached as an exhibit to the Form 10-K.

         (d) The  Indenture  Trustee  shall  indemnify  and  hold  harmless  the
Depositor  and its  officers,  directors  and  affiliates  from and  against any
losses, damages, penalties,  fines, forfeitures,  reasonable and necessary legal
fees and related costs, judgments and other costs and expenses arising out of or
based upon a breach of the Indenture  Trustee's  obligations  under this Section
7.05 or the Indenture Trustee's  negligence,  bad faith or willful misconduct in
connection therewith.

         The Depositor shall indemnify and hold harmless the Indenture Trustee
and its officers, directors and affiliates from and against any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments and other costs and expenses arising out of or based upon a
breach of the obligations of the Depositor under this Section 7.05 or the
Depositor's negligence, bad faith or willful misconduct in connection therewith.

         The Servicer shall indemnify and hold harmless the Indenture Trustee
and the Depositor and their respective officers, directors and affiliates from
and against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the obligations of the Servicer under
this Section 7.05 or the Servicer's negligence, bad faith or willful misconduct
in connection therewith.

         If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Depositor or the Indenture Trustee, as
applicable, then the defaulting party, in connection with a breach of its
respective obligations under this Section 7.05 or its respective negligence, bad
faith or willful misconduct in connection therewith, agrees that it shall
contribute to the amount paid or payable by the other parties as a result of the
losses, claims, damages or liabilities of the other party in such proportion as
is appropriate to reflect the relative fault and the relative benefit of the
Depositor on the one hand and the Indenture Trustee on the other.

(e) Nothing shall be construed from the foregoing subsections (a), (b) and (c)
to require the Indenture Trustee or any officer, director or Affiliate thereof
to sign any Form 10-K or any certification contained therein. Furthermore, the
inability of the Indenture Trustee to file a Form 10-K as a result of the lack
of required information as set forth in Section 7.05(a) or required signatures
on such Form 10-K or any certification contained therein shall not be regarded
as a breach by the Indenture Trustee of any obligation under this Agreement.

         This Section 7.05 may be amended without the consent of the
Noteholders.

<PAGE>

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

         Section  8.01  COLLECTION  OF  MONEY.  Except  as  otherwise  expressly
provided  herein,  the Indenture  Trustee may demand payment or delivery of, and
shall receive and collect,  directly and without  intervention  or assistance of
any fiscal agent or other intermediary,  all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture,  if any default occurs
in the making of any payment or  performance  under any  agreement or instrument
that is part of the Trust Estate,  the Indenture Trustee may take such action as
may be  appropriate  to enforce  such  payment  or  performance,  including  the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         Section 8.02 TRUST  ACCOUNTS.  (a) On or prior to the Closing Date, the
Issuing Entity shall cause the Indenture  Trustee to establish and maintain,  in
the name of the Indenture  Trustee,  for the benefit of the  Noteholders and the
Certificate  Paying Agent,  on behalf of the  Certificateholders  and the Credit
Enhancer, the Payment Account as provided in Section 3.01 of this Indenture.

         (b) All  monies  deposited  from  time to time in the  Payment  Account
pursuant to the Servicing  Agreement and all deposits  therein  pursuant to this
Indenture  are for the benefit of the  Noteholders  and the  Certificate  Paying
Agent, on behalf of the  Certificateholders  and all investments  made with such
monies  including  all  income or other gain from such  investments  are for the
benefit of the Servicer as provided by the Servicing Agreement.

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

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

         The Servicer may direct the Indenture Trustee to invest any funds in
the Payment Account in Eligible Investments maturing no later than the Business
Day preceding each Payment Date and shall not be sold or disposed of prior to
the maturity. Unless otherwise instructed by the Servicer, the Indenture Trustee
shall invest all funds in the Payment Account in Eligible Investments.

         (c) On or before the Closing Date the Issuing Entity shall open, at the
Corporate  Trust Office,  an account which shall be the "Funding  Account".  The
Servicer  may direct the  Indenture  Trustee to invest any funds in the  Funding
Account  in  Eligible  Investments  maturing  no  later  than the  Business  Day
preceding  each  Payment  Date and shall not be sold or disposed of prior to the
maturity.  Unless otherwise  instructed by the Servicer,  the Indenture  Trustee
shall invest all funds in the Payment  Account in its Corporate Trust Short Term
Investment  Fund so long as it is an  Eligible  Investment.  During the  Funding
Period,  any  amounts  received  by the  Indenture  Trustee  in  respect  of Net
Principal  Collections  for deposit in the Funding  Account,  together  with any
Eligible  Investments in which such monies are or will be invested or reinvested
during  the term of the  Notes,  shall be held by the  Indenture  Trustee in the
Funding  Account  as part of the  Trust  Estate,  subject  to  disbursement  and
withdrawal  as herein  provided.  Amounts on deposit in the  Funding  Account in
respect of Net Principal  Collections  may be withdrawn on each Deposit Date and
(1) paid to the Issuing Entity in payment for Additional Loans by the deposit of
such amount to the  Collection  Account and (2) at the end of the Funding Period
any amounts  remaining in the Funding Account after the withdrawal called for by
clause (1) shall be  deposited  in the  Payment  Account to be  included  in the
payment of  principal  on the  Payment  Date that is the last day of the Funding
Period.

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

         Section 8.03 OFFICER'S CERTIFICATE. The Indenture Trustee shall receive
at least  [seven] days notice when  requested by the Issuing  Entity to take any
action pursuant to Section 8.05(a),  accompanied by copies of any instruments to
be executed,  and the Indenture  Trustee  shall also require,  as a condition to
such action, an Officer's Certificate, in form and substance satisfactory to the
Indenture  Trustee,  stating the legal effect of any such action,  outlining the
steps  required  to  complete  the  same,  and  concluding  that all  conditions
precedent to the taking of such action have been complied with.

         Section  8.04  TERMINATION  UPON  DISTRIBUTION  TO  NOTEHOLDERS.   This
Indenture and the respective  obligations  and  responsibilities  of the Issuing
Entity  and the  Indenture  Trustee  created  hereby  shall  terminate  upon the
distribution  to  Noteholders,  Certificate  Paying  Agent,  on  behalf  of  the
Certificateholders  and the  Indenture  Trustee of all  amounts  required  to be
distributed pursuant to Article III; provided,  however,  that in no event shall
the trust created  hereby  continue  beyond the  expiration of 21 years from the
death  of the  survivor  of the  descendants  of  Joseph  P.  Kennedy,  the late
ambassador of the United  States to the Court of St.  James,  living on the date
hereof.

         Section 8.05 RELEASE OF TRUST ESTATE. (a) Subject to the payment of its
fees  and  expenses,  the  Indenture  Trustee  may,  and  when  required  by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture,  or convey the Indenture  Trustee's  interest in the
same, in a manner and under  circumstances  that are not  inconsistent  with the
provisions of this  Indenture.  No party relying upon an instrument  executed by
the Indenture  Trustee as provided in Article VIII  hereunder  shall be bound to
ascertain the Indenture  Trustee's  authority,  inquire into the satisfaction of
any conditions precedent, or see to the application of any monies.

         (b) The Indenture Trustee shall, at such time as (i) there are no Notes
Outstanding,  (ii) all sums due the Indenture Trustee pursuant to this Indenture
have been  paid,  and (iii) all sums due the  Credit  Enhancer  have been  paid,
release any  remaining  portion of the Trust  Estate that secured the Notes from
the lien of this Indenture.

         [(c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of an request from the
Issuing Entity accompanied by an [Officers' Certificate], [an Opinion of
Counsel,] and a letter from the Credit Enhancer, stating that the Credit
Enhancer has no objection to such request from the Issuing Entity.]

         Section 8.06  SURRENDER OF NOTES UPON FINAL  PAYMENT.  By acceptance of
any Note,  the Holder  thereof  agrees to surrender  such Note to the  Indenture
Trustee  promptly,  prior to such  Noteholder's  receipt  of the  final  payment
thereon.

<PAGE>

                                   ARTICLE IX

                             Supplemental Indentures

         Section 9.01  SUPPLEMENTAL  INDENTURES  WITHOUT CONSENT OF NOTEHOLDERS.
(a)  Without the consent of the Holders of any Notes but with the consent of the
Credit Enhancer and prior notice to the Rating Agencies and the Credit Enhancer,
the Issuing  Entity and the  Indenture  Trustee,  when  authorized  by an Issuer
Request,  at any  time  and  from  time to  time,  may  enter  into  one or more
indentures  supplemental  hereto (which shall  conform to the  provisions of the
Trust Indenture Act as in force at the date of the execution  thereof),  in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

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

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

                  (v) to cure  any  ambiguity,  to  correct  or  supplement  any
         provision  herein  or  in  any  supplemental   indenture  that  may  be
         inconsistent  with any other  provision  herein or in any  supplemental
         indenture;

                  (vi) to make any other  provisions  with respect to matters or
         questions   arising  under  this  Indenture  or  in  any   supplemental
         indenture;   provided,  that  such  action  shall  not  materially  and
         adversely affect the interests of the Holders of the Notes;

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

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

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

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

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

         Section 9.02 SUPPLEMENTAL  INDENTURES WITH CONSENT OF NOTEHOLDERS.  The
Issuing Entity and the Indenture Trustee,  when authorized by an Issuer Request,
also may, with prior notice to the Rating Agencies and, with the written consent
of the Credit  Enhancer  and with the  consent of the Holders of not less than a
majority of the Security  Balances of each Class of Notes affected  thereby,  by
Act of such Holders  delivered to the Issuing Entity and the Indenture  Trustee,
enter into an indenture  or  indentures  supplemental  hereto for the purpose of
adding any provisions  to, or changing in any manner or  eliminating  any of the
provisions  of, this  Indenture  or of modifying in any manner the rights of the
Holders  of the Notes  under this  Indenture;  provided,  however,  that no such
supplemental  indenture  shall,  without  the consent of the Holder of each Note
affected thereby:

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

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

                  (iii)  modify or alter the  provisions  of the  proviso to the
         definition of the term  "Outstanding"  or modify or alter the exception
         in the definition of the term "Holder";

                  (iv) reduce the  percentage  of the  Security  Balances of the
         Notes  required to direct the  Indenture  Trustee to direct the Issuing
         Entity to sell or liquidate the Trust Estate pursuant to Section 5.04;

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

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

                  (vii) permit the creation of any lien ranking prior to or on a
         parity with the lien of this  Indenture with respect to any part of the
         Trust Estate or, except as otherwise permitted or contemplated  herein,
         terminate  the  lien of this  Indenture  on any  property  at any  time
         subject  hereto  or  deprive  the  Holder  of any Note of the  security
         provided by the lien of this  Indenture;  and provided,  further,  that
         such action shall not, as evidenced by an Opinion of Counsel, cause the
         Issuing Entity to be subject to an entity level tax.

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

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

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

         Section 9.03 EXECUTION OF  SUPPLEMENTAL  INDENTURES.  In executing,  or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the  modification  thereby of the trusts created
by this  Indenture,  the  Indenture  Trustee  shall be entitled to receive,  and
subject to Sections 6.01 and 6.02,  shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized or permitted by this Indenture.  The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture  Trustee's own rights,  duties,  liabilities or immunities  under this
Indenture or otherwise.

         Section 9.04 EFFECT OF  SUPPLEMENTAL  INDENTURE.  Upon the execution of
any supplemental  indenture  pursuant to the provisions  hereof,  this Indenture
shall be and shall be deemed to be modified and amended in accordance  therewith
with  respect  to  the  Notes  affected  thereby,  and  the  respective  rights,
limitations of rights,  obligations,  duties,  liabilities and immunities  under
this Indenture of the Indenture  Trustee,  the Issuing Entity and the Holders of
the Notes shall  thereafter  be  determined,  exercised  and enforced  hereunder
subject in all respects to such modifications and amendments,  and all the terms
and conditions of any such  supplemental  indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

         Section 9.05  CONFORMITY  WITH TRUST  INDENTURE ACT. Every amendment of
this  Indenture  and every  supplemental  indenture  executed  pursuant  to this
Article IX shall conform to the  requirements of the Trust Indenture Act as then
in effect so long as this  Indenture  shall  then be  qualified  under the Trust
Indenture Act.

         Section  9.06  REFERENCE  IN NOTES TO  SUPPLEMENTAL  INDENTURES.  Notes
authenticated  and delivered after the execution of any  supplemental  indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a  notation  in form  approved  by the  Indenture  Trustee as to any matter
provided  for in such  supplemental  indenture.  If the  Issuing  Entity  or the
Indenture  Trustee shall so determine,  new Notes so modified as to conform,  in
the  opinion  of the  Indenture  Trustee  and the  Issuing  Entity,  to any such
supplemental  indenture  may be prepared and executed by the Issuing  Entity and
authenticated and delivered by the Indenture Trustee in exchange for Outstanding
Notes.

<PAGE>

                                   ARTICLE X

                                  Miscellaneous

         Section 10.01 COMPLIANCE  CERTIFICATES AND OPINIONS,  ETC. (a) Upon any
application  or request by the Issuing  Entity to the Indenture  Trustee to take
any action  under any  provision  of this  Indenture,  the Issuing  Entity shall
furnish to the  Indenture  Trustee and to the Credit  Enhancer  (i) an Officer's
Certificate stating that all conditions precedent,  if any, provided for in this
Indenture  relating to the proposed  action have been  complied with and (ii) an
Opinion  of  Counsel  stating  that in the  opinion  of such  counsel  all  such
conditions precedent,  if any, have been complied with, except that, in the case
of any such  application or request as to which the furnishing of such documents
is  specifically  required by any  provision of this  Indenture,  no  additional
certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

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

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

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

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

                           (5) if the Signer of such  Certificate  or Opinion is
                  required  to be  Independent,  the  Statement  required by the
                  definition of the term "Independent".

         (b) (i) Prior to the  deposit of any  Collateral  or other  property or
securities  with the  Indenture  Trustee  that is to be made the  basis  for the
release of any property or securities subject to the lien of this Indenture, the
Issuing Entity shall, in addition to any obligation  imposed in Section 10.01(a)
or elsewhere in this  Indenture,  furnish to the Indenture  Trustee an Officer's
Certificate  certifying  or stating  the  opinion of each  person  signing  such
certificate as to the fair value (within 90 days of such deposit) to the Issuing
Entity of the Collateral or other property or securities to be so deposited.

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

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

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

                  (v)  Notwithstanding  any  provision  of this  Indenture,  the
         Issuing Entity may,  without  compliance  with the  requirements of the
         other provisions of this Section 10.01, (A) collect,  sell or otherwise
         dispose  of the  Mortgage  Loans  as and to  the  extent  permitted  or
         required by the Basic  Documents  or (B) make cash  payments out of the
         Payment Account as and to the extent permitted or required by the Basic
         Documents  [,  so long  as the  Issuing  Entity  shall  deliver  to the
         Indenture  Trustee  every  six  months,  commencing  _____________,  an
         Officer's  Certificate  of the  Issuing  Entity  stating  that  all the
         dispositions  of Collateral  described in clauses (A) or (B) above that
         occurred  during the preceding six calendar months were in the ordinary
         course of the Issuing  Entity's  business and that the proceeds thereof
         were applied in accordance with the Basic Documents].

         Section 10.02 FORM OF DOCUMENTS  DELIVERED TO INDENTURE TRUSTEE. In any
case where  several  matters are required to be  certified  by, or covered by an
opinion of, any specified  Person,  it is not necessary that all such matters be
certified  by, or covered by the opinion of, only one such Person,  or that they
be so certified or covered by only one document, but one such Person may certify
or give an  opinion  with  respect  to some  matters  and one or more other such
Persons as to other matters,  and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

         Section   10.03  ACTS  OF   NOTEHOLDERS.   (a)  Any  request,   demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be  given or taken by  Noteholders  may be  embodied  in and
evidenced by one or more  instruments of  substantially  similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee,  and, where it
is  hereby  expressly  required,  to the  Issuing  Entity.  Such  instrument  or
instruments (and the action embodied  therein and evidenced  thereby) are herein
sometimes referred to as the "Act" of the Noteholders signing such instrument or
instruments.  Proof  of  execution  of  any  such  instrument  or  of a  writing
appointing  any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01)  conclusive in favor of the Indenture  Trustee and
the Issuing Entity, if made in the manner provided in this Section 10.03.

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

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

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

         Section 10.04  NOTICES,  ETC., TO INDENTURE  TRUSTEE,  ISSUING  ENTITY,
CREDIT  ENHANCER  AND  RATING  AGENCIES.  Any  request,  demand,  authorization,
direction,  notice,  consent,  waiver or Act of Note holders or other  documents
provided or permitted by this Indenture shall be in writing and if such request,
demand, authorization,  direction, notice, consent, waiver or act of Noteholders
is to be made upon, given or furnished to or filed with:

                  (i) the Indenture  Trustee by any Noteholder or by the Issuing
         Entity shall be sufficient for every purpose  hereunder if made, given,
         furnished or filed in writing to or with the  Indenture  Trustee at the
         Corporate Trust Office.  The Indenture  Trustee shall promptly transmit
         any notice  received by it from the  Noteholders to the Issuing Entity,
         or

                  (ii) the  Issuing  Entity by the  Indenture  Trustee or by any
         Noteholder  shall be  sufficient  for  every  purpose  hereunder  if in
         writing and mailed  first-class,  postage prepaid to the Issuing Entity
         addressed to:  American  Home  Mortgage  Assets LLC Trust Series 200_ -
         ______,   in  care  of  [Name  of  Owner  Trustee]   _________________,
         __________,           ______________,            Attention           of
         _________________________________________    with   a   copy   to   the
         Administrator     at     ________________     Attention:     __________
         __________________________,   or  at  any  other   address   previously
         furnished in writing to the Indenture  Trustee by the Issuing Entity or
         the  Administrator.  The Issuing  Entity  shall  promptly  transmit any
         notice received by it from the Noteholders to the Indenture Trustee, or

                  (iii) the Credit Enhancer by the Issuing Entity, the Indenture
         Trustee or by any  Noteholders  shall be  sufficient  for every purpose
         hereunder to in writing and mailed,  first-class  postage pre-paid,  or
         personally  delivered  or  telecopied  to:  [Name of Credit  Enhancer],
         ________________,       ________,      _______________,      Attention:
         _________________,        ___________________________,        Telephone
         ______________.  Telecopier  ______________.  The Credit Enhancer shall
         promptly  transmit any notice  received by it from the Issuing  Entity,
         the  Indenture  Trustee or the  Noteholders  to the  Issuing  Entity or
         Indenture Trustee, as the case may be.

         Notices required to be given to the Rating Agencies by the Issuing
Entity, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, to
(i) in the case of [Moody's], at the following address: [Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007] and (ii) in the case of [Standard & Poor's], at the following address:
[Standard & Poor's Ratings Group, 26 Broadway (15th Floor), New York, New York
10004, Attention of Asset Backed Surveillance Department]; or as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

         Section  10.05 NOTICES TO  NOTEHOLDERS;  WAIVER.  Where this  Indenture
provides  for  notice  to  Noteholders  of  any  event,  such  notice  shall  be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing
and mailed,  first-class,  postage prepaid to each  Noteholder  affected by such
event,  at such Person's as it appears on the Note Register,  not later than the
latest date, and not earlier than the earliest  date,  prescribed for the giving
of such  notice.  In any case  where  notice  to  Noteholders  is given by mail,
neither  the  failure to mail such notice nor any defect in any notice so mailed
to any particular  Noteholder  shall affect the  sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall  conclusively  be presumed to have been duly given  regardless of
whether such notice is in fact actually received.

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

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

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

         Section 10.06 ALTERNATE PAYMENT AND NOTICE PROVISIONS.  Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuing
Entity may enter into any  agreement  with any Holder of a Note  providing for a
method of payment,  or notice by the Indenture  Trustee or any  Administrator to
such Holder,  that is different from the methods  provided for in this Indenture
for such payments or notices.  The Issuing Entity shall furnish to the Indenture
Trustee a copy of each such  agreement  and the  Indenture  Trustee  shall cause
payments to be made and notices to be given in accordance with such agreements.

         Section  10.07  CONFLICT  WITH TRUST  INDENTURE  ACT. If any  provision
hereof  limits,  qualifies or conflicts  with another  provision  hereof that is
required to be included in this  Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

         Section  10.08  EFFECT OF  HEADINGS.  The Article and Section  headings
herein are for convenience only and shall not affect the onstruction hereof.

         Section 10.09  SUCCESSORS AND ASSIGNS.  All covenants and agreements in
this Indenture and the Notes by the Issuing Entity shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         Section 10.10 SEPARABILITY.  In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining  provisions shall not in any way be affected
or impaired thereby.

         Section  10.11  BENEFITS  OF  INDENTURE.  The Credit  Enhancer  and its
successors  and assigns shall be a third-party  beneficiary to the provisions of
this Indenture.  Nothing in this Indenture or in the Notes,  express or implied,
shall give to any  Person,  other than the parties  hereto and their  successors
hereunder,  and the Noteholders,  and any other party secured hereunder, and any
other Person with an  ownership  interest in any part of the Trust  Estate,  any
benefit or any legal or equitable right, remedy or claim under this Indenture.

         Section 10.12 LEGAL  HOLIDAYS.  In any case where the date on which any
payment  is due shall not be a Business  Day,  then  (notwithstanding  any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next  succeeding  Business  Day with the same  force  and
effect as if made on the date on which  nominally  due,  and no  interest  shall
accrue for the period from and after any such nominal date.

         Section  10.13  GOVERNING  LAW.  THIS  INDENTURE  SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section  10.14  COUNTERPARTS.  This  Indenture  may be  executed in any
number  of  counterparts,  each of which so  executed  shall be  deemed to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

         Section 10.15  RECORDING OF INDENTURE.  If this Indenture is subject to
recording in any appropriate public recording  offices,  such recording is to be
effected by the Issuing  Entity and at its expense  accompanied by an Opinion of
Counsel  (which  may be counsel to the  Indenture  Trustee or any other  counsel
reasonably  acceptable  to the  Indenture  Trustee)  to  the  effect  that  such
recording is necessary either for the protection of the Noteholders or any other
Person secured  hereunder or for the  enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

         Section  10.16  ISSUING  ENTITY  OBLIGATION.  No recourse may be taken,
directly or indirectly,  with respect to the  obligations of the Issuing Entity,
the Owner Trustee or the Indenture  Trustee on the Notes or under this Indenture
or any  certificate  or  other  writing  delivered  in  connection  herewith  or
therewith,  against  (i) the  Indenture  Trustee  or the  Owner  Trustee  in its
individual  capacity,  (ii) any owner of a  beneficial  interest  in the Issuing
Entity or (iii) any  partner,  owner,  beneficiary,  agent,  officer,  director,
employee  or  agent  of the  Indenture  Trustee  or  the  Owner  Trustee  in its
individual capacity,  any holder of a beneficial interest in the Issuing Entity,
the Owner Trustee or the Indenture  Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly  agreed (it being  understood  that the Indenture
Trustee  and the Owner  Trustee  have no such  obligations  in their  individual
capacity) and except that any such partner,  owner or beneficiary shall be fully
liable,  to the extent provided by applicable law, for any unpaid  consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture,  in the performance of
any duties or  obligations of the Issuing  Entity  hereunder,  the Owner Trustee
shall be subject to, and entitled to the  benefits of, the terms and  provisions
of Article VI, VII and VIII of the Trust Agreement.

         Section 10.17 NO PETITION. The Indenture Trustee, by entering into this
Indenture,  and each Noteholder,  by accepting a Note, hereby covenant and agree
that they will not at any time  institute  against the  Depositor or the Issuing
Entity,  or join in any institution  against the Depositor or the Issuing Entity
of, any  bankruptcy,  reorganization,  arrangement,  insolvency  or  liquidation
proceedings,  or other  proceedings  under any  United  States  federal or state
bankruptcy or similar law in  connection  with any  obligations  relating to the
Notes, this Indenture or any of the Basic Documents.

         Section 10.18 INSPECTION. The Issuing Entity agrees that, on reasonable
prior  notice,  it shall permit any  representative  of the  Indenture  Trustee,
during the Issuing  Entity's  normal business hours, to examine all the books of
account, records, reports and other papers of the Issuing Entity, to make copies
and  extracts  therefrom,  to cause  such  books to be  audited  by  Independent
certified  public  accountants,  and to discuss  the Issuing  Entity's  affairs,
finances  and  accounts  with the  Issuing  Entity's  officers,  employees,  and
Independent  certified public  accountants,  all at such reasonable times and as
often as may be  reasonably  requested.  The  Indenture  Trustee shall and shall
cause its  representatives  to hold in confidence all such information except to
the extent  disclosure may be required by law (and all  reasonable  applications
for  confidential  treatment are  unavailing)  and except to the extent that the
Indenture  Trustee may reasonably  determine that such  disclosure is consistent
with its obligations hereunder.

         Section 10.19  AUTHORITY OF THE  ADMINISTRATOR.  Each of the parties to
this Indenture  acknowledges  that the Issuing Entity and the Owner Trustee have
each appointed the  Administrator  to act as its agent to perform the duties and
obligations of the Issuing Entity hereunder.  Unless otherwise instructed by the
Issuing Entity or the Owner Trustee,  copies of all notices,  requests,  demands
and other  documents to be delivered to the Issuing  Entity or the Owner Trustee
pursuant to the terms hereof shall be  delivered  to the  Administrator.  Unless
otherwise  instructed by the Issuing Entity or the Owner  Trustee,  all notices,
requests,  demands and other  documents  to be executed  or  delivered,  and any
action to be taken,  by the Issuing Entity or the Owner Trustee  pursuant to the
terms  hereof  may be  executed,  delivered  and/or  taken by the  Administrator
pursuant to the Administration Agreement.

<PAGE>

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

                               AMERICAN HOME MORTGAGE ASSETS LLC
                               TRUST SERIES 200_ -  _____,
                               as Issuing Entity

                               By: ______________________________________
                               not in its individual capacity but solely as
                               Owner Trustee

                               By: ______________________________________
                               Name:
                               Title:

                               as Indenture Trustee, as Certificate Paying Agent
                               and as Note Registrar

                               By: ______________________________________
                               Name:
                               Title:

--------------------------------------
hereby accepts the appointment as
Certificate Paying Agent pursuant
to Section 3.03 hereof and as Certificate
Registrar pursuant to Section 4.02 hereof.

By: ______________________________________
Name:
Title:

<PAGE>

STATE OF [NEW YORK]                 )
                        ) ss.:
COUNTY OF [NEW YORK]                )

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

                                                                   Notary Public

[NOTARIAL SEAL]

<PAGE>

STATE OF [NEW YORK]                 )
                                    ) ss.:
COUNTY OF [NEW YORK]                )

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

                                                                   Notary Public

[NOTARIAL SEAL]

<PAGE>

STATE OF [NEW YORK]                 )
                                    ) ss.:
COUNTY OF [NEW YORK]                )

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

                                                                   Notary Public

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                              FORM OF CLASS A NOTES

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

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
RIGHT OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST AND THE NOTE INSURANCE
POLICY AS PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT
OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS NOTE.

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

<PAGE>

              AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_
                              MORTGAGE-BACKED NOTES
                                     CLASS A

AGGREGATE NOTE PRINCIPAL                               NOTE INTEREST
BALANCE:                                               RATE: [Adjustable Rate]
$[        ]
INITIAL NOTE PRINCIPAL                                 NOTE NO. [ ]
BALANCE OF THIS NOTE: $[       ]
PERCENTAGE INTEREST: [     ]%                          CUSIP NO. [      ]

         American Home Mortgage Assets LLC Trust Series 200_-_ (the "Issuing
Entity"), a Delaware statutory trust, for value received, hereby promises to pay
to Cede & Co. or registered assigns, the principal sum of ($_________________)
in monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in ______ 200_ and ending on or before the Payment Date occurring in
________ 20__ (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuing Entity's
Mortgage-Backed Notes, Series 200_-_ (the "Notes"), issued under an Indenture
dated as of ____________, 200_ (the "Indenture"), between the Issuing Entity and
[NAME OF TRUSTEE], as indenture trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuing Entity, the
Indenture Trustee, and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         [NAME OF NOTE INSURER] (the "Note Insurer"), in consideration of the
payment of the premium and subject to the terms of the note insurance policy
(the "Note Insurance Policy") issued thereby, has unconditionally and
irrevocably guaranteed the payment of the Insured Amount with respect to the
Notes, with respect to each Payment Date. Such Note Insurance Policy will not
cover any Prepayment Interest Shortfalls, Relief Act Shortfalls or Basis Risk
Shortfall Carry- Forward Amount.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates.

         The principal of, and interest on, this Note is due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuing Entity with respect to this Note
shall be equal to this Notes's pro rata share of the aggregate payments on all
Class A Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture. [In addition, any payments received by
the Indenture Trustee in respect of the Seller Guarantee shall be paid to the
Holders of this Note pursuant to Section 3.32 of the Indenture.]

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Notes are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans as of the end of the prior Due Period is less than or equal to __% of the
aggregate Stated Principal Balance of the Mortgage Loans as of Cut-off Date and
(ii) the Payment Date in ______ 20__.

         The Issuing Entity shall not be liable upon the indebtedness evidenced
by the Notes except to the extent of amounts available from the Trust Estate
which constitutes security for the payment of the Notes. The assets included in
the Trust Estate will be the sole source of payments on the Class A Notes, and
each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuing Entity, the Owner Trustee, the Indenture Trustee, the Seller, the
Depositor, the Servicer or any of their respective affiliates, or to the assets
of any of the foregoing entities, except the assets of the Issuing Entity
pledged to secure the Class A Notes pursuant to the Indenture and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All scheduled reductions in the principal amount of a
Note (or one or more predecessor Notes) effected by payments of principal made
on any Payment Date shall be binding upon all Holders of this Note and of any
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuing Entity maintained by it for such purpose pursuant to
Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of the Notes,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code as a result of the Issuing Entity, the Seller, the Depositor,
the Underwriter, the Owner Trustee, the Indenture Trustee, the Servicer, any
Subservicer, any other servicer, any administrator, any provider of credit
support, any owner of the Certificates, or any of their Affiliates being a
"Party in Interest" (within the meaning of ERISA) or Disqualified Person (within
the meaning of the Code) with respect to such Holder or Beneficial Owner that is
a Plan and (B) the Notes are rated investment grade or better and such person
believes that the Notes are properly treated as indebtedness without substantial
equity features for purposes of the DOL Regulations, and agrees to so treat the
Notes. Alternatively, regardless of the rating of the Notes, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuing Entity, the
Seller, the Depositor, any Underwriter, the Owner Trustee, the Indenture
Trustee, the Servicer or any successor servicer which opines that the
acquisition, holding and transfer of such Note or interest therein is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuing Entity, the Seller, the Depositor, any Underwriter, the
Owner Trustee, the Indenture Trustee, the Servicer or any successor servicer to
any obligation in addition to those undertaken in the Indenture.

         Pursuant to the Indenture, unless a Note Insurer Default (as defined in
the Indenture) exists (i) the Note Insurer shall be deemed to be the holder of
the Class A Notes for certain purposes specified in the Indenture (other than
with respect to payment on the Class A Notes), and will be entitled to exercise
all rights of the Noteholders thereunder, including the rights of Noteholders
relating to the occurrence of, and the remedies with respect to, an Event of
Default, without the consent of such Noteholders, and (ii) the Trustee may take
actions which would otherwise be at its option or within its discretion,
including actions relating to the occurrence of, and the remedies with respect
to, an Event of Default, only at the direction, or with the consent, of the Note
Insurer.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuing Entity. Upon surrender for registration of transfer of, or
presentation of a written instrument of transfer for, this Note at the office or
agency designated by the Issuing Entity pursuant to the Indenture, accompanied
by proper instruments of assignment in form satisfactory to the Indenture
Trustee, one or more new Notes of any authorized denominations and of a like
aggregate initial Note Principal Balance, will be issued to the designated
transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity or
the Indenture Trustee may treat the Person in whose name this Note is registered
as the owner of such Note (i) on the applicable Record Date for the purpose of
making payments and interest of such Note, and (ii) on any other date for all
other purposes whatsoever, as the owner hereof, whether or not this Note be
overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuing Entity and the rights of the Holders of the Notes under the Indenture at
any time by the Issuing Entity with the consent of the Note Insurer and the
Holders of a majority of all Notes at the time outstanding. The Indenture also
contains provisions permitting (i) the Note Insurer or (ii) if the Note Insurer
defaults, the Holders of Notes representing specified percentages of the
aggregate Note Principal Balance of the Notes on behalf of the Holders of all
the Notes, to waive any past Default under the Indenture and its consequences.
Any such waiver by the Holder, at the time of the giving thereof, of this Note
(or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuing Entity and the Indenture Trustee to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of the Holders of the Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate initial Note Principal Balance of Notes of
different authorized denominations, as requested by the Holder surrendering
same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be
duly executed by [NAME OF OWNER TRUSTEE], not in its individual capacity but
solely as Owner Trustee.
Dated: _______ __, 200_

                           AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_

                           BY: [NAME OF OWNER TRUSTEE], not in its individual
                           capacity but solely in its capacity as Owner Trustee

                           By: _____________________________________
                                       Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes referred to in the within-mentioned Indenture.

[NAME OF INDENTURE TRUSTEE], as Indenture Trustee

By:______________________________________
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

      TEN COM                --      as tenants in common
      TEN ENT                --      as tenants by the entireties
      JT TEN                 --      as joint tenants with right of survivorship
                                     and not as tenants in common
      UNIF GIFT MIN ACT      --      __________ Custodian
                                     ____________________________________
                                          (Cust)               (Minor)

                                     under Uniform Gifts to Minor Act

                                     ---------------------------------
                                                            (State)

         Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

         PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

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

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

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

--------------------------------------------------------------------------------
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints __________ attorney to transfer said Note on the books kept for
registration thereof, with full power of substitution in the premises.

Dated: ___________________________  _________________________________________

Signature Guaranteed by ____________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-2

                            FORM OF CLASS M-[_] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A NOTES [AND CLASS
M-[_] NOTES] AS DESCRIBED IN THE INDENTURE.

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

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
RIGHT OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE
INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT OTHERWISE PERSONALLY
LIABLE FOR PAYMENTS ON THIS NOTE.

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

<PAGE>

              AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_
                              MORTGAGE-BACKED NOTES
                                   CLASS M-[_]

AGGREGATE NOTE PRINCIPAL                               NOTE INTEREST
BALANCE:                                               RATE: [Adjustable Rate]
$[        ]
INITIAL NOTE PRINCIPAL                                 NOTE NO. [ ]
BALANCE OF THIS NOTE: $[       ]
PERCENTAGE INTEREST: [     ]%                          CUSIP NO. [        ]

         American Home Mortgage Assets LLC Trust Series 200_-_ (the "Issuing
Entity"), a Delaware statutory trust, for value received, hereby promises to pay
to Cede & Co. or registered assigns, the principal sum of
______________________________ ($___________) in monthly installments on the
twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a "Payment Date"), commencing in _______ 200_ and
ending on or before the Payment Date occurring in _______ 20__ (the "Final
Scheduled Payment Date") and to pay interest on the Note Principal Balance of
this Note (this "Note") outstanding from time to time as provided below.

         This Note is one of a duly authorized issue of the Issuing Entity's
Mortgage-Backed Notes, Series 200_-_ (the "Notes"), issued under an Indenture
dated as of _______ __, 200_ (the "Indenture"), between the Issuing Entity and
[NAME OF INDENTURE TRUSTEE], as indenture trustee (the "Indenture Trustee",
which term includes any successor Indenture Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights thereunder of the Issuing Entity, the
Indenture Trustee, and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuing Entity with respect to this Note
shall be equal to this Notes's pro rata share of the aggregate payments on all
Class M-[_] Notes as described above, and shall be applied as between interest
and principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Notes are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans is less than or equal to 25% of aggregate Stated Principal Balance of the
Mortgage Loans as of Cut-off Date and (ii) the Payment Date in ______ 20__.

         The Issuing Entity shall not be liable upon the indebtedness evidenced
by the Notes except to the extent of amounts available from the Trust Estate
which constitutes security for the payment of the Notes. The assets included in
the Trust Estate will be the sole source of payments on the Class M-[_] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Seller, the
Depositor, the Servicer or any of their respective affiliates, or to the assets
of any of the foregoing entities, except the assets of the Issuing Entity
pledged to secure the Class M-[_] Notes pursuant to the Indenture and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note (or
one or more predecessor Notes) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Note and of any Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuing Entity maintained by it for such purpose pursuant to
Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of the Notes,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code as a result of the Issuing Entity, the Seller, the Depositor,
the Underwriters, the Owner Trustee, the Indenture Trustee, the Servicer, any
Subservicer, any other servicer, any administrator, any provider of credit
support, any owner of the Certificates, or any of their Affiliates being a
"Party in Interest" (within the meaning of ERISA) or Disqualified Person (within
the meaning of the Code) with respect to such Holder or Beneficial Owner that is
a Plan and (B) the Notes are rated investment grade or better and such person
believes that the Notes are properly treated as indebtedness without substantial
equity features for purposes of the DOL Regulations, and agrees to so treat the
Notes. Alternatively, regardless of the rating of the Notes, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuing Entity, the
Seller, the Depositor any Underwriter, the Owner Trustee, the Indenture Trustee,
the Servicer or any successor servicer which opines that the acquisition,
holding and transfer of such Note or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuing Entity, the Seller, the Depositor, any Underwriter, the Owner Trustee,
the Indenture Trustee, the Servicer or any successor servicer to any obligation
in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuing Entity. Upon surrender for registration of transfer of, or
presentation of a written instrument of transfer for, this Note at the office or
agency designated by the Issuing Entity pursuant to the Indenture, accompanied
by proper instruments of assignment in form satisfactory to the Indenture
Trustee, one or more new Notes of any authorized denominations and of a like
aggregate initial Note Principal Balance, will be issued to the designated
transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity or
the Indenture Trustee may treat the Person in whose name this Note is registered
as the owner of such Note (i) on the applicable Record Date for the purpose of
making payments and interest of such Note, and (ii) on any other date for all
other purposes whatsoever, as the owner hereof, whether or not this Note be
overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuing Entity and the rights of the Holders of the Notes under the Indenture at
any time by the Issuing Entity with the consent of the Note Insurer and the
Holders of a majority of all Notes at the time outstanding. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the aggregate Note Principal Balance of the Notes on behalf of
the Holders of all the Notes, to waive any past Default under the Indenture and
its consequences. Any such waiver by the Holder, at the time of the giving
thereof, of this Note (or any one or more predecessor Notes) shall bind the
Holder of every Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon such Note. The Indenture also permits the Issuing Entity and
the Indenture Trustee to amend or waive certain terms and conditions set forth
in the Indenture without the consent of the Holders of the Notes issued
thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate initial Note Principal Balance of Notes of
different authorized denominations, as requested by the Holder surrendering
same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be
duly executed by [NAME OF OWNER TRUSTEE], not in its individual capacity but
solely as Owner Trustee.
Dated: _______ __, 200_

                           AMERICAN HOME MORTGAGE ASSETS LLC TRUST SERIES 200_-_

                           BY: [NAME OF OWNER TRUSTEE], not in its individual
                           capacity but solely in its capacity as Owner Trustee

                           By: _____________________________________
                                       Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This  is  one of the  Class  M-[_]  Notes  referred  to in the  within-mentioned
Indenture.

[NAME OF INDENTURE TRUSTEE], as Indenture Trustee

By:______________________________________
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

      TEN COM                --      as tenants in common
      TEN ENT                --      as tenants by the entireties
      JT TEN                 --      as joint tenants with right of survivorship
                                     and not as tenants in common
      UNIF GIFT MIN ACT      --      __________ Custodian
                                     ____________________________________
                                          (Cust)               (Minor)

                                     under Uniform Gifts to Minor Act

                                     ---------------------------------
                                                            (State)

         Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto

         PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

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

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

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

--------------------------------------------------------------------------------
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints __________ attorney to transfer said Note on the books kept for
registration thereof, with full power of substitution in the premises.

Dated: ___________________________  _________________________________________

Signature Guaranteed by ____________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

ADJUSTABLE RATE MORTGAGE LOAN: A Mortgage Loan with a Mortgage Rate that is
subject to periodic adjustment calculated on the basis of the Index, plus an
applicable Gross Margin. Each Adjustable Rate Mortgage Loan is secured by a
first lien on the related Mortgaged Property.

ADJUSTMENT DATE: As to each Adjustable Rate Mortgage Loan, each date set forth
in the related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

ADMINISTRATIVE FEE: The amount of the fee payable to the Owner Trustee together
with the amount of the premium payable to the Note Insurer, which will accrue at
______% per annum based on the Note Principal Balance of the Notes.

ADVANCE: As to any Mortgage Loan, any advance made by the Servicer,  pursuant to
Section 4.04 of the Servicing Agreement.

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

APPRAISED VALUE: The appraised value of a Mortgaged Property based upon the
lesser of (i) the appraisal made at the time of the origination of the related
Mortgage Loan, or (ii) the sales price of such Mortgaged Property at such time
of origination. With respect to a Mortgage Loan the proceeds of which were used
to refinance an existing mortgage loan, the appraised value of the Mortgaged
Property based upon the appraisal (as reviewed and approved by the Seller)
obtained at the time of refinancing.

ASSIGNMENT OF MORTGAGE: An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect of
record the sale of the Mortgage, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering Mortgages secured by Mortgaged Properties located in the same county,
if permitted by law.

AUTHORIZED NEWSPAPER: A newspaper of general circulation in the Borough of
Manhattan, The City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays
or holidays.

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

AVAILABLE FUNDS: As to any Payment Date, an amount equal to the amount on
deposit in the Payment Account on such Payment Date and available for
distribution to the Noteholders (minus, if the Notes have been declared due and
payable following an Event of Default on such Payment Date, any amounts owed to
the Indenture Trustee by the Issuing Entity pursuant to Section 6.07 of the
Indenture).

AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT: With respect to the Notes and any
Payment Date, an amount equal to the sum of (x) the amount, if any, by which (a)
the lesser of (1) the amount payable if clause (i) of the definition of Note
Interest Rate is used to calculate interest and (2) the amount payable if the
Maximum Note Interest Rate is used to calculate interest exceeds (b) the amount
payable if clause (ii) of the definition of Note Interest Rate is used to
calculate interest and (y) the interest accrued during the prior Interest Period
on the amount of any Available Funds Cap Carry-Forward Amount immediately prior
to such Payment Date, calculated on the basis of a 360-day year and the actual
number of days elapsed and using the Note Interest Rate applicable to such
Payment Date minus (z) the aggregate of all amounts distributed to the
Noteholders on all prior Payment Dates pursuant to Section 3.05(iv) of the
Indenture.

AVAILABLE FUNDS INTEREST RATE: As to any Payment Date, a per annum rate equal to
the lesser of (x) the fraction, expressed as a percentage, the numerator of
which is (i) an amount equal to (A) 1/12 of the aggregate Principal Balance of
the then outstanding Mortgage Loans times the weighted average of the Expense
Adjusted Mortgage Rates on the then outstanding Mortgage Loans minus (B) the
Administrative Fee for such Payment Date, and the denominator of which is (ii)
an amount equal to (A) the then outstanding aggregate Note Principal Balance of
the Notes multiplied by (B) the actual number of days elapsed in the related
Interest Period divided by 360 and (y) the Maximum Note Interest Rate.

BANKRUPTCY CODE:  The Bankruptcy Code of 1978, as amended.

BASIC DOCUMENTS: The Trust Agreement, the Certificate of Trust, the Indenture,
the Mortgage Loan Purchase Agreement, the Insurance Agreement, the Servicing
Agreement, and the other documents and certificates delivered in connection with
any of the above.

BENEFICIAL OWNER: With respect to any Note, the Person who is the beneficial
owner of such Note as reflected on the books of the Depository or on the books
of a Person maintaining an account with such Depository (directly as a
Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).

BOOK-ENTRY NOTES: Beneficial interests in the Notes, ownership and transfers of
which shall be made through book entries by the Depository as described in
Section 4.06 of the Indenture.

BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking institutions in the City of New York or Delaware or in the city in
which the corporate trust offices of the Indenture Trustee or the Note Insurer
are located, are required or authorized by law to be closed.

CASH LIQUIDATION: As to any defaulted Mortgage Loan other than a Mortgage Loan
as to which an REO Acquisition occurred, a determination by the Servicer that it
has received all Insurance Proceeds, Liquidation Proceeds and other payments or
cash recoveries which the Servicer reasonably and in good faith expects to be
finally recoverable with respect to such Mortgage Loan.

CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts created and maintained
pursuant to Section 3.10(d) of the Trust Agreement. The Certificate Distribution
Account shall be an Eligible Account.

CERTIFICATE  PAYING  AGENT:  The meaning  specified in Section 3.10 of the Trust
Agreement.

CERTIFICATE  PERCENTAGE  INTEREST:   With  respect  to  each  Certificate,   the
Certificate Percentage Interest on the face thereof.

CERTIFICATE  REGISTER:  The register maintained by the Certificate  Registrar in
which  the  Certificate   Registrar  shall  provide  for  the   registration  of
Certificates and of transfers and exchanges of Certificates.

CERTIFICATE  REGISTRAR:  Initially,  the Indenture  Trustee,  in its capacity as
Certificate  Registrar,  or any  successor  to the  Indenture  Trustee  in  such
capacity.

CERTIFICATE OF TRUST:  The  Certificate of Trust filed for the Trust pursuant to
Section 3810(a) of the Statutory Trust Statute.

CERTIFICATES: The American Home Mortgage Assets LLC, Mortgage-Backed
Certificates, Series 200_-_, evidencing the beneficial ownership interest in the
Issuing Entity and executed by the Owner Trustee in substantially the form set
forth in Exhibit A to the Trust Agreement.

CERTIFICATEHOLDER: The Person in whose name a Certificate is registered in the
Certificate Register. Owners of Certificates that have been pledged in good
faith may be regarded as Holders if the pledgee establishes to the satisfaction
of the Indenture Trustee or the Owner Trustee, as the case may be, the pledgee's
right so to act with respect to such Certificates and that the pledgee is not
the Issuing Entity, any other obligor upon the Certificates or any Affiliate of
any of the foregoing Persons.

CLOSING DATE:  ______ __, 200_.

CODE:  The  Internal  Revenue  Code of  1986,  as  amended,  and the  rules  and
regulations promulgated thereunder.

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

COLLECTION  ACCOUNT:  The account or accounts created and maintained pursuant to
Section 3.06(d) of the Servicing Agreement. The

Collection Account shall be an Eligible Account.

COMBINED LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan and any date,
the percentage equivalent of a fraction, the numerator of which is the Cut-Off
Date Principal Balance of such Mortgage Loan and the denominator of which is the
outstanding principal balance as of the date of the origination of such Mortgage
Loan of any mortgage loan or mortgage loans that are secured by liens on the
Mortgaged Property that are senior or subordinate to the Mortgage and the
denominator of which is the Appraised Value of the related Mortgaged Property.

COMPENSATING INTEREST: With respect to any Determination Date, an amount equal
to the lesser of (i) the aggregate amount of Prepayment Interest Shortfall for
the related Prepayment Period and (ii) the Servicing Fee for such Determination
Date.

CONVERTED MORTGAGE LOAN: Any Convertible Mortgage Loan with respect to which the
interest rate borne by such Mortgage Loan has been converted from an adjustable
interest rate to a fixed interest rate.

CONVERTIBLE MORTGAGE LOAN: Any Adjustable Rate Mortgage Loan which by its terms
grants to the related Mortgagor the option to convert the interest rate borne by
such Mortgage Loan from an adjustable interest rate to a fixed interest rate.

CONVERTING MORTGAGE LOAN: Any Convertible Mortgage Loan with respect to which
the related Mortgagor has given notice of his intent to convert from an
adjustable interest rate to a fixed interest rate and prior to the conversion of
such Mortgage Loan.

CORPORATE TRUST OFFICE: With respect to the Indenture Trustee, Certificate
Registrar, Certificate Paying Agent and Paying Agent, the principal corporate
trust office of the Indenture Trustee and Note Registrar at which at any
particular time its corporate trust business shall be administered, which office
at the date of the execution of this instrument is located at ____________,
__________, ______, __________ _____, Attention: ________ ___ ______, except
that for purposes of Section 4.02 of the Indenture and Section 3.09 of the Trust
Agreement, such term shall include the Indenture Trustee's office or agency at
_______________, ________, ________ _____, Attention: ___________ _________.
With respect to the Owner Trustee, the principal corporate trust office of the
Owner Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Trust
Agreement is located at ________________________, ______ ____________,
_________________, __________, ________ _____, Attention:
______________________.

CUT-OFF DATE: With respect to the Mortgage Loans, ______ 1, 200_.

CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage Loan, the unpaid
principal balance thereof as of the opening of business on the last day of the
related Due Period immediately prior to the Cut-Off Date.

DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
constituting a Deficient Valuation or any reduction that results in a permanent
forgiveness of principal.

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

DEFICIENCY AMOUNT: The meaning provided in the Note Insurance Policy.

DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by a court
of competent jurisdiction of the Mortgaged Property in an amount less than the
then outstanding indebtedness under the Mortgage Loan, or any reduction in the
amount of principal to be paid in connection with any scheduled Monthly Payment
that constitutes a permanent forgiveness of principal, which valuation or
reduction results from a proceeding under the Bankruptcy Code.

DEFINITIVE NOTES: The meaning specified in Section 4.06 of the Indenture.

DELETED  MORTGAGE  LOAN:  A Mortgage  Loan  replaced or to be  replaced  with an
Eligible Substitute Mortgage Loan.

DEPOSITOR:  American  Home  Mortgage  Assets LLC, a Delaware  limited  liability
company, or its successor in interest.

DEPOSITORY OR DEPOSITORY AGENCY: The Depository Trust Company or a successor
appointed by the Indenture Trustee with the approval of the Depositor. Any
successor to the Depository shall be an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act and the regulations of the
Securities and Exchange Commission thereunder.

DEPOSITORY PARTICIPANT: A Person for whom, from time to time, the Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

DETERMINATION DATE: With respect to any Payment Date, the 15th of the related
month, or if the 15th day of such month is not a Business Day, the immediately
preceding Business Day.

DUE DATE: The first day of the month of the related Payment Date.

DUE PERIOD: With respect to any Mortgage Loan and Due Date, the period
commencing on the second day of the month preceding the month of such Payment
Date (or, with respect to the first Due Period, the day following the Cut-Off
Date) and ending on the related Due Date.

ELIGIBLE ACCOUNT: An account that is any of the following: (i) maintained with a
depository institution the short term deposits of which have been rated by each
Rating Agency in its highest rating available, or (ii) an account or accounts in
a depository institution in which such accounts are fully insured to the limits
established by the FDIC, provided that any deposits not so insured shall, to the
extent acceptable to the Note Insurer and each Rating Agency, as evidenced in
writing, be maintained such that (as evidenced by an Opinion of Counsel
delivered to the Indenture Trustee, the Note Insurer and each Rating Agency) the
Indenture Trustee have a claim with respect to the funds in such account or a
perfected first security interest against any collateral (which shall be limited
to Eligible Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, or (iii) in the case of the Collection Account, either
(A) a trust account or accounts maintained at the Corporate Trust Department of
the Indenture Trustee or (B) an account or accounts maintained at the Corporate
Trust Department of the Indenture Trustee, as long as its short term debt
obligations are rated P-1 by Moody's and A-1 by Standard & Poor's or better and
its long term debt obligations are rated A2 by Moody's and A by Standard &
Poor's or better, or (iv) in the case of the Collection Account and the Payment
Account, a trust account or accounts maintained in the corporate trust division
of the Indenture Trustee, or (v) an account or accounts of a depository
institution acceptable to each Rating Agency as evidenced in writing by each
Rating Agency that use of any such account as the Collection Account or the
Payment Account will not reduce the rating assigned to any of the Securities by
such Rating Agency below investment grade without taking into account the Note
Insurance Policy and acceptable to the Note Insurer as evidenced in writing.

ELIGIBLE INVESTMENTS:  One or more of the following:

                  (i) direct  obligations of, and obligations  fully  guaranteed
         by,  the  United   States  of  America,   the  Federal  Home   Mortgage
         Corporation,  the Federal National  Mortgage  Association,  the Federal
         Home Loan Banks or any agency or  instrumentality  of the United States
         of America  the  obligations  of which are backed by the full faith and
         credit of the United States of America;

                  (ii) (A) demand and time deposits in,  certificates of deposit
         of,  banker's  acceptances  issued  by or  federal  funds  sold  by any
         depository  institution  or  trust  company  (including  the  Indenture
         Trustee or its agent acting in their respective commercial  capacities)
         incorporated  under the laws of the  United  States of  America  or any
         State thereof and subject to  supervision  and  examination  by federal
         and/or state authorities,  so long as at the time of such investment or
         contractual  commitment providing for such investment,  such depository
         institution  or trust company has a short term unsecured debt rating in
         the highest  available  rating  category of each of the Rating Agencies
         and provided that each such  investment has an original  maturity of no
         more than 365 days, and (B) any other demand or time deposit or deposit
         which is fully insured by the Federal Deposit Insurance Corporation;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security  described in clause (i) above and entered
         into  with a  depository  institution  or trust  company  (acting  as a
         principal)  rated "A" or  higher  by S&P and A2 or  higher by  Moody's;
         provided,   however,  that  collateral  transferred  pursuant  to  such
         repurchase obligation must (A) be valued weekly at current market price
         plus accrued  interest,  (B) pursuant to such valuation,  equal, at all
         times,  105%  of the  cash  transferred  by the  Indenture  Trustee  in
         exchange for such  collateral  and (C) be  delivered  to the  Indenture
         Trustee or, if the Indenture  Trustee is supplying the  collateral,  an
         agent for the  Indenture  Trustee,  in such a manner  as to  accomplish
         perfection  of a security  interest in the  collateral by possession of
         certificated securities.

                  (iv) securities  bearing interest or sold at a discount issued
         by any corporation  incorporated under the laws of the United States of
         America  or any State  thereof  which has a long  term  unsecured  debt
         rating in the highest  available  rating category of each of the Rating
         Agencies at the time of such investment;

                  (v) commercial paper having an original  maturity of less than
         365 days and issued by an  institution  having a short  term  unsecured
         debt rating in the  highest  available  rating  category of each of the
         Rating Agencies at the time of such investment;

                  (vi) a guaranteed  investment contract approved by each of the
         Rating Agencies and the Note Insurer and issued by an insurance company
         or other  corporation  having a long term  unsecured debt rating in the
         highest available rating category of each of the Rating Agencies at the
         time of such investment;

                  (vii)  money  market  funds  having  ratings  in  the  highest
         available  long-term  rating category of each of the Rating Agencies at
         the time of such investment;  any such money market funds which provide
         for  demand  withdrawals  being  conclusively  deemed  to  satisfy  any
         maturity   requirement  for  Eligible  Investments  set  forth  in  the
         Indenture; and

                  (viii)  any  investment  approved  in  writing  by each of the
         Rating Agencies and the Note Insurer.

The Indenture Trustee may purchase from or sell to itself or an affiliate, as
principal or agent, the Eligible Investments listed above.

Provided, however, that each such instrument shall be acquired in an arm's
length transaction and no such instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations; provided further, however, that each such instrument acquired shall
not be acquired at a price in excess of par.

ELIGIBLE SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the outstanding principal balance of the Deleted Mortgage Loan (the amount of
any shortfall to be deposited by the Seller in the Collection Account in the
month of substitution); (ii) comply with each representation and warranty set
forth in clauses (ii) through (lxxvii) of Section 3.1(b) of the Mortgage Loan
Purchase Agreement other than clauses (ii), (iii), (v)-(xi), (xiii)-(xiv), (l),
(lxvi), (lxviii), (lxxi), (lxxiii); (iii) have a Mortgage Rate and Gross Margin
no lower than and not more than 1% per annum higher than the Mortgage Rate and
Gross Margin, respectively, of the Deleted Mortgage Loan as of the date of
substitution; (iv) have a Combined Loan-to-Value Ratio at the time of
substitution no higher than that of the Deleted Mortgage Loan at the time of
substitution; (v) have a remaining term to stated maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage Loan and (vi) not
be 30 days or more delinquent.

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

EVENT OF DEFAULT: With respect to the Indenture, any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

                  (ix) a default  in (a) the  payment  of the  Interest  Payment
         Amount or the Principal  Payment  Amount with respect to a Payment Date
         on such Payment Date or (b) the  Subordination  Increase  Amount or the
         Available  Funds Cap  Carry-Forward  Amount,  but only, with respect to
         clause (b), to the extent  funds are  available to make such payment as
         provided in the Indenture; or

                  (x) the failure by the Issuing  Entity on the Final  Scheduled
         Payment Date to reduce the Note Principal Balance to zero; or

                  (xi) there occurs a default in the  observance or  performance
         of  any  covenant  or  agreement  of the  Issuing  Entity  made  in the
         Indenture, or any representation or warranty of the Issuing Entity made
         in the  Indenture  or in any  certificate  or other  writing  delivered
         pursuant  hereto  or  in  connection  herewith  proving  to  have  been
         incorrect  in any  material  respect as of the time when the same shall
         have been made, and such default shall continue or not be cured, or the
         circumstance  or condition in respect of which such  representation  or
         warranty  was  incorrect  shall not have been  eliminated  or otherwise
         cured,  for a period of 30 days after there  shall have been given,  by
         registered or certified  mail,  to the Issuing  Entity by the Indenture
         Trustee or to the Issuing Entity and the Indenture  Trustee by the Note
         Insurer,  or if a Note Insurer  Default  exists the Holders of at least
         25% of the Outstanding Amount of the Notes, a written notice specifying
         such default or incorrect  representation  or warranty and requiring it
         to be  remedied  and  stating  that such  notice is a notice of default
         hereunder; or

                  (xii) there  occurs the filing of a decree or order for relief
         by a court  having  jurisdiction  in the  premises  in  respect  of the
         Issuing  Entity  or any  substantial  part of the  Trust  Estate  in an
         involuntary  case under any  applicable  federal  or state  bankruptcy,
         insolvency  or  other  similar  law  now or  hereafter  in  effect,  or
         appointing  a  receiver,  liquidator,   assignee,  custodian,  trustee,
         sequestrator  or  similar  official  of the  Issuing  Entity or for any
         substantial  part of the Trust  Estate,  or ordering the  winding-up or
         liquidation of the Issuing Entity's  affairs,  and such decree or order
         shall  remain  unstayed  and in effect  for a period of 60  consecutive
         days; or

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

EVENT OF SERVICER TERMINATION: With respect to the Servicing Agreement, a
Servicing Default as defined in Section 6.01 of the Servicing Agreement.

EXCESS SUBORDINATION AMOUNT: With respect to any Payment Date, the excess, if
any, of (a) the Subordination Amount that would apply on such Payment Date after
taking into account all distributions to be made on such Payment Date (exclusive
of any reductions thereto attributable to Subordination Reduction Amounts on
such Payment Date) over (b) the Required Subordination Amount for such Payment
Date.

EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

EXPENSE ADJUSTED MORTGAGE RATE: For any Mortgage Loan, the rate equal to the
then applicable Mortgage Rate thereon minus the sum of (i) the Minimum Spread
and (ii) the Servicing Fee Rate and (iii) the Indenture Trustee Fee Rate.

EXPENSES: The meaning specified in Section 7.02 of the Trust Agreement.

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

FHLMC: The Federal Home Loan Mortgage Corporation, or any successor thereto.

FINAL SCHEDULED PAYMENT DATE: The Payment Date occurring in _________ 20__.

FIXED RATE MORTGAGE LOAN: Any Mortgage Loan with a fixed rate of interest.

FNMA: The Federal National Mortgage Association, or any successor thereto.

FORECLOSURE PROFIT: With respect to a Liquidated Mortgage Loan, the amount, if
any, by which (i) the aggregate of its Net Liquidation Proceeds exceeds (ii) the
related Principal Balance (plus accrued and unpaid interest thereon at the
applicable Mortgage Rate from the date interest was last paid through the date
of receipt of the final Liquidation Proceeds) of such Liquidated Mortgage Loan
immediately prior to the final recovery of its Liquidation Proceeds.

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

GROSS MARGIN: With respect to any Adjustable Rate Mortgage Loan, the percentage
set forth as the "Gross Margin" for such Mortgage Loan on the Mortgage Loan
Schedule, as adjusted from time to time in accordance with the terms of the
Servicing Agreement.

INDEMNIFIED PARTY: The meaning specified in Section 7.02 of the Trust Agreement.

INDENTURE:  The  indenture  dated as of ______ __,  200_,  between  the  Issuing
Entity, as debtor, and the Indenture Trustee, as Indenture Trustee.

INDENTURE TRUSTEE: _________________________________________, a national banking
association,  and its successors and assigns or any successor  indenture trustee
appointed pursuant to the terms of the Indenture.

INDENTURE TRUSTEE FEE: With respect to each Mortgage Loan and any Payment Date
the product of (i) the Indenture Trustee Fee Rate divided by 12 and (ii) the
Principal Balance of such Mortgage Loans as of such date.

INDENTURE TRUSTEE FEE RATE:  _____% per annum.

INDEPENDENT: When used with respect to any specified Person, the Person (i) is
in fact independent of the Issuing Entity, any other obligor on the Notes, the
Seller, the Issuing Entity, the Depositor and any Affiliate of any of the
foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuing Entity, any such other
obligor, the Seller, the Issuing Entity, the Depositor or any Affiliate of any
of the foregoing Persons and (iii) is not connected with the Issuing Entity, any
such other obligor, the Seller, the Issuing Entity, the Depositor or any
Affiliate of any of the foregoing Persons as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 10.01 of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuing Entity Order and
approved by the Indenture Trustee in the exercise of reasonable care, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

INDEX: With respect to any Adjustable Rate Mortgage Loan, index for the
adjustment of the Mortgage Rate set forth as such on the related Mortgage Note.

INITIAL NOTE PRINCIPAL BALANCE: With respect to the Notes, $______________.

INITIAL SUBSERVICER:  _____________, a __________ corporation.

INSOLVENCY EVENT: With respect to a specified Person, (a) the filing of a decree
or order for relief by a court having jurisdiction in the premises in respect of
such Person or any substantial part of its property in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which the Indenture Trustee shall have notice)
of its inability to pay its debts generally, or the adoption by the Board of
Directors or managing member of such Person of a resolution which authorizes
action by such Person in furtherance of any of the foregoing.

INSURANCE AGREEMENT: The insurance and reimbursement agreement dated as of _____
__, 200_, among the Servicer, the Seller, the Depositor, the Issuing Entity,
Indenture Trustee and the Note Insurer, including any amendments and supplements
thereto.

INSURANCE PROCEEDS: Proceeds paid by any insurer (other than the Note Insurer)
pursuant to any insurance policy covering a Mortgage Loan which are required to
be remitted to the Servicer, or amounts required to be paid by the Servicer
pursuant to the Servicing Agreement, net of any component thereof (i) covering
any expenses incurred by or on behalf of the Servicer in connection with
obtaining such proceeds, (ii) that is applied to the restoration or repair of
the related Mortgaged Property, (iii) released to the Mortgagor in accordance
with the Servicer's normal servicing procedures or (iv) required to be paid to
any holder of a mortgage senior to such Mortgage Loan.

INSURED PAYMENT: Shall have the meaning set forth in the Note Insurance Policy.

INTEREST  DETERMINATION  DATE: With respect to any Interest  Period,  the second
London Business Day preceding the commencement of such Interest Period.

INTEREST PAYMENT AMOUNT: With respect to any Payment Date, an amount equal to
interest accrued during the related Interest Period on the Note Principal
Balance thereof at the then-applicable Note Interest Rate, minus any Prepayment
Interest Shortfalls and Relief Act Shortfalls to the extent not covered by the
Servicer by Compensating Interest for such Payment Date.

INTEREST PERIOD: With respect to any Payment Date other than the first Payment
Date, the period beginning on the preceding Payment Date and ending on the day
preceding such Payment Date, and in the case of the first Payment Date, the
period beginning on the Closing Date and ending on the day preceding the first
Payment Date.

INTEREST RATE ADJUSTMENT DATE: With respect to each Mortgage Loan, the date or
dates on which the Mortgage Rate is adjusted in accordance with the related
Mortgage Note.

ISSUING ENTITY: The American Home Mortgage Assets LLC Trust Series 200_-_, a
Delaware statutory trust, or its successor in interest.

ISSUER REQUEST: A written order or request signed in the name of the Issuing
Entity by any one of its Authorized Officers and approved in writing by the Note
Insurer, so long as no Note Insurer Default exists and delivered to the
Indenture Trustee.

LIBOR BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in the State of New York or Delaware, or in the
city of London, England are required or authorized by law to be closed.

LIEN: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; provided,
however, that any assignment pursuant to Section 6.02 of the Servicing Agreement
shall not be deemed to constitute a Lien.

LIFETIME RATE CAP: With respect to each Mortgage Loan with respect to which the
related Mortgage Note provides for a lifetime rate cap, the maximum Mortgage
Rate permitted over the life of such Mortgage Loan under the terms of such
Mortgage Note, as set forth on the Mortgage Loan Schedule and initially as set
forth on Exhibit A to the Servicing Agreement.

LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, any Mortgage Loan in
respect of which the Servicer has determined, in accordance with the servicing
procedures specified in the Servicing Agreement, as of the end of the related
Prepayment Period that substantially all Liquidation Proceeds which it
reasonably expects to recover with respect to the disposition of the related REO
Property have been recovered.

LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead) which are
incurred by or on behalf of the Servicer in connection with the liquidation of
any Mortgage Loan and not recovered under any insurance policy, such expenses
including, without limitation, legal fees and expenses, any unreimbursed amount
expended (including, without limitation, amounts advanced to correct defaults on
any mortgage loan which is senior to such Mortgage Loan and amounts advanced to
keep current or pay off a mortgage loan that is senior to such Mortgage Loan)
respecting the related Mortgage Loan and any related and unreimbursed
expenditures for real estate property taxes or for property restoration,
preservation or insurance against casualty loss or damage.

LIQUIDATION PROCEEDS: Proceeds (including Insurance Proceeds but not including
amounts drawn under the Note Insurance Policy) received in connection with the
liquidation of any Mortgage Loan or related REO Property, whether through
trustee's sale, foreclosure sale or otherwise.

LOAN YEAR: With respect to any Mortgage Loan, the one year period commencing on
the day succeeding the origination of such Mortgage Loan and ending on the
anniversary date of such Mortgage Loan, and each annual period thereafter.

LONDON BUSINESS DAY: Any day on which banks in the City of London, England are
open and conducting transactions in United States dollars.

LOST NOTE AFFIDAVIT: With respect to any Mortgage Loan as to which the original
Mortgage Note has been permanently lost or destroyed and has not been replaced,
an affidavit from the Seller certifying that the original Mortgage Note has been
lost, misplaced or destroyed (together with a copy of the related Mortgage
Note).

SERVICER: _______________________,  a __________ corporation, and its successors
and assigns.

MASTER SERVICING FEE: With respect to each Mortgage Loan and any Payment Date
the product of (i) the Master Servicing Fee Rate divided by 12 and (ii) the
Principal Balance of such Mortgage Loans as of such date.

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

MAXIMUM NOTE INTEREST RATE: With respect to any Payment Date, the per annum rate
equal to the fraction, expressed as a percentage, the numerator of which is (i)
an amount equal to (A) 1/12 of the aggregate Principal Balance of the then
outstanding Mortgage Loans times the weighted average of the Expense Adjusted
Maximum Mortgage Rates on the then outstanding Mortgage Loans minus (B) the
Administrative Fee for such Payment Date, and the denominator of which is (ii)
an amount equal to (A) the aggregate Note Principal Balance of the Notes
multiplied by (B) the actual number of days elapsed in the related Interest
Period divided by 360.

MAXIMUM  MORTGAGE RATE:  With respect to each Adjustable Rate Mortgage Loan, the
maximum Mortgage Rate.

MINIMUM  MORTGAGE RATE:  With respect to each Adjustable Rate Mortgage Loan, the
minimum Mortgage Rate.

MINIMUM SPREAD:  ____% per annum.

MONTHLY PAYMENT: With respect to any Mortgage Loan (including any REO Property)
and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization schedule at the time applicable thereto (after
adjustment, if any, for partial Prepayments and for Deficient Valuations
occurring prior to such Due Date but before any adjustment to such amortization
schedule by reason of any bankruptcy, other than a Deficient Valuation, or
similar proceeding or any moratorium or similar waiver or grace period).

MOODY'S: Moody's Investors Service, Inc. or its successor in interest.

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

MORTGAGE FILE: The file containing the Related Documents pertaining to a
particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Purchase Agreement or the
Servicing Agreement.

MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement, dated as
of the Cut-Off Date, between the Seller, as seller, and the Purchaser, as
purchaser, with respect to the Mortgage Loans, dated as of ______ __, 200_.

MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule of Mortgage Loans
held by the Issuing Entity on such date. The initial schedule of Mortgage Loans
as of the Cut-Off Date is the schedule set forth in Exhibit A of the Servicing
Agreement, which schedule sets forth as to each Mortgage Loan

                  (xiv) the loan number and name of the Mortgagor;

                  (xv)  the  street  address,  city,  state  and zip code of the
         Mortgaged Property;

                  (xvi) the Mortgage Rate;

                  (xvii) the Maximum Rate;

                  (xviii) the maturity date;

                  (xix) the original principal balance;

                  (xx) the first payment date;

                  (xxi) the type of Mortgaged Property;

                  (xxii) the Monthly Payment in effect as of the Cut-Off Date;

                  (xxiii) the Cut-off Date Principal Balance;

                  (xxiv) the occupancy status;

                  (xxv) the purpose of the Mortgage Loan;

                  (xxvi) the Appraised Value of the Mortgaged Property;

                  (xxvii) the original term to maturity;

                  (xxviii) the paid-through date of the Mortgage Loan;

                  (xxix) the Loan-to-Value Ratio; and

                  (xxx)  whether  or not  the  Mortgage  Loan  was  underwritten
         pursuant to a limited documentation program.

The Mortgage Loan Schedule shall also set forth the total of the amounts
described under (ix) above for all of the Mortgage Loans.

MORTGAGE LOANS: At any time, collectively, all Mortgage Loans that have been
sold to the Depositor under the Mortgage Loan Purchase Agreement or substituted
for pursuant to Section 2.1 and 3.1 of the Mortgage Loan Purchase Agreement and
transferred and conveyed to the Issuing Entity, in each case together with the
Related Documents, and that remain subject to the terms thereof.

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

MORTGAGE  RATE:  With  respect to any  Mortgage  Loan,  the annual rate at which
interest accrues on such Mortgage Loan.

MORTGAGED  PROPERTY:  The  underlying  property,  including  real  property  and
improvements thereon, securing a Mortgage Loan.

MORTGAGOR: The obligor or obligors under a Mortgage Note.

NET  LIQUIDATION  PROCEEDS:  With  respect  to  any  Liquidated  Mortgage  Loan,
Liquidation Proceeds net of Liquidation Expenses.

NET MONTHLY EXCESS CASHFLOW: For any Payment Date, the amount of Available Funds
and any Insured Payment remaining after distributions pursuant to clauses (i)
through (iii) of Section 3.05 of the Indenture (minus any Insured Payment and
any Subordination Reduction Amount).

NET MORTGAGE RATE: With respect to any Mortgage Loan and any day, the related
Mortgage Rate less the sum of the related Servicing Fee Rate, the Administrative
Fee Rate and the Indenture Trustee Fee Rate.

NONRECOVERABLE ADVANCE: Any advance (i) which was previously made or is proposed
to be made by the Servicer; and (ii) which, in the good faith judgment of the
Servicer, will not or, in the case of a proposed advance, would not, be
ultimately recoverable by the Servicer from Liquidation Proceeds, Insurance
Proceeds or future payments on any Mortgage Loan.

NOTE INSURANCE POLICY: The bond guaranty insurance policy number __________,
issued by the Note Insurer to the Indenture Trustee for the benefit of the
Noteholders.

NOTE  INSURER:  _____________________,  a  _________________,  and any successor
thereto or any replacement bond insurer substituted  pursuant to Section 3.29 of
the Indenture.

NOTE INSURER DEFAULT: The existence and continuance of any of the following: (a)
a failure by the Note Insurer to make a payment required under the Note
Insurance Policy in accordance with its terms; or (b)(i) the Note Insurer (A)
files any petition or commences any case or proceeding under any provision or
chapter of the Bankruptcy Code or any other similar federal or state law
relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (B) makes a general assignment for the benefit of its creditors,
or (C) has an order for relief entered against it under the Bankruptcy Code or
any other similar federal or state law relating to insolvency, bankruptcy,
rehabilitation, liquidation or reorganization which is final and nonappealable;
or (ii) a court of competent jurisdiction, the New York Department of Insurance
or other competent regulatory authority enters a final and nonappealable order,
judgment or decree (A) appointing a custodian, trustee, agent or receiver for
the Note Insurer or for all or any material portion of its property or (B)
authorizing the taking of possession by a custodian, trustee, agent or receiver
of the Note Insurer (or the taking of possession of all or any material portion
of the property of the Note Insurer).

NOTE INTEREST RATE: With respect to each Payment Date after the first Payment
Date, a floating rate equal to the lesser of (i) with respect to each Payment
Date up to and including the Payment Date in _________ 200_, One-Month LIBOR
plus ____%, and with respect to each Payment Date thereafter, One-Month LIBOR
plus ____% and (ii) the Available Funds Interest Rate with respect to such
Payment Date. The Note Interest Rate for the first Payment Date will equal ____%
per annum.

NOTE OWNER:  The Beneficial Owner of a Note.

NOTE PERCENTAGE: With respect to any Payment Date and any Note, the ratio
expressed as a percentage of the Note Principal Balance of such Note to the
aggregate Note Principal Balance of all Notes immediately prior to such Payment
Date.

NOTE PRINCIPAL BALANCE: With respect to any Note, the initial Note Principal
Balance thereof minus all amounts distributed in respect of principal with
respect to such Note.

NOTE REGISTER: The register maintained by the Note Registrar in which the Note
Registrar shall provide for the registration of Notes and of transfers and
exchanges of Notes.

NOTE REGISTRAR: The Indenture Trustee, in its capacity as Note Registrar.

NOTEHOLDER: The Person in whose name a Note is registered in the Note Register,
except that, any Note registered in the name of the Depositor, the Issuing
Entity or the Indenture Trustee or any Affiliate of any of them shall be deemed
not to be outstanding and the registered holder will not be considered a
Noteholder or holder for purposes of giving any request, demand, authorization,
direction, notice, consent or waiver under the Indenture or the Trust Agreement
provided that, in determining whether the Indenture Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that the Indenture Trustee or the Owner Trustee
knows to be so owned shall be so disregarded. Owners of Notes that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Indenture Trustee or the Owner Trustee the pledgee's
right so to act with respect to such Notes and that the pledgee is not the
Issuing Entity, any other obligor upon the Notes or any Affiliate of any of the
foregoing Persons. Any bonds on which payments are made under the Note Insurance
Policy shall be deemed Outstanding until the Note Insurer has been reimbursed
with respect thereto and the Note Insurer shall be deemed the Noteholder thereof
to the extent of such unreimbursed payment.

NOTES:  The Notes designated as the "Notes" in the Indenture.

OFFICER'S CERTIFICATE: With respect to the Servicer, a certificate signed by the
President, Managing Director, a Director, a Vice President or an Assistant Vice
President, of the Servicer and delivered to the Indenture Trustee. With respect
to the Issuing Entity, a certificate signed by any Authorized Officer of the
Issuing Entity, under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 10.01 of the Indenture, and
delivered to the Indenture Trustee. Unless otherwise specified, any reference in
the Indenture to an Officer's Certificate shall be to an Officer's Certificate
of any Authorized Officer of the Issuing Entity.

ONE-MONTH LIBOR: With respect to any Interest Period, the rate determined by the
Indenture Trustee on the related Interest Determination Date on the basis of the
offered rates of the Reference Banks for one-month United States dollar
deposits, as such rates appear on the Reuters Screen LIBOR Page, as of 11:00
a.m. (London time) on such Interest Determination Date. On each Interest
Determination Date, One-Month LIBOR for the related Interest Period will be
established by the Indenture Trustee as follows:

                  (xxxi)  If on such  Interest  Determination  Date  two or more
         Reference  Banks provide such offered  quotations,  One-Month LIBOR for
         the  related  Interest  Period  shall  be the  arithmetic  mean of such
         offered  quotations  (rounded upwards if necessary to the nearest whole
         multiple of 1/16%).

                  (xxxii) If on such Interest  Determination Date fewer than two
         Reference  Banks provide such offered  quotations,  One-Month LIBOR for
         the related  Interest Period shall be the higher of (i) One-Month LIBOR
         as determined on the previous Interest  Determination Date and (ii) the
         Reserve Interest Rate.

OPINION OF COUNSEL: A written opinion of counsel acceptable to Note Insurer who
may be in-house counsel for the Servicer if acceptable to the Indenture Trustee,
the Note Insurer and the Rating Agencies or counsel for the Depositor, as the
case may be.

ORIGINAL SPECIFIED SUBORDINATION AMOUNT: An amount equal to ____% of the
aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date.

ORIGINAL VALUE: Except in the case of a refinance Mortgage Loan, the lesser of
the Appraised Value or sales price of Mortgaged Property at the time a Mortgage
Loan is closed, and for a refinance Mortgage Loan, the Original Value is the
value of such property set forth in an appraisal acceptable to the Servicer.

OUTSTANDING: With respect to the Notes, as of the date of determination, all
Notes theretofore executed, authenticated and delivered under this Indenture
except:

                  (xxxiii) Notes theretofore  cancelled by the Note Registrar or
         delivered to the Indenture Trustee for cancellation; and

                  (xxxiv)  Notes in exchange for or in lieu of which other Notes
         have  been  executed,  authenticated  and  delivered  pursuant  to  the
         Indenture  unless  proof  satisfactory  to  the  Indenture  Trustee  is
         presented that any such Notes are held by a holder in due course;

                  (xxxv) Notes that have been paid with funds provided under the
         Note Insurance Policy shall be deemed to be Outstanding  until the Note
         Insurer has been reimbursed with respect thereto.

OWNER TRUST:  The American  Home  Mortgage  Assets LLC Trust Series 200_-_ to be
created pursuant to the Trust Agreement.

OWNER  TRUST  ESTATE:  The  corpus of the  Issuing  Entity  created by the Trust
Agreement which consists of items in Section 2.01 of the Trust Agreement.

OWNER  TRUSTEE:  ________________________  and its successors and assigns or any
successor owner trustee appointed pursuant to the terms of the Trust Agreement.

OWNER TRUSTEE FEE:

OWNER TRUSTEE FEE RATE:  ______% per annum.

PAYING AGENT: Any paying agent or co-paying agent appointed  pursuant to Section
3.03 of the Indenture, which initially shall be the Indenture Trustee.

PAYMENT ACCOUNT:  The account  established by the Indenture  Trustee pursuant to
Section 8.02 of the Indenture and Section 4.03 of theF Servicing Agreement.  The
Payment Account shall be an Eligible Account.

PAYMENT DATE: The 25th day of each month,  or if such day is not a Business Day,
then the next Business Day.

PERCENTAGE INTEREST: With respect to any Note, the percentage obtained by
dividing the Note Principal Balance of such Note by the aggregate of the Note
Principal Balances of all Notes. With respect to any Certificate, the percentage
on the face thereof. PERSON: Any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

POOL BALANCE:  With respect to any date, the aggregate of the Principal Balances
of all Mortgage Loans as of such date.

PREFERENCE AMOUNT: Any amount previously distributed to an Owner on the Notes
that is recoverable and sought to be recovered as a voidable preference by a
trustee in bankruptcy pursuant to the United States Bankruptcy Code (11 U.S.C.),
as amended from time to time, in accordance with a final nonappealable order of
a court having competent jurisdiction.

PREMIUM AMOUNT: The amount of premium due to the Note Insurer in accordance with
the terms of the Insurance Agreement.

PREPAYMENT INTEREST SHORTFALL: As to any Payment Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property) that was the subject of
(a) a Principal Prepayment in full during the related Prepayment Period, an
amount equal to the excess of interest accrued during the related Prepayment
Period at the Net Mortgage Rate on the Principal Balance of such Mortgage Loan
over the amount of interest (adjusted to the Net Mortgage Rate) paid by the
Mortgagor for such Prepayment Period to the date of such Principal Prepayment in
full or (b) a partial Prepayment during the prior calendar month, an amount
equal to interest accrued during the related Prepayment Period at the Net
Mortgage Rate on the amount of such partial Prepayment.

PREPAYMENT  PERIOD:  As to any Payment Date,  the calendar  month  preceding the
month of distribution.

PRIMARY  INSURANCE POLICY:  Each primary policy of mortgage  guaranty  insurance
issued by a Qualified Insurer or any replacement policy therefor.

PRINCIPAL BALANCE: With respect to any Mortgage Loan or related REO Property, at
any given time, (i) the Cut-off Date Principal Balance of the Mortgage Loan,
minus (ii) the sum of (a) the principal portion of the Monthly Payments due with
respect to such Mortgage Loan or REO Property during each Due Period ending
prior to the most recent Payment Date which were received or with respect to
which an Advance was made, and (b) all Principal Prepayments with respect to
such Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation
Proceeds and REO Proceeds, to the extent applied by the Servicer as recoveries
of principal in accordance with the Servicing Agreement with respect to such
Mortgage Loan or REO Property, and (c) any Realized Loss with respect thereto
for any previous Payment Date.

PRINCIPAL PAYMENT AMOUNT: With respect to any Payment Date (a) other than the
Final Scheduled Payment Date, and the first Payment Date following any
acceleration of the Notes following an Event of Default, the lesser of (a) the
sum of the Available Funds remaining after distributions pursuant to clause (i)
of Section 3.05 of the Indenture and any portion of any Insured Payment for such
Payment Date representing a Subordination Deficit and (b) the sum of:

                  (1) the  principal  portion of all Monthly  Payments  received
         during the related Due Period or advanced on each Mortgage Loan;

                  (2) the  Principal  Balance of any Mortgage  Loan  repurchased
         during  the  related  Prepayment  Period  (or  deemed  to have  been so
         repurchased)  pursuant  to the  Mortgage  Loan  Purchase  Agreement  or
         Section  3.18  of  the  Servicing  Agreement  and  the  amount  of  any
         Substitution Adjustment Amounts during the related Prepayment Period;

                  (3) the principal portion of all other unscheduled collections
         (including, without limitation,  Principal Prepayments in full, partial
         Prepayments, Insurance Proceeds, Liquidation Proceeds and REO Proceeds)
         received during the related  Prepayment Period to the extent applied by
         the  Servicer as payments or  recoveries  of  principal  of the related
         Mortgage Loan;

                  (4) any Insured Payment made with respect to any Subordination
         Deficit; and

MINUS

                  (5) the amount of any Subordination  Reduction Amount for such
         Payment Date;

and (b) with respect to the Final Scheduled Payment Date, and the first Payment
Date following any acceleration of the Notes following an Event of Default, the
amount necessary to reduce the Note Principal Balance to zero.

PRINCIPAL PREPAYMENT: Any payment of principal made by the Mortgagor on a
Mortgage Loan which is received in advance of its scheduled Due Date and which
is not accompanied by an amount of interest representing scheduled interest due
on any date or dates in any month or months subsequent to the month of
prepayment.

PROCEEDING:   Any  suit  in  equity,   action  at  law  or  other   judicial  or
administrative proceeding.

PURCHASE  PRICE:  The meaning  specified in Section  2.2(a) of the Mortgage Loan
Purchase Agreement.

PURCHASER:  _________________________,   a  ____________  corporation,  and  its
successors and assigns.

QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified as such
under the laws of the state of its principal place of business and each state
having jurisdiction over such insurer in connection with the insurance policy
issued by such insurer, duly authorized and licensed in such states to transact
a mortgage guaranty insurance business in such states and to write the insurance
provided by the insurance policy issued by it, approved as an insurer by the
Servicer and as a FNMA-approved mortgage insurer.

RATING AGENCY: Any nationally recognized statistical rating organization, or its
successor, that rated the Notes at the request of the Depositor at the time of
the initial issuance of the Notes. Initially, Moody's or Standard & Poor's. If
such organization or a successor is no longer in existence, "Rating Agency"
shall be such nationally recognized statistical rating organization, or other
comparable Person, designated by the Note Insurer so long as no Note Insurer
Default exists, notice of which designation shall be given to the Indenture
Trustee. References herein to the highest short term unsecured rating category
of a Rating Agency shall mean A-1 or better in the case of Standard & Poor's and
P-1 or better in the case of Moody's and in the case of any other Rating Agency
shall mean such equivalent ratings. References herein to the highest long-term
rating category of a Rating Agency shall mean "AAA" in the case of Standard &
Poor's and "Aaa" in the case of Moody's and in the case of any other Rating
Agency, such equivalent rating.

REALIZED LOSS: With respect to each Mortgage Loan (or REO Property) as to which
a Cash Liquidation or REO Disposition has occurred, an amount (not less than
zero) equal to (i) the Principal Balance of the Mortgage Loan (or REO Property)
as of the date of Cash Liquidation or REO Disposition, plus (ii) interest (and
REO Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to
which interest was last paid or advanced to Noteholders up to the last day of
the month in which the Cash Liquidation (or REO Disposition) occurred on the
Principal Balance of such Mortgage Loan (or REO Property) outstanding during
each Due Period that such interest was not paid or advanced, minus (iii) the
proceeds, if any, received during the month in which such Cash Liquidation (or
REO Disposition) occurred, to the extent applied as recoveries of interest at
the Net Mortgage Rate and to principal of the Mortgage Loan, net of the portion
thereof reimbursable to the Servicer or any Subservicer with respect to related
Advances or expenses as to which the Servicer or Subservicer is entitled to
reimbursement thereunder but which have not been previously reimbursed. With
respect to each Mortgage Loan which has become the subject of a Deficient
Valuation, the difference between the principal balance of the Mortgage Loan
outstanding immediately prior to such Deficient Valuation and the principal
balance of the Mortgage Loan as reduced by the Deficient Valuation. With respect
to each Mortgage Loan which has become the object of a Debt Service Reduction,
the amount of such Debt Service Reduction.

RECORD DATE: With respect to the Notes and any Payment Date, the last day of the
calendar month preceding such Payment Date.

REFERENCE BANKS: Bankers Trust Company, Barclay's Bank PLC, The Bank of Tokyo
and National Westminster Bank PLC and their successors in interest; provided
that if any of the foregoing banks are not suitable to serve as a Reference
Bank, then any leading banks selected by the Indenture Trustee which are engaged
in transactions in Eurodollar deposits in the international Eurocurrency market
(i) with an established place of business in London, (ii) not controlling, under
the control of or under common control with the Company or any Affiliate
thereof, (iii) whose quotations appear on the Reuters Screen LIBO Page on the
relevant Interest Determination Date and (iv) which have been designated as such
by the Indenture Trustee.

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

RELATED DOCUMENTS: With respect to each Mortgage Loan, the documents specified
in Section 2.1(b) of the Mortgage Loan Purchase Agreement and any documents
required to be added to such documents pursuant to the Mortgage Loan Purchase
Agreement, the Trust Agreement, Indenture or the Servicing Agreement.

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

RELIEF ACT SHORTFALL: For any Payment Date, As to any Payment Date and any
Mortgage Loan (other than a Mortgage Loan relating to an REO Property) any
shortfalls relating to the Relief Act or similar legislation or regulations.

REO ACQUISITION: The acquisition by the Servicer on behalf of the Indenture
Trustee for the benefit of the Noteholders of any REO Property pursuant to
Section 3.13 of the Servicing Agreement.

REO DISPOSITION: As to any REO Property, a determination by the Servicer that it
has received substantially all Insurance Proceeds, Liquidation Proceeds, REO
Proceeds and other payments and recoveries (including proceeds of a final sale)
which the Servicer expects to be finally recoverable from the sale or other
disposition of the REO Property.

REO IMPUTED INTEREST: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period.

REO PROCEEDS: Proceeds, net of expenses, received in respect of any REO Property
(including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the
Collection Account only upon the related REO Disposition.

REO PROPERTY: A Mortgaged Property that is acquired by the Issuing Entity in
foreclosure or by deed in lieu of foreclosure.

REPURCHASE EVENT: With respect to any Mortgage Loan, either (i) a discovery
that, as of the Closing Date the related Mortgage was not a valid lien on the
related Mortgaged Property subject only to (A) the lien of any prior mortgage
indicated on the Mortgage Loan Schedule, (B) the lien of real property taxes and
assessments not yet due and payable, (C) covenants, conditions, and
restrictions, rights of way, easements and other matters of public record as of
the date of recording of such Mortgage and such other permissible title
exceptions as are permitted and (D) other matters to which like properties are
commonly subject which do not materially adversely affect the value, use,
enjoyment or marketability of the related Mortgaged Property or (ii) with
respect to any Mortgage Loan as to which the Seller delivers an affidavit
certifying that the original Mortgage Note has been lost or destroyed, a
subsequent default on such Mortgage Loan if the enforcement thereof or of the
related Mortgage is materially and adversely affected by the absence of such
original Mortgage Note.

REPURCHASE PRICE: With respect to any Mortgage Loan required to be repurchased
on any date pursuant to the Mortgage Loan Purchase Agreement or purchased by the
Servicer pursuant to the Servicing Agreement, an amount equal to the sum,
without duplication, of (i) 100% of the Principal Balance thereof (without
reduction for any amounts charged off) and (ii) unpaid accrued interest at the
Mortgage Rate on the outstanding principal balance thereof from the Due Date to
which interest was last paid by the Mortgagor to the first day of the month
following the month of purchase plus (iii) the amount of Advances and any
unreimbursed Servicing Advances or unreimbursed Advances made with respect to
such Mortgage Loan plus (iv) any other amounts owed to the Servicer or the
Subservicer pursuant to Section 3.07 of the Servicing Agreement not included in
clause (iii) of this definition.

REQUIRED SUBORDINATION AMOUNT: With respect to any Payment Date occurring from
the initial Payment Date and ending on the later of (i) the date on which the
aggregate Principal Balance of the Mortgage Loans is 50% of the initial
aggregate Principal Balance of the Mortgage Loans and (ii) the 30th Payment
Date, the greater of:

                  (a) the Original Specified Subordination Amount; and

                  (b) two times the excess of (1) 50% of the aggregate Principal
         Balance  of the  Mortgage  Loans  which are 91 or more days  delinquent
         (including Mortgage Loans in foreclosure and REO Properties) as of such
         date over (2) two times the current  Net  Monthly  Excess Cash Flow for
         such Payment Date; and

with respect to any Payment Date thereafter, the greatest of:

                  (c) the  lesser of (1) the  Original  Specified  Subordination
         Amount  and (2) two times  ____%  times the  aggregate  Note  Principal
         Balance as of such Payment Date;

                  (d) two times the excess of (A) 50% of the aggregate Principal
         Balance  of the  Mortgage  Loans  which are 91 or more days  delinquent
         (including Mortgage Loans in foreclosure and REO Properties) as of such
         date over (B) two times the current  Net  Monthly  Excess Cash Flow for
         such Payment Date;

                  (e) 0.5% of the Cut-Off Date Principal Balance of the Mortgage
         Loans; and

                  (f) an amount  equal to the  outstanding  balance  of the four
         largest Mortgage Loans as of the Cut-Off Date;

Provided, however, that if (x) a Servicer Default has occurred and is continuing
as of such Payment Date, and such Servicer Default has not been waived by the
Note Insurer or (y) a claim has been made on the Note Insurance Policy by the
Indenture Trustee, the Required Subordination Amount shall not decrease on any
Payment Date.

RESERVE INTEREST RATE: With respect to any Interest Determination Date, the rate
per annum that the Indenture Trustee determines to be either (i) the arithmetic
mean (rounded upwards if necessary to the nearest whole multiple of 1/16%) of
the three-month United States dollar lending rates which New York City banks
selected by the Indenture Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank market or (ii) in the event that the Indenture Trustee can
determine no such arithmetic mean, the lowest three-month United States dollar
lending rate which New York City banks selected by the Indenture Trustee are
quoting on such Interest Determination Date to leading European banks.

RESPONSIBLE OFFICER: With respect to the Indenture Trustee, any officer of the
Indenture Trustee with direct responsibility for the administration of the Trust
Agreement and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

SECURITIES  ACT:  The  Securities  Act of 1933,  as  amended,  and the rules and
regulations promulgated thereunder.

SECURITY:  Any of the Certificates or Notes.

SECURITYHOLDER OR HOLDER: Any Noteholder or a Certificateholder.

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

SELLER:  _______________________,  a __________ corporation,  and its successors
and assigns.

SERVICING ACCOUNT: The separate trust account created and maintained by the
Servicer or each Subservicer with respect to the Mortgage Loans or REO Property,
which shall be an Eligible Account, for collection of taxes, assessments,
insurance premiums and comparable items as described in Section 3.08 of the
Servicing Agreement.

SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in connection with a default, delinquency or other
unanticipated event in the performance by the Servicer of its servicing
obligations, including, without duplication, but not limited to, the cost of (i)
the preservation, restoration and protection of a Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Sections 3.10, 3.11, 3.13 of the Servicing Agreement.

SERVICING  AGREEMENT:  The  Servicing  Agreement  dated as of ______  __,  200_,
between the Servicer and the Issuing Entity.

SERVICING  CERTIFICATE:  A  certificate  completed  and  executed by a Servicing
Officer  on  behalf of the  Servicer  in  accordance  with  Section  4.01 of the
Servicing Agreement.

SERVICING  DEFAULT:  The  meaning  assigned  in  Section  6.01 of the  Servicing
Agreement.

SERVICING  FEE: With respect to any Mortgage Loan, the sum of the related Master
Servicing Fee and the related Subservicing Fee.

SERVICING FEE RATE:  With respect to any Mortgage  Loan,  the sum of the related
Master Servicing Fee Rate and the Subservicing Fee Rate.

SERVICING OFFICER: Any officer of the Servicer involved in, or responsible for,
the administration and servicing of the Mortgage Loans whose name and specimen
signature appear on a list of servicing officers furnished to the Indenture
Trustee (with a copy to the Note Insurer) by the Servicer, as such list may be
amended from time to time.

SINGLE NOTE:  A Note in the amount of $1,000.

STANDARD & POOR'S:  Standard  & Poor's  Ratings  Service,  or its  successor  in
interest.

STATUTORY  TRUST  STATUTE:  Chapter 38 of Title 12 of the Delaware Code, 12 DEL.
Code ss.ss. 3801 ET SEQ., as the same may be amended from time to time.

SUBORDINATION AMOUNT: As of any Payment Date, the excess, if any, of (x) the sum
of the aggregate Principal Balances of the Mortgage Loans as of the close of
business on the last day of the related Due Period as of such Payment Date over
(y) the Note Principal Balance of the Notes as of such Payment Date (and
following the making of all distributions on such Payment Date)

SUBORDINATION DEFICIT: With respect to any Payment Date, the amount, if any, by
which (x) the aggregate Note Principal Balance of the Notes as of such Payment
Date, and following the making of all distributions to be made on such Payment
Date (except for any payment to be made as to principal from proceeds of the
Note Insurance Policy), exceeds (y) the aggregate Principal Balances of the
Mortgage Loans as of the close of business on the preceding Due Date on such
Payment Date.

SUBORDINATION INCREASE AMOUNT: With respect to any Payment Date, the amount of
any Net Monthly Excess Cashflow (including any Subordination Reduction Amount)
available in the Payment Account to increase the Subordination Amount up to the
Required Subordination Amount.

SUBORDINATION REDUCTION AMOUNT: With respect to any Payment Date, an amount
equal to the lesser of (a) the Excess Subordination Amount and (b) the principal
collections received by the Servicer with respect to the prior Due Period.

SUBSERVICER: Any Person with whom the Servicer has entered into a Subservicing
Agreement as a Subservicer by the Servicer and acceptable to the Note Insurer
and the Indenture Trustee, including the Initial Subservicers.

SUBSERVICING ACCOUNT: An Eligible Account established or maintained by a Sub
servicer as provided for in Section 3.06(e) of the Servicing Agreement.

SUBSERVICING AGREEMENT: The written contract between the Servicer and any
Subservicer relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.02 of the Servicing Agreement.

SUBSERVICING FEE: With respect to each Mortgage Loan and any date of
determination, the product of (i) the Subservicing Fee Rate divided by 12 and
(ii) the Principal Balance of such Mortgage Loans as of such date.

SUBSERVICING FEE RATE: For any date of determination, ____% per annum.

SUBSTITUTION ADJUSTMENT AMOUNT: With respect to any Eligible Substitute Mortgage
Loan, the amount as defined in Section 2.03 of the Servicing Agreement.

TELERATE SCREEN PAGE 3750: The display designated as page 3750 on the Telerate
Service (or such other page as may replace page 3750 on that service for the
purpose of displaying London interbank offered rates of major banks). If such
rate does not appear on such page (or such other page as may replace that page
on that service, or if such service is no longer offered, such other service for
displaying One-Month LIBOR or comparable rates as may be selected by the Issuing
Entity after consultation with the Indenture Trustee), the rate will be the
Reference Bank Rate.

TREASURY REGULATIONS: Regulations, including proposed or temporary Regulations,
promulgated under the Code. References herein to specific provisions of proposed
or temporary regulations shall include analogous provisions of final Treasury
Regulations or other successor Treasury Regulations.

TRUST  AGREEMENT:  The Trust  Agreement  dated as of ______ __, 200_ between the
Owner Trustee and the Depositor.

TRUST ESTATE: The meaning specified in the Granting Clause of the Indenture.

TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939, as amended from
time to time, as in effect on any relevant date.

UCC: The Uniform  Commercial Code, as amended from time to time, as in effect in
any specified jurisdiction.

WEIGHTED AVERAGE NET MORTGAGE RATE: With respect to the Mortgage Loans in the
aggregate, and any Due Date, the average of the Net Mortgage Rate for each
Mortgage Loan as of the last day of the related Due Period weighted on the basis
of the related Principal Balances outstanding as of the last day of the related
Due Period for each Mortgage Loan as determined by the Servicer in accordance
with the Servicer's normal servicing procedures.

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