Document:

EXHIBIT 4.1

                   RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.,

                                   Depositor,

                        RESIDENTIAL FUNDING COMPANY, LLC,

                                Master Servicer,

                                       and

                                  [           ]

                                     Trustee

                     FORM OF POOLING AND SERVICING AGREEMENT

                         Dated as of [________] 1, 20[_]

                 Mortgage Asset-Backed Pass-Through Certificates

                               Series 20[__]-RZ[_]

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I      DEFINITIONS.................................................... 6

           Section 1.01.    Definitions....................................... 6

           Section 1.02.    Determination of One-Month LIBOR................. 60

ARTICLE II     CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE
                            OF CERTIFICATES.................................. 62

           Section 2.01.    Conveyance of Mortgage Loans..................... 62

           Section 2.02.    Acceptance by Trustee............................ 65

           Section 2.03.    Representations, Warranties and Covenants
                            of the Master Servicer and the Depositor......... 67

           Section 2.04.    Representations and Warranties of Sellers........ 69

           Section 2.05.    Execution and Authentication of Certificates;
                            Conveyance of Uncertificated REMIC Regular
                            Interests........................................ 71

           Section 2.06.    Purposes and Powers of the Trust................. 72

ARTICLE III    ADMINISTRATION AND SERVICING OF MORTGAGE LOANS................ 73

           Section 3.01.    Master Servicer to Act as Servicer............... 73

           Section 3.02.    Subservicing Agreements Between Master Servicer
                            and Subservicers; Enforcement of Subservicers'
                            Obligations; Special Servicing................... 74

           Section 3.03.    Successor Subservicers........................... 75

           Section 3.04.    Liability of the Master Servicer................. 76

           Section 3.05.    No Contractual Relationship Between Subservicer
                            and Trustee or Certificateholders................ 76

           Section 3.06.    Assumption or Termination of Subservicing
                            Agreements by Trustee............................ 76

           Section 3.07.    Collection of Certain Mortgage Loan Payments;
                            Deposits to Custodial Account.................... 77

           Section 3.08.    Subservicing Accounts; Servicing Accounts........ 79

           Section 3.09.    Access to Certain Documentation and Information
                            Regarding the Mortgage Loans..................... 81

           Section 3.10.    Permitted Withdrawals from the Custodial
                            Account.......................................... 81

           Section 3.11.    Maintenance of Primary Insurance Coverage........ 83

           Section 3.12.    Maintenance of Fire Insurance and Omissions
                            and Fidelity Coverage............................ 84

           Section 3.13.    Enforcement of Due-on-Sale Clauses; Assumption
                            and Modification Agreements; Certain
                            Assignments...................................... 85

           Section 3.14.    Realization Upon Defaulted Mortgage Loans........ 87

                                       i

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

           Section 3.15.    Trustee to Cooperate; Release of Mortgage Files.. 90

           Section 3.16.    Servicing and Other Compensation; Compensating
                            Interest......................................... 91

           Section 3.17.    Reports to the Trustee and the Depositor......... 92

           Section 3.18.    Annual Statement as to Compliance................ 92

           Section 3.19.    Annual Independent Public Accountants'
                            Servicing Report................................. 93

           Section 3.20.    Right of the Depositor in Respect of the
                            Master Servicer.................................. 93

           Section 3.21.    Advance Facility................................. 93

ARTICLE IV     PAYMENTS TO CERTIFICATEHOLDERS................................ 98

           Section 4.01.    Certificate Account.............................. 98

           Section 4.02.    Distributions.................................... 98

           Section 4.03.    Statements to Certificateholders; Statements
                            to Rating Agencies; Exchange Act Reporting...... 102

           Section 4.04.    Distribution of Reports to the Trustee and the
                            Depositor; Advances by the Master Servicer...... 106

           Section 4.05.    Allocation of Realized Losses................... 108

           Section 4.06.    Reports of Foreclosures and Abandonment of
                            Mortgaged Property.............................. 110

           Section 4.07.    Optional Purchase of Defaulted Mortgage Loans... 110

           Section 4.08.    Swap Agreement.................................. 111

ARTICLE V      THE CERTIFICATES............................................. 113

           Section 5.01.    The Certificates................................ 113

           Section 5.02.    Registration of Transfer and Exchange of
                            Certificates.................................... 115

           Section 5.03.    Mutilated, Destroyed, Lost or Stolen
                            Certificates.................................... 120

           Section 5.04.    Persons Deemed Owners........................... 121

           Section 5.05.    Appointment of Paying Agent..................... 121

ARTICLE VI     THE DEPOSITOR AND THE MASTER SERVICER........................ 122

           Section 6.01.    Respective Liabilities of the Depositor and the
                            Master Servicer................................. 122

           Section 6.02.    Merger or Consolidation of the Depositor or the
                            Master Servicer; Assignment of Rights and
                            Delegation of Duties by Master Servicer......... 122

           Section 6.03.    Limitation on Liability of the Depositor, the
                            Master Servicer and Others...................... 123

           Section 6.04.    Depositor and Master Servicer Not to Resign..... 124

ARTICLE VII    DEFAULT...................................................... 125

                                       ii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

           Section 7.01.    Events of Default............................... 125

           Section 7.02.    Trustee or Depositor to Act; Appointment
                            of Successor.................................... 127

           Section 7.03.    Notification to Certificateholders.............. 128

           Section 7.04.    Waiver of Events of Default..................... 128

ARTICLE VIII   CONCERNING THE TRUSTEE....................................... 129

           Section 8.01.    Duties of Trustee............................... 129

           Section 8.02.    Certain Matters Affecting the Trustee........... 130

           Section 8.03.    Trustee Not Liable for Certificates
                            or Mortgage Loans............................... 132

           Section 8.04.    Trustee May Own Certificates.................... 132

           Section 8.05.    Master Servicer to Pay Trustee's Fees
                            and Expenses; Indemnification................... 132

           Section 8.06.    Eligibility Requirements for Trustee............ 133

           Section 8.07.    Resignation and Removal of the Trustee.......... 134

           Section 8.08.    Successor Trustee............................... 135

           Section 8.09.    Merger or Consolidation of Trustee.............. 135

           Section 8.10.    Appointment of Co-Trustee or Separate Trustee... 135

           Section 8.11.    Appointment of Custodians....................... 136

           Section 8.12.    Appointment of Office or Agency................. 137

           Section 8.13.    DTC Letter of Representations................... 137

           Section 8.14.    Swap Agreement.................................. 137

ARTICLE IX     TERMINATION.................................................. 138

           Section 9.01.    Termination Upon Purchase or Liquidation
                            of All Mortgage Loans........................... 138

           Section 9.02.    Additional Termination Requirements............. 143

ARTICLE X      REMIC PROVISIONS............................................. 144

           Section 10.01.   REMIC Administration............................ 144

           Section 10.02.   Master Servicer, REMIC Administrator
                            and Trustee Indemnification..................... 147

ARTICLE XI     MISCELLANEOUS PROVISIONS..................................... 149

           Section 11.01.   Amendment....................................... 149

           Section 11.02.   Recordation of Agreement; Counterparts.......... 151

           Section 11.03.   Limitation on Rights of Certificateholders...... 152

           Section 11.04.   Governing Law................................... 152

                                      iii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

           Section 11.05.   Notices......................................... 153

           Section 11.06.   Notices to Rating Agencies...................... 153

           Section 11.07.   Severability of Provisions...................... 154

           Section 11.08.   Supplemental Provisions for Resecuritization.... 154

           Section 11.09.   Intended Third Party Beneficiary................ 155

EXHIBITS

Exhibit A      Form of Class A Certificate

Exhibit B-1    Form of Class M Certificate

Exhibit B-2    Form of Class B Certificate

Exhibit C      Form of Class SB Certificate

Exhibit D      Form of Class R Certificate

Exhibit E      Form of Custodial Agreement

Exhibit F      Mortgage Loan Schedule

Exhibit G      Form of Request for Release

Exhibit H-1    Form of Transfer Affidavit and Agreement

Exhibit H-2    Form of Transferor Certificate

Exhibit I      Form of Investor Representation Letter

Exhibit J      Form of Transferor Representation Letter

Exhibit K      Form of Form 10-K Certification

Exhibit L      Form of Back-Up Certification to Form 10-K Certification

Exhibit M      Form of Lender Certification for Assignment of Mortgage Loan

Exhibit N      Form of Rule 144A Investment  Representation

Exhibit O      Form of ERISA Representation Letter for Class SB Certificates

Exhibit P      Form of ERISA Representation Letter for Class M Certificates

Exhibit Q      Information to be Provided by the Master Servicer to the Rating
               Agencies Relating to Reportable Modified Mortgage Loans

Exhibit R      Schedule of Swap Agreement Notional Balances

Exhibit S      Swap Agreement

Exhibit T      Servicing Criteria to be Addressed in Assessment of Compliance

                                       iv

<PAGE>

      This Pooling and Servicing Agreement, effective as of [________] 1, 20[_],
among RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC., as the depositor (together with
its permitted  successors and assigns,  the  "Depositor"),  RESIDENTIAL  FUNDING
COMPANY,  LLC, as master  servicer  (together with its permitted  successors and
assigns,  the "Master  Servicer"),  and  [_____________],  a banking association
organized  under the laws of the United  States,  as trustee  (together with its
permitted successors and assigns, the "Trustee").

                             PRELIMINARY STATEMENT:

      The  Depositor   intends  to  sell  mortgage   asset-backed   pass-through
certificates  (collectively,  the  "Certificates"),  to be issued  hereunder  in
seventeen  classes,  which in the aggregate will evidence the entire  beneficial
ownership  interest in the Mortgage Loans (as defined  herein) and certain other
related assets.

                                     REMIC I

      As provided herein, the REMIC Administrator will make an election to treat
the segregated pool of assets consisting of the Mortgage Loans and certain other
related assets (exclusive of the Swap Account and the Swap Agreement) subject to
this  Agreement  as a real estate  mortgage  investment  conduit (a "REMIC") for
federal  income  tax  purposes,  and  such  segregated  pool of  assets  will be
designated as "REMIC I." The Class [R-I]  Certificates  will  represent the sole
Class of "residual  interests"  in REMIC I for purposes of the REMIC  Provisions
(as  defined   herein)  under  federal  income  tax  law.  The  following  table
irrevocably  sets forth the  designation,  remittance rate (the  "Uncertificated
REMIC I Pass-Through  Rate") and initial  Uncertificated  Principal  Balance for
each of the "regular  interests"  in REMIC I (the "REMIC I Regular  Interests").
The  "latest  possible  maturity  date"  (determined   solely  for  purposes  of
satisfying  Treasury  regulation Section  1.860G-1(a)(4)(iii))  for each REMIC I
Regular  Interest  shall  be the  Maturity  Date.  None of the  REMIC I  Regular
Interests will be certificated.

                    Uncertificated            Initial
                        REMIC I           Uncertificated
                     Pass-Through             REMIC I           Latest Possible
Designation              Rate            Principal Balance       Maturity Date
-----------         --------------       -----------------      ----------------
[I-1-A]                [____](1)             [_______]          [________] 20[_]
[I-1-B]                [____](1)             [_______]          [________] 20[_]
[I-2-A]                [____](1)             [_______]          [________] 20[_]
[I-2-B]                [____](1)             [_______]          [________] 20[_]
[I-3-A]                [____](1)             [_______]          [________] 20[_]
[I-3-B]                [____](1)             [_______]          [________] 20[_]
[I-4-A]                [____](1)             [_______]          [________] 20[_]
[I-4-B]                [____](1)             [_______]          [________] 20[_]
[I-5-A]                [____](1)             [_______]          [________] 20[_]
[I-5-B]                [____](1)             [_______]          [________] 20[_]
[I-6-A]                [____](1)             [_______]          [________] 20[_]
[I-6-B]                [____](1)             [_______]          [________] 20[_]
[I-7-A]                [____](1)             [_______]          [________] 20[_]

                                       1
<PAGE>

                    Uncertificated            Initial
                        REMIC I           Uncertificated
                     Pass-Through             REMIC I           Latest Possible
Designation              Rate            Principal Balance       Maturity Date
-----------         --------------       -----------------      ----------------
[I-7-B]                [____](1)             [_______]          [________] 20[_]
[I-8-A]                [____](1)             [_______]          [________] 20[_]
[I-8-B]                [____](1)             [_______]          [________] 20[_]
[I-9-A]                [____](1)             [_______]          [________] 20[_]
[I-9-B]                [____](1)             [_______]          [________] 20[_]
[I-10-A]               [____](1)             [_______]          [________] 20[_]
[I-10-B]               [____](1)             [_______]          [________] 20[_]
[I-11-A]               [____](1)             [_______]          [________] 20[_]
[I-11-B]               [____](1)             [_______]          [________] 20[_]
[I-12-A]               [____](1)             [_______]          [________] 20[_]
[I-12-B]               [____](1)             [_______]          [________] 20[_]
[I-13-A]               [____](1)             [_______]          [________] 20[_]
[I-13-B]               [____](1)             [_______]          [________] 20[_]
[I-14-A]               [____](1)             [_______]          [________] 20[_]
[I-14-B]               [____](1)             [_______]          [________] 20[_]
[I-15-A]               [____](1)             [_______]          [________] 20[_]
[I-15-B]               [____](1)             [_______]          [________] 20[_]
[I-16-A]               [____](1)             [_______]          [________] 20[_]
[I-16-B]               [____](1)             [_______]          [________] 20[_]
[I-17-A]               [____](1)             [_______]          [________] 20[_]
[I-17-B]               [____](1)             [_______]          [________] 20[_]
[I-18-A]               [____](1)             [_______]          [________] 20[_]
[I-18-B]               [____](1)             [_______]          [________] 20[_]
[I-19-A]               [____](1)             [_______]          [________] 20[_]
[I-19-B]               [____](1)             [_______]          [________] 20[_]
[I-20-A]               [____](1)             [_______]          [________] 20[_]
[I-20-B]               [____](1)             [_______]          [________] 20[_]
[I-21-A]               [____](1)             [_______]          [________] 20[_]
[I-21-B]               [____](1)             [_______]          [________] 20[_]
[I-22-A]               [____](1)             [_______]          [________] 20[_]
[I-22-B]               [____](1)             [_______]          [________] 20[_]
[I-23-A]               [____](1)             [_______]          [________] 20[_]
[I-23-B]               [____](1)             [_______]          [________] 20[_]
[I-24-A]               [____](1)             [_______]          [________] 20[_]
[I-24-B]               [____](1)             [_______]          [________] 20[_]
[I-25-A]               [____](1)             [_______]          [________] 20[_]
[I-25-B]               [____](1)             [_______]          [________] 20[_]
[I-26-A]               [____](1)             [_______]          [________] 20[_]
[I-26-B]               [____](1)             [_______]          [________] 20[_]
[I-27-A]               [____](1)             [_______]          [________] 20[_]
[I-27-B]               [____](1)             [_______]          [________] 20[_]
[I-28-A]               [____](1)             [_______]          [________] 20[_]
[I-28-B]               [____](1)             [_______]          [________] 20[_]
[I-29-A]               [____](1)             [_______]          [________] 20[_]
[I-29-B]               [____](1)             [_______]          [________] 20[_]
[I-30-A]               [____](1)             [_______]          [________] 20[_]

                                       2
<PAGE>

                    Uncertificated            Initial
                        REMIC I           Uncertificated
                     Pass-Through             REMIC I           Latest Possible
Designation              Rate            Principal Balance       Maturity Date
-----------         --------------       -----------------      ----------------
[I-30-B]               [____](1)             [_______]          [________] 20[_]
[I-31-A]               [____](1)             [_______]          [________] 20[_]
[I-31-B]               [____](1)             [_______]          [________] 20[_]
[I-32-A]               [____](1)             [_______]          [________] 20[_]
[I-32-B]               [____](1)             [_______]          [________] 20[_]
[I-33-A]               [____](1)             [_______]          [________] 20[_]
[I-33-B]               [____](1)             [_______]          [________] 20[_]
[I-34-A]               [____](1)             [_______]          [________] 20[_]
[I-34-B]               [____](1)             [_______]          [________] 20[_]
[I-35-A]               [____](1)             [_______]          [________] 20[_]
[I-35-B]               [____](1)             [_______]          [________] 20[_]
[I-36-A]               [____](1)             [_______]          [________] 20[_]
[I-36-B]               [____](1)             [_______]          [________] 20[_]
[I-37-A]               [____](1)             [_______]          [________] 20[_]
[I-37-B]               [____](1)             [_______]          [________] 20[_]
[I-38-A]               [____](1)             [_______]          [________] 20[_]
[I-38-B]               [____](1)             [_______]          [________] 20[_]
[I-39-A]               [____](1)             [_______]          [________] 20[_]
[I-39-B]               [____](1)             [_______]          [________] 20[_]
[I-40-A]               [____](1)             [_______]          [________] 20[_]
[I-40-B]               [____](1)             [_______]          [________] 20[_]
[I-41-A]               [____](1)             [_______]          [________] 20[_]
[I-41-B]               [____](1)             [_______]          [________] 20[_]
[I-42-A]               [____](1)             [_______]          [________] 20[_]
[I-42-B]               [____](1)             [_______]          [________] 20[_]
[I-43-A]               [____](1)             [_______]          [________] 20[_]
[I-43-B]               [____](1)             [_______]          [________] 20[_]
[I-44-A]               [____](1)             [_______]          [________] 20[_]
[I-44-B]               [____](1)             [_______]          [________] 20[_]
[I-45-A]               [____](1)             [_______]          [________] 20[_]
[I-45-B]               [____](1)             [_______]          [________] 20[_]
[I-46-A]               [____](1)             [_______]          [________] 20[_]
[I-46-B]               [____](1)             [_______]          [________] 20[_]
[I-47-A]               [____](1)             [_______]          [________] 20[_]
[I-47-B]               [____](1)             [_______]          [________] 20[_]
[I-48-A]               [____](1)             [_______]          [________] 20[_]
[I-48-B]               [____](1)             [_______]          [________] 20[_]
[I-49-A]               [____](1)             [_______]          [________] 20[_]
[I-49-B]               [____](1)             [_______]          [________] 20[_]
[A-I]                  [____](1)             [_______]          [________] 20[_]

----------
(1)   Calculated  as  provided  in the  definition  of  Uncertificated  REMIC  I
      Pass-Through Rate.

                                       3
<PAGE>

                                    REMIC II

      As provided herein, the REMIC Administrator will make an election to treat
the  segregated  pool of assets  consisting  of the  REMIC I  Regular  Interests
subject to this Agreement as a REMIC for federal  income tax purposes,  and such
segregated  pool of assets will be  designated  as "REMIC II." The Class  [R-II]
Certificates  will represent the sole Class of "residual  interests" in REMIC II
for purposes of the REMIC  Provisions  (as defined  herein) under federal income
tax law. The following table irrevocably sets forth the designation,  remittance
rate  (the   "Uncertificated   REMIC  II   Pass-Through   Rate")   and   initial
Uncertificated Principal Balance for each of the "regular interests" in REMIC II
(the  "REMIC  II  Regular  Interests").  The  "latest  possible  maturity  date"
(determined  solely for  purposes  of  satisfying  Treasury  regulation  Section
1.860G-1(a)(4)(iii))  for each REMIC II Regular  Interest  shall be the Maturity
Date. None of the REMIC II Regular Interests will be certificated.

                    Uncertificated            Initial
                       REMIC II           Uncertificated
                     Pass-Through             REMIC II          Latest Possible
Designation              Rate            Principal Balance       Maturity Date
-----------         --------------       -----------------      ----------------
   [LT1]               [____](1              [_______]           November 2035
   [LT2]               [____](1              [_______]           November 2035
   [LT3]               [____](1              [_______]           November 2035
   [LT4]               [____](1              [_______]           November 2035
  [LT-IO]              [____](1                 (2)              November 2035

----------
(1)   Calculated  as  provided  in the  definition  of  Uncertificated  REMIC II
      Pass-Through Rate.

(2)   REMIC II Regular Interest LT-IO will not have an Uncertificated  Principal
      Balance but will accrue  interest on its  uncertificated  notional  amount
      calculated in accordance with the definition of  "Uncertificated  Notional
      Amount" herein.

                                       4
<PAGE>

                                    REMIC III

      As  provided  herein,  the  REMIC  Administrator  will  elect to treat the
segregated  pool of assets  consisting  of the REMIC II Regular  Interests  as a
REMIC for federal income tax purposes,  and such  segregated pool of assets will
be designated as REMIC III. The Class R-III Certificates will represent the sole
Class of "residual  interests" in REMIC III for purposes of the REMIC Provisions
under federal  income tax law. The following  table  irrevocably  sets forth the
designation, Pass-Through Rate, aggregate Initial Certificate Principal Balance,
certain features, month of Final Scheduled Distribution Date and initial ratings
for each Class of Certificates  comprising the interests  representing  "regular
interests" in REMIC III. The "latest possible maturity date" (determined  solely
for purposes of satisfying Treasury Regulation Section  1.860G-1(a)(4)(iii)) for
each Class of REMIC III Regular Certificates shall be the Maturity Date.

<TABLE>
<CAPTION>
                                                  Aggregate                                   Month of
                                                   Initial                                     Final
                                                 Certificate                                 Scheduled
                              Pass-Through        Principal                                 Distribution
Designation       Type            Rate             Balance             Features                 Date          Initial Ratings
-----------    ----------    ----------------    -----------  ---------------------------   ------------     -----------------
                                                                                                             [S&P]   [Moody's]
                                                                                                             -----   ---------
<S>            <C>              <C>              <C>            <C>                         <C>              <C>       <C>
Class [__]     Regular(1)       Adjustable       $[_______]     [Senior/Adjustable Rate]    [___] 20[_]      [AAA]     [Aaa]
Class [__]     Regular(1)       Adjustable       $[_______]     [Senior/Adjustable Rate]    [___] 20[_]      [AAA]     [Aaa]
Class [__]     Regular(1)       Adjustable       $[_______]     [Senior/Adjustable Rate]    [___] 20[_]      [AAA]     [Aaa]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]      [AA+]     [Aa1]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]       [AA]     [Aa2]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]      [AA-]     [Aa3]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]       [A+]      [A2]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]       [A]       [A3]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]       [A-]     [Baa1]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]      [BBB+]    [Baa2]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]   [Mezzanine/Adjustable Rate]   [___] 20[_]      [BBB]     [Baa3]
Class [__]     Regular(1)    Adjustable(2)(3)    $[_______]     [Subordinate/Adjustable     [___] 20[_]      [BBB-]    [Ba1]
                                                                         Rate]
Class [__]     Regular(4)          (4)           $[_______]        [Subordinate Rate]            [N/A]       [N/A]     [N/A]
Class [__]     Regular(5)          (6)              (7)                [Residual]                [N/A]       [N/A]     [N/A]
</TABLE>

----------
(1)   The [Class A, Class M and Class B] Certificates  will represent  ownership
      of a REMIC III  Regular  Interest  [together  with (i)  certain  rights to
      payments to be made from amounts  received under the Swap Agreement  which
      will be deemed made for federal  income tax purposes  outside of REMIC III
      by the  holder  of the  Class  SB  Certificates  as the  owner of the Swap
      Agreement and (ii) the obligation to pay the Class IO Distribution Amount.
      Any amount  distributed on this Class of Certificates on any  Distribution
      Date in  excess  of the  amount  distributable  on the  related  REMIC III
      Regular  Interest on such  Distribution  Date shall be treated for federal
      income tax  purposes  as having  been paid from the Swap  Account  and any
      amount   distributable   on  such  REMIC  III  Regular  Interest  on  such
      Distribution  Date in excess of the amount  distributable on such Class of
      Certificates  on such  Distribution  Date shall be treated as having  been
      paid to the Swap  Account,  all  pursuant  to and as further  provided  in
      Section 4.08 hereof].

(2)   [The REMIC III Regular Interests  ownership of which is represented by the
      Class A, Class M and Class B  Certificates,  will accrue interest at a per
      annum rate equal to LIBOR plus the  applicable  Margin,  each subject to a
      payment cap as described in the definition of "Pass-Through  Rate" and the
      provisions for the payment of Basis Risk Shortfalls herein, which payments
      will not be part of the  entitlement  of the REMIC III  Regular  Interests
      related to such Certificates].

                                       5
<PAGE>

(3)   The [Class A, Class M and Class B]  Certificates  will also entitle  their
      holders to certain  payments from the Holder of the Class SB  Certificates
      from amounts to which the related  REMIC III Regular  Interest is entitled
      and from amounts  received under the Swap  Agreement,  which will not be a
      part of their ownership of the REMIC III Regular Interests].

(4)   The  Class SB  Certificates  will  accrue  interest  as  described  in the
      definition of Accrued Certificate Interest. The Class SB Certificates will
      not accrue interest on their Certificate  Principal Balance.  The Class SB
      Certificates  will be  comprised  of two REMIC III  Regular  Interests,  a
      principal  only regular  interest  designated  SB-PO and an interest  only
      regular interest designated SB-IO, which will be entitled to distributions
      as set forth herein. The rights of the Holder of the Class SB Certificates
      to payments  from the Swap  Agreement  shall be outside and apart from its
      rights under the REMIC III Regular Interests SB-IO and SB-PO.

(5)   [REMIC  III  Regular  Interest  IO will be held as an  asset  of the  Swap
      Account established by the Trustee].

(6)   [For federal income tax purposes,  REMIC III Regular  Interest IO will not
      have a  Pass-Through  Rate,  but will be  entitled  to 100% of the amounts
      distributed on REMIC II Regular Interest LT-IO].

(7)   [For federal income tax purposes,  REMIC III Regular  Interest IO will not
      have an Uncertificated  Principal Balance, but will have a notional amount
      equal to the  Uncertificated  Notional Amount of REMIC II Regular Interest
      LT-IO].

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

                                   ARTICLE I

                                   DEFINITIONS

      Section 1.01. Definitions

      Whenever used in this Agreement,  the following words and phrases,  unless
the  context  otherwise  requires,  shall have the  meanings  specified  in this
Article.

      Accrued Certificate  Interest:  With respect to each Distribution Date and
each  Class  of  [Class  A  Certificates,  Class  M  Certificates  and  Class  B
Certificates],  an amount equal to interest  accrued during the related Interest
Accrual Period on the Certificate Principal Balance thereof immediately prior to
such  Distribution  Date at the related  Pass-Through Rate for that Distribution
Date.

      The amount of Accrued  Certificate  Interest on each Class of Certificates
shall be reduced  by the amount of (a)  Prepayment  Interest  Shortfalls  on the
Mortgage  Loans  during the prior  calendar  month (to the extent not covered by
Eligible Master Servicing  Compensation pursuant to Section 3.16) and Relief Act
Shortfalls  on  Mortgage  Loans  during the  related  Due  Period,  in each case
allocated  to each  Class of  Certificates  pro rata,  on the  basis of  Accrued
Certificate  Interest payable on such  Distribution Date absent such reductions;
and (b) the interest  portion of Realized Losses allocated to such Class through
Subordination as described in Section 4.05.

      Accrued  Certificate  Interest shall accrue on the basis of a 360-day year
and the actual number of days in the related Interest Accrual Period.

      With  respect  to each  Distribution  Date and the Class SB  Certificates,
interest   accrued  during  the  preceding   Interest   Accrual  Period  at  the
Pass-Through  Rate on the  Uncertificated  Notional  Amount as  specified in the
definition of Pass-Through  Rate,  immediately prior to such Distribution  Date,
reduced by any interest shortfalls with respect to the Mortgage Loans, including
Prepayment  Interest  Shortfalls  to the  extent  not  covered  by  Compensating
Interest  pursuant to Section  3.16 or by Excess  Cash Flow  pursuant to Section
4.02(c)(v) and (vi).

                                       6
<PAGE>

Accrued  Certificate  Interest on the Class SB Certificates  shall accrue on the
basis of a 360-day  year and the actual  number of days in the related  Interest
Accrual Period.

      Adjusted  Mortgage Rate: With respect to any Mortgage Loan and any date of
determination,  the Mortgage Rate borne by the related  Mortgage Note,  less the
rate at which the related Subservicing Fee accrues.

      Adjustment Date: With respect 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.

      Advance: With respect to any Mortgage Loan, any advance made by the Master
Servicer, pursuant to Section 4.04.

      Affected Party: As defined in the Swap Agreement.

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

      Agreement:  This Pooling and Servicing Agreement and all amendments hereof
and supplements hereto.

      Amount  Held for Future  Distribution:  With  respect to any  Distribution
Date,  the total of the amounts  held in the  Custodial  Account at the close of
business  on the  preceding  Determination  Date on account  of (i)  Liquidation
Proceeds, Insurance Proceeds, Principal Prepayments,  Subsequent Recoveries, REO
Proceeds,  Mortgage Loan purchases made pursuant to Section 2.02,  2.03, 2.04 or
4.07 and  Mortgage  Loan  substitutions  made  pursuant to Section  2.03 or 2.04
received  or made in the  month  of such  Distribution  Date  (other  than  such
Liquidation Proceeds,  Subsequent  Recoveries,  Insurance Proceeds, REO Proceeds
and purchases of Mortgage Loans that the Master Servicer has deemed to have been
received in the  preceding  month in accordance  with Section  3.07(b)) and (ii)
payments which  represent  early receipt of scheduled  payments of principal and
interest  due on a date or dates  subsequent  to the Due Date in the related Due
Period.

      Appraised  Value:  With  respect  to any  Mortgaged  Property,  one of the
following:  (i) the lesser of (a) the appraised value of such Mortgaged Property
based upon the appraisal or appraisals (or field review) made at the time of the
origination  of the  related  Mortgage  Loan,  and (b) the  sales  price  of the
Mortgaged  Property  at such  time  of  origination,  or  (ii) in the  case of a
Mortgaged  Property  securing a refinanced or modified Mortgage Loan, one of (1)
the appraised  value based upon the appraisal made at the time of origination of
the loan which was refinanced or modified, (2) the appraised value determined in
an appraisal made at the time of refinancing  or  modification  or (3) the sales
price of the Mortgaged Property.

      Assignment:   An  assignment  of  the  Mortgage,  notice  of  transfer  or
equivalent  instrument,  in recordable  form,  sufficient  under the laws of the
jurisdiction  wherein  the related  Mortgaged

                                       7
<PAGE>

Property  is located to reflect of record the sale of the  Mortgage  Loan to the
Trustee  for the  benefit of  Certificateholders,  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 and  accompanied  by an Opinion of Counsel to
that effect.

      Assignment Agreement:  The Assignment and Assumption Agreement,  dated the
Closing Date,  between  Residential  Funding and the  Depositor  relating to the
transfer and assignment of the Mortgage Loans.

      Available  Distribution  Amount: With respect to any Distribution Date, an
amount  equal  to (a) the sum of (i) the  amount  on  deposit  in the  Custodial
Account as of the close of business on the immediately  preceding  Determination
Date,  including  any  Subsequent  Recoveries,  and  amounts  deposited  in  the
Custodial  Account in connection with the  substitution of Qualified  Substitute
Mortgage Loans, (ii) the amount of any Advance made on the immediately preceding
Certificate  Account Deposit Date, (iii) any amount deposited in the Certificate
Account on the related  Certificate  Account Deposit Date pursuant to the second
paragraph of Section  3.12(a),  (iv) any amount that the Master  Servicer is not
permitted to withdraw from the Custodial  Account pursuant to Section 3.16(e) in
respect of the Mortgage  Loans and (v) any amount  deposited in the  Certificate
Account pursuant to Section 4.07 or 9.01, reduced by (b) the sum as of the close
of business on the immediately preceding  Determination Date of (i) any payments
or collections  consisting of prepayment charges on the Mortgage Loans that were
received during the related Prepayment  Period,  (ii) the Amount Held for Future
Distribution,  (iii)  amounts  permitted to be withdrawn by the Master  Servicer
from the Custodial Account pursuant to clauses (ii)-(x),  inclusive,  of Section
3.10(a),  and  (iv)  any Net  Swap  Payments  required  to be  made to the  Swap
Counterparty  and  Swap  Termination  Payments  not  due to a Swap  Counterparty
Trigger Event for such Distribution Date.

      Balloon  Loan:  Each of the  Mortgage  Loans  having an  original  term to
maturity that is shorter than the related amortization term.

      Balloon  Payment:  With respect to any Balloon Loan,  the related  Monthly
Payment payable on the stated maturity date of such Balloon Loan.

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

      Basis Risk Shortfall:  Any [Class A Basis Risk Shortfall],  [Class B Basis
Risk Shortfall] [or] [Class M Basis Risk Shortfall].

      Basis  Risk  Shortfall  Carry-Forward  Amount:  Any  [Class  A Basic  Risk
Shortfall  Carry-Forward  Amount],  [Class B Basis Risk Shortfall  Carry-Forward
Amount] [or] [Class M Basis Risk Shortfall Carry-Forward Amount].

      Book-Entry  Certificate:  Any  Certificate  registered  in the name of the
Depository or its nominee.

      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, the State of California,
the State of Texas,  the

                                       8
<PAGE>

State of Minnesota  or the State of Illinois  (and such other state or states in
which the Custodial Account or the Certificate  Account are at the time located)
are required or authorized by law or executive order to be closed.

      Calendar Quarter: A Calendar Quarter shall consist of one of the following
time periods in any given year: January 1 through March 31, April 1 through June
30, July 1 through September 30, and October 1 through December 31.

      Capitalization  Reimbursement  Amount:  With  respect to any  Distribution
Date, the amount of unreimbursed  Advances or Servicing Advances that were added
to the Stated  Principal  Balance of the  Mortgage  Loans  during the  preceding
calendar month and reimbursed to the Master Servicer or Subservicer  pursuant to
Section 3.10(a)(vii) on or prior to such Distribution Date.

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

      Certificate: Any [Class A] Certificate,  [Class M] Certificate,  [Class B]
Certificate, Class SB Certificate or Class R Certificate.

      Certificate  Account:  The  account or  accounts  created  and  maintained
pursuant  to  Section  4.01,  which  shall be  entitled  "[_______________],  as
trustee,  in trust for the  registered  holders of  Residential  Asset  Mortgage
Products,  Inc.,  Mortgage  Asset-Backed   Pass-Through   Certificates,   Series
20[_]-RZ[_]"   and  which   account  shall  be  held  for  the  benefit  of  the
Certificateholders and which must be an Eligible Account.

      Certificate  Account Deposit Date: With respect to any Distribution  Date,
the Business Day prior thereto.

      Certificateholder  or Holder:  The Person in whose name a  Certificate  is
registered  in the  Certificate  Register,  except that  neither a  Disqualified
Organization  nor a  Non-United  States  Person  shall be a holder  of a Class R
Certificate for any purpose hereof. Solely for the purpose of giving any consent
or direction pursuant to this Agreement,  any Certificate,  other than a Class R
Certificate, registered in the name of the Depositor, the Master Servicer or any
Subservicer or any Affiliate  thereof shall be deemed not to be outstanding  and
the Percentage  Interest or Voting Rights  evidenced  thereby shall not be taken
into account in determining whether the requisite amount of Percentage Interests
or Voting  Rights  necessary to effect any such  consent or  direction  has been
obtained.  All  references  herein to  "Holders" or  "Certificateholders"  shall
reflect the rights of Certificate  Owners as they may  indirectly  exercise such
rights through the  Depository  and  participating  members  thereof,  except as
otherwise  specified  herein;  provided,  however,  that  the  Trustee  shall be
required to  recognize as a "Holder" or  "Certificateholder"  only the Person in
whose name a Certificate is registered in the Certificate Register.

      Certificate  Owner: With respect to a Book-Entry  Certificate,  the Person
who is the beneficial owner of such Certificate, as reflected on the books of an
indirect participating

                                       9
<PAGE>

brokerage  firm for which a Depository  Participant  acts as agent,  if any, and
otherwise on the books of a Depository Participant, if any, and otherwise on the
books of the Depository.

      Certificate  Principal Balance:  With respect to any [Class A Certificate,
Class M Certificate or Class B Certificate],  on any date of  determination,  an
amount equal to:

      (i)   the Initial  Certificate  Principal  Balance of such  Certificate as
            specified on the face thereof, minus

      (ii)  the sum of (x) the aggregate of all amounts  previously  distributed
            with respect to such  Certificate (or any  predecessor  Certificate)
            and  applied to reduce the  Certificate  Principal  Balance  thereof
            pursuant to Section  4.02(c) and (y) the aggregate of all reductions
            in Certificate Principal Balance of such Certificates deemed to have
            occurred in connection  with Realized  Losses which were  previously
            allocated  to  such  Certificate  (or any  predecessor  Certificate)
            pursuant to Section 4.05;

provided,  that with respect to any Distribution Date, the Certificate Principal
Balances  of the  [Class  A  Certificates,  Class  M  Certificates  and  Class B
Certificates]  will be increased,  in each case to the extent of Realized Losses
previously  allocated  thereto  and  remaining  unreimbursed,  to the  extent of
Subsequent Recoveries in the following order of priority:  first to the [Class A
Certificates,  pro  rata,  and then to the  Class  M-1  Certificates,  Class M-2
Certificates,   Class  M-3  Certificates,  Class  M-4  Certificates,  Class  M-5
Certificates,   Class  M-6  Certificates,  Class  M-7  Certificates,  Class  M-8
Certificates and Class B Certificates], in that order.

      [With respect to any Class SB Certificate,  on any date of  determination,
an  amount  equal  to the  Percentage  Interest  evidenced  by such  Certificate
multiplied  by an  amount  equal  to (i) the  excess,  if any,  of (A) the  then
aggregate  Stated  Principal  Balance  of the  Mortgage  Loans over (B) the then
aggregate  Certificate  Principal  Balance of the Class A Certificates,  Class M
Certificates and Class B Certificates then outstanding, which represents the sum
of (i) the Initial Principal Balance of the REMIC III Regular Interest SB-PO, as
reduced by Realized Losses  allocated  thereto and payments deemed made thereon,
and (ii) accrued and unpaid interest on the REMIC III Regular Interest SB-IO, as
reduced by Realized Losses allocated thereto.]

      The Class R Certificates will not have a Certificate Principal Balance.

      Certificate  Register and Certificate  Registrar:  The register maintained
and the registrar appointed pursuant to Section 5.02.

      Class:  Collectively,  all of the Certificates or uncertificated interests
bearing the same designation.

      Class A Basis  Risk  Shortfall:  [With  respect  to each  Class of Class A
Certificates and any Distribution  Date for which the Pass-Through  Rate for any
such Class of Certificates is equal to the Net WAC Cap Rate, the excess, if any,
of (x)  the  lesser  of (a)  Accrued  Certificate  Interest  on  that  Class  of
Certificates on such Distribution Date,  calculated at a rate equal to One-Month
LIBOR plus the related Margin, as calculated for such Distribution Date, and (b)
11.00% per

                                       10
<PAGE>

annum,  over  (y)  Accrued  Certificate  Interest  on  such  Class  of  Class  A
Certificates for such Distribution Date calculated at the Net WAC Cap Rate.]

      Class A Basis Risk Shortfall  Carry-Forward  Amount: [With respect to each
Class of Class A  Certificates  and any  Distribution  Date,  the sum of (a) the
aggregate  amount  of  Class A Basis  Risk  Shortfall  for  such  Class  on such
Distribution Date plus (b) any Class A Basis Risk Shortfall Carry-Forward Amount
for such Class remaining unpaid from the preceding  Distribution  Date, plus (c)
one month's interest on the amount in clause (b) (based on the number of days in
the preceding Interest Accrual Period), to the extent previously unreimbursed by
Excess Cash Flow or the Swap  Agreement  pursuant to this  Agreement,  at a rate
equal to the related Pass-Through Rate.]

      Class A Certificates:  Collectively,  the Class [__]  Certificates,  Class
[__] Certificates and Class [__] Certificates.

      [Class A Principal  Distribution  Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger  Event  is  in  effect  for  that   Distribution   Date,  the  Principal
Distribution  Amount for that  Distribution Date or (b) on or after the Stepdown
Date if a Trigger Event is not in effect for that Distribution  Date, the lesser
of:

      (i)   the Principal Distribution Amount for that Distribution Date; and

      (ii)  the  excess,  if any,  of (A) the  aggregate  Certificate  Principal
            Balance  of the  Class  A  Certificates  immediately  prior  to that
            Distribution  Date over (B) the lesser of (x) the product of (1) the
            applicable  Subordination  Percentage  and (2) the aggregate  Stated
            Principal  Balance of the  Mortgage  Loans  after  giving  effect to
            distributions  to be  made  on that  Distribution  Date  and (y) the
            excess,  if any, of the aggregate  Stated  Principal  Balance of the
            Mortgage  Loans after giving effect to  distributions  to be made on
            that Distribution Date, over the Overcollateralization Floor.]

      [Class A-1 Certificate:  Any one of the Class A-1 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A, senior to [the Class M Certificates, the Class
B  Certificates],  the Class SB Certificates  and the Class R Certificates  with
respect to distributions and the allocation of Realized Losses in respect of the
Mortgage  Loans as set forth in Section  4.05,  and  evidencing  (i) an interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

      [Class A-1 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class A-2 Certificate:  Any one of the Class A-2 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A, senior to [the Class M Certificates, the Class
B  Certificates],  the Class SB Certificates  and the Class R Certificates  with
respect to distributions and the allocation of Realized Losses in

                                       11
<PAGE>

respect of the Mortgage  Loans as set forth in Section 4.05,  and evidencing (i)
an interest  designated as a "regular interest" in REMIC III for purposes of the
REMIC  Provisions,  (ii) the right to receive  payments under the Swap Agreement
and (iii) the obligation to pay the Class IO Distribution Amount.]

      [Class A-2 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class A-3 Certificate:  Any one of the Class A-3 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit A, senior to [the Class M Certificates, the Class
B  Certificates],  the Class SB Certificates  and the Class R Certificates  with
respect to distributions and the allocation of Realized Losses in respect of the
Mortgage  Loans as set forth in Section  4.05,  and  evidencing  (i) an interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

      [Class A-3 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class B Basis Risk  Shortfalls:  With respect to the Class B Certificates
and any  Distribution  Date for which the  Pass-Through  Rate for such  Class of
Certificates  is equal  to the Net WAC Cap  Rate,  the  excess,  if any,  of (x)
Accrued Certificate  Interest on that Class of Certificates on such Distribution
Date, calculated at a rate equal to LIBOR plus the related Margin, as calculated
for such Distribution Date, over (y) Accrued Certificate  Interest on such Class
of Class B Certificates for such Distribution Date calculated at the Net WAC Cap
Rate.]

      [Class B Basis Risk Shortfall  Carry-Forward  Amounts: With respect to the
Class B  Certificates  and any  Distribution  Date, the sum of (a) the aggregate
amount of Class B Basis Risk  Shortfall on such  Distribution  Date plus (b) any
Class B Basis Risk  Shortfall  Carry-Forward  Amount  remaining  unpaid from the
preceding  Distribution  Date,  plus (c) one  month's  interest on the amount in
clause  (b)  (based on the  number  of days in the  preceding  Interest  Accrual
Period),  to the extent previously  unreimbursed by Excess Cash Flow or the Swap
Agreement  pursuant  to  this  Agreement,   at  a  rate  equal  to  the  related
Pass-Through Rate.]

      [Class B Certificate:  Any one of the Class B Certificates executed by the
Trustee and authenticated by the Certificate Registrar substantially in the form
annexed hereto as Exhibit B-2, senior to the Class SB Certificates and the Class
R  Certificates  with respect to  distributions  and the  allocation of Realized
Losses  in as set  forth  in  Section  4.05,  and  evidencing  (i)  an  interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

                                       12
<PAGE>

      [Class B Margin: Initially,  [__]% per annum, and on any Distribution Date
on or after the  second  Distribution  Date  after the first  possible  Optional
Termination Date, [__]% per annum.]

      [Class B Principal  Distribution  Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class  M-2  Principal  Distribution  Amount,  Class M-3  Principal  Distribution
Amount,   Class  M-4  Principal   Distribution   Amount,   Class  M-5  Principal
Distribution  Amount,  Class M-6 Principal  Distribution  Amount,  the Class M-7
Principal  Distribution Amount and the Class M-8 Principal  Distribution Amount]
or (b) on or after the  Stepdown  Date if a Trigger  Event is not in effect  for
that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3  Principal  Distribution
            Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal
            Distribution  Amount,  Class M-6 Principal  Distribution Amount, the
            Class M-7 Principal  Distribution Amount and the Class M-8 Principal
            Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates,  Class M-5  Certificates,  Class M-6 Certificates,
            Class M-7 Certificates and the Class M-8 Certificates  (after taking
            into  account  the  payment  of the Class A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3  Principal  Distribution
            Amount, Class M-4 Principal Distribution Amount, Class M-5 Principal
            Distribution  Amount,  Class M-6 Principal  Distribution Amount, the
            Class M-7 Principal  Distribution Amount and the Class M-8 Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance   of  the  Class  B   Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class IO Distribution  Amount: As defined in Section 4.08(f) hereof.  For
purposes of clarity,  the Class IO Distribution Amount for any Distribution Date
shall equal the amount payable to the Swap Account on such  Distribution Date in
excess  of  the  amount  payable  on  REMIC  III  Regular  Interest  IO on  such
Distribution Date, all as further provided in Section 4.08(b) hereof.]

                                       13
<PAGE>

      [Class M Basis  Risk  Shortfall:  With  respect  to each  Class of Class M
Certificates and any Distribution  Date for which the Pass-Through  Rate for any
such Class of Certificates is equal to the Net WAC Cap Rate, the excess, if any,
of (x)  the  lesser  of (a)  Accrued  Certificate  Interest  on  that  Class  of
Certificates on such Distribution Date,  calculated at a rate equal to One-Month
LIBOR plus the related Margin, as calculated for such Distribution Date, and (b)
11.00% per annum, over (y) Accrued Certificate Interest on such Class of Class M
Certificates for such Distribution Date calculated at the Net WAC Cap Rate.]

      [Class M Basis Risk Shortfall  Carry-Forward  Amount: With respect to each
Class of Class M  Certificates  and any  Distribution  Date,  the sum of (a) the
aggregate  amount  of  Class M Basis  Risk  Shortfall  for  such  Class  on such
Distribution Date plus (b) any Class M Basis Risk Shortfall Carry-Forward Amount
for such Class remaining unpaid from the preceding  Distribution  Date, plus (c)
one month's interest on the amount in clause (b) (based on the number of days in
the preceding Interest Accrual Period), to the extent previously unreimbursed by
Excess Cash Flow or the Swap  Agreement  pursuant to this  Agreement,  at a rate
equal to the related Pass-Through Rate.]

      Class M Certificates:  Collectively,  the Class [__]  Certificates,  Class
[__] Certificates,  Class [__] Certificates, Class [__] Certificates, Class [__]
Certificates,  Class [__]  Certificates,  Class [__] Certificates and Class [__]
Certificates.

      [Class M-1 Certificate:  Any one of the Class M-1 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to [the Class [__] Certificates,  the
Class  [__]  Certificates,   the  Class  [__]   Certificates,   the  Class  [__]
Certificates,  the Class [__]  Certificates,  the Class [__]  Certificates,  the
Class [__]  Certificates,  the Class B Certificates,]  the Class SB Certificates
and the Class R Certificates with respect to distributions and the allocation of
Realized  Losses as set forth in Section 4.05,  and  evidencing  (i) an interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

      [Class M-1 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-1 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount or (b) on or after the Stepdown Date if a Trigger
Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal  Balance of the Class A  Certificates  (after  taking into
            account the payment of the Class A Principal Distribution Amount for
            that Distribution Date) and (2) the

                                       14
<PAGE>

            Certificate   Principal   Balance  of  the  Class  M-1  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-2 Certificate:  Any one of the Class M-2 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to [the Class [__] Certificates,  the
Class  [__]  Certificates,   the  Class  [__]   Certificates,   the  Class  [__]
Certificates,  the Class [__]  Certificates,  the Class [__]  Certificates,  the
Class B  Certificates,]  the Class SB Certificates  and the Class R Certificates
with respect to distributions and the allocation of Realized Losses as set forth
in  Section  4.05,  and  evidencing  (i) an  interest  designated  as a "regular
interest" in REMIC III for purposes of the REMIC  Provisions,  (ii) the right to
receive  payments  under the Swap  Agreement and (iii) the obligation to pay the
Class IO Distribution Amount.]

      [Class M-2 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-2 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal Distribution Amount and the Class M-1 Principal Distribution Amount or
(b) on or after the Stepdown  Date if a Trigger  Event is not in effect for that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date after distribution of the Class A Principal Distribution Amount
            and the Class M-1 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal  Balance  of  the  Class  A  Certificates  and  Class  M-1
            Certificates  (after  taking into account the payment of the Class A
            Principal   Distribution   Amount   and  the  Class  M-1   Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-2  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-3 Certificate:  Any one of the Class M-3 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as

                                       15
<PAGE>

Exhibit  B-1,   senior  to  [the  Class  [__]   Certificates,   the  Class  [__]
Certificates,  the Class [__]  Certificates,  the Class [__]  Certificates,  the
Class [__]  Certificates,  the Class B Certificates,]  the Class SB Certificates
and the Class R Certificates with respect to distributions and the allocation of
Realized  Losses as set forth in Section 4.05,  and  evidencing  (i) an interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

      [Class M-3 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-3 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal  Distribution Amount and
the Class M-2 Principal Distribution Amount or (b) on or after the Stepdown Date
if a Trigger Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount,  the Class M-1 Principal  Distribution  Amount and the Class
            M-2 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates and Class M-2  Certificates  (after taking into account
            the payment of the Class A Principal  Distribution Amount, the Class
            M-1  Principal  Distribution  Amount  and the  Class  M-2  Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-3  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-4 Certificate:  Any one of the Class M-4 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to the [Class [__] Certificates,  the
Class  [__]  Certificates,   the  Class  [__]   Certificates,   the  Class  [__]
Certificates, the Class B Certificates,] the Class SB Certificates and the Class
R  Certificates  with respect to  distributions  and the  allocation of Realized
Losses as set forth in Section 4.05, and  evidencing (i) an interest  designated
as a "regular interest" in REMIC III for purposes of the REMIC Provisions,  (ii)
the right to receive  payments under the Swap Agreement and (iii) the obligation
to pay the Class IO Distribution Amount.]

                                       16
<PAGE>

      [Class M-4 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-4 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution
Amount or (b) on or after the Stepdown  Date if a Trigger Event is not in effect
for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal   Distribution   Amount   and  the  Class  M-3   Principal
            Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2  Certificates  and  Class M-3  Certificates
            (after  taking  into  account  the  payment of the Class A Principal
            Distribution  Amount, the Class M-1 Principal  Distribution  Amount,
            the  Class  M-2  Principal  Distribution  Amount  and the  Class M-3
            Principal  Distribution  Amount for that Distribution  Date) and (2)
            the  Certificate  Principal  Balance  of the Class M-4  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-5 Certificate:  Any one of the Class M-5 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to [the Class [__] Certificates,  the
Class [__] Certificates, the Class [__] Certificates, the Class B Certificates,]
the  Class  SB  Certificates  and  the  Class R  Certificates  with  respect  to
distributions  and the  allocation  of  Realized  Losses as set forth in Section
4.05, and evidencing (i) an interest designated as a "regular interest" in REMIC
III for  purposes of the REMIC  Provisions,  (ii) the right to receive  payments
under  the  Swap  Agreement  and  (iii)  the  obligation  to pay  the  Class  IO
Distribution Amount.]

      [Class M-5 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-5 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date

                                       17
<PAGE>

after distribution of the Class A Principal  Distribution  Amount, the Class M-1
Principal  Distribution  Amount,  the Class M-2 Principal  Distribution  Amount,
Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution
Amount or (b) on or after the Stepdown  Date if a Trigger Event is not in effect
for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3  Principal  Distribution
            Amount and the Class M-4 Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2  Certificates,  Class M-3  Certificates and
            Class M-4 Certificates (after taking into account the payment of the
            Class A  Principal  Distribution  Amount,  the Class  M-1  Principal
            Distribution  Amount, the Class M-2 Principal  Distribution  Amount,
            Class M-3 Principal  Distribution Amount and the Class M-4 Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-5  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-6 Certificate:  Any one of the Class M-6 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to [the Class [__] Certificates,  the
Class [__]  Certificates,  the Class B Certificates,]  the Class SB Certificates
and the Class R Certificates with respect to distributions and the allocation of
Realized  Losses as set forth in Section 4.05,  and  evidencing  (i) an interest
designated  as a  "regular  interest"  in REMIC  III for  purposes  of the REMIC
Provisions,  (ii) the right to receive  payments  under the Swap  Agreement  and
(iii) the obligation to pay the Class IO Distribution Amount.]

      [Class M-6 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-6 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class  M-2  Principal  Distribution  Amount,  Class M-3  Principal  Distribution
Amount,  Class M-4  Principal  Distribution  Amount and the Class M-5  Principal
Distribution  Amount or (b) on or after the Stepdown  Date if a Trigger Event is
not in effect for that Distribution Date, the lesser of:

                                       18
<PAGE>

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3  Principal  Distribution
            Amount,  Class M-4 Principal  Distribution  Amount and the Class M-5
            Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4  Certificates  and Class M-5  Certificates  (after  taking  into
            account the payment of the Class A  Principal  Distribution  Amount,
            the Class M-1 Principal Distribution Amount, the Class M-2 Principal
            Distribution Amount, Class M-3 Principal  Distribution Amount, Class
            M-4  Principal  Distribution  Amount  and the  Class  M-5  Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-6  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-7 Certificate:  Any one of the Class M-7 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1, senior to [the Class [__] Certificates,  the
Class B  Certificates,]  the Class SB Certificates  and the Class R Certificates
with respect to distributions and the allocation of Realized Losses as set forth
in  Section  4.05,  and  evidencing  (i) an  interest  designated  as a "regular
interest" in REMIC III for purposes of the REMIC  Provisions,  (ii) the right to
receive  payments  under the Swap  Agreement and (iii) the obligation to pay the
Class IO Distribution Amount.]

      [Class M-7 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-7 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class  M-2  Principal  Distribution  Amount,  Class M-3  Principal  Distribution
Amount,   Class  M-4  Principal   Distribution   Amount,   Class  M-5  Principal
Distribution Amount and the Class M-6 Principal Distribution Amount or (b) on or
after  the  Stepdown  Date  if a  Trigger  Event  is  not  in  effect  for  that
Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3

                                       19
<PAGE>

            Principal  Distribution  Amount,  Class M-4  Principal  Distribution
            Amount,  Class M-5 Principal  Distribution  Amount and the Class M-6
            Principal Distribution Amount; and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates,  Class M-5 Certificates and Class M-6 Certificates
            (after  taking  into  account  the  payment of the Class A Principal
            Distribution  Amount, the Class M-1 Principal  Distribution  Amount,
            the Class M-2  Principal  Distribution  Amount,  Class M-3 Principal
            Distribution Amount, Class M-4 Principal  Distribution Amount, Class
            M-5  Principal  Distribution  Amount  and the  Class  M-6  Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-7  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class M-8 Certificate:  Any one of the Class M-8 Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit B-1,  senior to [the Class B  Certificates,]  the
Class SB Certificates and the Class R Certificates with respect to distributions
and the  allocation  of  Realized  Losses  as set  forth in  Section  4.05,  and
evidencing (i) an interest  designated as a "regular  interest" in REMIC III for
purposes of the REMIC  Provisions,  (ii) the right to receive payments under the
Swap  Agreement  and  (iii)  the  obligation  to pay the  Class IO  Distribution
Amount.]

      [Class M-8 Margin:  Initially,  [__]% per annum,  and on any  Distribution
Date on or after the second  Distribution Date after the first possible Optional
Termination Date, [__]% per annum.]

      [Class M-8 Principal Distribution Amount: With respect to any Distribution
Date  (a)  prior to the  Stepdown  Date or on or after  the  Stepdown  Date if a
Trigger Event is in effect for that Distribution  Date, the remaining  Principal
Distribution Amount for that Distribution Date after distribution of the Class A
Principal  Distribution Amount, the Class M-1 Principal Distribution Amount, the
Class  M-2  Principal  Distribution  Amount,  Class M-3  Principal  Distribution
Amount,   Class  M-4  Principal   Distribution   Amount,   Class  M-5  Principal
Distribution  Amount, the Class M-6 Principal  Distribution Amount and the Class
M-7  Principal  Distribution  Amount or (b) on or after the  Stepdown  Date if a
Trigger Event is not in effect for that Distribution Date, the lesser of:

      (i)   the remaining  Principal  Distribution  Amount for that Distribution
            Date  after  distribution  of the  Class  A  Principal  Distribution
            Amount, the Class M-1 Principal  Distribution  Amount, the Class M-2
            Principal  Distribution  Amount,  Class M-3  Principal  Distribution
            Amount, Class M-4 Principal Distribution Amount,

                                       20
<PAGE>

            Class M-5  Principal  Distribution  Amount,  the Class M-6 Principal
            Distribution Amount and the Class M-7 Principal Distribution Amount;
            and

      (ii)  the excess, if any, of (A) the sum of (1) the aggregate  Certificate
            Principal   Balance   of  the  Class  A   Certificates,   Class  M-1
            Certificates,  Class M-2 Certificates, Class M-3 Certificates, Class
            M-4 Certificates, Class M-5 Certificates, Class M-6 Certificates and
            Class M-7 Certificates (after taking into account the payment of the
            Class A  Principal  Distribution  Amount,  the Class  M-1  Principal
            Distribution  Amount, the Class M-2 Principal  Distribution  Amount,
            Class  M-3  Principal   Distribution  Amount,  Class  M-4  Principal
            Distribution  Amount,  Class M-5 Principal  Distribution Amount, the
            Class M-6 Principal  Distribution Amount and the Class M-7 Principal
            Distribution   Amount  for  that  Distribution  Date)  and  (2)  the
            Certificate   Principal   Balance  of  the  Class  M-8  Certificates
            immediately  prior to that  Distribution Date over (B) the lesser of
            (x) the product of (1) the applicable  Subordination  Percentage and
            (2) the aggregate  Stated  Principal  Balance of the Mortgage  Loans
            after giving effect to distributions to be made on that Distribution
            Date and (y) the excess,  if any, of the aggregate  Stated Principal
            Balance of the Mortgage  Loans after giving effect to  distributions
            to be made on that Distribution Date, over the Overcollateralization
            Floor.]

      [Class R Certificate:  Any one of the Class [__], Class [__] or Class [__]
Certificates.]

      [Class R-I Certificate:  Any one of the Class R-I Certificates executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed  hereto as Exhibit D and  evidencing  an interest  designated  as a
"residual interest" in REMIC I for purposes of the REMIC Provisions.]

      [Class R-II Certificate:  Any one of the Class R-II Certificates  executed
by the Trustee and authenticated by the Certificate  Registrar  substantially in
the form annexed hereto as Exhibit D and evidencing an interest  designated as a
"residual interest" in REMIC II for purposes of the REMIC Provisions.]

      [Class R-III Certificate: Any one of the Class R-III Certificates executed
by the Trustee and authenticated by the Certificate  Registrar  substantially in
the form annexed hereto as Exhibit D and evidencing an interest  designated as a
"residual interest" in REMIC III for purposes of the REMIC Provisions.]

      [Class SB Certificate:  Any one of the Class SB  Certificates  executed by
the Trustee and authenticated by the Certificate Registrar  substantially in the
form annexed hereto as Exhibit C, subordinate to the Class A Certificates, Class
M Certificates and Class B Certificates  with respect to  distributions  and the
allocation of Realized  Losses as set forth in Section 4.05,  and  evidencing an
interest comprised of "regular interests" in REMIC III for purposes of the REMIC
Provisions together with certain rights to payments under the Swap Agreement for
purposes of the REMIC Provisions.]

      Closing Date: [__________], 20[_].

                                       21
<PAGE>

      Code: The Internal Revenue Code of 1986.

      Commission: The Securities and Exchange Commission.

      Compensating  Interest:  With respect to any Distribution Date, any amount
paid by the Master Servicer in accordance with Section 3.16(f).

      Corporate  Trust Office:  The principal  office of the Trustee at which at
any particular  time its corporate trust business with respect to this Agreement
shall  be  administered,  which  office  at the  date of the  execution  of this
instrument  is located at  [Address  of Trustee]  Attention:  Residential  Asset
Mortgage Products, Inc., Series 20[_]-RZ[_].

      Credit Repository:  Equifax,  Transunion and Experian, or their successors
in interest.

      Curtailment:  Any Principal  Prepayment made by a Mortgagor which is not a
Principal Prepayment in Full.

      Custodial   Account:   The  custodial  account  or  accounts  created  and
maintained pursuant to Section 3.07 in the name of a depository institution,  as
custodian for the holders of the Certificates,  for the holders of certain other
interests in mortgage loans serviced or sold by the Master  Servicer and for the
Master  Servicer,  into which the  amounts  set forth in  Section  3.07 shall be
deposited directly. Any such account or accounts shall be an Eligible Account.

      Custodial  Agreement:  An  agreement  that may be  entered  into among the
Depositor, the Master Servicer, the Trustee and a Custodian in substantially the
form of Exhibit E hereto.

      Custodial  File:  Any mortgage  loan document in the Mortgage File that is
required to be  delivered  to the Trustee or the  Custodian  pursuant to Section
2.01(b) of this Agreement.

      Custodian: A custodian appointed pursuant to a Custodial Agreement.

      Cut-off Date Balance: $[__________].

      Cut-off Date: [____________] 1, 20[_].

      Cut-off Date  Principal  Balance:  With respect to any Mortgage  Loan, the
unpaid principal  balance thereof at the Cut-off Date after giving effect to all
installments  of principal  due on or prior  thereto (or due during the month of
the Cut-off Date), whether or not received.

      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.

      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

                                       22
<PAGE>

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 Certificate: Any definitive, fully-registered Certificate.

      Deleted  Mortgage  Loan: A Mortgage Loan replaced or to be replaced with a
Qualified Substitute Mortgage Loan.

      Delinquent: As used herein, a Mortgage Loan is considered to be: "30 to 59
days" or "30 or more days"  delinquent  when a payment due on any  scheduled due
date remains  unpaid as of the close of business on the next  following  monthly
scheduled  due  date;  "60 to 89 days" or "60 or more  days"  delinquent  when a
payment due on any scheduled due date remains unpaid as of the close of business
on the second following monthly scheduled due date; and so on. The determination
as to whether a Mortgage  Loan  falls  into these  categories  is made as of the
close of  business  on the last  business  day of each  month.  For  example,  a
Mortgage Loan with a payment due on May 1 that  remained  unpaid as of the close
of business on June 30 would then be considered to be 30 to 59 days  delinquent.
Delinquency  information as of the Cut-off Date is determined and prepared as of
the close of business on the last business day immediately  prior to the Cut-off
Date.

      Depositor: As defined in the preamble hereto.

      Depository:  The  Depository  Trust Company,  or any successor  Depository
hereafter  named.  The  nominee  of  the  initial  Depository  for  purposes  of
registering those Certificates that are to be Book-Entry  Certificates is Cede &
Co. The Depository shall at all times be a "clearing  corporation" as defined in
Section  8-102(a)(5) of the Uniform Commercial Code of the State of New York and
a "clearing agency" registered  pursuant to the provisions of Section 17A of the
Exchange Act.

      Depository  Participant:   A  broker,  dealer,  bank  or  other  financial
institution  or other  Person  for whom from time to time a  Depository  effects
book-entry transfers and pledges of securities deposited with the Depository.

      Destroyed  Mortgage  Note:  A  Mortgage  Note the  original  of which  was
permanently lost or destroyed and has not been replaced.

      Determination  Date: With respect to any Distribution Date, the [20th] day
(or if such  [20th] day is not a Business  Day,  the  Business  Day  immediately
following such [20th] day) of the month of the related Distribution Date.

      Disqualified  Organization:  Any  organization  defined as a "disqualified
organization" under Section 860E(e)(5) of the Code, including,  if not otherwise
included,  any of the following:  (i) the United States,  any State or political
subdivision  thereof,  any  possession  of the United  States,  or any agency or
instrumentality of any of the foregoing (other than an instrumentality  which is
a  corporation  if all of its  activities  are  subject  to tax and,  except for
Freddie  Mac, a  majority  of its board of  directors  is not  selected  by such
governmental unit), (ii) a foreign government,  any international  organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives  described in

                                       23
<PAGE>

Section  521 of the Code)  which is exempt  from the tax imposed by Chapter 1 of
the Code  (including  the tax  imposed by Section  511 of the Code on  unrelated
business  taxable  income) and (iv) rural  electric and  telephone  cooperatives
described in Section 1381(a)(2)(C) of the Code. A Disqualified Organization also
includes any "electing large  partnership,"  as defined in Section 775(a) of the
Code and any other Person so  designated by the Trustee based upon an Opinion of
Counsel that the holding of an Ownership  Interest in a Class R  Certificate  by
such Person may cause any REMIC or any Person  having an  Ownership  Interest in
any Class of Certificates  (other than such Person) to incur a liability for any
federal tax imposed  under the Code that would not  otherwise be imposed but for
the Transfer of an Ownership  Interest in a Class R Certificate  to such Person.
The terms "United States," "State" and "international  organization"  shall have
the meanings set forth in Section 7701 of the Code or successor provisions.

      Distribution  Date: The 25th day of any month  beginning in  [__________],
20[_] or, if such 25th day is not a Business  Day, the Business Day  immediately
following such 25th day.

      DTC Letter:  The Letter of  Representations,  dated  [__________],  20[_],
among the  Trustee  on behalf of the  Trust  Fund,  [_________________],  in its
individual capacity as agent thereunder and the Depository.

      Due Date: With respect to any Distribution Date and any Mortgage Loan, the
day during the related Due Period on which the Monthly Payment is due.

      Due Period:  With respect to any Distribution  Date, the calendar month of
such Distribution Date.

      Eligible Account: An account that is any of the following:  (i) maintained
with a depository  institution the debt  obligations 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 each Rating Agency, as evidenced in writing,
be maintained such that (as evidenced by an Opinion of Counsel  delivered to the
Trustee and each Rating Agency) the registered  Holders of  Certificates  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  Permitted
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 Custodial  Account,  a trust account or
accounts  maintained in the corporate trust department of  [______________],  or
(iv) in the  case  of the  Certificate  Account,  a trust  account  or  accounts
maintained  in the  corporate  trust  division  of  [______________],  or (v) an
account or accounts of a depository  institution  acceptable  each Rating Agency
(as  evidenced in writing by each Rating  Agency that use of any such account as
the  Custodial  Account or the  Certificate  Account  will not reduce the rating
assigned to any Class of  Certificates  by such Rating Agency below the lower of
the  then-current  rating or the rating assigned to such  Certificates as of the
Closing Date by such Rating Agency.

      Eligible Master Servicing  Compensation:  With respect to any Distribution
Date, the lesser of (a) one-twelfth of [__]% of the Stated Principal  Balance of
the Mortgage Loans

                                       24
<PAGE>

immediately  preceding such  Distribution  Date and (b) the sum of the Servicing
Fee and all income and gain on amounts  held in the  Custodial  Account  and the
Certificate Account and payable to the  Certificateholders  with respect to such
Distribution  Date;  provided that for purposes of this definition the amount of
the Servicing Fee will not be reduced  pursuant to Section 7.02(a) except as may
be required pursuant to the last sentence of such Section.

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

      Event of Default: As defined in Section 7.01.

      [Excess Cash Flow: With respect to any Distribution  Date, an amount equal
to the sum of (A) the excess of (i) the Available  Distribution  Amount for that
Distribution Date over (ii) the sum of (a) the Interest  Distribution Amount for
that  Distribution  Date and (b) the  lesser  of (1) the  aggregate  Certificate
Principal  Balance of Class A  Certificates,  Class M  Certificates  and Class B
Certificates  immediately  prior to such Distribution Date and (2) the Principal
Remittance  Amount for that  Distribution  Date to the extent not applied to pay
interest  on the  Class  A  Certificates,  Class  M  Certificates  and  Class  B
Certificates on such Distribution Date, (B) the Overcollateralization  Reduction
Amount,  if any,  for  that  Distribution  Date  and (C) any Net  Swap  Payments
received by the Trustee under the Swap Agreement for that Distribution Date.]

      Excess  Overcollateralization  Amount:  With  respect to any  Distribution
Date,  the  excess,  if any,  of (a) the  Overcollateralization  Amount  on such
Distribution  Date over (b) the Required  Overcollateralization  Amount for such
Distribution Date.

      Exchange Act: The Securities and Exchange Act of 1934, as amended.

      Exchange Date: As defined in Section 5.02(e)(iii).

      Expense  Fee Rate:  With  respect to any  Mortgage  Loan as of any date of
determination,  the sum of the  applicable  Servicing Fee Rate and the per annum
rate at which the applicable Subservicing Fee accrues.

      Fannie  Mae:  Fannie  Mae,  a  federally  chartered  and  privately  owned
corporation   organized  and  existing  under  the  Federal  National   Mortgage
Association Charter Act, or any successor thereto.

      Fitch: Fitch Ratings, or its successors in interest.

      Fixed Swap Payment:  With respect to any Distribution  Date on or prior to
the Distribution Date in [________] 20[_], an amount equal to the product of (x)
a fixed rate equal to [__]%,  (y) the Swap Agreement  Notional  Balance for that
Distribution  Date and (z) a fraction,  the numerator of which is (a) 19 for the
Distribution  Date in  [________]  20[_]  and (b) 30 for any  Distribution  Date
occurring after the Distribution  Date in [________]  20[_], and the denominator
of which is 360.

      FDIC: Federal Deposit Insurance Corporation or any successor thereto.

                                       25
<PAGE>

      Final  Distribution  Date:  The  Distribution  Date  on  which  the  final
distribution  in respect of the  Certificates  will be made  pursuant to Section
9.01, which Final  Distribution  Date shall in no event be later than the end of
the 90-day liquidation period described in Section 9.02.

      Final Scheduled Distribution Date: [Solely for purposes of the face of the
Certificates,  as  follows:  with  respect to the Class [__]  Certificates,  the
Distribution Date occurring in [________]  20[_];with  respect to the Class [__]
Certificates, Class [__] Certificates and each Class of Class M Certificates and
Class B Certificates,  the Distribution  Date occurring in [________]  20[_]. No
event of default under this Agreement will arise or become  applicable solely by
reason of the failure to retire the entire Certificate  Principal Balance of any
Class of Class A  Certificates,  Class M Certificates or Class B Certificates on
or before its Final Scheduled Distribution Date.]

      Floating Swap Payment:  With respect to any Distribution  Date on or prior
to the Distribution  Date in [________] 20[_], an amount equal to the product of
(x) Swap LIBOR, (y) the Swap Agreement  Notional  Balance for that  Distribution
Date and (z) a fraction,  the  numerator of which is equal to the number of days
in the related  calculation  period as provided  in the Swap  Agreement  and the
denominator of which is 360.

      Foreclosure  Profits:  With  respect to any  Distribution  Date or related
Determination  Date and any Mortgage  Loan,  the excess,  if any, of Liquidation
Proceeds,  Insurance Proceeds and REO Proceeds (net of all amounts  reimbursable
therefrom  pursuant to Section  3.10(a)(ii)) in respect of each Mortgage Loan or
REO Property for which a Cash  Liquidation  or REO  Disposition  occurred in the
related  Prepayment  Period over the sum of the unpaid principal balance of such
Mortgage Loan or REO Property (determined, in the case of an REO Disposition, in
accordance  with Section 3.14) plus accrued and unpaid  interest at the Mortgage
Rate on such unpaid  principal  balance from the Due Date to which  interest was
last paid by the Mortgagor to the first day of the month  following the month in
which such Cash Liquidation or REO Disposition occurred.

      Form 10-K Certification: As defined in Section 4.03(e).

      Freddie Mac: Freddie Mac, a corporate instrumentality of the United States
created and existing  under Title III of the Emergency Home Finance Act of 1970,
as amended, or any successor thereto.

      HUD: The United States Department of Housing and Urban Development.

      Independent:  When used with respect to any specified Person, means such a
Person who (i) is in fact independent of the Depositor,  the Master Servicer and
the Trustee,  or any Affiliate thereof,  (ii) does not have any direct financial
interest or any  material  indirect  financial  interest in the  Depositor,  the
Master  Servicer or the  Trustee or in an  Affiliate  thereof,  and (iii) is not
connected with the Depositor,  the Master Servicer or the Trustee as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions.

      Index:  With respect to each  adjustable-rate  Mortgage Loan and as to any
Adjustment  Date therefor,  the related index as stated in the related  Mortgage
Note.

                                       26
<PAGE>

      Initial  Certificate  Principal  Balance:  With  respect  to each Class of
Certificates  (other than the Class R Certificates),  the Certificate  Principal
Balance of such Class of Certificates as of the Cut-off Date as set forth in the
Preliminary Statement hereto.

      Insurance  Proceeds:  Proceeds  paid  in  respect  of the  Mortgage  Loans
pursuant to any Primary  Insurance Policy or any other related  insurance policy
covering a  Mortgage  Loan,  to the  extent  such  proceeds  are  payable to the
mortgagee  under the  Mortgage,  any  Subservicer,  the Master  Servicer  or the
Trustee and are not applied to the restoration of the related Mortgaged Property
or released to the Mortgagor in accordance  with the procedures  that the Master
Servicer would follow in servicing mortgage loans held for its own account.

      [Interest  Accrual  Period:  With  respect to the Class [_]  Certificates,
Class [_]  Certificates,  Class [_]  Certificates and Class [_] Certificates (i)
with respect to the Distribution  Date in [_______] 20[_], the period commencing
the  Closing  Date and  ending on the day  preceding  the  Distribution  Date in
[_______]  20[_],  and (ii) with  respect  to any  Distribution  Date  after the
Distribution  Date in [_______] 20[_], the period commencing on the Distribution
Date in the month  immediately  preceding  the month in which such  Distribution
Date occurs and ending on the day preceding such Distribution Date.

      Interest  Distribution  Amount:  For any  Distribution  Date,  the amounts
payable pursuant to Section 4.02(c)[(i)-(iii)].

      Interim Certification: As defined in Section 2.02.

      Late Collections:  With respect to any Mortgage Loan, all amounts received
during any Due  Period,  whether as late  payments  of  Monthly  Payments  or as
Insurance  Proceeds,  Liquidation  Proceeds or otherwise,  which  represent late
payments or  collections  of Monthly  Payments due but delinquent for a previous
Due Period and not previously recovered.

      LIBOR  Business Day: Any day other than (i) a Saturday or Sunday or (ii) a
day on which banking institutions in London,  England are required or authorized
to by law to be closed.

      LIBOR  Certificates:  [The Class A Certificates,  Class M Certificates and
Class B Certificates.]

      LIBOR Rate Adjustment  Date: With respect to each  Distribution  Date, the
second LIBOR Business Day immediately  preceding the commencement of the related
Interest Accrual Period.

      Liquidation Proceeds:  Amounts (other than Insurance Proceeds) received by
the  Master  Servicer  in  connection  with the  taking of an  entire  Mortgaged
Property  by  exercise  of the power of  eminent  domain or  condemnation  or in
connection with the liquidation of a defaulted  Mortgage Loan through  trustee's
sale,  foreclosure  sale or  otherwise,  other than REO Proceeds and  Subsequent
Recoveries.

      Loan-to-Value  Ratio:  As  of  any  date,  the  fraction,  expressed  as a
percentage,  the  numerator  of which is the  current  principal  balance of the
related Mortgage Loan at the date of

                                       27
<PAGE>

determination and the denominator of which is the Appraised Value of the related
Mortgaged Property.

      Margin: The [Class A-1 Margin,  Class A-2 Margin,  Class A-3 Margin, Class
M-1 Margin,  Class M-2 Margin,  Class M-3  Margin,  Class M-4 Margin,  Class M-5
Margin, Class M-6 Margin, Class M-7 Margin, Class M-8 Margin and Class B Margin,
as applicable.]

      [Marker  Rate:  With  respect  to the Class SB  Certificates  or REMIC III
Regular  Interest SB-IO and any  Distribution  Date, in relation to the REMIC II
Regular  Interests  [LT1,  LT2, LT3, and LT4], a per annum rate equal to two (2)
times the weighted average of the Uncertificated REMIC II Pass-Through Rates for
REMIC II Regular Interest [LT2] and REMIC II Regular Interest [LT3].

      Master Servicer: As defined in the preamble hereto.

      Maturity  Date:  With  respect  to each Class of  Certificates  of regular
interest or Uncertificated  Regular Interest issued by any REMIC hereunder,  the
latest    possible    maturity   date,    solely   for   purposes   of   Section
1.860G-1(a)(4)(iii)  of the  Treasury  Regulations,  by  which  the  Certificate
Principal  Balance of each such  Class of  Certificates  representing  a regular
interest  in the Trust Fund  would be  reduced to zero,  which is, for each such
regular interest,  [_________],  20[_], which is the Distribution Date occurring
in the month following the last scheduled monthly payment of the Mortgage Loans.

      Maximum  Mortgage Rate: As to any  adjustable-rate  Mortgage Loan, the per
annum rate  indicated in Exhibit F hereto as the "NOTE  CEILING,"  which rate is
the maximum  interest  rate that may be  applicable to such Mortgage Loan at any
time during the life of such Mortgage Loan.

      Maximum Net Mortgage Rate: As to any adjustable-rate Mortgage Loan and any
date of determination,  the Maximum Mortgage Rate minus the sum of the per annum
rate at which the  Subservicing  Fee accrues and the  Servicing  Fee Rate.  With
respect to any fixed-rate  Mortgage Loan and any date of determination,  the Net
Mortgage Rate.

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

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

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

      Minimum  Mortgage  Rate: As to any  adjustable-rate  Mortgage  Loan, a per
annum  rate  equal  to the  greater  of (i) the  Note  Margin  and (ii) the rate
indicated in Exhibit F hereto as the "NOTE  FLOOR," which rate may be applicable
to such  Mortgage  Loan at any  time  during  the  life of such  adjustable-rate
Mortgage Loan.

                                       28
<PAGE>

      Modified  Mortgage  Loan: Any Mortgage Loan that has been the subject of a
Servicing Modification.

      Modified Net Mortgage Rate:  With respect to any Mortgage Loan that is the
subject of a Servicing  Modification,  the Net Mortgage  Rate minus the rate per
annum by which the Mortgage Rate on such Mortgage Loan was reduced.

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

      Monthly  Payment:  With respect to any Mortgage  Loan  (including  any REO
Property)  and the Due Date in any Due  Period,  the  payment of  principal  and
interest due thereon in accordance  with the  amortization  schedule at the time
applicable thereto (after adjustment, if any, for Curtailments 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 and before any Servicing Modification that constitutes a reduction of the
interest rate on such Mortgage Loan).

      Moody's: Moody's Investors Service, Inc., or its successor in interest.

      Mortgage:  With respect to each Mortgage Note related to a Mortgage  Loan,
the mortgage,  deed of trust or other comparable  instrument creating a first or
junior lien on an estate in fee simple or  leasehold  interest in real  property
securing a Mortgage Note.

      Mortgage File: The mortgage documents listed in Section 2.01 pertaining to
a particular Mortgage Loan and any additional  documents required to be added to
the Mortgage File pursuant to this Agreement.

      Mortgage Loans: Such of the mortgage loans transferred and assigned to the
Trustee  pursuant to Section  2.01 as from time to time are held or deemed to be
held as a part of the Trust Fund,  the Mortgage  Loans  originally so held being
identified in the initial  Mortgage Loan Schedule  attached hereto as Exhibit F,
and Qualified Substitute Mortgage Loans held or deemed held as part of the Trust
Fund including,  without  limitation,  each related Mortgage Note,  Mortgage and
Mortgage File and all rights appertaining thereto.

      Mortgage Loan Schedule: The lists of the Mortgage Loans attached hereto as
Exhibit F (as  amended  from time to time to reflect the  addition of  Qualified
Substitute  Mortgage  Loans),  which  lists  shall set  forth at a  minimum  the
following information as to each Mortgage Loan:

      (i)   the Mortgage Loan identifying number ("RFC LOAN #");

      (ii)  the state, city and zip code of the Mortgaged Property;

      (iii) the maturity of the Mortgage Note ("MATURITY DATE," or "MATURITY DT"
            for Mortgage  Loans and if such Mortgage Loan is a Balloon Loan, the
            amortization term thereof;

                                       29
<PAGE>

      (iv)  (for the  adjustable-rate  Mortgage  Loans,  the Mortgage Rate as of
            origination ("ORIG RATE");

      (v)   the Mortgage Rate as of the Cut-off Date ("CURR RATE")

      (vi)  the Net Mortgage Rate as of the Cut-off Date ("CURR NET");

      (vii) the scheduled monthly payment of principal,  if any, and interest as
            of the Cut-off Date ("ORIGINAL P & I");

      (viii) the Cut-off Date Principal Balance ("PRINCIPAL BAL");

      (ix)  the Loan-to-Value Ratio at origination ("LTV");

      (x)   a code "T," "BT" or "CT" under the column "LN  FEATURE,"  indicating
            that the Mortgage Loan is secured by a second or vacation  residence
            (the absence of any such code means the Mortgage  Loan is secured by
            a primary residence); and

      (xi)  a code  "N"  under  the  column  "OCCP  CODE,"  indicating  that the
            Mortgage  Loan is secured by a  non-owner  occupied  residence  (the
            absence  of any such code means the  Mortgage  Loan is secured by an
            owner occupied residence).

      (xii) for the  adjustable-rate  Mortgage Loans,  the Maximum Mortgage Rate
            ("NOTE CEILING");

      (xiii) for the  adjustable-rate  Mortgage Loans,  the maximum Net Mortgage
            Rate ("NET CEILING");

      (xiv) for the  adjustable-rate  Mortgage  Loans,  the Note  Margin  ("NOTE
            MARGIN");

      (xv)  for the  adjustable-rate  Mortgage Loans,  the first Adjustment Date
            after the Cut-off Date ("NXT INT CHG DT");

      (xvi) for the adjustable-rate  Mortgage Loans, the Periodic Cap ("PERIODIC
            DECR" or "PERIODIC INCR");

      Such schedule may consist of multiple reports that  collectively set forth
all of the information required.

      Mortgage  Note:  The  originally   executed  note  or  other  evidence  of
indebtedness  evidencing the  indebtedness of a Mortgagor under a Mortgage Loan,
together with any modification thereto.

      Mortgage Rate:  With respect to any Mortgage Loan, the interest rate borne
by the related Mortgage Note, or any modification thereto other than a Servicing
Modification.  The  Mortgage  Rate on the  adjustable-rate  Mortgage  Loans will
adjust on each Adjustment Date to equal the sum (rounded to the nearest multiple
of one eighth of one percent  (0.125%) or up to the  nearest  one-eighth  of one
percent,  which are indicated by a "U" on the Mortgage Loan Schedule,  except

                                       30
<PAGE>

in the case of the  adjustable-rate  Mortgage  Loans  indicated by an "X" on the
Mortgage Loan Schedule  under the heading "NOTE  METHOD"),  of the related Index
plus the Note  Margin,  in each case  subject to the  applicable  Periodic  Cap,
Maximum Mortgage Rate and Minimum Mortgage Rate.

      Mortgaged Property: The underlying real property securing a Mortgage Loan.

      Mortgagor: The obligor on a Mortgage Note.

      Net Mortgage  Rate:  With  respect to any Mortgage  Loan as of any date of
determination,  a per annum rate equal to the  Adjusted  Mortgage  Rate for such
Mortgage Loan as of such date minus the Servicing Fee Rate.

      Net Swap Payment:  With respect to each Distribution Date, the net payment
required to be made  pursuant to the terms of the Swap  Agreement  by either the
Swap  Counterparty  or the  Trustee,  on behalf of the Trust,  which net payment
shall not take into account any Swap Termination Payment.

      Net WAC Cap Rate: [With respect to any  Distribution  Date and the Class A
Certificates,  Class M Certificates  and Class B Certificates,  a per annum rate
(which  will not be less than zero)  equal to (i) the  product  of (a)  weighted
average of the Net Mortgage Rates (or, if applicable,  the Modified Net Mortgage
Rates) on the  Mortgage  Loans  using the Net  Mortgage  Rates in effect for the
Monthly  Payments  due on such  Mortgage  Loans  during the  related Due Period,
weighted on the basis of the respective  Stated  Principal  Balances thereof for
such Distribution  Date, (b) a fraction  expressed as a percentage the numerator
of which is 30 and the  denominator of which is the actual number of days in the
related  Interest  Accrual  Period,  minus  (ii) the  product  of (a) a fraction
expressed as a percentage,  the numerator of which is the amount of any Net Swap
Payments  or Swap  Termination  Payment not due to a Swap  Counterparty  Trigger
Event  due to the  Swap  Counterparty  as of  such  Distribution  Date  and  the
denominator of which is the aggregate Stated  Principal  Balance of the Mortgage
Loans as of such Distribution Date and (b) a fraction  expressed as a percentage
the numerator of which is 360 and the  denominator of which is the actual number
of days in the related Interest Accrual Period.]

      Non-Primary  Residence Loans: [The Mortgage Loans designated as secured by
second or vacation  residences,  or by  non-owner  occupied  residences,  on the
Mortgage  Loan  Schedule.]  Non-United  States  Person:  Any Person other than a
United States Person.

      Nonrecoverable Advance: Any Advance previously made or proposed to be made
by the Master  Servicer or Subservicer in respect of a Mortgage Loan (other than
a Deleted  Mortgage  Loan)  which,  in the good  faith  judgment  of the  Master
Servicer,  will not,  or,  in the case of a  proposed  Advance,  would  not,  be
ultimately  recoverable  by the Master  Servicer from related Late  Collections,
Insurance Proceeds, Liquidation Proceeds or REO Proceeds. To the extent that any
Mortgagor  is not  obligated  under the  related  Mortgage  documents  to pay or
reimburse  any  portion of any  Servicing  Advances  that are  outstanding  with
respect  to the  related  Mortgage  Loan as a result of a  modification  of such
Mortgage Loan by the Master  Servicer,  which forgives  amounts which the Master
Servicer  or  Subservicer  had  previously  advanced,  and the  Master  Servicer
determines that no other source of payment or reimbursement for such advances is

                                       31
<PAGE>

available to it, such Servicing  Advances  shall be deemed to be  Nonrecoverable
Advances.  The  determination  by  the  Master  Servicer  that  it  has  made  a
Nonrecoverable  Advance shall be evidenced by an Officers' Certificate delivered
to the  Depositor,  the Trustee  and the Master  Servicer.  Notwithstanding  the
above,  the  Trustee  shall be entitled  to rely upon any  determination  by the
Master Servicer that any Advance previously made is a Nonrecoverable  Advance or
that any proposed Advance, if made, would constitute a Nonrecoverable Advance.

      Nonsubserviced  Mortgage  Loan:  Any  Mortgage  Loan that,  at the time of
reference thereto, is not subject to a Subservicing Agreement.

      Note Margin: With respect to each adjustable-rate Mortgage Loan, the fixed
percentage set forth in the related  Mortgage Note and indicated on the Mortgage
Loan Schedule as the "NOTE  MARGIN,"  which  percentage is added to the Index on
each  Adjustment  Date to determine  (subject to rounding in accordance with the
related  Mortgage  Note,  the Periodic  Cap, the Maximum  Mortgage  Rate and the
Minimum  Mortgage  Rate) the interest  rate to be borne by such  adjustable-rate
Mortgage Loan until the next Adjustment Date.

      Officers' Certificate:  A certificate signed by the Chairman of the Board,
the President, a Vice President,  Assistant Vice President,  Director,  Managing
Director, the Treasurer,  the Secretary,  an Assistant Treasurer or an Assistant
Secretary  of the  Depositor  or the  Master  Servicer,  as the case may be, and
delivered to the Trustee, as required by this Agreement.

      One-Month  LIBOR:  With respect to any  Distribution  Date, the arithmetic
mean of the London interbank offered rate quotations for one-month United States
dollar  deposits,  determined on the preceding LIBOR Rate Adjustment Date as set
forth in Section 1.02 hereof.

      Opinion of Counsel: A written opinion of counsel acceptable to the Trustee
and the Master  Servicer and which  counsel may be counsel for the  Depositor or
the Master Servicer, provided that any opinion of counsel (i) referred to in the
definition of "Disqualified  Organization" or (ii) relating to the qualification
of any REMIC hereunder as a REMIC or compliance with the REMIC  Provisions must,
unless otherwise specified, be an opinion of Independent counsel.

      Optional  Termination  Date: Any  Distribution  Date on or after which the
Stated  Principal  Balance (after giving effect to  distributions  to be made on
such  Distribution  Date) of the  Mortgage  Loans is less than  [10.00]%  of the
Cut-off Date Balance.

      Outstanding Mortgage Loan: With respect to the Due Date in any Due Period,
a  Mortgage  Loan  (including  an REO  Property)  that was not the  subject of a
Principal  Prepayment in Full, Cash  Liquidation or REO Disposition and that was
not  purchased,  deleted or  substituted  for prior to such Due Date pursuant to
Section 2.02, 2.03, 2.04 or 4.07.

      Overcollateralization  Amount:  With respect to any Distribution Date, the
excess,  if any, of (a) the aggregate Stated  Principal  Balance of the Mortgage
Loans  before  giving  effect to  distributions  of principal to be made on such
Distribution  Date over (b) the aggregate  Certificate  Principal Balance of the
[Class A, Class M and Class B Certificates] immediately prior to such date.

                                       32
<PAGE>

      Overcollateralization Floor: With respect to the Mortgage Loans, an amount
equal to the product of (a) [0.50]% and (b) the Cut-off Date Balance.

      Overcollateralization  Increase  Amount:  With respect to any Distribution
Date,  the lesser of (a)  Excess  Cash Flow for that  Distribution  Date (to the
extent not used to cover the amounts  described  in clauses  (iv) and (v) of the
definition of Principal  Distribution  Amount as of such Distribution Date), and
(b) the  excess  of (1)  the  Required  Overcollateralization  Amount  for  such
Distribution   Date  over  (2)  the   Overcollateralization   Amount   for  such
Distribution Date.

      Overcollateralization  Reduction Amount:  With respect to any Distribution
Date,  to the extent the Excess  Overcollateralization  Amount is,  after taking
into  account  all other  distributions  to be made on such  Distribution  Date,
greater than zero, the Overcollateralization  Reduction Amount shall be equal to
the lesser of (i) the Excess  Overcollateralization Amount for that Distribution
Date and (ii) the Principal Remittance Amount for such Distribution Date.

      Ownership  Interest:  With respect to any  Certificate,  any  ownership or
security  interest  in  such   Certificate,   including  any  interest  in  such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial, as owner or as pledgee.

      Pass-Through  Rate:  [With  respect  to each Class of Class A, Class M and
Class B Certificates and any Distribution Date, the least of (i) One-Month LIBOR
plus the related  Margin,  (ii) the related Net WAC Cap Rate and (iii)  [11.00]%
per annum.]

      [With respect to the Class SB Certificates  or REMIC III Regular  Interest
SB-IO and any  Distribution  Date,  a per  annum  rate  equal to the  percentage
equivalent  of a  fraction,  the  numerator  of which is the sum of the  amounts
calculated  pursuant to clauses (i) through (iii) below,  and the denominator of
which is the aggregate principal balance of the REMIC II Regular Interests.  For
purposes of calculating the  Pass-Through  Rate for the Class SB Certificates or
REMIC III  Regular  Interest  SB-IO,  the  numerator  is equal to the sum of the
following components:

      (i)   the  Uncertificated  Pass-Through Rate for REMIC II Regular Interest
            LT1 minus the  related  Marker  Rate,  applied to a notional  amount
            equal to the  Uncertificated  Principal  Balance of REMIC II Regular
            Interest LT1;

      (ii)  the  Uncertificated  Pass-Through Rate for REMIC II Regular Interest
            LT2 minus the  related  Marker  Rate,  applied to a notional  amount
            equal to the  Uncertificated  Principal  Balance of REMIC II Regular
            Interest LT2; and

      (iii) the  Uncertificated  Pass-Through Rate for REMIC II Regular Interest
            LT4 minus  twice the  related  Marker  Rate,  applied  to a notional
            amount  equal to the  Uncertificated  Principal  Balance of REMIC II
            Regular Interest LT4.]

      Paying Agent:  [________________]  or any successor Paying Agent appointed
by the Trustee.

      Percentage  Interest:  With respect to any [Class A  Certificate,  Class M
Certificate or Class B Certificate,] the undivided percentage ownership interest
in the related Class evidenced

                                       33
<PAGE>

by such Certificate,  which percentage  ownership interest shall be equal to the
Initial  Certificate  Principal Balance thereof divided by the aggregate Initial
Certificate  Principal Balance of all of the Certificates of the same Class. The
Percentage  Interest  with  respect  to a  [Class  SB  Certificate  or  Class  R
Certificate] shall be stated on the face thereof.

      Periodic  Cap: With respect to each  adjustable-rate  Mortgage  Loan,  the
periodic  rate cap that  limits the  increase  or the  decrease  of the  related
Mortgage  Rate on any  Adjustment  Date  pursuant  to the  terms of the  related
Mortgage Note.

      Permitted Investments: One or more of the following:

      (i)   obligations  of or  guaranteed  as to principal  and interest by the
            United  States or any agency or  instrumentality  thereof  when such
            obligations  are  backed by the full  faith and credit of the United
            States;

      (ii)  repurchase   agreements  on  obligations  specified  in  clause  (i)
            maturing  not more  than  one  month  from  the date of  acquisition
            thereof,  provided  that  the  unsecured  obligations  of the  party
            agreeing to  repurchase  such  obligations  are at the time rated by
            each Rating Agency in its highest short-term rating available;

      (iii) federal  funds,  certificates  of  deposit,  demand  deposits,  time
            deposits and bankers' acceptances (which shall each have an original
            maturity  of not more  than 90 days  and,  in the  case of  bankers'
            acceptances,  shall in no event have an  original  maturity  of more
            than  365  days  or a  remaining  maturity  of more  than  30  days)
            denominated  in  United  States  dollars  of  any  U.S.   depository
            institution  or trust  company  incorporated  under  the laws of the
            United  States or any state  thereof or of any domestic  branch of a
            foreign depository  institution or trust company;  provided that the
            debt obligations of such depository  institution or trust company at
            the date of  acquisition  thereof  have  been  rated by each  Rating
            Agency in its highest  short-term  rating  available;  and, provided
            further   that,  if  the  original   maturity  of  such   short-term
            obligations of a domestic branch of a foreign depository institution
            or trust company shall exceed 30 days, the short-term rating of such
            institution  shall  be A-1+ in the  case of  Standard  &  Poor's  if
            Standard & Poor's is a Rating Agency;

      (iv)  commercial paper and demand notes (having original maturities of not
            more than 365 days) of any corporation  incorporated  under the laws
            of the  United  States  or any  state  thereof  which on the date of
            acquisition  has been  rated by each  Rating  Agency in its  highest
            short term rating available; provided that such commercial paper and
            demand  notes  shall have a  remaining  maturity of not more than 30
            days;

      (v)   a money  market  fund or a qualified  investment  fund rated by each
            Rating Agency in its highest  long-term  rating available (which may
            be managed by the Trustee or one of its Affiliates); and

      (vi)  other  obligations or securities  that are acceptable to each Rating
            Agency as a Permitted  Investment  hereunder and will not reduce the
            rating  assigned to any

                                       34
<PAGE>

            Class of Certificates  by such Rating Agency below the  then-current
            rating  assigned  to such  Certificates  by such Rating  Agency,  as
            evidenced in writing;

provided,  however,  that no  instrument  shall be a Permitted  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.  References  herein to the highest  rating  available  on unsecured
long-term  debt shall  mean AAA in the case of  Standard & Poor's and Aaa in the
case of Moody's,  and for purposes of this Agreement,  any references  herein to
the highest rating  available on unsecured  commercial paper and short-term debt
obligations  shall mean the following:  A-1 in the case of Standard & Poor's and
P-1 in the case of Moody's;  provided,  however,  that any Permitted  Investment
that is a short-term debt obligation rated A-1 by Standard & Poor's must satisfy
the  following  additional  conditions:  (i) the  total  amount of debt from A-1
issuers  must be limited to the  investment  of monthly  principal  and interest
payments  (assuming fully amortizing  collateral);  (ii) the total amount of A-1
investments  must  not  represent  more  than 20% of the  aggregate  outstanding
Certificate  Principal  Balance of the Certificates and each investment must not
mature  beyond 30 days;  (iii)  the terms of the debt must have a  predetermined
fixed dollar amount of principal  due at maturity that cannot vary;  and (iv) if
the investments may be liquidated prior to their maturity or are being relied on
to meet a certain yield,  interest must be tied to a single  interest rate index
plus a single  fixed  spread  (if any) and must move  proportionately  with that
index.  Any Permitted  Investment  may be purchased by or through the Trustee or
its Affiliates.

      Permitted Transferee: Any Transferee of a Class R Certificate,  other than
a Disqualified Organization or Non-United States Person.

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

      Prepayment Assumption: [With respect to the [Class A, Class M and Class B]
Certificates,  the prepayment  assumption to be used for determining the accrual
of original issue discount and premium and market discount on such  Certificates
for  federal  income  tax  purposes,  which (a) with  respect  to the fixed rate
Mortgage Loans,  assumes a constant  prepayment rate of 4% per annum of the then
outstanding  principal  balance of the Mortgage  Loans in the first month of the
life of the fixed-rate Mortgage Loans, and an additional approximate 1.9091% per
annum in each month  thereafter  until the twelfth month,  and then beginning in
the twelfth month and in each month thereafter during the life of the fixed-rate
Mortgage Loans, a constant prepayment rate of 25.0% per annum each month and (b)
with  respect  to  the  adjustable-rate   Mortgage  Loans,  assumes  a  constant
prepayment rate of 4% per annum of the then outstanding principal balance of the
adjustable-rate   Mortgage  Loans  in  the  first  month  of  the  life  of  the
adjustable-rate  Mortgage Loans, and an additional approximate 2.8182% per annum
in each month  thereafter  until the twelfth  month,  and then  beginning in the
twelfth   month  and  in  each   month   thereafter   during  the  life  of  the
adjustable-rate Mortgage Loans, a constant prepayment rate of 35% per annum each
month.]

                                       35
<PAGE>

      Prepayment Interest  Shortfall:  With respect to any Distribution 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 one month's interest at the
related  Net  Mortgage  Rate (or  Modified  Net  Mortgage  Rate in the case of a
Modified  Mortgage Loan) on the Stated  Principal  Balance of such Mortgage Loan
over the amount of  interest  (adjusted  to the related  Net  Mortgage  Rate (or
Modified Net Mortgage Rate in the case of a Modified Mortgage Loan)) paid by the
Mortgagor for such Prepayment Period to the date of such Principal Prepayment in
Full or (b) a Curtailment  during the prior calendar  month,  an amount equal to
one month's  interest at the related Net Mortgage Rate (or Modified Net Mortgage
Rate in the case of a Modified Mortgage Loan) on the amount of such Curtailment.

      Prepayment  Period:  With respect to any  Distribution  Date, the calendar
month preceding the month of distribution.

      Primary Insurance Policy:  With respect to any Mortgage Loan, each primary
policy of mortgage  guaranty  insurance or  replacement  policy  therefor.  Each
Mortgage  Loan with a Primary  Insurance  Policy is identified on Exhibit F with
the exception of either code "23" or "96" under the column "MI CO CODE."

      Principal  Distribution Amount: With respect to any Distribution Date, the
lesser of (a) the excess of (x) the sum of (A) the Available Distribution Amount
and (B) with  respect to clauses  (b)(v) and (vi) below,  any Net Swap  Payments
received  by the  Trustee  under  the  Swap  Agreement  over  (y)  the  Interest
Distribution Amount and (b) the sum of:

      (i)   the principal  portion of each Monthly Payment  received or Advanced
            with respect to the related Due Period on each Outstanding  Mortgage
            Loan;

      (ii)  the Stated Principal Balance of any Mortgage Loan repurchased during
            the related Prepayment Period (or deemed to have been so repurchased
            in accordance with Section 3.07(b))  pursuant to Section 2.02, 2.03,
            2.04 or 4.07  and  the  amount  of any  shortfall  deposited  in the
            Custodial  Account in connection with the  substitution of a Deleted
            Mortgage  Loan  pursuant to Section  2.03 or 2.04 during the related
            Prepayment Period;

      (iii) the principal  portion of all other unscheduled  collections,  other
            than  Subsequent  Recoveries,  on  the  Mortgage  Loans  (including,
            without  limitation,  Principal  Prepayments in Full,  Curtailments,
            Insurance Proceeds,  Liquidation Proceeds and REO Proceeds) received
            during  the  related  Prepayment  Period  (or deemed to have been so
            received) to the extent applied by the Master Servicer as recoveries
            of principal of the Mortgage Loans pursuant to Section 3.14;

      (iv)  the lesser of (1) Subsequent  Recoveries for such  Distribution Date
            and (2) the principal  portion of any Realized  Losses  allocated to
            any Class of Certificates on a prior Distribution Date and remaining
            unpaid;

      (v)   the lesser of (1) the Excess  Cash Flow for such  Distribution  Date
            (to the extent not used  pursuant to clause (iv) of this  definition
            on such  Distribution  Date) and

                                       36
<PAGE>

            (2) the principal portion of any Realized Losses incurred (or deemed
            to have been  incurred) on any Mortgage  Loans in the calendar month
            preceding such Distribution Date; and

      (vi)  the lesser of (1) the Excess  Cash Flow for that  Distribution  Date
            (to the extent  not used  pursuant  to clauses  (iv) and (v) of this
            definition    on    such    Distribution    Date)    and   (2)   the
            Overcollateralization Increase Amount for such Distribution Date;

      minus

      (vii) (A) the  amount of any  Overcollateralization  Reduction  Amount for
            such  Distribution  Date and (B) the  amount  of any  Capitalization
            Reimbursement Amount for such Distribution Date; and

      (ix)  any Net Swap Payments or Swap Termination  Payment not due to a Swap
            Counterparty  Trigger  Event  due to the  Swap  Counterparty  to the
            extent not previously paid from interest or principal collections on
            the Mortgage Loans.

      Principal  Prepayment:  Any payment of  principal  or other  recovery on a
Mortgage Loan,  including a recovery that takes the form of Liquidation Proceeds
or Insurance  Proceeds,  which is received in advance of its  scheduled Due Date
and is not  accompanied  by an  amount  as to  interest  representing  scheduled
interest  on such  payment  due on any  date or dates  in any  month  or  months
subsequent to the month of prepayment.

      Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

      Principal  Remittance  Amount:  With respect to any Distribution Date, all
amounts described in clauses (b)(i) through (iii) of the definition of Principal
Distribution Amount for that Distribution Date.

      Program  Guide:   The  Residential   Funding  Seller  Guide  for  mortgage
collateral  sellers that participate in Residential  Funding's standard mortgage
programs,  and Residential  Funding's Servicing Guide and any other subservicing
arrangements which Residential Funding has arranged to accommodate the servicing
of the Mortgage Loans.

      Purchase  Price:  With  respect  to any  Mortgage  Loan (or REO  Property)
required to be or  otherwise  purchased  on any date  pursuant to Section  2.02,
2.03,  2.04 or 4.07, an amount equal to the sum of (i) if such Mortgage Loan (or
REO Property) is being purchased  pursuant to Sections 2.02,  2.03, 2.04 or 4.07
of this  Agreement,  100% of the  Stated  Principal  Balance  thereof  plus  the
principal portion of any related  unreimbursed  Advances and (ii) unpaid accrued
interest at the Adjusted  Mortgage  Rate (or Modified Net Mortgage Rate plus the
rate  per  annum at  which  the  Servicing  Fee is  calculated  in the case of a
Modified  Mortgage  Loan) (or at the Net Mortgage Rate (or Modified Net Mortgage
Rate in the case of a Modified  Mortgage Loan)) on the Stated Principal  Balance
thereof to the first day of the month  following  the month of purchase from the
Due Date to which interest was last paid by the Mortgagor.

                                       37
<PAGE>

      Qualified  Substitute  Mortgage  Loan:  A  Mortgage  Loan  substituted  by
Residential  Funding or the Depositor for a Deleted Mortgage Loan which must, on
the  date  of  such  substitution,  as  confirmed  in an  Officers'  Certificate
delivered to the 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
            Stated Principal Balance of the Deleted Mortgage Loan (the amount of
            any  shortfall  to be  deposited  by  Residential  Funding,  in  the
            Custodial Account in the month of substitution);

      (ii)  have a Mortgage  Rate and a Net Mortgage  Rate no lower than and not
            more  than 1% per  annum  higher  than  the  Mortgage  Rate  and Net
            Mortgage Rate, respectively,  of the Deleted Mortgage Loan as of the
            date of substitution;

      (iii) have a  Loan-to-Value  Ratio at the time of  substitution  no higher
            than that of the Deleted Mortgage Loan at the time of substitution;

      (iv)  have a Note Margin not less than that of the Deleted Mortgage Loan;

      (v)   have a  Periodic  Rate  Cap  that is  equal  to that of the  Deleted
            Mortgage Loan;

      (vi)  have a next  Adjustment  Date no  later  than  that  of the  Deleted
            Mortgage Loan;

      (vii) 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

      (viii) comply with each  representation and warranty set forth in Sections
            2.03 and 2.04 hereof and Section 4 of the Assignment Agreement.

      Rating  Agency:  [Each of Fitch,  Standard & Poor's and  Moody's.]  If any
agency or a successor is no longer in existence,  "Rating  Agency" shall be such
statistical credit rating agency, or other comparable Person,  designated by the
Depositor,  notice of which  designation  shall be given to the  Trustee and the
Master Servicer.

      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 Stated  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 Certificateholders up
to the last day of the month in which the Cash  Liquidation (or REO Disposition)
occurred on the Stated 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 Master Servicer or any Subservicer
with respect to related  Advances,  Servicing  Advances or other

                                       38
<PAGE>

expenses  as to  which  the  Master  Servicer  or  Subservicer  is  entitled  to
reimbursement  thereunder but which have not been  previously  reimbursed.  With
respect to each Mortgage Loan which is the subject of a Servicing  Modification,
(a) (1) the amount by which the  interest  portion  of a Monthly  Payment or the
principal  balance of such Mortgage Loan was reduced or (2) the sum of any other
amounts  owing under the Mortgage  Loan that were  forgiven and that  constitute
Servicing   Advances  that  are   reimbursable  to  the  Master  Servicer  or  a
Subservicer,  and (b) any such amount with respect to a Monthly Payment that was
or would have been due in the month  immediately  following the month in which a
Principal  Prepayment or the Purchase Price of such Mortgage Loan is received or
is deemed to have been  received.  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.

      Notwithstanding  the  above,  neither  a  Deficient  Valuation  nor a Debt
Service  Reduction  shall be deemed a  Realized  Loss  hereunder  so long as the
Master  Servicer has notified the Trustee in writing that the Master Servicer is
diligently  pursuing  any  remedies  that  may  exist  in  connection  with  the
representations  and  warranties  made  regarding the related  Mortgage Loan and
either (A) the related  Mortgage  Loan is not in default with regard to payments
due  thereunder or (B)  delinquent  payments of principal and interest under the
related  Mortgage  Loan  and  any  premiums  on any  applicable  primary  hazard
insurance  policy and any related  escrow  payments in respect of such  Mortgage
Loan  are  being  advanced  on a  current  basis  by the  Master  Servicer  or a
Subservicer, in either case without giving effect to any Debt Service Reduction.

      [Realized Losses allocated to the Class SB Certificates shall be allocated
first to the REMIC III Regular  Interest  SB-IO in  reduction of the accrued but
unpaid  interest  thereon until such accrued and unpaid interest shall have been
reduced to zero and then to the REMIC III Regular Interest SB-PO in reduction of
the Principal Balance thereof.]

      To the extent the Master  Servicer  receives  Subsequent  Recoveries  with
respect to any Mortgage  Loan,  the amount of the Realized  Loss with respect to
that Mortgage Loan will be reduced to the extent such  recoveries are applied to
reduce the  Certificate  Principal  Balance of any Class of  Certificates on any
Distribution Date.

      Record  Date:  With  respect  to  [the  Class  A  Certificates,   Class  M
Certificates and Class B Certificates] and each Distribution  Date, the close of
business on the Business Day immediately  preceding such Distribution Date. With
respect to [the Class SB and Class R Certificates,]  and each Distribution Date,
the close of business on the last  Business Day of the month next  preceding the
month in which the related  Distribution  Date  occurs or,  with  respect to the
first Distribution Date, the Closing Date.

      Reference Bank Rate: As defined in Section 1.02.

      Regular  Certificates:  [The Class A  Certificates,  Class M Certificates,
Class B Certificates and Class SB Certificates.]

                                       39
<PAGE>

      Regular  Interest:  Any one of the REMIC  regular  interests  in the Trust
Fund.

      Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended from time to time, and
subject to such  clarification  and  interpretation as have been provided by the
Commission in the adopting  release  (Asset-Backed  Securities,  Securities  Act
Release No.  33-8518,  70 Fed. Reg.  1,506,  1,531  (January 7, 2005)) or by the
staff of the  Commission,  or as may be provided by the  Commission or its staff
from time to time.

      Relief Act: The  Servicemembers  Civil Relief Act,  formerly  known as the
Soldiers' and Sailors' Civil Relief Act of 1940.

      Relief Act Shortfalls: Interest shortfalls on the Mortgage Loans resulting
from the Relief Act or similar legislation or regulations.

      REMIC: A "real estate mortgage  investment  conduit" within the meaning of
Section 860D of the Code.  As used herein,  the term "REMIC" shall mean REMIC I,
REMIC II or REMIC III.

      REMIC  Administrator:  Residential  Funding  Company,  LLC. If Residential
Funding Company, LLC is found by a court of competent  jurisdiction to no longer
be able to fulfill its obligations as REMIC  Administrator  under this Agreement
the Master Servicer or Trustee acting as successor Master Servicer shall appoint
a  successor   REMIC   Administrator,   subject  to   assumption  of  the  REMIC
Administrator obligations under this Agreement.

      REMIC Net WAC Rate: For any  Distribution  Date, a per annum rate equal to
the  product of (i) the  weighted  average  of the Net  Mortgage  Rates (or,  if
applicable, the Modified Net Mortgage Rates) on the Mortgage Loans using the Net
Mortgage  Rates in effect for the Monthly  Payments due on such  Mortgage  Loans
during the related Due Period,  weighted on the basis of the  respective  Stated
Principal  Balances thereof for such Distribution Date and (ii) a fraction equal
to 30 divided  by the  actual  number of days in the  related  Interest  Accrual
Period.   The  foregoing   rate  is  equal  to  the  weighted   average  of  the
Uncertificated  REMIC I  Pass-Through  Rates with respect to the REMIC I Regular
Interests,  weighted in each case by their respective  Uncertificated  Principal
Balances.

      [REMIC I: The  segregated  pool of assets subject  hereto,  constituting a
portion of the primary trust created  hereby and to be  administered  hereunder,
with respect to which a separate  REMIC  election is to be made,  consisting of:
(i) the Mortgage Loans and the related Mortgage Files;  (ii) all payments on and
collections  in respect of the Mortgage  Loans due after the Cut-off Date (other
than  Monthly  Payments  due in the  month of the  Cut-off  Date) as shall be on
deposit in the Custodial Account or in the Certificate Account and identified as
belonging to the Trust Fund;  (iii)  property  which secured a Mortgage Loan and
which has been acquired for the benefit of the Certificateholders by foreclosure
or deed in lieu of foreclosure;  (iv) the hazard insurance  policies and Primary
Insurance  Policies  pertaining  to the  Mortgage  Loans,  if  any;  and (v) all
proceeds of clauses (i) through (iv) above.]

      REMIC I Available Distribution Amount: The Available Distribution Amount.

                                       40
<PAGE>

      [REMIC I  Distribution  Amount:  For any  Distribution  Date,  the REMIC I
Available Distribution Amount shall be distributed to REMIC II in respect of the
REMIC I  Regular  Interests  and the  Class R-I  Certificates  in the  following
amounts and priority:

      (a) to REMIC I Regular  Interest  A-I and REMIC I Regular  Interest  I-1-A
through  I-48-B,  pro rata,  in an amount  equal to (A)  Uncertificated  Accrued
Interest for such REMIC I Regular Interests for such Distribution Date, plus (B)
any  amounts  payable  in  respect  thereof   remaining   unpaid  from  previous
Distribution Dates; and

      (b) to the  extent  of  amounts  remaining  after the  distributions  made
pursuant  to clause (a) above,  payments  of  principal  shall be  allocated  as
follows:  first, to REMIC I Regular Interests I-1-A through I-48-B starting with
the lowest numerical denomination until the Uncertificated  Principal Balance of
each such REMIC I Regular Interest is reduced to zero,  provided that, for REMIC
I Regular  Interests  with the same  numerical  denomination,  such  payments of
principal shall be allocated pro rata between such REMIC I Regular Interests and
second, to the extent of any  Overcollateralization  Reduction Amount to REMIC I
Regular Interest A-I until the Uncertificated  Principal Balance of such REMIC I
Regular Interest is reduced to zero.]

      [REMIC I  Interests:  The  REMIC I  Regular  Interests  and the  Class R-I
Certificates.]

      [REMIC I Realized Losses:  All Realized Losses on the Mortgage Loans shall
be allocated first, on each  Distribution  Date, to REMIC I Regular Interest A-I
until such REMIC I Regular Interest has been reduced to zero.  Second,  Realized
Losses shall be  allocated to REMIC I Regular  Interest  I-1-A  through  REMIC I
Regular Interest I-48-B,  starting with the lowest numerical  denomination until
such REMIC I Regular Interest has been reduced to zero, provided that, for REMIC
I Regular Interests with the same numerical  denomination,  such Realized Losses
shall be allocated pro rata between such REMIC I Regular Interests.]

      [REMIC I Regular Interest: Any of the separate non-certificated beneficial
ownership  interests in REMIC I issued  hereunder  and  designated as a "regular
interest" in REMIC I. Each REMIC I Regular Interest shall accrue interest at the
related  Uncertificated  REMIC I Pass-Through  Rate in effect from time to time,
and shall be entitled to  distributions  of principal,  subject to the terms and
conditions  hereof,  in an aggregate amount equal to its initial  Uncertificated
Principal  Balance  as  set  forth  in the  Preliminary  Statement  hereto.  The
designations for the respective  REMIC I Regular  Interests are set forth in the
Preliminary Statement hereto.]

      [REMIC I Regular  Interest A-I: A regular interest in REMIC I that is held
as an asset of REMIC II,  that has an  initial  principal  balance  equal to the
related  Uncertificated  Principal  Balance,  that bears interest at the related
Uncertificated  REMIC I Pass-Through  Rate, and that has such other terms as are
described herein.]

      [REMIC II: The segregated  pool of assets subject  hereto,  constituting a
portion of the primary trust created  hereby and to be  administered  hereunder,
with respect to which a separate REMIC election is to be made, consisting of the
REMIC I Regular Interests.]

                                       41
<PAGE>

      [REMIC II Available  Distribution  Amount:  For any Distribution Date, the
amount distributed from REMIC I to REMIC II on such Distribution Date in respect
of the REMIC I Regular Interests.]

      [REMIC II Distribution  Amount:  For any  Distribution  Date, the REMIC II
Available  Distribution  Amount shall be  distributed to REMIC III in respect of
the REMIC II Regular  Interests and the Class R-II Certificates in the following
amounts and priority:

            (a) to REMIC II Regular  Interest  LT-IO,  in an amount equal to (i)
Uncertificated  Accrued  Interest  for such REMIC II Regular  Interest  for such
Distribution  Date,  plus (ii) any amounts in respect thereof  remaining  unpaid
from previous Distribution Dates;

            (b) to the extent of amounts remaining after the distributions  made
pursuant to clause (a) above,  to REMIC II Regular  Interests  LT1, LT2, LT3 and
LT4, pro rata, in an amount equal to (i) their  Uncertificated  Accrued Interest
for such  Distribution  Date, plus (ii) any amounts in respect thereof remaining
unpaid from previous Distribution Dates; and

            (c) to the extent of amounts remaining after the distributions  made
pursuant to clauses (a) and (b) above:

                  (i) to REMIC I  Regular  Interests  LT2,  LT3  and  LT4, their
respective Principal Distribution Amounts;

                  (ii) to REMIC I Regular  Interest LT1 any remainder  until the
Uncertificated Principal Balance thereof is reduced to zero;

                  (iii) any remainder to REMIC II Regular Interests LT2, LT3 and
LT4, pro rata according to their respective Uncertificated Principal Balances as
reduced by the  distributions  deemed made  pursuant  to (i) above,  until their
respective Uncertificated Principal Balances are reduced to zero; and

                  (d) to the extent of amounts remaining after the distributions
made pursuant to clauses (a) through (c) above:

            (i)  first,  to each of the  REMIC II  Regular  Interests,  pro rata
according to the amount of unreimbursed  Realized Losses  allocable to principal
previously  allocated  to each such REMIC II  Regular  Interest,  the  aggregate
amount  of any  distributions  to the  Certificates  as  reimbursement  of  such
Realized  Losses on such  Distribution  Date  pursuant to clause (ix) in Section
4.02(c);  provided,  however,  that any  amounts  distributed  pursuant  to this
paragraph (d)(i) of this definition of "REMIC II Distribution  Amount" shall not
cause a reduction in the  Uncertificated  Principal Balances of any of the REMIC
II Regular Interests; and

                  (ii) second,  to the Class R-II  Certificates,  any  remaining
amount.]

      [REMIC II Net WAC Rate: With respect to any Distribution Date, a per annum
rate  equal to the  weighted  average  of (x) with  respect  to REMIC I  Regular
Interests  ending  with  the  designation  "B",  the  weighted  average  of  the
Uncertificated  REMIC I Pass-Through  Rates for

                                       42
<PAGE>

such  REMIC I Regular  Interests,  weighted  on the basis of the  Uncertificated
Principal  Balance of such REMIC I Regular  Interests for each such Distribution
Date, (y) with respect to REMIC I Regular Interest A-I, the Uncertificated REMIC
I Pass-Through Rate for such REMIC I Regular  Interest,  and (z) with respect to
REMIC I Regular Interests ending with the designation "A", for each Distribution
Date listed below,  the weighted average of the rates listed below for each such
REMIC  I  Regular   Interest  listed  below,   weighted  on  the  basis  of  the
Uncertificated  Principal Balance of each such REMIC I Regular Interest for each
such Distribution Date:

<TABLE>
<CAPTION>
Distribution
   Date         REMIC I Regular Interest                                           Rate
------------    ------------------------        ------------------------------------------------------------------------
<S>              <C>                            <C>
    [1]          [I-1-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

    [2]          [I-2-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A]                        [Uncertificated REMIC I Pass-Through Rate]

    [3]          [I-3-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A and I-2-A]              [Uncertificated REMIC I Pass-Through Rate]

    [4]          [I-4-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-3-A]          [Uncertificated REMIC I Pass-Through Rate]

    [5]          [I-5-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-4-A]          [Uncertificated REMIC I Pass-Through Rate]

    [6]          [I-6-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-5-A]          [Uncertificated REMIC I Pass-Through Rate]

    [7]          [I-7-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-6-A]          [Uncertificated REMIC I Pass-Through Rate]

    [8]          [I-8-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-7-A]          [Uncertificated REMIC I Pass-Through Rate]

    [9]          [I-9-A through I-49-A]         [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-8-A]          [Uncertificated REMIC I Pass-Through Rate]

   [10]          [I-10-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-9-A]          [Uncertificated REMIC I Pass-Through Rate]

   [11]          [I-11-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-10-A]         [Uncertificated REMIC I Pass-Through Rate]

   [12]          [I-12-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-11-A]         [Uncertificated REMIC I Pass-Through Rate]

   [13]          [I-13-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-12-A]         [Uncertificated REMIC I Pass-Through Rate]

   [14]          [I-14-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-13-A]         [Uncertificated REMIC I Pass-Through Rate]

   [15]          [I-15-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-14-A]         [Uncertificated REMIC I Pass-Through Rate]
</TABLE>

                                       43
<PAGE>

<TABLE>
<CAPTION>
Distribution
   Date         REMIC I Regular Interest                                           Rate
------------    ------------------------        ------------------------------------------------------------------------
<S>              <C>                            <C>
   [16]          [I-16-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-15-A]         [Uncertificated REMIC I Pass-Through Rate]

   [17]          [I-17-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-16-A]         [Uncertificated REMIC I Pass-Through Rate]

   [18]          [I-18-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-17-A]         [Uncertificated REMIC I Pass-Through Rate]

   [19]          [I-19-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-18-A]         [Uncertificated REMIC I Pass-Through Rate]

   [20]          [I-20-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-19-A]         [Uncertificated REMIC I Pass-Through Rate]

   [21]          [I-21-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-20-A]         [Uncertificated REMIC I Pass-Through Rate]

   [22]          [I-22-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-21-A]         [Uncertificated REMIC I Pass-Through Rate]

   [23]          [I-23-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-22-A]         [Uncertificated REMIC I Pass-Through Rate]

   [24]          [I-24-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-23-A]         [Uncertificated REMIC I Pass-Through Rate]

   [25]          [I-25-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-24-A]         [Uncertificated REMIC I Pass-Through Rate]

   [26]          [I-26-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-25-A]         [Uncertificated REMIC I Pass-Through Rate]

   [27]          [I-27-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-26-A]         [Uncertificated REMIC I Pass-Through Rate]

   [28]          [I-28-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-27-A]         [Uncertificated REMIC I Pass-Through Rate]

   [29]          [I-29-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-28-A]         [Uncertificated REMIC I Pass-Through Rate]

   [30]          [I-30-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-29-A]         [Uncertificated REMIC I Pass-Through Rate]

   [31]          [I-31-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-30-A]         [Uncertificated REMIC I Pass-Through Rate]

   [32]          [I-32-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-31-A]         [Uncertificated REMIC I Pass-Through Rate]

   [33]          [I-33-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-32-A]         [Uncertificated REMIC I Pass-Through Rate]

   [34]          [I-34-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]
</TABLE>

                                       44
<PAGE>

<TABLE>
<CAPTION>
Distribution
   Date         REMIC I Regular Interest                                           Rate
------------    ------------------------        ------------------------------------------------------------------------
<S>              <C>                            <C>
                 [I-1-A through I-33-A]         [Uncertificated REMIC I Pass-Through Rate]

   [35]          [I-35-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-34-A]         [Uncertificated REMIC I Pass-Through Rate]

   [36]          [I-36-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-35-A]         [Uncertificated REMIC I Pass-Through Rate]

   [37]          [I-37-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-36-A]         [Uncertificated REMIC I Pass-Through Rate]

   [38]          [I-38-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-37-A]         [Uncertificated REMIC I Pass-Through Rate]

   [39]          [I-39-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-38-A]         [Uncertificated REMIC I Pass-Through Rate]

   [40]          [I-40-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-39-A]         [Uncertificated REMIC I Pass-Through Rate]

   [41]          [I-41-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-40-A]         [Uncertificated REMIC I Pass-Through Rate]

   [42]          [I-42-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-41-A]         [Uncertificated REMIC I Pass-Through Rate]

   [43]          [I-43-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-42-A]         [Uncertificated REMIC I Pass-Through Rate]

   [44]          [I-44-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-43-A]         [Uncertificated REMIC I Pass-Through Rate]

   [45]          [I-45-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-44-A]         [Uncertificated REMIC I Pass-Through Rate]

   [46]          [I-46-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-45-A]         [Uncertificated REMIC I Pass-Through Rate]

   [47]          [I-47-A through I-49-A]        [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-46-A]         [Uncertificated REMIC I Pass-Through Rate]

   [48]          [I-48-A]                       [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-47-A]         [Uncertificated REMIC I Pass-Through Rate]

   [49]          [I-49-A]                       [2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated
                                                REMIC I Pass-Through Rate]

                 [I-1-A through I-49-A]         [Uncertificated REMIC I Pass-Through Rate]

[Thereafter]     [I-1-A through I-49-A]         [Uncertificated REMIC I Pass-Through Rate]
</TABLE>

      [REMIC II Principal  Reduction  Amounts:  For any  Distribution  Date, the
amounts by which the principal balances of the REMIC II Regular Interests [LT1],
[LT2],  [LT3] and [LT4],  respectively will be reduced on such Distribution Date
by the  allocation  of  Realized  Losses  and  the  distribution  of  principal,
determined as follows:

                                       45
<PAGE>

      For purposes of the succeeding  formulas the following  symbols shall have
the meanings set forth below:

      Y1 =        the  principal  balance of the REMIC II Regular  Interest  LT1
                  after distributions on the prior Distribution Date.

      Y2 =        the  principal  balance of the REMIC II Regular  Interest  LT2
                  after distributions on the prior Distribution Date.

      Y3 =        the  principal  balance of the REMIC II Regular  Interest  LT3
                  after distributions on the prior Distribution Date.

      Y4 =        the  principal  balance of the REMIC II Regular  Interest  LT4
                  after distributions on the prior Distribution Date (note: Y3 =
                  Y4).

      (delta)Y1 = the REMIC II Regular Interest LT1 Principal Reduction Amount.

      (delta)Y2 = the REMIC II Regular Interest LT2 Principal Reduction Amount.

      (delta)Y3 = the REMIC II Regular Interest LT3 Principal Reduction Amount.

      (delta)Y4 = the REMIC II Regular Interest LT4 Principal Reduction Amount.

      P0 =        the aggregate  principal balance of REMIC II Regular Interests
                  LT1, LT2, LT3 and LT4 after  distributions  and the allocation
                  of Realized Losses on the prior Distribution Date.

      P1 =        the  aggregate  principal  balance  of the  REMIC  II  Regular
                  Interest  LT1,  LT2, LT3 and LT4 after  distributions  and the
                  allocation of Realized Losses to be made on such  Distribution
                  Date.

      (delta)P =  P0 - P1 = the aggregate of the REMIC II Regular  Interest LT1,
                  LT2, LT3 and LT4 Principal Reduction Amounts.

               =  the aggregate of the principal  portions of Realized Losses to
                  be allocated  to, and the principal  distributions  to be made
                  on, the  Certificates  on such  Distribution  Date  (including
                  distributions  of accrued and unpaid  interest on the Class SB
                  Certificates for prior Distribution Dates).

      R0 =        the REMIC Net WAC Rate (stated as a monthly rate) after giving
                  effect to amounts distributed and Realized Losses allocated on
                  the prior Distribution Date.

                                       46
<PAGE>

      R1 =        the REMIC Net WAC Rate (stated as a monthly rate) after giving
                  effect to amounts to be distributed  and Realized Losses to be
                  allocated on such Distribution Date.

      (alpha) =   (Y2 + Y3)/P0. The initial value of (alpha) on the Closing Date
                  for use on the first Distribution Date shall be 0.0001.

      (gamma)0 =  the  lesser  of (A) the sum for all  Classes  of  Certificates
                  other than the Class SB  Certificates  of the product for each
                  Class of (i) the  monthly  interest  rate (as  limited  by the
                  REMIC Net WAC Rate, if applicable)  for such Class  applicable
                  for  distributions  to be made on such  Distribution  Date and
                  (ii) the  aggregate  Certificate  Principal  Balance  for such
                  Class  after  distributions  and the  allocation  of  Realized
                  Losses on the prior Distribution Date and (B) R0*P0.

      (gamma)1 =  the  lesser  of (A) the sum for all  Classes  of  Certificates
                  other than the Class SB  Certificates  of the product for each
                  Class of (i) the  monthly  interest  rate (as  limited  by the
                  REMIC Net WAC Rate, if applicable)  for such Class  applicable
                  for   distributions   to  be  made  on  the  next   succeeding
                  Distribution Date and (ii) the aggregate Certificate Principal
                  Balance for such Class after  distributions and the allocation
                  of Realized  Losses to be made on such  Distribution  Date and
                  (B) R1*P1.

      Then, based on the foregoing definitions:

      (delta)Y1 = AP - AY2 - AY3 - AY4;

      (delta)Y2 = ((alpha)A2){( (gamma)0R1 - (gamma)1R0)/R0R1};

      (delta)Y3 = (alpha)AP - AY2; and

      (delta)Y4 = AY3.

if both (delta)Y2 and (delta)Y3,  as so determined,  are  non-negative  numbers.
Otherwise:

      (1)   If (delta)Y2, as so determined, is negative, then

      (delta)Y2 = 0;

      (delta)Y3 = (alpha){(gamma)1R0P0 - (gamma)0R1P1} (gamma)1R0};

      (delta)Y4 = (delta)Y3; and

      (delta)Y1 = (delta)P - (delta)Y2 - (delta)Y3 - (delta)Y4.

                                       47
<PAGE>

      (2)   If (delta)Y3, as so determined, is negative, then

      (delta)Y3 = 0;

      (delta)Y2 = (alpha){(gamma)1R0P0 - (gamma)0R1P1}/{2R1R0P1 - (gamma)1R0};

      (delta)Y4 = (delta)Y3; and

      (delta)Y1 = (delta)P - (delta)Y2 - (delta)Y3 - (delta)Y4.]

      [REMIC II Realized Losses:  Realized Losses on the Mortgage Loans shall be
allocated to the REMIC II Regular Interests as follows.  The interest portion of
Realized Losses on the Mortgage Loans, if any, shall be allocated among REMIC II
Regular  Interests  [LT1],  [LT2] and [LT4], pro rata according to the amount of
interest accrued but unpaid thereon, in reduction thereof.  Any interest portion
of such  Realized  Losses in  excess of the  amount  allocated  pursuant  to the
preceding  sentence shall be treated as a principal  portion of Realized  Losses
not  attributable  to any specific  Mortgage Loan and allocated  pursuant to the
succeeding  sentences.  The principal portion of Realized Losses with respect to
Mortgage Loans shall be allocated to the REMIC II Regular  Interests as follows:
first, to REMIC II Regular Interests [LT2], [LT3] and [LT4],  pro-rata according
to their respective REMIC II Principal  Reduction  Amounts to the extent thereof
in reduction of the  Uncertificated  Principal  Balance of such REMIC II Regular
Interests and, second, the remainder,  if any, of such principal portion of such
Realized  Losses  shall  be  allocated  to REMIC II  Regular  Interest  [LT1] in
reduction of the Uncertificated Principal Balance thereof.

      [REMIC II Regular  Interests:  REMIC II Regular  Interest [LT1],  REMIC II
Regular  Interest  [LT2],  REMIC II  Regular  Interest  [LT3],  REMIC II Regular
Interest [LT4] and REMIC II Regular Interest [LT-IO].]

      [REMIC II Regular  Interest  LT1: A regular  interest  in REMIC II that is
held as an asset of REMIC III,  that has an initial  principal  balance equal to
the related Uncertificated Principal Balance, that bears interest at the related
Uncertificated  REMIC II Pass-Through Rate, and that has such other terms as are
described herein.]

      [REMIC II Regular  Interest LT1  Principal  Distribution  Amount:  For any
Distribution  Date,  the excess,  if any, of the REMIC II Regular  Interest  LT1
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC II Regular Interest LT1 on such Distribution Date.]

      [REMIC II Regular  Interest  LT2: A regular  interest  in REMIC II that is
held as an asset of REMIC III,  that has an initial  principal  balance equal to
the related Uncertificated Principal Balance, that bears interest at the related
Uncertificated  REMIC II Pass-Through Rate, and that has such other terms as are
described herein.]

      [REMIC II Regular  Interest LT2  Principal  Distribution  Amount:  For any
Distribution  Date,  the excess,  if any, of the REMIC II Regular  Interest  LT2
Principal  Reduction Amount for

                                       48
<PAGE>

such  Distribution  Date  over the  Realized  Losses  allocated  to the REMIC II
Regular Interest LT2 on such Distribution Date.]

      [REMIC II Regular  Interest  LT3: A regular  interest  in REMIC II that is
held as an asset of REMIC III,  that has an initial  principal  balance equal to
the related Uncertificated Principal Balance, that bears interest at the related
Uncertificated  REMIC II Pass-Through Rate, and that has such other terms as are
described herein.]

      [REMIC II Regular  Interest LT3  Principal  Distribution  Amount:  For any
Distribution  Date,  the excess,  if any, of the REMIC II Regular  Interest  LT3
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC II Regular Interest LT3 on such Distribution Date.]

      [REMIC II Regular  Interest  LT4: A regular  interest  in REMIC II that is
held as an asset of REMIC III,  that has an initial  principal  balance equal to
the related Uncertificated Principal Balance, that bears interest at the related
Uncertificated  REMIC II Pass-Through Rate, and that has such other terms as are
described herein.]

      [REMIC II Regular  Interest LT4  Principal  Distribution  Amount:  For any
Distribution  Date,  the excess,  if any, of the REMIC II Regular  Interest  LT4
Principal  Reduction Amount for such  Distribution Date over the Realized Losses
allocated to the REMIC II Regular Interest LT4 on such Distribution Date.]

      [REMIC II Regular  Interest LT-IO: A regular  interest in REMIC II that is
held as an asset of REMIC III,  that has an initial  principal  balance equal to
the related Uncertificated Principal Balance, that bears interest at the related
Uncertificated  REMIC II Pass-Through Rate, and that has such other terms as are
described herein.]

      [REMIC III: The segregated pool of assets subject  hereto,  constituting a
portion of the primary trust created  hereby and to be  administered  hereunder,
with respect to which a separate REMIC election is to be made, consisting of the
REMIC II Regular Interests.]

      [REMIC III Regular Interest SB-PO: A separate non-certificated  beneficial
ownership  interests in REMIC III issued  hereunder and  designated as a Regular
Interest  in  REMIC  III.  REMIC  III  Regular  Interest  SB-PO  shall  have  no
entitlement  to interest,  and shall be entitled to  distributions  of principal
subject to the terms and  conditions  hereof,  in aggregate  amount equal to the
initial Certificate  Principal Balance of the Class SB Certificates as set forth
in the Preliminary Statement hereto.]

      [REMIC III Regular Interest SB-IO: A separate non-certificated  beneficial
ownership  interests in REMIC III issued  hereunder and  designated as a Regular
Interest  in  REMIC  III.  REMIC  III  Regular  Interest  SB-IO  shall  have  no
entitlement  to principal,  and shall be entitled to  distributions  of interest
subject to the terms and  conditions  hereof,  in aggregate  amount equal to the
interest distributable with respect to the Class SB Certificates pursuant to the
terms and conditions hereof.]

      [REMIC III Regular  Interest  IO: A separate  non-certificated  beneficial
ownership  interests in REMIC III issued  hereunder and  designated as a Regular
Interest in REMIC III.

                                       49
<PAGE>

REMIC III Regular Interest IO shall have no entitlement to principal,  and shall
be entitled to  distributions  of interest  subject to the terms and  conditions
hereof, in aggregate amount equal to the interest  distributable with respect to
REMIC II Regular Interest LT-IO.]

      [REMIC III Regular Interests: REMIC III Regular Interests SB-IO, SB-PO and
IO,  together with the Class A  Certificates,  Class M Certificates  and Class B
Certificates.]

      REMIC  Provisions:  Provisions  of the federal  income tax law relating to
real estate mortgage investment conduits,  which appear at Sections 860A through
860G of  Subchapter  M of Chapter 1 of the Code,  and  related  provisions,  and
temporary and final  regulations (or, to the extent not  inconsistent  with such
temporary or final  regulations,  proposed  regulations) and published  rulings,
notices and  announcements  promulgated  thereunder,  as the foregoing may be in
effect from time to time.

      REO  Acquisition:  The acquisition by the Master Servicer on behalf of the
Trustee for the benefit of the  Certificateholders  of any REO Property pursuant
to Section 3.14.

      REO Disposition:  With respect to any REO Property, a determination by the
Master  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  Master  Servicer  expects  to be finally
recoverable from the sale or other disposition of the REO Property.

      REO Imputed Interest: With respect to any REO Property, for any period, an
amount  equivalent  to interest (at a rate equal to 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
Custodial Account only upon the related REO Disposition.

      REO  Property:  A Mortgaged  Property  acquired by the Master  Servicer on
behalf of the  Trust  Fund for the  benefit  of the  Certificateholders  through
foreclosure  or deed  in lieu of  foreclosure  in  connection  with a  defaulted
Mortgage Loan.

      Reportable  Modified  Mortgage  Loan:  Any Mortgage Loan that (i) has been
subject to an interest rate reduction, (ii) has been subject to a term extension
or (iii) has had amounts owing on such Mortgage Loan  capitalized by adding such
amount to the Stated Principal Balance of such Mortgage Loan; provided, however,
that a  Mortgage  Loan  modified  in  accordance  with  clause  (i)  above for a
temporary  period  shall  not be a  Reportable  Modified  Mortgage  Loan if such
Mortgage Loan has not been  delinquent in payments of principal and interest for
six months since the date of such  modification  if that interest rate reduction
is not made permanent thereafter.

      Repurchase Event: As defined in the Assignment Agreement.

                                       50
<PAGE>

      Request for Release: A request for release,  the form of which is attached
as  Exhibit G hereto,  or an  electronic  request  in a form  acceptable  to the
Custodian.

      Required  Insurance  Policy:  With  respect  to  any  Mortgage  Loan,  any
insurance policy which is required to be maintained from time to time under this
Agreement, the Program Guide or the related Subservicing Agreement in respect of
such Mortgage Loan.

      [Required  Overcollateralization  Amount: With respect to any Distribution
Date,  (a) prior to the Stepdown Date, an amount equal to [__]% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the Cut-off Date, (b) on or
after the Stepdown Date if a Trigger Event is not in effect,  the greater of (i)
an amount equal to [__]% of the aggregate  outstanding  Stated Principal Balance
of the  Mortgage  Loans  after  giving  effect  to  distributions  made  on that
Distribution  Date and (ii) the  Overcollateralization  Floor or (c) on or after
the  Stepdown  Date if a Trigger  Event is in  effect,  an  amount  equal to the
Required   Overcollateralization   Amount   from   the   immediately   preceding
Distribution Date. The Required  Overcollateralization  Amount may be reduced so
long as written  confirmation  is  obtained  from each  Rating  Agency that such
reduction shall not reduce the ratings  assigned to any Class of Certificates by
such  Rating  Agency  below the lower of the  then-current  rating or the rating
assigned to such Certificates as of the Closing Date by such Rating Agency.]

      Residential Funding:  Residential Funding Company, LLC, a Delaware limited
liability  company,  in its  capacity  as  seller of the  Mortgage  Loans to the
Depositor and any successor thereto.

      Responsible Officer: When used with respect to the Trustee, any officer of
the  Corporate  Trust  Department  of the  Trustee,  including  any Senior  Vice
President,  any Vice  President,  any Assistant  Vice  President,  any Assistant
Secretary, any Trust Officer or Assistant Trust Officer, or any other officer of
the Trustee with direct responsibility for the administration of this Agreement.

      Restricted Class A Certificate: As defined in Section 5.02(e).

      Rule 144A:  Rule 144A under the  Securities Act of 1933, as in effect from
time to time.

      Securitization  Transaction:  Any  transaction  involving  a sale or other
transfer  of  mortgage  loans  directly or  indirectly  to an issuing  entity in
connection with an issuance of publicly  offered or privately  placed,  rated or
unrated mortgage-backed securities.

      Seller:  With  respect  to any  Mortgage  Loan,  a Person,  including  any
Subservicer,  that  executed a Seller's  Agreement  applicable  to such Mortgage
Loan.

      Seller's Agreement:  An agreement for the origination and sale of Mortgage
Loans generally in the form of the seller  contract  referred to or contained in
the  Program  Guide,  or in such other form as has been  approved  by the Master
Servicer and the Depositor.

      Senior Enhancement  Percentage:  [For any Distribution Date, the fraction,
expressed  as a  percentage,  the  numerator  of  which  is the  sum of (i)  the
aggregate Certificate Principal Balance of the [Class M Certificates and Class B
Certificates] and (ii) the  Overcollateralization  Amount,

                                       51
<PAGE>

in each case prior to the distribution of the Principal  Distribution  Amount on
such  Distribution  Date and the  denominator  of which is the aggregate  Stated
Principal  Balance of the Mortgage Loans after giving effect to distributions to
be made on that Distribution Date.]

      Servicing  Accounts:  The  account  or  accounts  created  and  maintained
pursuant to Section 3.08.

      Servicing  Advances:  All  customary,  reasonable  and  necessary  "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other  unanticipated  event  by the  Master  Servicer  or a  Subservicer  in the
performance  of its servicing  obligations,  including,  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,
including any expenses  incurred in relation to any such proceedings that result
from the  Mortgage  Loan  being  registered  on the  MERS(R)  System,  (iii) the
management and liquidation of any REO Property,  (iv) any mitigation  procedures
implemented  in  accordance  with  Section  3.07,  and (v)  compliance  with the
obligations  under  Sections 3.01,  3.08,  3.12(a) and 3.14,  including,  if the
Master Servicer or any Affiliate of the Master Servicer  provides  services such
as appraisals and brokerage  services that are  customarily  provided by Persons
other  than  servicers  of  mortgage  loans,  reasonable  compensation  for such
services.

      Servicing Criteria:  The "servicing criteria" set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.

      Servicing  Fee: With respect to any Mortgage Loan and  Distribution  Date,
the fee payable  monthly to the Master  Servicer in respect of master  servicing
compensation  that  accrues at an annual  rate equal to the  Servicing  Fee Rate
multiplied  by the  Stated  Principal  Balance of such  Mortgage  Loan as of the
related  Due Date in the related  Due  Period,  as may be  adjusted  pursuant to
Section 3.16(e).

      Servicing Fee Rate:  With respect to any Mortgage Loan, the per annum rate
designated  on the  Mortgage  Loan  Schedule  as the "MSTR  SERV FEE," as may be
adjusted with respect to successor Master Servicers as provided in Section 7.02,
which rate shall never be greater than the Mortgage Rate of such Mortgage Loan.

      Servicing  Modification:  Any  reduction  of the  interest  rate on or the
outstanding  principal  balance of a Mortgage  Loan,  any extension of the final
maturity  date of a Mortgage  Loan,  and any  increase  to the Stated  Principal
Balance of a  Mortgage  Loan by adding to the Stated  Principal  Balance  unpaid
principal and interest and other amounts owing under the Mortgage  Loan, in each
case pursuant to a modification of a Mortgage Loan that is in default or, in the
judgment of the Master Servicer, default is reasonably foreseeable in accordance
with Section 3.07(a).

      Servicing  Officer:  Any officer of the Master  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 Trustee by the Master  Servicer on the Closing  Date,  as such list may from
time to time be amended.

                                       52
<PAGE>

      Sixty-Plus Delinquency  Percentage:  With respect to any Distribution Date
on or after the Stepdown  Date, the  arithmetic  average,  for each of the three
Distribution  Dates  ending  with  such  Distribution  Date,  of  the  fraction,
expressed as a percentage,  equal to (x) the aggregate Stated Principal  Balance
of the  Mortgage  Loans  that  are 60 or more  days  delinquent  in  payment  of
principal and interest for that Distribution  Date,  including Mortgage Loans in
foreclosure and REO Properties,  over (y) the aggregate Stated Principal Balance
of the Mortgage Loans immediately preceding that Distribution Date.

      Standard & Poor's:  Standard & Poor's Ratings Services,  a Division of The
McGraw-Hill Companies, Inc. or its successors in interest.

      Startup Date: The day designated as such pursuant to Article X hereof.

      Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property,  as of any date of determination,  (i) the sum of (a) the Cut-off Date
Principal  Balance of the  Mortgage  Loan and (b) any amount by which the Stated
Principal  Balance  of the  Mortgage  Loan  has  been  increased  pursuant  to a
Servicing  Modification,  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  with  the Due  Period  relating  to the  most  recent
Distribution  Date which were  received or with  respect to which an Advance was
made,  (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 Master  Servicer  as  recoveries  of  principal  in
accordance with Section 3.14 with respect to such Mortgage Loan or REO Property,
in each case which were  distributed  pursuant to Section  4.02 on any  previous
Distribution  Date,  and (c) any Realized Loss  allocated to  Certificateholders
with respect thereto for any previous Distribution Date.

      Stepdown Date: [That  Distribution Date which is the later to occur of (i)
the Distribution Date in [_______] 20[_] and (ii) the first Distribution Date on
which the Senior Enhancement Percentage is equal to or greater than [__]%.

      Subordination:  The  provisions  described in Section 4.05 relating to the
allocation of Realized Losses other than a pro rata basis.

      Subordination   Percentage:   With  respect  to  any  Class  of  [Class  A
Certificates,  Class M  Certificates  or Class B  Certificates],  the respective
percentage set forth below.

      Class            Percentage           Class             Percentage
      [__]                [__]%             [__]                [__]%

      Subsequent  Recoveries:  As of any Distribution  Date, amounts received by
the Master  Servicer  (net of any related  expenses  permitted to be  reimbursed
pursuant  to Section  3.10) or surplus  amounts  held by the Master  Servicer to
cover estimated expenses  (including,  but not limited to, recoveries in respect
of the representations and warranties made by the related Seller pursuant to the
applicable  Seller's  Agreement and assigned to the Trustee  pursuant to Section
2.04)  specifically  related to a Mortgage  Loan that was the  subject of a Cash
Liquidation

                                       53
<PAGE>

or an REO Disposition  prior to the related  Prepayment Period and that resulted
in a Realized Loss.

      Subserviced  Mortgage  Loan:  Any  Mortgage  Loan  that,  at the  time  of
reference thereto, is subject to a Subservicing Agreement.

      Subservicer:  Any Person with whom the Master  Servicer has entered into a
Subservicing Agreement and who generally satisfied the requirements set forth in
the Program Guide in respect of the  qualification  of a  Subservicer  as of the
date of its approval as a Subservicer by the Master Servicer.

      Subservicer Advance: Any delinquent  installment of principal and interest
on a Mortgage  Loan which is  advanced by the  related  Subservicer  (net of its
Subservicing Fee) pursuant to the Subservicing Agreement.

      Subservicing   Account:   An  account  established  by  a  Subservicer  in
accordance with Section 3.08.

      Subservicing  Agreement:  The written contract between the Master Servicer
and any Subservicer relating to servicing and administration of certain Mortgage
Loans as  provided  in  Section  3.02,  generally  in the  form of the  servicer
contract  referred to or contained in the Program Guide or in such other form as
has been approved by the Master Servicer and the Depositor.

      Subservicing  Fee:  With  respect to any  Mortgage  Loan,  the fee payable
monthly to the related Subservicer (or, in the case of a Nonsubserviced Mortgage
Loan, to the Master Servicer) in respect of subservicing and other  compensation
that accrues with respect to each Distribution Date at an annual rate designated
as "SUBSERV FEE" on the Mortgage Loan Schedule.

      Swap Account:  The separate  trust account  created and  maintained by the
Trustee pursuant to Section 4.08(a).

      Swap  Agreement:  The  interest  rate  swap  agreement  between  the  Swap
Counterparty and the Trustee,  on behalf of the Trust,  which agreement provides
for Net Swap  Payments  and Swap  Termination  Payments to be paid,  as provided
therein, together with any schedules, confirmations or other agreements relating
thereto, attached hereto as Exhibit S.

      Swap  Agreement  Notional  Balance:  As to the  Swap  Agreement  and  each
Floating  Rate Payer  Payment  Date and Fixed Rate Payer  Payment  Date (each as
defined in the Swap Agreement) the amount set forth on Exhibit R hereto for such
Floating Rate Payer Payment Date.

      Swap  Counterparty:  The swap counterparty under the Swap Agreement either
(a) entitled to receive  payments  from the Trustee from amounts  payable by the
Trust Fund under this  Agreement or (b) required to make payments to the Trustee
for payment to the Trust Fund,  in either case pursuant to the terms of the Swap
Agreement,  and any  successor  in  interest  or  assign.  Initially,  the  Swap
Counterparty shall be Bear Stearns Financial Products Inc.

                                       54
<PAGE>

      Swap Counterparty  Trigger Event:  With respect to any Distribution  Date,
(i) an Event of Default under the Swap  Agreement with respect to which the Swap
Counterparty  is a Defaulting  Party,  (ii) a  Termination  Event under the Swap
Agreement  with  respect  to which the Swap  Counterparty  is the sole  Affected
Party,  or (iii) an additional  termination  event under the Swap Agreement with
respect to which the Swap Counterparty is the sole Affected Party.

      Swap LIBOR: LIBOR as determined pursuant to the Swap Agreement.

      Swap Termination  Payment:  Upon the designation of an "Early  Termination
Date" as defined in the Swap Agreement, the payment to be made by the Trustee on
behalf of the Trust to the Swap  Counterparty from payments from the Trust Fund,
or by the Swap  Counterparty  to the Trustee  for payment to the Trust Fund,  as
applicable, pursuant to the terms of the Swap Agreement.

      Tax Returns:  The federal  income tax return on Internal  Revenue  Service
Form 1066,  U.S.  Real Estate  Mortgage  Investment  Conduit  Income Tax Return,
including  Schedule Q thereto,  Quarterly Notice to Residual Interest Holders of
REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed
on behalf of any REMIC hereunder due to its  classification as a REMIC under the
REMIC  Provisions,  together  with any and all  other  information,  reports  or
returns that may be required to be furnished to the  Certificateholders or filed
with the Internal  Revenue Service or any other  governmental  taxing  authority
under any applicable provisions of federal, state or local tax laws.

      Telerate Screen Page 3750: As defined in Section 1.02.

      Transaction Party: As defined in Section 12.02(a).

      Transfer: Any direct or indirect transfer, sale, pledge,  hypothecation or
other form of assignment of any Ownership Interest in a Certificate.

      Transfer Affidavit and Agreement: As defined in Section 5.02(e).

      Transferee: Any Person who is acquiring by Transfer any Ownership Interest
in a Certificate.

      Transferor:  Any Person who is  disposing  by  Transfer  of any  Ownership
Interest in a Certificate.

      Trigger  Event:  [A  Trigger  Event  is in  effect  with  respect  to  any
Distribution  Date if either (a) on or after the  Stepdown  Date the  Sixty-Plus
Delinquency  Percentage for that  Distribution Date exceeds [__]% of the current
Senior  Enhancement  Percentage  or (b) on or  after  the  Distribution  Date in
[________]  20[_], the aggregate amount of Realized Losses on the Mortgage Loans
as a percentage of the Cut-off Date Balance  exceeds the  applicable  amount set
forth below:

[________] 20[_] to [________] 20[_]:  [__]% with  respect to [________]  20[_],
                                       plus  an  additional 1/12th  of [__]% for
                                       each month thereafter;

                                       55
<PAGE>

[________] 20[_] to [________] 20[_]:  [__]% with  respect to [________]  20[_],
                                       plus  an  additional 1/12th  of [__]% for
                                       each month thereafter;

[________] 20[_] to [________] 20[_]:  [__]% with  respect to [________]  20[_],
                                       plus  an  additional 1/12th  of [__]% for
                                       each month thereafter;

[________] 20[_] and thereafter:       [__]%.

      Trustee: As defined in the preamble hereto.

      Trustee Information: As specified in Section 12.05(a)(i)(A).

      Trust Fund: Collectively, the assets of each REMIC hereunder.

      [Uncertificated  Accrued  Interest:  With  respect  to any  Uncertificated
Regular Interest for any Distribution  Date, one month's interest at the related
Uncertificated  Pass-Through  Rate for such  Distribution  Date,  accrued on the
Uncertificated   Principal  Balance  or   Uncertificated   Notional  Amount,  as
applicable,  immediately prior to such Distribution Date. Uncertificated Accrued
Interest for the Uncertificated Regular Interests shall accrue on the basis of a
360-day year consisting of twelve 30-day months. For purposes of calculating the
amount of Uncertificated  Accrued Interest for the REMIC I Regular Interests for
any  Distribution  Date,  any  Prepayment  Interest  Shortfalls  and  Relief Act
Shortfalls  (to the  extent  not  covered  by  Compensating  Interest)  shall be
allocated among REMIC I Regular Interests, pro rata, based on, and to the extent
of,  Uncertificated  Accrued Interest, as calculated without application of this
sentence.  For  purposes of  calculating  the amount of  Uncertificated  Accrued
Interest  for the REMIC II Regular  Interests  for any  Distribution  Date,  any
Prepayment  Interest  Shortfalls  and Relief Act  Shortfalls  (to the extent not
covered by Compensating  Interest) shall be allocated among the REMIC II Regular
Interests,  pro rata,  based on, and to the extent  of,  Uncertificated  Accrued
Interest,  as calculated  without  application of this sentence.  Uncertificated
Interest  on REMIC III  Regular  Interest  SB-PO  shall be zero.  Uncertificated
Accrued Interest on the REMIC III Regular  Interest SB-IO for each  Distribution
Date shall equal Accrued Certificate Interest for the Class SB Certificates.]

      [Uncertificated Notional Amount: With respect to the Class SB Certificates
or the REMIC III Regular Interest SB-IO,  immediately  prior to any Distribution
Date,  the aggregate of the  Uncertificated  Principal  Balances of the REMIC II
Regular Interests.

      With respect to REMIC II Regular Interest LT-IO and each Distribution Date
listed below,  the  aggregate  Uncertificated  Principal  Balance of the REMIC I
Regular Interests ending with the designation "A" listed below:

             Distribution Date                 REMIC I Regular Interests
             -----------------                 -------------------------
                    [1]                          [I-1-A through I-49-A]

                                       56
<PAGE>

             Distribution Date                 REMIC I Regular Interests
             -----------------                 -------------------------
                    [2]                          [I-2-A through I-49-A]
                    [3]                          [I-3-A through I-49-A]
                    [4]                          [I-4-A through I-49-A]
                    [5]                          [I-5-A through I-49-A]
                    [6]                          [I-6-A through I-49-A]
                    [7]                          [I-7-A through I-49-A]
                    [8]                          [I-8-A through I-49-A]
                    [9]                          [I-9-A through I-49-A]
                   [10]                         [I-10-A through I-49-A]
                   [11]                         [I-11-A through I-49-A]
                   [12]                         [I-12-A through I-49-A]
                   [13]                         [I-13-A through I-49-A]
                   [14]                         [I-14-A through I-49-A]
                   [15]                         [I-15-A through I-49-A]
                   [16]                         [I-16-A through I-49-A]
                   [17]                         [I-17-A through I-49-A]
                   [18]                         [I-18-A through I-49-A]
                   [19]                         [I-19-A through I-49-A]
                   [20]                         [I-20-A through I-49-A]
                   [21]                         [I-21-A through I-49-A]
                   [22]                         [I-22-A through I-49-A]
                   [23]                         [I-23-A through I-49-A]
                   [24]                         [I-24-A through I-49-A]
                   [25]                         [I-25-A through I-49-A]
                   [26]                         [I-26-A through I-49-A]
                   [27]                         [I-27-A through I-49-A]
                   [28]                         [I-28-A through I-49-A]
                   [29]                         [I-29-A through I-49-A]
                   [30]                         [I-30-A through I-49-A]
                   [31]                         [I-31-A through I-49-A]
                   [32]                         [I-32-A through I-49-A]
                   [33]                         [I-33-A through I-49-A]
                   [34]                         [I-34-A through I-49-A]
                   [35]                         [I-35-A through I-49-A]
                   [36]                         [I-36-A through I-49-A]
                   [37]                         [I-37-A through I-49-A]
                   [38]                         [I-38-A through I-49-A]
                   [39]                         [I-39-A through I-49-A]
                   [40]                         [I-40-A through I-49-A]
                   [41]                         [I-41-A through I-49-A]
                   [42]                         [I-42-A through I-49-A]
                   [43]                         [I-43-A through I-49-A]
                   [44]                         [I-44-A through I-49-A]
                   [45]                         [I-45-A through I-49-A]
                   [46]                         [I-46-A through I-49-A]
                   [47]                         [I-47-A through I-49-A]
                   [48]                         [I-48-A through I-49-A]
                   [49]                                 [I-49-A]
                thereafter                              [$0.00]

      With respect to REMIC III Regular  Interest IO,  immediately  prior to any
Distribution  Date,  an amount equal to the  Uncertificated  Notional  Amount of
REMIC II Regular Interest LT-IO.]

      [Uncertificated Pass-Through Rate: The Uncertificated REMIC I Pass-Through
Rate or the Uncertificated REMIC II Pass-Through Rate, as applicable.]

                                       57
<PAGE>

      [Uncertificated   Principal   Balance:   The   principal   amount  of  any
Uncertificated Regular Interest outstanding as of any date of determination. The
Uncertificated  Principal  Balance of each REMIC Regular Interest shall never be
less than zero.  With  respect to REMIC III Regular  Interest  SB-PO the initial
amount set forth with respect thereto in the Preliminary Statement as reduced by
distributions  deemed  made in respect  thereof  pursuant  to  Section  4.02 and
Realized Losses allocated thereto pursuant to Section 4.05.]

      [Uncertificated  Regular Interests:  The REMIC I Regular Interests and the
REMIC II Regular Interests.]

      [Uncertificated  REMIC I Pass-Through  Rate:  With respect to each REMIC I
Regular  Interest ending with the designation "A", a per annum rate equal to the
weighted  average Net Mortgage Rate of the Mortgage Loans multiplied by two (2),
subject  to a maximum  rate of  [___]%.  With  respect  to each  REMIC I Regular
Interest  ending with the  designation  "B", the greater of (x) a per annum rate
equal to the excess,  if any, of (i) 2 multiplied  by the  weighted  average Net
Mortgage  Rate of the  Mortgage  Loans over (ii) [___]% and (y)  0.00000%.  With
respect to REMIC I Regular  Interest A-I, the weighted average Net Mortgage Rate
of the Mortgage Loans.]

      [Uncertificated   REMIC  II   Pass-Through   Rate:  With  respect  to  any
Distribution  Date and (i) REMIC II Regular  Interests LT1 and LT2, the REMIC II
Net WAC Rate, (ii) REMIC II Regular  Interest LT3, zero (0.00%),  (iii) REMIC II
Regular Interest LT4, twice the REMIC II Net WAC Rate, and (iv) REMIC II Regular
Interest  LT-IO,  the excess of (i) the weighted  average of the  Uncertificated
REMIC I  Pass-Through  Rates  for  REMIC I  Regular  Interests  ending  with the
designation "A", over (ii) 2 multiplied by Swap LIBOR.]

      Uniform  Single  Attestation  Program for  Mortgage  Bankers:  The Uniform
Single  Attestation  Program for Mortgage Bankers,  as published by the Mortgage
Bankers  Association  of America and  effective  with respect to fiscal  periods
ending on or after March 15, 1995.

      Uninsured  Cause:  Any cause of damage to  property  subject to a Mortgage
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies.

      United  States  Person:  A citizen or  resident  of the United  States,  a
corporation,   partnership  or  other  entity   (treated  as  a  corporation  or
partnership for United States federal income tax purposes)  created or organized
in, or under the laws of, the United States, any state thereof,  or the District
of  Columbia  (except in the case of a  partnership,  to the extent  provided in
Treasury  regulations) provided that, for purposes solely of the restrictions on
the transfer of Class R Certificates,  no partnership or other entity treated as
a partnership  for United States federal income tax purposes shall be treated as
a  United  States  Person  unless  all  persons  that  own an  interest  in such
partnership  either directly or through any entity that is not a corporation for
United  States  federal  income tax  purposes  are  required  by the  applicable
operative  agreement to be United States Persons, or an estate that is described
in Section  7701(a)(30)(D)  of the Code, or a trust that is described in Section
7701(a)(30)(E) of the Code.

      Voting Rights: The portion of the voting rights of all of the Certificates
which is allocated to any Certificate.  [___]% of all of the Voting Rights shall
be allocated among Holders

                                       58
<PAGE>

of the  Class  A  Certificates,  the  Class  M  Certificates  and  the  Class  B
Certificates in proportion to the outstanding  Certificate Principal Balances of
their  respective  Certificates;  [___]% of all of the  Voting  Rights  shall be
allocated to the Holders of the Class SB  Certificates,  and [___]%,  [___]% and
[___]% of all of the Voting  Rights  shall be  allocated  to the  Holders of the
Class  R-I  Certificates,  the  Class  R-II  Certificates  and the  Class  R-III
Certificates,  respectively; in each case to be allocated among the Certificates
of such Class in accordance with their respective Percentage Interests.

                                       59
<PAGE>

      Section 1.02. Determination of One-Month LIBOR

      One-Month LIBOR applicable to the calculation of the Pass-Through  Rate on
the LIBOR  Certificates for any Interest  Accrual Period  (including the initial
Interest Accrual Period) will be determined on each LIBOR Rate Adjustment Date.

      On each LIBOR Rate Adjustment  Date, or if such LIBOR Rate Adjustment Date
is not a Business Day, then on the next succeeding Business Day, One-Month LIBOR
shall be  established  by the Trustee  and, as to any Interest  Accrual  Period,
shall equal the rate for one month United States dollar deposits that appears on
the Telerate Screen Page 3750 of the Moneyline  Telerate  Capital Markets Report
as of 11:00 a.m.,  London time,  on the LIBOR Rate  Adjustment  Date.  "Telerate
Screen  Page 3750"  means 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 Trustee
after  consultation  with the Master  Servicer),  the rate will be the Reference
Bank Rate.

      The "Reference  Bank Rate" will be determined on the basis of the rates at
which deposits in U.S.  Dollars are offered by the reference  banks (which shall
be any  three  major  banks  that are  engaged  in  transactions  in the  London
interbank  market,  selected by the Trustee after  consultation  with the Master
Servicer) as of 11:00 a.m.,  London time, on the LIBOR Rate  Adjustment  Date to
prime banks in the London  interbank market for a period of one month in amounts
approximately equal to the aggregate  Certificate Principal Balance of the LIBOR
Certificates  then  outstanding.  The Trustee shall request the principal London
office of each of the reference  banks to provide a quotation of its rate. If at
least two such quotations are provided,  the rate will be the arithmetic mean of
the quotations  rounded up to the next multiple of 1/16%.  If on such date fewer
than two quotations  are provided as requested,  the rate will be the arithmetic
mean of the rates  quoted by one or more major banks in New York City,  selected
by the Trustee after  consultation  with the Master Servicer,  as of 11:00 a.m.,
New York City time, on such date for loans in U.S.  Dollars to leading  European
banks for a period of one month in amounts  approximately equal to the aggregate
Certificate Principal Balance of the LIBOR Certificates then outstanding.  If no
such quotations can be obtained,  the rate will be One-Month LIBOR for the prior
Distribution Date; provided,  however, if, under the priorities described above,
One-Month  LIBOR for a Distribution  Date would be based on One-Month  LIBOR for
the previous Distribution Date for the third consecutive  Distribution Date, the
Trustee shall select an alternative comparable index (over which the Trustee has
no control),  used for determining  one-month  Eurodollar  lending rates that is
calculated and published (or otherwise made available) by an independent party.

      The  establishment  of  One-Month  LIBOR by the  Trustee on any LIBOR Rate
Adjustment  Date and the Trustee's  subsequent  calculation of the  Pass-Through
Rates  applicable to the LIBOR  Certificates  for the relevant  Interest Accrual
Period, in the absence of manifest error, will be final and binding.

                                       60
<PAGE>

      Promptly  following  each LIBOR Rate  Adjustment  Date the  Trustee  shall
supply the Master  Servicer with the results of its  determination  of One-Month
LIBOR  on  such   date.   Furthermore,   the   Trustee   shall   supply  to  any
Certificateholder  so calling the Bondholder  Inquiry Line at 1-800-275-2048 and
requesting the Pass-Through  Rate on the LIBOR  Certificates for the current and
the immediately preceding Interest Accrual Period.

                                       61
<PAGE>

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

      Section 2.01. Conveyance of Mortgage Loans

            (a) The  Depositor,  concurrently  with the  execution  and delivery
hereof,  does hereby  assign to the Trustee in respect of the Trust Fund without
recourse all the right,  title and  interest of the  Depositor in and to (i) the
Mortgage  Loans,  including all interest and principal on or with respect to the
Mortgage Loans due on or after the Cut-off Date (other than Monthly Payments due
in the month of the Cut-off Date);  and (ii) all proceeds of the foregoing.  The
Depositor,  the Master  Servicer  and the Trustee  agree that it is not intended
that any  mortgage  loan be  included  in the Trust  Fund  that is either  (i) a
High-Cost  Home Loan as defined in the New Jersey Home  Ownership  Act effective
November 27, 2003,  (ii) a High-Cost Home Loan as defined in the New Mexico Home
Loan  Protection Act effective  January 1, 2004,  (iii) a High-Cost Home Loan as
defined  in the  Massachusetts  Predatory  Home  Loan  Practices  Act  effective
November  7, 2004 or (iv) a High-Cost  Home Loan as defined in the Indiana  High
Cost Home Loan Law Act effective January 1, 2005.

            (b) In connection with such assignment,  and contemporaneously  with
the delivery of this Agreement, except as set forth in Section 2.01(c) below and
subject to Section 2.01(d) below,  the Depositor does hereby (1) with respect to
each  Mortgage  Loan,  deliver to the Master  Servicer  (or an  Affiliate of the
Master  Servicer) each of the documents or instruments  described in clause (ii)
below (and the Master Servicer shall hold (or cause such Affiliate to hold) such
documents  or  instruments  in trust for the use and  benefit of all present and
future  Certificateholders),  (2) with respect to each MOM Loan, deliver to, and
deposit with, the Trustee, or the Custodian,  as the duly appointed agent of the
Trustee for such purpose, the documents or instruments  described in clauses (i)
and (v) below, (3) with respect to each Mortgage Loan that is not a MOM Loan but
is registered on the MERS(R) System,  deliver to, and deposit with, the Trustee,
or the Custodian,  as the duly appointed  agent of the Trustee for such purpose,
the  documents or  instruments  described in clauses (i), (iv) and (v) below and
(4)  with  respect  to each  Mortgage  Loan  that is not a MOM  Loan  and is not
registered on the MERS(R) System,  deliver to, and deposit with, the Trustee, or
the Custodian,  as the duly appointed agent of the Trustee for such purpose, the
documents or instruments described in clauses (i), (iii), (iv) and (v) below.

                  (i) The original  Mortgage Note,  endorsed without recourse to
the order of the Trustee and showing an unbroken chain of endorsements  from the
originator thereof to the Person endorsing it to the Trustee, or with respect to
any Destroyed  Mortgage  Note, an original lost note  affidavit from the related
Seller or Residential  Funding stating that the original Mortgage Note was lost,
misplaced or destroyed, together with a copy of the related Mortgage Note.

                  (ii) The original Mortgage,  noting the presence of the MIN of
the Mortgage Loan and language  indicating  that the Mortgage Loan is a MOM Loan
if the Mortgage

                                       62
<PAGE>

Loan is a MOM Loan,  with evidence of recording  indicated  thereon or a copy of
the original Mortgage with evidence of recording indicated thereon.

                  (iii) The  assignment  (which may be  included  in one or more
blanket  assignments  if  permitted  by  applicable  law) of the Mortgage to the
Trustee  with  evidence  of  recording  indicated  thereon  or a  copy  of  such
assignment with evidence of recording indicated thereon.

                  (iv) The original  recorded  assignment or  assignments of the
Mortgage  showing an unbroken  chain of title from the  originator to the Person
assigning it to the Trustee (or to MERS,  if the Mortgage  Loan is registered on
the  MERS(R)  System  and  noting  the  presence  of a  MIN)  with  evidence  of
recordation noted thereon or attached  thereto,  or a copy of such assignment or
assignments of the Mortgage with evidence of recording indicated thereon.

                  (v) The original of each modification, assumption agreement or
preferred loan agreement,  if any,  relating to such Mortgage Loan, or a copy of
each modification, assumption agreement or preferred loan agreement.

      The Depositor may, in lieu of delivering the original of the documents set
forth in Section  2.01(b)(iii),  (iv) and (v) (or copies thereof) to the Trustee
or the Custodian,  deliver such documents to the Master Servicer, and the Master
Servicer  shall  hold such  documents  in trust for the use and  benefit  of all
present  and  future  Certificateholders  until such time as is set forth in the
next  sentence.  Within thirty  Business  Days  following the earlier of (i) the
receipt of the  original of all of the  documents  or  instruments  set forth in
Section  2.01(b) (iii),  (iv) and (v) (or copies  thereof) for any Mortgage Loan
and (ii) a written  request  by the  Trustee  to deliver  those  documents  with
respect  to any or all of the  Mortgage  Loans  then  being  held by the  Master
Servicer,  the Master Servicer shall deliver a complete set of such documents to
the Trustee or the Custodian, as duly appointed agent of the Trustee.

            (c)  Notwithstanding the provisions of Section 2.01(b), in the event
that in connection  with any Mortgage Loan, if the Depositor  cannot deliver the
original of the Mortgage, any assignment, modification,  assumption agreement or
preferred loan agreement (or copy thereof as permitted by Section  2.01(b)) with
evidence of recording  thereon  concurrently  with the execution and delivery of
this  Agreement  because of (i) a delay  caused by the public  recording  office
where such Mortgage, assignment, modification, assumption agreement or preferred
loan agreement as the case may be, has been delivered for recordation, or (ii) a
delay in the  receipt of certain  information  necessary  to prepare the related
assignments, the Depositor shall deliver or cause to be delivered to the Trustee
or the respective Custodian a copy of such Mortgage,  assignment,  modification,
assumption agreement or preferred loan agreement.

      The  Depositor  shall  promptly  cause to be recorded  in the  appropriate
public office for real  property  records the  Assignment  referred to in clause
(iii) of Section  2.01(b),  except (a) in states where, in an Opinion of Counsel
acceptable to the Master Servicer, such recording is not required to protect the
Trustee's  interests in the Mortgage  Loan or (b) if MERS is  identified  on the
Mortgage or on a properly recorded assignment of the Mortgage, as applicable, as
the  mortgagee  of record  solely as nominee  for  Residential  Funding  and its
successors and assigns.  If any Assignment is lost or returned unrecorded to the
Depositor  because  of  any  defect  therein,  the

                                       63
<PAGE>

Depositor shall prepare a substitute Assignment or cure such defect, as the case
may be,  and cause  such  Assignment  to be  recorded  in  accordance  with this
paragraph.  The Depositor shall promptly deliver or cause to be delivered to the
applicable  person  described in Section  2.01(b),  any Assignment or substitute
Assignment (or copy thereof)  recorded in connection with this  paragraph,  with
evidence of recording  indicated  thereon  upon receipt  thereof from the public
recording office or from the related Subservicer or Seller.

      If the Depositor delivers to the Trustee or Custodian any Mortgage Note or
Assignment  of  Mortgage  in blank,  the  Depositor  shall,  or shall  cause the
Custodian to,  complete the  endorsement of the Mortgage Note and the Assignment
of  Mortgage  in the  name  of the  Trustee  in  conjunction  with  the  Interim
Certification issued by the Custodian, as contemplated by Section 2.02.

      In connection  with the assignment of any Mortgage Loan  registered on the
MERS(R)  System,  the  Depositor  further  agrees  that  it will  cause,  at the
Depositor's  own expense,  within 30 Business Days after the Closing  Date,  the
MERS(R)  System to indicate that such  Mortgage  Loans have been assigned by the
Depositor to the Trustee in  accordance  with this  Agreement for the benefit of
the  Certificateholders by including (or deleting, in the case of Mortgage Loans
which are  repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection  with such Mortgage  Loans.  The Depositor  further agrees that it
will not, and will not permit the Master  Servicer  to, and the Master  Servicer
agrees  that it will not,  alter the codes  referenced  in this  paragraph  with
respect to any Mortgage Loan during the term of this Agreement  unless and until
such  Mortgage  Loan  is  repurchased  in  accordance  with  the  terms  of this
Agreement.

            (d) It is intended  that the  conveyances  by the  Depositor  to the
Trustee of the  Mortgage  Loans as  provided  for in this  Section  2.01 and the
Uncertificated  Regular Interests be construed as a sale by the Depositor to the
Trustee of the Mortgage Loans and the  Uncertificated  Regular Interests for the
benefit of the  Certificateholders.  Further,  it is not intended  that any such
conveyance be deemed to be a pledge of the Mortgage Loans and the Uncertificated
Regular  Interests  by the  Depositor  to the  Trustee to secure a debt or other
obligation of the Depositor.  Nonetheless,  (a) this Agreement is intended to be
and hereby is a security agreement within the meaning of Articles 8 and 9 of the
New York Uniform  Commercial  Code and the Uniform  Commercial Code of any other
applicable  jurisdiction;  (b) the conveyances provided for in this Section 2.01
shall be deemed to be (1) a grant by the  Depositor to the Trustee of a security
interest in all of the  Depositor's  right  (including the power to convey title
thereto), title and interest, whether now owned or hereafter acquired, in and to
(A) the Mortgage Loans,  including the related Mortgage Note, the Mortgage,  any
insurance policies and all other documents in the related Mortgage File, (B) all
amounts  payable  pursuant  to the  Mortgage  Loans  or the  Swap  Agreement  in
accordance with the terms thereof, (C) any Uncertificated  Regular Interests and
any and all general intangibles,  payment intangibles,  accounts, chattel paper,
instruments, documents, money, deposit accounts, certificates of deposit, goods,
letters of credit,  advices of credit and investment property and other property
of whatever kind or description  now existing or hereafter  acquired  consisting
of,  arising from or relating to any of the  foregoing,  and (D) all proceeds of
the  conversion,   voluntary  or  involuntary,   of  the  foregoing  into  cash,
instruments,  securities or other  property,  including  without  limitation all
amounts  from time to time held or

                                       64
<PAGE>

invested in the  Certificate  Account or the Custodial  Account,  whether in the
form of cash, instruments, securities or other property and (2) an assignment by
the  Depositor  to the  Trustee  of any  security  interest  in any  and  all of
Residential Funding's right (including the power to convey title thereto), title
and interest,  whether now owned or hereafter  acquired,  in and to the property
described  in the  foregoing  clauses  (1)(A),  (B),  (C)  and  (D)  granted  by
Residential Funding to the Depositor pursuant to the Assignment  Agreement;  (c)
the  possession by the Trustee,  the Custodian or any other agent of the Trustee
of Mortgage  Notes or such other items of  property as  constitute  instruments,
money,  payment  intangibles,  negotiable  documents,  goods,  deposit accounts,
letters  of  credit,  advices  of  credit,  investment  property,   certificated
securities  or chattel  paper shall be deemed to be  "possession  by the secured
party," or  possession  by a purchaser  or a person  designated  by such secured
party,  for  purposes  of  perfecting  the  security  interest  pursuant  to the
Minnesota Uniform  Commercial Code and the Uniform  Commercial Code of any other
applicable  jurisdiction as in effect (including,  without limitation,  Sections
8-106,  9-313 and 9-106 thereof);  and (d) notifications to persons holding such
property,  and  acknowledgments,  receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, securities intermediaries,  bailees or agents of, or persons
holding  for, (as  applicable)  the Trustee for the purpose of  perfecting  such
security interest under applicable law.

      The Depositor and, at the Depositor's  direction,  Residential Funding and
the Trustee  shall,  to the extent  consistent  with this  Agreement,  take such
reasonable  actions as may be necessary to ensure that, if this  Agreement  were
deemed  to  create  a  security   interest  in  the   Mortgage   Loans  and  the
Uncertificated  Regular  Interests and the other property  described above, such
security  interest would be deemed to be a perfected  security interest of first
priority under applicable law and will be maintained as such throughout the term
of this  Agreement.  Without  limiting  the  generality  of the  foregoing,  the
Depositor  shall  prepare and deliver to the Trustee not less than 15 days prior
to any filing date and, the Trustee shall forward for filing,  or shall cause to
be forwarded for filing, at the expense of the Depositor,  all filings necessary
to maintain  the  effectiveness  of any  original  filings  necessary  under the
Uniform  Commercial  Code  as in  effect  in any  jurisdiction  to  perfect  the
Trustee's   security  interest  in  or  lien  on  the  Mortgage  Loans  and  the
Uncertificated  Regular Interests,  as evidenced by an Officers'  Certificate of
the Depositor, including without limitation (x) continuation statements, and (y)
such  other  statements  as may be  occasioned  by (1)  any  change  of  name of
Residential  Funding,  the Depositor or the Trustee (such preparation and filing
shall be at the  expense  of the  Trustee,  if  occasioned  by a  change  in the
Trustee's  name),  (2) any change of  location  of the place of  business or the
chief executive office of Residential Funding or the Depositor, (3) any transfer
of any interest of Residential  Funding or the Depositor in any Mortgage Loan or
(4) any transfer of any interest of Residential  Funding or the Depositor in any
Uncertificated Regular Interests.

      Section 2.02. Acceptance by Trustee.

      The Trustee  acknowledges  receipt  (or,  with  respect to Mortgage  Loans
subject  to  a  Custodial  Agreement,   and  based  solely  upon  a  receipt  or
certification executed by the Custodian,  receipt by the respective Custodian as
the duly appointed agent of the Trustee) of the documents referred to in Section
2.01(b)(i)  above  (except  that for  purposes of such  acknowledgement  only, a
Mortgage  Note may be endorsed in blank and an  Assignment of Mortgage may be in
blank) and declares that it, or the Custodian as its agent,  holds and will hold
such  documents  and the

                                       65
<PAGE>

other documents constituting a part of the Custodial Files delivered to it, or a
Custodian  as its agent,  in trust for the use and  benefit of all  present  and
future  Certificateholders.  The Trustee or Custodian  (the  Custodian  being so
obligated   under  a   Custodial   Agreement)   agrees,   for  the   benefit  of
Certificateholders,  to review each  Custodial  File delivered to it pursuant to
Section  2.01(b)  within 90 days after the Closing  Date to  ascertain  that all
required  documents  (specifically as set forth in Section  2.01(b)),  have been
executed and  received,  and that such  documents  relate to the Mortgage  Loans
identified  on the  Mortgage  Loan  Schedule,  as  supplemented,  that have been
conveyed  to it, and to  deliver  to the  Trustee a  certificate  (the  "Interim
Certification")  to the  effect  that all  documents  required  to be  delivered
pursuant to Section  2.01(b) above have been executed and received and that such
documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule,
except  for any  exceptions  listed  on  Schedule  A  attached  to such  Interim
Certification.  Upon  delivery of the  Custodial  Files by the  Depositor or the
Master  Servicer,  the Trustee  shall  acknowledge  receipt (or, with respect to
Mortgage Loans subject to a Custodial Agreement, and based solely upon a receipt
or certification executed by the Custodian,  receipt by the respective Custodian
as the duly  appointed  agent of the  Trustee) of the  documents  referred to in
Section 2.01(b) above.

      If the Custodian,  as the Trustee's agent, finds any document or documents
constituting a part of a Custodial File to be missing or defective, upon receipt
of notification from the Custodian as specified in the succeeding sentence,  the
Trustee  shall  promptly so notify or cause the  Custodian  to notify the Master
Servicer and the Depositor.  Pursuant to Section 2.3 of the Custodial Agreement,
the Custodian will notify the Master Servicer,  the Depositor and the Trustee of
any such omission or defect found by it in respect of any Custodial File held by
it in respect of the items  received by it pursuant to the Custodial  Agreement.
If such omission or defect materially and adversely affects the interests in the
related  Mortgage  Loan of the  Certificateholders,  the Master  Servicer  shall
promptly notify the related Subservicer or Seller of such omission or defect and
request that such  Subservicer or Seller correct or cure such omission or defect
within 60 days from the date the Master  Servicer was notified of such  omission
or defect  and,  if such  Subservicer  or Seller  does not  correct or cure such
omission or defect within such period,  that such Subservicer or Seller purchase
such  Mortgage  Loan from the Trust Fund at its Purchase  Price,  in either case
within 90 days from the date the Master  Servicer was notified of such  omission
or defect; provided that if the omission or defect would cause the Mortgage Loan
to be other than a "qualified  mortgage" as defined in Section 860G(a)(3) of the
Code,  any such cure or repurchase  must occur within 90 days from the date such
breach was  discovered.  The Purchase  Price for any such Mortgage Loan shall be
deposited  or caused to be  deposited  by the Master  Servicer in the  Custodial
Account  maintained  by it pursuant  to Section  3.07 and,  upon  receipt by the
Trustee of written  notification of such deposit signed by a Servicing  Officer,
the Trustee, Master Servicer or the Custodian, as the case may be, shall release
the contents of any related Mortgage File in its possession to the owner of such
Mortgage  Loan (or such  owner's  designee)  and the Trustee  shall  execute and
deliver  such  instruments  of  transfer  or  assignment  prepared by the Master
Servicer,  in each case without  recourse,  as shall be necessary to vest in the
Subservicer  or Seller or its  designee,  as the case may be, any Mortgage  Loan
released  pursuant hereto and thereafter such Mortgage Loan shall not be part of
the Trust  Fund.  In  furtherance  of the  foregoing  and Section  2.04,  if the
Subservicer or Seller or Residential  Funding that repurchases the Mortgage Loan
is not a member of MERS and the Mortgage is  registered  on the MERS(R)  System,
the Master Servicer,  at its own expense and without any right of reimbursement,
shall  cause MERS to  execute  and  deliver an  assignment  of the  Mortgage  in

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recordable form to transfer the Mortgage from MERS to such Subservicer or Seller
or  Residential  Funding  and shall  cause  such  Mortgage  to be  removed  from
registration   on  the  MERS(R)  System  in  accordance  with  MERS'  rules  and
regulations.  It is understood and agreed that the obligation of the Subservicer
or Seller,  to so cure or purchase any Mortgage  Loan as to which a material and
adverse defect in or omission of a constituent  document exists shall constitute
the  sole   remedy   respecting   such   defect   or   omission   available   to
Certificateholders or the Trustee on behalf of Certificateholders.

      Section  2.03.  Representations,  Warranties  and  Covenants of the Master
Servicer and the Depositor

            (a) The  Master  Servicer  hereby  represents  and  warrants  to the
Trustee for the benefit of the Certificateholders that as of the Closing Date:

                  (i) The Master  Servicer is a limited  liability  company duly
organized,  validly  existing and in good standing  under the laws governing its
creation and  existence  and is or will be in  compliance  with the laws of each
state in which any  Mortgaged  Property  is located to the extent  necessary  to
ensure the  enforceability of each Mortgage Loan in accordance with the terms of
this Agreement;

                  (ii) The  execution  and  delivery  of this  Agreement  by the
Master  Servicer  and its  performance  and  compliance  with the  terms of this
Agreement  will not violate the Master  Servicer's  Certificate  of Formation or
Limited  Liability  Company  Agreement or  constitute a material  default (or an
event which,  with notice or lapse of time, or both, would constitute a material
default)  under,  or result in the material  breach of, any  material  contract,
agreement or other  instrument to which the Master  Servicer is a party or which
may be applicable to the Master Servicer or any of its assets;

                  (iii) This Agreement,  assuming due  authorization,  execution
and delivery by the Trustee and the  Depositor,  constitutes a valid,  legal and
binding obligation of the Master Servicer,  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;

                  (iv) The Master Servicer 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 Master  Servicer or its properties or might have  consequences
that would materially adversely affect its performance hereunder;

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

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<PAGE>

                  (vi) The Master Servicer shall comply in all material respects
in the performance of this Agreement with all reasonable  rules and requirements
of each insurer under each Required Insurance Policy;

                  (vii) No  information,  certificate  of an officer,  statement
furnished in writing or report delivered to the Depositor,  any Affiliate of the
Depositor or the Trustee by the Master  Servicer  will,  to the knowledge of the
Master  Servicer,  contain  any untrue  statement  of a material  fact or omit a
material  fact  necessary  to make the  information,  certificate,  statement or
report not misleading;

                  (viii) The Master  Servicer has examined  each  existing,  and
will examine each new,  Subservicing  Agreement  and is or will be familiar with
the terms thereof.  The terms of each existing  Subservicing  Agreement and each
designated  Subservicer  are  acceptable  to the  Master  Servicer  and  any new
Subservicing Agreements will comply with the provisions of Section 3.02;

                  (ix) The Master Servicer is a member of MERS in good standing,
and will comply in all material  respects with the rules and  procedures of MERS
in connection  with the servicing of the Mortgage Loans that are registered with
MERS; and

                  (x) The Servicing Guide of the Master  Servicer  requires that
the Subservicer for each Mortgage Loan accurately and fully reports its borrower
credit files to each of the Credit Repositories in a timely manner.

It is understood and agreed that the representations and warranties set forth in
this Section 2.03(a) shall survive delivery of the respective Custodial Files to
the Trustee or the Custodian. Upon discovery by either the Depositor, the Master
Servicer,  the Trustee or the  Custodian  of a breach of any  representation  or
warranty  set forth in this  Section  2.03(a)  which  materially  and  adversely
affects the interests of the  Certificateholders in any Mortgage Loan, the party
discovering  such breach shall give prompt  written  notice to the other parties
(the Custodian being so obligated under a Custodial  Agreement).  Within 90 days
of its  discovery or its receipt of notice of such breach,  the Master  Servicer
shall either (i) cure such breach in all material respects or (ii) to the extent
that such  breach is with  respect  to a  Mortgage  Loan or a related  document,
purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the
manner set forth in Section  2.02;  provided  that if the breach would cause the
Mortgage  Loan to be other  than a  "qualified  mortgage"  as defined in Section
860G(a)(3) of the Code,  any such cure or  repurchase  must occur within 90 days
from the date such breach was discovered.  The obligation of the Master Servicer
to cure such breach or to so purchase such Mortgage  Loan shall  constitute  the
sole remedy in respect of a breach of a representation and warranty set forth in
this  Section  2.03(a)  available  to the  Certificateholders  or the Trustee on
behalf of the Certificateholders.

            (b) The Depositor hereby  represents and warrants to the Trustee for
the  benefit  of the  Certificateholders  that as of the  Closing  Date (or,  if
otherwise  specified below, as of the date so specified):  (i) immediately prior
to the conveyance of the Mortgage  Loans to the Trustee,  the Depositor had good
title to, and was the sole owner of,  each  Mortgage  Loan free and clear of any
pledge,  lien,  encumbrance or security interest (other than rights to servicing
and

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<PAGE>

related  compensation) and such conveyance  validly  transfers  ownership of the
Mortgage Loans to the Trustee free and clear of any pledge, lien, encumbrance or
security interest;  and (ii) each Mortgage Loan constitutes a qualified mortgage
under  Section  860G(a)(3)(A)  of the  Code  and  Treasury  Regulations  Section
1.860G-2(a)(1).

      It is understood  and agreed that the  representations  and warranties set
forth in this Section 2.03(b) shall survive delivery of the respective Custodial
Files to the Trustee or the Custodian.

      Upon discovery by any of the Depositor,  the Master Servicer,  the Trustee
or the Custodian of a breach of any of the  representations  and  warranties set
forth in this  Section  2.03(b)  which  materially  and  adversely  affects  the
interests of the  Certificateholders in any Mortgage Loan, the party discovering
such breach shall give prompt written notice to the other parties (the Custodian
being so obligated under a Custodial Agreement);  provided, however, that in the
event of a breach  of the  representation  and  warranty  set  forth in  Section
2.03(b)(ii),  the party  discovering  such breach shall give such notice  within
five days of discovery. Within 90 days of its discovery or its receipt of notice
of breach,  the  Depositor  shall  either (i) cure such  breach in all  material
respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase
Price and in the manner set forth in Section  2.02;  provided that the Depositor
shall have the option to  substitute  a Qualified  Substitute  Mortgage  Loan or
Loans  for such  Mortgage  Loan if such  substitution  occurs  within  two years
following the Closing Date;  provided that if the omission or defect would cause
the Mortgage Loan to be other than a "qualified  mortgage" as defined in Section
860G(a)(3) of the Code,  any such cure,  substitution  or repurchase  must occur
within 90 days from the date such breach was discovered.  Any such  substitution
shall be  effected  by the  Depositor  under the same  terms and  conditions  as
provided  in  Section  2.04 for  substitutions  by  Residential  Funding.  It is
understood  and agreed that the  obligation of the Depositor to cure such breach
or to so purchase or substitute  for any Mortgage Loan as to which such a breach
has occurred and is continuing shall constitute the sole remedy  respecting such
breach  available  to the  Certificateholders  or the  Trustee  on behalf of the
Certificateholders.  Notwithstanding  the foregoing,  the Depositor shall not be
required  to cure  breaches  or purchase or  substitute  for  Mortgage  Loans as
provided  in  this  Section  2.03(b)  if  the  substance  of  the  breach  of  a
representation  set forth above also constitutes fraud in the origination of the
Mortgage Loan.

      Section 2.04. Representations and Warranties of Residential Funding

      The  Depositor,  as assignee of  Residential  Funding under the Assignment
Agreement,   hereby   assigns   to  the   Trustee   for  the   benefit   of  the
Certificateholders  all of its  right,  title and  interest  in  respect  of the
Assignment  Agreement  applicable  to a  Mortgage  Loan as and to the extent set
forth in the Assignment  Agreement.  Insofar as the Assignment Agreement relates
to the  representations and warranties made by Residential Funding in respect of
such Mortgage Loan and any remedies  provided  thereunder for any breach of such
representations  and warranties,  such right, title and interest may be enforced
by the Master Servicer on behalf of the Trustee and the Certificateholders. Upon
the  discovery  by the  Depositor,  the  Master  Servicer,  the  Trustee  or the
Custodian of a breach of any of the  representations  and warranties made in the
Assignment  Agreement in respect of any Mortgage Loan or of any Repurchase Event
which materially and adversely  affects the interests of the  Certificateholders
in such  Mortgage  Loan,

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<PAGE>

the party  discovering such breach shall give prompt written notice to the other
parties (the  Custodian  being so obligated  under a Custodial  Agreement).  The
Master  Servicer shall  promptly  notify  Residential  Funding of such breach or
Repurchase  Event and  request  that  Residential  Funding  either (i) cure such
breach or Repurchase Event in all material respects within 90 days from the date
the Master  Servicer  was  notified of such breach or  Repurchase  Event or (ii)
purchase such Mortgage Loan from the Trust Fund at the Purchase Price and in the
manner set forth in Section 2.02.

      Upon the discovery by the Depositor,  the Master Servicer,  the Trustee or
the  Custodian of a breach of any of such  representations  and  warranties  set
forth  in the  Assignment  Agreement  in  respect  of any  Mortgage  Loan  which
materially and adversely affects the interests of the Certificateholders in such
Mortgage  Loan,  the party  discovering  such breach  shall give prompt  written
notice to the other parties (the Custodian  being so obligated under a Custodial
Agreement).  The Master  Servicer shall promptly notify  Residential  Funding of
such  breach  of a  representation  or  warranty  set  forth  in the  Assignment
Agreement and request that  Residential  Funding  either (i) cure such breach in
all  material  respects  within 90 days from the date the  Master  Servicer  was
notified of such breach or (ii)  purchase such Mortgage Loan from the Trust Fund
within 90 days of the date of such written notice of such breach at the Purchase
Price and in the manner set forth in Section  2.02;  provided  that  Residential
Funding shall have the option to substitute a Qualified Substitute Mortgage Loan
or Loans for such  Mortgage  Loan if such  substitution  occurs within two years
following the Closing Date; provided that if the breach would cause the Mortgage
Loan to be other than a "qualified mortgage" as defined in Section 860G(a)(3) of
the Code, any such cure or substitution  must occur within 90 days from the date
the breach was  discovered.  If the breach of  representation  and warranty that
gave rise to the obligation to repurchase or substitute a Mortgage Loan pursuant
to Section 4 of the Assignment Agreement was the representation and warranty set
forth in clause (w) of Section 4 thereof, then the Master Servicer shall request
that  Residential  Funding  pay to the  Trust  Fund,  concurrently  with  and in
addition to the remedies provided in the preceding sentence,  an amount equal to
any liability,  penalty or expense that was actually incurred and paid out of or
on behalf of the Trust Fund, and that directly  resulted from such breach, or if
incurred and paid by the Trust Fund thereafter,  concurrently with such payment.
In  the  event  that  Residential  Funding  elects  to  substitute  a  Qualified
Substitute  Mortgage Loan or Loans for a Deleted  Mortgage Loan pursuant to this
Section 2.04,  Residential  Funding shall deliver to the Trustee for the benefit
of the  Certificateholders  with respect to such Qualified  Substitute  Mortgage
Loan or Loans,  the original  Mortgage Note, the Mortgage,  an Assignment of the
Mortgage in recordable  form,  and such other  documents  and  agreements as are
required by Section 2.01, with the Mortgage Note endorsed as required by Section
2.01. No substitution will be made in any calendar month after the Determination
Date for such month.  Monthly Payments due with respect to Qualified  Substitute
Mortgage Loans in the month of substitution  shall not be part of the Trust Fund
and will be retained by the Master  Servicer and remitted by the Master Servicer
to Residential  Funding on the next succeeding  Distribution Date. For the month
of  substitution,  distributions  to the  Certificateholders  will  include  the
Monthly  Payment due on a Deleted  Mortgage  Loan for such month and  thereafter
Residential  Funding shall be entitled to retain all amounts received in respect
of such Deleted  Mortgage Loan.  The Master  Servicer shall amend or cause to be
amended the Mortgage Loan Schedule for the benefit of the  Certificateholders to
reflect the removal of such Deleted  Mortgage Loan and the  substitution  of the
Qualified  Substitute  Mortgage  Loan or Loans  and the  Master  Servicer  shall
deliver  the  amended   Mortgage  Loan

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<PAGE>

Schedule  to the  Trustee.  Upon such  substitution,  the  Qualified  Substitute
Mortgage  Loan or Loans shall be subject to the terms of this  Agreement and the
related  Subservicing  Agreement in all respects,  Residential  Funding shall be
deemed to have made the  representations  and  warranties  with  respect  to the
Qualified  Substitute  Mortgage Loan (other than those of a statistical  nature)
contained in the Assignment  Agreement as of the date of  substitution,  and the
covenants, representations and warranties set forth in this Section 2.04, and in
Section 2.03(b) hereof.

      In connection with the  substitution  of one or more Qualified  Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer shall
determine  the amount (if any) by which the aggregate  principal  balance of all
such Qualified  Substitute Mortgage Loans as of the date of substitution is less
than the aggregate Stated  Principal  Balance of all such Deleted Mortgage Loans
(in each case after application of the principal portion of the Monthly Payments
due  in  the  month  of   substitution   that  are  to  be  distributed  to  the
Certificateholders  in the month of  substitution).  Residential  Funding  shall
deposit or cause the related Seller to deposit the amount of such shortfall into
the  Custodial  Account on the day of  substitution,  without any  reimbursement
therefor.  Residential  Funding  shall give  notice in writing to the Trustee of
such event, which notice shall be accompanied by an Officers'  Certificate as to
the  calculation  of such  shortfall  and  (subject to Section  10.01(f))  by an
Opinion of Counsel to the effect that such  substitution  will not cause (a) any
federal tax to be imposed on the Trust Fund,  including without limitation,  any
federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of the
Code or on  "contributions  after the startup date" under Section  860G(d)(1) of
the Code or (b) any portion of any REMIC created hereunder to fail to qualify as
a REMIC at any time that any Certificate is outstanding.

      It is  understood  and  agreed  that  the  obligation  of  the  Seller  or
Residential Funding, as the case may be, to cure such breach or purchase (and in
the case of  Residential  Funding to  substitute  for) such  Mortgage Loan as to
which such a breach has occurred and is  continuing  and to make any  additional
payments required under the Assignment  Agreement in connection with a breach of
the  representation  and  warranty  in clause  (w) of  Section  4 thereof  shall
constitute   the  sole  remedy   respecting   such  breach   available   to  the
Certificateholders  or the Trustee on behalf of the  Certificateholders.  If the
Master  Servicer is  Residential  Funding,  then the Trustee shall also have the
right to give the notification and require the purchase or substitution provided
for in the  second  preceding  paragraph  in the  event  of such a  breach  of a
representation  or  warranty  made  by  Residential  Funding  in the  Assignment
Agreement.  In  connection  with the  purchase of or  substitution  for any such
Mortgage Loan by  Residential  Funding,  the Trustee shall assign to Residential
Funding  all of the  Trustee's  right,  title and  interest  in  respect  of the
Assignment Agreement applicable to such Mortgage Loan.

      Section 2.05. Execution and Authentication of Certificates;  Conveyance of
Uncertificated REMIC Regular Interests

            (a) The Trustee  acknowledges  the  assignment to it of the Mortgage
Loans and the  delivery of the  Custodial  Files to it, or the  Custodian on its
behalf,  subject to any exceptions noted,  together with the assignment to it of
all  other  assets  included  in the  Trust  Fund,  receipt  of which is  hereby
acknowledged.  Concurrently  with such  delivery and in exchange  therefor,  the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor,

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<PAGE>

has executed and caused to be  authenticated  and delivered to or upon the order
of the Depositor the  [Certificates in authorized  denominations  which evidence
ownership of the entire Trust Fund].

            (b) [The  Depositor,  concurrently  with the  execution and delivery
hereof, does hereby transfer,  assign, set over and otherwise convey in trust to
the Trustee without recourse all the right,  title and interest of the Depositor
in and to the REMIC I Regular  Interests and the REMIC II Regular  Interests for
the benefit of the Holders of each Class of  Certificates  (other than the Class
R-I  Certificates  and the Class R-II  Certificates).  The Trustee  acknowledges
receipt of the REMIC I Regular  Interests and the REMIC II Regular Interests and
declares that it holds and will hold the same in trust for the exclusive use and
benefit of the Holders of each Class of  Certificates  (other than the Class R-I
Certificates and the Class R-II  Certificates).  The interests  evidenced by the
Class  R-III  Certificates,  together  with the  REMIC  III  Regular  Interests,
constitute the entire beneficial ownership interest in REMIC III.]

      Section 2.06. Purposes and Powers of the Trust

      The  purpose  of the  trust,  as  created  hereunder,  is to engage in the
following activities:

            (a) to sell the  Certificates  to the  Depositor in exchange for the
Mortgage Loans;

            (b) to enter into and perform its obligations under this Agreement;

            (c) to engage in those  activities  that are necessary,  suitable or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith; and

            (d) subject to  compliance  with this  Agreement,  to engage in such
other activities as may be required in connection with conservation of the Trust
Fund and the making of distributions to the Certificateholders.

      The trust is hereby  authorized  to  engage in the  foregoing  activities.
Notwithstanding  the provisions of Section 11.01,  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 Agreement  while any  Certificate is
outstanding,  and this Section  2.06 may not be amended,  without the consent of
the  Certificateholders  evidencing a majority of the aggregate Voting Rights of
the Certificates.

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                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

      Section 3.01. Master Servicer to Act as Servicer

            (a) The Master  Servicer  shall service and  administer the Mortgage
Loans in accordance with the terms of this Agreement and the respective Mortgage
Loans,  following such  procedures as it would employ in its good faith business
judgment  and  which are  normal  and usual in its  general  mortgage  servicing
activities,  and shall have full power and  authority,  acting  alone or through
Subservicers  as provided in Section 3.02, to do any and all things which it may
deem   necessary  or   desirable  in   connection   with  such   servicing   and
administration.  Without  limiting the generality of the  foregoing,  the Master
Servicer in its own name or in the name of a  Subservicer  is hereby  authorized
and empowered by the Trustee when the Master Servicer or the Subservicer, as the
case may be,  believes  it  appropriate  in its best  judgment,  to execute  and
deliver, on behalf of the Certificateholders and the Trustee or any of them, any
and all  instruments  of  satisfaction  or  cancellation,  or of partial or full
release or discharge,  or of consent to assumption or modification in connection
with a proposed  conveyance,  or of assignment of any Mortgage and Mortgage Note
in connection  with the  repurchase of a Mortgage Loan and all other  comparable
instruments,  or with respect to the  modification or re-recording of a Mortgage
for the purpose of correcting the Mortgage, the subordination of the lien of the
Mortgage in favor of a public utility company or government  agency or unit with
powers of  eminent  domain,  the  taking of a deed in lieu of  foreclosure,  the
commencement, prosecution or completion of judicial or non-judicial foreclosure,
the conveyance of a Mortgaged  Property to the related insurer,  the acquisition
of any property  acquired by foreclosure or deed in lieu of foreclosure,  or the
management,  marketing and conveyance of any property acquired by foreclosure or
deed in lieu of foreclosure  with respect to the Mortgage Loans and with respect
to the Mortgaged  Properties.  The Master  Servicer  further is  authorized  and
empowered by the Trustee, on behalf of the  Certificateholders  and the Trustee,
in its own name or in the name of the  Subservicer,  when the Master Servicer or
the  Subservicer,  as the case may be,  believes it is  appropriate  in its best
judgment to register  any  Mortgage  Loan on the  MERS(R)  System,  or cause the
removal from the  registration  of any Mortgage Loan on the MERS(R)  System,  to
execute and deliver, on behalf of the Trustee and the  Certificateholders or any
of them, any and all instruments of assignment and other comparable  instruments
with respect to such  assignment  or  re-recording  of a Mortgage in the name of
MERS,  solely as nominee for the Trustee and its  successors  and  assigns.  Any
expenses  incurred in  connection  with the actions  described in the  preceding
sentence  shall be borne by the  Master  Servicer  in  accordance  with  Section
3.16(c), with no right of reimbursement;  provided, that if, as a result of MERS
discontinuing  or becoming unable to continue  operations in connection with the
MERS(R)  System,   it  becomes  necessary  to  remove  any  Mortgage  Loan  from
registration  on the  MERS(R)  System and to arrange for the  assignment  of the
related   Mortgages  to  the  Trustee,   then  any  related  expenses  shall  be
reimbursable  to the  Master  Servicer  as set  forth  in  Section  3.10(a)(ii).
Notwithstanding the foregoing,  subject to Section 3.07(a),  the Master Servicer
shall not permit any  modification  with respect to any Mortgage Loan that would
both  constitute a sale or exchange of such  Mortgage Loan within the meaning of
Section  1001 of the  Code and any  proposed,  temporary  or  final  regulations
promulgated  thereunder (other than in connection with a proposed  conveyance or
assumption of

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<PAGE>

such Mortgage Loan that is treated as a Principal Prepayment in Full pursuant to
Section 3.13(d) hereof) and cause any REMIC created hereunder to fail to qualify
as a REMIC under the Code.  The Trustee shall  furnish the Master  Servicer with
any powers of attorney and other  documents  necessary or  appropriate to enable
the Master  Servicer to service and administer the Mortgage  Loans.  The Trustee
shall  not be  liable  for  any  action  taken  by the  Master  Servicer  or any
Subservicer pursuant to such powers of attorney or other documents. In servicing
and administering any  Nonsubserviced  Mortgage Loan, the Master Servicer shall,
to the extent not  inconsistent  with this  Agreement,  comply  with the Program
Guide as if it were the  originator  of such  Mortgage Loan and had retained the
servicing  rights  and  obligations  in  respect  thereof.  In  connection  with
servicing and  administering  the Mortgage  Loans,  the Master  Servicer and any
Affiliate of the Master Servicer (i) may perform services such as appraisals and
brokerage services that are customarily provided by Persons other than servicers
of mortgage loans, and shall be entitled to reasonable  compensation therefor in
accordance  with Section 3.10 and (ii) may, at its own  discretion and on behalf
of the Trustee, obtain credit information in the form of a "credit score" from a
credit repository.

            (b) All costs incurred by the Master  Servicer or by Subservicers in
effecting the timely payment of taxes and assessments on the properties  subject
to the  Mortgage  Loans  shall  not,  for the  purpose  of  calculating  monthly
distributions to the Certificateholders,  be added to the amount owing under the
related Mortgage Loans,  notwithstanding that the terms of such Mortgage Loan so
permit,  and such costs shall be recoverable to the extent  permitted by Section
3.10(a)(ii).

            (c) The Master  Servicer  may enter into one or more  agreements  in
connection with the offering of pass-through  certificates  evidencing interests
in one or more of the  Certificates  providing  for the  payment  by the  Master
Servicer of amounts  received by the Master  Servicer as servicing  compensation
hereunder and required to cover certain  Prepayment  Interest  Shortfalls on the
Mortgage Loans, which payment obligation will thereafter be an obligation of the
Master Servicer hereunder.

      Section  3.02.   Subservicing   Agreements  Between  Master  Servicer  and
Subservicers; Enforcement of Subservicers' Obligations; Special Servicing

            (a)  The  Master  Servicer  may  continue  in  effect   Subservicing
Agreements  entered into by Residential  Funding and  Subservicers  prior to the
execution and delivery of this  Agreement,  and may enter into new  Subservicing
Agreements with  Subservicers,  for the servicing and  administration  of all or
some of the Mortgage Loans.  Each Subservicer shall be either (i) an institution
the  accounts  of which are  insured  by the FDIC or (ii)  another  entity  that
engages in the business of  originating  or  servicing  mortgage  loans,  and in
either case shall be authorized  to transact  business in the state or states in
which the related Mortgaged Properties it is to service are situated,  if and to
the extent  required by applicable law to enable the  Subservicer to perform its
obligations hereunder and under the Subservicing  Agreement,  and in either case
shall be a Freddie  Mac,  Fannie Mae or HUD  approved  mortgage  servicer.  Each
Subservicer  of a Mortgage  Loan shall be entitled  to receive  and  retain,  as
provided in the related Subservicing  Agreement and in Section 3.07, the related
Subservicing Fee from payments of interest  received on such Mortgage Loan after
payment of all amounts required to be remitted to the Master Servicer in respect
of such Mortgage Loan. For any Mortgage Loan that is a  Nonsubserviced

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Mortgage  Loan,  the Master  Servicer shall be entitled to receive and retain an
amount  equal to the  Subservicing  Fee from  payments of  interest.  Unless the
context otherwise requires,  references in this Agreement to actions taken or to
be taken by the Master  Servicer in servicing the Mortgage Loans include actions
taken or to be taken by a  Subservicer  on behalf of the Master  Servicer.  Each
Subservicing  Agreement  will be upon such terms and conditions as are generally
required  by,  permitted  by or  consistent  with the Program  Guide and are not
inconsistent  with this Agreement and as the Master Servicer and the Subservicer
have  agreed.  With the  approval  of the Master  Servicer,  a  Subservicer  may
delegate  its  servicing   obligations  to  third-party   servicers,   but  such
Subservicer will remain obligated under the related Subservicing Agreement.  The
Master  Servicer  and a  Subservicer  may enter  into  amendments  thereto  or a
different form of Subservicing  Agreement,  and the form referred to or included
in the Program Guide is merely  provided for information and shall not be deemed
to limit in any respect the discretion of the Master Servicer to modify or enter
into  different  Subservicing  Agreements;  provided,  however,  that  any  such
amendments  or  different  forms  shall be  consistent  with and not violate the
provisions of either this Agreement or the Program Guide in a manner which would
materially  and adversely  affect the interests of the  Certificateholders.  The
Program  Guide and any other  Subservicing  Agreement  entered  into between the
Master Servicer and any Subservicer  shall require the Subservicer to accurately
and fully report its borrower credit files to each of the Credit Repositories in
a timely manner.

            (b) As  part  of its  servicing  activities  hereunder,  the  Master
Servicer, for the benefit of the Trustee and the  Certificateholders,  shall use
its best reasonable efforts to enforce the obligations of each Subservicer under
the related Subservicing Agreement and of each Seller under the related Seller's
Agreement,  to the extent that the  non-performance of any such obligation would
have a material  and  adverse  effect on a  Mortgage  Loan,  including,  without
limitation,  the  obligation to purchase a Mortgage Loan on account of defective
documentation,  as  described  in Section  2.02,  or on account of a breach of a
representation  or warranty,  as described in Section  2.04.  Such  enforcement,
including,  without limitation,  the legal prosecution of claims, termination of
Subservicing Agreements or Seller's Agreements, as appropriate,  and the pursuit
of other appropriate remedies,  shall be in such form and carried out to such an
extent and at such time as the Master  Servicer  would  employ in its good faith
business  judgment  and  which are  normal  and  usual in its  general  mortgage
servicing  activities.   The  Master  Servicer  shall  pay  the  costs  of  such
enforcement at its own expense, and shall be reimbursed therefor only (i) from a
general  recovery  resulting from such  enforcement to the extent,  if any, that
such recovery exceeds all amounts due in respect of the related Mortgage Loan or
(ii) from a specific  recovery of costs,  expenses or attorneys fees against the
party against whom such  enforcement is directed.  For purposes of clarification
only,  the parties  agree that the  foregoing  is not intended to, and does not,
limit the ability of the Master  Servicer to be reimbursed for expenses that are
incurred in connection  with the  enforcement of a Seller's  obligations and are
reimbursable pursuant to Section 3.10(a)(vii).

      Section 3.03. Successor Subservicers

      The Master  Servicer  shall be  entitled  to  terminate  any  Subservicing
Agreement  that may exist in  accordance  with the terms and  conditions of such
Subservicing  Agreement and without any limitation by virtue of this  Agreement;
provided,  however,  that  in the  event  of  termination  of  any  Subservicing
Agreement by the Master Servicer or the  Subservicer,  the Master Servicer shall

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either act as servicer of the related Mortgage Loan or enter into a Subservicing
Agreement with a successor  Subservicer  which will be bound by the terms of the
related  Subservicing  Agreement.  If the Master  Servicer or any  Affiliate  of
Residential  Funding  acts as  servicer,  it will not assume  liability  for the
representations  and  warranties of the  Subservicer  which it replaces.  If the
Master  Servicer   enters  into  a  Subservicing   Agreement  with  a  successor
Subservicer,  the  Master  Servicer  shall use  reasonable  efforts  to have the
successor  Subservicer assume liability for the  representations  and warranties
made by the terminated Subservicer in respect of the related Mortgage Loans and,
in the event of any such  assumption  by the successor  Subservicer,  the Master
Servicer may, in the exercise of its business  judgment,  release the terminated
Subservicer from liability for such representations and warranties.

      Section 3.04. Liability of the Master Servicer

      Notwithstanding any Subservicing Agreement,  any of the provisions of this
Agreement relating to agreements or arrangements  between the Master Servicer or
a Subservicer  or reference to actions taken through a Subservicer or otherwise,
the  Master  Servicer  shall  remain  obligated  and liable to the  Trustee  and
Certificateholders  for the servicing and administering of the Mortgage Loans in
accordance  with the  provisions  of Section  3.01  without  diminution  of such
obligation   or  liability  by  virtue  of  such   Subservicing   Agreements  or
arrangements  or by  virtue  of  indemnification  from  the  Subservicer  or the
Depositor  and to the same extent and under the same terms and  conditions as if
the Master Servicer alone were servicing and  administering  the Mortgage Loans.
The  Master  Servicer  shall be  entitled  to enter  into any  agreement  with a
Subservicer  or Seller for  indemnification  of the Master  Servicer and nothing
contained  in  this   Agreement   shall  be  deemed  to  limit  or  modify  such
indemnification.

      Section 3.05. No Contractual  Relationship Between Subservicer and Trustee
or Certificateholders

      Any  Subservicing  Agreement  that  may be  entered  into  and  any  other
transactions or services  relating to the Mortgage Loans involving a Subservicer
in its capacity as such and not as an  originator  shall be deemed to be between
the   Subservicer   and  the  Master   Servicer   alone  and  the   Trustee  and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights,  obligations,  duties or liabilities  with respect to the Subservicer in
its  capacity  as such  except  as set  forth in  Section  3.06.  The  foregoing
provision  shall  not in any way  limit a  Subservicer's  obligation  to cure an
omission or defect or to  repurchase  a Mortgage  Loan as referred to in Section
2.02 hereof.

      Section 3.06.  Assumption or  Termination  of  Subservicing  Agreements by
Trustee

            (a) In the event the Master  Servicer shall for any reason no longer
be the  master  servicer  (including  by  reason  of an Event of  Default),  the
Trustee,  its designee or its successor shall thereupon assume all of the rights
and  obligations of the Master Servicer under each  Subservicing  Agreement that
may have been entered into. The Trustee,  its designee or the successor servicer
for the Trustee  shall be deemed to have  assumed  all of the Master  Servicer's
interest  therein  and to have  replaced  the Master  Servicer as a party to the
Subservicing  Agreement to the same extent as if the Subservicing  Agreement had
been assigned to the

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assuming party except that the Master  Servicer shall not thereby be relieved of
any liability or obligations under the Subservicing Agreement.

            (b) The Master  Servicer  shall,  upon request of the Trustee but at
the expense of the Master Servicer,  deliver to the assuming party all documents
and records relating to each Subservicing  Agreement and the Mortgage Loans then
being  serviced  and an  accounting  of  amounts  collected  and  held by it and
otherwise use its best efforts to effect the orderly and  efficient  transfer of
each Subservicing Agreement to the assuming party.

      Section 3.07.  Collection of Certain  Mortgage Loan Payments;  Deposits to
Custodial Account

            (a) The Master Servicer shall make reasonable efforts to collect all
payments  called for under the terms and provisions of the Mortgage  Loans,  and
shall, to the extent such procedures shall be consistent with this Agreement and
the terms and provisions of any related Primary  Insurance  Policy,  follow such
collection procedures as it would employ in its good faith business judgment and
which  are  normal  and  usual in its  general  mortgage  servicing  activities.
Consistent  with the  foregoing,  the Master  Servicer may in its discretion (i)
waive any late payment  charge or any prepayment  charge or penalty  interest in
connection  with the  prepayment of a Mortgage Loan and (ii) extend the Due Date
for  payments  due on a Mortgage  Loan in  accordance  with the  Program  Guide,
provided,  however, that the Master Servicer shall first determine that any such
waiver  or  extension  will not  impair  the  coverage  of any  related  Primary
Insurance  Policy  or  materially  adversely  affect  the  lien  of the  related
Mortgage.  Notwithstanding  anything in this Section to the contrary, the Master
Servicer  or any  Subservicer  shall not enforce  any  prepayment  charge to the
extent that such  enforcement  would violate any applicable law. In the event of
any such  arrangement,  the Master  Servicer  shall make timely  advances on the
related  Mortgage  Loan  during  the  scheduled  period in  accordance  with the
amortization  schedule of such  Mortgage  Loan without  modification  thereof by
reason of such  arrangements  unless  otherwise  agreed to by the Holders of the
Classes  of  Certificates  affected  thereby;  provided,  however,  that no such
extension  shall  be made if any  advance  would  be a  Nonrecoverable  Advance.
Consistent with the terms of this Agreement, the Master Servicer may also waive,
modify or vary any term of any Mortgage Loan or consent to the  postponement  of
strict  compliance  with any such term or in any manner grant  indulgence to any
Mortgagor if in the Master Servicer's  determination such waiver,  modification,
postponement  or  indulgence is not  materially  adverse to the interests of the
Certificateholders  (taking into account any estimated  Realized Loss that might
result absent such action), provided,  however, that the Master Servicer may not
modify  materially  or permit  any  Subservicer  to modify  any  Mortgage  Loan,
including  without  limitation any  modification  that would change the Mortgage
Rate,  forgive the payment of any  principal or interest  (unless in  connection
with the  liquidation of the related  Mortgage Loan or except in connection with
prepayments to the extent that such  reamortization is not inconsistent with the
terms of the Mortgage  Loan),  capitalize any amounts owing on the Mortgage Loan
by adding such amount to the outstanding principal balance of the Mortgage Loan,
or extend the final  maturity date of such Mortgage  Loan,  unless such Mortgage
Loan is in default or, in the judgment of the Master  Servicer,  such default is
reasonably foreseeable. No such modification shall reduce the Mortgage Rate on a
Mortgage  Loan below  one-half of the Mortgage  Rate as in effect on the Cut-off
Date,  but not less than the sum of the rates at which the Servicing Fee and the
Subservicing Fee accrue. The final maturity date for any Mortgage Loan

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shall not be extended  beyond the  Maturity  Date.  Also,  the Stated  Principal
Balance  of  all  Reportable   Modified  Mortgage  Loans  subject  to  Servicing
Modifications  (measured  at the time of the  Servicing  Modification  and after
giving effect to any Servicing Modification) can be no more than five percent of
the aggregate  principal  balance of the Mortgage  Loans as of the Cut-off Date,
unless such limit is increased  from time to time with the consent of the Rating
Agencies.  In  addition,  any  amounts  owing on a  Mortgage  Loan  added to the
outstanding principal balance of such Mortgage Loan must be fully amortized over
the term of such Mortgage Loan, and such amounts may be added to the outstanding
principal  balance of a Mortgage Loan only once during the life of such Mortgage
Loan.  Also,  the addition of such amounts  described in the preceding  sentence
shall be implemented in accordance with the Program Guide and may be implemented
only by  Subservicers  that have been  approved by the Master  Servicer for such
purposes.  In connection  with any  Curtailment  of a Mortgage  Loan, the Master
Servicer, to the extent not inconsistent with the terms of the Mortgage Note and
local law and  practice,  may permit the Mortgage Loan to be  re-amortized  such
that the Monthly  Payment is  recalculated as an amount that will fully amortize
the remaining  principal  balance thereof by the original maturity date based on
the original  Mortgage Rate;  provided,  that such  reamortization  shall not be
permitted if it would  constitute a reissuance  of the Mortgage Loan for federal
income tax purposes.

            (b) The Master  Servicer  shall  establish  and maintain a Custodial
Account in which the Master Servicer shall deposit or cause to be deposited on a
daily basis,  except as otherwise  specifically  provided herein,  the following
payments and  collections  remitted by Subservicers or received by it in respect
of the Mortgage  Loans  subsequent to the Cut-off Date (other than in respect of
principal and interest on the Mortgage Loans due on or before the Cut-off Date):

                  (i) All payments on account of principal,  including Principal
Prepayments made by Mortgagors on the Mortgage Loans and the principal component
of any Subservicer Advance or of any REO Proceeds received in connection with an
REO Property for which an REO Disposition has occurred;

                  (ii) All  payments  on account  of  interest  at the  Adjusted
Mortgage Rate on the Mortgage  Loans,  including  the interest  component of any
Subservicer  Advance or of any REO Proceeds  received in connection  with an REO
Property for which an REO  Disposition has occurred;

                  (iii)   Insurance   Proceeds,    Subsequent   Recoveries   and
Liquidation Proceeds (net of any related expenses of the Subservicer);

                  (iv) All proceeds of any Mortgage Loans purchased  pursuant to
Section 2.02,  2.03, 2.04 or 4.07 (including  amounts  received from Residential
Funding pursuant to the last paragraph of Section 4 of the Assignment  Agreement
in respect of any  liability,  penalty or expense that resulted from a breach of
the  representation  and  warranty  set forth in clause  4(w) of the  Assignment
Agreement)  and all amounts  required to be  deposited  in  connection  with the
substitution of a Qualified Substitute Mortgage Loan pursuant to Section 2.03 or
2.04; and

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                  (v) Any amounts  required to be deposited  pursuant to Section
3.07(c) and any  payments or  collections  received in the nature of  prepayment
charges.

      The foregoing  requirements for deposit in the Custodial  Account shall be
exclusive,  it being understood and agreed that, without limiting the generality
of the foregoing, payments on the Mortgage Loans which are not part of the Trust
Fund  (consisting  of  payments  in respect of  principal  and  interest  on the
Mortgage  Loans  received prior to the Cut-off Date) and payments or collections
consisting  of late  payment  charges  or  assumption  fees  may but need not be
deposited  by the Master  Servicer in the  Custodial  Account.  In the event any
amount not required to be deposited in the  Custodial  Account is so  deposited,
the Master  Servicer  may at any time  withdraw  such amount from the  Custodial
Account,  any provision  herein to the contrary  notwithstanding.  The Custodial
Account  may contain  funds that  belong to one or more trust funds  created for
mortgage  pass-through  certificates of other series and may contain other funds
respecting  payments  on  mortgage  loans  belonging  to the Master  Servicer or
serviced  or master  serviced  by it on behalf of others.  Notwithstanding  such
commingling of funds,  the Master  Servicer  shall keep records that  accurately
reflect the funds on deposit in the Custodial  Account that have been identified
by it as being attributable to the Mortgage Loans.

            With  respect  to  Insurance  Proceeds,  Liquidation  Proceeds,  REO
Proceeds, Subsequent Recoveries and the proceeds of the purchase of any Mortgage
Loan  pursuant to Sections  2.02,  2.03,  2.04 and 4.07 received in any calendar
month,  the Master  Servicer  may elect to treat such amounts as included in the
Available Distribution Amount for the Distribution Date in the month of receipt,
but is not  obligated to do so. If the Master  Servicer so elects,  such amounts
will be deemed to have been  received  (and any related  Realized  Loss shall be
deemed  to have  occurred)  on the last day of the  month  prior to the  receipt
thereof.

            (c) The  Master  Servicer  shall use its best  efforts  to cause the
institution  maintaining  the  Custodial  Account  to  invest  the  funds in the
Custodial  Account  attributable to the Mortgage Loans in Permitted  Investments
which shall  mature not later than the  Certificate  Account  Deposit  Date next
following the date of such investment (with the exception of the Amount Held for
Future  Distribution)  and which shall not be sold or disposed of prior to their
maturities.  All income and gain realized from any such investment  shall be for
the benefit of the Master  Servicer as  additional  servicing  compensation  and
shall be subject to its withdrawal or order from time to time. The amount of any
losses  incurred  in  respect  of  any  such  investments  attributable  to  the
investment of amounts in respect of the Mortgage Loans shall be deposited in the
Custodial  Account by the Master  Servicer out of its own funds  immediately  as
realized.

            (d) The Master  Servicer  shall give  notice to the  Trustee and the
Depositor  of any  change  in the  location  of the  Custodial  Account  and the
location of the Certificate Account prior to the use thereof.

      Section 3.08. Subservicing Accounts; Servicing Accounts

            (a) In those cases where a Subservicer  is servicing a Mortgage Loan
pursuant  to a  Subservicing  Agreement,  the Master  Servicer  shall  cause the
Subservicer,  pursuant to the Subservicing  Agreement, to establish and maintain
one or more Subservicing Accounts which shall be an Eligible Account or, if such
account is not an Eligible Account,  shall generally satisfy

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the requirements of the Program Guide and be otherwise  acceptable to the Master
Servicer and each Rating Agency.  The  Subservicer  will be required  thereby to
deposit into the Subservicing  Account on a daily basis all proceeds of Mortgage
Loans received by the Subservicer,  less its Subservicing  Fees and unreimbursed
advances and expenses, to the extent permitted by the Subservicing Agreement. If
the Subservicing  Account is not an Eligible Account,  the Master Servicer shall
be deemed to have received such monies upon receipt thereof by the  Subservicer.
The  Subservicer  shall not be required to deposit in the  Subservicing  Account
payments or  collections  in the nature of late charges or  assumption  fees, or
payments  or  collections  received in the nature of  prepayment  charges to the
extent that the  Subservicer is entitled to retain such amounts  pursuant to the
Subservicing  Agreement.  On or before the date  specified in the Program Guide,
but in no event later than the  Determination  Date,  the Master  Servicer shall
cause the Subservicer,  pursuant to the Subservicing  Agreement, to remit to the
Master  Servicer  for  deposit in the  Custodial  Account  all funds held in the
Subservicing  Account  with  respect  to each  Mortgage  Loan  serviced  by such
Subservicer  that are  required  to be  remitted  to the  Master  Servicer.  The
Subservicer will also be required,  pursuant to the Subservicing  Agreement,  to
advance on such  scheduled  date of  remittance  amounts  equal to any scheduled
monthly installments of principal and interest less its Subservicing Fees on any
Mortgage  Loans for which  payment  was not  received by the  Subservicer.  This
obligation to advance with respect to each Mortgage Loan will continue up to and
including  the  first of the  month  following  the date on  which  the  related
Mortgaged  Property  is sold at a  foreclosure  sale or is acquired by the Trust
Fund by deed in lieu of foreclosure or otherwise.  All such advances received by
the Master Servicer shall be deposited promptly by it in the Custodial Account.

            (b)  The  Subservicer   may  also  be  required,   pursuant  to  the
Subservicing  Agreement,  to remit to the  Master  Servicer  for  deposit in the
Custodial  Account  interest at the  Adjusted  Mortgage  Rate (or  Modified  Net
Mortgage  Rate  plus the rate per  annum at which  the  Servicing  Fee,  if any,
accrues in the case of a Modified Mortgage Loan) on any Curtailment  received by
such Subservicer in respect of a Mortgage Loan from the related Mortgagor during
any  month  that is to be  applied  by the  Subservicer  to  reduce  the  unpaid
principal  balance  of the  related  Mortgage  Loan as of the  first day of such
month,  from the date of application of such Curtailment to the first day of the
following  month.  Any amounts paid by a  Subservicer  pursuant to the preceding
sentence shall be for the benefit of the Master Servicer as additional servicing
compensation  and shall be subject to its  withdrawal or order from time to time
pursuant to Sections 3.10(a)(iv) and (v).

            (c) In  addition  to  the  Custodial  Account  and  the  Certificate
Account,  the Master  Servicer shall for any  Nonsubserviced  Mortgage Loan, and
shall cause the  Subservicers  for Subserviced  Mortgage Loans to, establish and
maintain  one or more  Servicing  Accounts  and deposit  and retain  therein all
collections from the Mortgagors (or advances from  Subservicers) for the payment
of taxes,  assessments,  hazard  insurance  premiums,  Primary  Insurance Policy
premiums, if applicable,  or comparable items for the account of the Mortgagors.
Each Servicing Account shall satisfy the requirements for a Subservicing Account
and, to the extent permitted by the Program Guide or as is otherwise  acceptable
to the Master Servicer, may also function as a Subservicing Account. Withdrawals
of amounts related to the Mortgage Loans from the Servicing Accounts may be made
only to effect timely payment of taxes, assessments,  hazard insurance premiums,
Primary  Insurance  Policy  premiums,  if applicable,  or comparable  items,  to
reimburse the Master Servicer or Subservicer out of related  collections for any
payments made

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<PAGE>

pursuant to Sections  3.11 (with  respect to the Primary  Insurance  Policy) and
3.12(a) (with respect to hazard insurance), to refund to any Mortgagors any sums
as may be determined to be overages, to pay interest, if required, to Mortgagors
on balances in the  Servicing  Account or to clear and  terminate  the Servicing
Account at the  termination of this Agreement in accordance with Section 9.01 or
in  accordance  with the Program  Guide.  As part of its servicing  duties,  the
Master Servicer shall, and the Subservicers  will,  pursuant to the Subservicing
Agreements,  be  required  to pay to the  Mortgagors  interest  on funds in this
account to the extent required by law.

            (d) The Master  Servicer  shall advance the payments  referred to in
the preceding  subsection that are not timely paid by the Mortgagors or advanced
by the  Subservicers  on the date when the tax,  premium or other cost for which
such payment is intended is due, but the Master Servicer shall be required so to
advance only to the extent that such advances, in the good faith judgment of the
Master  Servicer,  will be recoverable  by the Master  Servicer out of Insurance
Proceeds, Liquidation Proceeds or otherwise.

      Section 3.09. Access to Certain  Documentation  and Information  Regarding
the Mortgage Loans

      In the event that  compliance  with this Section 3.09 shall make any Class
of  Certificates  legal for  investment  by federally  insured  savings and loan
associations,  the Master Servicer shall provide,  or cause the  Subservicers to
provide,  to the Trustee,  the Office of Thrift  Supervision or the FDIC and the
supervisory  agents and examiners thereof access to the documentation  regarding
the Mortgage  Loans  required by applicable  regulations of the Office of Thrift
Supervision,  such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices designated by the Master
Servicer. The Master Servicer shall permit such representatives to photocopy any
such  documentation  and shall  provide  equipment  for that purpose at a charge
reasonably approximating the cost of such photocopying to the Master Servicer.

      Section 3.10. Permitted Withdrawals from the Custodial Account

            (a) The Master  Servicer may, from time to time as provided  herein,
make  withdrawals  from the  Custodial  Account of  amounts  on deposit  therein
pursuant to Section 3.07 that are  attributable  to the  Mortgage  Loans for the
following purposes:

                  (i) to make  deposits  into  the  Certificate  Account  in the
amounts and in the manner provided for in Section 4.01;

                  (ii)  to  reimburse  itself  or the  related  Subservicer  for
previously  unreimbursed  Advances,  Servicing  Advances or other  expenses made
pursuant  to Sections  3.01,  3.07(a),  3.08,  3.11,  3.12(a),  3.14 and 4.04 or
otherwise reimbursable pursuant to the terms of this Agreement,  such withdrawal
right  being  limited  to  amounts   received  on  the  related  Mortgage  Loans
(including,  for this purpose,  REO Proceeds,  Insurance  Proceeds,  Liquidation
Proceeds and proceeds  from the purchase of a Mortgage  Loan pursuant to Section
2.02,  2.03,  2.04 or 4.07)  which  represent  (A) Late  Collections  of Monthly
Payments for which any such advance was made in the case of Subservicer Advances
or Advances pursuant to Section 4.04 and

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(B)  recoveries  of amounts in respect of which such  advances  were made in the
case of Servicing Advances;

                  (iii) to pay to  itself  or the  related  Subservicer  (if not
previously  retained by such  Subservicer)  out of each payment  received by the
Master  Servicer on account of interest on a Mortgage  Loan as  contemplated  by
Sections  3.14 and 3.16, an amount equal to that  remaining  portion of any such
payment  as to  interest  (but  not in  excess  of the  Servicing  Fee  and  the
Subservicing Fee, if not previously retained) which, when deducted,  will result
in the  remaining  amount of such  interest  being  interest at a rate per annum
equal to the Net Mortgage  Rate (or Modified Net Mortgage  Rate in the case of a
Modified Mortgage Loan) on the amount specified in the amortization  schedule of
the related  Mortgage Loan as the principal  balance thereof at the beginning of
the period  respecting  which such  interest was paid after giving effect to any
previous Curtailments;

                  (iv) to pay to itself as additional servicing compensation any
interest or investment income earned on funds and other property deposited in or
credited to the  Custodial  Account that it is entitled to withdraw  pursuant to
Section 3.07(c);

                  (v) to pay to itself as additional servicing  compensation any
Foreclosure  Profits,  and any amounts  remitted by  Subservicers as interest in
respect of Curtailments pursuant to Section 3.08(b);

                  (vi) to pay to itself,  a Subservicer,  a Seller,  Residential
Funding, the Depositor or any other appropriate Person, as the case may be, with
respect to each Mortgage Loan or property  acquired in respect  thereof that has
been purchased or otherwise  transferred  pursuant to Section 2.02,  2.03, 2.04,
4.07 or 9.01, all amounts received thereon and not required to be distributed to
Certificateholders  as of the date on which the related Stated Principal Balance
or Purchase Price is determined;

                  (vii) to reimburse  itself or the related  Subservicer for any
Nonrecoverable  Advance or Advances in the manner and to the extent  provided in
subsection  (c) below,  and any Advance or Servicing  Advance made in connection
with a modified  Mortgage  Loan that is in default  or, in the  judgment  of the
Master Servicer,  default is reasonably foreseeable pursuant to Section 3.07(a),
to the extent the amount of the  Advance or  Servicing  Advance was added to the
Stated Principal Balance of the Mortgage Loan in a prior calendar month;

                  (viii) to  reimburse  itself  or the  Depositor  for  expenses
incurred by and reimbursable to it or the Depositor pursuant to Section 3.01(a),
3.11, 3.13, 3.14(c),  6.03, 10.01 or otherwise,  or in connection with enforcing
any repurchase,  substitution or indemnification obligation of any Seller (other
than the  Depositor or an Affiliate  of the  Depositor)  pursuant to the related
Seller's Agreement;

                  (ix)  to  reimburse  itself  for  amounts  expended  by it (a)
pursuant to Section 3.14 in good faith in  connection  with the  restoration  of
property  damaged  by an  Uninsured  Cause,  and  (b)  in  connection  with  the
liquidation  of a Mortgage Loan or  disposition of

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an REO Property to the extent not otherwise  reimbursed  pursuant to clause (ii)
or (viii) above; and

                  (x) to withdraw any amount deposited in the Custodial  Account
that  was not  required  to be  deposited  therein  pursuant  to  Section  3.07,
including any payoff fees or penalties or any other  additional  amounts payable
to the Master  Servicer or  Subservicer  pursuant  to the terms of the  Mortgage
Note.

            (b) Since, in connection with withdrawals  pursuant to clauses (ii),
(iii),  (v) and (vi), the Master  Servicer's  entitlement  thereto is limited to
collections  or other  recoveries  on the  related  Mortgage  Loan,  the  Master
Servicer  shall keep and maintain  separate  accounting,  on a Mortgage  Loan by
Mortgage  Loan basis,  for the purpose of  justifying  any  withdrawal  from the
Custodial Account pursuant to such clauses.

            (c) The Master Servicer shall be entitled to reimburse itself or the
related  Subservicer for any advance made in respect of a Mortgage Loan that the
Master Servicer determines to be a Nonrecoverable Advance by withdrawal from the
Custodial  Account of amounts on deposit  therein  attributable  to the Mortgage
Loans  on any  Certificate  Account  Deposit  Date  succeeding  the date of such
determination.  Such  right of  reimbursement  in  respect  of a  Nonrecoverable
Advance  relating  to an  Advance  made  pursuant  to  Section  4.04 on any such
Certificate Account Deposit Date shall be limited to an amount not exceeding the
portion  of  such  advance  previously  paid  to  Certificateholders   (and  not
theretofore reimbursed to the Master Servicer or the related Subservicer).

      Section 3.11. Maintenance of Primary Insurance Coverage

            (a) The Master Servicer shall not take, or permit any Subservicer to
take, any action which would result in noncoverage under any applicable  Primary
Insurance  Policy of any loss which,  but for the actions of the Master Servicer
or Subservicer,  would have been covered  thereunder.  To the extent coverage is
available,  the Master Servicer shall keep or cause to be kept in full force and
effect each such Primary  Insurance  Policy until the  principal  balance of the
related Mortgage Loan secured by a Mortgaged  Property is reduced to 80% or less
of the Appraised Value at origination in the case of such a Mortgage Loan having
a  Loan-to-Value  Ratio at  origination  in  excess of 80%,  provided  that such
Primary  Insurance  Policy  was in place as of the  Cut-off  Date and the Master
Servicer had knowledge of such Primary  Insurance  Policy.  The Master  Servicer
shall not cancel or refuse to renew any such Primary Insurance Policy applicable
to a  Nonsubserviced  Mortgage Loan, or consent to any Subservicer  canceling or
refusing to renew any such Primary  Insurance  Policy  applicable  to a Mortgage
Loan subserviced by it, that is in effect at the date of the initial issuance of
the  Certificates  and is  required  to be kept in force  hereunder  unless  the
replacement  Primary Insurance Policy for such canceled or non-renewed policy is
maintained  with an insurer  whose  claims-paying  ability is acceptable to each
Rating Agency for mortgage pass-through certificates having a rating equal to or
better than the lower of the  then-current  rating or the rating assigned to the
Certificates as of the Closing Date by such Rating Agency.

            (b) In connection with its activities as administrator  and servicer
of the Mortgage  Loans,  the Master  Servicer  agrees to present or to cause the
related  Subservicer  to

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present, on behalf of the Master Servicer, the Subservicer,  if any, the Trustee
and  Certificateholders,  claims  to the  insurer  under any  Primary  Insurance
Policies,  in a timely manner in  accordance  with such  policies,  and, in this
regard,  to take or  cause  to be  taken  such  reasonable  action  as  shall be
necessary to permit  recovery under any Primary  Insurance  Policies  respecting
defaulted  Mortgage  Loans.  Pursuant to Section 3.07,  any  Insurance  Proceeds
collected  by or remitted  to the Master  Servicer  under any Primary  Insurance
Policies  shall be deposited in the  Custodial  Account,  subject to  withdrawal
pursuant to Section 3.10.

      Section  3.12.  Maintenance  of Fire  Insurance and Omissions and Fidelity
Coverage

            (a) The  Master  Servicer  shall  cause  to be  maintained  for each
Mortgage Loan fire insurance with extended  coverage in an amount which is equal
to the lesser of the  principal  balance  owing on such Mortgage Loan or 100% of
the insurable value of the improvements;  provided,  however, that such coverage
may not be less than the minimum  amount  required to fully  compensate  for any
loss or damage on a replacement  cost basis.  To the extent it may do so without
breaching the related Subservicing Agreement,  the Master Servicer shall replace
any  Subservicer  that  does not  cause  such  insurance,  to the  extent  it is
available,  to be  maintained.  The  Master  Servicer  shall  also  cause  to be
maintained  on  property  acquired  upon   foreclosure,   or  deed  in  lieu  of
foreclosure,  of any Mortgage Loan, fire insurance with extended  coverage in an
amount which is at least equal to the amount  necessary to avoid the application
of any co-insurance  clause  contained in the related hazard  insurance  policy.
Pursuant to Section 3.07, any amounts collected by the Master Servicer under any
such policies  (other than amounts to be applied to the restoration or repair of
the related Mortgaged  Property or property thus acquired or amounts released to
the  Mortgagor  in  accordance  with  the  Master  Servicer's  normal  servicing
procedures) shall be deposited in the Custodial  Account,  subject to withdrawal
pursuant  to  Section  3.10.  Any  cost  incurred  by  the  Master  Servicer  in
maintaining any such insurance shall not, for the purpose of calculating monthly
distributions  to  Certificateholders,  be added to the amount  owing  under the
Mortgage  Loan,  notwithstanding  that the terms of the Mortgage Loan so permit.
Such costs  shall be  recoverable  by the Master  Servicer  out of related  late
payments by the Mortgagor or out of Insurance Proceeds and Liquidation  Proceeds
to the extent  permitted by Section 3.10.  It is  understood  and agreed that no
earthquake or other  additional  insurance is to be required of any Mortgagor or
maintained  on  property  acquired  in  respect  of a  Mortgage  Loan other than
pursuant  to such  applicable  laws and  regulations  as shall at any time be in
force and as shall require such additional insurance.  Whenever the improvements
securing a Mortgage Loan are located at the time of origination of such Mortgage
Loan in a federally  designated  special flood hazard area, the Master  Servicer
shall  cause flood  insurance  (to the extent  available)  to be  maintained  in
respect thereof.  Such flood insurance shall be in an amount equal to the lesser
of (i) the amount required to compensate for any loss or damage to the Mortgaged
Property  on a  replacement  cost  basis  and (ii) the  maximum  amount  of such
insurance  available for the related Mortgaged Property under the national flood
insurance  program  (assuming that the area in which such Mortgaged  Property is
located is participating in such program).

      In the event that the Master  Servicer shall obtain and maintain a blanket
fire insurance policy with extended  coverage  insuring against hazard losses on
all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its
obligations as set forth in the first sentence of this Section 3.12(a), it being
understood and agreed that such policy may contain a deductible clause, in which
case the Master  Servicer  shall,  in the event  that there  shall not have been

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maintained on the related  Mortgaged  Property a policy complying with the first
sentence  of this  Section  3.12(a) and there shall have been a loss which would
have been covered by such policy,  deposit in the Certificate Account the amount
not  otherwise  payable  under the  blanket  policy  because of such  deductible
clause. Any such deposit by the Master Servicer shall be made on the Certificate
Account  Deposit Date next preceding the  Distribution  Date which occurs in the
month  following  the month in which  payments  under any such policy would have
been deposited in the Custodial  Account.  In connection  with its activities as
administrator  and servicer of the Mortgage Loans, the Master Servicer agrees to
present, on behalf of itself, the Trustee and  Certificateholders,  claims under
any such blanket policy.

            (b) The Master Servicer shall obtain and maintain at its own expense
and keep in full  force  and  effect  throughout  the term of this  Agreement  a
blanket fidelity bond and an errors and omissions  insurance policy covering the
Master  Servicer's  officers and employees and other persons acting on behalf of
the Master Servicer in connection with its activities under this Agreement.  The
amount  of  coverage  shall be at  least  equal to the  coverage  that  would be
required by Fannie Mae or Freddie Mac, whichever is greater, with respect to the
Master  Servicer if the Master  Servicer were  servicing and  administering  the
Mortgage Loans for Fannie Mae or Freddie Mac. In the event that any such bond or
policy  ceases to be in effect,  the Master  Servicer  shall obtain a comparable
replacement  bond or  policy  from an  issuer  or  insurer,  as the case may be,
meeting the  requirements,  if any, of the Program  Guide and  acceptable to the
Depositor. Coverage of the Master Servicer under a policy or bond obtained by an
Affiliate of the Master  Servicer and  providing  the coverage  required by this
Section 3.12(b) shall satisfy the requirements of this Section 3.12(b).

      Section  3.13.   Enforcement  of  Due-on-Sale   Clauses;   Assumption  and
Modification Agreements; Certain Assignments

            (a) When any Mortgaged  Property is conveyed by the  Mortgagor,  the
Master  Servicer  or  Subservicer,  to the  extent  it  has  knowledge  of  such
conveyance,  shall enforce any due-on-sale clause contained in any Mortgage Note
or Mortgage,  to the extent  permitted  under  applicable  law and  governmental
regulations,  but only to the extent that such  enforcement  will not  adversely
affect or jeopardize  coverage under any Required  Insurance Policy or otherwise
adversely affect the interests of the  Certificateholders.  Notwithstanding  the
foregoing:

                  (i) the Master  Servicer  shall not be deemed to be in default
under this  Section  3.13(a) by reason of any transfer or  assumption  which the
Master Servicer is restricted by law from preventing; and

                  (ii) if the Master  Servicer  determines that it is reasonably
likely that any  Mortgagor  will bring,  or if any Mortgagor  does bring,  legal
action to declare invalid or otherwise avoid enforcement of a due-on-sale clause
contained in any Mortgage  Note or Mortgage,  the Master  Servicer  shall not be
required to enforce the due-on-sale clause or to contest such action.

            (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause  to the  extent  set  forth in  Section  3.13(a),  in any case in which a
Mortgaged Property is to be conveyed to a Person by a Mortgagor, and such Person
is to enter into an  assumption or

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modification  agreement or  supplement  to the Mortgage  Note or Mortgage  which
requires the signature of the Trustee,  or if an instrument of release signed by
the Trustee is required  releasing the Mortgagor  from liability on the Mortgage
Loan, the Master  Servicer is  authorized,  subject to the  requirements  of the
sentence next following,  to execute and deliver, on behalf of the Trustee,  the
assumption  agreement  with the Person to whom the  Mortgaged  Property is to be
conveyed and such  modification  agreement or supplement to the Mortgage Note or
Mortgage or other  instruments  as are  reasonable or necessary to carry out the
terms  of the  Mortgage  Note or  Mortgage  or  otherwise  to  comply  with  any
applicable laws regarding  assumptions or the transfer of the Mortgaged Property
to such Person;  provided,  however,  none of such terms and requirements  shall
both constitute a "significant modification" effecting an exchange or reissuance
of such Mortgage Loan under the Code (or final,  temporary or proposed  Treasury
regulations  promulgated  thereunder)  and cause any REMIC created  hereunder to
fail to  qualify  as a REMIC  under  the  Code or the  imposition  of any tax on
"prohibited  transactions" or  "contributions"  after the Startup Date under the
REMIC  Provisions.  The Master Servicer shall execute and deliver such documents
only if it reasonably  determines  that (i) its  execution and delivery  thereof
will not  conflict  with or  violate  any terms of this  Agreement  or cause the
unpaid balance and interest on the Mortgage Loan to be uncollectible in whole or
in part,  (ii) any required  consents of insurers  under any Required  Insurance
Policies  have  been  obtained  and  (iii)  subsequent  to  the  closing  of the
transaction  involving  the  assumption  or transfer (A) the Mortgage  Loan will
continue  to be secured by a first  mortgage  lien  pursuant to the terms of the
Mortgage  (or,  with  respect  to any  junior  lien,  a junior  lien of the same
priority  in  relation  to any  senior  lien on such  Mortgage  Loan),  (B) such
transaction will not adversely affect the coverage under any Required  Insurance
Policies,  (C) the Mortgage Loan will fully  amortize  over the  remaining  term
thereof,  (D) no material term of the Mortgage Loan (including the interest rate
on the Mortgage  Loan) will be altered nor will the term of the Mortgage Loan be
changed  and (E) if the  seller/transferor  of the  Mortgaged  Property is to be
released  from  liability  on the Mortgage  Loan,  the  buyer/transferee  of the
Mortgaged  Property  would be  qualified  to assume the  Mortgage  Loan based on
generally  comparable  credit  quality and such  release  will not (based on the
Master Servicer's or Subservicer's  good faith  determination)  adversely affect
the   collectability   of  the  Mortgage  Loan.   Upon  receipt  of  appropriate
instructions  from the Master  Servicer in accordance  with the  foregoing,  the
Trustee  shall  execute  any  necessary   instruments  for  such  assumption  or
substitution of liability as directed by the Master  Servicer.  Upon the closing
of the  transactions  contemplated by such documents,  the Master Servicer shall
cause the originals or true and correct copies of the assumption agreement,  the
release (if any),  or the  modification  or  supplement  to the Mortgage Note or
Mortgage to be delivered to the Trustee or the Custodian and deposited  with the
Mortgage File for such Mortgage Loan.  Any fee collected by the Master  Servicer
or such related  Subservicer  for entering into an assumption or substitution of
liability  agreement will be retained by the Master Servicer or such Subservicer
as additional servicing compensation.

            (c) The Master Servicer or the related Subservicer,  as the case may
be,  shall be  entitled  to  approve a request  from a  Mortgagor  for a partial
release of the related Mortgaged  Property,  the granting of an easement thereon
in  favor of  another  Person,  any  alteration  or  demolition  of the  related
Mortgaged Property or other similar matters if it has determined, exercising its
good faith business judgment in the same manner as it would if it were the owner
of the related  Mortgage  Loan,  that the security  for, and the timely and full
collectability  of, such Mortgage Loan would not be adversely  affected  thereby
and that any REMIC created  hereunder

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<PAGE>

would not fail to  continue  to  qualify  as a REMIC  under the Code as a result
thereof  and  (subject  to  Section   10.01(f))   that  no  tax  on  "prohibited
transactions" or "contributions"  after the Startup Date would be imposed on any
REMIC  created  hereunder as a result  thereof.  Any fee collected by the Master
Servicer  or the  related  Subservicer  for  processing  such a request  will be
retained by the Master  Servicer or such  Subservicer  as  additional  servicing
compensation.

            (d) Subject to any other  applicable  terms and  conditions  of this
Agreement,  the  Trustee  and Master  Servicer  shall be  entitled to approve an
assignment in lieu of satisfaction  with respect to any Mortgage Loan,  provided
the  obligee  with  respect  to  such  Mortgage  Loan  following  such  proposed
assignment provides the Trustee and Master Servicer with a "Lender Certification
for  Assignment of Mortgage  Loan" in the form attached  hereto as Exhibit M, in
form and substance  satisfactory to the Trustee and Master  Servicer,  providing
the  following:  (i) that the  Mortgage  Loan is secured by  Mortgaged  Property
located in a  jurisdiction  in which an  assignment in lieu of  satisfaction  is
required to preserve lien priority,  minimize or avoid mortgage  recording taxes
or otherwise  comply with, or facilitate a refinancing  under,  the laws of such
jurisdiction;  (ii) that the substance of the  assignment is, and is intended to
be, a refinancing of such Mortgage Loan and that the form of the  transaction is
solely to comply with, or facilitate  the  transaction  under,  such local laws;
(iii) that the Mortgage Loan following the proposed  assignment will have a rate
of interest at least 0.25% below or above the rate of interest on such  Mortgage
Loan prior to such proposed assignment;  and (iv) that such assignment is at the
request of the borrower  under the related  Mortgage  Loan.  Upon approval of an
assignment in lieu of satisfaction with respect to any Mortgage Loan, the Master
Servicer shall receive cash in an amount equal to the unpaid  principal  balance
of and accrued  interest on such  Mortgage  Loan and the Master  Servicer  shall
treat  such  amount  as a  Principal  Prepayment  in Full with  respect  to such
Mortgage Loan for all purposes hereof.

      Section 3.14. Realization Upon Defaulted Mortgage Loans

            (a) The Master Servicer shall foreclose upon or otherwise comparably
convert  (which may include an REO  Acquisition)  the  ownership  of  properties
securing such of the Mortgage  Loans as come into and continue in default and as
to which no satisfactory  arrangements  can be made for collection of delinquent
payments pursuant to Section 3.07.  Alternatively,  the Master Servicer may take
other  actions in respect of a defaulted  Mortgage  Loan,  which may include (i)
accepting  a short sale (a payoff of the  Mortgage  Loan for an amount less than
the  total  amount  contractually  owed in  order  to  facilitate  a sale of the
Mortgaged Property by the Mortgagor) or permitting a short refinancing (a payoff
of the Mortgage Loan for an amount less than the total amount contractually owed
in order to facilitate refinancing transactions by the Mortgagor not involving a
sale of the Mortgaged  Property),  (ii)  arranging for a repayment plan or (iii)
agreeing to a modification  in accordance  with Section 3.07. In connection with
such  foreclosure  or other  conversion or action,  the Master  Servicer  shall,
consistent  with Section 3.11,  follow such practices and procedures as it shall
deem  necessary  or  advisable,  as shall be  normal  and  usual in its  general
mortgage  servicing  activities  and as shall be  required or  permitted  by the
Program  Guide;  provided  that the Master  Servicer  shall not be liable in any
respect  hereunder if the Master  Servicer is acting in connection with any such
foreclosure  or other  conversion or action in a manner that is consistent  with
the provisions of this Agreement.  The Master  Servicer,  however,  shall not be
required  to  expend  its own  funds  or incur  other  reimbursable  charges  in
connection  with  any  foreclosure,   or  attempted  foreclosure  which  is

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not  completed,  or towards the  correction  of any default on a related  senior
mortgage  loan,  or towards  the  restoration  of any  property  unless it shall
determine  (i) that  such  restoration  and/or  foreclosure  will  increase  the
proceeds of liquidation of the Mortgage Loan to Holders of  Certificates  of one
or more Classes after  reimbursement  to itself for such expenses or charges and
(ii)  that  such  expenses  and  charges  will  be  recoverable  to  it  through
Liquidation  Proceeds,  Insurance Proceeds, or REO Proceeds (respecting which it
shall have  priority  for purposes of  withdrawals  from the  Custodial  Account
pursuant to Section 3.10,  whether or not such expenses and charges are actually
recoverable  from  related  Liquidation  Proceeds,  Insurance  Proceeds  or  REO
Proceeds).  In the event of such a determination by the Master Servicer pursuant
to this Section 3.14(a),  the Master Servicer shall be entitled to reimbursement
of its funds so expended pursuant to Section 3.10.

      In  addition,  the Master  Servicer  may pursue any  remedies  that may be
available in  connection  with a breach of a  representation  and warranty  with
respect to any such  Mortgage  Loan in  accordance  with Sections 2.03 and 2.04.
However,  the  Master  Servicer  is not  required  to  continue  to pursue  both
foreclosure  (or  similar  remedies)  with  respect  to the  Mortgage  Loans and
remedies in  connection  with a breach of a  representation  and warranty if the
Master Servicer determines in its reasonable  discretion that one such remedy is
more likely to result in a greater  recovery as to the Mortgage  Loan.  Upon the
occurrence of a Cash  Liquidation or REO  Disposition,  following the deposit in
the Custodial Account of all Insurance Proceeds,  Liquidation Proceeds and other
payments and recoveries  referred to in the definition of "Cash  Liquidation" or
"REO  Disposition,"  as  applicable,  upon  receipt  by the  Trustee  of written
notification of such deposit signed by a Servicing  Officer,  the Trustee or the
Custodian,  as the case may be, shall release to the Master Servicer the related
Custodial  File and the Trustee  shall execute and deliver such  instruments  of
transfer or  assignment  prepared by the Master  Servicer,  in each case without
recourse,  as shall be necessary to vest in the Master Servicer or its designee,
as the case may be, the related Mortgage Loan, and thereafter such Mortgage Loan
shall not be part of the Trust Fund.  Notwithstanding the foregoing or any other
provision of this  Agreement,  in the Master  Servicer's  sole  discretion  with
respect  to any  defaulted  Mortgage  Loan or REO  Property  as to either of the
following provisions, (i) a Cash Liquidation or REO Disposition may be deemed to
have occurred if substantially all amounts expected by the Master Servicer to be
received in connection with the related defaulted  Mortgage Loan or REO Property
have been  received,  and (ii) for  purposes  of  determining  the amount of any
Liquidation  Proceeds,  Insurance  Proceeds,  REO Proceeds or other  unscheduled
collections  or the amount of any Realized  Loss,  the Master  Servicer may take
into account minimal amounts of additional  receipts  expected to be received or
any  estimated  additional  liquidation  expenses  expected  to be  incurred  in
connection with the related defaulted Mortgage Loan or REO Property.

            (b) In the event that title to any Mortgaged Property is acquired by
the  Trust  Fund  as an REO  Property  by  foreclosure  or by  deed  in  lieu of
foreclosure,  the deed or  certificate of sale shall be issued to the Trustee or
to its  nominee  on  behalf  of  Certificateholders.  Notwithstanding  any  such
acquisition of title and  cancellation  of the related  Mortgage Loan,  such REO
Property shall (except as otherwise  expressly provided herein) be considered to
be an  Outstanding  Mortgage  Loan held in the Trust Fund until such time as the
REO Property  shall be sold.  Consistent  with the foregoing for purposes of all
calculations hereunder so long as such REO Property shall be considered to be an
Outstanding  Mortgage  Loan it shall be assumed that,  notwithstanding  that the
indebtedness  evidenced by the related Mortgage Note shall have been

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discharged,  such Mortgage Note and the related amortization  schedule in effect
at the time of any  such  acquisition  of  title  (after  giving  effect  to any
previous  Curtailments  and  before  any  adjustment  thereto  by  reason of any
bankruptcy or similar  proceeding or any  moratorium or similar  waiver or grace
period) remain in effect.

            (c) In the event that the Trust Fund  acquires  any REO  Property as
aforesaid  or otherwise in  connection  with a default or imminent  default on a
Mortgage Loan, the Master  Servicer on behalf of the Trust Fund shall dispose of
such REO  Property  as soon as  practicable,  giving  due  consideration  to the
interests of the  Certificateholders,  but in all cases, within three full years
after the  taxable  year of its  acquisition  by the Trust Fund for  purposes of
Section 860G(a)(8) of the Code (or such shorter period as may be necessary under
applicable  state (including any state in which such property is located) law to
maintain the status of each REMIC created  hereunder as a REMIC under applicable
state law and avoid taxes resulting from such property failing to be foreclosure
property  under  applicable  state law) or, at the  expense  of the Trust  Fund,
request,  more than 60 days  before  the day on which such  grace  period  would
otherwise  expire,  an extension of such grace period unless the Master Servicer
(subject  to Section  10.01(f))  obtains  for the Trustee an Opinion of Counsel,
addressed to the Trustee and the Master Servicer, to the effect that the holding
by the Trust Fund of such REO Property subsequent to such period will not result
in the  imposition of taxes on "prohibited  transactions"  as defined in Section
860F of the Code or cause any REMIC  created  hereunder  to fail to qualify as a
REMIC (for federal (or any  applicable  State or local)  income tax purposes) at
any time that any Certificates are outstanding, in which case the Trust Fund may
continue to hold such REO Property (subject to any conditions  contained in such
Opinion of Counsel). The Master Servicer shall be entitled to be reimbursed from
the  Custodial  Account for any costs  incurred  in  obtaining  such  Opinion of
Counsel,  as provided in Section 3.10.  Notwithstanding  any other  provision of
this Agreement,  no REO Property  acquired by the Trust Fund shall be rented (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or  pursuant  to any terms  that  would (i) cause such REO
Property  to fail to qualify as  "foreclosure  property"  within the  meaning of
Section  860G(a)(8) of the Code or (ii) subject any REMIC  created  hereunder to
the  imposition  of any federal  income taxes on the income earned from such REO
Property,  including any taxes imposed by reason of Section 860G(c) of the Code,
unless the Master  Servicer has agreed to indemnify  and hold harmless the Trust
Fund with respect to the imposition of any such taxes.

            (d)  The  proceeds  of any  Cash  Liquidation,  REO  Disposition  or
purchase  or  repurchase  of any  Mortgage  Loan  pursuant  to the terms of this
Agreement,  as well as any recovery (other than Subsequent Recoveries) resulting
from a collection of Liquidation  Proceeds,  Insurance Proceeds or REO Proceeds,
will be applied in the  following  order of priority:  first,  to reimburse  the
Master   Servicer  or  the  related   Subservicer  in  accordance  with  Section
3.10(a)(ii);  second,  to the  Certificateholders  to the extent of accrued  and
unpaid interest on the Mortgage Loan, and any related REO Imputed  Interest,  at
the Net  Mortgage  Rate  (or the  Modified  Net  Mortgage  Rate in the case of a
Modified  Mortgage Loan), to the Due Date in the related Due Period prior to the
Distribution  Date on which such amounts are to be  distributed;  third,  to the
Certificateholders  as a recovery  of  principal  on the  Mortgage  Loan (or REO
Property); fourth, to all Servicing Fees and Subservicing Fees payable therefrom
(and the  Master  Servicer  and the  Subservicer  shall  have no claims  for any
deficiencies  with  respect  to  such  fees  which  result  from  the  foregoing
allocation); and fifth, to Foreclosure Profits.

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            (e) In the  event of a  default  on a  Mortgage  Loan one or more of
whose obligors is not a United States Person, in connection with any foreclosure
or  acquisition of a deed in lieu of foreclosure  (together,  "foreclosure")  in
respect of such Mortgage Loan, the Master  Servicer shall cause  compliance with
the provisions of Treasury  Regulation Section  1.1445-2(d)(3) (or any successor
thereto)  necessary to assure that no  withholding  tax  obligation  arises with
respect to the proceeds of such foreclosure  except to the extent,  if any, that
proceeds of such foreclosure are required to be remitted to the obligors on such
Mortgage Loan.

      Section 3.15. Trustee to Cooperate; Release of Custodial Files

            (a) Upon becoming aware of the payment in full of any Mortgage Loan,
or upon the receipt by the Master  Servicer of a  notification  that  payment in
full will be  escrowed  in a manner  customary  for such  purposes,  the  Master
Servicer shall immediately notify the Trustee (if it holds the related Custodial
File)  or  the  Custodian  by a  certification  of a  Servicing  Officer  (which
certification  shall include a statement to the effect that all amounts received
or to be received  in  connection  with such  payment  which are  required to be
deposited in the Custodial Account pursuant to Section 3.07 have been or will be
so deposited),  substantially  in the form attached  hereto as Exhibit G, or, in
the case of a  Custodian,  an  electronic  request in a form  acceptable  to the
Custodian, requesting delivery to it of the Custodial File. Upon receipt of such
certification  and request,  the Trustee shall  promptly  release,  or cause the
Custodian to release,  the related  Custodial File to the Master  Servicer.  The
Master  Servicer  is  authorized  to execute and  deliver to the  Mortgagor  the
request for  reconveyance,  deed of  reconveyance  or release or satisfaction of
mortgage or such  instrument  releasing the lien of the Mortgage,  together with
the Mortgage Note with, as appropriate, written evidence of cancellation thereon
and to cause the removal  from the  registration  on the MERS(R)  System of such
Mortgage  and to  execute  and  deliver,  on  behalf  of  the  Trustee  and  the
Certificateholders  or any of them, any and all  instruments of  satisfaction or
cancellation  or of  partial  or full  release,  including  any  applicable  UCC
termination  statements.  No expenses incurred in connection with any instrument
of  satisfaction  or deed of  reconveyance  shall be chargeable to the Custodial
Account or the Certificate Account.

            (b)  From  time to  time as is  appropriate  for  the  servicing  or
foreclosure  of any Mortgage  Loan,  the Master  Servicer  shall  deliver to the
Custodian,  with a copy to the Trustee,  a  certificate  of a Servicing  Officer
substantially  in the form  attached  as Exhibit G hereto,  or, in the case of a
Custodian,  an  electronic  request  in a  form  acceptable  to  the  Custodian,
requesting  that  possession of all, or any document  constituting  part of, the
Custodial  File be  released to the Master  Servicer  and  certifying  as to the
reason for such release and that such release will not  invalidate any insurance
coverage  provided in respect of the Mortgage Loan under any Required  Insurance
Policy.  Upon receipt of the foregoing,  the Trustee shall deliver, or cause the
Custodian to deliver,  the Custodial File or any document  therein to the Master
Servicer.  The Master  Servicer  shall cause each Custodial File or any document
therein so released to be returned to the Trustee, or the Custodian as agent for
the  Trustee  when the need  therefor by the Master  Servicer no longer  exists,
unless (i) the Mortgage Loan has been  liquidated and the  Liquidation  Proceeds
relating to the Mortgage Loan have been  deposited in the  Custodial  Account or
(ii) the Custodial File or such document has been delivered  directly or through
a Subservicer to an attorney, or to a public trustee or other public official as
required by law, for purposes of  initiating  or pursuing  legal action or other
proceedings for the foreclosure of the

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Mortgaged Property either judicially or non-judicially,  and the Master Servicer
has delivered  directly or through a Subservicer to the Trustee a certificate of
a Servicing Officer certifying as to the name and address of the Person to which
such  Custodial  File or such document was delivered and the purpose or purposes
of such  delivery.  In the event of the  liquidation  of a  Mortgage  Loan,  the
Trustee shall deliver the Request for Release with respect thereto to the Master
Servicer upon the Trustee's  receipt of notification from the Master Servicer of
the deposit of the related Liquidation Proceeds in the Custodial Account.

            (c) The Trustee or the Master Servicer on the Trustee's behalf shall
execute and deliver to the Master Servicer,  if necessary,  any court pleadings,
requests for trustee's sale or other  documents  necessary to the foreclosure or
trustee's sale in respect of a Mortgaged Property or to any legal action brought
to obtain judgment  against any Mortgagor on the Mortgage Note or Mortgage or to
obtain a  deficiency  judgment,  or to  enforce  any  other  remedies  or rights
provided by the Mortgage  Note or Mortgage or  otherwise  available at law or in
equity.  Together  with such  documents or pleadings (if signed by the Trustee),
the Master  Servicer  shall deliver to the Trustee a certificate  of a Servicing
Officer  requesting  that such pleadings or documents be executed by the Trustee
and  certifying  as to the reason such  documents or pleadings  are required and
that the execution and delivery  thereof by the Trustee shall not invalidate any
insurance  coverage  under  any  Required  Insurance  Policy  or  invalidate  or
otherwise affect the lien of the Mortgage,  except for the termination of such a
lien upon completion of the foreclosure or trustee's sale.

      Section 3.16. Servicing and Other Compensation; Compensating Interest

            (a)  The  Master  Servicer,   as  compensation  for  its  activities
hereunder,  shall be entitled to receive on each  Distribution  Date the amounts
provided for by clauses (iii), (iv), (v) and (vi) of Section 3.10(a), subject to
clause (e) below.  The amount of  servicing  compensation  provided  for in such
clauses shall be accounted for on a Mortgage Loan-by-Mortgage Loan basis. In the
event that  Liquidation  Proceeds,  Insurance  Proceeds and REO Proceeds (net of
amounts reimbursable  therefrom pursuant to Section 3.10(a)(ii)) in respect of a
Cash Liquidation or REO Disposition  exceed the unpaid principal balance of such
Mortgage  Loan plus  unpaid  interest  accrued  thereon  (including  REO Imputed
Interest)  at a per annum rate equal to the  related Net  Mortgage  Rate (or the
Modified Net Mortgage Rate in the case of a Modified  Mortgage Loan), the Master
Servicer  shall be entitled to retain  therefrom and to pay to itself and/or the
related   Subservicer,   any  Foreclosure  Profits  and  any  Servicing  Fee  or
Subservicing Fee considered to be accrued but unpaid.

            (b) Additional  servicing  compensation  in the form of late payment
charges,  assumption fees, investment income on amounts in the Custodial Account
or the Certificate Account or otherwise shall be retained by the Master Servicer
or the Subservicer to the extent provided herein.

            (c) The Master  Servicer  shall be  required  to pay, or cause to be
paid, all expenses  incurred by it in connection  with its servicing  activities
hereunder (including payment of premiums for the Primary Insurance Policies,  if
any,  to the extent  such  premiums  are not  required to be paid by the related
Mortgagors,  and the fees and  expenses of the Trustee  and the

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Custodian)  and  shall  not be  entitled  to  reimbursement  therefor  except as
specifically provided in Sections 3.10 and 3.14.

            (d) The Master  Servicer's right to receive  servicing  compensation
may not be  transferred  in  whole  or in part  except  in  connection  with the
transfer of all of its  responsibilities  and obligations of the Master Servicer
under this Agreement.

            (e)  Notwithstanding  clauses  (a)  and (b)  above,  the  amount  of
servicing compensation that the Master Servicer shall be entitled to receive for
its activities  hereunder for the period ending on each  Distribution Date shall
be reduced (but not below zero) by the amount of Compensating  Interest (if any)
for such  Distribution  Date used to cover  Prepayment  Interest  Shortfalls  as
provided in Section  3.16(f) below.  Such reduction shall be applied during such
period as follows:  first, to any Servicing Fee or Subservicing Fee to which the
Master Servicer is entitled pursuant to Section 3.10(a)(iii); and second, to any
income or gain  realized  from any  investment  of funds  held in the  Custodial
Account or the  Certificate  Account to which the Master  Servicer  is  entitled
pursuant to Sections 3.07(c) or 4.01(b), respectively. In making such reduction,
the Master  Servicer  shall not  withdraw  from the  Custodial  Account any such
amount  representing  all or a  portion  of the  Servicing  Fee to  which  it is
entitled  pursuant  to  Section  3.10(a)(iii)  and shall not  withdraw  from the
Custodial Account or Certificate Account any such amount to which it is entitled
pursuant to Section 3.07(c) or 4.01(b).

            (f) With  respect  to any  Distribution  Date,  Prepayment  Interest
Shortfalls on the Mortgage Loans will be covered first, by the Master  Servicer,
but  only to the  extent  such  Prepayment  Interest  Shortfalls  do not  exceed
Eligible Master Servicing Compensation.

      Section 3.17. Reports to the Trustee and the Depositor

      Not later  than  fifteen  days after each  Distribution  Date,  the Master
Servicer  shall forward to the Trustee and the Depositor a statement,  certified
by a Servicing Officer,  setting forth the status of the Custodial Account as of
the close of business on such  Distribution  Date as it relates to the  Mortgage
Loans and showing,  for the period covered by such  statement,  the aggregate of
deposits in or withdrawals from the Custodial Account in respect of the Mortgage
Loans for each  category of deposit  specified in Section 3.07 and each category
of withdrawal specified in Section 3.10.

      Section 3.18. Annual Statement as to Compliance

      The Master  Servicer  will deliver to the  Depositor and the Trustee on or
before  the  earlier  of (a)  March 31 of each year or (b) with  respect  to any
calendar  year  during  which  the  Depositor's  annual  report  on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the Commission,  the date on which the annual report on Form 10-K
is required to be filed in  accordance  with the  Exchange Act and the rules and
regulations of the Commission,  a servicer compliance certificate,  signed by an
authorized  officer  of the  Master  Servicer,  as  described  in  Item  1123 of
Regulation AB, to the effect that:

            (i)  A  review  of  the  Master  Servicer's  activities  during  the
reporting period and of its performance under this Agreement has been made under
such officer's supervision.

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            (ii) To the best of such officer's knowledge,  based on such review,
the Master Servicer has fulfilled all of its obligations under this Agreement in
all materials  respects  throughout the reporting period or, if there has been a
failure to fulfill any such obligation in any material respect,  specifying each
such failure known to such officer and the nature and status thereof.

      The Master Servicer shall use  commercially  reasonable  efforts to obtain
from all other parties  participating  in the servicing  function any additional
certifications  required under Item 1123 of Regulation AB to the extent required
to be included in a Report on Form 10-K;  provided,  however,  that a failure to
obtain such certifications shall not be a breach of the Master Servicer's duties
hereunder if any such party fails to deliver such a certification.

      Section 3.19. Annual Independent Public Accountants' Servicing Report

      On or before the earlier of (a) March 31 of each year or (b) with  respect
to any calendar year during which the Depositor's  annual report on Form 10-K is
required  to be filed in  accordance  with the  Exchange  Act and the  rules and
regulations of the Commission,  the date on which the annual report on Form 10-K
is required to be filed in  accordance  with the  Exchange Act and the rules and
regulations of the Commission,  the Master Servicer at its expense shall cause a
firm of independent  public  accountants  which shall be members of the American
Institute of Certified  Public  Accountants to furnish a report to the Depositor
and the Trustee the attestation required under Item 1122(b) of Regulation AB. In
rendering  such  statement,  such firm may rely,  as to matters  relating to the
direct servicing of mortgage loans by Subservicers,  upon comparable  statements
for examinations  conducted by independent public  accountants  substantially in
accordance  with standards  established  by the American  Institute of Certified
Public Accountants  (rendered within one year of such statement) with respect to
such Subservicers.

      Section 3.20. Right of the Depositor in Respect of the Master Servicer

      The Master  Servicer  shall afford the  Depositor  and the  Trustee,  upon
reasonable notice, during normal business hours access to all records maintained
by the Master  Servicer in respect of its rights and  obligations  hereunder and
access to officers of the Master Servicer responsible for such obligations. Upon
request,  the Master  Servicer  shall furnish the Depositor with its most recent
financial statements and such other information as the Master Servicer possesses
regarding its business, affairs, property and condition, financial or otherwise.
The Master  Servicer  shall also  cooperate  with all  reasonable  requests  for
information  including,  but not limited to, notices, tapes and copies of files,
regarding  itself,  the Mortgage  Loans or the  Certificates  from any Person or
Persons  identified by the Depositor or Residential  Funding.  The Depositor may
enforce the obligation of the Master  Servicer  hereunder and may, but it is not
obligated to, perform or cause a designee to perform,  any defaulted  obligation
of the Master  Servicer  hereunder or exercise the rights of the Master Servicer
hereunder; provided that the Master Servicer shall not be relieved of any of its
obligations  hereunder  by virtue of such  performance  by the  Depositor or its
designee. Neither the Depositor nor the Trustee shall have the responsibility or
liability  for any  action or  failure  to act by the  Master  Servicer  and the
Depositor is not obligated to supervise the  performance of the Master  Servicer
under this Agreement or otherwise.

      Section 3.21. Advance Facility

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            (a) The  Master  Servicer  is  hereby  authorized  to  enter  into a
financing or other facility (any such arrangement,  an "Advance Facility") under
which (1) the Master  Servicer  sells,  assigns or pledges to another Person (an
"Advancing  Person") the Master  Servicer's  rights  under this  Agreement to be
reimbursed for any Advances or Servicing Advances and/or (2) an Advancing Person
agrees to fund some or all Advances  and/or  Servicing  Advances  required to be
made by the  Master  Servicer  pursuant  to this  Agreement.  No  consent of the
Depositor,  the  Trustee,  the  Certificateholders  or any other  party shall be
required  before  the  Master  Servicer  may  enter  into an  Advance  Facility.
Notwithstanding  the existence of any Advance  Facility under which an Advancing
Person  agrees  to  fund  Advances  and/or  Servicing  Advances  on  the  Master
Servicer's  behalf,  the Master Servicer shall remain obligated pursuant to this
Agreement to make Advances and Servicing Advances pursuant to and as required by
this Agreement.  If the Master Servicer enters into an Advance Facility, and for
so long as an Advancing Person remains entitled to receive reimbursement for any
Advances including  Nonrecoverable  Advances ("Advance  Reimbursement  Amounts")
and/or Servicing Advances including  Nonrecoverable Advances ("Servicing Advance
Reimbursement   Amounts"  and  together  with  Advance  Reimbursement   Amounts,
"Reimbursement  Amounts") (in each case to the extent such type of Reimbursement
Amount is included in the Advance  Facility),  as  applicable,  pursuant to this
Agreement,  then the Master Servicer shall identify such  Reimbursement  Amounts
consistent with the  reimbursement  rights set forth in Section  3.10(a)(ii) and
(vii) and remit such Reimbursement  Amounts in accordance with this Section 3.21
or otherwise  in  accordance  with the  documentation  establishing  the Advance
Facility  to such  Advancing  Person or to a  trustee,  agent or  custodian  (an
"Advance  Facility  Trustee")  designated by such Advancing Person in an Advance
Facility  Notice  described  below  in  Section  3.21(b).   Notwithstanding  the
foregoing,  if so required  pursuant to the terms of the Advance  Facility,  the
Master Servicer may direct,  and if so directed in writing the Trustee is hereby
authorized to and shall pay to the Advance  Facility  Trustee the  Reimbursement
Amounts identified pursuant to the preceding sentence. An Advancing Person whose
obligations  hereunder are limited to the funding of Advances  and/or  Servicing
Advances shall not be required to meet the  qualifications  of a Master Servicer
or a Subservicer  pursuant to Section 3.02(a) or 6.02(c) hereof and shall not be
deemed to be a Subservicer under this Agreement. Notwithstanding anything to the
contrary herein,  in no event shall Advance  Reimbursement  Amounts or Servicing
Advance Reimbursement  Amounts be included in the Available  Distribution Amount
or distributed to Certificateholders.

            (b) If the Master Servicer enters into an Advance Facility and makes
the election set forth in Section  3.21(a),  the Master Servicer and the related
Advancing  Person  shall  deliver to the  Trustee a written  notice and  payment
instruction (an "Advance Facility  Notice"),  providing the Trustee with written
payment instructions as to where to remit Advance  Reimbursement  Amounts and/or
Servicing  Advance  Reimbursement  Amounts  (each  to the  extent  such  type of
Reimbursement  Amount is included  within the Advance  Facility)  on  subsequent
Distribution  Dates.  The  payment  instruction  shall  require  the  applicable
Reimbursement Amounts to be distributed to the Advancing Person or to an Advance
Facility Trustee  designated in the Advance Facility Notice. An Advance Facility
Notice  may only be  terminated  by the joint  written  direction  of the Master
Servicer  and the related  Advancing  Person (and any related  Advance  Facility
Trustee).

            (c) Reimbursement Amounts shall consist solely of amounts in respect
of Advances  and/or  Servicing  Advances made with respect to the Mortgage Loans
for  which  the

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Master  Servicer  would be  permitted  to reimburse  itself in  accordance  with
Section  3.10(a)(ii)  and (vii)  hereof,  assuming  the Master  Servicer  or the
Advancing Person had made the related  Advance(s)  and/or Servicing  Advance(s).
Notwithstanding   the  foregoing,   except  with  respect  to  reimbursement  of
Nonrecoverable  Advances as set forth in Section 3.10(c) of this  Agreement,  no
Person  shall be entitled  to  reimbursement  from funds held in the  Collection
Account  for  future  distribution  to   Certificateholders   pursuant  to  this
Agreement.  Neither  the  Depositor  nor the  Trustee  shall  have  any  duty or
liability with respect to the calculation of any Reimbursement Amount, nor shall
the  Depositor  or the Trustee have any  responsibility  to track or monitor the
administration  of the Advance  Facility  and the  Depositor  shall not have any
responsibility to track, monitor or verify the payment of Reimbursement  Amounts
to the related Advancing Person or Advance Facility Trustee. The Master Servicer
shall  maintain  and  provide  to  any  successor  master  servicer  a  detailed
accounting on a loan-by-loan  basis as to amounts advanced by, sold,  pledged or
assigned to, and  reimbursed  to any  Advancing  Person.  The  successor  master
servicer  shall be  entitled  to rely on any such  information  provided  by the
Master  Servicer and the successor  master  servicer shall not be liable for any
errors in such information.

            (d) Upon the direction of and at the expense of the Master Servicer,
the Trustee  agrees to execute  such  acknowledgments,  certificates,  and other
documents reasonably satisfactory to the Trustee provided by the Master Servicer
recognizing the interests of any Advancing Person or Advance Facility Trustee in
such  Reimbursement  Amounts as the Master Servicer may cause to be made subject
to Advance Facilities pursuant to this Section 3.21, and such other documents in
connection with such Advance  Facility as may be reasonably  requested from time
to time by any  Advancing  Person or Advance  Facility  Trustee  and  reasonably
satisfactory to the Trustee.

            (e)  Reimbursement  Amounts  collected with respect to each Mortgage
Loan shall be  allocated  to  outstanding  unreimbursed  Advances  or  Servicing
Advances  (as the case may be) made  with  respect  to that  Mortgage  Loan on a
"first-in,  first out" ("FIFO") basis,  subject to the  qualifications set forth
below:

                  (i) Any successor  Master  Servicer to Residential  Funding (a
"Successor  Master  Servicer")  and the  Advancing  Person or  Advance  Facility
Trustee shall be required to apply all amounts available in accordance with this
Section 3.21(e) to the  reimbursement of Advances and Servicing  Advances in the
manner provided for herein;  provided,  however,  that after the succession of a
Successor  Master  Servicer,  (A) to the extent that any  Advances or  Servicing
Advances  with  respect to any  particular  Mortgage  Loan are  reimbursed  from
payments or  recoveries,  if any, from the related  Mortgagor,  and  Liquidation
Proceeds or Insurance  Proceeds,  if any,  with respect to that  Mortgage  Loan,
reimbursement  shall be made, first, to the Advancing Person or Advance Facility
Trustee  in  respect  of  Advances  and/or  Servicing  Advances  related to that
Mortgage Loan to the extent of the interest of the  Advancing  Person or Advance
Facility  Trustee in such  Advances  and/or  Servicing  Advances,  second to the
Master Servicer in respect of Advances and/or Servicing Advances related to that
Mortgage  Loan in  excess  of those in which the  Advancing  Person  or  Advance
Facility  Trustee  Person has an interest,  and third,  to the Successor  Master
Servicer in respect of any other Advances and/or  Servicing  Advances related to
that  Mortgage  Loan,  from  such  sources  as  and  when  collected,   and  (B)
reimbursements  of  Advances  and  Servicing  Advances  that are  Nonrecoverable
Advances  shall be made pro rata to the  Advancing  Person or  Advance  Facility

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Trustee,  on the one hand, and any such Successor Master Servicer,  on the other
hand, on the basis of the respective aggregate outstanding unreimbursed Advances
and Servicing  Advances that are  Nonrecoverable  Advances owed to the Advancing
Person,  Advance Facility Trustee or Master Servicer pursuant to this Agreement,
on the one hand, and any such Successor Master Servicer,  on the other hand, and
without  regard to the date on which any such  Advances  or  Servicing  Advances
shall have been made. In the event that, as a result of the FIFO allocation made
pursuant to this Section 3.21(e),  some or all of a Reimbursement Amount paid to
the  Advancing  Person or  Advance  Facility  Trustee  relates  to  Advances  or
Servicing Advances that were made by a Person other than Residential  Funding or
the Advancing Person or Advance Facility  Trustee,  then the Advancing Person or
Advance  Facility  Trustee  shall be  required  to  remit  any  portion  of such
Reimbursement   Amount  to  the  Person   entitled  to  such   portion  of  such
Reimbursement  Amount.   Without  limiting  the  generality  of  the  foregoing,
Residential  Funding  shall remain  entitled to be  reimbursed  by the Advancing
Person or Advance  Facility  Trustee for all  Advances  and  Servicing  Advances
funded by Residential Funding to the extent the related Reimbursement  Amount(s)
have not been  assigned or pledged to an  Advancing  Person or Advance  Facility
Trustee.  The  documentation  establishing  any Advance  Facility  shall require
Residential  Funding  to  provide  to the  related  Advancing  Person or Advance
Facility  Trustee loan by loan  information  with respect to each  Reimbursement
Amount  distributed to such Advancing Person or Advance Facility Trustee on each
date of remittance thereof to such Advancing Person or Advance Facility Trustee,
to enable  the  Advancing  Person or Advance  Facility  Trustee to make the FIFO
allocation of each Reimbursement Amount with respect to each Mortgage Loan.

                  (ii) By way of  illustration,  and not by way of limiting  the
generality of the foregoing,  if the Master Servicer resigns or is terminated at
a time  when the  Master  Servicer  is a party to an  Advance  Facility,  and is
replaced by a Successor  Master  Servicer,  and the  Successor  Master  Servicer
directly  funds  Advances or Servicing  Advances with respect to a Mortgage Loan
and does not assign or pledge the related  Reimbursement  Amounts to the related
Advancing Person or Advance Facility  Trustee,  then all payments and recoveries
received  from the related  Mortgagor  or  received  in the form of  Liquidation
Proceeds  with  respect to such  Mortgage  Loan  (including  Insurance  Proceeds
collected  in  connection  with a  liquidation  of such  Mortgage  Loan) will be
allocated first to the Advancing  Person or Advance  Facility  Trustee until the
related  Reimbursement  Amounts attributable to such Mortgage Loan that are owed
to the Master  Servicer and the Advancing  Person,  which were made prior to any
Advances or Servicing Advances made by the Successor Master Servicer,  have been
reimbursed  in full,  at which  point the  Successor  Master  Servicer  shall be
entitled to retain all related Reimbursement Amounts subsequently collected with
respect to that Mortgage Loan pursuant to Section 3.10 of this Agreement. To the
extent that the Advances or Servicing Advances are Nonrecoverable Advances to be
reimbursed on an aggregate basis pursuant to Section 3.10 of this Agreement, the
reimbursement  paid in this manner will be made pro rata to the Advancing Person
or Advance Facility Trustee, on the one hand, and the Successor Master Servicer,
on the other hand, as described in clause (i)(B) above.

            (f) The Master  Servicer shall remain  entitled to be reimbursed for
all Advances and Servicing  Advances funded by the Master Servicer to the extent
the related  rights to be reimbursed  therefor  have not been sold,  assigned or
pledged to an Advancing Person.

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<PAGE>

            (g) Any amendment to this Section 3.21 or to any other  provision of
this  Agreement  that may be necessary or  appropriate to effect the terms of an
Advance  Facility  as  described  generally  in  this  Section  3.21,  including
amendments to add provisions  relating to a successor  master  servicer,  may be
entered  into by the  Trustee,  Depositor  and the Master  Servicer  without the
consent of any  Certificateholder,  with written  confirmation  from each Rating
Agency that the amendment will not result in the reduction of the ratings on any
class of the  Certificates  below the  lesser of the then  current  or  original
ratings  on such  Certificates,  notwithstanding  anything  to the  contrary  in
Section 11.01 of or elsewhere in this Agreement.

            (h) Any rights of set-off  that the Trust  Fund,  the  Trustee,  the
Depositor,  any Successor  Master  Servicer or any other Person might  otherwise
have against the Master  Servicer under this  Agreement  shall not attach to any
rights to be reimbursed for Advances or Servicing  Advances that have been sold,
transferred, pledged, conveyed or assigned to any Advancing Person.

            (i) At any time when an Advancing  Person shall have ceased  funding
Advances and/or Servicing Advances (as the case may be) and the Advancing Person
or related Advance  Facility Trustee shall have received  Reimbursement  Amounts
sufficient in the aggregate to reimburse all Advances and/or Servicing  Advances
(as the case may be) the right to  reimbursement  for which were assigned to the
Advancing  Person,  then upon the  delivery  of a written  notice  signed by the
Advancing  Person and the Master  Servicer  or its  successor  or assign) to the
Trustee  terminating  the  Advance  Facility  Notice  (the  "Notice of  Facility
Termination"),  the Master Servicer or its Successor Master Servicer shall again
be entitled to withdraw  and retain the related  Reimbursement  Amounts from the
Custodial Account pursuant to Section 3.10.

            (j) After  delivery of any Advance  Facility  Notice,  and until any
such  Advance  Facility  Notice  has been  terminated  by a Notice  of  Facility
Termination,  this Section 3.21 may not be amended or otherwise modified without
the prior written consent of the related Advancing Person.

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                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

      Section 4.01. Certificate Account

            (a) The  Master  Servicer  acting  as  agent  of the  Trustee  shall
establish and maintain a Certificate  Account in which the Master Servicer shall
cause to be  deposited  on behalf of the Trustee on or before 2:00 P.M. New York
time on each  Certificate  Account  Deposit Date by wire transfer of immediately
available  funds  an  amount  equal  to the  sum  of (i)  any  Advance  for  the
immediately  succeeding  Distribution  Date,  (ii)  any  amount  required  to be
deposited in the  Certificate  Account  pursuant to Section  3.12(a),  (iii) any
amount required to be deposited in the Certificate  Account  pursuant to Section
3.16(e) or Section 4.07, (iv) any amount required to be paid pursuant to Section
9.01, (v) all other amounts  constituting the Available  Distribution Amount for
the  immediately   succeeding   Distribution  Date  and  (vi)  any  payments  or
collections in the nature of prepayment  charges received by the Master Servicer
in respect of the Mortgage Loans and the related Prepayment Period.

            (b) On or prior  to the  Business  Day  immediately  following  each
Determination  Date, the Master Servicer shall determine any amounts owed by the
Swap Counterparty  under the Swap Agreement and inform the Trustee in writing of
the amount so calculated.

            (c)  The  Trustee  shall,  upon  written  request  from  the  Master
Servicer, invest or cause the institution maintaining the Certificate Account to
invest the funds in the Certificate Account in Permitted Investments  designated
in the name of the  Trustee  for the  benefit of the  Certificateholders,  which
shall  mature not later than the Business Day next  preceding  the  Distribution
Date  next  following  the  date of such  investment  (except  that  (i) if such
Permitted  Investment is an obligation of the  institution  that  maintains such
account  or a fund for which such  institution  serves as  custodian,  then such
Permitted  Investment  may mature on such  Distribution  Date and (ii) any other
investment  may mature on such  Distribution  Date if the Trustee  shall advance
funds on such Distribution Date to the Certificate Account in the amount payable
on such  investment on such  Distribution  Date,  pending receipt thereof to the
extent  necessary to make  distributions on the  Certificates)  and shall not be
sold or disposed of prior to  maturity.  All income and gain  realized  from any
such  investment  shall be for the benefit of the Master  Servicer  and shall be
subject to its  withdrawal or order from time to time.  The amount of any losses
incurred  in  respect  of  any  such  investments  shall  be  deposited  in  the
Certificate  Account by the Master Servicer out of its own funds  immediately as
realized.

      Section 4.02. Distributions

            (a) [On each Distribution  Date, the Trustee (or the Paying Agent on
behalf of the Trustee) shall allocate and distribute the Available  Distribution
Amount for such date to the interests issued in respect of REMIC I, REMIC II and
REMIC III as specified in this Section.]

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<PAGE>

            (b) (1) [On each Distribution Date, the REMIC I Distribution  Amount
shall be  distributed  by REMIC I to REMIC II on  account of the REMIC I Regular
Interests  in the amounts and with the  priorities  set forth in the  definition
thereof.]

                  (2) On each  Distribution  Date,  the  REMIC  II  Distribution
Amount shall be  distributed by REMIC II to REMIC III on account of the REMIC II
Regular  Interests  in the  amounts  and with the  priorities  set  forth in the
definition thereof.

                  (3)  Notwithstanding  the  distributions  on the REMIC Regular
Interests  described in this  Section  4.02(b),  distribution  of funds from the
Certificate  Account shall be made only in accordance with Sections  4.02(c) and
(d).

            (c) [On each  Distribution Date (x) the Master Servicer on behalf of
the Trustee or (y) the Paying Agent appointed by the Trustee,  shall  distribute
to each  Certificateholder  of record on the next  preceding  Record Date (other
than as provided in Section 9.01  respecting the final  distribution)  either in
immediately  available  funds (by wire  transfer or otherwise) to the account of
such  Certificateholder at a bank or other entity having appropriate  facilities
therefor,  if such  Certificateholder has so notified the Master Servicer or the
Paying  Agent,  as the case may be,  or,  if such  Certificateholder  has not so
notified the Master  Servicer or the Paying  Agent by the Record Date,  by check
mailed to such  Certificateholder at the address of such Holder appearing in the
Certificate Register such Certificateholder's share (which share with respect to
each Class of  Certificates,  shall be based on the aggregate of the  Percentage
Interests  represented  by  Certificates  of the  applicable  Class held by such
Holder of the following  amounts),  in the following order of priority,  in each
case to the  extent  of the  Available  Distribution  Amount on  deposit  in the
Certificate Account [(or, with respect to clause (xi)(B) below, to the extent of
prepayment charges on deposit in the Certificate Account)]:

                  (i) to the Class A Certificateholders, the Accrued Certificate
Interest payable on the Class A Certificates  with respect to such  Distribution
Date, plus any related amounts accrued pursuant to this clause (i) but remaining
unpaid from any prior Distribution Date, being paid from and in reduction of the
Available Distribution Amount for such Distribution Date;

                  (ii)  to  the   Class  M   Certificateholders   and   Class  B
Certificateholders from the amount, if any, of the Available Distribution Amount
remaining after the foregoing  distributions,  the Accrued Certificate  Interest
payable on the Class M  Certificates  and Class B  Certificates  with respect to
such Distribution Date, plus any related amounts accrued pursuant to this clause
(ii) but remaining unpaid from any prior Distribution Date, sequentially, to the
[Class  M-1  Certificateholders,   Class  M-2   Certificateholders,   Class  M-3
Certificateholders,  Class M-4 Certificateholders, Class M-5 Certificateholders,
Class  M-6   Certificateholders,   Class  M-7   Certificateholders,   Class  M-8
Certificateholders  and Class B  Certificateholders],  in that order, being paid
from and in reduction of the Available Distribution Amount for such Distribution
Date;

                  (iii) [reserved]

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<PAGE>

                  (iv) the Principal Distribution Amount shall be distributed as
follows,  in each case to the  extent of the  remaining  Principal  Distribution
Amount:

                  (A)  [first,  the  Class  A  Principal   Distribution  Amount,
            sequentially,  to  the  Class  A-1  Certificateholders,   Class  A-2
            Certificateholders and Class A-3 Certificateholders,  in that order,
            until the  aggregate  Certificate  Principal  Balance of the Class A
            Certificates has been reduced to zero;

                  (B) third, to the Class M-1 Certificateholders,  the Class M-1
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-1 Certificates has been reduced to zero;

                  (C) fourth, to the Class M-2 Certificateholders, the Class M-2
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-2 Certificates has been reduced to zero;

                  (D) fifth, to the Class M-3 Certificateholders,  the Class M-3
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-3 Certificates has been reduced to zero;

                  (E) sixth, to the Class M-4 Certificateholders,  the Class M-4
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-4 Certificates has been reduced to zero;

                  (F) seventh,  to the Class M-5  Certificateholders,  the Class
            M-5 Principal  Distribution Amount, until the Certificate  Principal
            Balance of the Class M-5 Certificates has been reduced to zero;

                  (G) eighth, to the Class M-6 Certificateholders, the Class M-6
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-6 Certificates has been reduced to zero;

                  (H) ninth, to the Class M-7 Certificateholders,  the Class M-7
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-7 Certificates has been reduced to zero;

                  (I) tenth, to the Class M-8 Certificateholders,  the Class M-8
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class M-8 Certificates has been reduced to zero;

                  (J) eleventh, to the Class B  Certificateholders,  the Class B
            Principal  Distribution  Amount,  until  the  Certificate  Principal
            Balance of the Class B Certificates has been reduced to zero]; and

                  (v)   to   the   Class   A    Certificateholders,    Class   M
Certificateholders and Class B Certificateholders,  the amount of any Prepayment
Interest Shortfalls  allocated thereto for such Distribution Date, on a pro rata
basis based on Prepayment  Interest  Shortfalls  allocated

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thereto to the extent not offset by Eligible  Master  Servicing  Compensation on
such Distribution Date;

                  (vi)   to   the   Class   A   Certificateholders,    Class   M
Certificateholders and Class B Certificateholders,  the amount of any Prepayment
Interest  Shortfalls  previously  allocated  thereto remaining unpaid from prior
Distribution  Dates together with interest  thereon at the related  Pass-Through
Rate,  on a pro  rata  basis  based on  unpaid  Prepayment  Interest  Shortfalls
previously allocated thereto;

                  (vii) to the  Class A  Certificateholders,  the  amount of any
unpaid Class A Basis Risk Shortfall  Carry-Forward Amounts allocated thereto, on
a pro rata  basis  based on the amount of unpaid  Class A Basis  Risk  Shortfall
Carry-Forward  Amounts allocated thereto,  and then sequentially,  to the [Class
M-1  Certificateholders,   the  Class  M-2  Certificateholders,  the  Class  M-3
Certificateholders,   the   Class   M-4   Certificateholders,   the   Class  M-5
Certificateholders,   the   Class   M-6   Certificateholders,   the   Class  M-7
Certificateholders,    the   Class   M-8    Certificateholders   and   Class   B
Certificateholders,]  in  that  order,  the  amount  of any  unpaid  Basis  Risk
Shortfall Carry-Forward Amounts allocated thereto;

                  (viii)   to  the   Class   A   Certificateholders,   Class   M
Certificateholders  and  Class  B  Certificateholders,   Relief  Act  Shortfalls
allocated  thereto  for such  Distribution  Date,  on a pro rata basis  based on
Relief Act Shortfalls allocated thereto for such Distribution Date,

                  (ix) first, to the Class A  Certificateholders,  the principal
portion of any Realized Losses  previously  allocated to those  Certificates and
remaining unreimbursed,  on a pro rata basis based on their respective principal
portion of any Realized Losses  previously  allocated to those  Certificates and
remaining   unreimbursed,   and   then,   sequentially,   to   the   Class   M-1
Certificateholders,   the   Class   M-2   Certificateholders,   the   Class  M-3
Certificateholders,   the   Class   M-4   Certificateholders,   the   Class  M-5
Certificateholders,   the   Class   M-6   Certificateholders,   the   Class  M-7
Certificateholders,   the   Class  M-8   Certificateholders   and  the  Class  B
Certificateholders,  in that order, the principal portion of any Realized Losses
previously allocated to such Class and remaining unreimbursed;

                  (x) to the Swap Account for payment to the Swap  Counterparty,
any Swap Termination Payments due to a Swap Counterparty Trigger Event.

                  (xi) to the Class SB  Certificates,  (A) from the  amount,  if
any, of the Excess Cash Flow remaining  after the foregoing  distributions,  the
sum  of (I)  Accrued  Certificate  Interest  thereon,  (II)  the  amount  of any
Overcollateralization  Reduction Amount for such Distribution Date and (III) for
any Distribution  Date after the Certificate  Principal Balance of each Class of
Class A  Certificates,  Class M Certificates  and Class B Certificates  has been
reduced  to zero,  the  Overcollateralization  Amount  and (B)  from  prepayment
charges on deposit in the Certificate  Account,  any prepayment charges received
on the Mortgage Loans during the related Prepayment Period; and

                  (xii) to the Class R-III  Certificateholders,  the balance, if
any, of the Excess Cash Flow.

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<PAGE>

      Notwithstanding  anything in this  Agreement to the contrary,  all amounts
owed by the  Trust to the Swap  Counterparty  under  the Swap  Agreement  in any
calendar  month shall be limited by the  Available  Distribution  Amount for the
Distribution Date in such calendar month, before giving effect to any reductions
to the  Available  Distribution  Amount  to  account  for any Net Swap  Payments
required to be made to the Swap Counterparty.

            (d)  Notwithstanding the foregoing clause (c), upon the reduction of
the Certificate  Principal Balance of a Class of [Class A Certificates,  Class M
Certificates or Class B Certificates]  to zero, such Class of Certificates  will
not be entitled to further distributions pursuant to Section 4.02.

            (e) Each distribution with respect to a Book-Entry Certificate shall
be paid to the  Depository,  as  Holder  thereof,  and the  Depository  shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository   Participants  in  accordance  with  its  normal  procedures.   Each
Depository  Participant shall be responsible for disbursing such distribution to
the  Certificate  Owners that it represents  and to each indirect  participating
brokerage firm (a "brokerage firm" or "indirect  participating  firm") for which
it acts as agent.  Each brokerage firm shall be responsible for disbursing funds
to  the  Certificate  Owners  that  it  represents.  None  of the  Trustee,  the
Certificate  Registrar,  the  Depositor  or the Master  Servicer  shall have any
responsibility  therefor  except as  otherwise  provided  by this  Agreement  or
applicable law.

            (f) Except as  otherwise  provided  in Section  9.01,  if the Master
Servicer  anticipates  that a final  distribution  with  respect to any Class of
Certificates  will be made on the next  Distribution  Date, the Master  Servicer
shall,  no  later  than  the  Determination  Date in the  month  of  such  final
distribution,  notify the Trustee and the Trustee  shall,  no later than two (2)
Business Days after such Determination Date, mail on such date to each Holder of
such  Class of  Certificates  a  notice  to the  effect  that:  (i) the  Trustee
anticipates  that  the  final   distribution  with  respect  to  such  Class  of
Certificates  will be made on such  Distribution Date but only upon presentation
and surrender of such  Certificates at the office of the Trustee or as otherwise
specified  therein,  and (ii) no interest shall accrue on such Certificates from
and  after  the  end  of  the  prior   calendar   month.   In  the  event   that
Certificateholders  required to surrender their Certificates pursuant to Section
9.01(c) do not surrender their Certificates for final cancellation,  the Trustee
shall  cause  funds  distributable  with  respect  to  such  Certificates  to be
withdrawn from the Certificate Account and credited to a separate escrow account
for the benefit of such Certificateholders as provided in Section 9.01(d).

      Section  4.03.  Statements  to  Certificateholders;  Statements  to Rating
Agencies; Exchange Act Reporting

            (a) Concurrently with each  distribution  charged to the Certificate
Account and with respect to each  Distribution  Date the Master  Servicer  shall
forward to the Trustee and the Trustee shall  forward by mail or otherwise  make
available   electronically  on  its  website  (which  may  be  obtained  by  any
Certificateholder  by telephoning  the Trustee at (877) 722-1095) to each Holder
and the Depositor a statement setting forth the following information as to each
Class of Certificates, in each case to the extent applicable:

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<PAGE>

                  (i)  the  applicable  Record  Date,   Determination  Date  and
Distribution Date;

                  (ii) the aggregate amount of payments received with respect to
the Mortgage Loans, including prepayment amounts;

                  (iii) the  Servicing Fee and  Subservicing  Fee payable to the
Master Servicer and the Subservicer;

                  (iv) the amount of any other fees or  expenses  paid,  and the
identity of the party receiving such fees or expenses;

                  (v)   (A)   the   amount   of   such   distribution   to   the
Certificateholders  of such Class  applied to reduce the  Certificate  Principal
Balance  thereof,  and (B) the aggregate  amount included  therein  representing
Principal Prepayments;

                  (vi) the amount of such  distribution to Holders of such Class
of Certificates allocable to interest;

                  (vii) if the  distribution  to the  Holders  of such  Class of
Certificates  is less than the full amount that would be  distributable  to such
Holders if there were  sufficient  funds available  therefor,  the amount of the
shortfall;

                  (viii) the  aggregate  Certificate  Principal  Balance of each
Class of the  Certificates,  after giving effect to the amounts  distributed  on
such  Distribution  Date,  separately  identifying any reduction  thereof due to
Realized Losses other than pursuant to an actual distribution of principal;

                  (ix) the percentage of the outstanding  principal  balances of
the [Class A Certificates  and Class M Certificates]  after giving effect to the
distributions on that Distribution Date;

                  (x) the number and Stated  Principal  Balance of the  Mortgage
Loans after giving effect to the distribution of principal on such  Distribution
Date and the number of Mortgage  Loans at the beginning and end of the preceding
Due Period;

                  (xi) on the basis of the most recent  reports  furnished to it
by  Sub-Subservicers,  the number and aggregate  principal  balances of Mortgage
Loans that are Delinquent (A) 30-59 days, (B) 60-89 days and (C) 90 or more days
and the number and  aggregate  principal  balance of Mortgage  Loans that are in
foreclosure;

                  (xii) the amount,  terms and general purpose of any Advance by
the Master Servicer pursuant to Section 4.04 and the amount of all Advances that
have been reimbursed during the preceding Due Period;

                  (xiii) any material  modifications,  extensions  or waivers to
the terms of the Mortgage Loans during the Due Period or that have  cumulatively
become material over time;

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<PAGE>

                  (xiv) any material  breaches of Mortgage Loan  representations
or warranties or covenants in the Agreement;

                  (xv) the number, aggregate principal balance and book value of
any REO Properties;

                  (xvi) the aggregate  Accrued  Certificate  Interest  remaining
unpaid,  if any,  for each Class of  Certificates,  after  giving  effect to the
distribution made on such Distribution Date;

                  (xvii) the aggregate amount of Realized Losses with respect to
the  Mortgage  Loans  for such  Distribution  Date and the  aggregate  amount of
Realized  Losses with respect to the Mortgage  Loans  incurred since the Cut-off
Date;

                  (xviii) the  Pass-Through  Rate on each Class of Certificates,
separately  identifying  One-Month LIBOR for such  Distribution Date and the Net
WAC Cap Rate;

                  (xix)  the  Overcollateralization   Amount  and  the  Required
Overcollateralization Amount following such Distribution Date;

                  (xx)  the  number  and  aggregate  principal  balance  of  the
Mortgage Loans repurchased under Section 4.07;

                  (xxi) the aggregate  amount of any recoveries  with respect to
the Mortgage Loans on previously  foreclosed loans from Residential  Funding due
to a breach of representation or warranty;

                  (xxii) the weighted average  remaining term to maturity of the
Mortgage  Loans  after  giving  effect  to  the  amounts   distributed  on  such
Distribution Date;

                  (xxiii) the weighted  average  Mortgage  Rates of the Mortgage
Loans after giving effect to the amounts distributed on such Distribution Date;

                  (xxiv) [the Class A Basis Risk  Shortfall,  Class A Basis Risk
Shortfall Carry-Forward Amount, Class M Basis Risk Shortfall, Class M Basis Risk
Shortfall,  Class B Basis Risk  Shortfall  Carry-Forward  Amount and  Prepayment
Interest Shortfalls;]

                  (xxv)  the  amount  of any Net  Swap  Payment  payable  to the
Trustee  on  behalf  of the  Trust,  any Net Swap  Payment  payable  to the Swap
Counterparty,  any Swap Termination  Payment payable to the Trustee on behalf of
the Trust and any Swap Termination Payment payable to the Swap Counterparty; and

                  (xxvi) the occurrence of the Stepdown Date.

      In the case of  information  furnished  pursuant  to clauses  (i) and (ii)
above,  the amounts shall be expressed as a dollar amount per Certificate with a
$1,000 denomination. In addition to the statement provided to the Trustee as set
forth in this Section 4.03(a),  the Master Servicer shall provide to any manager
of a trust fund consisting of some or all of the  Certificates,  upon

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reasonable request,  such additional  information as is reasonably obtainable by
the Master Servicer at no additional  expense to the Master  Servicer.  Also, at
the  request  of  a  Rating  Agency,  the  Master  Servicer  shall  provide  the
information  relating to the Reportable Modified Mortgage Loans substantially in
the form attached  hereto as Exhibit P to such Rating Agency within a reasonable
period  of time;  provided,  however,  that the  Master  Servicer  shall  not be
required to provide such  information more than four times in a calendar year to
any Rating Agency.

            (b)  Within  a  reasonable  period  of  time  after  the end of each
calendar year, the Master Servicer shall prepare,  or cause to be prepared,  and
the Trustee shall forward,  or cause to be forwarded,  to each Person who at any
time  during the  calendar  year was the Holder of a  Certificate,  other than a
Class R Certificate, a statement containing the information set forth in clauses
[(i) and  (ii)]  referred  to in of  subsection  (a) above  aggregated  for such
calendar  year or  applicable  portion  thereof  during  which such Person was a
Certificateholder.  Such  obligation of the Master  Servicer  shall be deemed to
have been  satisfied  to the extent that  substantially  comparable  information
shall be provided by the Master  Servicer  pursuant to any  requirements  of the
Code.

            (c)  Within  a  reasonable  period  of  time  after  the end of each
calendar year, the Master Servicer shall prepare,  or cause to be prepared,  and
shall forward,  or cause to be forwarded,  to each Person who at any time during
the  calendar  year  was  the  Holder  of a  Class R  Certificate,  a  statement
containing the applicable  distribution  information  provided  pursuant to this
Section 4.03  aggregated  for such calendar year or applicable  portion  thereof
during  which  such  Person  was  the  Holder  of a Class  R  Certificate.  Such
obligation of the Master  Servicer shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the Master
Servicer pursuant to any requirements of the Code.

            (d) Upon the written  request of any  Certificateholder,  the Master
Servicer,  as soon as  reasonably  practicable,  shall  provide  the  requesting
Certificateholder with such information as is necessary and appropriate,  in the
Master  Servicer's  sole  discretion,  for  purposes  of  satisfying  applicable
reporting requirements under Rule 144A.

            (e) The Master  Servicer  shall,  on behalf of the  Depositor and in
respect of the Trust Fund,  sign and cause to be filed with the  Commission  any
periodic  reports required to be filed under the provisions of the Exchange Act,
and the rules and regulations of the Commission thereunder,  including,  without
limitation, reports on Form 10-K, Form 10-D and Form 8-K. In connection with the
preparation  and filing of such  periodic  reports,  the  Trustee  shall  timely
provide to the Master Servicer (I) a list of  Certificateholders as shown on the
Certificate  Register as of the end of each  calendar  year,  (II) copies of all
pleadings,  other legal process and any other documents  relating to any claims,
charges or complaints involving the Trustee, as trustee hereunder,  or the Trust
Fund that are received by the Trustee,  (III) notice of all matters that, to the
actual knowledge of a Responsible Officer of the Trustee, have been submitted to
a vote of the  Certificateholders,  other  than  those  matters  that  have been
submitted to a vote of the Certificateholders at the request of the Depositor or
the Master  Servicer,  and (IV) notice of any failure of the Trustee to make any
distribution  to the  Certificateholders  as  required  pursuant  to the  Series
Supplement. Neither the Master Servicer nor the Trustee shall have any liability
with respect to the Master  Servicer's  failure to properly prepare or file such
periodic reports resulting

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from or relating  to the Master  Servicer's  inability  or failure to obtain any
information  not resulting from the Master  Servicer's own negligence or willful
misconduct.

            (f) Any Form 10-K filed with the Commission in connection  with this
Section 4.03 shall include,  with respect to the  Certificates  relating to such
10-K:

                  (i) A certification, signed by the senior officer in charge of
the servicing functions of the Master Servicer,  in the form attached as Exhibit
T-1 hereto or such other form as may be required or permitted by the  Commission
(the "Form 10-K  Certification"),  in  compliance  with Rules  13a-14 and 15d-14
under the Exchange Act and any additional directives of the Commission.

                  (ii) A report  regarding its  assessment of compliance  during
the preceding calendar year with all applicable  servicing criteria set forth in
relevant  Commission  regulations  with  respect to  mortgage-backed  securities
transactions  taken as a whole  involving the Master Servicer that are backed by
the same types of assets as those backing the  certificates,  as well as similar
reports on assessment of compliance received from other parties participating in
the  servicing  function  as required by  relevant  Commission  regulations,  as
described in Item 1122(a) of  Regulation  AB. The Master  Servicer  shall obtain
from all other  parties  participating  in the  servicing  function any required
certifications.

                  (iii)  With  respect  to  each  assessment   report  described
immediately  above, a report by a registered public accounting firm that attests
to, and reports on, the assessment made by the asserting  party, as set forth in
relevant  Commission   regulations,   as  described  in  Regulation  1122(b)  of
Regulation AB and Section 3.19.

                  (iv)  The  servicer  compliance  certificate  required  to  be
delivered pursuant Section 3.18.

            (g) In  connection  with the Form 10-K  Certification,  the  Trustee
shall provide the Master Servicer with a back-up certification  substantially in
the form attached hereto as Exhibit T-2.

            (h) This  Section  4.03  may be  amended  in  accordance  with  this
Agreement without the consent of the Certificateholders.

      Section 4.04.  Distribution  of Reports to the Trustee and the  Depositor;
Advances by the Master Servicer

            (a)  Prior  to the  close  of  business  on the  Business  Day  next
succeeding each Determination  Date, the Master Servicer shall furnish a written
statement  (which  may be in a  mutually  agreeable  electronic  format)  to the
Trustee,  any Paying Agent and the Depositor (the  information in such statement
to be made available to  Certificateholders  by the Master  Servicer on request)
(provided  that the Master  Servicer  shall use its best efforts to deliver such
written statement not later than 12:00 p.m. New York time on the second Business
Day prior to the Distribution Date) setting forth (i) the Available Distribution
Amount, (ii) the amounts required to be withdrawn from the Custodial Account and
deposited into the Certificate Account on the immediately succeeding Certificate
Account  Deposit  Date  pursuant to clause (iii) of

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Section 4.01(a),  (iii) the amount of Prepayment  Interest  Shortfalls and Basis
Risk  Shortfall  Carry-Forward  Amounts and (iv) the Net Swap  Payments and Swap
Termination  Payments,  if any, for such Distribution Date. The determination by
the Master  Servicer of such amounts shall,  in the absence of obvious error, be
presumptively  deemed to be correct for all purposes  hereunder  and the Trustee
shall be protected in relying  upon the same  without any  independent  check or
verification.

            (b) On or before 2:00 P.M. New York time on each Certificate Account
Deposit  Date,  the Master  Servicer  shall  either (i) remit to the Trustee for
deposit  in the  Certificate  Account  from its own  funds,  or  funds  received
therefor  from the  Subservicers,  an amount equal to the Advances to be made by
the Master Servicer in respect of the related  Distribution Date, which shall be
in an aggregate  amount equal to the sum of (A) the aggregate  amount of Monthly
Payments  other than  Balloon  Payments  (with  each  interest  portion  thereof
adjusted to a per annum rate equal to the Net Mortgage Rate), less the amount of
any related  Servicing  Modifications,  Debt  Service  Reductions  or Relief Act
Shortfalls,  on the Outstanding Mortgage Loans as of the related Due Date in the
related  Due  Period,  which  Monthly  Payments  were due during the related Due
Period  and  not  received  as of  the  close  of  business  as of  the  related
Determination  Date;  provided  that no  Advance  shall be made if it would be a
Nonrecoverable  Advance and (B) with respect to each Balloon Loan  delinquent in
respect  of its  Balloon  Payment  as of the close of  business  on the  related
Determination  Date, an amount equal to the assumed  Monthly  Payment (with each
interest  portion thereof adjusted to a per annum rate equal to the Net Mortgage
Rate)  that would have been due on the  related  Due Date based on the  original
amortization  schedule  for such Balloon Loan until such Balloon Loan is finally
liquidated,  over any  payments  of interest or  principal  (with each  interest
portion  thereof  adjusted to a per annum rate equal to the Net  Mortgage  Rate)
received  from the related  Mortgagor as of the close of business on the related
Determination  Date and  allocable to the Due Date during the related Due Period
for each month until such Balloon Loan is finally liquidated, (ii) withdraw from
amounts on deposit in the Custodial Account and remit to the Trustee for deposit
in the  Certificate  Account  all or a portion  of the  Amount  Held for  Future
Distribution  in discharge of any such  Advance,  or (iii) make  advances in the
form of any  combination of clauses (i) and (ii)  aggregating the amount of such
Advance. Any portion of the Amount Held for Future Distribution so used shall be
replaced  by the Master  Servicer  by deposit in the  Certificate  Account on or
before 11:00 A.M. New York time on any future  Certificate  Account Deposit Date
to the extent that funds  attributable  to the Mortgage Loans that are available
in the  Custodial  Account  for  deposit  in the  Certificate  Account  on  such
Certificate   Account   Deposit   Date   shall   be  less   than   payments   to
Certificateholders  required to be made on the following  Distribution Date. The
Master  Servicer  shall be entitled to use any Advance made by a Subservicer  as
described in Section 3.07(b) that has been deposited in the Custodial Account on
or before  such  Distribution  Date as part of the  Advance  made by the  Master
Servicer pursuant to this Section 4.04.

      The determination by the Master Servicer that it has made a Nonrecoverable
Advance or that any proposed Advance, if made, would constitute a Nonrecoverable
Advance, shall be evidenced by a certificate of a Servicing Officer delivered to
the Depositor.

      In the event that the Master  Servicer  determines  as of the Business Day
preceding any Certificate Account Deposit Date that it will be unable to deposit
in the  Certificate  Account an

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amount equal to the Advance  required to be made for the immediately  succeeding
Distribution  Date,  it shall give  notice to the  Trustee of its  inability  to
advance  (such notice may be given by telecopy),  not later than 3:00 P.M.,  New
York time, on such Business Day,  specifying  the portion of such amount that it
will be unable to  deposit.  Not later  than 3:00 P.M.,  New York  time,  on the
Certificate  Account  Deposit Date the Trustee shall,  unless by 12:00 Noon, New
York time,  on such day the  Trustee  shall have been  notified  in writing  (by
telecopy) that the Master  Servicer shall have directly or indirectly  deposited
in the Certificate Account such portion of the amount of the Advance as to which
the Master Servicer shall have given notice pursuant to the preceding  sentence,
pursuant to Section 7.01, (a) terminate all of the rights and obligations of the
Master  Servicer  under this  Agreement in accordance  with Section 7.01 and (b)
assume the rights and  obligations of the Master Servicer  hereunder,  including
the  obligation  to deposit in the  Certificate  Account an amount  equal to the
Advance for the immediately succeeding Distribution Date.

      The Trustee shall  deposit all funds it receives  pursuant to this Section
4.04(b) into the Certificate Account.

      Section 4.05. Allocation of Realized Losses

            (a) Prior to each  Distribution  Date,  the  Master  Servicer  shall
determine  the total amount of Realized  Losses,  if any, that resulted from any
Cash Liquidation,  Servicing  Modifications,  Debt Service Reduction,  Deficient
Valuation or REO Disposition that occurred during the related  Prepayment Period
or, in the case of a Servicing  Modification that constitutes a reduction of the
interest  rate on a Mortgage  Loan,  the amount of the reduction in the interest
portion of the Monthly Payment due in the month in which such  Distribution Date
occurs.  The amount of each  Realized  Loss shall be  evidenced  by an Officers'
Certificate.

            (b) [All Realized Losses on the Mortgage Loans shall be allocated as
follows:

                  (i)   first,  to Excess Cash Flow in the amounts and  priority
                        as provided in Section 4.02;

                  (ii)  second,   in  reduction  of  the   Overcollateralization
                        Amount, until such amount has been reduced to zero;

                  (iii) third,  the Class B Certificates,  until the Certificate
                        Principal Balance thereof has been reduced to zero;

                  (iv)  fourth,  to  the  Class  M-8  Certificates,   until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (v)   fifth,  to  the  Class  M-7   Certificates,   until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (vi)  sixth,  to  the  Class  M-6   Certificates,   until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

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                  (vii) seventh,  to  the  Class  M-5  Certificates,  until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (viii) eighth,  to  the  Class  M-4  Certificates,  until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (ix)  ninth,  to  the  Class  M-3   Certificates,   until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (x)   tenth,  to  the  Class  M-2   Certificates,   until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero;

                  (xi)  eleventh,  to the  Class  M-1  Certificates,  until  the
                        Certificate  Principal  Balance thereof has been reduced
                        to zero; and

                  (xii) twelfth,  to the  Class  A  Certificates  on a pro  rata
                        basis,  based  on  their  then  outstanding  Certificate
                        Principal   Balances   prior   to   giving   effect   to
                        distributions  to be  made on  such  Distribution  Date,
                        until  the  aggregate   Certificate   Principal  Balance
                        thereof has been reduced to zero.]

            (c) An allocation of a Realized Loss on a "pro rata basis" among two
or more  specified  Classes of  Certificates  means an  allocation on a pro rata
basis,  among  the  various  Classes  so  specified,   to  each  such  Class  of
Certificates  on the  basis  of their  then  outstanding  Certificate  Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date in the case of the  principal  portion of a  Realized  Loss or based on the
Accrued  Certificate  Interest thereon payable on such  Distribution Date in the
case of an interest  portion of a Realized Loss. Any allocation of the principal
portion of Realized  Losses (other than Debt Service  Reductions) to the Class A
Certificates,  Class M  Certificates  or Class B  Certificates  shall be made by
reducing the Certificate  Principal  Balance thereof by the amount so allocated,
which  allocation  shall be deemed to have occurred on such  Distribution  Date;
provided,  that  no  such  reduction  shall  reduce  the  aggregate  Certificate
Principal  Balance of the  Certificates  below the  aggregate  Stated  Principal
Balance of the Mortgage Loans.  Allocations of the interest portions of Realized
Losses  (other  than any  interest  rate  reduction  resulting  from a Servicing
Modification)  shall  be  made  by  operation  of  the  definition  of  "Accrued
Certificate Interest" for each Class for such Distribution Date.  Allocations of
the  interest  portion  of a  Realized  Loss  resulting  from an  interest  rate
reduction in connection with a Servicing Modification shall be made by operation
of the priority of payment  provisions of Section  4.02(c).  Allocations  of the
principal  portion of Debt Service  Reductions shall be made by operation of the
priority of payment  provisions of Section 4.02(c).  All Realized Losses and all
other losses  allocated to a Class of  Certificates  hereunder will be allocated
among the  Certificates of such Class in proportion to the Percentage  Interests
evidenced thereby.

            (d) [All Realized Losses on the Mortgage Loans shall be allocated on
each Distribution Date to the REMIC I Regular Interests and the REMIC II Regular
Interests as provided in the definition of REMIC I Realized  Losses and REMIC II
Realized Losses, respectively.]

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            (e)  [Realized  Losses  allocated  to the  Excess  Cash  Flow or the
Overcollateralization  Amount  pursuant to  paragraphs  (a),  (b) or (c) of this
Section,  the  definition of Accrued  Certificate  Interest and the operation of
Section 4.02(c) shall be deemed allocated to the Class SB Certificates. Realized
Losses allocated to the Class SB Certificates shall, to the extent such Realized
Losses  represent  Realized Losses on an interest  portion,  be allocated to the
REMIC III Regular  Interest SB-IO.  Realized Losses allocated to the Excess Cash
Flow pursuant to paragraph (b) of this Section shall be deemed to reduce Accrued
Certificate  Interest on the REMIC III Regular  Interest SB-IO.  Realized Losses
allocated to the Overcollateralization  Amount pursuant to paragraph (b) of this
Section  shall be deemed  first to reduce the  principal  balance of the REMIC I
Regular  Interest SB-PO until such principal  balance shall have been reduced to
zero and  thereafter  to reduce  accrued  and unpaid  interest  on the REMIC III
Regular Interest SB-IO.]

      Section  4.06.  Reports  of  Foreclosures  and  Abandonment  of  Mortgaged
Property

      The Master Servicer or the  Subservicers  shall file  information  returns
with  respect  to the  receipt  of  mortgage  interest  received  in a trade  or
business, the reports of foreclosures and abandonments of any Mortgaged Property
and the  informational  returns relating to cancellation of indebtedness  income
with respect to any Mortgaged  Property  required by Sections  6050H,  6050J and
6050P of the  Code,  respectively,  and  deliver  to the  Trustee  an  Officers'
Certificate  on or before March 31 of each year,  beginning with the first March
31 that  occurs at least six months  after the Cut off Date,  stating  that such
reports have been filed. Such reports shall be in form and substance  sufficient
to meet the reporting  requirements  imposed by such Sections  6050H,  6050J and
6050P of the Code.

      Section 4.07. Optional Purchase of Defaulted Mortgage Loans

            (a) As to any  Mortgage  Loan which is  delinquent  in payment by 90
days or more,  the Master  Servicer  may, at its option,  purchase such Mortgage
Loan from the Trustee at the Purchase Price  therefor;  provided,  that any such
Mortgage Loan that becomes 90 days or more delinquent  during any given Calendar
Quarter shall only be eligible for purchase pursuant to this Section 4.07 during
the  period  beginning  on the  first  Business  Day of the  following  Calendar
Quarter, and ending at the close of business on the second-to-last  Business Day
of such following  Calendar Quarter;  and provided  further,  that such Mortgage
Loan is 90 days or more delinquent at the time of repurchase. Such option if not
exercised shall not thereafter be reinstated as to any Mortgage Loan, unless the
delinquency is cured and the Mortgage Loan thereafter  again becomes  delinquent
in payment by 90 days or more in a subsequent Calendar Quarter.

            (b) If at any  time  the  Master  Servicer  makes a  payment  to the
Certificate  Account  covering  the  amount  of the  Purchase  Price  for such a
Mortgage Loan, and the Master  Servicer  provides to the Trustee a certification
signed by a Servicing  Officer  stating that the amount of such payment has been
deposited  in the  Certificate  Account,  then the  Trustee  shall  execute  the
assignment of such Mortgage Loan at the request of the Master  Servicer  without
recourse to the Master Servicer which shall succeed to all the Trustee's  right,
title and interest in and to such Mortgage  Loan, and all security and documents
relative  thereto.  Such assignment shall be an assignment  outright and not for
security.  The Master  Servicer will thereupon own

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such  Mortgage,  and all  such  security  and  documents,  free  of any  further
obligation to the Trustee or the Certificateholders with respect thereto.

      Section 4.08. Swap Agreement.

            (a) On the  Closing  Date,  the  Trustee  shall  (i)  establish  and
maintain  in its name,  in trust for the benefit of Class A, Class M and Class B
Certificates,  the Swap Account and (ii) for the benefit of the Class A, Class M
and Class B Certificates, cause the Trust to enter into the Swap Agreement.

            (b) The Trustee  shall deposit in the Swap Account all payments that
are payable to the Trust Fund under the Swap  Agreement.  Net Swap  Payments and
Swap Termination Payments (other than Swap Termination Payments resulting from a
Swap  Counterparty  Trigger  Event)  payable  by the  Trust  Fund  to  the  Swap
Counterparty pursuant to the Swap Agreement shall be excluded from the Available
Distribution   Amount  and  payable  to  the  Swap  Counterparty  prior  to  any
distributions to the Certificateholders. On each Distribution Date, such amounts
will be  remitted  by the  Trustee to the Swap  Account  for payment to the Swap
Counterparty,  first to make any Net Swap Payment owed to the Swap  Counterparty
pursuant to the Swap  Agreement for such  Distribution  Date, and second to make
any Swap Termination Payment (not due to a Swap Counterparty Trigger Event) owed
to the Swap  Counterparty  pursuant to the Swap Agreement for such  Distribution
Date. For federal income tax purposes,  such amounts paid to the Swap Account on
each Distribution Date shall first be deemed paid to the Swap Account in respect
of REMIC III Regular  Interest IO to the extent of the amount  distributable  on
such REMIC III Regular Interest IO on such Distribution  Date, and any remaining
amount  shall be deemed  paid to the Swap  Account  in  respect  of the Class IO
Distribution   Amount.  Any  Swap  Termination   Payment  triggered  by  a  Swap
Counterparty  Trigger Event owed to the Swap  Counterparty  pursuant to the Swap
Agreement will be subordinated to  distributions  to the Holders of the Class A,
Class M and Class B  Certificates  and shall be paid as set forth under  Section
4.02.

            (c) Net  Swap  Payments  payable  by the  Swap  Counterparty  to the
Trustee  on behalf of the Trust  Fund  pursuant  to the Swap  Agreement  will be
deposited by the Trustee into the Swap  Account,  and shall be included into the
definition of Excess Cash Flow.

            (d) Subject to Sections 8.01 and 8.02 hereof,  the Trustee agrees to
comply  with the  terms of the Swap  Agreement  and to  enforce  the  terms  and
provisions thereof against the Swap Counterparty at the written direction of the
Holders of [Class A Certificates, Class M Certificates and Class B Certificates]
entitled to at least 51% of the Voting  Rights of such Classes of  Certificates,
or if the Trustee does not receive such direction from such  Certificateholders,
then at the written direction of Residential Funding.

            (e) The Swap Account shall be an Eligible  Account.  Amounts held in
the Swap Account from time to time shall  continue to  constitute  assets of the
Trust Fund, but not of the REMICs, until released from the Swap Account pursuant
to this Section 4.08.  The Swap Account  constitutes  an "outside  reserve fund"
within the  meaning of Treasury  Regulation  Section  1.860G-2(h)  and is not an
asset of the REMICs.  The [Class SB  Certificateholders]  shall be the owners of
the Swap  Account.  The Trustee shall keep records that  accurately  reflect the

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funds on deposit in the Swap Account. The Trustee shall, at the direction of the
Master  Servicer,  invest  amounts on deposit in the Swap  Account in  Permitted
Investments.  In the absence of written direction to the Trustee from the Master
Servicer, all funds in the Swap Account shall remain uninvested.

            (f) The Trustee and the Master  Servicer  shall treat the holders of
each Class of Certificates  [(other than the Class SB  Certificates  and Class R
Certificates)]  as having  entered into a notional  principal  contract with the
holders of the [Class SB Certificates]. Pursuant to each such notional principal
contract, all holders of Certificates [(other than the Class SB Certificates and
Class R  Certificates)]  shall be  treated  as  having  agreed  to pay,  on each
Distribution  Date,  to the holder of the [Class SB  Certificates]  an aggregate
amount  equal  to the  excess,  if  any,  of (i)  the  amount  payable  on  such
Distribution Date on the REMIC III Regular Interest  corresponding to such Class
of  Certificates  over (ii) the amount payable on such Class of  Certificates on
such  Distribution  Date (such excess,  a "Class IO  Distribution  Amount").  In
addition, pursuant to such notional principal contract, the holder of the [Class
SB Certificates] shall be treated as having agreed to pay the related Basis Risk
Shortfall Carry  Forward-Amounts to the holders of the Certificates [(other than
the Class SB  Certificates  and Class R  Certificates)]  in accordance  with the
terms of this Agreement.  Any payments to the  Certificates  from amounts deemed
received in respect of this notional  principal  contract  shall not be payments
with  respect  to a "regular  interest"  in a REMIC  within the  meaning of Code
Section 860G(a)(1).  However, any payment from the Certificates [(other than the
Class SB  Certificates  and Class R  Certificates)]  of a Class IO  Distribution
Amount shall be treated for tax purposes as having been  received by the holders
of such Certificates in respect of the REMIC III Regular Interest  corresponding
to such Class of  Certificates  and as having  been paid by such  holders to the
Swap Account pursuant to the notional principal contract. Thus, each Certificate
[(other than the Class R  Certificates)]  shall be treated as  representing  not
only  ownership  of regular  interests  in REMIC III,  but also  ownership of an
interest in, and obligations with respect to, a notional principal contract.

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                                   ARTICLE V

                                THE CERTIFICATES

      Section 5.01. The Certificates

            (a)  [The  Class  A  Certificates,  Class  M  Certificates,  Class B
Certificates,   Class  SB  Certificates  and  Class  R  Certificates   shall  be
substantially  in the  forms  set  forth  in  Exhibits  A,  B-1,  B-2,  C and D,
respectively,  and shall,  on original  issue,  be executed and delivered by the
Trustee to the Certificate  Registrar for authentication and delivery to or upon
the order of the Depositor upon receipt by the Trustee or one or more Custodians
of  the  documents  specified  in  Section  2.01.  The  Class  A and  Class  M-1
Certificates shall be issuable in minimum dollar denominations of $[100,000] and
integral  multiples of $1 in excess thereof.  The Class M-2 Certificates,  Class
M-3  Certificates,  Class M-4 Certificates,  Class M-5  Certificates,  Class M-6
Certificates,  Class  M-7  Certificates,  Class  M-8  Certificates  and  Class B
Certificates shall be issuable in minimum dollar denominations of $[250,000] and
integral  multiples of $1 in excess thereof.  The Class SB Certificates shall be
issuable in registered,  certificated  form in minimum  percentage  interests of
[5.00]% and integral  multiples of [0.01]%.  Each Class of Class R  Certificates
shall be issued in registered, certificated form in minimum percentage interests
of [20.00]%  and  integral  multiples  of [0.01]% in excess  thereof;  provided,
however,  that one Class R  Certificate  of each Class will be  issuable  to the
REMIC  Administrator  as "tax matters person"  pursuant to Section 10.01(c) in a
minimum denomination representing a Percentage Interest of not less than 0.01%.

      The  Certificates  shall be executed by manual or  facsimile  signature on
behalf of an authorized officer of the Trustee.  Certificates bearing the manual
or facsimile  signatures of individuals who were at any time the proper officers
of the Trustee shall bind the Trustee,  notwithstanding that such individuals or
any of them have ceased to hold such  offices  prior to the  authentication  and
delivery of such  Certificate  or did not hold such  offices at the date of such
Certificates.  No  Certificate  shall be  entitled  to any  benefit  under  this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of  authentication  substantially  in the form provided for herein
executed by the Certificate Registrar by manual signature,  and such certificate
upon any Certificate shall be conclusive evidence,  and the only evidence,  that
such  Certificate  has been duly  authenticated  and  delivered  hereunder.  All
Certificates shall be dated the date of their authentication.]

            (b) The  [Class A  Certificates,  Class M  Certificates  and Class B
Certificates]  shall initially be issued as one or more Certificates  registered
in the name of the  Depository  or its nominee  and,  except as provided  below,
registration of such  Certificates  may not be transferred by the Trustee except
to another  Depository that agrees to hold such  Certificates for the respective
Certificate  Owners with Ownership  Interests  therein.  The Certificate  Owners
shall  hold  their  respective  Ownership  Interests  in and to  each  [Class  A
Certificate,  Class  M  Certificate  and  Class  B  Certificate],   through  the
book-entry facilities of the Depository and, except as provided below, shall not
be entitled to Definitive  Certificates in respect of such Ownership  Interests.
All transfers by Certificate Owners of their respective  Ownership  Interests in
the  Book-Entry  Certificates  shall be made in accordance  with the  procedures
established by the Depository  Participant or brokerage firm  representing  such
Certificate  Owner.  Each  Depository  Participant

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<PAGE>

shall transfer the Ownership  Interests only in the Book-Entry  Certificates  of
Certificate  Owners it  represents  or of  brokerage  firms for which it acts as
agent in accordance with the Depository's normal procedures.

      The Trustee,  the Master  Servicer and the  Depositor may for all purposes
(including  the making of payments due on the  respective  Classes of Book-Entry
Certificates)  deal with the Depository as the authorized  representative of the
Certificate  Owners  with  respect  to  the  respective  Classes  of  Book-Entry
Certificates  for  purposes  of  exercising  the  rights  of  Certificateholders
hereunder.  The rights of  Certificate  Owners  with  respect to the  respective
Classes of Book-Entry  Certificates shall be limited to those established by law
and agreements between such Certificate  Owners and the Depository  Participants
and brokerage firms representing such Certificate Owners.  Multiple requests and
directions  from,  and  votes  of,  the  Depository  as  Holder  of any Class of
Book-Entry  Certificates  with  respect to any  particular  matter  shall not be
deemed  inconsistent  if they are made with  respect  to  different  Certificate
Owners.  The Trustee may establish a reasonable  record date in connection  with
solicitations  of consents from or voting by  Certificateholders  and shall give
notice to the Depository of such record date.

      If with respect to any Book-Entry Certificate (i)(A) the Depositor advises
the  Trustee  in writing  that the  Depository  is no longer  willing or able to
properly  discharge  its  responsibilities  as  Depository  with respect to such
Book-Entry  Certificate  and (B) the  Depositor  is unable to locate a qualified
successor, or (ii)(A) the Depositor at its option advises the Trustee in writing
that  it  elects  to  terminate  the  book-entry   system  for  such  Book-Entry
Certificate  through  the  Depository  and (B) upon  receipt of notice  from the
Depository of the  Depositor's  election to terminate the book-entry  system for
such Book-Entry  Certificate,  the Depository  Participants  holding  beneficial
interests in such Book-Entry  Certificates  agree to initiate such  termination,
the Trustee shall notify all Certificate Owners of such Book-Entry  Certificate,
through  the  Depository,  of  the  occurrence  of  any  such  event  and of the
availability  of Definitive  Certificates to Certificate  Owners  requesting the
same.  Upon  surrender  to the  Trustee of the  Book-Entry  Certificates  by the
Depository,  accompanied by  registration  instructions  from the Depository for
registration of transfer, the Trustee shall issue the Definitive Certificates.

      In addition,  if an Event of Default has occurred and is continuing,  each
Certificate  Owner  materially  adversely  affected  thereby  may at its  option
request a Definitive  Certificate evidencing such Certificate Owner's Percentage
Interest in the related  Class of  Certificates.  In order to make such request,
such  Certificate  Owner  shall,  subject  to the  rules and  procedures  of the
Depository,  provide the Depository or the related  Depository  Participant with
directions  for the  Certificate  Registrar to exchange or cause the exchange of
the Certificate Owner's interest in such Class of Certificates for an equivalent
Percentage  Interest in fully  registered  definitive  form. Upon receipt by the
Certificate   Registrar  of  instructions  from  the  Depository  directing  the
Certificate  Registrar to effect such  exchange  (such  instructions  to contain
information  regarding the Class of Certificates  and the Certificate  Principal
Balance being exchanged,  the Depository  Participant account to be debited with
the  decrease,  the  registered  holder  of and  delivery  instructions  for the
Definitive  Certificate,  and any other information  reasonably  required by the
Certificate  Registrar),  (i)  the  Certificate  Registrar  shall  instruct  the
Depository  to  reduce  the  related  Depository  Participant's  account  by the
aggregate Certificate Principal Balance of the Definitive Certificate,  (ii) the
Trustee shall  execute and the  Certificate  Registrar  shall

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authenticate  and deliver,  in  accordance  with the  registration  and delivery
instructions  provided by the Depository,  a Definitive  Certificate  evidencing
such Certificate  Owner's Percentage  Interest in such Class of Certificates and
(iii) the Trustee shall execute and the Certificate Registrar shall authenticate
a  new  Book-Entry   Certificate  reflecting  the  reduction  in  the  aggregate
Certificate Principal Balance of such Class of Certificates by the amount of the
Definitive Certificates.

      Neither the Depositor, the Master Servicer nor the Trustee shall be liable
for any actions  taken by the  Depository  or its  nominee,  including,  without
limitation,  any delay in  delivery  of any  instructions  required  under  this
Section 5.01 and may conclusively rely on, and shall be protected in relying on,
such instructions.  Upon the issuance of Definitive Certificates, all references
herein to  obligations  imposed  upon or to be  performed  by the  Depositor  in
connection  with the issuance of the  Definitive  Certificates  pursuant to this
Section  5.01 shall be deemed to be imposed  upon and  performed by the Trustee,
and the  Trustee  and the Master  Servicer  shall  recognize  the Holders of the
Definitive Certificates as Certificateholders hereunder.

            (c) Each of the Certificates is intended to be a "security" governed
by  Article 8 of the  Uniform  Commercial  Code as in effect in the State of New
York and any other applicable jurisdiction,  to the extent that any of such laws
may be applicable.

      Section 5.02. Registration of Transfer and Exchange of Certificates

            (a) The  Trustee  shall  cause to be kept at one of the  offices  or
agencies to be appointed by the Trustee in  accordance  with the  provisions  of
Section  8.12 a  Certificate  Register  in  which,  subject  to such  reasonable
regulations as it may prescribe,  the Trustee shall provide for the registration
of  Certificates  and of  transfers  and  exchanges  of  Certificates  as herein
provided.  The Trustee is  initially  appointed  Certificate  Registrar  for the
purpose of registering  Certificates and transfers and exchanges of Certificates
as herein provided. The Certificate Registrar, or the Trustee, shall provide the
Master  Servicer with a certified list of  Certificateholders  as of each Record
Date prior to the related Determination Date.

            (b) Upon surrender for  registration  of transfer of any Certificate
at any office or agency of the Trustee  maintained for such purpose  pursuant to
Section  8.12  and,  in  the  case  of any  Class  SB  Certificate  or  Class  R
Certificate,  upon  satisfaction of the conditions set forth below,  the Trustee
shall execute and the Certificate  Registrar shall authenticate and deliver,  in
the  name  of  the  designated  transferee  or  transferees,  one  or  more  new
Certificates of a like Class and aggregate Percentage Interest.

            (c) At the  option of the  Certificateholders,  Certificates  may be
exchanged for other Certificates of authorized denominations of a like Class and
aggregate  Percentage  Interest,  upon  surrender  of  the  Certificates  to  be
exchanged  at any such  office  or  agency.  Whenever  any  Certificates  are so
surrendered for exchange the Trustee shall execute and the Certificate Registrar
shall  authenticate  and  deliver  the  Certificates  of such  Class  which  the
Certificateholder  making the exchange is entitled to receive. Every Certificate
presented or  surrendered  for transfer or exchange shall (if so required by the
Trustee or the Certificate  Registrar) be duly endorsed by, or be accompanied by
a written  instrument  of transfer in form  satisfactory  to the

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Trustee and the  Certificate  Registrar  duly executed by, the Holder thereof or
his attorney duly authorized in writing.

            (d) No transfer,  sale,  pledge or other  disposition  of a [Class B
Certificate,  Class SB Certificate or Class R Certificate]  shall be made unless
such transfer, sale, pledge or other disposition is exempt from the registration
requirements of the Securities Act of 1933, as amended (the "1933 Act"), and any
applicable  state  securities  laws or is made in  accordance  with said Act and
laws. Except as otherwise provided in this Section 5.02(d),  in the event that a
transfer of a Class B  Certificate,  Class SB Certificate or Class R Certificate
is to be made,  (i) unless the  Depositor  directs  the Trustee  otherwise,  the
Trustee shall require a written Opinion of Counsel acceptable to and in form and
substance  satisfactory  to the Trustee and the Depositor that such transfer may
be made pursuant to an exemption,  describing the  applicable  exemption and the
basis therefor, from said Act and laws or is being made pursuant to said Act and
laws, which Opinion of Counsel shall not be an expense of the Trustee, the Trust
Fund, the Depositor or the Master  Servicer,  and (ii) the Trustee shall require
the transferee to execute a representation letter,  substantially in the form of
Exhibit I hereto,  and the Trustee  shall  require the  transferor  to execute a
representation  letter,  substantially  in the form of  Exhibit J  hereto,  each
acceptable  to and in form and substance  satisfactory  to the Depositor and the
Trustee  certifying to the Depositor and the Trustee the facts  surrounding such
transfer,  which representation  letters shall not be an expense of the Trustee,
the  Trust  Fund,  the  Depositor  or  the  Master  Servicer.  In  lieu  of  the
requirements  set  forth  in  the  preceding  sentence,  transfers  of  Class  B
Certificates,  Class  SB  Certificates  or Class R  Certificates  may be made in
accordance  with this Section  5.02(d) if the  prospective  transferee of such a
Certificate  provides  the Trustee and the Master  Servicer  with an  investment
letter  substantially in the form of Exhibit N attached hereto, which investment
letter  shall not be an expense of the  Trustee,  the  Depositor,  or the Master
Servicer,  and which  investment  letter states that,  among other things,  such
transferee (i) is a "qualified  institutional buyer" as defined under Rule 144A,
acting for its own  account or the  accounts of other  "qualified  institutional
buyers"  as  defined  under  Rule  144A,  and  (ii) is aware  that the  proposed
transferor intends to rely on the exemption from registration requirements under
the 1933 Act provided by Rule 144A. The Holder of a Class B  Certificate,  Class
SB  Certificate  or Class R Certificate  desiring to effect any transfer,  sale,
pledge or other  disposition  shall,  and does hereby  agree to,  indemnify  the
Trustee,  the  Depositor,  the Master  Servicer  and the  Certificate  Registrar
against any  liability  that may result if the transfer,  sale,  pledge or other
disposition is not so exempt or is not made in accordance  with such federal and
state laws and this Agreement.  If any transfer of a Class B Certificate held by
a  transferor  and to be  held by a  transferee  in  book-entry  form is to made
without  registration under the 1933 Act, the transferor shall be deemed to have
made each of the certifications set forth in Exhibit J hereto as of the transfer
date and the transferee shall be deemed to have made each of the  certifications
set forth in Exhibit N hereto as of the transfer  date,  in each case as if such
Class B Certificate were in physical form.

            (e)  (i)  [In  the  case  of  any  Class  A  Certificate,   Class  M
Certificate,  Class B  Certificate,  Class SB Certificate or Class R Certificate
presented  for  registration  in the name of any Person,  either (A) the Trustee
shall  require an Opinion of  Counsel  acceptable  to and in form and  substance
satisfactory to the Trustee, the Depositor and the Master Servicer to the effect
that the purchase or holding of such Class B  Certificate,  Class SB Certificate
or Class R Certificate is permissible  under applicable law, will not constitute
or result in any non-exempt prohibited transaction under Section 406 of ERISA or
Section  4975  of  the  Code  (or   comparable   provisions

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of any subsequent  enactments),  and will not subject the Trustee, the Depositor
or the Master Servicer to any obligation or liability (including  obligations or
liabilities  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in this  Agreement,  which Opinion of Counsel shall not be an expense
of the Trustee,  the Depositor or the Master  Servicer,  or (B) the  prospective
transferee  shall be required  to provide the  Trustee,  the  Depositor  and the
Master Servicer with a certification  to the effect set forth in Exhibit P (with
respect  to a Class A,  Class M,  Class B or  Class  SB  Certificate;  provided,
however; that such certification shall be deemed to have been given by any Class
A Certificateholder,  Class M Certificateholder or Class B Certificateholder who
acquires a Book-Entry  Certificate) or in paragraph fifteen of Exhibit H-1 (with
respect  to a Class R  Certificate),  which the  Trustee  may rely upon  without
further inquiry or  investigation,  or such other  certifications as the Trustee
may deem  desirable or necessary in order to establish  that such  transferee or
the Person in whose name such  registration  is  requested  is either (a) not an
employee  benefit plan or other plan or  arrangement  subject to the  prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  Person
(including an  investment  manager,  a named  fiduciary or a trustee of any such
plan) who is using  "plan  assets" of any such plan to effect  such  acquisition
(each of the foregoing,  a "Plan Investor"),  or (b) an insurance  company,  the
source of funds used to  purchase  or hold such  Certificates  is an  "insurance
company general  account," as the term is defined in DOL Prohibited  Transaction
Class Exemption ("PTCE") 95-60, and the conditions in Sections I and III of PTCE
95-60 have been satisfied.

                  (ii)  Any  Transferee  of  a  Class  A  Certificate,  Class  M
Certificate or Class B Certificate  that does not deliver the Opinion of Counsel
or  certification  referred  to in  clause  (i)  above  will be  deemed  to have
represented  by  virtue of its  purchase  or  holding  of such  Certificate  (or
interest therein) that such Transferee is not a Plan Investor.

                  (iii) If any Class A Certificate, Class M Certificate or Class
B Certificate  (or any interest  therein) is acquired or held by any Person that
does not satisfy the conditions  described in paragraph (i) and (ii) above, then
the last preceding Transferee shall be restored, to the extent permitted by law,
to all rights and  obligations as Certificate  Owner thereof  retroactive to the
date of such Transfer of such Class A Certificate,  Class M Certificate or Class
B Certificate.  The Trustee shall be under no liability to any Person for making
any payments due on such Certificate to such preceding Transferee.

                  (iv) Any  purported  Certificate  Owner whose  acquisition  or
holding of any Class A  Certificate,  Class M Certificate or Class B Certificate
(or interest  therein) was  effected in  violation of the  restrictions  in this
Section  5.02(e) shall  indemnify and hold harmless the Depositor,  the Trustee,
the Master Servicer,  any  Subservicer,  any underwriter and the Trust Fund from
and against any and all liabilities,  claims, costs or expenses incurred by such
parties as a result of such acquisition or holding.]

            (f) (i) Each Person who has or who acquires any  Ownership  Interest
in a Class R Certificate  shall be deemed by the  acceptance or  acquisition  of
such Ownership  Interest to have agreed to be bound by the following  provisions
and to have  irrevocably  authorized  the Trustee or its  designee  under clause
(iii)(A)  below to deliver  payments  to a Person  other than such Person and to
negotiate the terms of any  mandatory  sale under clause  (iii)(B)  below and to
execute all  instruments  of transfer  and to do all other  things  necessary in
connection with any

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such sale. The rights of each Person acquiring any Ownership Interest in a Class
R Certificate are expressly subject to the following provisions:

                  (A) Each Person holding or acquiring any Ownership Interest in
            a Class R  Certificate  shall be a  Permitted  Transferee  and shall
            promptly notify the Trustee of any change or impending change in its
            status as a Permitted Transferee.

                  (B) In connection with any proposed  Transfer of any Ownership
            Interest  in a  Class  R  Certificate,  the  Trustee  shall  require
            delivery to it, and shall not  register  the Transfer of any Class R
            Certificate  until its receipt of, (I) an affidavit and agreement (a
            "Transfer  Affidavit and  Agreement," in the form attached hereto as
            Exhibit H-1) from the  proposed  Transferee,  in form and  substance
            satisfactory to the Master  Servicer,  representing  and warranting,
            among other things,  that it is a Permitted  Transferee,  that it is
            not acquiring its Ownership Interest in the Class R Certificate that
            is the subject of the  proposed  Transfer  as a nominee,  trustee or
            agent for any Person who is not a Permitted Transferee,  that for so
            long as it retains its Ownership  Interest in a Class R Certificate,
            it will endeavor to remain a Permitted  Transferee,  and that it has
            reviewed the  provisions  of this  Section  5.02(f) and agrees to be
            bound by them, and (II) a certificate,  in the form attached  hereto
            as Exhibit  H-2,  from the Holder  wishing to  transfer  the Class R
            Certificate,  in  form  and  substance  satisfactory  to the  Master
            Servicer,  representing and warranting,  among other things, that no
            purpose of the  proposed  Transfer  is to impede the  assessment  or
            collection of tax.

                  (C)  Notwithstanding  the delivery of a Transfer Affidavit and
            Agreement  by a proposed  Transferee  under  clause (B) above,  if a
            Responsible Officer of the Trustee who is assigned to this Agreement
            has actual knowledge that the proposed Transferee is not a Permitted
            Transferee,  no  Transfer  of an  Ownership  Interest  in a  Class R
            Certificate to such proposed Transferee shall be effected.

                  (D) Each Person holding or acquiring any Ownership Interest in
            a  Class  R  Certificate  shall  agree  (x) to  require  a  Transfer
            Affidavit  and  Agreement  from any other Person to whom such Person
            attempts to transfer its Ownership Interest in a Class R Certificate
            and (y) not to transfer its Ownership  Interest unless it provides a
            certificate  to the Trustee in the form  attached  hereto as Exhibit
            H-2.

                  (E) Each Person holding or acquiring an Ownership  Interest in
            a Class R Certificate,  by purchasing an Ownership  Interest in such
            Certificate,  agrees to give the Trustee written notice that it is a
            "pass-through  interest  holder"  within the  meaning  of  Temporary
            Treasury  Regulations Section  1.67-3T(a)(2)(i)(A)  immediately upon
            acquiring an Ownership Interest in a Class R Certificate,  if it is,
            or is holding an  Ownership  Interest  in a Class R  Certificate  on
            behalf of, a "pass-through interest holder."

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                  (ii) The Trustee  shall  register  the Transfer of any Class R
Certificate only if it shall have received the Transfer Affidavit and Agreement,
a certificate of the Holder requesting such transfer in the form attached hereto
as Exhibit  H-2 and all of such other  documents  as shall have been  reasonably
required by the Trustee as a condition  to such  registration.  Transfers of the
Class R Certificates to Non-United States Persons and Disqualified Organizations
(as defined in Section 860E(e)(5) of the Code) are prohibited.

                  (A) If any Disqualified  Organization shall become a holder of
            a Class R Certificate,  then the last preceding Permitted Transferee
            shall be restored, to the extent permitted by law, to all rights and
            obligations   as  Holder   thereof   retroactive   to  the  date  of
            registration  of such  Transfer  of such Class R  Certificate.  If a
            Non-United  States  Person  shall  become  a  holder  of a  Class  R
            Certificate,  then the last preceding  United States Person shall be
            restored,  to  the  extent  permitted  by  law,  to all  rights  and
            obligations   as  Holder   thereof   retroactive   to  the  date  of
            registration  of such  Transfer  of such Class R  Certificate.  If a
            transfer of a Class R  Certificate  is  disregarded  pursuant to the
            provisions  of  Treasury  Regulations  Section  1.860E-1  or Section
            1.860G-3,  then the last  preceding  Permitted  Transferee  shall be
            restored,  to  the  extent  permitted  by  law,  to all  rights  and
            obligations   as  Holder   thereof   retroactive   to  the  date  of
            registration  of such  Transfer  of such  Class R  Certificate.  The
            Trustee   shall  be  under  no  liability  to  any  Person  for  any
            registration  of Transfer of a Class R  Certificate  that is in fact
            not permitted by this Section 5.02(f) or for making any payments due
            on such  Certificate  to the holder  thereof or for taking any other
            action with  respect to such  holder  under the  provisions  of this
            Agreement.

                  (B) If any  purported  Transferee  shall  become a Holder of a
            Class R Certificate in violation of the restrictions in this Section
            5.02(f) and to the extent that the  retroactive  restoration  of the
            rights of the Holder of such Class R  Certificate  as  described  in
            clause  (iii)(A) above shall be invalid,  illegal or  unenforceable,
            then the Master Servicer shall have the right, without notice to the
            holder or any prior holder of such Class R Certificate, to sell such
            Class R Certificate to a purchaser  selected by the Master  Servicer
            on such terms as the Master  Servicer  may  choose.  Such  purported
            Transferee   shall  promptly   endorse  and  deliver  each  Class  R
            Certificate  in  accordance  with  the  instructions  of the  Master
            Servicer.  Such purchaser may be the Master  Servicer  itself or any
            Affiliate of the Master Servicer.  The proceeds of such sale, net of
            the commissions (which may include commissions payable to the Master
            Servicer or its Affiliates), expenses and taxes due, if any, will be
            remitted by the Master  Servicer to such purported  Transferee.  The
            terms and conditions of any sale under this clause (iii)(B) shall be
            determined in the sole  discretion of the Master  Servicer,  and the
            Master  Servicer  shall  not be  liable  to  any  Person  having  an
            Ownership  Interest  in a Class R  Certificate  as a  result  of its
            exercise of such discretion.

                  (iii) The Master  Servicer,  on behalf of the  Trustee,  shall
make available, upon written request from the Trustee, all information necessary
to compute  any tax  imposed  (A) as a result of the  Transfer  of an  Ownership
Interest  in a  Class  R  Certificate  to  any  Person  who  is  a  Disqualified
Organization,  including the information  regarding "excess

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inclusions" of such Class R Certificates required to be provided to the Internal
Revenue  Service  and  certain  Persons as  described  in  Treasury  Regulations
Sections 1.860D-1(b)(5) and 1.860E-2(a)(5), and (B) as a result of any regulated
investment   company,   real  estate  investment   trust,   common  trust  fund,
partnership, trust, estate or organization described in Section 1381 of the Code
that holds an Ownership  Interest in a Class R  Certificate  having as among its
record  holders  at any  time any  Person  who is a  Disqualified  Organization.
Reasonable  compensation  for providing such  information may be required by the
Master Servicer from such Person.

                  (iv) The provisions of this Section 5.02(f) set forth prior to
this clause (v) may be modified,  added to or  eliminated,  provided  that there
shall have been delivered to the Trustee the following:

                  (A) Written notification from each Rating Agency to the effect
            that the modification, addition to or elimination of such provisions
            will not cause such  Rating  Agency to  downgrade  its  then-current
            ratings,  if any,  of any  Class of [Class A  Certificates,  Class M
            Certificates  or  Class  B  Certificates]  below  the  lower  of the
            then-current  rating or the rating assigned to such  Certificates as
            of the Closing Date by such Rating Agency; and

                  (B) A  Certificate  of the Master  Servicer  stating  that the
            Master  Servicer  has  received an Opinion of  Counsel,  in form and
            substance  satisfactory to the Master  Servicer,  to the effect that
            such  modification,  addition to or absence of such  provisions will
            not  cause  any  REMIC to cease to  qualify  as a REMIC and will not
            cause (x) any REMIC to be subject to an  entity-level  tax caused by
            the  Transfer  of any  Class R  Certificate  to a  Person  that is a
            Disqualified  Organization  or (y) a  Certificateholder  or  another
            Person to be subject to a  REMIC-related  tax caused by the Transfer
            of a  Class  R  Certificate  to a  Person  that  is not a  Permitted
            Transferee.

            (g) No service  charge shall be made for any transfer or exchange of
Certificates  of any  Class,  but  the  Trustee  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.

            (h) All Certificates  surrendered for transfer and exchange shall be
destroyed by the Certificate Registrar.

      Section 5.03. Mutilated, Destroyed, Lost or Stolen Certificates

      If (i)  any  mutilated  Certificate  is  surrendered  to  the  Certificate
Registrar,  or the Trustee and the  Certificate  Registrar  receive  evidence to
their  satisfaction of the destruction,  loss or theft of any  Certificate,  and
(ii) there is  delivered  to the  Trustee  and the  Certificate  Registrar  such
security or indemnity as may be required by them to save each of them  harmless,
then, in the absence of notice to the Trustee or the Certificate  Registrar that
such  Certificate has been acquired by a bona fide purchaser,  the Trustee shall
execute  and the  Certificate  Registrar  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, Class and Percentage Interest but
bearing a

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number  not  contemporaneously   outstanding.  Upon  the  issuance  of  any  new
Certificate  under this  Section,  the  Trustee may require the payment of a sum
sufficient to cover any tax or other governmental  charge that may be imposed in
relation thereto and any other expenses  (including the fees and expenses of the
Trustee  and the  Certificate  Registrar)  connected  therewith.  Any  duplicate
Certificate  issued  pursuant to this  Section  shall  constitute  complete  and
indefeasible  evidence of ownership in the Trust Fund, as if originally  issued,
whether or not the lost,  stolen or destroyed  Certificate shall be found at any
time.

      Section 5.04. Persons Deemed Owners

      Prior to due  presentation of a Certificate for  registration of transfer,
the Depositor,  the Master Servicer,  the Trustee, the Certificate Registrar and
any agent of the Depositor,  the Master Servicer, the Trustee or the Certificate
Registrar  may treat the Person in whose name any  Certificate  is registered as
the  owner  of such  Certificate  for the  purpose  of  receiving  distributions
pursuant to Section 4.02 and for all other purposes whatsoever, except as and to
the extent  provided in the  definition  of  "Certificateholder"  and in Section
4.09,  and  neither  the  Depositor,  the  Master  Servicer,  the  Trustee,  the
Certificate Registrar nor any agent of the Depositor,  the Master Servicer,  the
Trustee or the Certificate Registrar shall be affected by notice to the contrary
except as provided in Section 5.02(f).

      Section 5.05. Appointment of Paying Agent

      The  Trustee  may  appoint  a  Paying  Agent  for the  purpose  of  making
distributions  to  Certificateholders  pursuant to Section 4.02. In the event of
any such appointment,  on or prior to each Distribution Date the Master Servicer
on behalf of the Trustee shall deposit or cause to be deposited  with the Paying
Agent a sum sufficient to make the payments to Certificateholders in the amounts
and in the manner provided for in Section 4.02, such sum to be held in trust for
the benefit of Certificateholders.

      The Trustee  shall  cause each Paying  Agent to execute and deliver to the
Trustee an  instrument  in which such Paying  Agent shall agree with the Trustee
that  such  Paying  Agent  will  hold all  sums  held by it for the  payment  to
Certificateholders in trust for the benefit of the  Certificateholders  entitled
thereto  until such sums shall be paid to such  Certificateholders.  Any sums so
held by such Paying Agent shall be held only in Eligible  Accounts to the extent
such sums are not distributed to the  Certificateholders  on the date of receipt
by such Paying Agent.

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                                   ARTICLE VI

                      THE DEPOSITOR AND THE MASTER SERVICER

      Section  6.01.  Respective  Liabilities  of the  Depositor  and the Master
Servicer

      The Depositor and the Master  Servicer  shall each be liable in accordance
herewith only to the extent of the  obligations  specifically  and  respectively
imposed upon and undertaken by the Depositor and the Master Servicer herein.  By
way of  illustration  and not  limitation,  the  Depositor is not liable for the
servicing  and  administration  of the  Mortgage  Loans,  nor is it obligated by
Section 7.01 or Section 10.01 to assume any  obligations of the Master  Servicer
or to appoint a designee  to assume such  obligations,  nor is it liable for any
other  obligation  hereunder that it may, but is not obligated to, assume unless
it elects to assume such obligation in accordance herewith.

      Section  6.02.  Merger or  Consolidation  of the  Depositor  or the Master
Servicer; Assignment of Rights and Delegation of Duties by Master Servicer

            (a) The  Depositor and the Master  Servicer  shall each keep in full
effect its existence,  rights and franchises as a corporation  under the laws of
the state of its incorporation and as a limited liability company under the laws
of the  state of its  organization,  respectively,  and  will  each  obtain  and
preserve  its  qualification  to do business as a foreign  corporation  or other
Person in each jurisdiction in which such qualification is or shall be necessary
to protect the validity and  enforceability of this Agreement,  the Certificates
or any of the  Mortgage  Loans and to perform its  respective  duties under this
Agreement.

            (b) Any Person into which the  Depositor or the Master  Servicer 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 Depositor or
the Master Servicer shall be a party,  or any Person  succeeding to the business
of the Depositor or the Master Servicer, shall be the successor of the Depositor
or the Master Servicer, as the case may be, hereunder,  without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything in this  Section  6.02(b) to the  contrary  notwithstanding;  provided,
however,  that the successor or surviving Person to the Master Servicer shall be
qualified to service  mortgage loans on behalf of Fannie Mae or Freddie Mac; and
provided  further  that each Rating  Agency's  ratings,  if any Class of Class A
Certificates, Class M Certificates or Class B Certificates in effect immediately
prior  to such  merger  or  consolidation  will  not be  qualified,  reduced  or
withdrawn as a result thereof (as evidenced by a letter to such effect from each
Rating Agency).

            (c)  Notwithstanding  anything else in this Section 6.02 and Section
6.04 to the contrary, the Master Servicer may assign its rights and delegate its
duties and obligations under this Agreement;  provided that the Person accepting
such  assignment or  delegation  shall be a Person which is qualified to service
mortgage   loans  on  behalf  of  Fannie  Mae  or  Freddie  Mac,  is  reasonably
satisfactory  to the  Trustee  and the  Depositor,  is willing  to  service  the
Mortgage  Loans and executes and  delivers to the  Depositor  and the Trustee an
agreement,  in form and substance  reasonably  satisfactory to the Depositor and
the Trustee, which contains an assumption by such Person of the due and punctual
performance  and  observance  of each  covenant and condition to

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be performed or observed by the Master Servicer under this Agreement;  provided,
further,  that each Rating Agency's  rating of the Classes of Certificates  that
have been rated in effect  immediately  prior to such  assignment and delegation
will not be qualified,  reduced or withdrawn as a result of such  assignment and
delegation (as evidenced by a letter to such effect from each Rating Agency). In
the case of any such  assignment and  delegation,  the Master  Servicer shall be
released  from its  obligations  under this  Agreement,  except  that the Master
Servicer shall remain liable for all liabilities and obligations  incurred by it
as Master Servicer hereunder prior to the satisfaction of the conditions to such
assignment  and   delegation   set  forth  in  the  next   preceding   sentence.
Notwithstanding  the  foregoing,  in the event of a pledge or  assignment by the
Master  Servicer  solely of its rights to purchase  all assets of the Trust Fund
under  Section  9.01(a) (or, if so specified in Section  9.01(a),  its rights to
purchase the Mortgage Loans and property acquired related to such Mortgage Loans
or its rights to purchase the Certificates related thereto), the provisos of the
first sentence of this paragraph will not apply.

      Section  6.03.  Limitation  on  Liability  of the  Depositor,  the  Master
Servicer and Others

      None  of the  Depositor,  the  Master  Servicer  or any of the  directors,
officers,  employees or agents of the Depositor or the Master  Servicer shall be
under any liability to the Trust Fund or the  Certificateholders  for any action
taken or for refraining  from the taking of any action in good faith pursuant to
this  Agreement,  or for  errors  in  judgment;  provided,  however,  that  this
provision  shall not  protect  the  Depositor,  the Master  Servicer or any such
Person  against any breach of  warranties,  representations  or  covenants  made
herein or any  liability  which would  otherwise be imposed by reason of willful
misfeasance,  bad faith or gross  negligence in the  performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The Depositor,
the  Master  Servicer  and any  director,  officer,  employee  or  agent  of the
Depositor  or the Master  Servicer may rely in good faith on any document of any
kind prima facie  properly  executed and submitted by any Person  respecting any
matters arising hereunder.  The Depositor, the Master Servicer and any director,
officer,  employee or agent of the  Depositor  or the Master  Servicer  shall be
indemnified by the Trust Fund and held harmless  against any loss,  liability or
expense  incurred in connection with any legal action relating to this Agreement
or the  Certificates,  other than any loss,  liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except as any such loss,  liability or
expense  shall be otherwise  reimbursable  pursuant to this  Agreement)  and any
loss, liability or expense incurred by reason of willful misfeasance,  bad faith
or gross  negligence  in the  performance  of duties  hereunder  or by reason of
reckless disregard of obligations and duties hereunder.

      Neither  the  Depositor  nor  the  Master  Servicer  shall  be  under  any
obligation to appear in, prosecute or defend any legal or administrative action,
proceeding,  hearing or  examination  that is not  incidental to its  respective
duties  under this  Agreement  and which in its  opinion  may  involve it in any
expense  or  liability;  provided,  however,  that the  Depositor  or the Master
Servicer may in its discretion undertake any such action, proceeding, hearing or
examination that it may deem necessary or desirable in respect to this Agreement
and the  rights  and  duties of the  parties  hereto  and the  interests  of the
Certificateholders  hereunder.  In such event,  the legal  expenses and costs of
such action,  proceeding,  hearing or  examination  and any liability  resulting
therefrom  shall be expenses,  costs and  liabilities of the Trust Fund, and the
Depositor and the Master  Servicer  shall be entitled to be reimbursed  therefor
out of amounts  attributable  to the Mortgage  Loans on deposit in the Custodial
Account as provided by Section 3.10 and, on the Distribution  Date(s)

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following such reimbursement,  the aggregate of such expenses and costs shall be
allocated  in  reduction  of the  Accrued  Certificate  Interest  on each  Class
entitled thereto in the same manner as if such expenses and costs  constituted a
Prepayment Interest Shortfall.

      Section 6.04. Depositor and Master Servicer Not to Resign

      Subject to the  provisions of Section 6.02,  neither the Depositor nor the
Master  Servicer shall resign from its respective  obligations and duties hereby
imposed on it except upon  determination that its duties hereunder are no longer
permissible  under  applicable  law.  Any  such  determination   permitting  the
resignation  of the  Depositor or the Master  Servicer  shall be evidenced by an
Opinion  of  Counsel  (at the  expense of the  resigning  party) to such  effect
delivered to the  Trustee.  No such  resignation  by the Master  Servicer  shall
become  effective  until the Trustee or a successor  servicer shall have assumed
the Master  Servicer's  responsibilities  and  obligations  in  accordance  with
Section 7.02.

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                                  ARTICLE VII

                                    DEFAULT

      Section 7.01. Events of Default

      Event of Default,  wherever  used herein,  means any one of the  following
events  (whatever  reason  for such  Event of  Default  and  whether it shall be
voluntary or  involuntary  or be effected by operation of law or pursuant to any
judgment,  decree or order of any court or any order,  rule or regulation of any
administrative or governmental body):

      (i)   the  Master  Servicer  shall  fail  to  distribute  or  cause  to be
            distributed to Holders of Certificates of any Class any distribution
            required  to be made  under  the terms of the  Certificates  of such
            Class and this  Agreement  and, in either case,  such failure  shall
            continue unremedied for a period of 5 days after the date upon which
            written  notice  of  such  failure,  requiring  such  failure  to be
            remedied,  shall  have  been  given to the  Master  Servicer  by the
            Trustee or the  Depositor or to the Master  Servicer,  the Depositor
            and the  Trustee  by the  Holders  of  Certificates  of  such  Class
            evidencing Percentage Interests aggregating not less than 25%; or

      (ii)  the Master Servicer shall fail to observe or perform in any material
            respect any other of the  covenants or agreements on the part of the
            Master  Servicer  contained in the  Certificates  of any Class or in
            this  Agreement and such failure  shall  continue  unremedied  for a
            period of 30 days  (except  that such  number of days shall be 15 in
            the case of a failure to pay the premium for any Required  Insurance
            Policy)  after the date on which  written  notice  of such  failure,
            requiring  the same to be  remedied,  shall  have been  given to the
            Master  Servicer by the Trustee or the  Depositor,  or to the Master
            Servicer,   the   Depositor  and  the  Trustee  by  the  Holders  of
            Certificates of any Class evidencing,  as to such Class,  Percentage
            Interests aggregating not less than 25%; or

      (iii) a decree  or order of a court or  agency  or  supervisory  authority
            having jurisdiction in the premises in an involuntary case under any
            present or future federal or state bankruptcy, insolvency or similar
            law or  appointing a  conservator  or receiver or  liquidator in any
            insolvency,   readjustment  of  debt,   marshalling  of  assets  and
            liabilities  or  similar  proceedings,  or  for  the  winding-up  or
            liquidation  of its  affairs,  shall have been  entered  against the
            Master  Servicer  and such  decree or order  shall have  remained in
            force undischarged or unstayed for a period of 60 days; or

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

      (v)   the Master  Servicer shall admit in writing its inability to pay its
            debts  generally  as  they  become  due,  file a  petition  to  take
            advantage  of, or commence a voluntary  case under,  any  applicable
            insolvency or  reorganization  statute,  make an

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            assignment for the benefit of its creditors,  or voluntarily suspend
            payment of its obligations; or

      (vi)  the Master  Servicer  shall  notify the Trustee  pursuant to Section
            4.04(b) that it is unable to deposit in the  Certificate  Account an
            amount equal to the Advance.

      If an Event of Default  described in clauses (i)-(v) of this Section shall
occur,  then,  and in each and every such case, so long as such Event of Default
shall not have been  remedied,  either the Depositor or the Trustee shall at the
direction  of Holders  of  Certificates  entitled  to at least 51% of the Voting
Rights,  by notice in writing to the Master  Servicer  (and to the  Depositor if
given by the Trustee or to the Trustee if given by the Depositor), terminate all
of the rights and obligations of the Master Servicer under this Agreement and in
and to the Mortgage Loans and the proceeds  thereof,  other than its rights as a
Certificateholder  hereunder;  provided, however, that a successor to the Master
Servicer  is  appointed  pursuant  to  Section  7.02 and such  successor  Master
Servicer  shall have accepted the duties of Master  Servicer  effective upon the
resignation of the Master Servicer.  If an Event of Default  described in clause
(vi) hereof shall occur, the Trustee shall, by notice to the Master Servicer and
the Depositor,  immediately  terminate all of the rights and  obligations of the
Master  Servicer  under this  Agreement and in and to the Mortgage Loans and the
proceeds  thereof,  other than its rights as a  Certificateholder  hereunder  as
provided in Section  4.04(b).  On or after the receipt by the Master Servicer of
such written  notice,  all authority and power of the Master Servicer under this
Agreement,  whether  with  respect to the  Certificates  (other than as a Holder
thereof) or the Mortgage Loans or otherwise,  shall subject to Section 7.02 pass
to and be vested in the Trustee or the Trustee's  designee appointed pursuant to
Section 7.02;  and,  without  limitation,  the Trustee is hereby  authorized and
empowered  to  execute  and  deliver,  on  behalf  of the  Master  Servicer,  as
attorney-in-fact or otherwise, any and all documents and other instruments,  and
to do or accomplish all other acts or things  necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement  or  assignment  of the  Mortgage  Loans and related  documents,  or
otherwise. The Master Servicer agrees to cooperate with the Trustee as successor
Master  Servicer  in  effecting  the   termination  of  the  Master   Servicer's
responsibilities  and  rights  hereunder,  including,  without  limitation,  the
transfer to the Trustee or its  designee  for  administration  by it of all cash
amounts  which  shall at the time be credited  to the  Custodial  Account or the
Certificate  Account or  thereafter  be received  with  respect to the  Mortgage
Loans. No such  termination  shall release the Master Servicer for any liability
that it would  otherwise  have  hereunder  for any act or omission  prior to the
effective time of such termination.

      Notwithstanding  any termination of the activities of Residential  Funding
in its  capacity as Master  Servicer  hereunder,  Residential  Funding  shall be
entitled  to  receive,  out of any late  collection  of a Monthly  Payment  on a
Mortgage  Loan  which  was  due  prior  to the  notice  terminating  Residential
Funding's rights and obligations as Master Servicer hereunder and received after
such notice,  that portion to which Residential Funding would have been entitled
pursuant to Sections 3.10(a)(ii), (vi) and (vii) as well as its Servicing Fee in
respect thereof,  and any other amounts payable to Residential Funding hereunder
the  entitlement  to which  arose  prior to the  termination  of its  activities
hereunder.  Upon the  termination  of  Residential  Funding  as Master  Servicer
hereunder  the  Depositor  shall  deliver to the Trustee,  as  successor  Master
Servicer, a copy of the Program Guide.

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      Section 7.02. Trustee or Depositor to Act; Appointment of Successor

            (a) On and after the time the Master  Servicer  receives a notice of
termination pursuant to Section 7.01 or resigns in accordance with Section 6.04,
the Trustee or, upon notice to the Depositor and with the Depositor's  consent a
designee  (which meets the standards  set forth below) of the Trustee,  shall be
the successor in all respects to the Master Servicer in its capacity as servicer
under this Agreement and the  transactions  set forth or provided for herein and
shall be subject to all the  responsibilities,  duties and liabilities  relating
thereto placed on the Master Servicer (except for the  responsibilities,  duties
and  liabilities  contained in Sections 2.02 and 2.03(a),  excluding the duty to
notify related  Subservicers as set forth in such Sections,  and its obligations
to  deposit  amounts  in  respect  of losses  incurred  prior to such  notice or
termination  on  the  investment  of  funds  in  the  Custodial  Account  or the
Certificate  Account  pursuant to Sections  3.07(c) and 4.01(b) by the terms and
provisions hereof);  provided,  however, that any failure to perform such duties
or responsibilities caused by the preceding Master Servicer's failure to provide
information  required by Section  4.04 shall not be  considered a default by the
Trustee hereunder,  as successor Master Servicer.  If the Trustee has become the
successor  to the Master  Servicer in  accordance  with  Section 6.04 or Section
7.01, then  notwithstanding the above, the Trustee may, if it shall be unwilling
to so act, or shall, if it is unable to so act, appoint,  or petition a court of
competent  jurisdiction  to appoint,  any  established  housing and home finance
institution,  which  is  also a  Fannie  Mae or  Freddie  Mac-approved  mortgage
servicing  institution,  having a net worth of not less than  $10,000,000 as the
successor to the Master Servicer  hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the Master Servicer hereunder.
Pending appointment of a successor to the Master Servicer hereunder, the Trustee
shall become  successor to the Master Servicer and shall act in such capacity as
hereinabove provided. As compensation therefor, the Trustee, as successor Master
Servicer,  shall be entitled to all funds  relating to the Mortgage  Loans which
the Master Servicer would have been entitled to charge to the Custodial  Account
or the Certificate Account if the Master Servicer had continued to act hereunder
and, in addition, shall be entitled to the income from any Permitted Investments
made with  amounts  attributable  to the  Mortgage  Loans held in the  Custodial
Account or the  Certificate  Account.  In connection  with such  appointment and
assumption,  the Trustee may make such arrangements for the compensation of such
successor  out of  payments  on Mortgage  Loans as it and such  successor  shall
agree;  provided,  however, that no such compensation shall be in excess of that
permitted the initial Master Servicer hereunder. The Depositor, the Trustee, the
Custodian  and such  successor  shall  take such  action,  consistent  with this
Agreement,  as  shall be  necessary  to  effectuate  any  such  succession.  The
Servicing  Fee for any  successor  Master  Servicer  appointed  pursuant to this
Section 7.02 will be lowered with respect to those Mortgage Loans, if any, where
the  Subservicing  Fee  accrues  at a rate of less than  0.200% per annum in the
event that the successor  Master  Servicer is not servicing  such Mortgage Loans
directly and it is necessary to raise the related  Subservicing Fee to a rate of
0.200% per annum in order to hire a  Subservicer  with respect to such  Mortgage
Loans.

            (b) In connection  with the termination or resignation of the Master
Servicer  hereunder,  either (i) the successor  Master  Servicer,  including the
Trustee if the Trustee is acting as successor Master  Servicer,  shall represent
and  warrant  that it is a member of MERS in good  standing  and shall  agree to
comply  in all  material  respects  with the  rules  and  procedures  of MERS in
connection  with the servicing of the Mortgage  Loans that are  registered  with
MERS, in which case the  predecessor  Master  Servicer shall  cooperate with the
successor  Master  Servicer in

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causing  MERS to revise its records to reflect the  transfer of servicing to the
successor  Master  Servicer as necessary under MERS' rules and  regulations,  or
(ii) the predecessor  Master Servicer shall cooperate with the successor  Master
Servicer in causing  MERS to execute and  deliver an  assignment  of Mortgage in
recordable form to transfer the Mortgage from MERS to the Trustee and to execute
and  deliver  such other  notices,  documents  and other  instruments  as may be
necessary or desirable to effect a transfer of such  Mortgage  Loan or servicing
of such Mortgage Loan on the MERS(R)  System to the successor  Master  Servicer.
The  predecessor  Master  Servicer  shall  file or cause  to be  filed  any such
assignment in the appropriate  recording office. The predecessor Master Servicer
shall  bear any and all fees of MERS,  costs of  preparing  any  assignments  of
Mortgage,  and fees and costs of filing any  assignments of Mortgage that may be
required under this  subsection  (b). The successor  Master Servicer shall cause
such  assignment to be delivered to the Trustee or the  Custodian  promptly upon
receipt of the original with evidence of recording  thereon or a copy  certified
by the public recording office in which such assignment was recorded.

      Section 7.03. Notification to Certificateholders

            (a) Upon any such  termination  or appointment of a successor to the
Master  Servicer,  the Trustee shall give prompt  written  notice thereof to the
Certificateholders  at their respective  addresses  appearing in the Certificate
Register.

            (b) Within 60 days after the occurrence of any Event of Default, the
Trustee  shall  transmit by mail to all Holders of  Certificates  notice of each
such Event of  Default  hereunder  known to the  Trustee,  unless  such Event of
Default shall have been cured or waived as provided in Section 7.04 hereof.

      Section 7.04. Waiver of Events of Default

      The Holders representing at least 66% of the Voting Rights of Certificates
affected  by a default or Event of Default  hereunder  may waive any  default or
Event of  Default;  provided,  however,  that (a) a default  or Event of Default
under  clause (i) of Section  7.01 may be waived  only by all of the  Holders of
Certificates  affected  by such  default or Event of  Default  and (b) no waiver
pursuant to this Section 7.04 shall  affect the Holders of  Certificates  in the
manner set forth in Section 11.01(b)(i),  (ii) or (iii). Upon any such waiver of
a  default  or  Event of  Default  by the  Holders  representing  the  requisite
percentage of Voting Rights of Certificates affected by such default or Event of
Default  such  default  or Event of  Default  shall  cease to exist and shall be
deemed to have been remedied for every purpose  hereunder.  No such waiver shall
extend to any  subsequent  or other  default  or Event of  Default or impair any
right consequent thereon except to the extent expressly so waived.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

      Section 8.01. Duties of Trustee

            (a) The Trustee,  prior to the occurrence of an Event of Default and
after the  curing or waiver of all Events of  Default  which may have  occurred,
undertakes to perform such duties and only such duties as are  specifically  set
forth in this Agreement. In case an Event of Default has occurred (which has not
been cured or waived),  the Trustee shall exercise such of the rights and powers
vested  in it by this  Agreement,  and use the same  degree of care and skill in
their  exercise  as  a  prudent   investor  would  exercise  or  use  under  the
circumstances in the conduct of such investor's own affairs.

            (b) The  Trustee,  upon  receipt of all  resolutions,  certificates,
statements,  opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically  required to be furnished  pursuant to any
provision  of this  Agreement,  shall  examine  them to  determine  whether they
conform to the  requirements  of this  Agreement.  The Trustee  shall notify the
Certificateholders  of any such documents which do not materially conform to the
requirements  of  this  Agreement  in the  event  that  the  Trustee,  after  so
requesting, does not receive satisfactorily corrected documents.

      The Trustee shall forward or cause to be forwarded in a timely fashion the
notices, reports and statements required to be forwarded by the Trustee pursuant
to Sections 4.03, 7.03, and 10.01. The Trustee shall furnish in a timely fashion
to the Master  Servicer such  information as the Master  Servicer may reasonably
request  from time to time for the Master  Servicer to fulfill its duties as set
forth in this Agreement.  The Trustee covenants and agrees that it shall perform
its obligations hereunder in a manner so as to maintain the status of each REMIC
created  hereunder as a REMIC under the REMIC Provisions and (subject to Section
10.01(f))  to prevent the  imposition  of any  federal,  state or local  income,
prohibited  transaction,  contribution  or other  tax on the  Trust  Fund to the
extent that  maintaining  such  status and  avoiding  such taxes are  reasonably
within the  control of the Trustee  and are  reasonably  within the scope of its
duties under this Agreement.

            (c) No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent  action,  its own negligent failure
to act or its own willful misconduct; provided, however, that:

                  (i) Prior to the occurrence of an Event of Default,  and after
the curing or waiver of all such Events of Default which may have occurred,  the
duties and obligations of the Trustee shall be determined  solely by the express
provisions  of this  Agreement,  the Trustee  shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this Agreement
against the Trustee and, in the absence of bad faith on the part of the Trustee,
the Trustee may  conclusively  rely, as to the truth of the  statements  and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Trustee by the

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Depositor or the Master  Servicer and which on their face, do not contradict the
requirements of this Agreement;

                  (ii) The Trustee shall not be  personally  liable for an error
of judgment made in good faith by a Responsible Officer or Responsible  Officers
of the  Trustee,  unless it shall be proved that the Trustee  was  negligent  in
ascertaining the pertinent facts;

                  (iii) The Trustee shall not be personally  liable with respect
to any  action  taken,  suffered  or  omitted to be taken by it in good faith in
accordance  with the direction of the  Certificateholders  holding  Certificates
which  evidence,  Percentage  Interests  aggregating  not  less  than 25% of the
affected  Classes as to the time,  method and place of conducting any proceeding
for any  remedy  available  to the  Trustee,  or  exercising  any trust or power
conferred upon the Trustee, under this Agreement;

                  (iv) The Trustee  shall not be charged  with  knowledge of any
default  (other than a default in payment to the  Trustee)  specified in clauses
(i) and (ii) of Section 7.01 or an Event of Default  under clauses  (iii),  (iv)
and (v) of Section 7.01 unless a Responsible  Officer of the Trustee assigned to
and working in the  Corporate  Trust  Office  obtains  actual  knowledge of such
failure or event or the Trustee receives written notice of such failure or event
at its  Corporate  Trust Office from the Master  Servicer,  the Depositor or any
Certificateholder; and

                  (v)  Except  to  the  extent  provided  in  Section  7.02,  no
provision in this Agreement  shall require the Trustee to expend or risk its own
funds (including,  without  limitation,  the making of any Advance) or otherwise
incur any personal  financial  liability in the performance of any of its duties
as Trustee hereunder,  or in the exercise of any of its rights or powers, if the
Trustee shall have  reasonable  grounds for believing that repayment of funds or
adequate  indemnity against such risk or liability is not reasonably  assured to
it.

            (d) The Trustee shall timely pay, from its own funds,  the amount of
any and all  federal,  state and local  taxes  imposed  on the Trust Fund or its
assets  or  transactions   including,   without   limitation,   (A)  "prohibited
transaction"  penalty taxes as defined in Section 860F of the Code, if, when and
as the same shall be due and payable,  (B) any tax on  contributions  to a REMIC
after the Closing Date imposed by Section 860G(d) of the Code and (C) any tax on
"net  income from  foreclosure  property"  as defined in Section  860G(c) of the
Code,  but only if such  taxes  arise  out of a  breach  by the  Trustee  of its
obligations hereunder, which breach constitutes negligence or willful misconduct
of the Trustee.

      Section 8.02. Certain Matters Affecting the Trustee

            (a) Except as otherwise provided in Section 8.01:

                  (i) The Trustee may rely and shall be  protected  in acting or
refraining from acting upon any resolution,  Officers' Certificate,  certificate
of auditors or any other certificate,  statement,  instrument,  opinion, report,
notice,  request,  consent,  order,  appraisal,  bond or other paper or document
believed by it to be genuine and to have been signed or  presented by the proper
party or parties;

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                  (ii) The Trustee may consult  with  counsel and any Opinion of
Counsel shall be full and complete  authorization  and  protection in respect of
any action  taken or  suffered or omitted by it  hereunder  in good faith and in
accordance with such Opinion of Counsel;

                  (iii) The Trustee shall be under no obligation to exercise any
of the trusts or powers vested in it by this Agreement or to institute,  conduct
or defend any litigation  hereunder or in relation hereto at the request,  order
or direction of any of the Certificateholders pursuant to the provisions of this
Agreement,  unless  such  Certificateholders  shall have  offered to the Trustee
reasonable  security or indemnity  against the costs,  expenses and  liabilities
which may be  incurred  therein or  thereby;  nothing  contained  herein  shall,
however, relieve the Trustee of the obligation,  upon the occurrence of an Event
of Default (which has not been cured), to exercise such of the rights and powers
vested in it by this Agreement,  and to use the same degree of care and skill in
their  exercise  as  a  prudent   investor  would  exercise  or  use  under  the
circumstances in the conduct of such investor's own affairs;

                  (iv) The Trustee shall not be personally liable for any action
taken,  suffered  or  omitted  by it in  good  faith  and  believed  by it to be
authorized  or within the  discretion or rights or powers  conferred  upon it by
this Agreement;

                  (v) Prior to the  occurrence of an Event of Default  hereunder
and after the  curing of all  Events of  Default  which may have  occurred,  the
Trustee shall not be bound to make any  investigation  into the facts or matters
stated in any resolution,  certificate,  statement, instrument, opinion, report,
notice,  request,  consent,  order,  approval,  bond or other paper or document,
unless requested in writing so to do by the Holders of Certificates of any Class
evidencing,  as to such Class,  Percentage Interests,  aggregating not less than
50%;  provided,  however,  that if the payment  within a reasonable  time to the
Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such  investigation is, in the opinion of the Trustee,  not reasonably
assured  to the  Trustee  by the  security  afforded  to it by the terms of this
Agreement,  the Trustee may require reasonable indemnity against such expense or
liability as a condition to so proceeding.  The reasonable expense of every such
examination  shall be paid by the Master Servicer,  if an Event of Default shall
have  occurred  and  is  continuing,  and  otherwise  by  the  Certificateholder
requesting the investigation;

                  (vi) The  Trustee  may  execute  any of the  trusts  or powers
hereunder  or perform  any duties  hereunder  either  directly  or by or through
agents or attorneys  provided  that the Trustee shall remain liable for any acts
of such agents or attorneys; and

                  (vii)  To  the  extent  authorized  under  the  Code  and  the
regulations promulgated thereunder,  each Holder of a Class R Certificate hereby
irrevocably  appoints and authorizes the Trustee to be its  attorney-in-fact for
purposes of signing any Tax Returns  required to be filed on behalf of the Trust
Fund.  The  Trustee  shall sign on behalf of the Trust  Fund and  deliver to the
Master  Servicer in a timely manner any Tax Returns  prepared by or on behalf of
the Master  Servicer  that the Trustee is required to sign as  determined by the
Master  Servicer  pursuant  to  applicable  federal,  state or local  tax  laws,
provided that the Master  Servicer  shall  indemnify the Trustee for signing any
such Tax Returns that contain errors or omissions.

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            (b)  Following  the  issuance  of the  Certificates  (and  except as
provided for in Section 2.04),  the Trustee shall not accept any contribution of
assets to the Trust Fund  unless  (subject  to Section  10.01(f))  it shall have
obtained  or been  furnished  with an Opinion of Counsel to the effect that such
contribution  will not (i) cause any REMIC created  hereunder to fail to qualify
as a REMIC at any time that any  Certificates  are outstanding or (ii) cause the
Trust  Fund to be subject to any  federal  tax as a result of such  contribution
(including  the  imposition  of any  federal  tax on  "prohibited  transactions"
imposed under Section 860F(a) of the Code).

      Section 8.03. Trustee Not Liable for Certificates or Mortgage Loans

      The  recitals  contained  herein and in the  Certificates  (other than the
execution of the  Certificates and relating to the acceptance and receipt of the
Mortgage  Loans) shall be taken as the statements of the Depositor or the Master
Servicer as the case may be, and the Trustee assumes no responsibility for their
correctness.  The  Trustee  makes  no  representations  as to  the  validity  or
sufficiency  of  this  Agreement  or  of  the  Certificates   (except  that  the
Certificates  shall be duly and  validly  executed  and  authenticated  by it as
Certificate  Registrar) or of any Mortgage Loan or related document,  or of MERS
or the MERS(R) System.  Except as otherwise  provided herein,  the Trustee shall
not be  accountable  for the use or  application  by the Depositor or the Master
Servicer of any of the Certificates or of the proceeds of such Certificates,  or
for the use or  application  of any funds  paid to the  Depositor  or the Master
Servicer in respect of the Mortgage  Loans or deposited in or withdrawn from the
Custodial  Account or the  Certificate  Account by the  Depositor  or the Master
Servicer.

      Section 8.04. Trustee May Own Certificates

      The Trustee in its  individual or any other  capacity may become the owner
or pledgee  of  Certificates  with the same  rights it would have if it were not
Trustee.

      Section  8.05.  Master  Servicer  to  Pay  Trustee's  Fees  and  Expenses;
Indemnification

            (a) The Master  Servicer  covenants and agrees to pay to the Trustee
and any co-trustee  from time to time, and the Trustee and any co-trustee  shall
be  entitled  to,  reasonable  compensation  (which  shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for all services  rendered by each of them in the execution of the trusts hereby
created  and in the  exercise  and  performance  of any of the powers and duties
hereunder of the Trustee and any  co-trustee,  and the Master Servicer shall pay
or reimburse  the Trustee and any  co-trustee  upon  request for all  reasonable
expenses,  disbursements  and  advances  incurred  or made by the Trustee or any
co-trustee in accordance with any of the provisions of this Agreement (including
the reasonable  compensation  and the expenses and  disbursements of its counsel
and of all persons not regularly in its employ, and the expenses incurred by the
Trustee or any  co-trustee in connection  with the  appointment  of an office or
agency  pursuant  to Section  8.12)  except any such  expense,  disbursement  or
advance as may arise from its negligence or bad faith.

            (b) The Master  Servicer agrees to indemnify the Trustee for, and to
hold the Trustee  harmless  against,  any loss,  liability  or expense  incurred
without  negligence  or willful  misconduct  on its part,  arising out of, or in
connection with, the acceptance and administration of

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the Trust  Fund,  including  its  obligation  to  execute  the DTC Letter in its
individual capacity,  and including the costs and expenses (including reasonable
legal fees and  expenses) of defending  itself  against any claim in  connection
with the  exercise  or  performance  of any of its  powers or duties  under this
Agreement and the Swap  Agreement,  and the Master  Servicer  further  agrees to
indemnify the Trustee for, and to hold the Trustee harmless  against,  any loss,
liability or expense  arising out of, or in connection  with, the provisions set
forth in the  last  paragraph  of  Section  2.01(b)  hereof,  including  without
limitation, all costs, liabilities and expenses (including reasonable legal fees
and expenses) of investigating and defending itself against any claim, action or
proceeding, pending or threatened, relating to the provisions of such paragraph,
provided, that

                  (i) with  respect to any such claim,  the  Trustee  shall have
given the Master  Servicer  written  notice  thereof  promptly after the Trustee
shall have actual knowledge thereof;

                  (ii)  while  maintaining  control  over its own  defense,  the
Trustee shall  cooperate and consult fully with the Master Servicer in preparing
such defense; and

                  (iii)  notwithstanding  anything  in  this  Agreement  to  the
contrary, the Master Servicer shall not be liable for settlement of any claim by
the Trustee  entered into without the prior consent of the Master Servicer which
consent shall not be unreasonably withheld.

      No termination of this Agreement shall affect the  obligations  created by
this Section  8.05(b) of the Master  Servicer to indemnify the Trustee under the
conditions and to the extent set forth herein.

      Notwithstanding the foregoing,  the indemnification provided by the Master
Servicer in this  Section  8.05(b)  shall not pertain to any loss,  liability or
expense of the Trustee,  including  the costs and  expenses of defending  itself
against any claim,  incurred in connection with any actions taken by the Trustee
at the direction of Certificateholders pursuant to the terms of this Agreement.

      Section 8.06. Eligibility Requirements for Trustee

      The Trustee hereunder shall at all times be a national banking association
or a New York banking  corporation  having its  principal  office in a state and
city acceptable to the Depositor and organized and doing business under the laws
of such state or the United  States of  America,  authorized  under such laws 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
authority. If such corporation or national banking association publishes reports
of condition at least  annually,  pursuant to law or to the  requirements of the
aforesaid supervising or examining authority,  then for purposes 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  Trustee  shall  cease to be eligible in
accordance  with the  provisions  of this  Section,  the  Trustee  shall  resign
immediately in the manner and with the effect specified in Section 8.07.

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      Section 8.07. Resignation and Removal of the Trustee

            (a) The Trustee may at any time  resign and be  discharged  from the
trusts hereby  created by giving written notice thereof to the Depositor and the
Master Servicer. Upon receiving such notice of resignation,  the Depositor shall
promptly appoint a successor trustee by written  instrument,  in duplicate,  one
copy of which  instrument  shall be delivered to the  resigning  Trustee and one
copy to the  successor  trustee.  If no  successor  trustee  shall  have been so
appointed and have accepted  appointment within 30 days after the giving of such
notice of  resignation  then the  resigning  Trustee may  petition  any court of
competent jurisdiction for the appointment of a successor trustee.

            (b) If at any  time  the  Trustee  shall  cease  to be  eligible  in
accordance  with the  provisions  of Section 8.06 and shall fail to resign after
written request  therefor by the Depositor,  or if at any time the Trustee shall
become  incapable of acting,  or shall be adjudged  bankrupt or insolvent,  or a
receiver of the Trustee or of its  property  shall be  appointed,  or any public
officer  shall  take  charge or control of the  Trustee  or of its  property  or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor  may remove the Trustee  and  appoint a  successor  trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor  trustee.  In addition,  in the
event  that  the  Depositor  determines  that  the  Trustee  has  failed  (i) to
distribute or cause to be distributed to Certificateholders  any amount required
to be distributed hereunder, if such amount is held by the Trustee or its Paying
Agent (other than the Master Servicer or the Depositor) for distribution or (ii)
to otherwise  observe or perform in any material  respect any of its  covenants,
agreements or obligations hereunder,  and such failure shall continue unremedied
for a period of 5 days (in  respect of clause (i) above) or 30 days (in  respect
of clause (ii) above) after the date on which  written  notice of such  failure,
requiring that the same be remedied, shall have been given to the Trustee by the
Depositor, then the Depositor, which consent shall not be unreasonably withheld,
may remove the Trustee and  appoint a  successor  trustee by written  instrument
delivered  as  provided  in the  preceding  sentence.  In  connection  with  the
appointment  of a successor  trustee  pursuant to the  preceding  sentence,  the
Depositor  shall,  on or before the date on which any such  appointment  becomes
effective,  obtain  from  each  Rating  Agency  written  confirmation  that  the
appointment  of any such  successor  trustee will not result in the reduction of
the  ratings  on any  Class of the  Certificates  below  the  lesser of the then
current or original ratings on such Certificates.

            (c) The  Holders  of  Certificates  entitled  to at least 51% of the
Voting Rights may at any time remove the Trustee and appoint a successor trustee
by written instrument or instruments,  in triplicate,  signed by such Holders or
their  attorneys-in-fact duly authorized,  one complete set of which instruments
shall be delivered to the Depositor,  one complete set to the Trustee so removed
and one complete set to the successor so appointed.

            (d) Any  resignation or removal of the Trustee and  appointment of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.08.

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      Section 8.08. Successor Trustee

            (a) Any  successor  trustee  appointed  as provided in Section  8.07
shall execute,  acknowledge  and deliver to the Depositor and to its predecessor
trustee an instrument  accepting such appointment  hereunder,  and thereupon the
resignation  or removal of the  predecessor  trustee shall become  effective and
such  successor  trustee  shall become  effective  and such  successor  trustee,
without any further act, deed or conveyance,  shall become fully vested with all
the rights,  powers, duties and obligations of its predecessor  hereunder,  with
the like  effect as if  originally  named as  trustee  herein.  The  predecessor
trustee shall deliver to the successor  trustee all Custodial  Files and related
documents and statements held by it hereunder (other than any Custodial Files at
the time held by a  Custodian,  which  shall  become the agent of any  successor
trustee hereunder),  and the Depositor,  the Master Servicer and the predecessor
trustee shall execute and deliver such  instruments  and do such other things as
may  reasonably be required for more fully and certainly  vesting and confirming
in the successor trustee all such rights, powers, duties and obligations.

            (b) No successor  trustee  shall accept  appointment  as provided in
this Section unless at the time of such acceptance such successor  trustee shall
be eligible under the provisions of Section 8.06.

            (c)  Upon  acceptance  of  appointment  by a  successor  trustee  as
provided in this Section,  the Depositor  shall mail notice of the succession of
such trustee  hereunder  to all Holders of  Certificates  at their  addresses as
shown in the  Certificate  Register.  If the Depositor fails to mail such notice
within 10 days after  acceptance of  appointment by the successor  trustee,  the
successor  trustee  shall  cause such  notice to be mailed at the expense of the
Depositor.

      Section 8.09. Merger or Consolidation of Trustee

      Any corporation or national banking association into which the Trustee may
be merged or converted or with which it may be  consolidated  or any corporation
or  national  banking  association  resulting  from any  merger,  conversion  or
consolidation  to which the  Trustee  shall be a party,  or any  corporation  or
national banking association succeeding to the business of the Trustee, shall be
the successor of the Trustee  hereunder,  provided such  corporation or national
banking  association  shall be eligible  under the  provisions  of Section 8.06,
without the  execution  or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.  The
Trustee  shall  mail  notice  of  any  such  merger  or   consolidation  to  the
Certificateholders at their address as shown in the Certificate Register.

      Section 8.10. Appointment of Co-Trustee or Separate Trustee

            (a)  Notwithstanding  any other provisions  hereof, at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Trust Fund or property securing the same may at the time be located,
the Master  Servicer  and the Trustee  acting  jointly  shall have the power and
shall  execute  and  deliver  all  instruments  to appoint  one or more  Persons
approved by the Trustee to act as  co-trustee or  co-trustees,  jointly with the
Trustee,  or separate  trustee or separate  trustees,  of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity,  such title
to the Trust Fund, or any part thereof,  and, subject

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to the other provisions of this Section 8.10, such powers, duties,  obligations,
rights and trusts as the Master Servicer and the Trustee may consider  necessary
or desirable.  If the Master Servicer shall not have joined in such  appointment
within 15 days  after  the  receipt  by it of a request  so to do, or in case an
Event of Default shall have occurred and be continuing,  the Trustee alone shall
have the power to make such  appointment.  No  co-trustee  or  separate  trustee
hereunder  shall be  required  to meet the terms of  eligibility  as a successor
trustee under Section 8.06 hereunder and no notice to Holders of Certificates of
the appointment of co-trustee(s) or separate  trustee(s) shall be required under
Section 8.08 hereof.

            (b) In the  case of any  appointment  of a  co-trustee  or  separate
trustee pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred  or imposed  upon the Trustee  shall be  conferred or imposed upon and
exercised or performed by the Trustee,  and such separate  trustee or co-trustee
jointly,  except to the extent that under any law of any  jurisdiction  in which
any particular act or acts are to be performed  (whether as Trustee hereunder or
as successor to the Master Servicer hereunder), the 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 Fund or any
portion  thereof in any such  jurisdiction)  shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

            (c) Any notice,  request or other writing given to the 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 VIII. 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
Trustee or separately, as may be provided therein, subject to all the provisions
of this  Agreement,  specifically  including  every  provision of this Agreement
relating to the conduct of, affecting the liability of, or affording  protection
to, the Trustee.  Every such instrument shall be filed with the Trustee. (d) Any
separate  trustee or co-trustee  may, at any time,  constitute the 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
Trustee,  to the extent  permitted by law,  without the  appointment of a new or
successor trustee.

      Section 8.11. Appointment of Custodians

      The  Trustee  may,  with  the  consent  of the  Master  Servicer  and  the
Depositor,  or shall, at the direction of the Master Servicer and the Depositor,
appoint  custodians  who are  not  Affiliates  of the  Depositor  or the  Master
Servicer  to hold all or a  portion  of the  Custodial  Files  as agent  for the
Trustee,  by entering into a Custodial  Agreement.  Subject to Article VIII, the
Trustee agrees to comply with the terms of each Custodial Agreement with respect
to the Custodial  Files and to enforce the terms and provisions  thereof against
the related custodian for the benefit of the Certificateholders.  Each custodian
shall be a depository  institution  subject to  supervision  by federal or state
authority, shall have a combined capital and surplus of at least $15,000,000 and
shall be  qualified  to do  business in the  jurisdiction  in which it holds any
Custodial  File. Each Custodial  Agreement with respect to the Custodial  Files,
may be amended only as provided in

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Section  11.01.  The  Trustee  shall  notify  the   Certificateholders   of  the
appointment  of any  custodian  (other than the  custodian  appointed  as of the
Closing Date) pursuant to this Section 8.11.

      Section 8.12. Appointment of Office or Agency

      The Trustee  shall  maintain  an office or agency in the  [______________]
where  Certificates may be surrendered for registration of transfer or exchange.
The Trustee  initially  designates  its offices  located at the Corporate  Trust
Office for the purpose of keeping the  Certificate  Register.  The Trustee shall
maintain  an office at the  address  stated in  Section  11.05(c)  hereof  where
notices and demands to or upon the Trustee in respect of this  Agreement  may be
served.

      Section 8.13. DTC Letter of Representations.

      The  Trustee is hereby  authorized  and  directed  to, and agrees  that it
shall,  enter  into  the DTC  Letter  on  behalf  of the  Trust  Fund and in its
individual capacity as agent thereunder.

      Section 8.14. [Swap Agreement.]

      [The  Trustee is hereby  authorized  and  directed  to, and agrees that it
shall, enter into the Swap Agreement on behalf of the Trust Fund.]

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                                   ARTICLE IX

                                  TERMINATION

      Section 9.01.  Termination  Upon Purchase or  Liquidation  of All Mortgage
Loans.

            (a)  Subject  to  Section  9.02,  the  respective   obligations  and
responsibilities  of the Depositor,  the Master Servicer and the Trustee created
hereby in respect of the Certificates  (other than the obligation of the Trustee
to make certain payments after the Final Distribution Date to Certificateholders
and the obligation of the Depositor to send certain  notices as hereinafter  set
forth) shall  terminate upon the last action required to be taken by the Trustee
on the Final Distribution Date pursuant to this Article IX following the earlier
of:

                  (i) the later of the final  payment or other  liquidation  (or
any Advance with respect  thereto) of the last  Mortgage  Loan  remaining in the
Trust Fund or the disposition of all property  acquired upon foreclosure or deed
in lieu of foreclosure of any Mortgage Loan, or

                  (ii) at the option of EMC Mortgage Corporation or its designee
or the Master  Servicer,  as provided in Section  9.01(f),  the  purchase of all
Mortgage  Loans and all  property  acquired  in  respect  of any  Mortgage  Loan
remaining  in the  Trust  Fund,  at a price  equal to the sum of (A) 100% of the
unpaid  principal  balance of each  Mortgage  Loan (or, if less than such unpaid
principal balance,  the fair market value of the related underlying  property of
such  Mortgage  Loan with  respect to Mortgage  Loans as to which title has been
acquired if such fair market value is less than such unpaid  principal  balance)
(and  if  such  purchase  is  made  by  the  Master  Servicer  only,  net of any
unreimbursed Advances attributable to principal) on the day of repurchase,  plus
accrued interest thereon at the Net Mortgage Rate (or Modified Net Mortgage Rate
in the case of any Modified Mortgage Loan), to, but not including, the first day
of the month in which such repurchase  price is distributed,  and (B) any unpaid
Swap  Termination  Payment  payable  to  the  Swap  Counterparty  (or  any  Swap
Termination Payment payable to the Swap Counterparty as a result of the exercise
of the option provided for in this Section 9.01(a)(ii));

provided,  however,  that in no event shall the trust  created  hereby  continue
beyond the  expiration  of 21 years from the death of the last  survivor  of the
descendants  of Joseph P. Kennedy,  the late  ambassador of the United States to
the Court of St. James,  living on the date hereof;  and provided further,  that
the  purchase  price set forth  above shall be  increased  as is  necessary,  as
determined  by the  Master  Servicer,  to avoid  disqualification  of any  REMIC
created hereunder as a REMIC.

      The purchase price paid by EMC Mortgage Corporation or its designee or the
Master  Servicer,  as  applicable,  pursuant to Section  9.01(a)(ii)  shall also
include any amounts owed by Residential  Funding  pursuant to the last paragraph
of Section 4 of the Assignment Agreement in respect of any liability, penalty or
expense that resulted from a breach of the representation and warranty set forth
in clause (w) of Section 4 of the Assignment Agreement that remain unpaid on the
date of such purchase.

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<PAGE>

      The  right of EMC  Mortgage  Corporation  or its  designee  or the  Master
Servicer,  as  applicable,  to purchase  all of the Mortgage  Loans  pursuant to
clause (ii) above is conditioned upon the date of such purchase  occurring on or
after the Optional  Termination  Date.  If such right is exercised by the Master
Servicer,  the Master  Servicer shall be deemed to have been  reimbursed for the
full amount of any unreimbursed  Advances theretofore made by it with respect to
the Mortgage  Loans being  purchased.  In addition,  the Master  Servicer  shall
provide to the  Trustee  the  certification  required  by  Section  3.15 and the
Trustee and any  Custodian  shall,  promptly  following  payment of the purchase
price,  release  to EMC  Mortgage  Corporation  or its  designee  or the  Master
Servicer,  as applicable,  the Mortgage  Files  pertaining to the Mortgage Loans
being purchased.

      In addition to the  foregoing,  on any  Distribution  Date on or after the
Optional  Termination  Date,  EMC  Mortgage  Corporation  or its designee or the
Master Servicer,  as provided in Section  9.01(f),  shall have the right, at its
option,  to purchase the [Class A Certificates,  Class M  Certificates,  Class B
Certificates]  and Class SB Certificates  in whole,  but not in part, at a price
equal  to the  sum of the  outstanding  Certificate  Principal  Balance  of such
Certificates plus the sum of one month's Accrued  Certificate  Interest thereon,
any previously unpaid Accrued  Certificate  Interest,  and any unpaid Prepayment
Interest Shortfalls  previously allocated thereto and, in the case of Prepayment
Interest  Shortfalls,  accrued interest  thereon at the applicable  Pass-Through
Rate, plus, with respect to any optional termination by EMC Mortgage Corporation
or its designee,  an amount equal to all accrued and unpaid  Servicing  Fees and
reimbursement for all unreimbursed Advances and Servicing Advances, in each case
through the date of such  optional  termination.  If the Master  Servicer or EMC
Mortgage  Corporation or its designee,  as  applicable,  exercises this right to
purchase the  outstanding  Class A Certificates,  Class M Certificates,  Class B
Certificates and Class SB Certificates, EMC Mortgage Corporation or its designee
or the Master Servicer,  as applicable,  will promptly  terminate the respective
obligations and responsibilities created hereby in respect of these Certificates
pursuant to this Article IX.

            (b) The Master Servicer or EMC Mortgage Corporation or its designee,
as applicable,  shall give the Trustee (and the Master  Servicer if EMC Mortgage
Corporation  or its  designee is  exercising  its option) not less than 60 days'
prior notice of the Distribution  Date on which (1) EMC Mortgage  Corporation or
its designee or the Master Servicer,  as applicable,  anticipates that the final
distribution will be made to  Certificateholders  as a result of the exercise by
the Holder of the Class SB Certificates or the Master  Servicer,  as applicable,
of its right to  purchase  the  Mortgage  Loans)  or (2) on which  EMC  Mortgage
Corporation or its designee or the Master Servicer,  as applicable,  anticipates
that the  Certificates  will be  purchased  as a result of the  exercise  by EMC
Mortgage Corporation or its designee or the Master Servicer,  as applicable,  to
purchase the outstanding Certificates. Notice of any termination, specifying the
anticipated Final  Distribution Date (which shall be a date that would otherwise
be a Distribution  Date) upon which the  Certificateholders  may surrender their
Certificates  to the Trustee (if so required by the terms hereof) for payment of
the  final  distribution  and  cancellation  or notice  of any  purchase  of the
outstanding  Certificates,  specifying  the  Distribution  Date  upon  which the
Holders may surrender their  Certificates  to the Trustee for payment,  shall be
given promptly by the Master Servicer (if it is exercising the right to purchase
the  Mortgage  Loans or to purchase  the  outstanding  Certificates),  or by the
Trustee (in any other case) by letter to the Certificateholders

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(with a copy to the Certificate  Registrar) mailed not earlier than the 15th day
and not later  than the 25th day of the month next  preceding  the month of such
final distribution specifying:

                  (i) the anticipated  Final  Distribution Date upon which final
payment of the  Certificates  is  anticipated to be made upon  presentation  and
surrender  of  Certificates  at the  office  or agency  of the  Trustee  therein
designated  where  required  pursuant to this  Agreement  or, in the case of the
purchase by EMC Mortgage Corporation or its designee or the Master Servicer,  as
applicable, of the outstanding Certificates, the Distribution Date on which such
purchase is made,

                  (ii) the amount of any such final  payment  or, in the case of
the purchase of the  outstanding  Certificates,  the purchase  price,  in either
case, if known, and

                  (iii)  that  the  Record  Date  otherwise  applicable  to such
Distribution  Date is not  applicable,  and that  payment will be made only upon
presentation  and surrender of the  Certificates  at the office or agency of the
Trustee therein specified.

      If the Master  Servicer  or the  Trustee is  obligated  to give  notice to
Certificateholders  as  required  above,  it  shall  give  such  notice  to  the
Certificate Registrar at the time such notice is given to Certificateholders. In
the event of a purchase of the Mortgage Loans by EMC Mortgage Corporation or its
designee or the Master Servicer, as applicable,  EMC Mortgage Corporation or its
designee or the Master Servicer, as applicable, shall deposit in the Certificate
Account before the Final  Distribution  Date in immediately  available  funds an
amount equal to the purchase  price computed as provided  above.  As a result of
the exercise by EMC Mortgage Corporation or its designee or the Master Servicer,
as  applicable,  of its right to  purchase  the  outstanding  Certificates,  EMC
Mortgage  Corporation  or its designee or the Master  Servicer,  as  applicable,
shall  deposit in an Eligible  Account,  established  by the Master  Servicer on
behalf of the Trustee and separate from the Certificate  Account, in the name of
the Trustee in trust for the registered holders of the Certificates,  before the
Distribution  Date on which such purchase is to occur, in immediately  available
funds,  an amount equal to the purchase price for the  Certificates  computed as
provided above,  and provide notice of such deposit to the Trustee.  The Trustee
shall  withdraw from such account the amount  specified in subsection  (c) below
and distribute such amount to the  Certificateholders as specified in subsection
(c) below. EMC Mortgage  Corporation or its designee or the Master Servicer,  as
applicable,  shall provide to the Trustee written  notification of any change to
the anticipated  Final  Distribution  Date as soon as practicable.  If the Trust
Fund is not  terminated on the  anticipated  Final  Distribution  Date,  for any
reason,  the  Trustee  shall  promptly  mail  notice  thereof  to each  affected
Certificateholder.

            (c) Upon  presentation  and surrender of the [Class A  Certificates,
Class M  Certificates,  Class B  Certificates]  and Class SB Certificates by the
Certificateholders    thereof,    the   Trustee   shall   distribute   to   such
Certificateholders  (i) the amount otherwise  distributable on such Distribution
Date, if not in connection with the Holder's of the Class SB Certificates or the
Master Servicer's,  as applicable,  election to repurchase the Mortgage Loans or
the  outstanding   [Class  A  Certificates,   Class  M  Certificates,   Class  B
Certificates] and Class SB Certificates,  or (ii) if EMC Mortgage Corporation or
its designee or the Master Servicer, as applicable, elected to so repurchase the
Mortgage Loans or the outstanding  [Class A Certificates,  Class M Certificates,
Class B Certificates]  and Class SB  Certificates,  an amount equal to the price
paid pursuant to

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Section 9.01(a) as follows:  first, with respect to any optional  termination by
EMC  Mortgage  Corporation  or its  designee,  payment of any accrued and unpaid
Servicing Fees and  reimbursement  for all  unreimbursed  Advances and Servicing
Advances,  in each case through the date of such  optional  termination,  to the
Master Servicer, second, with respect to the [Class A Certificates,  pari passu,
the outstanding  Certificate Principal Balance thereof, plus Accrued Certificate
Interest  thereon for the related  Interest  Accrual  Period and any  previously
unpaid  Accrued  Certificate  Interest,  third,  with  respect  to the Class M-1
Certificates,  the  outstanding  Certificate  Principal  Balance  thereof,  plus
Accrued Certificate Interest thereon for the related Interest Accrual Period and
any previously unpaid Accrued Certificate Interest,  fourth, with respect to the
Class M-2 Certificates,  the outstanding  Certificate Principal Balance thereof,
plus  Accrued  Certificate  Interest  thereon for the related  Interest  Accrual
Period and any  previously  unpaid Accrued  Certificate  Interest,  fifth,  with
respect to the Class M-3  Certificates,  the outstanding  Certificate  Principal
Balance  thereof,  plus  Accrued  Certificate  Interest  thereon for the related
Interest Accrual Period and any previously unpaid Accrued Certificate  Interest,
sixth, with respect to the Class M-4 Certificates,  the outstanding  Certificate
Principal  Balance thereof,  plus Accrued  Certificate  Interest thereon for the
related  Interest Accrual Period and any previously  unpaid Accrued  Certificate
Interest,  seventh, with respect to the Class M-5 Certificates,  the outstanding
Certificate Principal Balance thereof, plus Accrued Certificate Interest thereon
for the  related  Interest  Accrual  Period and any  previously  unpaid  Accrued
Certificate  Interest,  eighth, with respect to the Class M-6 Certificates,  the
outstanding  Certificate  Principal  Balance thereof,  plus Accrued  Certificate
Interest  thereon for the related  Interest  Accrual  Period and any  previously
unpaid  Accrued  Certificate  Interest,  ninth,  with  respect  to the Class M-7
Certificates,  the  outstanding  Certificate  Principal  Balance  thereof,  plus
Accrued Certificate Interest thereon for the related Interest Accrual Period and
any previously unpaid Accrued Certificate  Interest,  tenth, with respect to the
Class M-8 Certificates,  the outstanding  Certificate Principal Balance thereof,
plus  Accrued  Certificate  Interest  thereon for the related  Interest  Accrual
Period and any previously unpaid Accrued Certificate  Interest,  eleventh,  with
respect  to the Class B  Certificates,  the  outstanding  Certificate  Principal
Balance  thereof,  plus  Accrued  Certificate  Interest  thereon for the related
Interest Accrual Period and any previously unpaid Accrued Certificate  Interest,
twelfth,  to the Class A,  Class M and Class B  Certificates,  the amount of any
Prepayment Interest  Shortfalls  allocated thereto for such Distribution Date or
remaining unpaid from prior  Distribution  Dates and accrued interest thereon at
the  applicable  Pass-Through  Rate,  on a pro rata  basis  based on  Prepayment
Interest  Shortfalls  allocated  thereto for such Distribution Date or remaining
unpaid  from prior  Distribution  Dates,  thirteenth,  to the Swap  Counterparty
(without duplication of amounts payable to the Swap Counterparty on such date in
accordance with Section 4.02) any Swap  Termination  Payment payable to the Swap
Counterparty  then remaining unpaid or which is due to the exercise of any early
termination of the Trust Fund pursuant to this Section 9.01, and fourteenth,  to
the Class SB Certificates, all remaining amounts.]

            (d) In the event  that any  Certificateholders  shall not  surrender
their  Certificates  for final payment and  cancellation  on or before the Final
Distribution  Date,  the  Trustee  shall on such  date  cause  all  funds in the
Certificate Account not distributed in final distribution to  Certificateholders
to be withdrawn  therefrom and credited to the remaining  Certificateholders  by
depositing  such  funds in a separate  escrow  account  for the  benefit of such
Certificateholders,  and the  Master  Servicer  (if it  exercised  its  right to
purchase  the Mortgage  Loans) or the Trustee (in any other case),  shall give a
second written  notice to the remaining

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Certificateholders  to surrender their Certificates for cancellation and receive
the final  distribution  with  respect  thereto.  If within six months after the
second notice any Certificate  shall not have been surrendered for cancellation,
the Trustee shall take  appropriate  steps as directed by the Master Servicer to
contact  the  remaining   Certificateholders   concerning   surrender  of  their
Certificates.  The costs and expenses of  maintaining  the escrow account and of
contacting  Certificateholders  shall be paid out of the assets  which remain in
the  escrow  account.  If  within  nine  months  after  the  second  notice  any
Certificates shall not have been surrendered for cancellation, the Trustee shall
pay to the Master Servicer all amounts  distributable to the holders thereof and
the Master Servicer shall thereafter hold such amounts until distributed to such
Holders. No interest shall accrue or be payable to any  Certificateholder on any
amount held in the escrow account or by the Master  Servicer as a result of such
Certificateholder's  failure to surrender its  Certificate(s)  for final payment
thereof in accordance  with this Section 9.01 and the  Certificateholders  shall
look only to the Master Servicer for such payment.

            (e) If any Certificateholders do not surrender their Certificates on
or  before  the  Distribution  Date  on  which  a  purchase  of the  outstanding
Certificates  is to be made,  the Trustee  shall on such date cause all funds in
the Eligible Account established by the Master Servicer deposited therein by the
Master  Servicer  pursuant  to Section  9.01(b) to be  withdrawn  therefrom  and
deposited   in  a   separate   escrow   account   for   the   benefit   of  such
Certificateholders,  and the Master  Servicer shall give a second written notice
to such  Certificateholders  to surrender their  Certificates for payment of the
purchase  price  therefor.  If within  six months  after the  second  notice any
Certificate shall not have been surrendered for cancellation,  the Trustee shall
take appropriate steps as directed by the Master Servicer to contact the Holders
of such Certificates  concerning surrender of their Certificates.  The costs and
expenses of maintaining the escrow account and of contacting  Certificateholders
shall be paid out of the assets  which remain in the escrow  account.  If within
nine  months  after  the  second  notice  any  Certificates  shall not have been
surrendered  for  cancellation in accordance with this Section 9.01, the Trustee
shall pay to the  Master  Servicer  all  amounts  distributable  to the  Holders
thereof  and shall have no further  obligation  or  liability  therefor  and the
Master  Servicer shall  thereafter  hold such amounts until  distributed to such
Holders. No interest shall accrue or be payable to any  Certificateholder on any
amount held in the escrow account or by the Master  Servicer as a result of such
Certificateholder's  failure to  surrender  its  Certificate(s)  for  payment in
accordance  with this Section 9.01. Any  Certificate  that is not surrendered on
the Distribution  Date on which a purchase  pursuant to this Section 9.01 occurs
as  provided  above will be deemed to have been  purchased  and the Holder as of
such date will  have no  rights  with  respect  thereto  except to  receive  the
purchase price therefor minus any costs and expenses associated with such escrow
account and notices allocated  thereto.  Any Certificates so purchased or deemed
to have been  purchased  on such  Distribution  Date  shall  remain  outstanding
hereunder.  The Master  Servicer shall be for all purposes the Holder thereof as
of such date.

            (f) With respect to the first possible  Optional  Termination  Date,
EMC Mortgage  Corporation or its designee shall have the sole option to exercise
the purchase options  described in Section 9.01(a) and the Master Servicer shall
have no claim thereto. If EMC Mortgage Corporation or its designee elects not to
exercise one of its options to purchase pursuant to Section 9.01(a) with respect
to the first possible  Optional  Termination  Date, it shall lose such right and
have no claim to exercise  any  purchase  options  pursuant to this Section 9.01
thereafter.  Beginning with the second possible  Optional  Termination  Date and
thereafter,  the

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Master  Servicer  shall have the sole option to exercise  the  purchase  options
described in Section 9.01(a).

            (g) EMC Mortgage  Corporation,  if it is not the Master  Servicer or
any Subservicer,  or its designee,  as applicable,  shall be deemed to represent
that one of the  following  will be true and  correct:  (i) the  exercise of the
optional  termination  right set forth in  Section  9.01  shall not  result in a
non-exempt  prohibited  transaction  under ERISA or Section  4975 of the Code or
(ii) EMC Mortgage Corporation or such designee, as the case may be, is (A) not a
party in  interest  with  respect  to any Plan  and (B) is not a  "benefit  plan
investor" (other than a plan sponsored or maintained by EMC Mortgage Corporation
or the  designee,  as the case may be,  provided that no assets of such plan are
invested  or deemed to be invested  in the  Certificates).  If the holder of the
option is unable to exercise  such option by reason of the  preceding  sentence,
then the Master Servicer may exercise such option.

      Section 9.02. Additional Termination Requirements

            (a) [Any REMIC hereunder, as the case may be, shall be terminated in
accordance  with the  following  additional  requirements,  unless  (subject  to
Section  10.01(f)) the Trustee and the Master  Servicer have received an Opinion
of Counsel  (which Opinion of Counsel shall not be an expense of the Trustee) to
the effect that the failure of any REMIC  created  hereunder as the case may be,
to comply with the  requirements of this Section 9.02 will not (i) result in the
imposition on the Trust Fund of taxes on "prohibited transactions," as described
in Section 860F of the Code, or (ii) cause any REMIC  created  hereunder to fail
to qualify as a REMIC at any time that any Certificate is outstanding:

                  (i) The Master Servicer shall  establish a 90-day  liquidation
period for REMIC I, REMIC II or REMIC III, as applicable,  and any other related
terminating  REMICs,  and  specify  the first day of such  period in a statement
attached to REMIC I's, REMIC II's or REMIC III's,  as applicable,  and any other
related terminating  REMICs',  final Tax Return pursuant to Treasury Regulations
Section 1.860F-1. The Master Servicer also shall satisfy all of the requirements
of a qualified  liquidation  for REMIC I under  Section 860F of the Code and the
regulations thereunder;

                  (ii) The  Master  Servicer  shall  notify  the  Trustee at the
commencement of such 90-day  liquidation  period and, at or prior to the time of
making of the final  payment  on the  Certificates,  the  Trustee  shall sell or
otherwise  dispose of all of the remaining  assets of the liquidating  REMICs in
accordance with the terms hereof; and

                  (iii)  If the  Master  Servicer  is  exercising  its  right to
purchase the assets of the Trust Fund,  the Master  Servicer  shall,  during the
90-day  liquidation  period  and at or prior  to the  Final  Distribution  Date,
purchase all of the assets of the liquidating REMICs for cash.]

            (b) [Each Holder of a Certificate and the Trustee hereby irrevocably
approves  and appoints the Master  Servicer as its  attorney-in-fact  to adopt a
plan of complete liquidation for any REMIC hereunder at the expense of the Trust
Fund in accordance with the terms and conditions of this Agreement.]

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                                   ARTICLE X

                                REMIC PROVISIONS

      Section 10.01. REMIC Administration

            (a) [The REMIC  Administrator  shall make an  election  to treat all
REMICs  created  hereunder  as a REMIC under the Code and, if  necessary,  under
applicable  state  law.  Each such  election  will be made on Form 1066 or other
appropriate  federal  tax or  information  return  (including  Form 8811) or any
appropriate  state  return for the  taxable  year  ending on the last day of the
calendar  year in  which  the  Certificates  are  issued.  The  REMIC I  Regular
Interests  shall be  designated  as the  "regular  interests"  and the Class R-I
Certificates  shall be designated  as the sole Class of "residual  interests" in
the REMIC I. The REMIC II Regular  Interests shall be designated as the "regular
interests" and the Class R-II Certificates shall be designated as the sole Class
of "residual  interests" in the REMIC II. The REMIC III Regular  Interests shall
be designated as the "regular  interests" and the Class R-III Certificates shall
be  designated  as the sole Class of "residual  interests" in the REMIC III. The
REMIC  Administrator  and the  Trustee  shall not  permit  the  creation  of any
"interests"  (within the meaning of Section  860G of the Code) in REMIC I, REMIC
II or REMIC III other than the REMIC I Regular  Interests,  the REMIC II Regular
Interests, REMIC III Regular Interest IO and the Certificates.]

            (b) The Closing Date is hereby  designated  as the "startup  day" of
each of REMIC created hereunder within the meaning of Section  860G(a)(9) of the
Code (the "Startup Date").

            (c) [The REMIC  Administrator  shall hold a Class R  Certificate  in
each REMIC representing a 0.01% Percentage  Interest of the Class R Certificates
in each REMIC and shall be designated  as the "tax matters  person" with respect
to each of in the manner provided under Treasury regulations section 1.860F-4(d)
and Treasury regulations Section 301.6231(a)(7)-1.  The REMIC Administrator,  as
tax matters person,  shall (i) act on behalf of each of REMIC in relation to any
tax matter or controversy  involving the Trust Fund and (ii) represent the Trust
Fund in any administrative or judicial  proceeding relating to an examination or
audit by any  governmental  taxing  authority  with respect  thereto.  The legal
expenses,  including  without  limitation  attorneys' or accountants'  fees, and
costs of any such  proceeding  and any liability  resulting  therefrom  shall be
expenses  of the Trust Fund and the REMIC  Administrator  shall be  entitled  to
reimbursement  therefor out of amounts  attributable  to the  Mortgage  Loans on
deposit in the  Custodial  Account as provided by Section 3.10 unless such legal
expenses and costs are incurred by reason of the REMIC  Administrator's  willful
misfeasance,  bad faith or gross  negligence.  If the REMIC  Administrator is no
longer the Master Servicer hereunder,  at its option the REMIC Administrator may
continue  its  duties  as  REMIC  Administrator  and  shall  be paid  reasonable
compensation  not to exceed  $3,000 per year by any  successor  Master  Servicer
hereunder for so acting as the REMIC Administrator.]

            (d) The REMIC  Administrator  shall  prepare or cause to be prepared
all of the Tax Returns  that it  determines  are  required  with  respect to the
REMICs created  hereunder and deliver such Tax Returns in a timely manner to the
Trustee and the Trustee shall sign and file such Tax Returns in a timely manner.
The expenses of preparing such returns shall be borne by

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the REMIC Administrator without any right of reimbursement  therefor.  The REMIC
Administrator  agrees to indemnify and hold harmless the Trustee with respect to
any tax or  liability  arising  from the  Trustee's  signing of Tax Returns that
contain  errors or omissions.  The Trustee and Master  Servicer  shall  promptly
provide the REMIC Administrator with such information as the REMIC Administrator
may  from  time  to  time   request  for  the  purpose  of  enabling  the  REMIC
Administrator to prepare Tax Returns.

            (e) The REMIC Administrator shall provide (i) to any Transferor of a
Class R Certificate  such information as is necessary for the application of any
tax relating to the transfer of a Class R Certificate to any Person who is not a
Permitted  Transferee,  (ii) to the Trustee and the Trustee shall forward to the
Certificateholders  such  information  or reports as are required by the Code or
the REMIC  Provisions  including  reports  relating to interest,  original issue
discount,  if  any,  and  market  discount  or  premium  (using  the  Prepayment
Assumption) and (iii) to the Internal Revenue Service the name,  title,  address
and telephone number of the person who will serve as the  representative of each
REMIC created hereunder.

            (f) The Master Servicer and the REMIC  Administrator shall take such
actions and shall cause each REMIC created hereunder to take such actions as are
reasonably within the Master Servicer's or the REMIC Administrator's control and
the scope of its duties more specifically set forth herein as shall be necessary
or  desirable  to  maintain  the  status  thereof  as a REMIC  under  the  REMIC
Provisions  (and the  Trustee  shall  assist the Master  Servicer  and the REMIC
Administrator, to the extent reasonably requested by the Master Servicer and the
REMIC  Administrator to do so). In performing their duties as more  specifically
set forth  herein,  the Master  Servicer and the REMIC  Administrator  shall not
knowingly  or  intentionally  take any action,  cause the Trust Fund to take any
action  or fail to take (or fail to cause to be  taken)  any  action  reasonably
within their  respective  control and the scope of duties more  specifically set
forth herein,  that, under the REMIC  Provisions,  if taken or not taken, as the
case may be, could (i) endanger the status of any REMIC  created  hereunder as a
REMIC or (ii) result in the imposition of a tax upon any REMIC created hereunder
(including but not limited to the tax on prohibited  transactions  as defined in
Section  860F(a)(2) of the Code (except as provided in Section 2.04) and the tax
on  contributions  to a REMIC set forth in Section  860G(d) of the Code) (either
such  event,  in the  absence of an  Opinion  of Counsel or the  indemnification
referred  to in this  sentence,  an  "Adverse  REMIC  Event")  unless the Master
Servicer or the REMIC Administrator,  as applicable,  has received an Opinion of
Counsel  (at the  expense of the party  seeking to take such  action or, if such
party  fails  to pay  such  expense,  and  the  Master  Servicer  or  the  REMIC
Administrator, as applicable,  determines that taking such action is in the best
interest  of the Trust Fund and the  Certificateholders,  at the  expense of the
Trust  Fund,  but in no event at the expense of the Master  Servicer,  the REMIC
Administrator  or the Trustee) to the effect that the  contemplated  action will
not, with respect to the Trust Fund created hereunder,  endanger such status or,
unless the Master  Servicer or the REMIC  Administrator  or both, as applicable,
determine in its or their sole  discretion  to indemnify  the Trust Fund against
the imposition of such a tax,  result in the imposition of such a tax.  Wherever
in this Agreement a  contemplated  action may not be taken because the timing of
such action might result in the  imposition  of a tax on the Trust Fund,  or may
only be taken  pursuant  to an  Opinion of Counsel  that such  action  would not
impose a tax on the Trust Fund,  such action may  nonetheless  be taken provided
that the  indemnity  given in the  preceding  sentence with respect to any taxes
that  might be  imposed  on the  Trust  Fund has been  given  and that all other
preconditions  to the taking of such  action  have

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<PAGE>

been  satisfied.  The Trustee shall not take or fail to take any action (whether
or not  authorized  hereunder)  as to which  the  Master  Servicer  or the REMIC
Administrator,  as applicable, has advised it in writing that it has received an
Opinion of Counsel to the effect  that an Adverse  REMIC  Event could occur with
respect to such action or inaction,  as the case may be. In  addition,  prior to
taking any action with  respect to the Trust Fund or its assets,  or causing the
Trust Fund to take any action,  which is not expressly permitted under the terms
of this  Agreement,  the Trustee shall  consult with the Master  Servicer or the
REMIC Administrator, as applicable, or its designee, in writing, with respect to
whether such action could cause an Adverse  REMIC Event to occur with respect to
the Trust Fund and the Trustee shall not take any such action or cause the Trust
Fund to take any such  action  as to which  the  Master  Servicer  or the  REMIC
Administrator,  as  applicable,  has advised it in writing that an Adverse REMIC
Event  could  occur.  The  Master  Servicer  or  the  REMIC  Administrator,   as
applicable,  may consult with counsel to make such written advice,  and the cost
of same shall be borne by the party  seeking  to take the  action not  expressly
permitted  by this  Agreement,  but in no event  at the  expense  of the  Master
Servicer  or the REMIC  Administrator.  At all times as may be  required  by the
Code, the Master Servicer or the REMIC Administrator, as applicable, will to the
extent  within its  control and the scope of its duties  more  specifically  set
forth  herein,  maintain  substantially  all  of the  assets  of  the  REMIC  as
"qualified  mortgages"  as  defined  in  Section  860G(a)(3)  of  the  Code  and
"permitted investments" as defined in Section 860G(a)(5) of the Code.

            (g)  In  the  event  that  any  tax  is   imposed   on   "prohibited
transactions" of any REMIC created hereunder as defined in Section 860F(a)(2) of
the Code, on "net income from  foreclosure  property" of any REMIC as defined in
Section 860G(c) of the Code, on any contributions to any REMIC after the Startup
Date therefor  pursuant to Section 860G(d) of the Code, or any other tax imposed
by the Code or any  applicable  provisions of state or local tax laws,  such tax
shall be  charged  (i) to the  Master  Servicer,  if such tax  arises  out of or
results from a breach by the Master  Servicer in its role as Master  Servicer or
REMIC Administrator of any of its obligations under this Agreement or the Master
Servicer  has in its sole  discretion  determined  to  indemnify  the Trust Fund
against such tax, (ii) to the Trustee, if such tax arises out of or results from
a breach by the Trustee of any of its obligations under this Article X, or (iii)
otherwise  against  amounts on deposit in the  Custodial  Account as provided by
Section 3.10 and on the Distribution  Date(s)  following such  reimbursement the
aggregate  of  such  taxes  shall  be  allocated  in  reduction  of the  Accrued
Certificate  Interest  on each Class  entitled  thereto in the same manner as if
such taxes constituted a Prepayment Interest Shortfall.

            (h) The Trustee and the Master  Servicer  shall,  for federal income
tax  purposes,  maintain  books and  records  with  respect  to each  REMIC on a
calendar  year and on an accrual  basis or as  otherwise  may be required by the
REMIC Provisions.

            (i) Following the Startup Date,  neither the Master Servicer nor the
Trustee shall accept any contributions of assets to any REMIC unless (subject to
Section  10.01(f))  the Master  Servicer and the Trustee  shall have received an
Opinion  of  Counsel  (at  the  expense  of  the  party  seeking  to  make  such
contribution)  to the effect that the inclusion of such assets in any REMIC will
not cause any REMIC created  hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding or subject any such REMIC to any tax under
the REMIC Provisions or other applicable provisions of federal,  state and local
law or ordinances.

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<PAGE>

            (j) Neither the Master  Servicer nor the Trustee  shall  (subject to
Section  10.01(f))  enter  into any  arrangement  by  which  any  REMIC  created
hereunder will receive a fee or other  compensation  for services nor permit any
REMIC created  hereunder to receive any income from assets other than "qualified
mortgages"  as  defined  in  Section   860G(a)(3)  of  the  Code  or  "permitted
investments" as defined in Section 860G(a)(5) of the Code.

            (k)  Solely  for  purposes  of  Section  1.860G-1(a)(4)(iii)  of the
Treasury Regulations, the "latest possible maturity date" by which the principal
balance  of each  regular  interest  in each  REMIC  would be reduced to zero is
[________],  20[_],  which is the  Distribution  Date in the month following the
last scheduled payment on any Mortgage Loan.

            (l) Within 30 days after the Closing Date,  the REMIC  Administrator
shall prepare and file with the Internal Revenue Service Form 8811, "Information
Return for Real  Estate  Mortgage  Investment  Conduits  (REMIC)  and Issuers of
Collateralized Debt Obligations" for the Trust Fund.

            (m) Neither the Trustee nor the Master Servicer shall sell,  dispose
of or substitute  for any of the Mortgage  Loans (except in connection  with (i)
the default,  imminent default or foreclosure of a Mortgage Loan,  including but
not limited to, the acquisition or sale of a Mortgaged Property acquired by deed
in lieu of  foreclosure,  (ii) the  bankruptcy  of the  Trust  Fund,  (iii)  the
termination  of any REMIC  pursuant  to Article IX of this  Agreement  or (iv) a
purchase of Mortgage Loans  pursuant to Article II or III of this  Agreement) or
acquire  any assets for any REMIC or sell or dispose of any  investments  in the
Custodial   Account  or  the  Certificate   Account  for  gain,  or  accept  any
contributions  to any REMIC  after the Closing  Date  unless it has  received an
Opinion of Counsel that such sale, disposition, substitution or acquisition will
not (a) affect adversely the status of any REMIC created hereunder as a REMIC or
(b)  unless  the  Master  Servicer  has  determined  in its sole  discretion  to
indemnify  the Trust Fund against  such tax,  cause any REMIC to be subject to a
tax on  "prohibited  transactions"  or  "contributions"  pursuant  to the  REMIC
Provisions.

      Section  10.02.   Master  Servicer,   REMIC   Administrator   and  Trustee
Indemnification

            (a) The Trustee  agrees to indemnify the Trust Fund,  the Depositor,
the  REMIC  Administrator  and the  Master  Servicer  for any  taxes  and  costs
including,  without  limitation,  any  reasonable  attorneys  fees imposed on or
incurred by the Trust Fund, the Depositor or the Master Servicer, as a result of
a breach of the Trustee's covenants set forth in Article VIII or this Article X.
In the event that  Residential  Funding is no longer  the Master  Servicer,  the
Trustee shall indemnify  Residential  Funding for any taxes and costs including,
without  limitation,  any  reasonable  attorneys  fees imposed on or incurred by
Residential Funding as a result of a breach of the Trustee's covenants set forth
in Article VIII or this Article X.

            (b) The REMIC Administrator  agrees to indemnify the Trust Fund, the
Depositor,  the  Master  Servicer  and the  Trustee  for  any  taxes  and  costs
(including,  without limitation,  any reasonable  attorneys' fees) imposed on or
incurred by the Trust Fund, the Depositor,  the Master  Servicer or the Trustee,
as a result of a breach of the REMIC Administrator's covenants set forth in this
Article  X with  respect  to  compliance  with the REMIC

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Provisions,  including  without  limitation,  any  penalties  arising  from  the
Trustee's  execution  of Tax Returns  prepared by the REMIC  Administrator  that
contain errors or omissions;  provided, however, that such liability will not be
imposed  to the  extent  such  breach  is a result  of an error or  omission  in
information  provided to the REMIC Administrator by the Master Servicer in which
case Section 10.02(c) will apply.

            (c) The Master  Servicer  agrees to  indemnify  the Trust Fund,  the
Depositor,  the  REMIC  Administrator  and the  Trustee  for any taxes and costs
(including,  without limitation,  any reasonable  attorneys' fees) imposed on or
incurred  by the Trust  Fund,  the  Depositor,  the REMIC  Administrator  or the
Trustee, as a result of a breach of the Master Servicer's covenants set forth in
this  Article X or in  Article  III with  respect to  compliance  with the REMIC
Provisions,  including  without  limitation,  any  penalties  arising  from  the
Trustee's  execution of Tax Returns prepared by the Master Servicer that contain
errors or omissions.

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

      Section 11.01. Amendment

            (a) This  Agreement or any  Custodial  Agreement may be amended from
time to time by the Depositor,  the Master Servicer and the Trustee, without the
consent of any of the Certificateholders:

                  (i) to cure any ambiguity,

                  (ii)  to  correct  or  supplement  any  provisions  herein  or
therein,  which may be inconsistent  with any other provisions herein or therein
or to correct any error,

                  (iii) to modify,  eliminate or add to any of its provisions to
such extent as shall be necessary or desirable to maintain the  qualification of
any REMIC  created  hereunder  as a REMIC at all times that any  Certificate  is
outstanding or to avoid or minimize the risk of the imposition of any tax on the
Trust Fund  pursuant  to the Code that would be a claim  against the Trust Fund,
provided  that the Trustee has received an Opinion of Counsel to the effect that
(A) such action is necessary or desirable to maintain such  qualification  or to
avoid or minimize the risk of the imposition of any such tax and (B) such action
will  not  adversely  affect  in  any  material  respect  the  interests  of any
Certificateholder,

                  (iv) to change the timing  and/or  nature of deposits into the
Custodial Account or the Certificate  Account or to change the name in which the
Custodial  Account is  maintained,  provided  that (A) the  Certificate  Account
Deposit Date shall in no event be later than the related  Distribution Date, (B)
such change shall not, as evidenced by an Opinion of Counsel,  adversely  affect
in any  material  respect the  interests of any  Certificateholder  and (C) such
change  shall not result in a reduction  of the rating  assigned to any Class of
Certificates  below the lower of the then-current  rating or the rating assigned
to such  Certificates as of the Closing Date, as evidenced by a letter from each
Rating Agency to such effect,

                  (v) to modify,  eliminate or add to the  provisions of Section
5.02(f)  or any  other  provision  hereof  restricting  transfer  of the Class R
Certificates by virtue of their being the "residual interests" in the Trust Fund
provided  that (A) such  change  shall not  result in  reduction  of the  rating
assigned to any such Class of Certificates  below the lower of the  then-current
rating or the rating  assigned to such  Certificates  as of the Closing Date, as
evidenced  by a letter  from each  Rating  Agency to such  effect,  and (B) such
change  shall not (subject to Section  10.01(f)),  as evidenced by an Opinion of
Counsel (at the expense of the party seeking so to modify, eliminate or add such
provisions),  cause the Trust Fund or any of the Certificateholders  (other than
the  transferor) to be subject to a federal tax caused by a transfer to a Person
that is not a Permitted Transferee, or

                  (vi) to make any other  provisions  with respect to matters or
questions  arising under this Agreement or such Custodial  Agreement which shall
not be materially  inconsistent with the provisions of this Agreement,  provided
that such action  shall not, as

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evidenced by an Opinion of Counsel, adversely affect in any material respect the
interests of any  Certificateholder and is authorized or permitted under Section
11.01.

            (b) This  Agreement or any  Custodial  Agreement may also be amended
from time to time by the  Depositor,  the Master  Servicer,  the Trustee and the
Holders of  Certificates  evidencing  in the  aggregate not less than 66% of the
Percentage Interests of each Class of Certificates with a Certificate  Principal
Balance  greater  than zero  affected  thereby  for the  purpose  of adding  any
provisions to or changing in any manner or eliminating  any of the provisions of
this  Agreement  or such  Custodial  Agreement or of modifying in any manner the
rights of the Holders of Certificates of such Class; provided,  however, that no
such amendment shall:

                  (i)  reduce in any  manner  the amount of, or delay the timing
of, payments which are required to be distributed on any Certificate without the
consent of the Holder of such Certificate, or

                  (ii) adversely  affect in any material respect the interest of
the Holders of  Certificates of any Class in a manner other than as described in
clause (i) hereof without the consent of Holders of  Certificates  of such Class
evidencing,  as to such Class,  Percentage  Interests  aggregating not less than
66%, or

                  (iii) reduce the aforesaid  percentage of  Certificates of any
Class the Holders of which are required to consent to any such amendment, in any
such case without the consent of the Holders of all  Certificates  of such Class
then outstanding.

            (c)  Notwithstanding  any contrary provision of this Agreement,  the
Trustee  shall not consent to any  amendment to this  Agreement  unless it shall
have first  received an Opinion of Counsel (at the expense of the party  seeking
such  amendment) to the effect that such  amendment or the exercise of any power
granted to the Master Servicer,  the Depositor or the Trustee in accordance with
such  amendment  will not result in the imposition of a federal tax on the Trust
Fund or cause any REMIC hereunder to fail to qualify as a REMIC at any time that
any Certificate is  outstanding;  provided,  that if the indemnity  described in
Section  10.01(f)  with  respect to any taxes that might be imposed on the Trust
Fund has been  given,  the Trustee  shall not require the  delivery to it of the
Opinion of Counsel described in this Section 11.01(c). The Trustee may but shall
not be  obligated  to enter into any  amendment  pursuant to this  Section  that
affects its rights,  duties and  immunities  and this  Agreement  or  otherwise;
provided, however, such consent shall not be unreasonably withheld.

            (d) Promptly  after the execution of any such  amendment the Trustee
shall furnish  written  notification  of the substance of such amendment to each
Certificateholder.   It   shall   not  be   necessary   for   the   consent   of
Certificateholders  under this Section 11.01 to approve the  particular  form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance  thereof.  The manner of obtaining such consents and of evidencing
the  authorization  of the  execution  thereof  by  Certificateholders  shall be
subject to such reasonable regulations as the Trustee may prescribe.

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            (e) The Depositor shall have the option, in its sole discretion,  to
obtain and deliver to the Trustee any corporate  guaranty,  payment  obligation,
irrevocable  letter  of  credit,   surety  bond,  insurance  policy  or  similar
instrument or a reserve  fund,  or any  combination  of the  foregoing,  for the
purpose of protecting the Holders of the Class R Certificates against any or all
Realized Losses or other  shortfalls.  Any such instrument or fund shall be held
by the Trustee for the benefit of the Class R Certificateholders,  but shall not
be and shall not be deemed to be under any circumstances  included in any REMIC.
To the extent that any such  instrument  or fund  constitutes a reserve fund for
federal  income tax purposes,  (i) any reserve fund so  established  shall be an
outside reserve fund and not an asset of such REMIC,  (ii) any such reserve fund
shall be owned by the Depositor,  and (iii) amounts transferred by such REMIC to
any such reserve fund shall be treated as amounts  distributed  by such REMIC to
the Depositor or any successor,  all within the meaning of Treasury  regulations
Section  1.860G-2(h)  in effect as of the Cut-off Date.  In connection  with the
provision of any such  instrument  or fund,  this  Agreement  and any  provision
hereof may be modified,  added to,  deleted or  otherwise  amended in any manner
that is related or incidental to such instrument or fund or the establishment or
administration thereof, such amendment to be made by written instrument executed
or  consented  to by the  Depositor  and such  related  insurer  but without the
consent of any  Certificateholder and without the consent of the Master Servicer
or the  Trustee  being  required  unless  any such  amendment  would  impose any
additional  obligation  on, or otherwise  adversely  affect the interests of the
Certificateholders,  the Master Servicer or the Trustee, as applicable; provided
that the Depositor  obtains an Opinion of Counsel  (which need not be an opinion
of Independent counsel) to the effect that any such amendment will not cause (a)
any federal tax to be imposed on the Trust Fund,  including without  limitation,
any federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of
the Code or on "contributions  after the startup date" under Section  860G(d)(1)
of the Code and (b) any REMIC created hereunder to fail to qualify as a REMIC at
any time that any Certificate is outstanding.

            (f)  Notwithstanding  anything to the contrary set forth in Sections
11.01 (b), (c), (d), and (e), any amendment of Sections  4.02(c)(x)  and 4.08 of
this  Agreement  shall  require  the  consent  of  the  Swap  Counterparty  as a
third-party beneficiary of Sections 4.02(c)(x) and 4.08 of this Agreement.

      Section 11.02. Recordation of Agreement; Counterparts

            (a) To the extent  permitted by applicable  law,  this  Agreement is
subject to  recordation  in all  appropriate  public  offices for real  property
records in all the counties or other  comparable  jurisdictions  in which any or
all of the  properties  subject to the Mortgages are situated,  and in any other
appropriate  public  recording  office  or  elsewhere,  such  recordation  to be
effected by the Master  Servicer  and at its expense on direction by the Trustee
(pursuant to the request of the Holders of Certificates entitled to at least 25%
of the Voting  Rights),  but only upon  direction  accompanied  by an Opinion of
Counsel to the effect that such recordation  materially and beneficially affects
the interests of the Certificateholders.

            (b)  For  the  purpose  of  facilitating  the  recordation  of  this
Agreement  as herein  provided and for other  purposes,  this  Agreement  may be
executed   simultaneously   in  any  number  of  counterparts,   each  of  which
counterparts  shall be deemed to be an  original,  and such  counterparts  shall
constitute but one and the same instrument.

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      Section 11.03. Limitation on Rights of Certificateholders

            (a) The  death or  incapacity  of any  Certificateholder  shall  not
operate  to  terminate  this  Agreement  or the Trust  Fund,  nor  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 the
Trust Fund, nor otherwise affect the rights,  obligations and liabilities of any
of the parties hereto.

            (b) No  Certificateholder  shall  have any right to vote  (except as
expressly  provided herein) or in any manner otherwise control the operation and
management  of the Trust Fund, or the  obligations  of the parties  hereto,  nor
shall anything herein set forth, or contained in the terms of the  Certificates,
be construed so as to  constitute  the  Certificateholders  from time to time as
partners or members of an association;  nor shall any Certificateholder be under
any  liability  to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

            (c) No  Certificateholder  shall  have any  right by  virtue  of any
provision of this  Agreement  to institute  any suit,  action or  proceeding  in
equity or at law upon or under or with  respect to this  Agreement,  unless such
Holder  previously  shall have given to the Trustee a written  notice of default
and of the continuance  thereof, as hereinbefore  provided,  and unless also the
Holders of Certificates  of any Class  evidencing in the aggregate not less than
25% of the related  Percentage  Interests of such Class, shall have made written
request upon the Trustee to institute such action, suit or proceeding in its own
name as Trustee  hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require  against the costs,  expenses and  liabilities to be
incurred  therein or  thereby,  and the  Trustee  shall  have given its  written
consent and the Trustee,  for 60 days after its receipt of such notice,  request
and offer of  indemnity,  shall have  neglected or refused to institute any such
action, suit or proceeding it being understood and intended, and being expressly
covenanted by each Certificateholder with every other  Certificateholder and the
Trustee, that no one or more Holders of Certificates of any Class shall have any
right in any manner  whatever by virtue of any  provision  of this  Agreement to
affect,  disturb or  prejudice  the  rights of the  Holders of any other of such
Certificates  of such Class or any other  Class,  or to obtain or seek to obtain
priority over or  preference  to any other such Holder,  or to enforce any right
under this  Agreement,  except in the manner herein  provided and for the common
benefit of  Certificateholders of such Class or all Classes, as the case may be.
For the protection and enforcement of the provisions of this Section 11.03, each
and every  Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

      Section 11.04. Governing Law

      This agreement and the Certificates  shall be governed by and construed in
accordance  with the laws of the State of New York and the  obligations,  rights
and remedies of the parties  hereunder  shall be determined  in accordance  with
such laws.

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<PAGE>

      Section 11.05. Notices

      All demands and notices  hereunder shall be in writing and shall be deemed
to have been duly given if personally delivered at or mailed by registered mail,
postage prepaid (except for notices to the Trustee which shall be deemed to have
been duly given only when received),  to (a) in the case of the Depositor,  8400
Normandale Lake Boulevard,  Suite 250, Minneapolis,  Minnesota 55437, Attention:
President  (RAMP),  or such other  address as may  hereafter be furnished to the
Master Servicer and the Trustee in writing by the Depositor;  (b) in the case of
the Master Servicer, 2255 North Ontario Street, Burbank,  California 91504-3120,
Attention:  Bond  Administration  or  such  other  address  as may be  hereafter
furnished to the  Depositor  and the Trustee by the Master  Servicer in writing;
(c) in the case of the Trustee, the Corporate Trust Office or such other address
as may  hereafter  be  furnished  to the  Depositor  and the Master  Servicer in
writing by the Trustee;  (d) in the case of [Standard & Poor's, 55 Water Street,
41st Floor,  New York, New York 10041 Attention:  Mortgage  Surveillance or such
other address as may be hereafter furnished to the Depositor, Trustee and Master
Servicer by Standard & Poor's];  (e) in the case of [Moody's,  99 Church Street,
New York, New York 10007,  Attention:  ABS Monitoring Department,  or such other
address as may be  hereafter  furnished  to the  Depositor,  the Trustee and the
Master  Servicer  in  writing  by  Moody's];  and (f) [in the  case of the  Swap
Counterparty,  Hedge  Agreement  Provider,  [_________________],  or such  other
address as may be  hereafter  furnished  to the  Depositor,  the Trustee and the
Master  Servicer in writing by the Swap  Counterparty].  Any notice  required or
permitted  to be mailed  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  Agreement
shall be  conclusively  presumed  to have been duly  given,  whether  or not the
Certificateholder receives such notice.

      Section 11.06. Notices to Rating Agencies

      The Depositor,  the Master  Servicer or the Trustee,  as  applicable,  (a)
shall  notify  each  Rating  Agency  at such  time as it is  otherwise  required
pursuant to this Agreement to give notice of the occurrence of any of the events
described in clause (i), (ii), (iii),  (iv), (vii),  (viii),  (ix) or (x) below,
(b)  shall  notify  the  Subservicer  at such time as it is  otherwise  required
pursuant to this Agreement to give notice of the occurrence of any of the events
described in clause (i), (ii), (iii)(1),  (vii)(1) or (ix) below, or (c) provide
a copy to each Rating Agency at such time as otherwise  required to be delivered
pursuant to this Agreement of any of the statements described in clauses (v) and
(vi) below:

                  (i) a material change or amendment to this Agreement,

                  (ii) the occurrence of an Event of Default,

                  (iii) (1) the termination or appointment of a successor Master
Servicer or (2) the  termination  or  appointment  of a  successor  Trustee or a
change in the majority ownership of the Trustee,

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<PAGE>

                  (iv) the  filing of any  claim  under  the  Master  Servicer's
blanket fidelity bond and the errors and omissions  insurance policy required by
Section 3.12 or the  cancellation  or  modification  of coverage  under any such
instrument,

                  (v) the  statement  required to be delivered to the Holders of
each Class of Certificates pursuant to Section 4.03,

                  (vi) the  statements  required  to be  delivered  pursuant  to
Sections 3.18 and 3.19,

                  (vii) (1) a change in the location of the Custodial Account or
(2) a change in the location of the Certificate Account,

                  (viii) the  occurrence  of any monthly cash flow  shortfall to
the  Holders  of any Class of  Certificates  resulting  from the  failure by the
Master Servicer to make an Advance pursuant to Section 4.04,

                  (ix) the occurrence of the Final Distribution Date, and

                  (x) the repurchase of or substitution for any Mortgage Loan,

provided,  however,  that with respect to notice of the occurrence of the events
described in clauses (iv),  (vii) or (viii)  above,  the Master  Servicer  shall
provide  prompt  written  notice to each Rating Agency and the  Subservicer,  if
applicable, of any such event known to the Master Servicer.

      Section 11.07. Severability of Provisions

      If any one or more of the  covenants,  agreements,  provisions or terms of
this  Agreement  shall be for any  reason  whatsoever  held  invalid,  then such
covenants,  agreements,  provisions or terms shall be deemed  severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or  enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

      Section 11.08. Supplemental Provisions for Resecuritization

            (a) This Agreement may be supplemented by means of the addition of a
separate  Article  hereto  (a   "Supplemental   Article")  for  the  purpose  of
resecuritizing  any of the Certificates  issued  hereunder,  under the following
circumstances.  With  respect  to any Class or Classes  of  Certificates  issued
hereunder, or any portion of any such Class, as to which the Depositor or any of
its  Affiliates  (or  any  designee  thereof)  is  the  registered  Holder  (the
"Resecuritized  Certificates"),  the  Depositor  may deposit such  Resecuritized
Certificates  into a new  REMIC,  grantor  trust  or  custodial  arrangement  (a
"Restructuring  Vehicle") to be held by the Trustee  pursuant to a  Supplemental
Article.  The instrument adopting such Supplemental Article shall be executed by
the Depositor,  the Master Servicer and the Trustee;  provided, that neither the
Master  Servicer nor the Trustee shall withhold  their consent  thereto if their
respective  interests would not be materially adversely affected thereby. To the
extent that the terms of the  Supplemental  Article do not in any way affect any
provisions  of this  Agreement as to any of the

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Certificates  initially  issued  hereunder,  the  adoption  of the  Supplemental
Article shall not constitute an "amendment" of this Agreement.

            (b)  Each  Supplemental   Article  shall  set  forth  all  necessary
provisions  relating to the  holding of the  Resecuritized  Certificates  by the
Trustee, the establishment of the Restructuring  Vehicle, the issuing of various
classes of new certificates by the  Restructuring  Vehicle and the distributions
to be made thereon,  and any other provisions necessary to the purposes thereof.
In connection with each Supplemental Article, the Depositor shall deliver to the
Trustee an Opinion of Counsel to the effect that (i) the  Restructuring  Vehicle
will qualify as a REMIC,  grantor  trust or other entity not subject to taxation
for  federal  income tax  purposes  and (ii) the  adoption  of the  Supplemental
Article will not endanger the status of any REMIC  created  hereunder as a REMIC
or result in the  imposition  of a tax upon the Trust  Fund  (including  but not
limited to the tax on prohibited transaction as defined in Section 860F(a)(2) of
the Code and the tax on contributions to a REMIC as set forth in Section 860G(d)
of the Code.

      Section 11.09. Intended Third Party Beneficiary

      The Swap  Counterparty is an express  third-party  beneficiary of Sections
4.02(c)(x) and 4.08 of this  Agreement,  and shall have the right to enforce the
provisions of Sections 4.02(c)(x) and 4.08 of this Agreement.

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                                  ARTICLE XII

                         COMPLIANCE WITH REGULATION AB

      Section 12.01. Intent of the Parties; Reasonableness.

      The Depositor,  the Trustee and the Master Servicer  acknowledge and agree
that  the  purpose  of  this  Article  XII is to  facilitate  compliance  by the
Depositor with the provisions of Regulation AB and related rules and regulations
of the  Commission.  The  Depositor  shall not  exercise  its  right to  request
delivery of information or other  performance  under these provisions other than
in good faith,  or for purposes other than  compliance  with the Securities Act,
the  Exchange  Act and the rules and  regulations  of the  Commission  under the
Securities Act and the Exchange Act. Each of the Master Servicer and the Trustee
acknowledges  that  interpretations  of the  requirements  of  Regulation AB may
change  over  time,  whether  due  to  interpretive  guidance  provided  by  the
Commission or its staff,  consensus among  participants  in the  mortgage-backed
securities markets,  advice of counsel, or otherwise,  and agrees to comply with
requests made by the Depositor in good faith for delivery of  information  under
these provisions on the basis of evolving interpretations of Regulation AB. Each
of the Master  Servicer and the Trustee shall cooperate fully with the Depositor
to deliver to the Depositor  (including any of its assignees or designees),  any
and all statements, reports,  certifications,  records and any other information
necessary  in the good  faith  determination  of the  Depositor  to  permit  the
Depositor or such  Depositor to comply with the  provisions  of  Regulation  AB,
together with such disclosures relating to the Master Servicer,  the Trustee and
the Mortgage Loans, or the servicing of the Mortgage Loans,  reasonably believed
by the Depositor to be necessary in order to effect such compliance.

      Section 12.02. Additional Representations and Warranties of the Trustee.

      (a) The Trustee  shall be deemed to represent  to the  Depositor as of the
date on which information is first provided to the Depositor under Section 12.03
that, except as disclosed in writing to the Depositor prior to such date: (i) it
is not aware and has not received notice that any default, early amortization or
other performance  triggering event has occurred as to any other  Securitization
Transaction  due to any act or  failure to act of the  Trustee;  (ii) it has not
been terminated as trustee in a  securitization  of mortgage loans;  (iii) there
are no aspects of its  financial  condition  that could have a material  adverse
effect on the performance by it of its trustee  obligations under this Agreement
or any other  Securitization  Transaction;  (iv) there are no material  legal or
governmental  proceedings pending (or known to be contemplated)  against it; and
(v) there are no  affiliations,  relationships  or transactions  relating to the
Trustee with respect to the Depositor or any sponsor,  issuing entity, servicer,
trustee,  originator,  significant  obligor,  enhancement or support provider or
other  material  transaction  party (as such  terms are used in  Regulation  AB)
relating to the Securitization  Transaction contemplated by the Agreement (each,
a "Transaction Party").

      (b) If so requested by the  Depositor  on any date  following  the date on
which  information is first provided to the Depositor  under Section 12.03,  the
Trustee  shall,  within five Business Days  following  such request,  confirm in
writing  the  accuracy  of the  representations  and  warranties  set  forth  in
paragraph (a) of this Section or, if any such representation and warranty is

                                      156
<PAGE>

not  accurate  as of the  date of such  request  or such  confirmation,  provide
reasonably  adequate  disclosure  of the  pertinent  facts,  in writing,  to the
requesting party.

      Section 12.03. Information to Be Provided by the Trustee.

      (c) If so requested by the  Depositor  for the purpose of  satisfying  its
reporting  obligation  under  the  Exchange  Act with  respect  to any  class of
Certificates,  the Trustee  shall (i) notify the Depositor in writing of (A) any
material litigation or governmental  proceedings pending against the Trustee and
(B) any  affiliations or relationships  that develop  following the Closing Date
between the Trustee and any Transaction Party, and (ii) provide to the Depositor
a written description of such proceedings, affiliations or relationships.

      (d) In addition to such information as the Trustee is obligated to provide
pursuant  to  other  provisions  of  this  Agreement,  if so  requested  by  the
Depositor,  the Trustee shall provide such information  reasonably  available to
the Trustee  regarding the  performance or servicing of the Mortgage Loans as is
reasonably  required  to  facilitate  preparation  of  distribution  reports  in
accordance with Item 1121 of Regulation AB.

      Section 12.04. Report on Assessment of Compliance and Attestation.

      On or before March 15 of each calendar year, the Trustee shall:

      (e) deliver to the  Depositor a report (in form and  substance  reasonably
satisfactory to the Depositor)  regarding the Trustee's assessment of compliance
with the Servicing  Criteria during the immediately  preceding calendar year, as
required  under  Rules  13a-18 and 15d-18 of the  Exchange  Act and Item 1122 of
Regulation  AB. Such report shall be addressed to the Depositor and signed by an
authorized  officer of the  Trustee,  and shall  address  each of the  Servicing
Criteria  specified on a  certification  substantially  in the form of Exhibit S
hereto; and

      (f) deliver to the  Depositor a report of a registered  public  accounting
firm reasonably acceptable to the Depositor that attests to, and reports on, the
assessment  of  compliance  made by the  Trustee and  delivered  pursuant to the
preceding  paragraph.  Such  attestation  shall  be  in  accordance  with  Rules
1-02(a)(3)  and  2-02(g)  of  Regulation  S-X under the  Securities  Act and the
Exchange Act.

      Section 12.05. Indemnification; Remedies.

      (g) The Trustee  shall  indemnify  the  Depositor,  each  affiliate of the
Depositor,  the Master  Servicer and each broker dealer  acting as  underwriter,
placement  agent or initial  purchaser  of the  Certificates  or each Person who
controls any of such parties (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act);  and the respective  present and former
directors,  officers,  employees and agents of each of the foregoing,  and shall
hold each of them  harmless  from and against any  losses,  damages,  penalties,
fines,  forfeitures,  legal fees and expenses and related costs, judgments,  and
any other costs,  fees and expenses that any of them may sustain  arising out of
or based upon:

                                      157
<PAGE>

            (i) (A) any untrue statement of a material fact contained or alleged
to be contained in any information,  report, certification,  accountants' letter
or other material provided under this Article XII by or on behalf of the Trustee
(collectively,  the  "Trustee  Information"),  or (B) the  omission  or  alleged
omission  to state in the Trustee  Information  a material  fact  required to be
stated in the Trustee  Information  or necessary in order to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading; provided, by way of clarification, that clause (B) of this paragraph
shall be construed solely by reference to the Trustee Information and not to any
other  information  communicated  in  connection  with a  sale  or  purchase  of
securities,  without  regard to whether the Trustee  Information  or any portion
thereof is presented together with or separately from such other information;

            (ii) any failure by the Trustee to deliver any information,  report,
certification,  accountants' letter or other material when and as required under
this Article XII; or

            (iii) any breach by the Trustee of a representation  or warranty set
forth  in  Section  12.02(a)  or in a  writing  furnished  pursuant  to  Section
12.02(b).

      (h) In the case of any failure of performance  described in clause (ii) of
this Section,  the Trustee shall promptly  reimburse the Depositor for all costs
reasonably  incurred  by each  such  party in order to obtain  the  information,
report,  certification,  accountants'  letter or other material not delivered as
required by the Trustee.

                            [Signature Page Follows]

                                      158
<PAGE>

      IN WITNESS  WHEREOF,  the Depositor,  the Master  Servicer and the Trustee
have  caused  their  names to be  signed  hereto  by their  respective  officers
thereunto  duly  authorized and their  respective  seals,  duly attested,  to be
hereunto affixed, all as of the date and year first above written.

                                                RESIDENTIAL ASSET MORTGAGE
                                                PRODUCTS, INC.

                                                By:    _________________________
                                                Name:
                                                Title: Vice President

                                                RESIDENTIAL FUNDING COMPANY, LLC

                                                By:    _________________________
                                                Name:
                                                Title:

                                                [_______________________],
                                                 as Trustee

                                                By:    _________________________
                                                Name:
                                                Title:

                                      159
<PAGE>

STATE OF MINNESOTA       )
                         ) ss.:
COUNTY OF HENNEPIN       )

      On the ___ day of [___________],  20[_], before me, a notary public in and
for said State, personally appeared  _______________,  known to me to be a [Vice
President] of Residential Asset Mortgage Products, Inc., one of the corporations
that executed the within  instrument,  and also known to me to be the person who
executed  it on behalf of said  corporation,  and  acknowledged  to me that such
corporation executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                                       _________________________
                                                       Notary Public

[Notarial Seal]

<PAGE>

STATE OF MINNESOTA       )
                         ) ss.:
COUNTY OF HENNEPIN       )

      On the ___ day of [___________],  20[_], before me, a notary public in and
for said State, personally appeared ____________,  known to me to be a [Managing
Director] of Residential  Funding Company,  LLC, the Delaware limited  liability
company  that  executed  the within  instrument,  and also known to me to be the
person  who  executed  it on  behalf  of said  limited  liability  company,  and
acknowledged  to me that such  limited  liability  company  executed  the within
instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                                       _________________________
                                                       Notary Public

[Notarial Seal]

<PAGE>

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

      On the ___ day of December,  2005,  before me, a notary  public in and for
said State,  personally appeared  ______________,  known to me to be a Assistant
Vice  President of  [_________________],  a  [______________]  that executed the
within  instrument,  and also known to me to be the person  who  executed  it on
behalf of said banking  corporation,  and  acknowledged  to me that such banking
corporation executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                                       _________________________
                                                       Notary Public

[Notarial Seal]

<PAGE>

                                                                       EXHIBIT A

                         FORM OF CLASS A-[ ] CERTIFICATE

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 [COUPLED WITH THE RIGHT TO RECEIVE  PAYMENTS UNDER THE SWAP
AGREEMENT].

      THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
FOLLOWING THE INITIAL ISSUANCE OF THE  CERTIFICATES,  THE CERTIFICATE  PRINCIPAL
BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW.
ANYONE  ACQUIRING  THIS  CERTIFICATE  MAY  ASCERTAIN ITS  CERTIFICATE  PRINCIPAL
BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

      UNLESS THIS  CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF
THE  DEPOSITORY  TRUST  COMPANY TO THE ISSUER OR ITS AGENT FOR  REGISTRATION  OF
TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME  OF  CEDE  &  CO.  OR  SUCH  OTHER  NAME  AS  REQUESTED  BY  AN  AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO.,  ANY  TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL  SINCE THE  REGISTERED  OWNER HEREOF,  CEDE & CO., HAS AN
INTEREST HEREIN.

      NO TRANSFER OF THIS  CERTIFICATE OR ANY INTEREST  THEREIN SHALL BE MADE TO
ANY EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED
TRANSACTION  PROVISIONS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN
INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT,  AN INVESTMENT MANAGER, A NAMED
FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING "PLAN  ASSETS" OF ANY SUCH
PLAN TO EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A "PLAN INVESTOR").

                                      A-1
<PAGE>

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(e) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

                                      A-2
<PAGE>

CUSIP:  [______]                        Certificate No. [_]

Date of Pooling and Servicing           [Adjustable Pass-Through Rate]
Agreement and Cut-off Date:
[________] 1, 20[_]

First Distribution Date:                Percentage Interest: [_]%
[_________], 20[_]

Master Servicer:                        Aggregate Initial Certificate Principal
Residential Funding Company, LLC        Balance of the Class A-[_] Certificates:
                                        $_________

Final Scheduled Distribution Date:      Initial Certificate Principal Balance of
[___________], 20[_]                    this Class A-[_] Certificate:
                                        $_________

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES

                               SERIES 20[_]-RZ[_]

         evidencing  a  percentage   interest  in  the   distributions
         allocable to the Class A-[_]  Certificates  with respect to a
         Trust  Fund  consisting  primarily  of  a  pool  of  one-  to
         four-family  fixed and adjustable  interest rate,  first lien
         mortgage loans sold by RESIDENTIAL  ASSET MORTGAGE  PRODUCTS,
         INC.

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in  Residential  Asset  Mortgage
Products,   Inc.,  the  Master  Servicer,  the  Trustee  referred  to  below  or
[_______________]  or any of their affiliates.  Neither this Certificate nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or instrumentality  or by Residential Asset Mortgage Products,  Inc., the Master
Servicer,  the Trustee or [_______________] or any of their affiliates.  None of
the Depositor, the Master Servicer, [_______________] or any of their affiliates
will have any obligation  with respect to any  certificate  or other  obligation
secured by or payable from payments on the Certificates.

      This  certifies  that  [____________]  is  the  registered  owner  of  the
Percentage  Interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance of this  Certificate  by the  aggregate
Initial Certificate  Principal Balance of all Class A-[_] Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting  primarily of an interest in a pool of one- to four-family  fixed and
adjustable interest rate, first lien mortgage loans (the "Mortgage Loans"), sold
by  Residential  Asset  Mortgage   Products,   Inc.   (hereinafter   called  the
"Depositor,"  which term  includes  any  successor  entity  under the  Agreement
referred  to  below).  The Trust  Fund was  created  pursuant  to a Pooling  and
Servicing  Agreement  dated as  specified  above  (the  "Agreement")  among  the
Depositor, the

                                      A-3
<PAGE>

Master Servicer and [_______________],  as trustee (the "Trustee"), a summary of
certain of the  pertinent  provisions  of which is set forth  hereafter.  To the
extent not defined herein,  the capitalized  terms used herein have the meanings
assigned in the  Agreement.  This  Certificate is issued under and is subject to
the terms,  provisions and conditions of the Agreement,  to which  Agreement the
Holder of this  Certificate  by virtue of the  acceptance  hereof assents and by
which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business  on the day prior (or if such last day is not a Business  Day,
the Business Day immediately  preceding such day) to such Distribution Date (the
"Record Date"), from the Available Distribution Amount in an amount equal to the
product of the Percentage  Interest evidenced by this Certificate and the amount
of interest and  principal,  if any,  required to be  distributed  to Holders of
Class A-[_] Certificates on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation  and  surrender  of,  this  Certificate  at the  office  or  agency
appointed  by the Trustee  for that  purpose in  [_______________].  The Initial
Certificate  Principal  Balance  of this  Certificate  is set forth  above.  The
Certificate  Principal Balance hereof will be reduced from time to time pursuant
to the Agreement.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

                                      A-4
<PAGE>

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee  [_______________],  duly endorsed
by,  or  accompanied  by an  assignment  in the  form  below  or  other  written
instrument of transfer in form  satisfactory  to the Trustee and 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 Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      No transfer of this  Certificate or any interest  therein shall be made to
any employee benefit plan or other plan or arrangement subject to the prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  person
(including an insurance  company  investing its general  account,  an investment
manager,  a named  fiduciary  or a trustee of any such plan) who is using  "plan
assets" of any such plan to effect such  acquisition  (each of the foregoing,  a
"Plan Investor").

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The  Depositor,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Depositor,  the Master  Servicer,  the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

                                      A-5
<PAGE>

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage  Loan, and (ii) the purchase by the Master  Servicer
or Holder of the Class SB Certificates,  as described in the Agreement,  thereby
effecting early retirement of the related  Certificates.  The Agreement permits,
but does not require, the purchase by the Master Servicer or Holder of the Class
SB Certificates,  as described in the Agreement,  (i) from the Trust Fund of all
remaining  Mortgage Loans and all property  acquired in respect of such Mortgage
Loans, at a price determined as provided in the Agreement, or (ii) in whole, but
not in part,  of all of the Class A  Certificates,  [Class M  Certificates]  and
Class SB Certificates from the Holders thereof;  provided, that any such options
may only be exercised  if the Stated  Principal  Balance of the  Mortgage  Loans
(before  giving  effect  to the  distributions  to be made on such  Distribution
Date), as of the Distribution  Date upon which the proceeds of any such purchase
are  distributed is less than ten percent of the Cut-off Date Principal  Balance
of the Mortgage Loans.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      A-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                     [_______________],
                                         as Trustee

                                     By: ___________________________________
                                                Authorized Signatory

Dated: [_______], 20[_]

                          CERTIFICATE OF AUTHENTICATION

      This  is  one  of  the  Class  A-[_]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                     [_______________], as Certificate Registrar

                                     By:___________________________________
                                                Authorized Signatory

                                      A-7
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) a Percentage  Interest  evidenced by the within Mortgage  Asset-Backed
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_________________              ___________________________________________
                                     Signature by or on behalf of assignor

                                     ___________________________________________
                                     Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions  shall be made,  by wire  transfer or  otherwise,  in  immediately
available funds to
________________________________________________________________________________
for the account of _____________________________________________________________
account number or, if mailed by check, to ______________________________________

      Applicable statements should be mailed to: _______________________________
________________________________________________________________________________
_______________________________________________________________________________.

      This information is provided by _____________________________________, the
assignee named above, or __________________________, as its agent.

                                      A-8
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CLASS M-[_] CERTIFICATE

      THIS  CERTIFICATE IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE CLASS A AND
CLASS M-[_] CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

      THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY
THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
FOLLOWING THE INITIAL ISSUANCE OF THE  CERTIFICATES,  THE CERTIFICATE  PRINCIPAL
BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW.
ANYONE  ACQUIRING  THIS  CERTIFICATE  MAY  ASCERTAIN ITS  CERTIFICATE  PRINCIPAL
BALANCE BY INQUIRY OF THE TRUSTEE NAMED HEREIN.

      UNLESS THIS  CERTIFICATE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE  OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER,  EXCHANGE,  OR PAYMENT,  AND ANY CERTIFICATE
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.

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE  CODE OF 1986 (THE  "CODE")  [COUPLED  WITH A RIGHT TO RECEIVE  PAYMENTS
UNDER THE SWAP AGREEMENT].

      NO TRANSFER OF THIS  CERTIFICATE OR ANY INTEREST  THEREIN SHALL BE MADE TO
ANY EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED
TRANSACTION  PROVISIONS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN
INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT,  AN INVESTMENT MANAGER, A NAMED
FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING "PLAN  ASSETS" OF ANY SUCH
PLAN TO EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A "PLAN INVESTOR").

                                      B-1
<PAGE>

      ANY  PURPORTED  CERTIFICATE  OWNER  WHOSE  ACQUISITION  OR HOLDING OF THIS
CERTIFICATE (OR INTEREST  THEREIN) WAS EFFECTED IN VIOLATION OF THE RESTRICTIONS
IN SECTION  5.02(e) OF THE POOLING AND SERVICING  AGREEMENT  SHALL INDEMNIFY AND
HOLD HARMLESS THE DEPOSITOR,  THE TRUSTEE, THE MASTER SERVICER, ANY SUBSERVICER,
AND THE TRUST FUND FROM AND AGAINST ANY AND ALL  LIABILITIES,  CLAIMS,  COSTS OR
EXPENSES INCURRED BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR HOLDING.

                                      B-2
<PAGE>

CUSIP:  [______]                        Certificate No. M-[_]
Date of Pooling and Servicing           [Adjustable Pass-Through Rate]
Agreement and Cut-off Date:
[________] 1, 20[_]

First Distribution Date:                Aggregate Initial Certificate Principal
[________], 20[_]                       Balance of the Class M-[_]Certificates:
                                        $______

Master Servicer:                        Initial Certificate Principal Balance
Residential Funding Company, LLC        of the Class M-[_] Certificates:
                                        $_________
Final Scheduled Distribution Date:
_________ __, 20[_]

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES

                               SERIES 20[_]-RZ[_]

         evidencing  a  percentage   interest  in  the   distributions
         allocable to the Class M-[_]  Certificates  with respect to a
         Trust  Fund  consisting  primarily  of  a  pool  of  one-  to
         four-family  fixed and adjustable  interest rate,  first lien
         mortgage loans sold by RESIDENTIAL  ASSET MORTGAGE  PRODUCTS,
         INC.

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in  Residential  Asset  Mortgage
Products,   Inc.,  the  Master  Servicer,  the  Trustee  referred  to  below  or
[___________]  or any of their  affiliates.  Neither  this  Certificate  nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or instrumentality  or by Residential Asset Mortgage Products,  Inc., the Master
Servicer,  the Trustee or [___________] or any of their affiliates.  None of the
Depositor,  the Master  Servicer,  [___________] or any of their affiliates will
have any obligation with respect to any certificate or other obligation  secured
by or payable from payments on the Certificates.

      This  certifies  that   [___________]  is  the  registered  owner  of  the
Percentage  Interest  evidenced  by this  Certificate  (obtained by dividing the
Initial  Certificate  Principal  Balance of this  Certificate  by the  aggregate
Initial Certificate  Principal Balance of all Class M-[_] Certificates,  both as
specified  above) in  certain  distributions  with  respect  to the  Trust  Fund
consisting  primarily of an interest in a pool of one- to four-family  fixed and
adjustable  rate,  first lien mortgage  loans (the  "Mortgage  Loans"),  sold by
Residential Asset Mortgage Products,  Inc.  (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement referred to below).
The Trust Fund was created  pursuant to a Pooling and Servicing  Agreement dated
as specified above (the  "Agreement")  among the Depositor,  the Master Servicer
and  [___________],  as  trustee  (the  "Trustee"),  a summary of certain of the
pertinent provisions of which is set forth hereafter.  To the extent not defined
herein,  the  capitalized  terms used herein have the  meanings  assigned in the
Agreement.  This  Certificate  is issued  under  and is

                                      B-3
<PAGE>

subject to the terms,  provisions  and  conditions  of the  Agreement,  to which
Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of business  on the day prior (or if such last day is not a Business  Day,
the Business Day immediately  preceding such day) to such Distribution Date (the
"Record Date"), from the Available Distribution Amount in an amount equal to the
product of the Percentage  Interest evidenced by this Certificate and the amount
of interest and  principal,  if any,  required to be  distributed  to Holders of
Class M-[_] Certificates on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the  Trustee  for that  purpose in  [___________].  The  Initial  Certificate
Principal  Balance  of this  Certificate  is set forth  above.  The  Certificate
Principal  Balance  hereof  will be reduced  to the extent of the  distributions
allocable to principal and any Realized Losses allocable hereto.

      No transfer of this  Certificate or any interest  therein shall be made to
any employee benefit plan or other plan or arrangement subject to the prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  person
(including an insurance  company  investing its general  account,  an investment
manager,  a named  fiduciary  or a trustee of any such plan) who is using  "plan
assets" of any such plan to effect such  acquisition  (each of the foregoing,  a
"Plan Investor").

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein  collectively called the "Certificates").
The  Certificates  are  limited in right of payment to certain  collections  and
recoveries  respecting the Mortgage Loans,  all as more  specifically  set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders. As provided in the Agreement, withdrawals from the Custodial
Account   and/or  the   Certificate   Account   created   for  the   benefit  of
Certificateholders  may be made by the  Master  Servicer  from  time to time for
purposes other than distributions to Certificateholders, such purposes including
without  limitation  reimbursement  to the Depositor and the Master  Servicer of
advances made, or certain expenses incurred, by either of them.

                                      B-4
<PAGE>

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement at any time by the Depositor, the Master
Servicer  and the  Trustee  with the  consent  of the  Holders  of  Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or  agencies  appointed  by the  Trustee in  [__________________],  duly
endorsed by, or  accompanied by an assignment in the form below or other written
instrument of transfer in form  satisfactory  to the Trustee and 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 Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The  Depositor,  the Master  Servicer,  the  Trustee  and the  Certificate
Registrar and any agent of the Depositor,  the Master  Servicer,  the Trustee or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure

                                      B-5
<PAGE>

of any Mortgage Loan, and (ii) the purchase by the Master  Servicer or Holder of
the Class SB  Certificates,  as described in the  Agreement,  thereby  effecting
early retirement of the related  Certificates.  The Agreement permits,  but does
not  require,  the  purchase  by the Master  Servicer  or Holder of the Class SB
Certificates,  as  described  in the  Agreement,  (i) from the Trust Fund of all
remaining  Mortgage Loans and all property  acquired in respect of such Mortgage
Loans, at a price determined as provided in the Agreement, or (ii) in whole, but
not in part, of all of the Class A Certificates,  Class M Certificates and Class
SB Certificates  from the Holders thereof;  provided,  that any such options may
only be exercised if the Stated Principal  Balance of the Mortgage Loans (before
giving effect to the distributions to be made on such Distribution  Date), as of
the  Distribution  Date  upon  which  the  proceeds  of any  such  purchase  are
distributed  is less than ten percent of the Cut-off Date  Principal  Balance of
the Mortgage Loans.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      B-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                     [__________________],
                                          as Trustee

                                     By: ___________________________________
                                                Authorized Signatory

Dated: [_________], 20[_]

                          CERTIFICATE OF AUTHENTICATION

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

                                     [__________________],
                                          as Certificate Registrar

                                     By: ___________________________________
                                                Authorized Signatory

                                      B-7
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) a Percentage  Interest  evidenced by the within Mortgage  Asset-Backed
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________

Dated:_________________              ___________________________________________
                                     Signature by or on behalf of assignor

                                     ___________________________________________
                                     Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions  shall be made,  by wire  transfer or  otherwise,  in  immediately
available funds to
________________________________________________________________________________
for the account of _____________________________________________________________
account number or, if mailed by check, to ______________________________________

      Applicable statements should be mailed to: _______________________________
________________________________________________________________________________
_______________________________________________________________________________.

      This information is provided by _____________________________________, the
assignee named above, or __________________________, as its agent.

<PAGE>

                                                                       EXHIBIT C

                          FORM OF CLASS SB CERTIFICATE

      THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF  PAYMENT  TO THE  CLASS A
CERTIFICATES  AND CLASS M CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED
HEREIN).

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"REGULAR  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT," AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

      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  5.02 OF THE POOLING AND  SERVICING
AGREEMENT (THE "AGREEMENT").

      NO TRANSFER OF THIS  CERTIFICATE OR ANY INTEREST  THEREIN SHALL BE MADE TO
ANY EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED
TRANSACTION  PROVISIONS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN
INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT,  AN INVESTMENT MANAGER, A NAMED
FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING "PLAN  ASSETS" OF ANY SUCH
PLAN TO EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A "PLAN INVESTOR").

                                      C-1
<PAGE>

CUSIP:__________                        Certificate No. [_]

Date of Pooling and Servicing           Percentage Interest: [__]%
Agreement and Cut-off Date:
[_____________], 20[_]

First Distribution Date:                Aggregate Certificate Principal Balance
[_____________], 20[_]                  of the Class SB Certificates: $______

Master Servicer:                        Initial Certificate Principal Balance of
Residential Funding Company, LLC        this Certificate: $_________

Final Scheduled Distribution Date:
[_____________], 20[_]

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES

                               SERIES 20[_]-RZ[_]

         evidencing  a  percentage   interest  in  the   distributions
         allocable  to the Class SB  Certificates  with  respect  to a
         Trust  Fund  consisting  primarily  of  a  pool  of  one-  to
         four-family  fixed and adjustable  interest rate,  first lien
         mortgage loans sold by RESIDENTIAL  ASSET MORTGAGE  PRODUCTS,
         INC.

      This  Certificate is payable solely from the assets of the Trust Fund, and
does not represent an obligation of or interest in  Residential  Asset  Mortgage
Products,  Inc., the Master  Servicer,  the Trustee  referred to below or any of
their affiliates. Neither this Certificate nor the underlying Mortgage Loans are
guaranteed  or  insured  by any  governmental  agency or  instrumentality  or by
Residential Asset Mortgage Products,  Inc., the Master Servicer,  the Trustee or
any of their  affiliates.  None of the Depositor,  the Master Servicer or any of
their  affiliates  will have any obligation  with respect to any  certificate or
other obligation secured by or payable from payments on the Certificates.

      This  certifies  that  [_____________]  is  the  registered  owner  of the
Percentage  Interest  evidenced  by this  Certificate  (obtained by dividing the
Certificate  Principal Balance of this Certificate by the aggregate  Certificate
Principal  Balance of all Class SB  Certificates,  both as  specified  above) in
certain  distributions with respect to the Trust Fund consisting primarily of an
interest in a pool of one- to four-family  fixed and  adjustable  interest rate,
first lien mortgage loans (the  "Mortgage  Loans"),  sold by  Residential  Asset
Mortgage Products, Inc. (hereinafter called the "Depositor," which term includes
any successor entity under the Agreement  referred to below). The Trust Fund was
created  pursuant to a Pooling and Servicing  Agreement dated as specified above
(the "Agreement") among the Depositor,  the Master Servicer and [_____________],
as trustee (the "Trustee"),  a summary of certain of the pertinent provisions of
which is set forth hereafter.  To the extent not defined herein, the capitalized
terms used herein

                                      C-2
<PAGE>

have the meanings  assigned in the Agreement.  This  Certificate is issued under
and is subject to the terms,  provisions  and  conditions of the  Agreement,  to
which  Agreement  the  Holder of this  Certificate  by virtue of the  acceptance
hereof, assents and by which such Holder is bound.

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month in which the related  Distribution  Date occurs (the "Record
Date"), from the Available Distribution Amount in an amount equal to the product
of the  Percentage  Interest  evidenced  by this  Certificate  and the amount of
interest and principal,  if any,  required to be distributed to Holders of Class
SB Certificates on such Distribution Date.

      Distributions  on  this  Certificate  will be made  either  by the  Master
Servicer  acting on behalf of the Trustee or by a Paying Agent  appointed by the
Trustee in immediately  available  funds (by wire transfer or otherwise) for the
account of the Person entitled thereto if such Person shall have so notified the
Master  Servicer or such Paying Agent,  or by check mailed to the address of the
Person  entitled  thereto,  as  such  name  and  address  shall  appear  on  the
Certificate Register.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by the Trustee for that purpose in [_____________].

      The  Notional  Amount  of this  Class  SB  Certificate  as of any  date of
determination  will be calculated as described in the  Agreement.  This Class SB
Certificate will not accrue interest on its Certificate Principal Balance.

      No transfer of this Class SB Certificate will be made unless such transfer
is exempt from the  registration  requirements of the Securities Act of 1933, as
amended,  and any applicable state securities laws or is made in accordance with
said Act and laws.  In the event  that such a  transfer  is to be made,  (i) the
Trustee or the Depositor may require an opinion of counsel  acceptable to and in
form and  substance  satisfactory  to the  Trustee and the  Depositor  that such
transfer is exempt (describing the applicable  exemption and the basis therefor)
from  or is  being  made  pursuant  to  the  registration  requirements  of  the
Securities Act of 1933, as amended,  and of any applicable  statute of any state
and (ii) the transferee shall execute an investment letter in the form described
by the Agreement.  The Holder hereof desiring to effect such transfer shall, and
does hereby agree to, indemnify the Trustee, the Depositor,  the Master Servicer
and the  Certificate  Registrar  acting  on behalf of the  Trustee  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 this  Certificate or any interest  therein shall be made to
any employee benefit plan or other plan or arrangement subject to the prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  person
(including an insurance  company  investing its general  account,  an investment
manager,  a named  fiduciary  or a trustee of any such plan) who is

                                      C-3
<PAGE>

using  "plan  assets" of any such plan to effect such  acquisition  (each of the
foregoing, a "Plan Investor").

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the. Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies appointed by the Trustee in  [_____________],  duly endorsed
by,  or  accompanied  by an  assignment  in the  form  below  or  other  written
instrument of transfer in form  satisfactory  to the Trustee and 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 Class and aggregate  Percentage Interest will
be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of

                                      C-4
<PAGE>

authorized  denominations  evidencing  the same Class and  aggregate  Percentage
Interest, as requested by the Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The Depositor, the Master Servicer, the Trustee, the Certificate Registrar
and any  agent  of the  Depositor,  the  Master  Servicer,  the  Trustee  or the
Certificate  Registrar  may treat the Person in whose name this  Certificate  is
registered as the owner hereof for all purposes, and neither the Depositor,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage  Loan, and (ii) the purchase by the Master  Servicer
or Holder of the Class SB Certificates,  as described in the Agreement,  thereby
effecting early retirement of the related  Certificates.  The Agreement permits,
but does not require, the purchase by the Master Servicer or Holder of the Class
SB Certificates,  as described in the Agreement,  (i) from the Trust Fund of all
remaining  Mortgage Loans and all property  acquired in respect of such Mortgage
Loans, at a price determined as provided in the Agreement, or (ii) in whole, but
not in part,  of all of the [Class A  Certificates,  Class M  Certificates]  and
Class SB Certificates from the Holders thereof;  provided, that any such options
may only be exercised  if the Stated  Principal  Balance of the  Mortgage  Loans
(before  giving  effect  to the  distributions  to be made on such  Distribution
Date), as of the Distribution  Date upon which the proceeds of any such purchase
are  distributed is less than ten percent of the Cut-off Date Principal  Balance
of the Mortgage Loans.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar  by  manual  signature,  this  Certificate  shall  not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      C-5
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                     [________________________],
                                             as Trustee

                                     By:___________________________________
                                                Authorized Signatory

Dated: [_____________], 20[_]

                          CERTIFICATE OF AUTHENTICATION

      This  is  one  of  the   Class  SB   Certificates   referred   to  in  the
within-mentioned Agreement.

                                     [________________________],
                                             as Certificate Registrar

                                     By:___________________________________
                                                Authorized Signatory

                                      C-6
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) a Percentage  Interest  evidenced by the within Mortgage  Asset-Backed
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_________________              ___________________________________________
                                     Signature by or on behalf of assignor

                                     ___________________________________________
                                     Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions  shall be made,  by wire  transfer or  otherwise,  in  immediately
available funds to
________________________________________________________________________________
for the account of _____________________________________________________________
account number or, if mailed by check, to ______________________________________

      Applicable statements should be mailed to: _______________________________
________________________________________________________________________________
_______________________________________________________________________________.

      This information is provided by _____________________________________, the
assignee named above, or __________________________, as its agent.

<PAGE>

                                                                       EXHIBIT D

                        FORM OF CLASS R-[__] CERTIFICATE

      THE CLASS R-[_] CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS  CONSTITUTING
THE  AVAILABLE  DISTRIBUTION  AMOUNT UNTIL SUCH TIME AS DESCRIBED IN THE POOLING
AND SERVICING AGREEMENT REFERRED TO HEREIN (THE "AGREEMENT").

      THIS CLASS R-[_]  CERTIFICATE  IS  SUBORDINATE TO THE CLASS A, CLASS M AND
CLASS SB CERTIFICATES, TO THE EXTENT DESCRIBED HEREIN AND IN THE AGREEMENT.

      THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED  STATES
PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

      SOLELY  FOR U.S.  FEDERAL  INCOME  TAX  PURPOSES,  THIS  CERTIFICATE  IS A
"RESIDUAL  INTEREST" IN A "REAL  ESTATE  MORTGAGE  INVESTMENT  CONDUIT" AS THOSE
TERMS ARE  DEFINED,  RESPECTIVELY,  IN  SECTIONS  860G AND 860D OF THE  INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

      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  5.02 OF THE POOLING AND  SERVICING
AGREEMENT (THE "AGREEMENT").

      NO TRANSFER OF THIS  CERTIFICATE OR ANY INTEREST  THEREIN SHALL BE MADE TO
ANY EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT SUBJECT TO THE PROHIBITED
TRANSACTION  PROVISIONS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED  ("ERISA"),  OR SECTION 4975 OF THE CODE, OR ANY PERSON (INCLUDING AN
INSURANCE COMPANY INVESTING ITS GENERAL ACCOUNT,  AN INVESTMENT MANAGER, A NAMED
FIDUCIARY OR A TRUSTEE OF ANY SUCH PLAN) WHO IS USING "PLAN  ASSETS" OF ANY SUCH
PLAN TO EFFECT SUCH ACQUISITION (EACH OF THE FOREGOING, A "PLAN INVESTOR").

      ANY RESALE,  TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE
ONLY IF THE  PROPOSED  TRANSFEREE  PROVIDES A TRANSFER  AFFIDAVIT  TO THE MASTER
SERVICER AND THE TRUSTEE THAT (1) SUCH  TRANSFEREE IS NOT (A) THE UNITED STATES,
ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES,
OR  ANY  AGENCY  OR  INSTRUMENTALITY  OF ANY OF THE

                                      D-1
<PAGE>

FOREGOING  (OTHER THAN AN  INSTRUMENTALITY  WHICH IS A CORPORATION IF ALL OF ITS
ACTIVITIES  ARE  SUBJECT TO TAX AND EXCEPT FOR  FREDDIE  MAC, A MAJORITY  OF ITS
BOARD OF  DIRECTORS IS NOT SELECTED BY SUCH  GOVERNMENTAL  UNIT),  (B) A FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,  OR ANY AGENCY OR INSTRUMENTALITY OF
EITHER OF THE  FOREGOING,  (C) ANY  ORGANIZATION  (OTHER THAN  CERTAIN  FARMERS'
COOPERATIVES  DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH  ORGANIZATION IS SUBJECT TO THE TAX
IMPOSED BY SECTION 511 OF THE CODE  (INCLUDING THE TAX IMPOSED BY SECTION 511 OF
THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE
COOPERATIVES  DESCRIBED IN SECTION  1381(a)(2)(C)  OF THE CODE,  (E) AN ELECTING
LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN
THE FOREGOING  CLAUSES (A),  (B), (C), (D) OR (E) BEING HEREIN  REFERRED TO AS A
"DISQUALIFIED  ORGANIZATION"),  OR (F) AN AGENT OF A DISQUALIFIED  ORGANIZATION,
(2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX
AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL  CONDITIONS RELATING TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
IN THE CERTIFICATE  REGISTER OR ANY TRANSFER,  SALE OR OTHER DISPOSITION OF THIS
CERTIFICATE  TO A  DISQUALIFIED  ORGANIZATION  OR  AN  AGENT  OF A  DISQUALIFIED
ORGANIZATION,  SUCH  REGISTRATION  SHALL BE  DEEMED  TO BE OF NO LEGAL  FORCE OR
EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A  CERTIFICATEHOLDER
FOR ANY  PURPOSE  HEREUNDER,  INCLUDING,  BUT NOT  LIMITED  TO,  THE  RECEIPT OF
DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE
OF THIS CERTIFICATE  SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                      D-2
<PAGE>

Class R-[_] [Subordinate]               Certificate No. [_]

Date of Pooling and Servicing           Percentage Interest: [100]%
Agreement and Cut-off Date:
[_________]1, 20[_]

First Distribution Date:                Final Scheduled Distribution Date:
[_________], 20[_]                      [_________], 20[_]

Master Servicer:
Residential Funding Company, LLC

                 MORTGAGE ASSET-BACKED PASS-THROUGH CERTIFICATES

                               SERIES 20[_]-RZ[_]

         evidencing  a  percentage   interest  in  the   distributions
         allocable to the Class R-[_]  Certificates  with respect to a
         Trust  Fund  consisting  primarily  of  a  pool  of  one-  to
         four-family  fixed and adjustable  interest rate,  first lien
         mortgage loans sold by RESIDENTIAL  ASSET MORTGAGE  PRODUCTS,
         INC.

      This  Certificate  is payable solely from the assets of the Trust Fund and
does not represent an obligation of or interest in  Residential  Asset  Mortgage
Products,   Inc.,  the  Master  Servicer,  the  Trustee  referred  to  below  or
[____________] or any of their  affiliates.  Neither  this  Certificate  nor the
underlying  Mortgage Loans are guaranteed or insured by any governmental  agency
or instrumentality  or by Residential Asset Mortgage Products,  Inc., the Master
Servicer, the Trustee or [____________] or any of their affiliates.  None of the
Depositor, the Master Servicer or [____________] or any of their affiliates will
have any obligation with respect to any certificate or other obligation  secured
by or payable from payments on the Certificates.

      This  certifies  that  [____________]  is  the  registered  owner  of  the
Percentage  Interest  evidenced by this  Certificate  specified above in certain
distributions  with respect to the Trust Fund consisting  primarily of a pool of
one- to  four-family  fixed and adjustable  interest  rate,  first lien mortgage
loans (the "Mortgage Loans"), sold by Residential Asset Mortgage Products,  Inc.
(hereinafter  called the  "Depositor,"  which term includes any successor entity
under the Agreement referred to below). The Trust Fund was created pursuant to a
Pooling and Servicing  Agreement dated as specified above (the "Agreement) among
the  Depositor,  the  Master  Servicer  and  [____________],   as  trustee  (the
"Trustee"),  a summary of certain of the  pertinent  provisions  of which is set
forth hereafter.  To the extent not defined herein,  the capitalized  terms used
herein have the meanings  assigned in the Agreement.  This Certificate is issued
under and is subject to the terms,  provisions  and conditions of the Agreement,
to which  Agreement the Holder of this  Certificate  by virtue of the acceptance
hereof assents and by which such Holder is bound.

                                      D-3
<PAGE>

      Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business  Day, the Business
Day immediately following (the "Distribution Date"),  commencing as described in
the Agreement, to the Person in whose name this Certificate is registered at the
close of  business  on the last day (or if such last day is not a Business  Day,
the Business Day immediately  preceding such last day) of the month  immediately
preceding the month of such distribution (the "Record Date"), from the Available
Distribution Amount in an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount of interest and principal,  if any,
required  to be  distributed  to Holders  of Class  R-[_]  Certificates  on such
Distribution Date.

      Each Holder of this  Certificate will be deemed to have agreed to be bound
by the  restrictions  set forth in the  Agreement  to the  effect  that (i) each
person holding or acquiring any Ownership Interest in this Certificate must be a
United  States  Person and a  Permitted  Transferee,  (ii) the  transfer  of any
Ownership  Interest in this Certificate will be conditioned upon the delivery to
the Trustee of,  among other  things,  an  affidavit  to the effect that it is a
United States Person and Permitted Transferee,  (iii) any attempted or purported
transfer of any  Ownership  Interest in this  Certificate  in  violation of such
restrictions  will be  absolutely  null and void and will  vest no rights in the
purported  transferee,  and (iv) if any person other than a United States Person
and a Permitted  Transferee  acquires any Ownership Interest in this Certificate
in violation of such restrictions, then the Master Servicer will have the right,
in its sole discretion and without notice to the Holder of this Certificate,  to
sell this  Certificate  to a purchaser  selected by the Master  Servicer,  which
purchaser may be the Master  Servicer,  or any affiliate of the Master Servicer,
on such terms and conditions as the Master Servicer may choose.

      Notwithstanding the above, the final distribution on this Certificate will
be made  after due notice of the  pendency  of such  distribution  and only upon
presentation and surrender of this Certificate at the office or agency appointed
by  the  Trustee  for  that  purpose  in  [____________].  The  Holder  of  this
Certificate may have additional  obligations  with respect to this  Certificate,
including tax liabilities.

      No  transfer  of this Class  R-[_]  Certificate  will be made  unless such
transfer is exempt from the  registration  requirements of the Securities Act of
1933,  as  amended,  and  any  applicable  state  securities  laws or is made in
accordance  with said Act and laws.  In the event that such a transfer  is to be
made,  (i) the  Trustee  or the  Depositor  may  require  an  opinion of counsel
acceptable  to and in form and  substance  satisfactory  to the  Trustee and the
Depositor that such transfer is exempt (describing the applicable  exemption and
the  basis  therefor)  from  or is  being  made  pursuant  to  the  registration
requirements  of the Securities  Act of 1933, as amended,  and of any applicable
statute of any state and (ii) the transferee shall execute an investment  letter
in the form  described by the  Agreement.  The Holder hereof  desiring to effect
such  transfer  shall,  and does hereby agree to,  indemnify  the  Trustee,  the
Depositor, the Master Servicer and the Certificate Registrar acting on behalf of
the Trustee  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 this  Certificate  or any interest  herein shall be made to
any employee benefit plan or other plan or arrangement subject to the prohibited
transaction  provisions  of ERISA or Section  4975 of the Code (a  "Plan"),  any
Person acting, directly or indirectly,  on behalf of any such Plan or any Person
acquiring such  Certificates  with "plan assets" of a Plan

                                      D-4
<PAGE>

within the  meaning of the  Department  of Labor  regulation  promulgated  at 29
C.F.R.  ss.2510.3-101 unless the Depositor,  the Trustee and the Master Servicer
are provided with an Opinion of Counsel which establishes to the satisfaction of
the Depositor,  the Trustee and the Master Servicer that the purchase or holding
of this Certificate is permissible  under applicable law, will not constitute or
result in any non-exempt  prohibited  transaction  under Section 406 of ERISA or
Section 4975 of the Code (or comparable provisions of any subsequent enactments)
and will not  subject the  Depositor,  the Master  Servicer,  the Trustee or the
Trust Fund to any obligation or liability (including  obligations or liabilities
under ERISA or Section 4975 of the Code) in addition to those  undertaken in the
Agreement,  which Opinion of Counsel  shall not be an expense of the  Depositor,
the Master  Servicer,  the Trustee or the Trust Fund. In lieu of such Opinion of
Counsel,  a Person acquiring this Certificate may provide a certification in the
form of paragraph fifteen of Exhibit H-1 to the Agreement, which the Trustee may
rely upon without further inquiry or investigation.

      This Certificate is one of a duly authorized issue of Certificates  issued
in several Classes designated as Mortgage Asset-Backed Pass-Through Certificates
of the Series specified hereon (herein collectively called the "Certificates").

      The  Certificates  are limited in right of payment to certain  collections
and recoveries respecting the Mortgage Loans, all as more specifically set forth
herein and in the  Agreement.  In the event Master  Servicer  funds are advanced
with respect to any Mortgage Loan,  such advance is  reimbursable  to the Master
Servicer,  to the extent provided in the Agreement,  from related  recoveries on
such  Mortgage  Loan or from other cash that  would have been  distributable  to
Certificateholders.

      As provided  in the  Agreement,  withdrawals  from the  Custodial  Account
and/or the Certificate Account created for the benefit of Certificateholders may
be made by the  Master  Servicer  from  time to time  for  purposes  other  than
distributions to Certificateholders,  such purposes including without limitation
reimbursement  to the  Depositor  and the Master  Servicer of advances  made, or
certain expenses incurred, by either of them.

      The Agreement  permits,  with certain  exceptions  therein  provided,  the
amendment of the Agreement and the modification of the rights and obligations of
the  Depositor,  the  Master  Servicer  and the  Trustee  and the  rights of the
Certificateholders  under the Agreement from time to time by the Depositor,  the
Master  Servicer and the Trustee with the consent of the Holders of Certificates
evidencing  in the aggregate  not less than 66% of the  Percentage  Interests of
each Class of Certificates  affected thereby.  Any such consent by the Holder of
this  Certificate  shall be  conclusive  and binding on such Holder and upon all
future  holders  of this  Certificate  and of any  Certificate  issued  upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon the  Certificate.  The  Agreement  also permits the
amendment thereof in certain circumstances without the consent of the Holders of
any of the Certificates and, in certain  additional  circumstances,  without the
consent of the Holders of certain Classes of Certificates.

      As provided in the  Agreement and subject to certain  limitations  therein
set forth,  the transfer of this  Certificate is registrable in the  Certificate
Register upon surrender of this  Certificate for registration of transfer at the
offices or agencies  appointed by the Trustee in

                                      D-5
<PAGE>

[____________],  duly endorsed by, or  accompanied  by an assignment in the form
below or other  written  instrument  of  transfer  in form  satisfactory  to the
Trustee and 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 Class and aggregate
Percentage Interest will be issued to the designated transferee or transferees.

      The  Certificates  are issuable  only as registered  Certificates  without
coupons in Classes and in denominations  specified in the Agreement. As provided
in  the  Agreement  and  subject  to  certain  limitations  therein  set  forth,
Certificates are  exchangeable for new Certificates of authorized  denominations
evidencing the same Class and aggregate Percentage Interest, as requested by the
Holder surrendering the same.

      No service  charge will be made for any such  registration  of transfer or
exchange,  but the Trustee may require  payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      The Depositor, the Master Servicer, the Trustee, the Certificate Registrar
and any  agent  of the  Depositor,  the  Master  Servicer,  the  Trustee  or the
Certificate  Registrar  may treat the Person in whose name this  Certificate  is
registered as the owner hereof for all purposes, and neither the Depositor,  the
Master  Servicer,  the Trustee nor any such agent shall be affected by notice to
the contrary.

      This Certificate shall be governed by and construed in accordance with the
laws of the State of New York.

      The  obligations  created by the Agreement in respect of the  Certificates
and the  Trust  Fund  created  thereby  shall  terminate  upon  the  payment  to
Certificateholders  of all  amounts  held by or on  behalf  of the  Trustee  and
required to be paid to them pursuant to the  Agreement  following the earlier of
(i) the maturity or other  liquidation of the last Mortgage Loan subject thereto
or the disposition of all property  acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage  Loan, and (ii) the purchase by the Master  Servicer
or Holder of the Class SB Certificates,  as described in the Agreement,  thereby
effecting early retirement of the related  Certificates.  The Agreement permits,
but does not require, the purchase by the Master Servicer or Holder of the Class
SB Certificates,  as described in the Agreement,  (i) from the Trust Fund of all
remaining  Mortgage Loans and all property  acquired in respect of such Mortgage
Loans, at a price determined as provided in the Agreement, or (ii) in whole, but
not in part,  of all of the [Class A  Certificates,  Class M  Certificates]  and
Class SB Certificates from the Holders thereof;  provided, that any such options
may only be exercised  if the Stated  Principal  Balance of the  Mortgage  Loans
(before  giving  effect  to the  distributions  to be made on such  Distribution
Date), as of the Distribution  Date upon which the proceeds of any such purchase
are  distributed is less than ten percent of the Cut-off Date Principal  Balance
of the Mortgage Loans.

      Unless the certificate of  authentication  hereon has been executed by the
Certificate  Registrar,  by  manual  signature,  this  Certificate  shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      D-6
<PAGE>

      IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate  to be duly
executed.

                                     [________________________],
                                             as Trustee

                                     By:___________________________________
                                                Authorized Signatory

Dated: [__________], 20[_]

                          CERTIFICATE OF AUTHENTICATION

      This  is  one  of  the  Class  R-[_]  Certificates   referred  to  in  the
within-mentioned Agreement.

                                     [________________________],
                                             as Certificate Registrar

                                     By:___________________________________
                                                Authorized Signatory

                                      D-7
<PAGE>

                                   ASSIGNMENT

      FOR  VALUE  RECEIVED,  the  undersigned  hereby  sell(s),   assign(s)  and
transfer(s) unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

(Please  print  or  typewrite  name and  address  including  postal  zip code of
assignee) a Percentage  Interest  evidenced by the within Mortgage  Asset-Backed
Pass-Through  Certificate and hereby  authorizes the transfer of registration of
such interest to assignee on the Certificate Register of the Trust Fund.

      I (We) further direct the Certificate Registrar to issue a new Certificate
of a like  denomination  and Class, to the above named assignee and deliver such
Certificate to the following address:

________________________________________________________________________________

Dated:_________________              ___________________________________________
                                     Signature by or on behalf of assignor

                                     ___________________________________________
                                     Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

      The assignee should include the following for purposes of distribution:

Distributions  shall be made,  by wire  transfer or  otherwise,  in  immediately
available funds to
________________________________________________________________________________
for the account of _____________________________________________________________
account number or, if mailed by check, to ______________________________________

      Applicable statements should be mailed to: _______________________________
________________________________________________________________________________
_______________________________________________________________________________.

      This information is provided by _____________________________________, the
assignee named above, or __________________________, as its agent.

<PAGE>

                                                                       EXHIBIT E

                           FORM OF CUSTODIAL AGREEMENT

      THIS CUSTODIAL  AGREEMENT (as amended and supplemented  from time to time,
the   "Agreement"),   dated  as  of   [___________]   1,  20[_],  by  and  among
[________________________].,  as trustee  (including  its  successors  under the
Pooling  Agreement  defined below,  the "Trustee"),  RESIDENTIAL  ASSET MORTGAGE
PRODUCTS,  INC.,  as company  (together  with any  successor  in  interest,  the
"Company"),  RESIDENTIAL FUNDING COMPANY, LLC, as master servicer (together with
any successor in interest or successor under the Pooling  Agreement  referred to
below,  the "Master  Servicer")  and  [________________________],  as  custodian
(together with any successor in interest or any successor  appointed  hereunder,
the "Custodian").

                          W I T N E S S E T H T H A T:

      WHEREAS,  the Company,  the Master Servicer,  and the Trustee have entered
into a Pooling and  Servicing  Agreement,  dated as of  [___________]  1, 20[_],
relating to the issuance of Residential Asset Mortgage Products,  Inc., Mortgage
Asset-Backed Pass-Through Certificates,  Series 20[_]-RZ[_] (as in effect on the
date of this  Agreement,  the "Original  Pooling  Agreement," and as amended and
supplemented from time to time, the "Pooling Agreement"); and

      WHEREAS,  the Custodian has agreed to act as agent for the Trustee for the
purposes  of  receiving  and holding  certain  documents  and other  instruments
delivered by the Company and the Master  Servicer  under the Pooling  Agreement,
all upon the terms and conditions and subject to the limitations hereinafter set
forth;

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
and  agreements  hereinafter  set forth,  the Trustee,  the Company,  the Master
Servicer and the Custodian hereby agree as follows:

                                    ARTICLE I

                                   Definitions

      Capitalized terms used in this Agreement and not defined herein shall have
the  meanings  assigned in the  Original  Pooling  Agreement,  unless  otherwise
required by the context herein.

                                   ARTICLE II

                          Custody of Mortgage Documents

      Section 2.1 Custodian to Act as Agent:  Acceptance of Custodial Files. The
Custodian,  as the duly  appointed  agent of the  Trustee  for  these  purposes,
acknowledges  receipt of the  Custodial  Files  relating to the  Mortgage  Loans
identified on the schedule attached hereto (the

                                     E-5-1
<PAGE>

"Custodial  Files") and declares that it holds and will hold the Custodial Files
as agent for the Trustee,  in trust,  for the use and benefit of all present and
future Certificateholders.

      Section 2.2 Recordation of Assignments. If any Custodial File includes one
or more  assignments of the related  Mortgages to the Trustee that have not been
recorded,  each such  assignment  shall be  delivered  by the  Custodian  to the
Company for the purpose of recording  it in the  appropriate  public  office for
real property records,  and the Company,  at no expense to the Custodian,  shall
promptly cause to be recorded in the appropriate public office for real property
records each such  assignment and, upon receipt thereof from such public office,
shall return each such assignment to the Custodian.

      Section 2.3 Review of Custodial Files.

            (a) On or prior to the Closing Date, the Custodian  shall deliver to
the Trustee an Initial  Certification  in the form annexed hereto as Exhibit One
evidencing  receipt of a  Custodial  File for each  Mortgage  Loan listed on the
Schedule  attached  hereto (the  "Mortgage Loan  Schedule").  The parties hereto
acknowledge that certain documents  referred to in Subsection  2.01(b)(i) of the
Pooling  Agreement  may be  missing  on or  prior to the  Closing  Date and such
missing documents shall be listed as a Schedule to Exhibit One.

            (b) Within 45 days after the Closing Date, the Custodian agrees, for
the benefit of Certificateholders,  to review each Custodial File and to deliver
to the Trustee an Interim  Certification  in the form annexed  hereto as Exhibit
Two to the effect  that all  documents  required  to be  delivered  pursuant  to
Section  2.01(b) of the Pooling  Agreement  have been  executed and received and
that such documents relate to the Mortgage Loans identified on the Mortgage Loan
Schedule,  except for any  exceptions  listed on  Schedule  A  attached  to such
Interim Certification.  For purposes of such review, the Custodian shall compare
the  following   information  in  each  Custodial  File  to  the   corresponding
information  in the  Mortgage  Loan  Schedule:  (i) the  loan  number,  (ii) the
borrower name and (iii) the original  principal  balance.  In the event that any
Mortgage Note or  Assignment of Mortgage has been  delivered to the Custodian by
the Company in blank,  the Custodian,  upon the direction of the Company,  shall
cause  each such  Mortgage  Note to be  endorsed  to the  Trustee  and each such
Assignment  of Mortgage to be completed in the name of the Trustee  prior to the
date on which such Interim Certification is delivered to the Trustee.  Within 45
days of receipt of the  documents  required to be delivered  pursuant to Section
2.01(c) of the Pooling  Agreement,  the Custodian agrees, for the benefit of the
Certificateholders,  to review each such document,  and upon the written request
of the  Trustee to deliver to the  Trustee an updated  Schedule A to the Interim
Certification.  The  Custodian  shall be under no duty or obligation to inspect,
review or examine said documents,  instruments,  certificates or other papers to
determine  that  the same  are  genuine,  enforceable,  or  appropriate  for the
represented  purpose or that they have  actually  been recorded or that they are
other than what they  purport to be on their face,  or that the MIN is accurate.
If in performing the review required by this Section 2.3 the Custodian finds any
document or documents  constituting  a part of a Custodial File to be missing or
defective in respect of the items reviewed as described in this Section  2.3(b),
the Custodian shall promptly so notify the Company,  the Master Servicer and the
Trustee.

                                     E-5-2
<PAGE>

            (c) Upon receipt of all  documents  required to be in the  Custodial
Files the Custodian  shall deliver to the Trustee a Final  Certification  in the
form  annexed  hereto  as  Exhibit  Three  evidencing  the  completeness  of the
Custodial Files.

            Upon receipt of written request from the Trustee, the Company or the
Master Servicer,  the Custodian shall as soon as practicable  supply the Trustee
with a list of all of the documents  relating to the Mortgage  Loans required to
be  delivered  pursuant  to Section  2.01(b) of the Pooling  Agreement  not then
contained in the Custodial Files.

      Section 2.4 Notification of Breaches of Representations and Warranties. If
the Custodian discovers,  in the course of performing its custodial functions, a
breach of a  representation  or  warranty  made by the  Master  Servicer  or the
Company as set forth in the Pooling  Agreement  with respect to a Mortgage  Loan
relating to a Custodial  File, the Custodian shall give prompt written notice to
the Company, the Master Servicer and the Trustee.

      Section 2.5 Custodian to Cooperate:  Release of Custodial Files.  Upon the
repurchase  or  substitution  of any Mortgage Loan pursuant to Article II of the
Pooling Agreement or payment in full of any Mortgage Loan, or the receipt by the
Master  Servicer of a  notification  that  payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer shall immediately notify
the  Custodian by delivering to the Custodian a Request for Release (in the form
of Exhibit Four attached hereto or a mutually  acceptable  electronic  form) and
shall request delivery to it of the Custodial File. The Custodian  agrees,  upon
receipt of such Request for Release,  promptly to release to the Master Servicer
the related Custodial File.

            Upon  receipt of a Request  for  Release  from the Master  Servicer,
signed  by a  Servicing  Officer,  stating  that (i) the  Master  Servicer  or a
Subservicer, as the case may be, has made a deposit into the Certificate Account
in payment for the purchase of the related  Mortgage  Loan in an amount equal to
the  Purchase  Price for such  Mortgage  Loan or (ii) the  Company has chosen to
substitute a Qualified  Substitute  Mortgage  Loan for such Mortgage  Loan,  the
Custodian shall release to the Master Servicer the related Custodial File.

            Upon written  notification  of a  substitution,  the Master Servicer
shall deliver to the  Custodian and the Custodian  agrees to accept the Mortgage
Note and other  documents  constituting  the Custodial  File with respect to any
Qualified Substitute Mortgage Loan, upon receiving written notification from the
Master Servicer of such substitution.

            From  time  to  time  as  is   appropriate   for  the  servicing  or
foreclosures of any Mortgage Loan, including, for this purpose, collection under
any Primary Insurance Policy or any Mortgage Pool Insurance  Policy,  the Master
Servicer  shall deliver to the Custodian a Request for Release  certifying as to
the reason for such release. Upon receipt of the foregoing,  the Custodian shall
deliver  the  Custodial  File or  such  document  to the  Master  Servicer.  All
Custodial  Files so released to the Master Servicer shall be held by it in trust
for  the   Trustee   for  the  use  and   benefit  of  all  present  and  future
Certificateholders.  The Master  Servicer shall cause each Custodial File or any
document  therein so  released to be  returned  to the  Custodian  when the need
therefor by the Master  Servicer no longer exists,  unless (i) the Mortgage Loan
has been liquidated and the Liquidation  Proceeds  relating to the Mortgage Loan
have been deposited in the Custodial  Account or (ii) the Custodial File or such
document  has been  delivered to an

                                     E-5-3
<PAGE>

attorney,  or to a public  trustee or other public  official as required by law,
for purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property either judicially or  non-judicially,  and
the Master  Servicer  has  delivered  to the  Custodian  an updated  Request for
Release signed by a Servicing  Officer  certifying as to the name and address of
the Person to which such  Custodial  File or such document was delivered and the
purpose or purposes of such delivery.  Immediately upon receipt of any Custodial
File  returned to the  Custodian by the Master  Servicer,  the  Custodian  shall
deliver a signed  acknowledgement to the Master Servicer,  confirming receipt of
such Custodial File.

            Upon the written request of the Master Servicer,  the Custodian will
send to the Master Servicer  copies of any documents  contained in the Custodial
File.

      Section  2.6  Assumption  Agreements.  In the  event  that any  assumption
agreement or substitution of liability agreement is entered into with respect to
any Mortgage  Loan subject to this  Agreement in  accordance  with the terms and
provisions  of the  Pooling  Agreement,  the Master  Servicer  shall  notify the
Custodian that such assumption or  substitution  agreement has been completed by
forwarding  to the Custodian  the original of such  assumption  or  substitution
agreement,  which  shall be added to the  related  Custodial  File and,  for all
purposes,  shall be considered a part of such  Custodial File to the same extent
as all other documents and instruments constituting parts thereof.

                                  ARTICLE III

                            Concerning the Custodian

      Section 3.1  Custodian a Bailee and Agent of the Trustee.  With respect to
each Mortgage Note,  Mortgage and other  documents  constituting  each Custodial
File which are  delivered to the  Custodian,  the Custodian is  exclusively  the
bailee and agent of the Trustee  and has no  instructions  to hold any  Mortgage
Note or Mortgage  for the benefit of any person  other than the  Trustee,  holds
such documents for the benefit of  Certificateholders  and undertakes to perform
such  duties  and  only  such  duties  as are  specifically  set  forth  in this
Agreement.  Except upon  compliance  with the  provisions of Section 2.5 of this
Agreement, no Mortgage Note, Mortgage or other document constituting a part of a
Custodial  File shall be delivered by the Custodian to the Company or the Master
Servicer or otherwise released from the possession of the Custodian.

      The Master  Servicer shall promptly  notify the Custodian in writing if it
shall no  longer  be a member  of MERS,  or if it  otherwise  shall no longer be
capable of registering and recording Mortgage Loans using MERS. In addition, the
Master  Servicer shall (i) promptly  notify the Custodian in writing when a MERS
Mortgage  Loan is no longer  registered  with and  recorded  under MERS and (ii)
concurrently  with any such  deregistration  of a MERS Mortgage  Loan,  prepare,
execute and record an original  assignment  from MERS to the Trustee and deliver
such assignment to the Custodian.

      Section 3.2  Indemnification.  The Company  hereby agrees to indemnify and
hold the Custodian  harmless from and against all claims,  liabilities,  losses,
actions,  suits or proceedings at law or in equity, or any other expenses,  fees
or charges of any  character or nature,  which the

                                     E-5-4
<PAGE>

Custodian  may incur or with which the  Custodian may be threatened by reason of
its acting as custodian under this Agreement,  including  indemnification of the
Custodian against any and all expenses, including attorney's fees if counsel for
the Custodian  has been  approved by the Company,  and the cost of defending any
action,  suit  or  proceedings  or  resisting  any  claim.  Notwithstanding  the
foregoing,  it is specifically  understood and agreed that in the event any such
claim,  liability,  loss,  action,  suit or proceeding or other expense,  fee or
charge shall have been caused by reason of any negligent act,  negligent failure
to act or  willful  misconduct  on the part of the  Custodian,  or  which  shall
constitute  a  willful  breach  of its  duties  hereunder,  the  indemnification
provisions of this Agreement shall not apply.

      Section  3.3  Custodian  May  Own  Certificates.   The  Custodian  in  its
individual or any other capacity may become the owner or pledgee of Certificates
with the same rights it would have if it were not Custodian.

      Section 3.4 Master  Servicer to Pay  Custodian's  Fees and  Expenses.  The
Master Servicer  covenants and agrees to pay to the Custodian from time to time,
and the Custodian shall be entitled to, reasonable compensation for all services
rendered by it in the exercise and  performance  of any of the powers and duties
hereunder of the  Custodian,  and the Master  Servicer will pay or reimburse the
Custodian  upon its  request  for all  reasonable  expenses,  disbursements  and
advances  incurred  or made  by the  Custodian  in  accordance  with  any of the
provisions of this  Agreement  (including the  reasonable  compensation  and the
expenses and  disbursements  of its counsel and of all persons not  regularly in
its employ), except any such expense,  disbursement or advance as may arise from
its negligence or bad faith.

      Section 3.5  Custodian  May  Resign;  Trustee  May Remove  Custodian.  The
Custodian may resign from the  obligations  and duties hereby imposed upon it as
such  obligations  and duties  relate to its acting as Custodian of the Mortgage
Loans. Upon receiving such notice of resignation,  the Trustee shall either take
custody of the  Custodial  Files  itself and give prompt  notice  thereof to the
Company, the Master Servicer and the Custodian,  or promptly appoint a successor
Custodian by written  instrument,  in  duplicate,  one copy of which  instrument
shall be  delivered to the  resigning  Custodian  and one copy to the  successor
Custodian.  If the Trustee shall not have taken  custody of the Custodial  Files
and no  successor  Custodian  shall  have been so  appointed  and have  accepted
appointment  within 30 days after the giving of such notice of resignation,  the
resigning  Custodian  may petition any court of competent  jurisdiction  for the
appointment of a successor Custodian.

      The Trustee, at the direction of the Master Servicer and the Company,  may
remove the Custodian at any time. In such event,  the Trustee shall appoint,  or
petition a court of competent  jurisdiction  to appoint,  a successor  Custodian
hereunder.  Any successor Custodian shall be a depository institution subject to
supervision or  examination  by federal or state  authority and shall be able to
satisfy  the  other   requirements   contained  in  Section  3.7  and  shall  be
unaffiliated with the Master Servicer or the Company.

      Any resignation or removal of the Custodian and appointment of a successor
Custodian  pursuant to any of the  provisions  of this  Section 3.5 shall become
effective upon acceptance of appointment by the successor Custodian. The Trustee
shall  give  prompt  notice  to the  Company  and  the  Master  Servicer  of the
appointment  of  any  successor  Custodian.  No  successor  Custodian

                                     E-5-5
<PAGE>

shall be appointed by the Trustee  without the prior approval of the Company and
the Master Servicer.

      Section 3.6 Merger or  Consolidation  of Custodian.  Any Person into which
the Custodian  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 Custodian shall be a party, or any Person  succeeding to the business of the
Custodian,  shall be the  successor  of the  Custodian  hereunder,  without  the
execution  or filing of any paper or any  further  act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.

      Section  3.7  Representations  of  the  Custodian.  The  Custodian  hereby
represents  that  it is a  depository  institution  subject  to  supervision  or
examination by a federal or state authority,  has a combined capital and surplus
of at least  $15,000,000 and is qualified to do business in the jurisdictions in
which it will hold any Custodial File.

                                   ARTICLE IV

                            Miscellaneous Provisions

      Section 4.1 Notices. All notices, requests, consents and demands and other
communications required under this Agreement or pursuant to any other instrument
or  document  delivered  hereunder  shall be in writing  and,  unless  otherwise
specifically provided, may be delivered personally,  by telegram or telex, or by
registered or certified mail, postage prepaid,  return receipt requested, at the
addresses  specified  on  the  signature  page  hereof  (unless  changed  by the
particular party whose address is stated herein by similar notice in writing).

      Section 4.2  Amendments.  No modification or amendment of or supplement to
this  Agreement  shall be valid or  effective  unless the same is in writing and
signed by all parties hereto,  and neither the Company,  the Master Servicer nor
the Trustee  shall enter into any  amendment  hereof  except as permitted by the
Pooling Agreement.  The Trustee shall give prompt notice to the Custodian of any
amendment or supplement to the Pooling  Agreement and furnish the Custodian with
written copies thereof.

      Section 4.3 GOVERNING LAW. THIS AGREEMENT  SHALL BE DEEMED A CONTRACT MADE
UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE  CONSTRUED  AND ENFORCED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

      Section  4.4  Recordation  of  Agreement.   To  the  extent  permitted  by
applicable  law, this  Agreement is subject to  recordation  in all  appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated,  and in any other  appropriate  public  recording office or elsewhere,
such  recordation  to be effected by the Master  Servicer  and at its expense on
direction  by the Trustee  (pursuant  to the request of holders of  Certificates
evidencing  undivided  interests  in the  aggregate  of not less than 25% of the
Trust  Fund),  but only upon  direction  accompanied  by an  Opinion  of Counsel
reasonably satisfactory to the Master Servicer to the effect that the failure to

                                     E-5-6
<PAGE>

effect  such  recordation  is likely to  materially  and  adversely  affect  the
interests of the Certificateholders.

      For the purpose of  facilitating  the  recordation  of this  Agreement  as
herein  provided  and  for  other  purposes,  this  Agreement  may  be  executed
simultaneously in any number of counterparts,  each of which  counterparts shall
be deemed to be an original,  and such counterparts shall constitute but one and
the same instrument.

      Section  4.5  Severability  of  Provisions.  If  any  one or  more  of the
covenants,  agreements,  provisions or terms of this Agreement  shall be for any
reason whatsoever held invalid, then such covenants,  agreements,  provisions or
terms  shall be  deemed  severable  from the  remaining  covenants,  agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability  of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                            [Signature Page Follows]

                                     E-5-7
<PAGE>

      IN WITNESS WHEREOF,  this Agreement is executed as of the date first above
written.

                                             [________________]
Address:                                     as Trustee
[________________]
[________________]
Attention: Residential Asset Mortgage        By: _______________________________
           Products, Inc.,                   Name: _____________________________
           Series 20[_]-RZ[_]                Title: ____________________________

Address:                                     RESIDENTIAL ASSET MORTGAGE
                                             PRODUCTS, INC.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

Address:                                     RESIDENTIAL FUNDING COMPANY, LLC,
                                             as Master Servicer.

8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

Address:                                     [CUSTODIAN]
[________________]
[________________]
[________________]

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                     E-5-8
<PAGE>

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

      On the _____ day of _______________,  20[_], before me, a notary public in
and for  said  State,  personally  appeared  _____________,  known to me to be a
___________ of  [________________],  a  [__________]  banking  corporation  that
executed  the  within  instrument,  and also  known to me to be the  person  who
executed it on behalf of said banking  corporation  and  acknowledged to me that
such banking corporation executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             ________________________________
                                                       Notary Public

[SEAL]

                                     E-5-9
<PAGE>

STATE OF MINNESOTA             )
                               )ss.:
COUNTY OF HENNEPIN             )

      On the _____ day of _______________,  20[_], before me, a notary public in
and for said State, personally appeared ___________________, known to me to be a
_________________  of  Residential  Asset  Mortgage  Products,  Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said  corporation,  and  acknowledged  to me
that such corporation executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             ________________________________
                                                       Notary Public

[Notorial Seal]

                                     E-5-10
<PAGE>

STATE OF MINNESOTA             )
                               )ss.:
COUNTY OF HENNEPIN             )

      On the _____ day of _______________,  20[_], before me, a notary public in
and for said State, personally appeared ___________________, known to me to be a
_________________  of Residential  Funding  Company,  LLC, the Delaware  limited
liability company that executed the within  instrument,  and also known to me to
be the person who executed it on behalf of said limited liability  company,  and
acknowledged  to me that such  limited  liability  company  executed  the within
instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             ________________________________
                                                       Notary Public

[Notorial Seal]

                                     E-5-11
<PAGE>

STATE OF MINNESOTA             )
                               )ss.:
COUNTY OF HENNEPIN             )

      On the _____ day of _______________,  20[_], before me, a notary public in
and for said State, personally appeared ___________________, known to me to be a
_________________ of  [________________],  one of the corporations that executed
the within instrument,  and also known to me to be the person who executed it on
behalf  of  said  corporation,  and  acknowledged  to me that  such  corporation
executed the within instrument.

      IN WITNESS  WHEREOF,  I have  hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                             ________________________________
                                                       Notary Public

                                     E-5-12
<PAGE>

                                                            ANNEX I TO EXHIBIT E

                                FORM OF CUSTODIAN
                              INITIAL CERTIFICATION

                               [__________], 20[_]

[________________]
[________________]
[________________]

      Re:   Custodial Agreement,  dated as of [__________],  20[_], by and among
            [________________],   Residential  Asset  Mortgage  Products,  Inc.,
            Residential Funding Company, LLC and [________________], relating to
            Mortgage Asset-Backed Pass-Through Certificates, Series 20[_]-RZ[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
and  subject to Section  2.02 of the  Pooling  Agreement,  the  undersigned,  as
Custodian,  hereby  certifies  that it has  received  a  Custodial  File  (which
contains an original  Mortgage  Note or an original lost note  affidavit  with a
copy of the related  Mortgage Note) to the extent required in Section 2.01(b) of
the Pooling  Agreement with respect to each Mortgage Loan listed in the Mortgage
Loan Schedule, with any exceptions listed on Schedule A attached hereto.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                                     [________________]

                                         By: ___________________________________
                                         Name: _________________________________
                                         Title: ________________________________

                                     E-5-13
<PAGE>

                                                           ANNEX II TO EXHIBIT E

                     FORM OF CUSTODIAN INTERIM CERTIFICATION

                              ____________ __, 20__

[__________________]
[__________________]
[__________________]

      Re:   Custodial  Agreement,  dated as of  [___________]  1, 20[_],  by and
            among  [__________________],  Residential  Asset Mortgage  Products,
            Inc.,  Residential  Funding Company,  LLC and  [__________________],
            relating to Mortgage Asset-Backed Pass- Through Certificates, Series
            20[_]-RZ[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
the undersigned, as Custodian, hereby certifies that it has received a Custodial
File to the extent required pursuant to Section 2.01(b) of the Pooling Agreement
with respect to each Mortgage Loan listed in the Mortgage Loan Schedule,  and it
has  reviewed  the  Custodial  File  and  the  Mortgage  Loan  Schedule  and has
determined that: all required documents have been executed and received and that
such  documents  relate to the Mortgage  Loans  identified  on the Mortgage Loan
Schedule, with any exceptions listed on Schedule A attached hereto.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                         [__________________]

                                         By: ___________________________________
                                         Name: _________________________________
                                         Title: ________________________________

                                     E-5-14
<PAGE>

                                                          ANNEX III TO EXHIBIT E

                      FORM OF CUSTODIAN FINAL CERTIFICATION

                              ____________ __, 20__

[__________________]
[__________________]
[__________________]

Attention: Residential Asset Mortgage Products, Inc., Series 20[_]5-RZ[_]

      Re:   Custodial Agreement, dated as of [____________], 20[_], by and among
            [__________________],  Residential  Asset Mortgage  Products,  Inc.,
            Residential Funding Company, LLC and [__________________],  relating
            to  Mortgage   Asset-Backed  Pass-  Through   Certificates,   Series
            20[_]-RZ[_]

Ladies and Gentlemen:

      In accordance with Section 2.3 of the above-captioned Custodial Agreement,
the undersigned, as Custodian, hereby certifies that it has received a Custodial
File with respect to each Mortgage Loan listed in the Mortgage Loan Schedule and
it has  reviewed  the  Custodial  File and the  Mortgage  Loan  Schedule and has
determined  that: all required  documents  referred to in Section 2.01(b) of the
Pooling Agreement have been executed and received and that such documents relate
to the Mortgage Loans identified on the Mortgage Loan Schedule.

      Capitalized  words and  phrases  used  herein  shall  have the  respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                         [__________________]

                                         By: ___________________________________
                                         Name: _________________________________
                                         Title: ________________________________

                                     E-5-15
<PAGE>

                                                           ANNEX IV TO EXHIBIT E

                           FORM OF REQUEST FOR RELEASE

DATE:
TO:
RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Pooling and Servicing Agreement Dated:
Series#:
Account#:
Pool#:
Loan#:
MIN#:
Borrower Name(s):
Reason for Document Request: (circle one)    Mortgage Loan Prepaid in Full
                                             Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

________________________________
Residential Funding Company, LLC
Authorized Signature

****************************************************************

TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

            Enclosed Documents:   [ ] Promissory Note
                                  [ ] Primary Insurance Policy
                                  [ ] Mortgage or Deed of Trust
                                  [ ] Assignment(s) of Mortgage or Deed of Trust
                                  [ ] Title Insurance Policy
                                  [ ] Other: ________________________

___________________________
Name

___________________________
Title

___________________________
Date

                                     E-5-16
<PAGE>

                                                                       EXHIBIT F

                             MORTGAGE LOAN SCHEDULE

                      [ON FILE WITH TRUSTEE AND CUSTODIAN]

<PAGE>

                                                                       EXHIBIT G

                          FORMS OF REQUEST FOR RELEASE

DATE:
TO:
RE: REQUEST FOR RELEASE OF DOCUMENTS

In connection with the  administration of the pool of Mortgage Loans held by you
for the  referenced  pool,  we request  the  release of the  Mortgage  Loan File
described below.

Pooling and Servicing Agreement Dated:
Series#:
Account#:
Pool#:
Loan#:
MIN#:
Borrower Name(s):
Reason for Document Request: (circle one)    Mortgage Loan Prepaid in Full

                                             Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Pooling and Servicing Agreement."

________________________________
Residential Funding Company, LLC
Authorized Signature

****************************************************************

TO  CUSTODIAN/TRUSTEE:  Please acknowledge this request, and check off documents
being  enclosed  with a copy of this form.  You should retain this form for your
files in accordance with the terms of the Pooling and Servicing Agreement.

            Enclosed Documents:   [ ] Promissory Note
                                  [ ] Primary Insurance Policy
                                  [ ] Mortgage or Deed of Trust
                                  [ ] Assignment(s) of Mortgage or Deed of Trust
                                  [ ] Title Insurance Policy
                                  [ ] Other: ________________________

___________________________
Name

___________________________
Title

___________________________
Date

                                      G-2
<PAGE>

                                                                     EXHIBIT H-1

                    FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF                          )
                                  )ss.:
COUNTY OF                         )

      [NAME OF OFFICER], being first duly sworn, deposes and says:

      1. That he is [Title of Officer] of [Name of Owner]  (record or beneficial
owner  of  the   Mortgage   Asset-Backed   Pass-Through   Certificates,   Series
20[_]-RZ[_],  Class R-__ (the "Owner")),  a [savings institution]  [corporation]
duly  organized and existing  under the laws of [the State of  ________________]
[the United States], on behalf of which he makes this affidavit and agreement.

      2. That the Owner (i) is not and will not be a "disqualified organization"
or an electing large  partnership as of [date of transfer] within the meaning of
Section 860E(e)(5) and 775, respectively,  of the Internal Revenue Code of 1986,
as amended (the "Code") or an electing large partnership under Section 775(a) of
the Code,  (ii) will endeavor to remain other than a  disqualified  organization
for so long as it retains its ownership interest in the Class R-__ Certificates,
and (iii) is acquiring  the Class R-__  Certificates  for its own account or for
the  account  of  another  Owner from which it has  received  an  affidavit  and
agreement in substantially  the same form as this affidavit and agreement.  (For
this purpose, a "disqualified  organization" means an electing large partnership
under  Section  775 of the Code,  the  United  States,  any  state or  political
subdivision  thereof,  any  agency or  instrumentality  of any of the  foregoing
(other than an instrumentality all of the activities of which are subject to tax
and, except for the Federal Home Loan Mortgage Corporation,  a majority of whose
board of  directors  is not  selected  by any such  governmental  entity) or any
foreign government,  international organization or any agency or instrumentality
of such foreign  government  or  organization,  any rural  electric or telephone
cooperative, or any organization (other than certain farmers' cooperatives) that
is generally exempt from federal income tax unless such  organization is subject
to the tax on unrelated business taxable income).

      3.  That the  Owner  is aware  (i) of the tax  that  would be  imposed  on
transfers  of  Class  R-__  Certificates  to  disqualified  organizations  or an
electing  large  partnership  under the Code,  that applies to all  transfers of
Class R-__ Certificates after March 31, 1988; (ii) that such tax would be on the
transferor  (or, with respect to transfers to electing  large  partnerships,  on
each such  partnership),  or, if such transfer is through an agent (which person
includes a broker, nominee or middleman) for a disqualified organization, on the
agent;  (iii) that the person  (other than with respect to transfers to electing
large partnerships)  otherwise liable for the tax shall be relieved of liability
for the tax if the  transferee  furnishes to such person an  affidavit  that the
transferee is not a disqualified organization and, at the time of transfer, such
person does not have actual knowledge that the affidavit is false; and (iv) that
the Class R-__ Certificates may be "noneconomic  residual  interests" within the
meaning of Treasury  regulations  promulgated  pursuant to the Code and that the
transferor of a noneconomic  residual  interest will remain liable

                                     H-1-1
<PAGE>

for any taxes due with respect to the income on such residual  interest,  unless
no  significant  purpose  of  the  transfer  was to  impede  the  assessment  or
collection of tax.

      4. That the Owner is aware of the tax imposed on a  "pass-through  entity"
holding Class R-__ Certificates if either the pass-through entity is an electing
large  partnership  under  Section  775 of the Code or if at any time during the
taxable  year of the  pass-through  entity a  disqualified  organization  is the
record holder of an interest in such entity.  (For this purpose, a "pass through
entity" includes a regulated  investment company, a real estate investment trust
or common trust fund, a partnership, trust or estate, and certain cooperatives.)

      5. That the Owner is aware that the Trustee will not register the transfer
of any Class R-__ Certificates unless the transferee, or the transferee's agent,
delivers to it an affidavit and agreement,  among other things, in substantially
the same form as this affidavit and agreement.  The Owner expressly  agrees that
it will not consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

      6. That the Owner has reviewed the  restrictions  set forth on the face of
the Class R -__  Certificates  and the  provisions  of  Section  5.02(f)  of the
Pooling and Servicing  Agreement  under which the Class R-__  Certificates  were
issued (in  particular,  clause  (iii)(A) and (iii)(B) of Section  5.02(f) which
authorize  the Trustee to deliver  payments to a person other than the Owner and
negotiate  a  mandatory  sale by the  Trustee in the event the Owner  holds such
Certificates in violation of Section 5.02(f)).  The Owner expressly agrees to be
bound by and to comply with such restrictions and provisions.

      7. That the Owner consents to any additional  restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement  to ensure  that the  Class  R-__  Certificates  will only be owned,
directly or indirectly, by an Owner that is not a disqualified organization.

      8. The Owner's Taxpayer Identification Number is ____________________.

      9.  This   affidavit  and  agreement   relates  only  to  the  Class  R-__
Certificates  held by the Owner and not to any  other  holder of the Class  R-__
Certificates. The Owner understands that the liabilities described herein relate
only to the Class R-__ Certificates.

      10. That no purpose of the Owner  relating  to the  transfer of any of the
Class R-__  Certificates  by the Owner is or will be to impede the assessment or
collection of any tax; in making this  representation,  the Owner  warrants that
the Owner is  familiar  with (i)  Treasury  Regulation  1.860E-1(c)  and  recent
amendments  thereto,  effective  as of July 19,  2002,  and  (ii)  the  preamble
describing the adoption of the amendments to such regulation,  which is attached
hereto as Annex I.

      11. That the Owner has no present knowledge or expectation that it will be
unable  to  pay  any  United  States  taxes  owed  by it so  long  as any of the
Certificates remain outstanding.  In this regard, the Owner hereby represents to
and  for the  benefit  of the  person  from  whom it  acquired  the  Class  R-__
Certificate  that the Owner  intends to pay taxes  associated  with holding such
Class R-__ Certificate as they become due, fully understanding that it may incur
tax  liabilities  in  excess  of any cash  flows  generated  by the  Class  R-__
Certificate.

                                     H-1-2
<PAGE>

      12. That the Owner has no present  knowledge or  expectation  that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Class R-__ Certificates remain outstanding.

      13. The Owner is either (i) a citizen or  resident  of the United  States,
(ii) a  corporation,  partnership  or other entity treated as a corporation or a
partnership for U.S. federal income tax purposes and created or organized in, or
under the laws of, the United  States,  any state  thereof  or the  District  of
Columbia (other than a partnership that is not treated as a United States person
under any applicable Treasury regulations), (iii) an estate that is described in
Section 7701(a)(30)(D) of the Code, or (iv) a trust that is described in Section
7701(a)(30)(E) of the Code.

      14. The Owner  hereby  agrees that it will not cause income from the Class
R-__  Certificates to be attributable to a foreign  permanent  establishment  or
fixed base (within the meaning of an applicable  income tax treaty) of the Owner
or another United States taxpayer.

      15. The Owner hereby certifies,  represents and warrants to, and covenants
with the  Depositor,  the Trustee  and the Master  Servicer  that the  following
statement is accurate:

            The  Certificates  are  not  being  acquired  by,  and  will  not be
      transferred  to, any employee  benefit  plan or other plan or  arrangement
      subject  to  the  prohibited   transaction   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 any
      person (including an insurance  company investing its general account,  an
      investment  manager,  a named fiduciary or a trustee of any such plan) who
      is using "plan assets" of any such plan to effect such  acquisition  (each
      of the foregoing, a "Plan Investor").

      In addition,  the Owner hereby certifies,  represents and warrants to, and
covenants  with,  the  Depositor,  the Trustee and the Master  Servicer that the
Owner will not transfer such  Certificates to any Plan Investor or person unless
either such Plan  Investor  or person  meets the  requirements  set forth in the
statement above.

      Capitalized  terms used but not  defined  herein  shall have the  meanings
assigned in the Pooling and Servicing Agreement.

                                     H-1-3
<PAGE>

      IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf,  pursuant to the authority of its Board of Directors,  by its [Title
of Officer]  and its  corporate  seal to be hereunto  attached,  attested by its
[Assistant] Secretary, this ____ day of ______________ 20__.

                                        [NAME OF OWNER]

                                        By: ___________________________________
                                        [Name of Officer]
                                        [Title of Officer]

[Corporate Seal]

ATTEST:

______________________________
[Assistant] Secretary

            Personally  appeared  before me the  above-named  [Name of Officer],
known  or  proved  to me to be  the  same  person  who  executed  the  foregoing
instrument and to be the [Title of Officer] of the Owner, and acknowledged to me
that he executed  the same as his free act and deed and the free act and deed of
the Owner.

            Subscribed and sworn before me this day of           , 200_.

                                        ________________________________________
                                        NOTARY PUBLIC

                                        COUNTY OF ______________________________

                                        STATE OF _______________________________

                                        My Commission expires the ___ day of
                                        __________, 20__

                                     H-1-4
<PAGE>

                                                          ANNEX I TO EXHIBIT H-1

                           DEPARTMENT OF THE TREASURY

                            Internal Revenue Service

                             26 CFR Parts 1 and 602

                                    [TD 9004]

                                  RIN 1545-AW98

                    Real Estate Mortgage Investment Conduits

                AGENCY: Internal Revenue Service (IRS), Treasury.

                           ACTION: Final regulations.

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

SUMMARY:  This  document  contains  final  regulations  relating  to safe harbor
transfers of noneconomic  residual interests in real estate mortgage  investment
conduits (REMICs).  The final regulations provide additional  limitations on the
circumstances under which transferors may claim safe harbor treatment.

DATES: Effective Date: These regulations are effective July 19, 2002.

Applicability Date: For dates of applicability, see Sec. 1.860E-(1)(c)(10).

FOR FURTHER  INFORMATION  CONTACT:  Courtney Shepardson at (202) 622-3940 (not a
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

      The  collection of  information  in this final rule has been reviewed and,
pending  receipt and  evaluation of public  comments,  approved by the Office of
Management  and Budget (OMB) under 44 U.S.C.  3507 and assigned  control  number
1545-1675.

      The   collection   of   information   in  this   regulation   is  in  Sec.
1.860E-1(c)(5)(ii).  This  information  is  required to enable the IRS to verify
that a  taxpayer  is  complying  with the  conditions  of this  regulation.  The
collection of information is mandatory and is required.  Otherwise, the taxpayer
will not  receive  the  benefit of safe  harbor  treatment  as  provided  in the
regulation.   The  likely   respondents  are  businesses  and  other  for-profit
institutions.

      Comments on the collection of information  should be sent to the Office of
Management  and Budget,  Attn:  Desk Officer for the Department of the Treasury,
Office of Information and Regulatory Affairs, Washington, DC, 20503, with copies
to  the  Internal  Revenue  Service,   Attn:

                                     H-1-5
<PAGE>

IRS Reports Clearance Officer, W:CAR:MP:FP:S,  Washington, DC 20224. Comments on
the collection of information should be received by September 17, 2002. Comments
are specifically requested concerning:

      Whether  the  collection  of  information  is  necessary  for  the  proper
      performance of the functions of the Internal  Revenue  Service,  including
      whether the information will have practical utility;

      The accuracy of the estimated  burden  associated  with the  collection of
      information (see below);

      How the quality,  utility,  and clarity of the information to be collected
      may be enhanced;

      How the burden of complying  with the  collection  of  information  may be
      minimized,  including  through the  application  of  automated  collection
      techniques or other forms of information technology; and

      Estimates   of  capital  or  start-up   costs  and  costs  of   operation,
      maintenance, and purchase of service to provide information.

      An agency may not  conduct or  sponsor,  and a person is not  required  to
respond to, a  collection  of  information  unless it  displays a valid  control
number assigned by the Office of Management and Budget.

      The  estimated  total annual  reporting  burden is 470 hours,  based on an
estimated  number of respondents  of 470 and an estimated  average annual burden
hours per respondent of one hour.

      Books or records  relating to a collection of information must be retained
as long as their  contents  may become  material  in the  administration  of any
internal  revenue law.  Generally,  tax returns and tax return  information  are
confidential, as required by 26 U.S.C. 6103.

Background

      This document contains final regulations regarding the proposed amendments
to 26 CFR part 1 under  section  860E of the Internal  Revenue Code (Code).  The
regulations  provide the circumstances under which a transferor of a noneconomic
REMIC  residual   interest   meeting  the   investigation   and   representation
requirements  may avail  itself  of the safe  harbor by  satisfying  either  the
formula test or the asset test.

      Final  regulations   governing  REMICs,  issued  in  1992,  contain  rules
governing the transfer of noneconomic REMIC residual  interests.  In general,  a
transfer of a noneconomic  residual interest is disregarded for all tax purposes
if a significant  purpose of the transfer is to enable the  transferor to impede
the  assessment  or  collection  of tax. A purpose to impede the  assessment  or
collection of tax (a wrongful purpose) exists if the transferor,  at the time of
the  transfer,  either  knew or should have known that the  transferee  would be
unwilling or unable to pay taxes due on its share of the REMIC's taxable income.
Under a safe harbor, the transferor of a REMIC noneconomic  residual interest is
presumed not to have a wrongful purpose if two  requirements are satisfied:  (1)
the transferor conducts a reasonable investigation of the transferee's financial
condition (the  investigation  requirement);  and (2) the  transferor  secures a
representation from the transferee to the effect that the transferee understands
the tax obligations  associated with holding a residual  interest and intends to
pay those taxes (the representation requirement).

                                     H-1-6
<PAGE>

      The  IRS and  Treasury  have  been  concerned  that  some  transferors  of
noneconomic  residual  interests  claim they  satisfy  the safe  harbor  even in
situations  where the economics of the transfer  clearly indicate the transferee
is unwilling or unable to pay the tax associated with holding the interest.  For
this reason,  on February 7, 2000, the IRS published in the Federal Register (65
FR 5807) a notice of proposed rulemaking (REG-100276-97; REG-122450-98) designed
to clarify the safe harbor by adding the "formula  test," an economic  test. The
proposed  regulation  provides  that the safe harbor is  unavailable  unless the
present value of the  anticipated  tax  liabilities  associated with holding the
residual  interest  does not  exceed the sum of:  (1) The  present  value of any
consideration  given to the transferee to acquire the interest;  (2) the present
value of the expected future distributions on the interest;  and (3) the present
value of the anticipated tax savings associated with holding the interest as the
REMIC generates losses.

      The notice of proposed rulemaking also contained rules for FASITs. Section
1.860H-6(g) of the proposed regulations  provides  requirements for transfers of
FASIT  ownership  interests  and adopts a safe harbor by  reference  to the safe
harbor provisions of the REMIC  regulations.  In January 2001, the IRS published
Rev. Proc.  2001-12 (2001-3 I.R.B.  335) to set forth an alternative safe harbor
that taxpayers could use while the IRS and the Treasury  considered  comments on
the proposed  regulations.  Under the alternative  safe harbor,  if a transferor
meets the investigation  requirement and the representation  requirement but the
transfer  fails to meet the formula  test,  the  transferor  may invoke the safe
harbor if the  transferee  meets a two-prong test (the asset test). A transferee
generally  meets the first  prong of this test if, at the time of the  transfer,
and in each of the two years  preceding the year of transfer,  the  transferee's
gross  assets  exceed $100  million  and its net assets  exceed $10  million.  A
transferee  generally  meets the second  prong of this test if it is a domestic,
taxable  corporation  and agrees in writing not to transfer  the interest to any
person other than another domestic,  taxable corporation that also satisfies the
requirements  of the asset test. A  transferor  cannot rely on the asset test if
the transferor knows, or has reason to know, that the transferee will not comply
with its written agreement to limit the restrictions on subsequent  transfers of
the residual interest.

      Rev. Proc.  2001-12  provides that the asset test fails to be satisfied in
the case of a transfer or  assignment of a  noneconomic  residual  interest to a
foreign  branch of an  otherwise  eligible  transferee.  If such a  transfer  or
assignment  were  permitted,  a corporate  taxpayer might seek to claim that the
provisions of an applicable  income tax treaty would resource  excess  inclusion
income as foreign  source  income,  and that,  as a  consequence,  any U.S.  tax
liability attributable to the excess inclusion income could be offset by foreign
tax credits.  Such a claim would impede the assessment or collection of U.S. tax
on excess inclusion income,  contrary to the  congressional  purpose of assuring
that such income will be taxable in all events. See, e.g., sections  860E(a)(1),
(b), (e) and 860G(b) of the Code.

      The Treasury and the IRS have learned that certain taxpayers  transferring
noneconomic residual interests to foreign branches have attempted to rely on the
formula  test to obtain  safe  harbor  treatment  in an  effort  to  impede  the
assessment or collection of U.S. tax on excess  inclusion  income.  Accordingly,
the  final  regulations  provide  that if a  noneconomic  residual  interest  is
transferred  to a  foreign  permanent  establishment  or  fixed  base  of a U.S.
taxpayer,  the transfer is not eligible for safe harbor  treatment  under either
the asset  test or the  formula  test.  The  final  regulations  also  require a
transferee  to  represent  that it will not cause  income  from the  noneconomic
residual  interest to be attributable to a foreign  permanent  establishment  or
fixed base.

                                     H-1-7
<PAGE>

      Section  1.860E-1(c)(8)  provides  computational rules that a taxpayer may
use  to  qualify  for  safe  harbor  status  under  the  formula  test.  Section
1.860E-1(c)(8)(i)  provides that the transferee is presumed to pay tax at a rate
equal to the highest rate of tax specified in section 11(b).  Some  commentators
were  concerned that this presumed rate of taxation was too high because it does
not take into  consideration  taxpayers  subject to the alternative  minimum tax
rate. In light of the comments received,  this provision has been amended in the
final regulations to allow certain transferees that compute their taxable income
using the alternative  minimum tax rate to use the alternative  minimum tax rate
applicable to corporations.

      Additionally, Sec. 1.860E-1(c)(8)(iii) provides that the present values in
the  formula  test  are to be  computed  using  a  discount  rate  equal  to the
applicable  Federal  short-term  rate prescribed by section  1274(d).  This is a
change  from  the  proposed   regulation  and  Rev.  Proc.   2001-12.  In  those
publications  the  provision  stated that "present  values are computed  using a
discount rate equal to the applicable Federal rate prescribed in section 1274(d)
compounded  semiannually"  and that "[a] lower  discount rate may be used if the
transferee can demonstrate that it regularly borrows, in the course of its trade
or  business,  substantial  funds at such  lower  rate from an  unrelated  third
party." The IRS and the Treasury  Department  have learned  that,  based on this
provision,  certain taxpayers have been attempting to use unrealistically low or
zero interest rates to satisfy the formula test,  frustrating  the intent of the
test.  Furthermore,  the  Treasury  Department  and the IRS believe  that a rule
allowing  for a rate  other than a rate based on an  objective  index  would add
unnecessary complexity to the safe harbor. As a result, the rule in the proposed
regulations  that  permits a transferee  to use a lower  discount  rate,  if the
transferee can demonstrate that it regularly  borrows  substantial funds at such
lower rate, is not included in the final regulations; and the Federal short-term
rate  has  been  substituted  for  the  applicable  Federal  rate.  To  simplify
taxpayers' computations, the final regulations allow use of any of the published
short-term  rates,  provided  that  the  present  values  are  computed  with  a
corresponding  period  of  compounding.  With the  exception  of the  provisions
relating to transfers to foreign  branches,  these  changes  generally  have the
proposed  applicability  date of February 4, 2000,  but  taxpayers may choose to
apply the interest  rate formula set forth in the proposed  regulation  and Rev.
Proc. 2001-12 for transfers occurring before August 19, 2002.

      It is anticipated that when final  regulations are adopted with respect to
FASITs,  Sec.  1.860H-6(g)  of the  proposed  regulations  will  be  adopted  in
substantially  its  present  form,  with the result  that the final  regulations
contained  in this  document  will  also  govern  transfers  of FASIT  ownership
interests with substantially the same applicability date as is contained in this
document.

Effect on Other Documents

      Rev.  Proc.  2001-12  (2001-3  I.R.B.  335) is obsolete  for  transfers of
noneconomic residual interests in REMICs occurring on or after August 19, 2002.

Special Analyses

      It is hereby certified that these  regulations will not have a significant
economic impact on a substantial number of small entities. This certification is
based  on the  fact  that it is  unlikely  that a  substantial  number  of small
entities will hold REMIC residual interests. Therefore, a Regulatory Flexibility
Analysis  under  the  Regulatory  Flexibility  Act (5 U.S.C.  chapter  6) is not
required.  It  has  been  determined  that  this  Treasury  decision  is  not  a
significant regulatory action

                                     H-1-8
<PAGE>

as defined in Executive Order 12866.  Therefore,  a regulatory assessment is not
required.  It also has been  determined  that sections  553(b) and 553(d) of the
Administrative  Procedure  Act (5  U.S.C.  chapter  5) do  not  apply  to  these
regulations.

Drafting Information

      The principal author of these regulations is Courtney Shepardson. However,
other  personnel  from the IRS and  Treasury  Department  participated  in their
development.

List of Subjects

26 CFR Part 1

      Income taxes, Reporting and record keeping requirements.

26 CFR Part 602

      Reporting and record keeping requirements.

      Adoption of Amendments to the Regulations

      Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

      Paragraph 1. The  authority  citation for part 1 continues to read in part
as follows:

      Authority: 26 U.S.C. 7805 * * *

                                     H-1-9
<PAGE>

                                                                     EXHIBIT H-2

                         FORM OF TRANSFEROR CERTIFICATE

                                                         ________________, 200__

[________________]
[________________]
[________________]

[________________]
[________________]
[________________]

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_], Class R-

Ladies and Gentlemen:

      This  letter  is  delivered  to you in  connection  with the  transfer  by
________________________   (the   "Seller")   to   ______________________   (the
"Purchaser") of $___________  Initial Certificate  Principal Balance of Mortgage
Asset-Backed  Pass-Through  Certificates,  Series  20[_]-RZ[_],  Class R-__ (the
"Certificates"), pursuant to Section 5.02 of the Pooling and Servicing Agreement
(the "Pooling and Servicing  Agreement"),  dated as of [________]1,  20[_] among
Residential   Asset  Mortgage   Products,   Inc.,  as  seller  (the  "Company"),
Residential  Funding Company,  LLC, as master servicer (the "Master  Servicer"),
and [______________],  as trustee (the "Trustee"). All terms used herein and not
otherwise defined shall have the meanings set forth in the Pooling and Servicing
Agreement.  The  Seller  hereby  certifies,  represents  and  warrants  to,  and
covenants with, the Company and the Trustee that:

      1. No purpose of the Seller relating to the transfer of the Certificate by
the Seller to the Purchaser is or will be to impede the assessment or collection
of any tax.

      2. The Seller  understands that the Purchaser has delivered to the Trustee
and the Master Servicer a transfer  affidavit and agreement in the form attached
to the Pooling and Servicing  Agreement as Exhibit H-1. The Seller does not know
or believe that any representation contained therein is false.

      3. The  Seller  has at the time of the  transfer  conducted  a  reasonable
investigation  of the financial  condition of the Purchaser as  contemplated  by
Treasury  Regulations  Section  1.860E-1(c)(4)(i)  and,  as  a  result  of  that
investigation,  the Seller has  determined  that the Purchaser has  historically
paid its debts as they  become  due and has  found no  significant  evidence  to
indicate  that the  Purchaser  will not continue to pay its debts as they become
due in the  future.  The Seller  understands  that the  transfer of a Class R-__
Certificate  may not be respected for United States income tax purposes (and the
Seller may  continue  to be liable for

                                     H-2-1
<PAGE>

United States income taxes associated therewith) unless the Seller has conducted
such an investigation.

      4. The Seller has no actual knowledge that the proposed  Transferee is not
both a United States Person and a Permitted Transferee.

                                        Very truly yours,

                                        ________________________________________
                                        (Seller)

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                     H-2-2
<PAGE>

                                                                       EXHIBIT I

                     FORM OF INVESTOR REPRESENTATION LETTER

                                                               ___________, 20__

Residential Asset Mortgage Products, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[________________]
[________________]
[________________]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_], Class [B] [SB] [R-[ ]]

Ladies and Gentlemen:

      ____________________________________ (the "Purchaser") intends to purchase
from (the  "Seller")  $___________  Initial  Certificate  Principal  Balance  of
Mortgage Asset-Backed Pass-Through Certificates,  Series 20[_]-RZ[_],  Class [B]
[SB] [R-[ ]](the  "Certificates"),  issued pursuant to the Pooling and Servicing
Agreement  (the "Pooling and Servicing  Agreement"),  dated as of [_________] 1,
20[_]  among  Residential  Asset  Mortgage   Products,   Inc.,  as  seller  (the
"Company"),  Residential  Funding Company,  LLC, as master servicer (the "Master
Servicer"), and [__________________], as trustee (the "Trustee"). All terms used
herein  and not  otherwise  defined  shall  have the  meanings  set forth in the
Pooling and Servicing Agreement. The Purchaser hereby certifies,  represents and
warrants  to, and  covenants  with,  the  Company,  the  Trustee  and the Master
Servicer that:

      1. The Purchaser  understands that (a) the Certificates  have not been and
will not be registered or qualified under the Securities Act of 1933, as amended
(the "Act") or any state  securities  law, (b) the Company is not required to so
register or qualify the Certificates, (c) the Certificates may be resold only if
registered  and  qualified  pursuant to the  provisions  of the Act or any state
securities law, or if an exemption from such  registration and  qualification is
available,  (d)  the  Pooling  and  Servicing  Agreement  contains  restrictions
regarding the transfer of the Certificates and (e) the Certificates  will bear a
legend to the foregoing effect.

                                      I-1
<PAGE>

      2. The  Purchaser is acquiring  the  Certificates  for its own account for
investment  only  and not  with a view to or for  sale in  connection  with  any
distribution  thereof in any manner that would violate the Act or any applicable
state securities laws.

      3.  The  Purchaser  is  (a)  a  substantial,  sophisticated  institutional
investor having such knowledge and experience in financial and business matters,
and,  in  particular,  in such  matters  related  to  securities  similar to the
Certificates,  such that it is  capable  of  evaluating  the merits and risks of
investment in the  Certificates,  (b) able to bear the economic risks of such an
investment  and (c) an "accredited  investor"  within the meaning of Rule 501(a)
promulgated pursuant to the Act.

      4. The Purchaser has been  furnished  with,  and has had an opportunity to
review (a) [a copy of the Private Placement Memorandum,  dated ________________,
20__,  relating to the  Certificates  (b)] a copy of the  Pooling and  Servicing
Agreement and [b] [c] such other information  concerning the  Certificates,  the
Mortgage  Loans and the Company as has been  requested by the Purchaser from the
Company or the Seller and is  relevant to the  Purchaser's  decision to purchase
the  Certificates.  The Purchaser has had any questions arising from such review
answered by the Company or the Seller to the satisfaction of the Purchaser.  [If
the  Purchaser did not purchase the  Certificates  from the Seller in connection
with the initial  distribution of the  Certificates and was provided with a copy
of the Private Placement Memorandum (the "Memorandum")  relating to the original
sale (the "Original  Sale") of the  Certificates  by the Company,  the Purchaser
acknowledges  that such  Memorandum  was provided to it by the Seller,  that the
Memorandum  was prepared by the Company  solely for use in  connection  with the
Original  Sale and the Company did not  participate  in or facilitate in any way
the  purchase of the  Certificates  by the  Purchaser  from the Seller,  and the
Purchaser  agrees  that it will look solely to the Seller and not to the Company
with  respect  to any  damage,  liability,  claim  or  expense  arising  out of,
resulting from or in connection with (a) error or omission,  or alleged error or
omission,  contained in the Memorandum,  or (b) any information,  development or
event arising after the date of the Memorandum.]

      5. The  Purchaser  has not and will not nor has it  authorized  or will it
authorize  any  person to (a)  offer,  pledge,  sell,  dispose  of or  otherwise
transfer any  Certificate,  any interest in any Certificate or any other similar
security to any person in any manner,  (b) solicit any offer to buy or to accept
a pledge, disposition of other transfer of any Certificate,  any interest in any
Certificate  or any other similar  security  from any person in any manner,  (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general  solicitation  by means of general  advertising or in any other
manner or (e) take any other  action,  that (as to any of (a) through (e) above)
would  constitute a distribution  of any  Certificate  under the Act, that would
render the disposition of any Certificate a violation of Section 5 of the Act or
any state  securities law, or that would require  registration or  qualification
pursuant thereto.  The Purchaser will not sell or otherwise  transfer any of the
Certificates,  except in  compliance  with the  provisions  of the  Pooling  and
Servicing Agreement.

      6. The  Purchaser  hereby  certifies,  represents  and  warrants  to,  and
covenants  with the  Depositor,  the  Trustee and the Master  Servicer  that the
following statement is correct:

            The  Purchaser  is not an  employee  benefit  plan or other  plan or
      arrangement  subject  to  the  prohibited  transaction  provisions  of the
      Employee Retirement

                                      I-2
<PAGE>

      Income Security Act of 1974, as amended ("ERISA"),  or Section 4975 of the
      Internal  Revenue  Code of 1986,  as amended (the  "Code"),  or any person
      (including  an  insurance  company  investing  its  general  account,   an
      investment  manager,  a named fiduciary or a trustee of any such plan) who
      is using "plan assets" of any such plan to effect such  acquisition  (each
      of the foregoing, a "Plan Investor").

      In addition,  the Purchaser hereby certifies,  represents and warrants to,
and covenants  with, the Company,  the Trustee and the Master  Servicer that the
Purchaser  will not transfer  such  Certificates  to any Plan Investor or person
unless either such Plan Investor or person meets the  requirements  set forth in
the statement referred to in paragraph 6 above.

                                        Very truly yours,

                                        ________________________________________
                                        (Purchaser)

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                      I-3
<PAGE>

                                                                       EXHIBIT J

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                               ___________, 20__

Residential Asset Mortgage Products, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[________________]
[________________]
[________________]

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_], Class [B] [SB] [R-[ ]]

Ladies and Gentlemen:

      In  connection   with  the  sale  by   ____________   (the   "Seller")  to
_______________  (the  "Purchaser") of $_______  Initial  Certificate  Principal
Balance of Mortgage Asset-Backed Pass-Through Certificates,  Series 20[_]-RZ[_],
Class SB (the  "Certificates"),  issued  pursuant to the  Pooling and  Servicing
Agreement (the "Pooling and Servicing Agreement"),  dated as of [___________] 1,
20[_]  among  Residential  Asset  Mortgage   Products,   Inc.,  as  seller  (the
"Company"),   Residential  Funding  Company,   LLC,  as  master  servicer,   and
[______________],  as trustee  (the  "Trustee").  The Seller  hereby  certifies,
represents  and warrants  to, and  covenants  with,  the Company and the Trustee
that:

      Neither  the  Seller nor  anyone  acting on its  behalf  has (a)  offered,
pledged,  sold,  disposed  of or  otherwise  transferred  any  Certificate,  any
interest in any  Certificate or any other similar  security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate,  any interest in any Certificate or any other
similar security from any person in any manner, (c) has otherwise  approached or
negotiated with respect to any  Certificate,  any interest in any Certificate or
any other  similar  security  with any  person in any  manner,  (d) has made any
general  solicitation by means of general advertising or in any other manner, or
(e) has taken any other action,  that (as to any of (a) through (e) above) would
constitute a distribution of the  Certificates  under the Securities Act of 1933
(the "Act"), that would render the disposition of any Certificate a violation of
Section  5 of the  Act or any  state  securities  law,  or  that  would  require
registration or qualification pursuant thereto. The Seller will

                                      J-1
<PAGE>

not act, in any manner set forth in the  foregoing  sentence with respect to any
Certificate.  The Seller has not and will not sell or otherwise  transfer any of
the  Certificates,  except in compliance  with the provisions of the Pooling and
Servicing Agreement.

                                        Very truly yours,

                                        ________________________________________
                                        (Seller)

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                      J-2
<PAGE>

                                                                       EXHIBIT K

                         FORM OF FORM 10-K CERTIFICATION

      I, [identify the certifying individual], certify that:

      1. I have  reviewed  the annual  report on Form 10-K for the  fiscal  year
[____], and all reports on Form 8-K containing distribution or servicing reports
filed in respect of periods  included in the year covered by that annual report,
of the trust  (the  "Trust")  created  pursuant  to the  Pooling  and  Servicing
Agreement  dated  as of  [__________]  1,  20[_]  (the  "P&S  Agreement")  among
Residential  Asset  Mortgage  Corporation,  Inc.  (the  "Company"),  Residential
Funding Company, LLC (the "Master Servicer") and [__________] (the "Trustee");

      2. Based on my knowledge,  the  information in these  reports,  taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a  material  fact  necessary  to make  the  statements  made,  in  light  of the
circumstances  under which such  statements  were made, not misleading as of the
last day of the period covered by this annual report;

      3.  Based  on my  knowledge,  the  servicing  information  required  to be
provided  to the  Trustee by the Master  Servicer  under the P&S  Agreement  for
inclusion in these reports is included in these reports;

      4. I am responsible  for reviewing the activities  performed by the Master
Servicer  under the P&S  Agreement  and based upon my  knowledge  and the annual
compliance review required under the P&S Agreement,  and, except as disclosed in
the reports,  the Master  Servicer has fulfilled its  obligations  under the P&S
Agreement; and

      5. The  reports  disclose  all  significant  deficiencies  relating to the
Master Servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public  accountant,  after conducting a review
in compliance with the Uniform Single  Attestation  Program for Mortgage Bankers
as set forth in the P&S Agreement, that is included in these reports.

      In  giving  the  certifications  above,  I have  reasonably  relied on the
information provided to me by the following unaffiliated parties: [the Trustee].

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.

                                                    ____________________________
                                                    Name:
                                                    Title:

* to be signed by the senior officer in charge of the servicing functions of the
Master Servicer

                                      K-1
<PAGE>

                                                                       EXHIBIT L

             FORM OF BACK-UP CERTIFICATE TO FORM 10-K CERTIFICATION

      The undersigned, a Responsible Officer of [______________] (the "Trustee")
certifies that:

      1. The Trustee has performed all of the duties specifically required to be
performed  by it  pursuant  to the  provisions  of  the  Pooling  and  Servicing
Agreement  dated as of  [__________]  1,  20[_] (the  "Agreement")  by and among
Residential  Asset Mortgage  Products,  Inc. as depositor,  Residential  Funding
Company,  LLC,  as master  servicer,  and the  Trustee  in  accordance  with the
standards set forth therein.

      2. Based on my knowledge,  the list of  Certificateholders as shown on the
Certificate Register as of the end of each calendar year that is provided by the
Trustee  pursuant to the  Agreement  is accurate as of the last day of the 20[_]
calendar year.

      Capitalized  terms used and not  defined  herein  shall have the  meanings
given such terms in the Agreement.

      IN WITNESS WHEREOF, I have duly executed this certificate as of _________,
20__.

                                                    ____________________________
                                                    Name:
                                                    Title:

                                      L-1
<PAGE>

                                                                       EXHIBIT M

          FORM OF LENDER CERTIFICATION FOR ASSIGNMENT OF MORTGAGE LOAN

                                                               ___________, 20__

Residential Asset Mortgage Products, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[________________]
[________________]
[________________]

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_] Assignment of Mortgage Loan

Ladies and Gentlemen:

      This letter is  delivered  to you in  connection  with the  assignment  by
________________  (the  "Trustee") to  ______________________  (the "Lender") of
_______________ (the "Mortgage Loan") pursuant to Section 3.13(d) of the Pooling
and Servicing  Agreement  (the "Pooling and Servicing  Agreement"),  dated as of
[__________] 1, 20[_] among Residential Asset Mortgage Products, Inc., as seller
(the "Company"),  Residential Funding Company, LLC, as master servicer,  and the
Trustee. All terms used herein and not otherwise defined shall have the meanings
set forth in the Pooling and Servicing  Agreement.  The Lender hereby certifies,
represents  and warrants to, and  covenants  with,  the Master  Servicer and the
Trustee that:

      (i) the  Mortgage  Loan is  secured  by  Mortgaged  Property  located in a
jurisdiction  in which an  assignment  in lieu of  satisfaction  is  required to
preserve lien priority,  minimize or avoid mortgage recording taxes or otherwise
comply with, or facilitate a refinancing under, the laws of such jurisdiction;

      (ii)  the  substance  of the  assignment  is,  and is  intended  to be,  a
refinancing  of such Mortgage Loan and the form of the  transaction is solely to
comply with, or facilitate the transaction under, such local laws;

      (iii) the Mortgage Loan following the proposed assignment will be modified
to have a rate of interest at least  [0.25]  percent  below or above the rate of
interest on such Mortgage Loan prior to such proposed assignment; and

                                      M-1
<PAGE>

      (iv) such  assignment is at the request of the borrower  under the related
Mortgage Loan.

                                        Very truly yours,

                                        ________________________________________
                                        (Lender)

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                      M-2
<PAGE>

                                                                       EXHIBIT N

                   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 Seller,
the Trustee  and the Master  Servicer  (as defined in the Pooling and  Servicing
Agreement (the "Agreement"), dated as of [__________] 1, 20[_] among Residential
Funding Company,  LLC as Master Servicer,  Residential Asset Mortgage  Products,
Inc.   as   depositor   pursuant   to  Section   5.02  of  the   Agreement   and
[______________], as 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 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

<PAGE>

      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 of Class SB  Certificates  or Class R Certificates  is not an
employee  benefit plan or other plan or  arrangement  subject to the  prohibited
transaction  provisions  of ERISA or  Section  4975 of the Code,  or any  person
(including an insurance  company  investing its general  account,  an investment
manager,  a named  fiduciary  or a trustee of any such plan) who is using  "plan
assets" of any such plan to effect such acquisition.

      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.

                            [Signature Page Follows]

                                      N-2
<PAGE>

      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:_________________________________

                                      N-3
<PAGE>

                                                            ANNEX I TO EXHIBIT N

            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  $___________  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.

____  Corporations,  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.

                                      N-4
<PAGE>

____  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.

                                      N-5
<PAGE>

      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: _________________________________

                                      N-6
<PAGE>

                                                           ANNEX II TO EXHIBIT N

            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

                                      N-7
<PAGE>

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 ADVISER:

                                        Print Name of Buyer

                                        By: ____________________________________

                                            Name:
                                            Title:

                                            Date: ______________________________

                                      N-8
<PAGE>

                                                                       EXHIBIT O

                       FORM OF ERISA REPRESENTATION LETTER

                                                               ___________, 20__

Residential Asset Mortgage Products, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[____________________]
[____________________]
[____________________]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_], Class [__]

Ladies and Gentlemen:

            [____________________________________]  (the "Purchaser") intends to
purchase from  [______________________________]  (the "Seller")  $[____________]
Initial  Certificate  Principal  Balance of Mortgage  Asset-Backed  Pass-Through
Certificates,  Series  20[_]-RZ[_],  Class  ____  (the  "Certificates"),  issued
pursuant to the Pooling and  Servicing  Agreement  (the  "Pooling and  Servicing
Agreement"),  dated as of [_________] 1, 20[_] among  Residential Asset Mortgage
Products,  Inc., as the company (the "Depositor"),  Residential Funding Company,
LLC, as master servicer (the "Master  Servicer") and JPMorgan Chase Bank,  N.A.,
as trustee  (the  "Trustee").  All terms used herein and not  otherwise  defined
shall have the meanings set forth in the Pooling and  Servicing  Agreement.  The
Purchaser hereby certifies,  represents and warrants to, and covenants with, the
Depositor, the Trustee and the Master Servicer that:

            (a) The  Purchaser is not an employee  benefit or other plan subject
      to the prohibited transaction 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") (a "Plan"),  or any
      other person  (including an  investment  manager,  a named  fiduciary or a
      trustee  of any Plan)  acting,  directly  or  indirectly,  on behalf of or
      purchasing  any  Certificate  with "plan  assets"  of any Plan  within the
      meaning  of the  Department  of  Labor  ("DOL")  regulation  at 29  C.F.R.
      ss.2510.3-101; or

            (b) The  Purchaser  has provided the Trustee,  the Depositor and the
      Master  Servicer with an opinion of counsel  acceptable to and in form and
      substance  satisfactory  to the

                                      O-1
<PAGE>

      Trustee,  the  Depositor  and the Master  Servicer  to the effect that the
      purchase or holding of Certificates is permissible  under  applicable law,
      will not  constitute or result in any  non-exempt  prohibited  transaction
      under  Section  406 of ERISA or  Section  4975 of the Code (or  comparable
      provisions of any subsequent enactments) and will not subject the Trustee,
      the Depositor,  the Master Servicer or the Trust Fund to any obligation or
      liability  (including  obligations or  liabilities  under ERISA or Section
      4975 of the Code) in  addition  to those  undertaken  in the  Pooling  and
      Servicing Agreement.

            In addition, the Purchaser hereby certifies, represents and warrants
to, and covenants with, the Depositor,  the Trustee and the Master Servicer that
the Purchaser will not transfer such  Certificates  to any Plan or person unless
such Plan or person meets the requirements set forth in either (a) or (b) above.

                                        Very truly yours,

                                        ________________________________________
                                        (Purchaser)

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                      O-2
<PAGE>

                                                                       EXHIBIT P

                       FORM OF ERISA REPRESENTATION LETTER

                                                               ___________, 20__

Residential Asset Mortgage Products, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

[____________________]
[____________________]
[____________________]

Residential Funding Company, LLC
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

Attention: Residential Funding Company, LLC Series 20[_]-RZ[_]

      Re:   Residential Asset Mortgage Products, Inc.
            Mortgage Asset-Backed Pass-Through Certificates,
            Series 20[_]-RZ[_], Class [A-[ ]] [M-[ ]] [B]

Ladies and Gentlemen:

            [____________________________________]  (the "Purchaser") intends to
purchase from  [______________________________]  (the "Seller")  $[____________]
Initial  Certificate  Principal Balance of Mortgage  Asset-Backed  Pass-Through,
Series  20[_]-RZ[_]  (the  "Certificates"),  issued  pursuant to the Pooling and
Servicing  Agreement  (the  "Pooling  and  Servicing  Agreement"),  dated  as of
[_________]  1, 20[_],  among  Residential  Asset  Mortgage  Products,  Inc., as
depositor  (the  "Depositor"),  Residential  Funding  Company,  LLC,  as  master
servicer  (the  "Master  Servicer"),   and   [____________],   as  trustee  (the
"Trustee").  All terms used  herein  and not  otherwise  defined  shall have the
meanings set forth in the Pooling and Servicing Agreement.

            The  Purchaser  hereby  certifies,  represents  and warrants to, and
covenants with the Depositor, the Trustee and the Master Servicer that, either:

            (a) The  Purchaser is not an employee  benefit or other plan subject
      to the prohibited transaction 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") (a "Plan"),  or any
      other person  (including an  investment  manager,  a named  fiduciary or a
      trustee  of any Plan)  acting,  directly  or  indirectly,  on behalf of or
      purchasing  any  Certificate  with "plan  assets"  of any Plan  within the
      meaning  of the  Department  of  Labor  ("DOL")  regulation  at 29  C.F.R.
      ss.2510.3-101; or

                                      P-1
<PAGE>

            (b) The Purchaser is an insurance company,  the source of funds used
      to purchase or hold the  Certificates  is an  "insurance  company  general
      account",  as the term is  defined  in DOL  Prohibited  Transaction  Class
      Exemption ("PTCE") 95-60, and the conditions in Sections I and III of PTCE
      95-60 have been satisfied.

            In addition, the Purchaser hereby certifies, represents and warrants
to, and covenants with, the Seller, the Trustee and the Master Servicer that the
Purchaser will not transfer such  Certificates to any Plan or person unless that
Plan or person meets the requirements in either (a) or (b) above.

            The  Purchaser  hereby  agrees to  indemnify  and hold  harmless the
Company,  the Trustee,  the Master Servicer,  any Subservicer and the Trust Fund
from and against all  liabilities,  claims,  costs or expenses  incurred by such
parties as a result of a breach of any representation, warranty or covenant made
by the Purchaser herein.

                                        Very truly yours,

                                        By: ____________________________________
                                        Name: __________________________________
                                        Title: _________________________________

                                      P-2
<PAGE>

                                                                       EXHIBIT Q

         INFORMATION TO BE PROVIDED BY THE MASTER SERVICER TO THE RATING
            AGENCIES RELATING TO REPORTABLE MODIFIED MORTGAGE LOANS

Account number

Transaction Identifier
Unpaid Principal Balance prior to Modification
Next Due Date
Monthly Principal and Interest Payment
Total Servicing Advances
Current Interest Rate
Original Maturity Date
Original Term to Maturity (Months)
Remaining Term to Maturity (Months)
Trial Modification Indicator
Mortgagor Equity Contribution
Total Servicer Advances
Trial Modification Term (Months)
Trial Modification Start Date
Trial Modification End Date
Trial Modification Period Principal and Interest Payment
Trial Modification Interest Rate
Trial Modification Term
Rate Reduction Indicator
Interest Rate Post Modification
Rate Reduction Start Date
Rate Reduction End Date
Rate Reduction Term

Term Modified Indicator
Modified Amortization Period
Modified Final Maturity Date
Total Advances Written Off
Unpaid Principal Balance Written Off
Other Past Due Amounts Written Off
Write Off Date
Unpaid Principal Balance Post Write Off
Capitalization Indicator
Mortgagor Contribution
Total Capitalized Amount
Modification Close Date
Unpaid Principal Balance Post Capitalization Modification
Next Payment Due Date per Modification Plan
Principal and Interest Payment Post Modification

Interest Rate Post Modification
Payment Made Post Capitalization
Delinquency Status to Modification Plan

                                      Q-1
<PAGE>

                                                                       EXHIBIT R

                        SCHEDULE OF SWAP NOTIONAL AMOUNTS

                          (SEE SCHEDULE A TO EXHIBIT S)

                                      R-1
<PAGE>

                                                                       EXHIBIT S

                                 SWAP AGREEMENT

                                (SEE ATTACHMENT)

                                      S-1
<PAGE>

                                                                       EXHIBIT T

         SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

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

--------------------------------------------------------------------------------
                                                                   Applicable
                                  Servicing Criteria          Servicing Criteria
--------------------------------------------------------------------------------
  Reference                            Criteria
--------------------------------------------------------------------------------
                          General Servicing Considerations
--------------------------------------------------------------------------------
1122(d)(1)(i)               Policies   and    procedures   are
                      instituted to monitor any performance or
                      other  triggers and events of default in
                      accordance    with    the    transaction
                      agreements.
--------------------------------------------------------------------------------
1122(d)(1)(ii)              If    any    material    servicing
                      activities   are   outsourced  to  third
                      parties,  policies  and  procedures  are
                      instituted  to monitor the third party's
                      performance  and  compliance  with  such
                      servicing activities.
--------------------------------------------------------------------------------
1122(d)(1)(iii)             Any     requirements     in    the
                      transaction  agreements  to  maintain  a
                      back-up servicer for the pool assets are
                      maintained.
--------------------------------------------------------------------------------
1122(d)(1)(iv)              A  fidelity  bond and  errors  and
                      omissions  policy  is in  effect  on the
                      party  participating  in  the  servicing
                      function throughout the reporting period
                      in the amount of  coverage  required  by
                      and  otherwise  in  accordance  with the
                      terms of the transaction agreements.
--------------------------------------------------------------------------------
                         Cash Collection and Administration
--------------------------------------------------------------------------------
1122(d)(2)(i)               Payments   on  pool   assets   are        |X|
                      deposited into the appropriate custodial
                      bank  accounts and related bank clearing
                      accounts no more than two business  days
                      following receipt,  or such other number
                      of  days  specified  in the  transaction
                      agreements.
--------------------------------------------------------------------------------
1122(d)(2)(ii)              Disbursements    made   via   wire        |X|
                      transfer  on behalf of an  obligor or to
                      an investor are made only by  authorized
                      personnel.
--------------------------------------------------------------------------------
1122(d)(2)(iii)             Advances  of funds  or  guarantees
                      regarding  collections,  cash  flows  or
                      distributions, and any interest or other
                      fees  charged  for  such  advances,  are
                      made,
--------------------------------------------------------------------------------

                                      T-1
<PAGE>

--------------------------------------------------------------------------------
                                                                   Applicable
                                  Servicing Criteria          Servicing Criteria
--------------------------------------------------------------------------------
  Reference                            Criteria
--------------------------------------------------------------------------------
                      reviewed and approved as specified
                      in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(2)(iv)              The  related   accounts   for  the
                      transaction,   such  as   cash   reserve
                      accounts  or accounts  established  as a
                      form   of   overcollateralization,   are
                      separately    maintained   (e.g.,   with
                      respect to  commingling  of cash) as set
                      forth in the transaction agreements.
--------------------------------------------------------------------------------
1122(d)(2)(v)               Each    custodial    account    is
                      maintained   at  a   federally   insured
                      depository  institution  as set forth in
                      the transaction agreements. For purposes
                      of this  criterion,  "federally  insured
                      depository  institution" with respect to
                      a foreign financial  institution means a
                      foreign financial institution that meets
                      the  requirements of Rule 13k-1(b)(1) of
                      the Securities Exchange Act.
--------------------------------------------------------------------------------
1122(d)(2)(vi)              Unissued checks are safeguarded so
                      as to prevent unauthorized access.
--------------------------------------------------------------------------------
1122(d)(2)(vii)             Reconciliations  are prepared on a
                      monthly   basis  for  all   asset-backed
                      securities    related   bank   accounts,
                      including custodial accounts and related
                      bank    clearing     accounts.     These
                      reconciliations  are (A)  mathematically
                      accurate;   (B)   prepared   within   30
                      calendar  days after the bank  statement
                      cutoff  date,  or such  other  number of
                      days   specified   in  the   transaction
                      agreements; (C) reviewed and approved by
                      someone   other   than  the  person  who
                      prepared  the  reconciliation;  and  (D)
                      contain   explanations  for  reconciling
                      items.   These   reconciling  items  are
                      resolved  within  90  calendar  days  of
                      their original  identification,  or such
                      other  number of days  specified  in the
                      transaction agreements.
--------------------------------------------------------------------------------
                         Investor Remittances and Reporting
--------------------------------------------------------------------------------
1122(d)(3)(i)               Reports  to  investors,  including
                      those to be filed  with the  Commission,
                      are  maintained in  accordance  with the
                      transaction  agreements  and  applicable
                      Commission  requirements.  Specifically,
                      such   reports   (A)  are   prepared  in
                      accordance  with  timeframes  and  other
                      terms  set  forth  in  the   transaction
                      agreements;   (B)  provide   information
                      calculated in accordance  with the terms
                      specified in the transaction agreements;
                      (C) are  filed  with the
--------------------------------------------------------------------------------

                                      T-2
<PAGE>

--------------------------------------------------------------------------------
                                                                   Applicable
                                  Servicing Criteria          Servicing Criteria
--------------------------------------------------------------------------------
  Reference                            Criteria
--------------------------------------------------------------------------------
                      Commission  as required by its rules and
                      regulations;    and   (D)   agree   with
                      investors' or the  trustee's  records as
                      to the total  unpaid  principal  balance
                      and number of pool  assets  serviced  by
                      the servicer.
--------------------------------------------------------------------------------
1122(d)(3)(ii)              Amounts  due  to   investors   are        |X|
                      allocated  and  remitted  in  accordance
                      with timeframes,  distribution  priority
                      and   other   terms  set  forth  in  the
                      transaction agreements.
--------------------------------------------------------------------------------
1122(d)(3)(iii)             Disbursements  made to an investor        |X|
                      are posted  within two business  days to
                      the servicer's investor records, or such
                      other  number of days  specified  in the
                      transaction agreements.
--------------------------------------------------------------------------------
1122(d)(3)(iv)              Amounts  remitted to investors per        |X|
                      the   investor    reports   agree   with
                      cancelled   checks,  or  other  form  of
                      payment, or custodial bank statements.
--------------------------------------------------------------------------------
                             Pool Asset Administration
--------------------------------------------------------------------------------
1122(d)(4)(i)               Collateral  or  security  on  pool        |X|
                      assets is  maintained as required by the
                      transaction  agreements or related asset
                      pool documents.
--------------------------------------------------------------------------------
1122(d)(4)(ii)              Pool assets and related  documents        |X|
                      are   safeguarded  as  required  by  the
                      transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(iii)             Any    additions,    removals   or
                      substitutions  to  the  asset  pool  are
                      made,    reviewed    and   approved   in
                      accordance   with  any   conditions   or
                      requirements    in    the    transaction
                      agreements.
--------------------------------------------------------------------------------
1122(d)(4)(iv)              Payments on pool assets, including
                      any payoffs, made in accordance with the
                      related pool asset  documents are posted
                      to  the   servicer's   obligor   records
                      maintained  no more  than  two  business
                      days after receipt, or such other number
                      of  days  specified  in the  transaction
                      agreements,  and allocated to principal,
                      interest or other items  (e.g.,  escrow)
                      in  accordance  with  the  related  pool
                      asset documents.
--------------------------------------------------------------------------------

                                      T-3
<PAGE>

--------------------------------------------------------------------------------
                                                                   Applicable
                                  Servicing Criteria          Servicing Criteria
--------------------------------------------------------------------------------
  Reference                            Criteria
--------------------------------------------------------------------------------
1122(d)(4)(v)               The servicer's  records  regarding
                      the   pool   assets   agree   with   the
                      servicer's  records  with  respect to an
                      obligor's unpaid principal balance.
--------------------------------------------------------------------------------
1122(d)(4)(vi)              Changes  with respect to the terms
                      or status  of an  obligor's  pool  asset
                      (e.g., loan  modifications or re-agings)
                      are  made,   reviewed  and  approved  by
                      authorized  personnel in accordance with
                      the  transaction  agreements and related
                      pool asset documents.
--------------------------------------------------------------------------------
1122(d)(4)(vii)             Loss    mitigation   or   recovery
                      actions   (e.g.,    forbearance   plans,
                      modifications   and  deeds  in  lieu  of
                      foreclosure,       foreclosures      and
                      repossessions,    as   applicable)   are
                      initiated,  conducted  and  concluded in
                      accordance  with the timeframes or other
                      requirements    established    by    the
                      transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(viii)            Records   documenting   collection
                      efforts are maintained during the period
                      a pool asset is delinquent in accordance
                      with the  transaction  agreements.  Such
                      records  are  maintained  on at  least a
                      monthly  basis,  or  such  other  period
                      specified in the transaction agreements,
                      and describe the entity's  activities in
                      monitoring    delinquent   pool   assets
                      including,  for  example,  phone  calls,
                      letters and payment  rescheduling  plans
                      in cases  where  delinquency  is  deemed
                      temporary     (e.g.,      illness     or
                      unemployment).
--------------------------------------------------------------------------------
1122(d)(4)(ix)              Adjustments  to interest  rates or
                      rates of  return  for pool  assets  with
                      variable rates are computed based on the
                      related pool asset documents.
--------------------------------------------------------------------------------
1122(d)(4)(x)               Regarding  any funds held in trust
                      for   an   obligor   (such   as   escrow
                      accounts):  (A) such funds are analyzed,
                      in accordance  with the  obligor's  pool
                      asset  documents,  on at least an annual
                      basis, or such other period specified in
                      the transaction agreements; (B) interest
                      on such funds is paid,  or credited,  to
                      obligors in accordance  with  applicable
                      pool asset documents and state laws; and
                      (C)  such  funds  are  returned  to  the
                      obligor  within 30 calendar days of full
                      repayment of the related pool asset,  or
                      such other  number of days  specified in
                      the transaction agreements.
--------------------------------------------------------------------------------

                                      T-4
<PAGE>

--------------------------------------------------------------------------------
                                                                   Applicable
                                  Servicing Criteria          Servicing Criteria
--------------------------------------------------------------------------------
  Reference                            Criteria
--------------------------------------------------------------------------------
1122(d)(4)(xi)              Payments  made  on  behalf  of  an
                      obligor   (such  as  tax  or   insurance
                      payments)  are  made  on or  before  the
                      related penalty or expiration  dates, as
                      indicated  on the  appropriate  bills or
                      notices for such payments, provided that
                      such  support  has been  received by the
                      servicer at least 30 calendar days prior
                      to these dates,  or such other number of
                      days   specified   in  the   transaction
                      agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xii)             Any  late  payment   penalties  in
                      connection  with any  payment to be made
                      on  behalf of an  obligor  are paid from
                      the servicer's  funds and not charged to
                      the obligor, unless the late payment was
                      due to the obligor's error or omission.
--------------------------------------------------------------------------------
1122(d)(4)(xiii)            Disbursements made on behalf of an
                      obligor are posted  within two  business
                      days to the obligor's records maintained
                      by the servicer, or such other number of
                      days   specified   in  the   transaction
                      agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xiv)             Delinquencies,   charge-offs   and
                      uncollectible  accounts  are  recognized
                      and  recorded  in  accordance  with  the
                      transaction agreements.
--------------------------------------------------------------------------------
1122(d)(4)(xv)              Any external  enhancement or other
                      support,  identified in Item  1114(a)(1)
                      through  (3) or Item 1115 of  Regulation
                      AB,  is  maintained  as set forth in the
                      transaction agreements.
--------------------------------------------------------------------------------

                                      T-5EXHIBIT 10.2

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

      ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of [________] [__], 20[___],
between Residential  Funding Company,  LLC, a Delaware limited liability company
("RFC") and Residential Asset Mortgage  Products,  Inc., a Delaware  corporation
(the "Company").

                                    Recitals

            A. RFC has entered into seller contracts  ("Seller  Contracts") with
the seller/servicers pursuant to which such seller/servicers sell mortgage loans
to RFC.

            B. The Company  wishes to purchase from RFC certain  Mortgage  Loans
(as hereinafter defined) originated pursuant to the Seller Contracts.

            C. The  Company,  RFC,  as master  servicer,  and  [__________],  as
trustee (the  "Trustee"),  are entering into a Pooling and  Servicing  Agreement
dated as of [________]  [__],  20[___] (the "Pooling and Servicing  Agreement"),
pursuant  to which the  Trust  will  issue  Mortgage  Asset-Backed  Pass-Through
Certificates,   Series   20[__]-RZ[__]   (the   "Certificates")   consisting  of
[twenty-five  classes  designated as Class A-1, Class A-2, Class A-3, Class M-1,
Class M-2,  Class M-3,  Class M-4,  Class M-5,  Class M-6, Class M-7, Class M-8,
Class M-9, Class B-1, Class B-2, Class B-3, Class SB, Class R-I and Class R-II],
representing beneficial ownership interests in a trust fund consisting primarily
of a pool of fixed  and  adjustable  rate  one- to  four-family  mortgage  loans
identified on Exhibit F to the Pooling and Servicing  Agreement  (the  "Mortgage
Loans").

            D. In  connection  with the  purchase  of the  Mortgage  Loans,  the
Company  will  assign to RFC a de  minimis  portion  of the [Class R-I and Class
R-II] Certificates (the "Retained Certificates").

            E. In  connection  with the purchase of the  Mortgage  Loans and the
issuance of the  Certificates,  RFC wishes to make certain  representations  and
warranties to the Company.

            F. The  Company  and RFC intend  that the  conveyance  by RFC to the
Company  of all its  right,  title and  interest  in and to the  Mortgage  Loans
pursuant to this Agreement shall constitute a purchase and sale and not a loan.

      NOW THEREFORE,  in  consideration  of the recitals and the mutual promises
herein and other good and valuable consideration, the parties agree as follows:

            1. All capitalized  terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

            2. Concurrently  with the execution and delivery hereof,  RFC hereby
assigns to the Company without recourse all of its right,  title and interest in
and to the Mortgage Loans,  including all interest and principal  received on or
with respect to the Mortgage  Loans after the Cut-off Date (other than  payments
of principal and interest due on the Mortgage Loans in the
<PAGE>

month of the  Cut-off  Date).  In  consideration  of such  assignment,  RFC will
receive from the Company,  in immediately  available  funds,  an amount equal to
$[________],  including  accrued  interest,  and the Retained  Certificates.  In
connection  with such  assignment  and at the  Company's  direction,  RFC has in
respect of each Mortgage Loan endorsed the related Mortgage Note (other than any
Destroyed  Mortgage Note, as defined in the following  sentence) to the order of
the Trustee and delivered an  assignment  of mortgage in recordable  form to the
Trustee or its  agent.  A  Destroyed  Mortgage  Note  means a Mortgage  Note the
original of which was permanently lost or destroyed.

            The Company and RFC intend that the conveyance by RFC to the Company
of all its right,  title and interest in and to the Mortgage  Loans  pursuant to
this  Section 2 shall be, and be construed  as, a sale of the Mortgage  Loans by
RFC to the Company. It is, further,  not intended that such conveyance be deemed
to be a pledge of the  Mortgage  Loans by RFC to the Company to secure a debt or
other obligation of RFC.  Nonetheless,  (a) this Agreement is intended to be and
hereby is deemed to be a security agreement within the meaning of Articles 8 and
9 of the Minnesota  Uniform  Commercial Code and the Uniform  Commercial Code of
any other  applicable  jurisdiction;  (b) the  conveyance  provided  for in this
Section  shall be  deemed  to be a grant  by RFC to the  Company  of a  security
interest in all of RFC's right  (including  the power to convey title  thereto),
title and interest,  whether now owned or hereafter acquired,  in and to (A) the
Mortgage  Loans,  including  the  Mortgage  Notes,  the  Mortgages,  any related
insurance  policies and all other documents in the related  Mortgage Files,  (B)
all amounts payable  pursuant to the Mortgage Loans in accordance with the terms
thereof and (C) any and all general  intangibles  consisting of, arising from or
relating to any of the foregoing, and all proceeds of the conversion,  voluntary
or  involuntary,  of the foregoing into cash,  instruments,  securities or other
property,  including,  without limitation, all amounts from time to time held or
invested in the  Certificate  Account or the Custodial  Account,  whether in the
form of cash,  instruments,  securities or other property; (c) the possession by
the Trustee,  the Custodian or any other agent of the Trustee of Mortgage  Notes
or such other  items of  property  as  constitute  instruments,  money,  payment
intangibles,  negotiable documents,  goods, deposit accounts, letters of credit,
advices of credit, investment property, certificated securities or chattel paper
shall be deemed to be  "possession  by the secured  party",  or  possession by a
purchaser  or a  person  designated  by such  secured  party,  for  purposes  of
perfecting the security interest  pursuant to the Minnesota  Uniform  Commercial
Code  and the  Uniform  Commercial  Code of any  other  applicable  jurisdiction
(including,  without limitation,  Sections 8-106, 9-313 and 9-106 thereof);  and
(d)  notifications  to  persons  holding  such  property,  and  acknowledgments,
receipts or  confirmations  from persons holding such property,  shall be deemed
notifications to, or acknowledgments,  receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
of perfecting  such security  interest under  applicable  law. RFC shall, to the
extent  consistent with this Agreement,  take such reasonable  actions as may be
necessary to ensure  that,  if this  Agreement  were deemed to create a security
interest in the Mortgage  Loans and the other  property  described  above,  such
security  interest would be deemed to be a perfected  security interest of first
priority under applicable law and will be maintained as such throughout the term
of this Agreement.  Without limiting the generality of the foregoing,  RFC shall
prepare  and  deliver to the  Company  not less than 15 days prior to any filing
date, and the Company shall file, or shall cause to be filed,  at the expense of
RFC, all filings necessary to maintain the effectiveness of any original filings
necessary under the Uniform  Commercial Code as in effect in any jurisdiction to
perfect the Company's security interest in or lien on the

                                       2
<PAGE>

Mortgage Loans including without limitation (x) continuation statements, and (y)
such other  statements  as may be occasioned by (1) any change of name of RFC or
the  Company,  (2) any change of  location  of the place of  business,  state of
formation  or the chief  executive  office of RFC,  or (3) any  transfer  of any
interest of RFC in any Mortgage Loan.

            3. Concurrently with the execution and delivery hereof,  the Company
hereby assigns to RFC without  recourse all of its right,  title and interest in
and to the Retained  Certificates as part of the consideration payable to RFC by
the Company pursuant to this Agreement.

            4. RFC  represents  and  warrants to the Company that on the date of
execution  hereof  (or,  if  otherwise  specified  below,  as  of  the  date  so
specified):

            (a) The information set forth in the Mortgage Loan Schedule for such
      Mortgage Loans is true and correct in all material respects as of the date
      or dates respecting which such information is furnished;

            (b) Each  Mortgage  Loan  constitutes  a  qualified  mortgage  under
      Section  860G(a)(3)(A)  of  the  Code  and  Treasury  Regulations  Section
      1.860G-2(a)(1);

            (c) Immediately prior to the conveyance of the Mortgage Loans to the
      Company,  RFC had good title to, and was the sole owner of, each  Mortgage
      Loan free and clear of any pledge, lien,  encumbrance or security interest
      (other  than  rights  to  servicing  and  related  compensation)  and such
      conveyance  validly  transfers  ownership  of the  Mortgage  Loans  to the
      Company  free and  clear of any  pledge,  lien,  encumbrance  or  security
      interest;

            (d) Each  Mortgage  Note  constitutes  a legal,  valid  and  binding
      obligation  of the  Mortgagor  enforceable  in  accordance  with its terms
      except  as  limited  by  bankruptcy,  insolvency  or  other  similar  laws
      affecting generally the enforcement of creditors' rights;

            (e) To the best of RFC's knowledge as of the Cut-off Date,  there is
      no default,  breach, violation or event of acceleration existing under the
      terms of any Mortgage Note or Mortgage and no event which, with notice and
      expiration  of any  grace or cure  period,  would  constitute  a  default,
      breach, violation or event of acceleration under the terms of any Mortgage
      Note or  Mortgage,  and no such  default,  breach,  violation  or event of
      acceleration  has been  waived by RFC or by any other  entity  involved in
      servicing a Mortgage Loan;

            (f) As of the Cut-off Date, [none] of the Mortgage Loans are 30 days
      or more delinquent in payment of principal and interest;

            (g) [None] of the Mortgage Loans are Buydown Mortgage Loans;

            (h) To the best of RFC's  knowledge,  there is no delinquent  tax or
      assessment lien against any related Mortgaged Property;

                                       3
<PAGE>

            (i)  No  Mortgagor  has  any  valid  right  of  offset,  defense  or
      counterclaim as to the related Mortgage Note or Mortgage, except as may be
      provided under the Relief Act;

            (j) No  Mortgage  Loan  provides  for  payments  that are subject to
      reduction by withholding taxes levied by any foreign  (non-United  States)
      sovereign government;

            (k) (1) The proceeds of each Mortgage Loan have been fully disbursed
      and (2) to the best of Seller's  knowledge,  there is no  requirement  for
      future advances  thereunder and any and all  requirements as to completion
      of any on-site or off-site  improvements  and as to  disbursements  of any
      escrow  funds  therefor  (including  any escrow funds held to make Monthly
      Payments pending completion of such improvements) have been complied with.
      All costs, fees and expenses incurred in making,  closing or recording the
      Mortgage Loans were paid;

            (l) To the best of RFC's  knowledge,  with respect to each  Mortgage
      Loan,  there are no mechanics' liens or claims for work, labor or material
      affecting any Mortgaged  Property  which are or may be a lien prior to, or
      equal with, the lien of the related  Mortgage,  except such liens that are
      insured or indemnified against by a title insurance policy;

            (m) With respect to each Mortgage Loan, a policy of title  insurance
      was  effective  as of the  closing  of each  Mortgage  Loan,  is valid and
      binding,  and  remains in full  force and  effect,  unless  the  Mortgaged
      Properties are located in the State of Iowa and an attorney's  certificate
      has been provided;

            (n) To the best of RFC's knowledge,  each Mortgaged Property is free
      of damage and in good repair and no notice of condemnation  has been given
      with  respect  thereto and RFC knows of nothing  involving  any  Mortgaged
      Property that could reasonably be expected to materially  adversely affect
      the value or marketability of any Mortgaged Property;

            (o) Each  Mortgage  contains  customary and  enforceable  provisions
      which render the rights and remedies of the holder adequate to realize the
      benefits of the security against the Mortgaged Property,  including (i) in
      the case of a Mortgage that is a deed of trust, by trustee's sale, or (ii)
      by judicial foreclosure or, if applicable,  non-judicial foreclosure,  and
      to the best of RFC's  knowledge,  there is no homestead or other exemption
      available to the Mortgagor that would interfere with such right to sell at
      a  trustee's  sale or  right  to  foreclosure,  subject  in  each  case to
      applicable federal and state laws and judicial  precedents with respect to
      bankruptcy and right of redemption;

            (p) To the best of RFC's  knowledge,  with respect to each  Mortgage
      that is a deed of trust, a trustee duly qualified under  applicable law to
      serve as such is properly  named,  designated  and serving,  and except in
      connection with a trustee's sale after default by a Mortgagor,  no fees or
      expenses  are  payable  by the  seller  or RFC to the  trustee  under  any
      Mortgage that is a deed of trust;

            (q) If the  improvements  securing a Mortgage  Loan are located in a
      federal  designated  special  flood  hazard area,  flood  insurance in the
      amount required under the

                                       4
<PAGE>

      Program Guide covers such Mortgaged Property (either by coverage under the
      federal flood insurance program or by coverage from private insurers);

            (r) With  respect  to each  Mortgage  Loan,  any  appraisal  made in
      connection  with  the  origination  of the  Mortgage  Loan  was made by an
      appraiser who meets the minimum qualifications for appraisers as specified
      in the Program Guide;

            (s) Each  Mortgage  Loan is covered by a standard  hazard  insurance
      policy;

            (t)  To  the  best  of  RFC's  knowledge,  any  escrow  arrangements
      established  with respect to any Mortgage Loan are in compliance  with all
      applicable  local,  state and federal laws and are in compliance  with the
      terms of the related Mortgage Note;

            (u) No Mortgage Loan was  originated on or after October 1, 2002 and
      before March 7, 2003, which is secured by property located in the State of
      Georgia;

            (v) As of the Cut-off Date, [none] of the Mortgage Loans are secured
      by a  leasehold  estate.  If any of the  Mortgage  Loans are  secured by a
      leasehold interest,  with respect to each leasehold  interest:  the use of
      leasehold  estates for residential  properties is an accepted  practice in
      the area where the related  Mortgaged  Property  is  located;  residential
      property  in  such  area  consisting  of  leasehold   estates  is  readily
      marketable;  the lease is recorded and no party is in any way in breach of
      any provision of such lease; the leasehold is in full force and effect and
      is not  subject to any prior lien or  encumbrance  by which the  leasehold
      could be terminated or subject to any charge or penalty; and the remaining
      term of the  lease  does not  terminate  less  than ten  years  after  the
      maturity date of such Mortgage Loan;

            (w) Each Mortgage Loan as of the time of its origination complied in
      all material respects with all applicable  local,  state and federal laws,
      including, but not limited to, all applicable predatory lending laws;

            (x) [None] of the Mortgage  Loans are subject to the Home  Ownership
      and Equity  Protection Act of 1994. [None] of the Mortgage Loans are loans
      that,  under  applicable  state  or  local  law in  effect  at the time of
      origination  of the loan,  are referred to as (1) "high cost" or "covered"
      loans or (2) any other  similar  designation  if the law  imposes  greater
      restrictions or additional legal liability for residential  mortgage loans
      with high interest rates, points and/or fees;

            (y) To the  best  of  RFC's  knowledge,  the  Subservicer  for  each
      Mortgage Loan has accurately and fully reported its borrower  credit files
      to each of the Credit Repositories in a timely manner;

            (z) [None] of the proceeds of any Mortgage Loan were used to finance
      the purchase of single premium credit insurance policies;

            (aa) No  Mortgage  Loan is a High  Cost  Loan or  Covered  Loan,  as
      applicable  (as such  terms are  defined  in the then  current  Standard &
      Poor's  LEVELS(R)  Glossary which is now Version 5.7 Revised,  Appendix E)
      (attached hereto as Exhibit A));

                                       5
<PAGE>

      provided that no  representation  and warranty is made in this clause (aa)
      with respect to any Mortgage Loan secured by a Mortgaged  Property located
      in the States of Kansas or West  Virginia;  and  provided  further that no
      Qualified  Substitute  Mortgage  Loan shall be a High Cost Loan or Covered
      Loan (as such  terms are  defined in  Appendix E of the  Standard & Poor's
      Glossary  For  File  Format  For  LEVELS(R)  in  effect  on  the  date  of
      substitution,  with such exceptions  thereto as the Company and Standard &
      Poor's may reasonably agree);

            (bb)  No  Mortgage   Property   consists  of  a  mobile  home  or  a
      manufactured   housing  unit  that  is  not  permanently  affixed  to  its
      foundation;

            (cc) The  proceeds of the Mortgage  Loan have been fully  disbursed,
      there is no requirement for future advances thereunder;

            (dd) With respect to each  Mortgage  Loan,  either (i) each Mortgage
      Loan contains a customary provision for the acceleration of the payment of
      the unpaid principal balance of the Mortgage Loan in the event the related
      Mortgaged  Property  is sold  without the prior  consent of the  mortgagee
      thereunder or (ii) the Mortgage Loan is assumable pursuant to the terms of
      the Mortgage Note;

            (ee) No Mortgage  Loan has a  prepayment  penalty  term that extends
      beyond five years after the date of origination; and

            (ff) No Mortgage  Loan  provides for  deferred  interest or negative
      amortization.

      Upon  discovery by RFC or upon notice from the Company or the Trustee of a
breach  of the  foregoing  representations  and  warranties  in  respect  of any
Mortgage  Loan,  or upon the  occurrence  of a Repurchase  Event as described in
Section 5 below,  which  materially  and adversely  affects the interests of any
holders of the  Certificates  or the Company in such  Mortgage  Loan  (notice of
which breach or occurrence shall be given to the Company by RFC, if it discovers
the same),  RFC  shall,  within 90 days after the  earlier of its  discovery  or
receipt of notice  thereof,  either cure such breach or Repurchase  Event in all
material  respects  or,  except as  otherwise  provided  in Section  2.04 of the
Pooling and Servicing Agreement, either (i) purchase such Mortgage Loan from the
Trustee or the  Company,  as the case may be, at a price  equal to the  Purchase
Price for such Mortgage Loan or (ii) substitute a Qualified  Substitute Mortgage
Loan  or  Loans  for  such  Mortgage  Loan  in the  manner  and  subject  to the
limitations set forth in Section 2.04 of the Pooling and Servicing Agreement. If
the breach of  representation  and warranty that gave rise to the  obligation to
repurchase  or  substitute  a Mortgage  Loan  pursuant to this Section 4 was the
representation  set forth in clause (w) of this Section 4, then RFC shall pay to
the Trust Fund,  concurrently  with and in addition to the remedies  provided in
the preceding  sentence,  an amount equal to any  liability,  penalty or expense
that was actually  incurred and paid out of or on behalf of the Trust Fund,  and
that directly  resulted  from such breach,  or if incurred and paid by the Trust
Fund thereafter, concurrently with such payment.

            5.  With  respect  to  each  Mortgage   Loan,  a  repurchase   event
("Repurchase  Event") shall have  occurred if it is  discovered  that, as of the
date  hereof,  the  related  Mortgage  was not a valid first lien on the related
Mortgaged Property subject only to (i) the lien of real

                                       6
<PAGE>

property  taxes  and  assessments  not  yet  due and  payable,  (ii)  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 listed in the Program Guide and (iii) other
matters to which like  properties  are commonly  subject which do not materially
adversely  affect the value,  use,  enjoyment or  marketability of the Mortgaged
Property. In addition, with respect to any Mortgage Loan as to which the Company
delivers  to the  Trustee or the  Custodian  an  affidavit  certifying  that the
original  Mortgage  Note has  been  lost or  destroyed,  if such  Mortgage  Loan
subsequently  is in  default  and  the  enforcement  thereof  or of the  related
Mortgage  is  materially  adversely  affected  by the  absence  of the  original
Mortgage Note, a Repurchase  Event shall be deemed to have occurred and RFC will
be obligated to repurchase  or  substitute  for such Mortgage Loan in the manner
set forth in Section 4 above.

            RFC hereby represents and warrants to the Company that, with respect
to each  Mortgage  Loan,  the REMIC's tax basis in each  Mortgage Loan as of the
Closing  Date is equal to or greater than 100% of the Stated  Principal  Balance
thereof.

                            [Signature Page Follows]

                                       7
<PAGE>

            This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective  successors and assigns, and no other person
shall have any right or obligation hereunder.

      IN WITNESS  WHEREOF,  the parties have entered  into this  Assignment  and
Assumption Agreement as of the date first above written.

                                                RESIDENTIAL FUNDING COMPANY, LLC

                                                By: ____________________________
                                                    Name:
                                                    Title:

                                                RESIDENTIAL ASSET MORTGAGE
                                                PRODUCTS, INC.

                                                By: ____________________________
                                                    Name:
                                                    Title:
<PAGE>

                                    EXHIBIT A

                APPENDIX E OF THE STANDARD & POOR'S GLOSSARY FOR
                      FILE FORMAT FOR LEVELS(R) VERSION 5.7

                                REVISED [________] [__], 20[___]

           APPENDIX E - Standard & Poor's Predatory Lending Categories

      Standard & Poor's has categorized loans governed by anti-predatory lending
laws in the  Jurisdictions  listed  below  into  three  categories  based upon a
combination  of factors that include (a) the risk exposure  associated  with the
assignee  liability  and (b) the tests and  thresholds  set forth in those laws.
Note that  certain  loans  classified  by the  relevant  statute as Covered  are
included in  Standard & Poor's High Cost Loan  Category  because  they  included
thresholds and tests that are typical of what is generally  considered High Cost
by the industry.

      Standard & Poor's High Cost Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Arkansas                     Arkansas Home Loan Protection Act, Ark. Code         High Cost Home Loan
                             Ann. ss.ss. 23-53-101 et seq.

                             Effective July 16, 2003
---------------------------------------------------------------------------------------------------------------
Cleveland Heights, OH        Ordinance No. 72-2003 (PSH), Mun. Code ss.ss.        Covered Loan
                             757.01 et seq.

                             Effective June 2, 2003
---------------------------------------------------------------------------------------------------------------
Colorado                     Consumer Equity Protection, Colo. Stat. Ann.         Covered Loan
                             ss.ss. 5-3.5-101 et seq.

                             Effective for covered loans offered or
                             entered into on or after January 1, 2003.
                             Other provisions of the Act took effect on
                             June 7, 2002
---------------------------------------------------------------------------------------------------------------
Connecticut                  Connecticut Abusive Home Loan Lending Practices      High Cost Home Loan
                             Act, Conn. Gen. Stat. ss.ss. 36a-746 et seq.

                             Effective October 1, 2001
---------------------------------------------------------------------------------------------------------------
District of Columbia         Home Loan Protection Act, D.C. Code ss.ss.           Covered Loan
                             26-1151.01 et seq.

                             Effective for loans closed on or after
                             January 28, 2003
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       A-1
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Florida                      Fair Lending Act, Fla. Stat. Ann. ss.ss.             High Cost Home Loan
                             494.0078 et seq.

                             Effective October 2, 2002
---------------------------------------------------------------------------------------------------------------
Georgia (Oct. 1, 2002 -      Georgia Fair Lending Act, Ga. Code Ann.              High Cost Home Loan
Mar. 6, 2003)                ss.ss. 7-6A-1 et seq.

                             Effective October 1, 2002 - March 6 2003
---------------------------------------------------------------------------------------------------------------
Georgia as amended           Georgia Fair Lending Act, Ga. Code Ann.              High Cost Home Loan
(Mar. 7, 2003 - current)     ss.ss. 7-6A-1 et seq.

                             Effective for loans closed on or after
                             March 7, 2003
---------------------------------------------------------------------------------------------------------------
HOEPA Section 32             Home Ownership and Equity Protection Act of          High Cost Loan
                             1994, 15 U.S.C. ss. 1639, 12 C.F.R. ss.ss.
                             226.32 and 226.34

                             Effective October 1, 1995, amendments
                             October 1, 2002
---------------------------------------------------------------------------------------------------------------
Illinois                     High Risk Home Loan Act, Ill. Comp.                  High Risk Home Loan
                             Stat. tit. 815, ss.ss. 137/5 et seq.

                             Effective  January  1,  2004  (prior  to this
                             date,  regulations under Residential Mortgage
                             License Act effective from May 14, 2001)
---------------------------------------------------------------------------------------------------------------
Indiana                      Indiana Home Loan Practices Act, Ind. Code Ann.      High Cost Home Loans
                             ss.ss. 24-9-1-1 et seq.

                             Effective January 1, 2005; amended by 2005 HB
                             1179, effective July 1, 2005
---------------------------------------------------------------------------------------------------------------
Kansas                       Consumer Credit Code, Kan. Stat. Ann. ss.ss.         High Loan to Value Consumer
                             16a-1-101 et seq.                                    Loan (id. ss. 16a-3-207) and;

                             Sections 16a-1-301 and 16a-3-207 became              -----------------------------
                             effective April 14, 1999; Section 16a-3-308a         High APR Consumer Loan
                             became effective July 1, 1999                        (id. ss. 16a-3-308a)

---------------------------------------------------------------------------------------------------------------
Kentucky                     2003 KY H.B. 287 - High Cost Home Loan Act, Ky.      High Cost Home Loan
                             Rev. Stat. ss.ss. 360.100 et seq.

                             Effective June 24, 2003
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       A-2
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Maine                        Truth in Lending, Me. Rev. Stat. tit. 9-A,           High Rate High Fee Mortgage
                             ss.ss. 8-101 et seq.

                             Effective September 29, 1995 and as amended
                             from time to time
---------------------------------------------------------------------------------------------------------------
Massachusetts                Part 40 and Part 32, 209 C.M.R. ss.ss. 32.00 et      High Cost Home Loan
                             seq. and 209 C.M.R. ss.ss. 40.01 et seq.

                             Effective  March 22,  2001 and  amended  from
                             time to time
---------------------------------------------------------------------------------------------------------------
Nevada                       Assembly Bill No. 284, Nev. Rev. Stat. ss.ss.        Home Loan
                             598D.010 et seq.

                             Effective October 1, 2003
---------------------------------------------------------------------------------------------------------------
New Jersey                   New Jersey Home Ownership Security Act of 2002,      High Cost Home Loan
                             N.J. Rev. Stat. ss.ss. 46:10B- 22 et seq.

                             Effective for loans closed on or after
                             November 27, 2003
---------------------------------------------------------------------------------------------------------------
New Mexico                   Home Loan Protection Act, N.M. Rev. Stat.            High Cost Home Loan
                             ss.ss. 58-21A-1 et seq.

                             Effective as of January 1, 2004; Revised as of
                             February 26, 2004
---------------------------------------------------------------------------------------------------------------
New York                     N.Y. Banking Law Article 6-1                         High Cost Home Loan

                             Effective for applications made on or after
                             April 1, 2003
---------------------------------------------------------------------------------------------------------------
North Carolina               Restrictions and Limitations on High Cost Home       High Cost Home Loan
                             Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                             Effective  July 1, 2000;  amended  October 1,
                             2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       A-3
<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Ohio                         H.B. 386 (codified in various sections of the        Covered Loan
                             Ohio Code), Ohio Rev. Code Ann. ss.ss. 1349.25
                             et seq.

                             Effective May 24, 2002
---------------------------------------------------------------------------------------------------------------
Oklahoma                     Consumer Credit Code (codified in various            Subsection 10 Mortgage
                             sections of Title 14A)

                             Effective July 1, 2000; amended effective
                             January 1, 2004
---------------------------------------------------------------------------------------------------------------
South Carolina               South Carolina High Cost and                         High Cost Home Loan
                             Consumer Home Loans Act, S.C. Code Ann.
                             ss.ss. 37-23-10 et seq.

                             Effective for loans taken on or after
                             January 1, 2004
---------------------------------------------------------------------------------------------------------------
West Virginia                West Virginia Residential Mortgage Lender,           West Virginia Mortgage
                             Broker and Servicer Act, W. Va. Code Ann.            Loan Act Loan
                             ss.ss. 31-17-1 et seq.

                             Effective June 5, 2002
---------------------------------------------------------------------------------------------------------------
</TABLE>

      Standard & Poor's Covered Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Georgia (Oct. 1, 2002 -      Georgia Fair Lending Act, Ga. Code Ann.              Covered Loan
Mar. 6, 2003)                ss.ss. 7-6A-1 et seq.

                             Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------
New Jersey                   New Jersey Home Ownership Security Act of 2002,      Covered Home Loan
                             N.J. Rev. Stat. ss.ss. 46:10B 22 et seq.

                             Effective November 27, 2003 - July 5, 2004
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       A-4
<PAGE>

      Standard & Poor's Home Loan Categorization

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                                          Category under
                                   Name of Anti-Predatory Lending                        Applicable Anti-
  State/Jurisdiction                     Law/Effective Date                           Predatory Lending Law
---------------------------------------------------------------------------------------------------------------
<S>                          <C>                                                  <C>
Georgia (Oct. 1, 2002 -      Georgia Fair Lending Act, Ga. Code Ann. ss.ss.       Home Loan
Mar. 6, 2003)                7-6A-1 et seq.

                             Effective October 1, 2002 - March 6, 2003
---------------------------------------------------------------------------------------------------------------
New Jersey                   New Jersey Home Ownership Security Act of 2002,      Home Loan
                             N.J. Rev. Stat. ss.ss. 46:10B- 22 et seq.

                             Effective for loans closed on or after November
                             27, 2003
---------------------------------------------------------------------------------------------------------------
New Mexico                   Home Loan Protection Act, N.M. Rev. Stat.            Home Loan
                             ss.ss. 58-21A-1 et seq.

                             Effective as of January 1, 2004; Revised as of
                             February 26, 2004
---------------------------------------------------------------------------------------------------------------
North Carolina               Restrictions and Limitations on High Cost Home       Consumer Home Loan
                             Loans, N.C. Gen. Stat. ss.ss. 24-1.1E et seq.

                             Effective  July 1, 2000;  amended  October 1,
                             2003 (adding open-end lines of credit)
---------------------------------------------------------------------------------------------------------------
South Carolina               South Carolina High Cost and Consumer Home           Consumer Home Loan
                             Loans Act, S.C. Code Ann. ss.ss. 37-23-10
                             et seq.

                             Effective for loans taken on or after
                             January 1, 2004
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       A-5

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