Document:

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                                                                     EXHIBIT 4.1
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                   IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A,
                                   as Issuer,

                                       and

                           WELLS FARGO BANK MINNESOTA,
                              NATIONAL ASSOCIATION,
                              as Indenture Trustee

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

                                    INDENTURE

                            Dated as of May 31, 2002

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

                          HOME EQUITY LOAN-BACKED NOTES

                 HOME EQUITY LOAN-BACKED VARIABLE FUNDING NOTES

                    HOME EQUITY LOAN-BACKED SUBORDINATE NOTES

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<TABLE>
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                                TABLE OF CONTENTS

                                                                                                     PAGE
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ARTICLE I       DEFINITIONS.............................................................................1

    Section 1.01.     Definitions.......................................................................1

    Section 1.02.     Incorporation by Reference of Trust Indenture Act.................................2

    Section 1.03.     Rules of Construction.............................................................2

ARTICLE II      ORIGINAL ISSUANCE OF NOTES..............................................................2

    Section 2.01.     Form..............................................................................2

    Section 2.02.     Execution, Authentication and Delivery............................................3

ARTICLE III     COVENANTS...............................................................................3

    Section 3.01.     Reserved..........................................................................3

    Section 3.02.     Maintenance of Office or Agency...................................................4

    Section 3.03.     Money for Payments To Be Held in Trust; Paying Agent..............................4

    Section 3.04.     Existence.........................................................................5

    Section 3.05.     Payment of Principal and Interest; Defaulted Interest.............................5

    Section 3.06.     Protection of Trust Estate.......................................................10

    Section 3.07.     Opinions as to Trust Estate......................................................11

    Section 3.08.     Performance of Obligations; Sale and Servicing Agreement.........................11

    Section 3.09.     Negative Covenants...............................................................12

    Section 3.10.     Annual Statement as to Compliance................................................12

    Section 3.11.     Recordation of Assignments.......................................................13

    Section 3.12.     Representations and Warranties Concerning the Mortgage Loans.....................13

    Section 3.13.     Assignee of Record of the Mortgage Loans.........................................13

    Section 3.14.     Servicer as Agent and Bailee of the Indenture Trustee............................13

    Section 3.15.     Investment Company Act...........................................................13

    Section 3.16.     Issuer May Not Consolidate, etc..................................................14

    Section 3.17.     Successor or Transferee..........................................................15

    Section 3.18.     No Other Business................................................................15

    Section 3.19.     No Borrowing.....................................................................16

    Section 3.20.     Guarantees.......................................................................16

    Section 3.21.     Capital Expenditures.............................................................16

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                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 3.22.     Indenture Trustee Not Liable for Notes or Related Documents......................16

    Section 3.23.     Notice of Events of Default......................................................16

    Section 3.24.     Further Instruments and Acts.....................................................16

    Section 3.25.     Statements to Noteholders........................................................16

    Section 3.26.     Allocation of Principal Payments to the Offered Notes and the
                      Variable Funding Notes ..........................................................17

    Section 3.27.     Payments under the Policy........................................................17

    Section 3.28.     Allocation of Losses on the Mortgage Loans.......................................18

    Section 3.29.     Additional Representations and Warranties of the Issuer..........................18

ARTICLE IV      THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE.....................................19

    Section 4.01.     The Notes........................................................................19

    Section 4.02.     Registration of and Limitations on Transfer and Exchange of Notes;
                      Appointment of Certificate Registrar.............................................20

    Section 4.03.     Mutilated, Destroyed, Lost or Stolen Notes.......................................23

    Section 4.04.     Persons Deemed Owners............................................................24

    Section 4.05.     Cancellation.....................................................................24

    Section 4.06.     Book-Entry Notes.................................................................24

    Section 4.07.     Notices to Depository............................................................25

    Section 4.08.     Definitive Notes.................................................................25

    Section 4.09.     Tax Treatment....................................................................26

    Section 4.10.     Reserved.........................................................................26

    Section 4.11.     Satisfaction and Discharge of Indenture..........................................26

    Section 4.12.     Application of Trust Money.......................................................27

    Section 4.13.     Reserved.........................................................................27

    Section 4.14.     Repayment of Monies Held by Paying Agent.........................................27

    Section 4.15.     Temporary Offered Notes..........................................................27

    Section 4.16.     Subrogation and Cooperation......................................................28

    Section 4.17.     Enhancer's Rights Regarding Actions, Proceedings or Investigations...............29

ARTICLE V       DEFAULT AND REMEDIES...................................................................30

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                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 5.01.     Notification of Certain Events of Default........................................30

    Section 5.02.     Acceleration of Maturity; Rescission and Annulment...............................30

    Section 5.03.     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee........32

    Section 5.04.     Remedies; Priorities.............................................................34

    Section 5.05.     Optional Preservation of the Trust Estate........................................38

    Section 5.06.     Limitation of Suits..............................................................39

    Section 5.07.     Unconditional Right of Noteholders To Receive Principal and Interest.............39

    Section 5.08.     Restoration of Rights and Remedies...............................................40

    Section 5.09.     Rights and Remedies Cumulative...................................................40

    Section 5.10.     Delay or Omission Not a Waiver...................................................40

    Section 5.11.     Control by Enhancer or Noteholders...............................................40

    Section 5.12.     Waiver of Past Defaults..........................................................41

    Section 5.13.     Undertaking for Costs............................................................42

    Section 5.14.     Waiver of Stay or Extension Laws.................................................42

    Section 5.15.     Sale of Trust Estate.............................................................42

    Section 5.16.     Action on Notes..................................................................44

    Section 5.17.     Performance and Enforcement of Certain Obligations...............................44

ARTICLE VI      THE INDENTURE TRUSTEE..................................................................46

    Section 6.01.     Duties of Indenture Trustee......................................................46

    Section 6.02.     Rights of Indenture Trustee......................................................47

    Section 6.03.     Individual Rights of Indenture Trustee...........................................47

    Section 6.04.     Indenture Trustee's Disclaimer...................................................48

    Section 6.05.     Notice of Event of Default.......................................................48

    Section 6.06.     Reports by Indenture Trustee to Noteholders......................................48

    Section 6.07.     Compensation.....................................................................48

    Section 6.08.     Replacement of Indenture Trustee.................................................49

    Section 6.09.     Successor Indenture Trustee by Merger............................................49

    Section 6.10.     Appointment of Co-Indenture Trustee or Separate Indenture Trustee................50

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<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 6.11.     Eligibility; Disqualification....................................................51

    Section 6.12.     Preferential Collection of Claims Against Issuer.................................52

    Section 6.13.     Representations and Warranties...................................................52

    Section 6.14.     Directions to Indenture Trustee..................................................52

    Section 6.15.     Conflicting Instructions.........................................................53

ARTICLE VII     NOTEHOLDERS' LISTS AND REPORTS.........................................................53

    Section 7.01.     Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders...........53

    Section 7.02.     Preservation of Information; Communications to Noteholders.......................53

    Section 7.03.     Reports by Issuer................................................................53

    Section 7.04.     Reports by Indenture Trustee.....................................................54

ARTICLE VIII    ACCOUNTS, DISBURSEMENTS AND RELEASES...................................................54

    Section 8.01.     Collection of Money..............................................................54

    Section 8.02.     Reserved.........................................................................54

    Section 8.03.     Officer's Certificate............................................................54

    Section 8.04.     Termination Upon Distribution to Noteholders.....................................55

    Section 8.05.     Release of Trust Estate..........................................................55

    Section 8.06.     Surrender of Notes Upon Final Payment............................................55

ARTICLE IX      SUPPLEMENTAL INDENTURES................................................................56

    Section 9.01.     Supplemental Indentures Without Consent of Noteholders...........................56

    Section 9.02.     Supplemental Indentures With Consent of Noteholders..............................57

    Section 9.03.     Execution of Supplemental Indentures.............................................58

    Section 9.04.     Effect of Supplemental Indenture.................................................59

    Section 9.05.     Conformity with Trust Indenture Act..............................................59

    Section 9.06.     Reference in Notes to Supplemental Indentures....................................59

ARTICLE X       MISCELLANEOUS..........................................................................59

    Section 10.01.    Compliance Certificates and Opinions, etc........................................59

    Section 10.02.    Form of Documents Delivered to Indenture Trustee.................................61

    Section 10.03.    Acts of Noteholders..............................................................62

    Section 10.04.    Notices..........................................................................62

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                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 10.05.    Notices to Noteholders; Waiver...................................................62

    Section 10.06.    Conflict with Trust Indenture Act................................................63

    Section 10.07.    Effect of Headings...............................................................63

    Section 10.08.    Successors and Assigns...........................................................63

    Section 10.09.    Severability of Provisions.......................................................63

    Section 10.10.    Benefits of Indenture............................................................63

    Section 10.11.    Legal Holidays...................................................................64

    Section 10.12.    Governing Law....................................................................64

    Section 10.13.    Counterparts.....................................................................64

    Section 10.14.    Recording of Indenture...........................................................64

    Section 10.15.    Issuer Obligation................................................................64

    Section 10.16.    No Petition......................................................................64

    Section 10.17.    Rights to the Enhancer to Exercise Rights of Group I Noteholders.................65

    Section 10.18.    Inspection.......................................................................65
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                                      -v-

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         This INDENTURE, dated as of May 31, 2002, is between Irwin Whole Loan
Home Equity Trust 2002-A, a Delaware business trust, as issuer (the "Issuer"),
and Wells Fargo Bank Minnesota, National Association, as trustee (the "Indenture
Trustee").

                                   WITNESSETH:

         Each party hereto agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Holders of the Issuer's Home Equity
Loan-Backed Notes, Series 2002-A (the "Offered Notes"), the Holders of the
Issuer's Home Equity Loan-Backed Variable Funding Notes, Series 2002-A (the
"Variable Funding Notes") and the Holders of the Issuer's Home Equity
Loan-Backed Subordinate Notes, Series 2002-A (the "Subordinate Notes" and,
together with the Variable Funding Notes and the Offered Notes, the "Notes").

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as trustee for the benefit of the Noteholders and the Enhancer, all of the
Issuer's right, title and interest, whether now existing or hereafter created,
in and to (i) the Mortgage Loans and all Additional Balances, (ii) all funds on
deposit from time to time in the Collection Account and the Trustee Collection
Account (in each case as defined in Appendix A hereto) and all proceeds thereof,
(iii) the assignment of the Depositor's right, title and interest in the
representations and warranties made by the Seller in the Mortgage Loan Purchase
and Servicing Agreement and (iv) all present and future claims, demands, causes
and choses in action in respect of any or all of the foregoing and all payments
on or under, and all proceeds of every kind and nature whatsoever in respect of,
any or all of the foregoing and all payments on or under, and all proceeds of
every kind and nature whatsoever in the conversion thereof, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, checks, deposit accounts,
rights to payment of any and every kind, and other forms of obligations and
receivables, instruments and other property that at any time constitute all or
part of or are included in the proceeds of any of the foregoing (collectively,
the "Trust Estate" or the "Collateral").

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

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

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01. Definitions. For all purposes of this Indenture, except
as otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms used herein

<PAGE>

that are not otherwise defined shall have the meanings ascribed thereto in
Appendix A attached hereto, which is incorporated by reference herein.

         Section 1.02. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act of
1940, as amended (the "TIA"), such provision is incorporated by reference in and
made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

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

         "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

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

         Section 1.03. Rules of Construction. Unless the context otherwise
requires, (i) a term has the meaning assigned to it; (ii) an accounting term not
otherwise defined has the meaning assigned to it in accordance with generally
accepted accounting principles as in effect from time to time; (iii) "or"
includes "and/or"; (iv) "including" means including without limitation;
(v) words in the singular include the plural and words in the plural include the
singular; (vi) the term "proceeds" has the meaning ascribed thereto in the UCC;
(vii) any agreement, instrument or statute defined or referred to herein or in
any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; and
(viii) references to a Person are also to such Person's permitted successors and
assigns.

                                   ARTICLE II
                           ORIGINAL ISSUANCE OF NOTES

         Section 2.01. Form. The Offered Notes (other than the Class IIA-IO
Notes), the Class IIA-IO Notes, the Variable Funding Notes, the Non-Offered
Subordinate Notes (other than the Class IIX-IO Notes) and the Class IIX-IO
Notes, in each case together with the Indenture Trustee's certificate of
authentication, shall be in substantially the forms set forth in Exhibit A-1,
A-2, A-3, A-4 and A-5, respectively, with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as

                                       -2-
<PAGE>

may, consistently herewith, be determined by the officers executing such Notes,
as evidenced by their execution thereof. Any portion of the text of a Note may
be set forth on the reverse thereof, with an appropriate reference thereto on
the face thereof.

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

         The terms of the Notes set forth in Exhibits A-1, A-2, A-3, A-4 and A-5
are part of the terms of this Indenture.

         Section 2.02. Execution, Authentication and Delivery. The Notes shall
be executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

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

         The Indenture Trustee shall upon Issuer Request authenticate and
deliver Offered Notes for original issuance in their Initial Class Note Balance
or Notional Amount as of the Cut-Off Date and Variable Funding Notes for
original issuance in an aggregate initial principal amount of zero. The
aggregate Variable Funding Balance may not exceed $5,000,000.00.

         Each Note shall be dated the date of its authentication. The Notes,
other than the Class IIA-IO Notes and the Non-Offered Subordinate Notes, shall
be issuable as registered Notes in minimum initial Note Balances of $1,000 and
in integral multiples of $1 in excess thereof. The Class IIA-IO Notes and the
Non-Offered Subordinate Notes shall be issuable as registered Notes in minimum
percentage interests of 5% and in integral multiples of 5% in excess thereof.

         Each Variable Funding Note shall be initially issued with a Variable
Funding Balance of $0 or, if applicable, with a Variable Funding Balance in an
amount equal to the sum of the Additional Balance Differential for the
Collection Period relating to the Payment Date following the date of issuance of
such Variable Funding Note pursuant to Section 4.01.

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

                                      -3-
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                                   ARTICLE III
                                    COVENANTS

         Section 3.01. Reserved.

         Section 3.02. Maintenance of Office or Agency. The Issuer shall
maintain an office or agency where, subject to the satisfaction of conditions
set forth herein, Notes may be surrendered for registration of transfer or
exchange, and where notices and demands to or upon the Issuer in respect of the
Notes and this Indenture may be served. The Issuer hereby initially appoints the
Indenture Trustee to serve as its agent for the foregoing purposes. If at any
time the Issuer shall fail to maintain any such office or agency or shall fail
to furnish the Indenture Trustee with the address thereof, such surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Indenture Trustee, and the Issuer hereby appoints the Indenture Trustee as its
agent to receive all such surrenders, notices and demands.

         Section 3.03. Money for Payments To Be Held in Trust; Paying Agent. All
payments of amounts due and payable with respect to any Notes pursuant to
Section 3.05 shall be made on behalf of the Issuer by the Indenture Trustee or
the Paying Agent, and no amounts shall be paid to the Issuer except as provided
in this Section. The Indenture Trustee shall initially be the Paying Agent.

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

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

         (b)   give the Indenture Trustee and the Enhancer written notice of any
default by the Issuer of which it has actual knowledge in the making of any
payment required to be made with respect to the Notes;

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

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

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

                                      -4-
<PAGE>

         (f)   deliver to the Indenture Trustee a copy of the statement to
Noteholders prepared with respect to each Payment Date pursuant to Section 4.01
of the Sale and Servicing Agreement.

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

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

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

         Section 3.05. Payment of Principal and Interest; Defaulted Interest.

         (a)   On each Payment Date (other than a Payment Date after an Event of
Default and an acceleration of the Notes), from amounts on deposit in the
Trustee Collection Account resulting from Interest Collections and Principal
Collections with respect to the Mortgage Loans in Loan Group I (after the
Indenture Trustee has removed any investment earnings to be retained by it
pursuant to Section 6.07), together with any draw on the Policy for such Payment
Date to be

                                      -5-
<PAGE>

applied only to an Insured Payment, the Indenture Trustee shall apply the
following amounts in the following order of priority, in accordance with the
Servicing Certificate:

               (i)   to pay the Enhancer the accrued and unpaid premium for the
         Policy and to pay the Depositor or an Affiliate thereof the Depositor
         Administrative Services Fee with respect to the Group I Notes;

               (ii)   to pay accrued and unpaid interest due on the Note
         Balances of the Class IA-1 Notes and the Variable Funding Notes, pro
         rata, at their respective Note Rates;

               (iii) to pay as principal on the Class IA-1 Notes and the
         Variable Funding Notes, pro rata, an amount equal to the Principal
         Collection Distribution Amount for the Group I Notes and that Payment
         Date;

               (iv)  to pay as principal on the Class IA-1 Notes and the
         Variable Funding Notes, pro rata, an amount equal to the Liquidation
         Loss Distribution Amount for the Group I Notes and that Payment Date;

               (v)   to reimburse the Enhancer for any unreimbursed draws made
         on the Policy for the Group I Notes, with interest thereon as provided
         in the Insurance Agreement;

               (vi)  to the holders of the Non-Offered Subordinate Notes and the
         Certificates in the priorities set forth in Section 3.26:

                     (A)   on the Payment Dates in July and August 2002, 100% of
               the Remaining Excess Spread for the Group I Notes and the
               applicable Payment Date; and

                     (B)   on the Payment Dates in September 2002 through and
               including November 2002, 50% of the Remaining Excess Spread for
               the Group I Notes and the applicable Payment Date;

               (vii) to pay as principal on the Class IA-1 Notes and the
         Variable Funding Notes, pro rata, an amount equal to the
         Overcollaterization Increase Amount for the Group I Notes and that
         Payment Date;

               (viii)to pay the Enhancer any other amounts owed to it pursuant
         to the Insurance Agreement, with interest thereon;

               (ix)  to pay the holders of the Class IA-1 Notes and the Variable
         Funding Notes, pro rata, any applicable unpaid Interest Carry-Forward
         Amounts, together with interest thereon;

               (x)   to pay the Indenture Trustee, the Owner Trustee, the Master
         Servicer and the Administrator any unpaid expenses and other
         reimbursable amounts owed to the Indenture Trustee, the Owner Trustee,
         the Master Servicer and the Administrator with respect to the Group I
         Notes; and

                                      -6-
<PAGE>

               (xi)  any remaining amounts to the holders of the Non-Offered
         Subordinate Notes and the Certificates in the amounts and priorities
         set forth in Section 3.26;

provided, that in the event that on a Payment Date an Enhancer Default shall
have occurred and be continuing, then the priorities of distributions described
above will be adjusted such that payments of any amounts to be paid to the
Enhancer will not be paid until the full amount of interest and principal in
accordance with clauses (ii) through (iv) above that are due and required to be
paid by the Enhancer on the Notes on such Payment Date have been paid.

         Notwithstanding the foregoing, on the Legal Final Payment Date of the
Class IA-1 Notes, the amounts to be paid pursuant to clause (iii) above shall be
equal to the sum of the Offered Note Balance of the Class IA-1 Notes and the
Variable Funding Balance of the Variable Funding Notes immediately prior to such
Payment Date.

         (b)   On each Payment Date (other than a Payment Date after an Event of
Default and an acceleration of the Notes), from amounts on deposit in the
Trustee Collection Account resulting from Interest Collections and Principal
Collections with respect to the Mortgage Loans in Loan Group II (after the
Indenture Trustee has removed any investment earnings to be retained by it
pursuant to Section 6.07), minus any permitted expenses reimbursable to the
Indenture Trustee and the Administrator pursuant to Section 6.07, the Indenture
Trustee shall apply the following amounts in the following order of priority, in
accordance with the Servicing Certificate:

               (i)   to pay the Depositor or an affiliate thereof the Depositor
         Administrative Services Fee with respect to the Group II Notes;

               (ii)  to pay the accrued and unpaid interest due on the Note
         Balances of the Group II Notes and the notional balance of the Class
         IIA-IO Notes at their respective Note Rates as follows:

                     (A)   first, to the Senior Group II Notes and the Class
               IIA-IO Notes, on a pro rata basis in accordance with the amount
               of accrued interest due thereon;

                     (B)   second, to the Class IIM-1 Notes;

                     (C)   third, to the Class IIM-2 Notes; and

                     (D)   fourth, to the Class IIB-1 Notes;

               (iii) to pay as principal on the Group II Notes (other than the
         Class IIA-IO Notes), an amount equal to the Principal Collection
         Distribution Amount for the Group II Notes and that Payment Date, as
         follows:

                     (A)   first, to the Senior Group II Notes, in the order
               described in Section 3.26, until the aggregate Note Balance of
               the Senior Group II Notes has been reduced to the Senior Group II
               Optimal Principal Balance;

                                      -7-
<PAGE>

                     (B)   second, to the Class IIM-1 Notes, until the Note
               Balance of the Class IIM-1 Notes has been reduced to the Class
               IIM-1 Optimal Principal Balance;

                     (C)   third, to the Class IIM-2 Notes, until the Note
               Balance of the Class IIM-2 Notes has been reduced to the Class
               IIM-2 Optimal Principal Balance; and

                     (D)   fourth, to the Class IIB-1 Notes, until the Note
               Balance of the Class IIB-1 Notes has been reduced to the Class
               IIB-1 Optimal Principal Balance;

               (iv)  to pay as principal on the Senior Group II Notes, in the
         order described in Section 3.26, until their aggregate Note Balance has
         been reduced to the Senior Group II Optimal Principal Balance, an
         amount equal to the Liquidation Loss Distribution Amount for the Group
         II Notes and that Payment Date;

               (v)   to pay as principal on the Class IIM-1 Notes, until the
         Note Balance thereof has been reduced to the Class IIM-1 Optimal
         Principal Balance, an amount equal to the Liquidation Loss Distribution
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the holders of the Senior Group II Notes under clause
         (iv) above;

               (vi)  to pay as principal on the Class IIM-2 Notes, until the
         Note Balance thereof has been reduced to the Class IIM-2 Optimal
         Principal Balance, an amount equal to the Liquidation Loss Distribution
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the holders of the Senior Group II Notes or the Class
         IIM-1 Notes under clauses (iv) and (v) above, respectively;

               (vii) to pay as principal on the Class IIB-1 Notes, until the
         Note Balance thereof has been reduced to the Class IIB-1 Optimal
         Principal Balance, an amount equal to the Liquidation Loss Distribution
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the holders of the Senior Group II Notes, the Class
         IIM-1 Notes or the Class IIM-2 Notes under clauses (iv), (v) and (vi)
         above, respectively;

               (viii)to pay the accrued and unpaid interest due on the notional
         balance of the Class IIX-IO Notes at its Note Rate;

               (ix)  to the holders of the Non-Offered Subordinate Notes and the
         Certificates in the priorities set forth in Section 3.26:

                     (A)   on the Payment Date in July 2002, 100% of the
               Remaining Excess Spread for the Group II Notes and that Payment
               Date; and

                     (B)   on the Payment Dates in August 2002 through and
               including November 2002, 25% of the Remaining Excess Spread for
               the Group II Notes and the applicable Payment Date;

               (x)   to pay as principal on the Senior Group II Notes, in the
         order described in Section 3.26, until their aggregate Note Balance has
         been reduced to the Senior Group II

                                      -8-
<PAGE>

         Optimal Principal Balance, an amount equal to the Overcollaterization
         Increase Amount for the Group II Notes and that Payment Date;

               (xi)  to pay as principal on the Class IIM-1 Notes, until the
         Note Balance thereof has been reduced to the Class IIM-1 Optimal
         Principal Balance, an amount equal to the Overcollaterization Increase
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the Senior Group II Notes under clause (x) above;

               (xii) to pay as principal on the Class IIM-2 Notes, until the
         Note Balance thereof has been reduced to the Class IIM-2 Optimal
         Principal Balance, an amount equal to the Overcollaterization Increase
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the Senior Group II Notes or the Class IIM-1 Notes under
         clauses (x) and (xi) above, respectively;

               (xiii) to pay as principal on the Class IIB-1 Notes, until the
         Note Balance thereof has been reduced to the Class IIB-1 Optimal
         Principal Balance, an amount equal to the Overcollaterization Increase
         Amount for the Group II Notes and that Payment Date, to the extent not
         distributed to the Senior Group II Notes, the Class IIM-1 Notes or the
         Class IIM-2 Notes under clauses (x), (xi) and (xii) above,
         respectively;

               (xiv) to pay the Indenture Trustee, the Owner Trustee, the Master
         Servicer and the Administrator any unpaid expenses and other
         reimbursable amounts owed to the Indenture Trustee, the Owner Trustee,
         the Master Servicer and the Administrator with respect to the Group II
         Notes; and

               (xv)  any remaining amounts to the holders of the Non-Offered
         Subordinate Notes and the Certificates in the amounts and priorities
         set forth in Section 3.26.

         Notwithstanding the foregoing, on the Legal Final Payment Date for a
Class of Group II Notes, the amounts to be paid pursuant to clause (iii) above
shall be equal to the aggregate of the Offered Note Balances immediately prior
to such Payment Date for all Group II Notes with a Legal Final Payment Date on
such Payment Date.

         In the event that any withholding tax is imposed on distributions (or
allocations of income) to a Holder of a Note or Certificate, such tax shall
reduce the amount otherwise distributable to such Holder in accordance with this
Section 3.05. The Indenture Trustee is hereby authorized and directed to retain
or cause to be retained from amounts otherwise distributable to the Holders of
the Notes or Certificates sufficient funds for the payment of any tax that is
legally owed by the Issuer; provided, that such authorization shall not prevent
the Indenture Trustee from contesting any such tax in appropriate Proceedings
and withholding payment thereof, if permitted by law, pending the outcome of
such Proceedings. The amount of any withholding tax imposed with respect to a
Holder of a Note or Certificate shall be treated as cash distributed to such
Holder at the time it is withheld by the Indenture Trustee and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is
payable with respect to a distribution, the Indenture Trustee may in its sole
discretion withhold such amounts in accordance with this paragraph.

                                      -9-
<PAGE>

         Amounts paid to Noteholders shall be paid in respect of the Offered
Notes, the Variable Funding Notes or the Non-Offered Subordinate Notes, as the
case may be, in accordance with the applicable percentage as set forth in
paragraph (c) below. Any installment of interest or principal payable on any
Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Holder of record thereof on the
immediately preceding Record Date by check or money order mailed to the address
of such Noteholder reflected in the Note Register (or upon the request of a
Holder owning Offered Notes with a principal amount or notional balance of at
least $1,000,000 or a Holder of the Non-Offered Subordinate Notes, by wire
transfer to an account specified in writing by such Holder reasonably
satisfactory to the Indenture Trustee), in the amount required to be distributed
to such Holder on such Payment Date pursuant to such Holder's Notes; provided,
that the Indenture Trustee shall not pay to any such Holder any amounts required
to be withheld from a payment to such Holder by the Code.

         (c)   Principal of each Note shall be due and payable in full on the
Legal Final Payment Date for the related Class of Notes as provided in the
applicable form of Note set forth in Exhibits A-1, A-2, A-3 and A-5. All
principal payments on the Offered Notes and the Variable Funding Notes shall be
made pro rata to the Class of Noteholders entitled thereto in accordance with
the related Percentage Interests represented thereby. Upon written notice to the
Indenture Trustee by the Issuer, the Indenture Trustee shall notify the Person
in the name of which a Note is registered at the close of business on the Record
Date preceding the related Legal Final Payment Date. Such notice shall be mailed
no later than five Business Days prior to the related Legal Final Payment Date
and shall specify that payment of the principal amount and any interest due with
respect to such Note at the related Legal Final Payment Date will be payable
only upon presentation and surrender of such Note, and shall specify the place
where such Note may be presented and surrendered for such final payment.

         Section 3.06. Protection of Trust Estate.

         (a)   The Issuer shall from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and shall take such other action necessary or advisable to:

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

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

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

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

         (b)   Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove any portion of the Trust Estate that consists of money
or that is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the

                                      -10-
<PAGE>

most recent Opinion of Counsel delivered pursuant to Section 3.07 (or from the
jurisdiction in which it was held as described in the Opinion of Counsel
delivered at the Closing Date pursuant to Section 3.07(a), if no Opinion of
Counsel shall have yet been delivered pursuant to Section 3.07(b)), unless the
Indenture Trustee shall have first received an Opinion of Counsel to the effect
that the Lien and security interest created by this Indenture with respect to
such property will continue to be maintained after giving effect to such action
or actions.

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

         Section 3.07. Opinions as to Trust Estate.

         (a)   On the Closing Date, the Issuer shall furnish to the Indenture
Trustee, the Enhancer, and the Owner Trustee an Opinion of Counsel, at the
expense of the Issuer, stating that (i) in the opinion of such counsel, such
action has been taken with respect to the recording and filing of this
Indenture, any indentures supplemental hereto and any other requisite documents,
and with respect to the execution and filing of any financing statements and
continuation statements, as are necessary to perfect and make effective the Lien
and security interest in the Mortgage Loans and reciting the details of such
action, or (ii) in the opinion of such counsel, no such action is necessary to
make such Lien and security interest effective.

         (b)   On or before December 31st of each calendar year, commencing in
2003, the Issuer shall furnish to the Indenture Trustee and the Enhancer an
Opinion of Counsel at the expense of the Issuer stating that (i) in the opinion
of such counsel, such action has been taken with respect to the recording,
filing, re-recording and re-filing of this Indenture, any indentures
supplemental hereto and any other requisite documents and with respect to the
execution and filing of any financing statements and continuation statements as
is necessary to maintain the Lien and security interest in the Mortgage Loans
and reciting the details of such action or (ii) in the opinion of such counsel,
no such action is necessary to maintain such Lien and security interest. Such
Opinion of Counsel shall also describe the recording, filing, re-recording and
re-filing of this Indenture, any indentures supplemental hereto and any other
requisite documents, and the execution and filing of any financing statements
and continuation statements that will, in the opinion of such counsel, be
required to maintain the Lien and security interest in the Mortgage Loans until
December 31 of the following calendar year.

         Section 3.08. Performance of Obligations; Sale and Servicing Agreement.

         (a)   The Issuer shall punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Basic
Documents and the instruments and agreements included in the Trust Estate.

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

                                      -11-
<PAGE>

         (c)   The Issuer shall not take any action or permit any action to be
taken by others that would release any Person from any of such Person's
covenants or obligations under any document relating to the Mortgage Loans
(including the Mortgage Documents and the Related Documents) or under any
instrument included in the Trust Estate, or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such document or any such instrument, except
such actions as the Master Servicer is expressly permitted to take in the Sale
and Servicing Agreement.

         (d)   The Issuer may enter into contracts (with the prior written
consent of the Enhancer) with other Persons for the performance of the Issuer's
obligations hereunder, and performance of such obligations by such Persons shall
be deemed to be performance of such obligations by the Issuer.

         Section 3.09. Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

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

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

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

         (d)   impair or cause to be impaired the Issuer's interest in the
Mortgage Loans, the Mortgage Loan Purchase and Servicing Agreement or in any
other Basic Document, if any such action would materially and adversely affect
the interests of the Noteholders.

         Section 3.10. Annual Statement as to Compliance. The Issuer shall
deliver to the Indenture Trustee and the Enhancer, on or before May 31 of each
year (commencing with 2003), an Officer's Certificate stating, as to the
Authorized Officer signing such Officer's Certificate, that:

         (a)   a review of the activities of the Issuer during such year (or
from the Closing Date in the case of the first such Certificate) and of its
performance under this Indenture and the Trust Agreement has been made under
such Authorized Officer's supervision; and

         (b)   to the best of such Authorized Officer's knowledge, based on such
review, the Issuer has complied with all conditions and covenants under this
Indenture and the Trust

                                      -12-
<PAGE>

Agreement throughout such year (or from the Closing Date in the case of the
first such Certificate) or, if there has been a default in its compliance with
any such condition or covenant, specifying each such default known to such
Authorized Officer and the nature and status thereof.

         Section 3.11. Recordation of Assignments. The Issuer shall enforce the
obligation of the Master Servicer under Section 3.13 of the Sale and Servicing
Agreement to submit or cause to be submitted for recording Assignments of
Mortgages in accordance with such Section.

         Section 3.12. Representations and Warranties Concerning the Mortgage
Loans. The Indenture Trustee, as pledgee of the Mortgage Loans shall have the
benefit of the representations and warranties of the Seller in Sections 7.01 and
7.02 of the Mortgage Loan Purchase and Servicing Agreement and assigned to the
Issuer in Section 2.01 of the Sale and Servicing Agreement concerning the
Mortgage Loans and the right to enforce the remedies against the Seller provided
in such Sections and in Sections 7.03 and 12.01 of the Mortgage Loan Purchase
and Servicing Agreement and Section 2.08 of the Sale and Servicing Agreement to
the same extent as though such representations and warranties were made directly
to the Indenture Trustee.

         Section 3.13. Assignee of Record of the Mortgage Loans. As pledgee of
the Mortgage Loans, the Indenture Trustee shall hold record title to the
Mortgage Loans by being named as payee in the endorsements of the Mortgage Notes
and assignee in the Assignments of Mortgage recorded to the extent required by
Section 3.13 of the Sale and Servicing Agreement. Except as expressly provided
in the Mortgage Loan Purchase and Servicing Agreement or the Sale and Servicing
Agreement with respect to any Mortgage Loan, the Indenture Trustee shall not
execute any endorsement or assignment or otherwise release or transfer record
title to such Mortgage Loan until such time as the remaining Trust Estate, or
any portion thereof, may be released pursuant to Section 8.05 hereof.

         Section 3.14. Servicer as Agent and Bailee of the Indenture Trustee.
Solely for purposes of perfection under Section 9-313 of the UCC or other
similar applicable law, rule or regulation of the State in which such property
is held by the Master Servicer, the Indenture Trustee hereby acknowledges that
the Master Servicer is acting as agent and bailee of the Indenture Trustee in
holding amounts on deposit in the Collection Account pursuant to Section 5.02
and Section 3.04 of the Sale and Servicing Agreement that are allocable to the
Mortgage Loans, as well as the agent and bailee of the Indenture Trustee in
holding any Related Documents released to the Master Servicer pursuant to
Section 3.09 of the Sale and Servicing Agreement, and any other items
constituting a part of the Trust Estate that from time to time come into the
possession of the Master Servicer. It is intended that, by the Master Servicer's
acceptance of such agency pursuant to Section 3.01 of the Sale and Servicing
Agreement, the Indenture Trustee, as pledgee of the Mortgage Loans, will be
deemed to have possession of such Related Documents, such monies and such other
items for purposes of Section 9-313 of the UCC of the State in which such
property is held by the Master Servicer.

         Section 3.15. Investment Company Act. The Issuer shall not become an
"investment company" or under the "control" of an "investment company" as such
terms are defined in the Investment Company Act of 1940, as amended, and the
rules and regulations thereunder (taking into account not only the general
definition of the term "investment company" but also any

                                      -13-
<PAGE>

available exceptions to such general definition); provided, that the Issuer
shall be in compliance with this Section if it shall have obtained an order
exempting it from regulation as an "investment company" so long as it is in
compliance with the conditions imposed in such order.

         Section 3.16. Issuer May Not Consolidate, etc.

         (a)   The Issuer shall not consolidate or merge with or into any other
Person, unless:

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

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

               (iii) each Rating Agency shall have notified the Issuer that such
         transaction will not cause a Rating Event, without taking into account
         the Policy, and the Enhancer shall have consented thereto;

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

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

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

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

               (i)   the Person that acquires by conveyance or transfer the
         properties and assets of the Issuer the conveyance or transfer of which
         is hereby restricted shall (A) be a United States citizen or a Person
         organized and existing under the laws of the United States of America
         or any State, (B) expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Indenture Trustee and the
         Enhancer, in form satisfactory to the Indenture Trustee and the
         Enhancer, the due and punctual payment of

                                      -14-
<PAGE>

         the principal of and interest on all Notes and the performance or
         observance of every agreement and covenant of this Indenture on the
         part of the Issuer to be performed or observed, all as provided herein,
         (C) expressly agree by means of such supplemental indenture that all
         right, title and interest so conveyed or transferred shall be subject
         and subordinate to the rights of the Noteholders, (D) unless otherwise
         provided in such supplemental indenture, expressly agree to indemnify,
         defend and hold harmless the Issuer from and against any loss,
         liability or expense arising under or relating to this Indenture or the
         Notes and (E) expressly agree by means of such supplemental indenture
         that such Person (or if a group of Persons, then one specified Person)
         shall make all filings with the Commission (and any other appropriate
         Person) required by the Exchange Act in connection with the Notes;

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

               (iii) the Enhancer shall have consented thereto, and each Rating
         Agency shall have notified the Issuer that such transaction will not
         cause a Rating Event, if determined without regard to the Policy;

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

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

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

         Section 3.17. Successor or Transferee.

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

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

         Section 3.18. No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning and selling and managing the
Mortgage Loans, the issuance of the

                                      -15-
<PAGE>

Notes and the Certificate in the manner contemplated by this Indenture and the
other Basic Documents and all activities incidental thereto.

         Section 3.19. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness, except for the Notes.

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

         Section 3.21. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

         Section 3.22. Indenture Trustee Not Liable for Notes or Related
Documents. The recitals contained herein shall be taken as the statements of the
Depositor, and the Indenture Trustee assumes no responsibility for the
correctness thereof. The Indenture Trustee makes no representations as to the
validity or sufficiency of this Indenture, of any other Basic Document or of the
Notes (other than the signatures of the Indenture Trustee on the authentication
of the Notes) or of any other documents relating thereto. The Indenture Trustee
shall at no time have any responsibility or liability with respect to the
sufficiency of the Trust Estate or its ability to generate the payments to be
distributed to the Noteholders under this Indenture, including the compliance by
the Depositor or the Seller with any representation or warranty made under any
Basic Document or in any related document or the accuracy of any such
representation or warranty, or any action of the Paying Agent or the Note
Registrar or the Indenture Trustee taken in the name of the Owner Trustee.

         Section 3.23. Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Administrator, the Enhancer and each Rating Agency prompt
written notice of each Event of Default hereunder.

         Section 3.24. Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer shall execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

         Section 3.25. Statements to Noteholders. On each Payment Date, the
Indenture Trustee will make the Servicing Certificate (and, at its option, any
additional files containing the same information in alternative format)
available to Noteholders, the Depositor, the Enhancer and the Issuer via the
Indenture Trustee's internet website. The Indenture Trustee's internet website
shall initially be located at www.ctslink.com. Assistance in using the website
can be obtained by calling the Trustee's customer service desk at (301)
815-6600. Persons that are unable to use the above distribution options are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Indenture Trustee shall have the
right to change the way Servicing Certificates are distributed in order to make
such distribution more

                                      -16-
<PAGE>

convenient and/or more accessible to the above Persons, and the Indenture
Trustee shall provide timely and adequate notification to all above Persons
regarding any such changes.

         Section 3.26. Allocation of Principal Payments to the Offered Notes and
the Variable Funding Notes. (a) Payments made to the holders of the Group I
Notes and the Group II Notes on each Payment Date with respect to the Principal
Collection Distribution Amount, the Liquidation Loss Amount and the
Overcollateralization Increase Amount shall be distributed solely from the
Interest Collections and Principal Collections for Group I and Group II,
respectively, until the Note Balances of the Group I Notes in the aggregate and
the Group II Notes in the aggregate have been reduced to zero.

         (b)   Payments of principal that are allocated to the Group I Notes
will be paid to the Class IA-1 Notes and the Variable Funding Notes pro rata
based on the outstanding Note Balance or Variable Funding Balance, as
applicable, thereof until paid in full. Payments of principal that are allocated
to the Group II Notes will be paid sequentially (commencing with the Class IIA-1
Notes, as applicable until the Note Balance of such Class has been reduced to
zero) within the Group II Notes.

         (c)   Payments to the holders of the Non-Offered Subordinate Notes
(other than the Class IIX-IO Notes) and Certificates on each Payment Date will
be equal to the amount of remaining funds in the Trustee Collection Account
under clauses (vi) and (xi) of Section 3.05(a) and clauses (ix) and (xv) of
Section 3.05(b). Payment of such aggregate amount on each Payment Date will be
made to the Holder of the Non-Offered Subordinate Notes (other than the Class
IIX-IO Notes) as follows: first, to the Class X-1 Note, solely as a payment of
principal, until the Class X-1 Note Balance has been reduced to $0, and
thereafter, to the Class X-2A and Class X-2B Notes in the proportion of 20% and
80%, respectively, of the aggregate amount to be paid on each Payment Date. No
payment of any portion of such aggregate amount will be made to the Holder of
the Certificate on any Payment Date.

         Section 3.27. Payments under the Policy.

               (a) (i) If the Servicing Certificate specifies a Policy Draw
Amount for any Payment Date, the Indenture Trustee shall make a draw on the
Policy in an amount specified in the Servicing Certificate for such Payment Date
or, if no amount is specified, the Indenture Trustee shall make a draw on the
Policy in accordance with the terms of the Policy.

                   (ii) The Indenture Trustee shall deposit or cause to be
deposited such Policy Draw Amount into the Trustee Collection Account on such
Payment Date. On each Payment Date, the Indenture Trustee shall return any money
received under the Policy which does not constitute an Insured Payment to the
Enhancer. The Indenture Trustee shall distribute on each Payment Date, to the
Group I Noteholders, the Deficiency Amount for such Payment Date in accordance
with the priorities set forth in Section 3.05 hereof.

         (b)   The Indenture Trustee shall submit, if a Policy Draw Amount is
specified in the Servicing Certificate, the Notice (in the form attached as
Exhibit A to the Policy) to the Enhancer no later than 12:00 noon, New York City
time, on the second (2nd) Business Day prior to the applicable Payment Date.

                                      -17-
<PAGE>

         (c)   The Indenture Trustee shall (i) receive as attorney-in-fact of
each Group I Noteholder any Insured Payment from the Enhancer and (ii)
distribute such Insured Payment as set forth in subsection (a)(ii) above.
Insured Payments disbursed by the Indenture Trustee from proceeds of the Policy
shall not be considered payment by the Issuer with respect to the Group I Notes,
nor shall such disbursement of such Insured Payments discharge the obligations
of the Issuer with respect to the amounts thereof, and the Insurer shall become
the owner of such amounts as the deemed assignee and subrogee of such Group I
Noteholders.

         Section 3.28. Allocation of Losses on the Mortgage Loans. On each
Payment Date, the amount of Liquidation Loss Amounts incurred on the Mortgage
Loans in Group II in the related Collection Period that were not distributed
pursuant to Sections 3.05(b)(iv), (v), (vi) or (vii) will be applied as follows:
first, to reduce any Overcollateralization Amount for Group II (after allocation
of Principal Collections and Interest Collections on the Mortgage Loans for such
Payment Date) until such amount has been reduced to zero; second, to reduce the
Note Balance of the Class IIB-1 Notes, until the outstanding Note Balance
thereof has been reduced to zero; third, to reduce the Note Balance of the Class
IIM-2 Notes, until the outstanding Note Balance thereof has been reduced to
zero; fourth, to reduce the Note Balance of the Class IIM-1 Notes, until the
outstanding Note Balance thereof has been reduced to zero, and last to reduce
the Note Balance of the Senior Group II Notes until the outstanding Note
Balances thereof have been reduced to zero. Any such Liquidation Loss Amounts
allocated to Senior Group II Notes shall be allocated to the Senior Group II
Notes on a pro rata basis. The reduction of the Note Balance of any Class of
Notes by application of Liquidation Loss Amounts entitles such Class to
reimbursement for such amount, with interest thereon, in accordance with Section
3.05. Payment of that reimbursement amount will not further reduce the Note
Balance of the applicable Class. After the Note Balance of any Class has been
reduced to zero, that Class will no longer be entitled to reimbursement.

         Section 3.29. Additional Representations and Warranties of the Issuer.
This Indenture creates a valid and continuing security interest (as defined in
the applicable UCC) in the Mortgage Loans in favor of the Indenture Trustee,
which security interest is prior to all other Liens, and is enforceable as such
as against creditors of and purchasers from the Issuer. The Mortgage Loans
constitute "instruments" or "accounts" within the meaning of the applicable UCC.
The Issuer owns and has good and marketable title to the Mortgage Loans free and
clear of any Lien, claim or encumbrance of any Person. All original executed
copies of each Mortgage Note (or a "lost note affidavit" in lieu thereof) that
constitute or evidence the Mortgage Loans have been delivered to the Indenture
Trustee. The Issuer has caused or will have caused, within ten days, the filing
of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security
interest in the Collateral granted to the Indenture Trustee hereunder. Other
than the security interest granted to the Indenture Trustee pursuant to this
Indenture, the Issuer has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed any of the Mortgage Loans. The Issuer has not
authorized the filing of and is not aware of any financing statements against
the Issuer that include a description of collateral covering the Mortgage Loans
other than any financing statement relating to the security interest granted to
the Indenture Trustee hereunder or that has been terminated. The Issuer is not
aware of any judgment or tax lien filings against the Issuer. None of the
Mortgage Notes that constitute or evidence the Mortgage Loans has any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person

                                      -18-
<PAGE>

other than the Indenture Trustee. The foregoing representations and warranties
shall survive the discharge of this Indenture.

                                   ARTICLE IV
               THE NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

         Section 4.01. The Notes.

         (a)   The Offered Notes shall be registered in the name of a nominee
designated by the Depository. Beneficial Owners shall hold interests in the
Offered Notes other than the Class IIA-IO Notes through the book-entry
facilities of the Depository in minimum initial Note Balances of $1,000 and
integral multiples of $1 in excess thereof. Beneficial Owners shall hold
interests in the Class IIA-IO Notes through the book-entry facilities of the
Depository in minimum initial Percentage Interests of 5% and integral multiples
of 5% in excess thereof. The Capped Funding Notes shall be issued as physical
notes in fully registered form in minimum initial Capped Funding Balances of
$10,000 and integral multiples of $1,000 in excess thereof, together with any
additional amount necessary to cover (i) the aggregate Variable Funding Balance
of the Variable Funding Notes at the time of the denominational exchange thereof
or (ii) the aggregate Capped Funding Balance of any Capped Funding Notes issued
in an exchange described in paragraph (d) below. The Variable Funding Balance of
the Variable Funding Notes at the time of such exchange shall be the initial
Capped Funding Balance of the Capped Funding Notes issued in exchange therefor.

         The Indenture Trustee may for all purposes (including the making of
payments due on the Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Offered Notes for
the purposes of exercising the rights of Offered Noteholders hereunder. Except
as provided in the next succeeding paragraph, the rights of Beneficial Owners
with respect to the Offered Notes shall be limited to those established by law
and agreements between such Beneficial Owners and the Depository and Depository
Participants. Except as provided in Section 4.08, Beneficial Owners shall not be
entitled to definitive certificates for the Offered Notes as to which they are
the Beneficial Owners. Requests and directions from, and votes of, the
Depository as Holder of the Offered Notes shall not be deemed inconsistent if
they are made with respect to different Beneficial Owners. The Indenture Trustee
may establish a reasonable record date in connection with solicitations of
consents from or voting by Offered Noteholders and give notice to the Depository
of such Record Date. Without the consent of the Issuer, the Enhancer and the
Indenture Trustee, the Depository may not transfer any Offered Note except to a
successor Depository that agrees to hold such Offered Note for the account of
the Beneficial Owners.

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

                                      -19-
<PAGE>

         The Owner Trustee (not in its individual capacity but solely as Owner
Trustee), shall, on original issue, execute the Offered Notes on behalf of the
Issuer, and the Indenture Trustee shall authenticate and deliver the Notes to or
upon the order of the Issuer.

         (b)   On each Payment Date, the aggregate Variable Funding Balance of
the Variable Funding Notes shall be increased by an amount equal to the
Additional Balance Differential for such Payment Date, subject to the terms and
conditions set forth below. The aggregate Variable Funding Balance of the
Variable Funding Notes, including the Capped Funding Balance of the Capped
Funding Notes, shall not exceed the Maximum Variable Funding Balance.

         (c)   The Variable Funding Note issued on the Closing Date shall bear
the Designation "VFN-1", and each Variable Funding Note issued thereafter shall
bear sequential numerical designations in the order of their issuance.

         (d)   Subject to the following conditions, the Variable Funding Notes
may be exchanged pursuant to Section 4.02 for one or more Capped Funding Notes.
Prior to any such exchange, the party requesting the exchange must provide an
Opinion of Counsel, addressed to the Issuer, the Enhancer and the Indenture
Trustee, to the effect that the Capped Funding Notes shall qualify for federal
income tax purposes as indebtedness of the Issuer and neither the Issuer nor any
portion thereof will be characterized as a taxable mortgage pool within the
meaning of Section 7701(i) of the Code. Upon receipt of the Opinion of Counsel,
the Indenture Trustee shall issue Capped Funding Notes with a Capped Funding
Balance equal to the Capped Funding Balance permitted under such Opinion of
Counsel, in minimum denominations as set forth in paragraph (a) above. The
Capped Funding Notes shall bear the designation "Capped" in addition to any
other applicable designation. The Capped Funding Notes shall be issued
concurrently with a reduction in the aggregate Variable Funding Balance. Any
Variable Funding Balance not represented by a Capped Funding Note shall result
in the issuance of a new Variable Funding Note having an initial Variable
Funding Balance equal to the excess of the outstanding Variable Funding Balance
of the Variable Funding Note so surrendered over the initial Capped Funding
Balances of the Capped Funding Notes. The Indenture Trustee and the Issuer agree
to cooperate with each other, the party requesting the exchange of Variable
Funding Notes for Capped Funding Notes and the Depositor, the Seller and the
Owner Trustee, and to cause no unreasonable delay in issuing Capped Funding
Notes in connection with this Section.

         Section 4.02. Registration of and Limitations on Transfer and Exchange
of Notes; Appointment of Certificate Registrar. The Issuer shall cause to be
kept at the Corporate Trust Office of the Indenture Trustee a Note Register in
which, subject to such reasonable regulations as it may prescribe, the Note
Registrar shall provide for the registration of Notes and of transfers and
exchanges of Notes as herein provided.

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

                                      -20-
<PAGE>

         No transfer of a Non-Offered Subordinate Note, other than a Class
IIX-IO Note, shall be permitted, and no such transfer shall be registered in the
Note Register or be effective hereunder, unless evidenced by an Opinion of
Counsel that establishes that such transfer and the registration of such
transfer will not cause the Issuer, or any portion thereof, to be characterized
as an association (or a publicly traded partnership) taxable as a corporation
either by having more than 100 holders of the Certificates and the Non-Offered
Subordinate Notes, other than the Class IIX-IO Notes, at any time during the
taxable year of the Issuer or otherwise, a corporation or a taxable mortgage
pool for federal income tax purposes.

         No Non-Offered Subordinate Note (other than a Class IIX-IO Note) or any
interest therein (the "Transferred Note or Interest") may be transferred unless
all of the Non-Offered Subordinate Notes (other than the Class IIX-IO Notes) and
all interests therein are transferred together with the Transferred Note or
Interest. Any purported transfers in violation of this provision shall be void.

         In addition, no transfer, sale, assignment, pledge or other disposition
of a Non-Offered Subordinate Note, other than a Class IIX-IO Note, shall be made
unless the proposed transferee executes a representation letter substantially in
the form of Exhibit [E], that (i) such transferee is acquiring the Non-Offered
Subordinate Note for its own behalf and is not acting as agent or custodian for
any other Person or entity in connection with such acquisition, (ii) if such
transferee is a partnership, grantor trust or S corporation for federal income
tax purposes, Non-Offered Subordinate Notes represent not more than 50% of the
assets of the partnership, grantor trust or S corporation, (iii) such transferee
agrees to be bound by the Indenture and (iv) such transferee will not (x) incur
indebtedness secured by Non-Offered Subordinate Notes where payments on such
indebtedness bear a relationship to payments on either the Mortgage Loans in
Group I or the Mortgage Loans as a whole within the meaning of Treasury
Regulations Section 301.7701(i)-1(f) or (y) use a partnership, trust or other
entity to indirectly achieve the result described in clause (x).

         Except as described below, each holder of Non-Offered Subordinate
Notes, other than the Class IIX-IO Notes, shall establish its non-foreign status
by submitting to the Owner Trustee and the Indenture Trustee an IRS Form W-9 and
the Certificate of Non-Foreign Status (in substantially the form attached hereto
as Exhibit [F]).

         A Non-Offered Subordinate Note, other than a Class IIX-IO Note, may be
transferred to a Person unable to establish its non-foreign status as described
in the preceding paragraph only if such Person provides an Opinion of Counsel to
the Depositor, the Enhancer, the Owner Trustee and the Indenture Trustee, which
Opinion of Counsel shall not be an expense of the Trust, the Depositor, the
Enhancer, the Owner Trustee or the Indenture Trustee, satisfactory to the Owner
Trustee, the Indenture Trustee and the Enhancer, that such transfer (i) will not
affect the federal income tax status of the Trust or any portion thereof and
(ii) will not adversely affect the interests of any Certificateholder,
Noteholder or the Enhancer, including as a result of the imposition of any
federal withholding taxes on the Trust (except to the extent that such
withholding taxes would be payable solely from amounts otherwise distributable
to the Non-Offered Subordinate Notes of the prospective transferee). If such
transfer occurs and such foreign Person becomes subject to such federal
withholding taxes, any such taxes will be withheld by the Indenture Trustee.
Each holder of Non-Offered Subordinate Notes unable to

                                      -21-
<PAGE>

establish its non-foreign status shall submit to the Indenture Trustee a
properly completed copy of the type of Form W-8 that the Indenture Trustee shall
reasonably request and shall resubmit such form every three years or with the
frequency as required by then-applicable regulations.

         No Variable Funding Note, other than any Capped Funding Note, may be
transferred. Subject to the provisions set forth below, Capped Funding Notes may
be transferred; provided, that with respect to the initial transfer thereof by
the Seller, prior written notification of such transfer shall have been given to
each Rating Agency and the Enhancer by the Seller.

         No transfer, sale, pledge or other disposition of a Capped Funding Note
shall be made unless such transfer, sale, pledge or other disposition is exempt
from the registration requirements of the Securities Act, and any applicable
state securities laws, or is made in accordance with the Securities Act and such
state laws. In the event of any such transfer, the Indenture Trustee or the
Issuer shall require the transferee to execute either (i) an investment letter
in substantially the form attached hereto as Exhibit B (or in such form
reasonably satisfactory to the Indenture Trustee and the Issuer), which
investment letters shall not be an expense of the Issuer, the Owner Trustee, the
Indenture Trustee or the Depositor, and which investment letter shall state
that, among other things, such transferee is a "qualified institutional buyer"
as defined under Rule 144A, acting for its own account or for the accounts of
other "qualified institutional buyers" as defined under Rule 144A, and is aware
that the proposed transferor intends to rely on the exemption from registration
requirements under the Securities Act provided by Rule 144A or (ii) a written
Opinion of Counsel (who may be in-house counsel) acceptable to and in form and
substance reasonably satisfactory to the Indenture Trustee and the Issuer that
such transfer may be made pursuant to an exemption, describing the applicable
exemption and the basis therefor, from the Securities Act and such state laws or
is being made pursuant to the Securities Act and such state laws, which Opinion
of Counsel shall not be an expense of the Issuer, the Owner Trustee, the
Indenture Trustee or the Depositor, and the Indenture Trustee shall require the
transferee to execute an investment letter in substantially the form of Exhibit
C hereto, and the transferor shall execute a representation letter,
substantially in the form of Exhibit D hereto, acceptable to and in form and
substance reasonably satisfactory to the Issuer and the Indenture Trustee
certifying to the Issuer and the Indenture Trustee the facts surrounding such
transfer, which investment letter shall not be an expense of the Indenture
Trustee or the Issuer. The Holder of a Capped Funding Note desiring to effect
such transfer shall, and does hereby agree to, indemnify the Indenture Trustee
and the Issuer against any liability that may result if the transfer is not so
exempt or is not made in accordance with such federal or state laws.
Notwithstanding the foregoing, the restriction of transfer specified in this
paragraph is not applicable to any Capped Funding Notes that have been
registered under the Securities Act.

         Subject to the foregoing, at the option of the related Noteholders,
Notes may be exchanged for other Notes of like tenor and Class, in each case, in
authorized initial Note Balances (or Percentage Interests in the case of the
Class IIA-IO Notes) evidencing the same aggregate Percentage Interests upon
surrender of the Notes to be exchanged at the Corporate Trust Office of the
Indenture Trustee, as Note Registrar. With respect to any surrender of Capped
Funding Notes for exchange, the new Capped Funding Notes delivered in exchange
therefore shall bear the designation "Capped" in addition to any other
applicable designation. Whenever any Notes are so surrendered for exchange, the
Indenture Trustee shall execute, and

                                      -22-
<PAGE>

the Note Registrar shall authenticate and deliver, the Notes that the Noteholder
making such exchange is entitled to receive. Each Note presented or surrendered
for registration of transfer or exchange shall (if so required by the Note
Registrar) be duly endorsed by, or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Note Registrar duly executed by
the Holder thereof or his attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company. Notes delivered upon
any such transfer or exchange shall evidence the same obligations, and shall be
entitled to the same rights and privileges, as the Notes surrendered.

         No service charge shall be made for any registration of transfer or
exchange of any Notes, but the Note Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any such registration of transfer or exchange. All Notes
surrendered for registration of transfer and exchange shall be cancelled by the
Note Registrar and delivered to the Indenture Trustee for subsequent destruction
without liability on the part of either.

         The Issuer hereby appoints the Indenture Trustee as Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
to Section 3.08 of the Trust Agreement in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges thereof pursuant to
Section 3.04 of the Trust Agreement. The Indenture Trustee hereby accepts such
appointment.

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

         Upon the issuance of any replacement Note under this Section, the
Issuer may require the payment by the related Noteholder of a sum sufficient to
cover any tax or other governmental

                                      -23-
<PAGE>

charge that may be imposed in connection therewith and any other reasonable
related expenses (including the fees and expenses of the Indenture Trustee).

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

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

         Section 4.04. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Enhancer, the Indenture
Trustee and any agent of the Issuer, the Enhancer or the Indenture Trustee may
treat the Person in the name of which such Note is registered as of the date of
determination as the owner of such Note for the purpose of receiving payments of
principal and interest, if any, on such Note and for all other purposes
whatsoever, whether or not such Note shall be overdue; and neither the Issuer,
the Enhancer, the Indenture Trustee nor any agent of the Issuer, the Enhancer or
the Indenture Trustee shall be affected by notice to the contrary.

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

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

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

                                      -24-
<PAGE>

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

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

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

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

         Section 4.07. Notices to Depository. Whenever a notice or other
communication to the Offered Noteholders is required under this Indenture,
unless and until Definitive Notes shall have been issued to Beneficial Owners
pursuant to Section 4.08, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Offered Noteholders to the
Depository, and shall have no obligation to any Beneficial Owner.

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

                                      -25-
<PAGE>

         Section 4.09. Tax Treatment. (a) Offered Notes, the Variable Funding
Notes and the Class IIX-IO Notes. The Issuer has entered into this Indenture,
and the Offered Notes and the Class IIX-IO Notes shall be issued, with the
intention that, for federal, state and local income, single business and
franchise tax purposes, such Notes will qualify as indebtedness of the Issuer.

         The Issuer, by entering into this Indenture, and each holder of an
Offered Note, the Variable Funding Notes or a Class IIX-IO Note, by its
acceptance of such Note (and each Beneficial Owner by its acceptance of an
interest in such Note), agrees to treat such Note for federal, state and local
income, single business and franchise tax purposes as indebtedness of the
Issuer.

         (b)   Non-Offered Subordinate Notes (other than the Class IIX-IO
Notes). The Issuer has entered into this Indenture, and the Non-Offered
Subordinate Notes, other than the Class IIX-IO Notes, shall be issued, with the
intention that, for federal, state and local, income, single business and
franchise tax purposes, such Notes will qualify as equity of the Issuer.

         The Issuer, by entering into this Indenture, and each holder of a
Non-Offered Subordinate Note other than a Class IIX-IO Note, by its acceptance
of such Note (and each Beneficial Owner by its acceptance of a beneficial
interest in such Note), agrees (i) to treat such Note for federal, state and
local income, single business and franchise tax purposes as equity of the Issuer
and (ii) to the terms of Section 4.09(c) hereof and Sections 3.12 and 5.03 of
the Trust Agreement.

         (c)   If Certificates and Non-Offered Subordinate Notes (other than the
Class IIX-IO Notes) are held by more than one Person, the net income of the
Issuer for any month as determined for federal income tax purposes (and each
item of income, gain, loss, credit and deduction entering into the computation
thereof) shall be allocated among the Certificateholders and the holders of the
Non-Offered Subordinate Notes (other than the holders of the Class IIX-IO Notes)
as of the first Record Date following the end of such month, in accordance with
each such holder's Percentage Interest in the Non-Offered Subordinate Notes
(other than the Class IIX-IO Notes). Net losses of the Issuer, if any, for any
month as determined for federal income tax purposes (and each item of income,
gain, loss, credit and deduction entering into the computation thereof) shall be
allocated among the Certificateholders and the holders of the Non-Offered
Subordinate Notes (other than the Class IIX-IO Notes) as of the first Record
Date following the end of such month, in accordance with each such holder's
Percentage Interest in the Non-Offered Subordinate Notes (other than the Class
IIX-IO Notes). The Indenture Trustee, on behalf of the Depositor and at the
direction of the Master Servicer, is authorized to modify the allocations in
this paragraph if necessary or appropriate for the allocations to fairly reflect
the economic income, gain or loss to the holders of the Certificates and the
Non-Offered Subordinate Notes (other than the Class IIX-IO Notes), or as
otherwise required by the Code. The Master Servicer shall act as agent of the
tax matters partner of the Trust.

         Section 4.10. Reserved.

         Section 4.11. Satisfaction and Discharge of Indenture. Upon the
occurrence of the events set forth in the immediately following sentence, this
Indenture shall cease to be of further effect with respect to the Notes except
as to (a) rights of registration of transfer and exchange, (b) substitution of
mutilated, destroyed, lost or stolen Notes, (c) rights of Noteholders to receive

                                      -26-
<PAGE>

payments of principal thereof and interest thereon, (d) Sections 3.03, 3.04,
3.06, 3.09, 3.16, 3.18 and 3.19, (e) the rights, obligations and immunities of
the Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.07 and the obligations of the Indenture Trustee under Section
4.11) and (f) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee payable to all or any of
them. The Indenture Trustee, upon the demand and at the expense of the Issuer,
shall execute proper instruments acknowledging the satisfaction and discharge of
this Indenture with respect to the Notes, when:

               (i)   367 days after either

                     (A)   all Notes theretofore authenticated and delivered
               (other than (1) Notes that have been destroyed, lost or stolen
               and that have been replaced or paid as provided in Section 4.03
               and (2) Notes for the payment of which money has theretofore been
               deposited in trust or segregated and held in trust by the Issuer
               and thereafter repaid to the Issuer or discharged from such
               trust, as provided in Section 3.03) have been delivered to the
               Indenture Trustee for cancellation; or

                     (B)   all Notes not theretofore delivered to the Indenture
               Trustee for cancellation (I) have become due and payable; (II)
               will become due and payable at the last Legal Final Payment Date
               within one year (III) or have been declared immediately due and
               payable pursuant to Section 5.02;

         and the Issuer, in the case of (I) or (II) above, has irrevocably
         deposited or caused to be irrevocably deposited with the Indenture
         Trustee cash or direct obligations of or obligations guaranteed by the
         United States of America that will mature prior to the date such
         amounts are payable, in trust for such purpose, in an amount sufficient
         to pay and discharge the entire indebtedness on the Notes then
         outstanding and not theretofore delivered to the Indenture Trustee for
         cancellation when due on the last Legal Final Payment Date and all
         amounts due to the Enhancer under the Insurance Agreement;

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

         Section 4.12. Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.11 shall be held in trust and applied by
the Indenture Trustee in accordance with the provisions of the Notes and this
Indenture to the payment, either directly or through the Paying Agent or the
Certificate Paying Agent, as the Indenture Trustee may determine, to the
Securityholders of all sums due and to become due thereon for principal and
interest and to the Enhancer all amounts due to the Enhancer under the Insurance
Agreement;

                                      -27-
<PAGE>

provided, that such monies need not be segregated from other funds except to the
extent required herein or required by law.

         Section 4.13. Reserved.

         Section 4.14. Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to the Notes shall, upon demand of the
Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.05, and thereupon the Paying Agent shall be released from all further
liability with respect to such monies.

         Section 4.15. Temporary Offered Notes. Pending the preparation of
Definitive Notes, the Issuer may execute, and upon its written direction, the
Indenture Trustee may authenticate and make available for delivery, temporary
Offered Notes that are printed, lithographed, typewritten, photocopied or
otherwise produced, in any denomination, substantially of the tenor of the
Definitive Notes in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Offered Notes may determine, as evidenced by their execution of
such Term Notes.

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

         Section 4.16. Subrogation and Cooperation.

         (a)   The Issuer and the Indenture Trustee acknowledge and each Group I
Noteholder by the acceptance of its Note agrees that (i) to the extent the
Enhancer makes payments under the Policy on account of principal of or interest
on the Group I Notes, the Enhancer will be fully subrogated to the rights of the
Group I Noteholders to receive such principal and interest, and (ii) the
Enhancer shall be paid such principal and interest only from the sources and in
the manner provided herein and in the Insurance Agreement for the payment of
such principal and interest.

         The Indenture Trustee shall cooperate in all respects with any
reasonable request by the Enhancer for action to preserve or enforce the
Enhancer's rights or interest under this Indenture or the Insurance Agreement,
consistent with this Indenture and without limiting the rights of the Group I
Noteholders as otherwise set forth in the Indenture, including upon the
occurrence and continuance of a default under the Insurance Agreement, a request
(which request shall be in writing) to take or cause to be taken any one or more
of the following actions (subject to Article VI hereof):

                                      -28-
<PAGE>

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

               (ii)  sell the portion of the Trust Estate attributable to Group
         I or any portion thereof or rights or interest therein, at one or more
         public or private Sales (as defined in Section 5.15 hereof) called and
         conducted in any manner permitted by law;

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

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

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

         Following the payment in full of the Group I Notes, the Enhancer shall
continue to have all rights and privileges provided to it under this Section and
in all other provisions of this Indenture, until all amounts owing to the
Enhancer have been paid in full and all obligations of the Enhancer under the
Policy have terminated. Thereafter, all rights of the Enhancer under this
Agreement shall terminate in their entirety.

         Section 4.17. Enhancer's Rights Regarding Actions, Proceedings or
Investigations. Until all Group I Notes have been paid in full, all amounts owed
to the Enhancer have been paid in full, the Indenture has terminated and the
Policy has been returned to the Enhancer for cancellation, the following
provisions shall apply exclusively to the Group I Notes and the portion of the
Trust and the Trust Estate attributable to Group I:

         (a)   Notwithstanding anything contained herein or in the other Basic
Documents to the contrary, the Enhancer shall have the right to participate in,
to direct the enforcement or defense of, and, at the Enhancer's sole option, to
institute or assume the defense of, any action, proceeding or investigation that
could adversely affect the Trust, the Trust Estate relating to Group I or the
rights or obligations of the Enhancer hereunder or under the Policy or the Basic
Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Master Servicer, the Trust or any affiliate
thereof. Following notice to the Indenture Trustee, the Enhancer shall have
exclusive right to determine, in its sole discretion, the actions necessary to
preserve and protect the Trust or the Trust Estate relating to Group I. All
costs and expenses of the Enhancer in connection with such action, proceeding or
investigation, including (without limitation) any judgment or settlement entered
into affecting the Enhancer or the Enhancer's interests, shall be included in
the reimbursement amounts due to the Enhancer under Section 3.05(a)(viii) of
this Agreement.

         (b)   In connection with any action, proceeding or investigation that
could adversely affect the Trust, the Trust Estate relating to Group I or the
rights or obligations of the Enhancer hereunder or under the Policy or the Basic
Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Master Servicer, the Trust or any affiliate

                                      -29-
<PAGE>

thereof, the Indenture Trustee, upon receipt of written notice, hereby agrees to
cooperate with, and to take such action as directed by, the Enhancer, including
(without limitation) entering into such agreements and settlements as the
Enhancer shall direct, in its sole discretion, without the consent of any
Noteholder.

         (c)   To the extent the Indenture Trustee has actual knowledge of such
event, the Indenture Trustee hereby agrees to provide to the Enhancer prompt
written notice of any action, proceeding or investigation that names the Trust,
the Trust Estate relating to Group I or the Indenture Trustee as a party or that
could adversely affect the Trust, the Trust Estate relating to Group I or the
rights or obligations of the Enhancer hereunder or under the Policy or the Basic
Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Master Servicer, the Seller, the Trust or any
affiliate thereof.

         (d)   Notwithstanding anything contained herein or in any of the other
Related Documents to the contrary, the Indenture Trustee shall not, without the
Enhancer's prior written consent or unless directed by the Enhancer, undertake
or join any litigation or agree to any settlement of any action, proceeding or
investigation affecting the Trust, the Trust Estate relating to Group I or the
rights or obligations of the Enhancer hereunder or under the Policy or the Basic
Documents.

         (e)   Each Group I Noteholder, by acceptance of its Note, and the
Indenture Trustee agree that Enhancer shall have such rights as set forth in
this Section, which are in addition to any rights of the Enhancer pursuant to
the other provisions of the Basic Documents, that the rights set forth in this
Section may be exercised by the Enhancer, in its sole discretion, without the
need for the consent or approval of any Group I Noteholder or the Indenture
Trustee, notwithstanding any other provision contained herein or in any of the
other Basic Documents, and that nothing contained in this Section shall be
deemed to be an obligation of the Enhancer to exercise any of the rights
provided for herein.

                                   ARTICLE V
                              DEFAULT AND REMEDIES

         Section 5.01. Notification of Certain Events of Default. The Issuer
shall deliver to the Indenture Trustee and the Enhancer, within five days after
learning of the occurrence of any event that with the giving of notice and the
lapse of time would become an Event of Default under paragraph (c) of the
definition of "Event of Default", written notice in the form of an Officer's
Certificate of the status thereof and what action the Issuer is taking or
proposes to take with respect thereto.

         Section 5.02. Acceleration of Maturity; Rescission and Annulment. (a)
If an Event of Default shall occur and be continuing with respect to the Group I
Notes or if the Depositor or the Master Servicer shall purchase all of the
Mortgage Loans in Group I pursuant to Section 8.08 of the Sale and Servicing
Agreement, then in every such case the Indenture Trustee, acting at the
direction of the Enhancer, or the Holders of Group I Notes representing not less
than a majority of the Note Balance of the Group I Notes (with the written
consent of the Enhancer), may (or shall, in the case of a Master Servicer
purchase under Section 8.08 of the Sale and Servicing

                                      -30-
<PAGE>

Agreement) declare the Group I Notes to be immediately due and payable, by a
notice in writing to the Issuer (and to the Indenture Trustee if given by the
Group I Noteholders) (with a copy to the Enhancer); and upon any such
declaration, the unpaid Note Balance of the Group I Notes, together with accrued
and unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

         At any time after a declaration of acceleration of maturity with
respect to an Event of Default has been made with respect to the Group I Notes
and before a judgment or decree for payment of the money due has been obtained
by the Indenture Trustee as hereinafter provided in this Article, the Enhancer
or the Holders of Group I Notes representing not less than a majority of the
aggregate Note Balance of the Group I Notes (with the written consent of the
Enhancer) that caused the acceleration of the Group I Notes, by written notice
to the Issuer and the Indenture Trustee, may in writing waive such Event of
Default and rescind and annul such declaration and its consequences if the
Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

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

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

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

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

         (b)   If an Event of Default shall occur and be continuing with respect
to the Group II Notes or if the Depositor or the Master Servicer shall purchase
all of the Mortgage Loans in Group II pursuant to Section 8.08 of the Sale and
Servicing Agreement, then in every such case the Indenture Trustee, acting at
the direction of the Holders of Group II Notes representing not less than a
majority of the Senior Group II Notes or the Subordinate Group II Notes, may (or
shall, in the case of a Master Servicer purchase under Section 8.08 of the Sale
and Servicing Agreement) declare the Group II Notes to be immediately due and
payable, by a notice in writing to the Issuer (and to the Indenture Trustee if
given by the Group II Noteholders); and upon any such declaration, the unpaid
Note Balance of the Group II Notes, together with (i) accrued and unpaid
interest thereon through the date of acceleration and (ii) amounts due to the
Class IIA-IO Notes and the Class IIX-IO Notes under the following sentence,
shall become immediately due and payable. If the Group II Notes are declared to
be due and payable under this Section 5.02(b), then (i) if the date on which the
Group II Notes are declared to be due and payable is prior to the payment date
in December 2004, the Class IIA-IO Notes will be entitled to receive their
adjusted issue price, which will equal the present value of the remaining
payments on the Class IIX-IO Notes, using a discount rate equal to the discount
rate reflected in the price paid by the initial

                                      -31-
<PAGE>

purchaser of the Class IIA-IO Notes on the Closing Date and (ii) the Class
IIX-IO Notes will be entitled to receive their adjusted issue price, which will
equal the present value of the expected remaining payments on the Class IIX-IO
Notes, using a prepayment assumption equal to 100% of the prepayment assumption
set forth in the Prospectus Supplement with respect to the Group II Mortgage
Loans and a discount rate equal to 9%.

         At any time after a declaration of acceleration of maturity with
respect to an Event of Default has been made with respect to the Group II Notes
and before a judgment or decree for payment of the money due has been obtained
by the Indenture Trustee as hereinafter provided in this Article, the Holders of
Group II Notes representing not less than a majority of the aggregate Note
Balance of the Senior Group II Notes or the Subordinate Group II Notes that
caused the acceleration of the Group II Notes, by written notice to the Issuer
and the Indenture Trustee, may in writing waive such Event of Default and
rescind and annul such declaration and its consequences if the Issuer has paid
or deposited with the Indenture Trustee a sum sufficient to pay:

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

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

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

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

         Section 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

         (a)   The Issuer covenants that if a default occurs in the payment of
(i) interest on any Note when the same becomes due and payable, and such default
continues for a period of five (5) days, or (ii) principal of any Note when the
same becomes due and payable; then, in each case the Issuer shall, upon demand
of the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Noteholders, the entire amount then due and payable on the Notes for principal
and interest, with interest on the overdue principal at the applicable Note
Rate. In addition thereto, the foregoing shall include such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.

         (b)   As to the Group I Notes, in case the Issuer shall fail forthwith
to pay such amounts upon such demand, the Indenture Trustee, in its own name and
as trustee of an express trust, subject to the provisions of Section 10.16, may,
and at the direction of the Enhancer or of the Holders of Group I Notes
representing not less than a majority of the aggregate Note Balance

                                      -32-
<PAGE>

of the Group I Notes (with the consent of the Enhancer), shall, institute
Proceedings for the collection of the sums so due and unpaid, and may prosecute
such Proceedings to judgment or final decree, and may enforce the same against
the Issuer or other obligor on the Group I Notes and collect in the manner
provided by law out of the property of the Issuer or such other obligor on the
Group I Notes, wherever situated, the monies adjudged or decreed to be payable.

         (c)   As to the Group II Notes, in case the Issuer shall fail forthwith
to pay such amounts upon such demand, the Indenture Trustee, in its own name and
as trustee of an express trust, subject to the provisions of Section 10.16, may,
and at the direction of the Holders of Group II Notes representing not less than
a majority of the aggregate Note Balance of the Group II Notes or Subordinate
Group II Notes, shall, institute Proceedings for the collection of the sums so
due and unpaid, and may prosecute such Proceedings to judgment or final decree,
and may enforce the same against the Issuer or other obligor on the Group II
Notes and collect in the manner provided by law out of the property of the
Issuer or such other obligor on the Group II Notes, wherever situated, the
monies adjudged or decreed to be payable.

         (d)   If an Event of Default shall occur and be continuing, the
Indenture Trustee, subject to the provisions of Section 10.16, may, as more
particularly provided in Section 5.04, in its discretion proceed to protect and
enforce its rights and the rights of the Noteholders by such appropriate
Proceedings as the Indenture Trustee shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy or legal or equitable right vested
in the Indenture Trustee by this Indenture or by law.

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

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

                                      -33-
<PAGE>

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

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

               (iv)  to file such proofs of claim and other papers or documents
         as may be necessary or advisable in order to have the claims of the
         Indenture Trustee or the Noteholders allowed in any judicial Proceeding
         relating to the Issuer, its creditors or its property;

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

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

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

         (h)   In any Proceeding brought by the Indenture Trustee (including any
Proceeding involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all Noteholders, and it shall not be necessary to make any
Noteholder a party to any such Proceeding.

         Section 5.04. Remedies; Priorities.

         (a)   As to the Group I Notes, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee, subject to the provisions of
Section 10.16 and Section 5.05, with the written consent of the Enhancer, may,
or, shall, at the direction of the Enhancer or

                                      -34-
<PAGE>

Group I Notes representing not less than a majority of the aggregate Note
Balance of the Group I Notes (with the written consent of the Enhancer), do one
or more of the following:

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

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

               (iii) exercise any remedies of a secured party under the UCC and
         take any other appropriate action to protect and enforce the rights and
         remedies of the Indenture Trustee and the Group I Noteholders; and

               (iv)  sell the portion of the Trust Estate attributable to Group
         I or any smaller portion thereof or any right or interest therein at
         one or more public or private sales called and conducted in any manner
         permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the portion of the Trust Estate attributable to Group I following an
Event of Default, unless (A) the Indenture Trustee obtains the consent of the
Enhancer, which consent shall not be unreasonably withheld, and the Holders of
Group I Notes representing 100% of the aggregate Note Balance of the Group I
Notes, (B) the proceeds of such sale or liquidation distributable to the Group I
Noteholders are sufficient to discharge in full all amounts then due and unpaid
on the Group I Notes for principal and interest and to reimburse the Enhancer
for any amounts drawn under the Policy and any other amounts due the Enhancer
under the Insurance Agreement, or (C) the Indenture Trustee determines that the
Mortgage Loans assigned to Group I will not continue to provide sufficient funds
for the payment of principal of and interest on the Group I Notes as the same
would have become due if the Group I Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent of the Enhancer, which
consent shall not be unreasonably withheld, and the Holders of Group I Notes
representing not less than 66 2/3% of the aggregate Note Balance of the Group I
Notes. In determining such sufficiency or insufficiency with respect to clauses
(B) and (C) above, the Indenture Trustee may, but need not, obtain and rely upon
an opinion of an Independent investment banking or accounting firm of national
reputation addressed to the Indenture Trustee and the Enhancer as to the
feasibility of such proposed action and as to the sufficiency of the portion of
the Trust Estate attributable to Group I for such purpose. Notwithstanding the
foregoing, for so long as a Servicing Default shall not have occurred, any Sale
of the portion of the Trust Estate attributable to Group I shall be made subject
to the continued servicing of the Mortgage Loans by the Master Servicer as
provided in the Sale and Servicing Agreement. Notwithstanding any sale of the
Mortgage Loans assigned to Group I pursuant to this Section 5.04(a), the
Indenture Trustee shall, for so long as any principal or accrued interest on the
Notes remains unpaid, continue to act as Indenture Trustee hereunder and to draw
amounts payable under the Policy in accordance with the terms of the Policy.

                                      -35-
<PAGE>

         (b)   As to the Group II Notes, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee, subject to the provisions of
Section 10.16 and Section 5.05, may, or, shall, at the direction of the Group II
Notes representing not less than a majority of the aggregate Note Balance of the
Group II Notes, do one or more of the following:

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

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

               (iii) exercise any remedies of a secured party under the UCC and
         take any other appropriate action to protect and enforce the rights and
         remedies of the Indenture Trustee and the Group II Noteholders; and

               (iv)  sell the portion of the Trust Estate attributable to Group
         II or any smaller portion thereof or any right or interest therein at
         one or more public or private sales called and conducted in any manner
         permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the portion of the Trust Estate attributable to Group II following an
Event of Default, unless (A) the Indenture Trustee obtains the consent of the
Holders of Group II Notes representing 100% of the aggregate Note Balance of the
Group II Notes, (B) the proceeds of such sale or liquidation distributable to
the Group II Noteholders are sufficient to discharge in full all amounts then
due and unpaid on the Group II Notes for principal and interest, or (C) the
Indenture Trustee determines that the Mortgage Loans assigned to Group II will
not continue to provide sufficient funds for the payment of principal of and
interest on the Group II Notes as the same would have become due if the Group II
Notes had not been declared due and payable, and the Indenture Trustee obtains
the consent of the Holders of Group II Notes representing not less than 66 2/3%
of the aggregate Note Balance of the Group II Notes. In determining such
sufficiency or insufficiency with respect to clauses (B) and (C) above, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation
addressed to the Indenture Trustee as to the feasibility of such proposed action
and as to the sufficiency of the portion of the Trust Estate attributable to
Group II for such purpose. Notwithstanding the foregoing, for so long as a
Servicing Default shall not have occurred, any Sale of the portion of the Trust
Estate attributable to Group II shall be made subject to the continued servicing
of the Mortgage Loans by the Master Servicer as provided in the Sale and
Servicing Agreement.

         (c)   As to the Group I Notes, if the Indenture Trustee collects any
money or property pursuant to this Article (or in any case following an Event of
Default and an acceleration of the Group I Notes), it shall pay out such money
or property in the following order:

                                      -36-
<PAGE>

               (i)   to the Enhancer the accrued and unpaid Premium for the
         Policy;

               (ii)  to the Indenture Trustee, for amounts due under Section
         6.07 and to the Administrator for amounts due under Section 4 of the
         Administration Agreement and to the Owner Trustee, for amounts due to
         it under the Basic Documents;

               (iii) to the Group I Noteholders, for amounts due and unpaid on
         the Group I Notes in respect of interest, ratably, without preference
         or priority of any kind, according to the amounts then due and payable;

               (iv)  to the Group I Noteholders, for amounts due and unpaid on
         the Group I Notes in respect of principal, ratably, without preference
         or priority of any kind, according to the amounts then due and payable,
         until the respective Note Balances of the Group I Notes have been
         reduced to zero;

               (v)   to the payment of all amounts due and owing the Enhancer
         under the Insurance Agreement;

               (vi)  to the Indenture Trustee any remaining amounts for
         distribution to the Holders of Certificates and the Non-Offered
         Subordinate Notes in accordance with Section 3.26(c).

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

         (d)   As to the Group II Notes, if the Indenture Trustee collects any
money or property pursuant to this Article (or in any case following an Event of
Default and an acceleration of the Group II Notes), it shall pay out such money
or property in the following order:

               (i)   to the Indenture Trustee, for amounts due under Section
         6.07 and to the Administrator for amounts due under Section 4 of the
         Administration Agreement and to the Owner Trustee, for amounts due to
         it under the Basic Documents;

               (ii)  to the Senior Group II Noteholders, the Class IIA-IO
         Noteholders and the Class IIX-IO Noteholders, for amounts due and
         unpaid on the related Group II Notes in respect of interest, ratably,
         without preference or priority of any kind, according to the amounts
         then due and payable;

               (iii) to the Senior Group II Noteholders, for amounts due and
         unpaid on the related Senior Group II Notes, respectively, in respect
         of principal, ratably, without preference or priority of any kind,
         according to the amounts then due and payable, until the respective
         Note Balances of the Senior Group II Notes have been reduced to zero;

               (iv)  to the Class IIM-1 Noteholders, for amounts due and unpaid
         on the Class IIM-1 Notes in respect of interest, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable;

                                      -37-
<PAGE>

               (v)   to the Class IIM-1 Noteholders, for amounts due and unpaid
         on the Class IIM-1 Notes in respect of principal, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable, until the respective Note Balances of the Class M-1 Notes
         have been reduced to zero;

               (vi)  to the Class IIM-2 Noteholders, for amounts due and unpaid
         on the Class IIM-2 Notes in respect of interest, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable;

               (vii) to the Class IIM-2 Noteholders, for amounts due and unpaid
         on the Class IIM-2 Notes in respect of principal, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable, until the respective Note Balances of the Class M-2 Notes
         have been reduced to zero;

               (viii)to the Class IIB-1 Noteholders, for amounts due and unpaid
         on the Class IIB-1 Notes in respect of interest, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable;

               (ix)  to the Class IIB-1 Noteholders, for amounts due and unpaid
         on the Class IIB-1 Notes in respect of interest, ratably, without
         preference or priority of any kind, according to the amounts then due
         and payable, until the respective Note Balances of the Class IIB-1
         Notes have been reduced to zero;

               (x)   to the Class IIA-IO Noteholders, an amount equal to the
         adjusted issue price of the Class IIA-IO Notes as determined under
         Section 5.02(b), to the extent that such Noteholders are entitled to
         such amount under Section 5.02(b);

               (xi)  to the Class IIX-IO Noteholders, an amount equal to the
         adjusted issue price of the Class IIX-IO Notes as determined under
         Section 5.02(b); and

               (xii) to the Certificate Paying Agent any remaining amounts for
         distribution to the Holders of Certificates and the Non-Offered
         Subordinate Notes in accordance with Section 3.26(c).

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

         Section 5.05. Optional Preservation of the Trust Estate. If either the
Group I Notes or Group II Notes have been declared due and payable under Section
5.02 following an Event of Default, and such declaration and its consequences
have not been rescinded and annulled, the Indenture Trustee may, but need not
(but shall at the written direction of the Enhancer in the case of the Group I
Notes), elect to take and maintain possession of the Trust Estate. As to the
Group I Notes, it is the desire of the Issuer and the Group I Noteholders that
there be at all times sufficient funds for the payment of principal of and
interest on the Group I Notes and other obligations of the Issuer, including
payment to the Enhancer. As to the Group II Notes, it is the desire of the
Issuer and the Group II Noteholders that there be at all times sufficient funds
for the

                                      -38-
<PAGE>

payment of principal of and interest on the Group II Notes and other
obligations of the Issuer. In determining whether to take and maintain
possession of the Trust Estate, the Indenture Trustee may, but need not, obtain
and rely upon an opinion of an Independent investment banking or accounting firm
of national reputation addressed to the Indenture Trustee and, in the case of
Group I, the Enhancer as to the feasibility of such proposed action and as to
the sufficiency of the Trust Estate for such purpose.

         Section 5.06. Limitation of Suits. No Noteholder shall have any right
to institute any Proceeding with respect to this Indenture, for the appointment
of a receiver or trustee or for any other remedy hereunder, unless (subject to
the provisions of Section 10.16):

         (a)   such Noteholder shall have previously given written notice to the
Indenture Trustee of a continuing Event of Default;

         (b)   the Holders of Notes representing not less than 25% of the
aggregate Note Balance of the Group I Notes or Group II Notes, as applicable,
shall have made written request to the Indenture Trustee to institute such
Proceeding in respect of such Event of Default in its own name as Indenture
Trustee hereunder;

         (c)   such Noteholders shall have offered the Indenture Trustee
reasonable indemnity against the costs, expenses and liabilities that may be
incurred by it in complying with such request;

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

         (e)   no direction inconsistent with such written request shall have
been given to the Indenture Trustee during such 60-day period by the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes or Group II Notes, as applicable, or, in the case of the Group I
Notes, by the Enhancer; and

         (f)   in the case of the Group I Notes, the Enhancer has given its
prior written consent.

         No Noteholder shall have any right in any manner whatsoever by virtue
of or by availing itself of any provision of this Indenture to affect, disturb
or prejudice the rights of any other Noteholder, to obtain or to seek to obtain
priority or preference over any other Noteholder or to enforce any right under
this Indenture, in each case except in the manner herein provided.

         In the event that the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the aggregate Note Balance of the Group I
Notes or Group II Notes, as applicable, the Indenture Trustee in its sole
discretion may determine what action, if any, shall be taken, notwithstanding
any other provision of this Indenture.

         Section 5.07. Unconditional Right of Noteholders To Receive Principal
and Interest. Notwithstanding any other provision of this Indenture, each
Noteholder shall have the right, which is absolute and unconditional, to receive
payment of the interest and principal, if any, due on such Noteholder's Notes on
or after the due date expressed in such Notes or in this Indenture

                                      -39-
<PAGE>

and to institute suit for the enforcement of any such payment. Such right shall
not be impaired without the consent of the related Noteholder.

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

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

         Section 5.10. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Enhancer or any Noteholder to exercise any right or
remedy accruing upon an Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Indenture Trustee,
the Enhancer or the Noteholders may be exercised from time to time, and as often
as may be deemed expedient, by the Indenture Trustee, the Enhancer or the
Noteholders, as the case may be.

         Section 5.11. Control by Enhancer or Noteholders. (a) The Enhancer (so
long as no Enhancer Default exists and is continuing) or the Holders of Group I
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, with the consent of the Enhancer (unless this Indenture provides
that the Group I Notes may direct such action), shall have the right to direct
the time, method and place of conducting any Proceeding for any remedy available
to the Indenture Trustee with respect to the Group I Notes or exercising any
trust or power conferred on the Indenture Trustee; provided that:

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

         (ii)  subject to Section 5.04, any direction to the Indenture Trustee
to sell or liquidate the portion of the Trust Estate relating to Group I shall
be given by the Enhancer (so long as no Enhancer Default exists and is
continuing) or by the Holders of Group I Notes representing 100% of the
aggregate Note Balance of the Group I Notes with the consent of the Enhancer;

         (iii) if the conditions set forth in Section 5.05 have been satisfied
and the Indenture Trustee elects to retain the portion of the Trust Estate
attributable to Group I pursuant to such Section, then any direction to the
Indenture Trustee by Holders of Group I Notes representing

                                      -40-
<PAGE>

less than 100% of the aggregate Note Balance of the Group I Notes to sell or
liquidate the portion of the Trust Estate attributable to Group I shall be of no
force or effect; and

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

Notwithstanding the rights of the Noteholders and the Enhancer as set forth in
this Subsection, and subject to Section 6.01, the Indenture Trustee need not
take any action that it determines might subject it to liability or might
materially and adversely affect the rights of any Group I Noteholders not
consenting thereto unless the Indenture Trustee has received indemnity
satisfactory to it from the Enhancer or a Group I Noteholder.

         (b)   The Holders of Group II Notes representing not less than a
majority of the aggregate Note Balance of the Group II Notes shall have the
right to direct the time, method and place of conducting any Proceeding for any
remedy available to the Indenture Trustee with respect to the Group II Notes or
exercising any trust or power conferred on the Indenture Trustee; provided that:

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

         (ii)  subject to Section 5.04, any direction to the Indenture Trustee
to sell or liquidate the portion of the Trust Estate relating to Group II shall
be given by the Holders of Group II Notes representing 100% of the aggregate
Note Balance of the Group II Notes;

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

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

Notwithstanding the rights of the Noteholders as set forth in this Subsection,
and subject to Section 6.01, the Indenture Trustee need not take any action that
it determines might subject it to liability or might materially and adversely
affect the rights of any Group II Noteholders not consenting thereto unless the
Indenture Trustee has received indemnity satisfactory to it from a Group II
Noteholder.

         Section 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of either the Group I Notes or the Group II Notes
as provided in Section 5.02, the Enhancer (with respect to the Group I Notes
only and so long as no Enhancer Default exists and is continuing) or the Holders
of Notes representing not less than a majority of the aggregate Note Balance of
the Group I Notes or the Group II Notes, as applicable, (with the consent of the
Enhancer in the case of the Group I Notes) that caused the acceleration of such
Notes may waive any past Event of Default and its consequences, except an Event
of Default (a) with respect to payment of principal of or interest on such Notes
or (b) in respect of a covenant or provision hereof that cannot be modified or
amended without the consent of all Noteholders or each

                                      -41-
<PAGE>

Noteholder affected thereby. In the case of any such waiver, the Issuer, the
Enhancer (in the case of the Group I Notes), the Indenture Trustee and the
applicable Noteholders shall be restored to their respective former positions
and rights hereunder; provided, that no such waiver shall extend to any
subsequent or other Event of Default or impair any right consequent thereto.

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

         Section 5.13. Undertaking for Costs. The parties hereto agree, and each
Noteholder, by such Noteholder's acceptance of a Note, shall be deemed to have
agreed, that any court may in its discretion require, in any Proceeding for the
enforcement of any right or remedy under this Indenture, or in any Proceeding
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such Proceeding of an
undertaking to pay the costs of such Proceeding, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such Proceeding, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; provided,
that the provisions of this Section shall not apply to any Proceeding instituted
by (i) the Indenture Trustee, (ii) any Noteholder or group of Noteholders, in
each case holding Notes representing in the aggregate more than 10% of the
aggregate Note Balance (or in the case of a right or remedy under this Indenture
which is instituted by the Group I Notes, the Senior Group II Notes or the
Subordinate Group II Notes, more than 10% of the Note Balance of the Group I
Notes, the Senior Group II Notes or the Subordinate Group II Notes, as the case
may be) or (iii) any Noteholder for the enforcement of the payment of principal
of or interest on any Note on or after the due date expressed in such Note and
in this Indenture.

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

         Section 5.15. Sale of Trust Estate.

         (a)   The power to effect any sale or other disposition (each, a
"Sale") of any portion of the Trust Estate attributable to Group I or Group II,
as applicable, pursuant to Section 5.04 is expressly subject to the provisions
of Section 5.05 and this Section. The power to effect any such Sale shall not be
exhausted by any one or more Sales as to any portion of the Trust Estate
remaining unsold. The power to effect any such Sale shall continue unimpaired
until the entire portion of the Trust Estate attributable to Group I or Group
II, as applicable, has been sold or all amounts payable on the related Class or
Classes of Notes under this Indenture have been paid. The Indenture Trustee may
from time to time postpone any public Sale by public announcement

                                      -42-
<PAGE>

made at the time and place of such Sale. The Indenture Trustee hereby expressly
waives its right to any amount fixed by law as compensation for any Sale.

         (b)   The Indenture Trustee shall not in any private Sale sell the
portion of the Trust Estate attributable to Group I or Group II, as applicable,
or any smaller portion thereof, unless:

               (i)   the Noteholders of all affected Notes and the Enhancer (in
         the case of the Mortgage Loans assigned to Group I) direct the
         Indenture Trustee to make such Sale;

               (ii)  the proceeds of such Sale would be not less than the entire
         amount that would be payable to the affected Securityholders and the
         Enhancer (in the case of the Mortgage Loans assigned to Group I) in
         respect of amounts drawn under the Policy and any other amounts due the
         Enhancer under the Insurance Agreement, in full payment thereof in
         accordance with Section 5.02, on the Payment Date next succeeding the
         date of such Sale; or

               (iii) the Indenture Trustee determines, in its sole discretion,
         that the conditions for retention of the Trust Estate set forth in
         Section 5.05 cannot be satisfied (and in making any such determination,
         the Indenture Trustee may rely upon an opinion of an Independent
         investment banking firm obtained and delivered as provided in Section
         5.05), and the Enhancer (in the case of the Mortgage Loans assigned to
         Group I) consents to such Sale (which consent shall not be unreasonably
         withheld), and Holders of Notes representing not less than 66 2/3% of
         the aggregate Note Balance of the affected Notes consent to such Sale.

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

         (c)   Unless the Noteholders and the Enhancer (in the case of the
Mortgage Loans assigned to Group I) have otherwise consented or directed the
Indenture Trustee, at any public Sale of all or any portion of the Trust Estate
at which a minimum bid equal to or greater than the amount described in clause
(ii) of paragraph (b) of this Section has not been established by the Indenture
Trustee, and no Person bids an amount equal to or greater than such amount, the
Indenture Trustee shall bid an amount at least $1.00 greater than the highest
other bid.

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

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

                                      -43-
<PAGE>

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

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

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

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

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

         Section 5.17. Performance and Enforcement of Certain Obligations.

         (a)   Promptly following a written request from the Enhancer (in the
case of the Mortgage Loans assigned to Group I) or the Indenture Trustee (with
the written consent of the Enhancer in the case of the Mortgage Loans assigned
to Group I) to do so, the Issuer, in its capacity as owner of the Mortgage
Loans, shall, with the written consent of the Enhancer (in the case of the
Mortgage Loans assigned to Group I), take all such lawful action as the
Indenture Trustee or the Enhancer (in the case of the Mortgage Loans assigned to
Group I) may request to cause the Issuer to compel or secure the performance and
observance by the Seller and the Master Servicer, as applicable, of each of
their obligations to the Issuer under or in connection with the Mortgage Loan
Purchase and Servicing Agreement and the Sale and Servicing

                                      -44-
<PAGE>

Agreement, and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Issuer under or in connection with the Mortgage Loan
Purchase and Servicing Agreement, and the Sale and Servicing Agreement, to the
extent and in the manner directed by the Indenture Trustee, as pledgee of the
Mortgage Loans, including the transmission of notices of default on the part of
the Seller or the Master Servicer thereunder and the institution of Proceedings
to compel or secure performance by the Seller or the Master Servicer of each of
their obligations under the Mortgage Loan Purchase and Servicing Agreement and
the Sale and Servicing Agreement.

         (b)   As to the Group I Notes, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee, as pledgee of the Mortgage
Loans assigned to Group I, subject to the rights of the Enhancer under the Sale
and Servicing Agreement, may, and at the direction (which direction shall be in
writing or by telephone confirmed in writing promptly thereafter) of the Holders
of Notes representing not less than 66 2/3% of the aggregate Note Balance of the
Group I Notes, shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Seller or the Master Servicer under or in
connection with the Mortgage Loan Purchase and Servicing Agreement or the Sale
and Servicing Agreement, including the right or power to take any action to
compel or secure performance or observance by the Seller or the Master Servicer,
as the case may be, of each of their respective obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Mortgage Loan Purchase and Servicing Agreement or
the Sale and Servicing Agreement, as the case may be, and any right of the
Issuer to take such action shall not be suspended. In connection therewith, as
determined by the Indenture Trustee, the Issuer shall execute all documents
provided to it by the Indenture Trustee necessary to effect the transfer of the
Mortgage Loans assigned to Group I to the Indenture Trustee.

         (c)   As to the Group II Notes, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee, as pledgee of the Mortgage
Loans assigned to Group II, may, and at the direction (which direction shall be
in writing or by telephone confirmed in writing promptly thereafter) of the
Holders of Notes representing not less than 66 2/3% of the aggregate Note
Balance of the Senior Group II Notes or the Subordinate Group II Notes, shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Seller or the Master Servicer under or in connection with the
Mortgage Loan Purchase and Servicing Agreement or the Sale and Servicing
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller or the Master Servicer, as the case may
be, of each of their respective obligations to the Issuer thereunder and to give
any consent, request, notice, direction, approval, extension or waiver under the
Mortgage Loan Purchase and Servicing Agreement or the Sale and Servicing
Agreement, as the case may be, and any right of the Issuer to take such action
shall not be suspended. In connection therewith, as determined by the Indenture
Trustee, the Issuer shall execute all documents provided to it by the Indenture
Trustee necessary to effect the transfer of the Mortgage Loans assigned to Group
II to the Indenture Trustee.

                                      -45-
<PAGE>

                                   ARTICLE VI
                              THE INDENTURE TRUSTEE

         Section 6.01. Duties of Indenture Trustee.

         (a)   If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent Person would exercise under the circumstances in the conduct of such
Person's own affairs.

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

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

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

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

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

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

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

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

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

         (f)   No provision of this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to

                                      -46-
<PAGE>

believe that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

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

         (h)   For all purposes under this Indenture, the Indenture Trustee
shall not be deemed to have notice or knowledge of any Amortization Event or
Event of Default unless a Responsible Officer has actual knowledge thereof or
unless written notice of any event which is in fact an Amortization Event or an
Event of Default is received by the Indenture Trustee at the Corporate Trust
Office, and such notice references the Notes generally, the Issuer, or this
Indenture.

         (i)   The Indenture Trustee shall comply with all applicable
information reporting requirements with respect to payments on the Notes under
this Indenture.

         Section 6.02. Rights of Indenture Trustee.

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

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

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

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

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

         Section 6.03. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Securities and may otherwise deal with the Issuer and its Affiliates with the
same rights that it would have if it were not Indenture Trustee. Any Note
Registrar, co-registrar or co-paying agent may do the same with

                                      -47-
<PAGE>

like rights. Notwithstanding the foregoing, the Indenture Trustee must comply
with Sections 6.11 and 6.12.

         Section 6.04. Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be (a) responsible for and makes no representation as to the validity
or adequacy of this Indenture or the Notes, (b) accountable for the Issuer's use
of the proceeds from the sale of the Notes or (c) responsible for any statement
of the Issuer in the Indenture, in any document issued in connection with the
sale of the Notes or in the Notes, other than the Indenture Trustee's
certificate of authentication.

         Section 6.05. Notice of Event of Default. The Indenture Trustee shall
mail to each Noteholder notice of any Event of Default within 90 days promptly
after such Event of Default occurs. Except in the case of an Event of Default
relating to the payment of principal of or interest on any Note, the Indenture
Trustee may withhold such notice to the Noteholders only if and for so long as a
committee of its Responsible Officers in good faith determines that withholding
such notice is in the interests of the Noteholders. If an Event of Default with
respect to the Group I Notes shall occur and be continuing, and if such Event of
Default is known to a Responsible Officer of the Indenture Trustee, then the
Indenture Trustee shall give notice thereof to the Enhancer.

         Section 6.06. Reports by Indenture Trustee to Noteholders. The
Indenture Trustee shall deliver to each Noteholder such information in the
possession of the Indenture Trustee as may be required to enable such Noteholder
to prepare its federal and state income tax returns. In addition, upon Issuer
Request, the Indenture Trustee shall promptly furnish information in the
possession of the Indenture Trustee reasonably requested by the Issuer that is
reasonably available to the Indenture Trustee to enable the Issuer to perform
its federal and state income tax reporting obligations.

         Section 6.07. Compensation. The Indenture Trustee shall be compensated
and indemnified by the Master Servicer in accordance with Section 6.06 of the
Sale and Servicing Agreement, and all amounts owing to the Indenture Trustee
hereunder and not paid pursuant to Sections 3.17 and 6.06 of the Sale and
Servicing Agreement shall be paid solely as provided in Sections 3.05(a)(x),
3.05(b) and 5.04 (subject to the priorities set forth therein). The Indenture
Trustee's compensation shall not be limited by any law relating to compensation
of a trustee of an express trust. The Issuer shall reimburse the Indenture
Trustee for all reasonable out-of-pocket expenses incurred or made by the
Indenture Trustee in addition to the compensation for its services as provided
in Sections 3.05(a)(x) and 3.05(b). Such expenses shall include costs of
collection and reasonable compensation and expenses, disbursements and advances
of the Indenture Trustee's agents, counsel, accountants and experts.

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

                                      -48-
<PAGE>

         Section 6.08. Replacement of Indenture Trustee. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section. The Indenture Trustee may
resign at any time by so notifying the Issuer and the Enhancer. The Enhancer or
the Holders of Notes representing not less than a majority of the aggregate Note
Balance of the Group I Notes, the Senior Group II Notes or the Subordinate Group
II Notes (with the consent of the Enhancer) may remove the Indenture Trustee by
so notifying the Indenture Trustee, and the Enhancer (if given by such
Noteholders), and may appoint a successor Indenture Trustee. The Issuer shall
remove the Indenture Trustee if:

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

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

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

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

         If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall promptly appoint a successor Indenture Trustee with the consent of
the Enhancer, which consent shall not be unreasonably withheld. In addition, the
Indenture Trustee shall resign to avoid being directly or indirectly controlled
by the Issuer.

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

         If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of Notes representing not less than
a majority of the aggregate Note Balance may petition any court of competent
jurisdiction for the appointment of a successor Indenture Trustee.

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

         Section 6.09. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into or transfers all or
substantially all its corporate trust business or assets to another corporation
or banking association, the resulting, surviving or transferee without any
further act shall be the successor Indenture Trustee hereunder; provided, that
such corporation or banking association shall be otherwise qualified and
eligible under

                                      -49-
<PAGE>

Section 6.11. The Indenture Trustee shall provide each Rating Agency and the
Enhancer with written notice of any such transaction after the Closing Date.

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

         Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

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

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

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

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

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

                                      -50-
<PAGE>

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

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

         Section 6.11. Eligibility; Disqualification. (a) The Indenture Trustee
shall at all times satisfy the requirements of TIA ss.310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and it or its
parent shall have a long-term debt rating of A or better by Moody's. The
Indenture Trustee shall comply with TIA ss.310(b), including the optional
provision permitted by the second sentence of TIA ss.310(b)(9); provided, that
there shall be excluded from the operation of TIA ss.310(b)(1) any indenture or
indentures under which other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in TIA ss.310(b)(1) are met.

         (b)   Within ninety (90) days after ascertaining the occurrence of an
Event of Default which shall not have been cured or waived, unless authorized by
the TIA or the Commission, the Indenture Trustee shall resign with respect to
the Group I Notes, the Senior Group II Notes, the Class IIM-1 Notes, the IIM-2
Notes and/or the Class IIB-1 Notes in accordance with Section 6.08 of this
Indenture, and the Issuer shall appoint a successor Indenture Trustee
(acceptable to the Enhancer in the case of the Group I Notes) for two or more of
such Classes, as applicable, so that there will be separate Indenture Trustees
for the Group I Notes, the Senior Group II Notes, the Class IIM-1 Notes, the
Class IIM-2 Notes and the Class IIB-1 Notes. In the event the Indenture Trustee
fails to comply with the terms of the preceding sentence, the Indenture Trustee
shall comply with clauses (ii) and (iii) of TIA Section 310(b).

         (c)   In the case of the appointment hereunder of a successor Indenture
Trustee with respect to any Class of Notes pursuant to this Section 6.11,
Issuer, the retiring Indenture Trustee and the successor Indenture Trustee with
respect to such Class of Notes shall execute and deliver an indenture
supplemental hereto wherein each successor Indenture Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, the successor Indenture
Trustee all the rights, powers, trusts and duties of the retiring Indenture
Trustee with respect to the Notes of the Class to which the appointment of such
successor Indenture Trustee relates, (ii) if the retiring Indenture Trustee is
not retiring with respect to all Classes of Notes, shall contain such provisions
as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the

                                      -51-
<PAGE>

retiring Indenture Trustee with respect to the Notes of each Class as to which
the retiring Indenture Trustee is not retiring shall continue to be vested in
the Indenture Trustee and (iii) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Indenture Trustee, it
being understood that nothing herein or in such supplemental indenture shall
constitute such Indenture Trustees co-trustees of the same trust and that each
such Indenture Trustee shall be a trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Indenture Trustee; and upon the removal of the retiring Indenture Trustee
shall become effective to the extent provided herein.

         Section 6.12. Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA ss.311 (a), excluding any creditor
relationship listed in TIA ss.311 (b). Any Indenture Trustee that has resigned
or been removed shall be subject to TIA ss.311 (a) to the extent indicated
therein.

         Section 6.13. Representations and Warranties. The Indenture Trustee
hereby represents and warrants that:

         (a)   the Indenture Trustee is a national banking association duly
organized, validly existing and in good standing under the laws of the United
States, with full power and authority to own its properties and to conduct its
business as such properties are currently owned and such business is presently
conducted;

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

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

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

         (e)   the Indenture Trustee does not have notice of any adverse claim
(as such terms are used in UCC Section 8-302) with respect to the Mortgage
Loans.

         Section 6.14. Directions to Indenture Trustee. The Indenture Trustee is
hereby directed:

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

                                      -52-
<PAGE>

         (b)   to authenticate and deliver the Notes substantially in the form
of Exhibits A-1, A-2, A-3, A-4 and A-5 hereto in accordance with the terms of
this Indenture; and

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

         Section 6.15. Conflicting Instructions. If the Indenture Trustee
receives conflicting instructions from the Senior Group II Noteholders and the
Subordinate Group II Noteholders, the instructions of the Senior Group II
Noteholders shall control.

                                  ARTICLE VII
                         NOTEHOLDERS' LISTS AND REPORTS

         Section 7.01. Issuer To Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer shall furnish or cause to be furnished to the
Indenture Trustee or the Enhancer, as applicable, (i) not more than five days
after each Record Date, a list, in such form as the Indenture Trustee may
reasonably require, of the names and addresses of the Noteholders as of such
Record Date, and (ii) at such other times as the Indenture Trustee and the
Enhancer may request in writing, within 30 days after receipt by the Issuer of
any such request, a list in similar form and of similar content as of a date not
more than 10 days prior to the time such list is furnished; provided, that for
so long as the Indenture Trustee is the Note Registrar, no such list need be
furnished.

         Section 7.02. Preservation of Information; Communications to
Noteholders.

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

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

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

         Section 7.03. Reports by Issuer.

         (a)   Within 15 days after each Payment Date, the Indenture Trustee
shall file with the Commission via the Electronic Data Gathering and Retrieval
System (EDGAR), a Form 8-K with a copy of the statement to the Notheholders for
such Payment Date as an exhibit thereto. Prior to January 31, 2003 the Indenture
Trustee shall file a Form 15 Suspension Notification with respect to the Trust
Estate, if applicable. Prior to March 31, 2003, the Indenture Trustee shall file
a Form 10-K, in substance conforming to industry standards, with respect to the
Trust Estate. The Issuer hereby grants to the Indenture Trustee a limited power
of attorney to execute and file

                                      -53-
<PAGE>

each such document on behalf of the Issuer. Such power of attorney shall
continue until either the earlier of (i) receipt by the Indenture Trustee from
the Issuer of written termination of such power of attorney and (ii) the
termination of the Issuer. The Issuer agrees to promptly furnish to the
Indenture Trustee, from time to time upon request, such further information,
reports, and financial statements within its control related to this Indenture
and the Mortgage Loans as the Indenture Trustee reasonably deems appropriate to
prepare and file all necessary reports with the Commission. The Indenture
Trustee shall have no responsibility to file any item other that those specified
in this section.

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

         (c)   Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.

         Section 7.04. Reports by Indenture Trustee. If required by TIA
ss.313(a), within 60 days after each January 1, commencing with January 1, 2003,
the Indenture Trustee shall mail to each Noteholder as required by TIA ss.313(c)
and to the Enhancer a brief report dated as of such date that complies with TIA
ss.313(a). The Indenture Trustee also shall comply with TIA ss. 313(b).

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

                                  ARTICLE VIII
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

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

         Section 8.02. Reserved.

         Section 8.03. Officer's Certificate. The Indenture Trustee shall
receive at least seven days prior written notice when requested by the Issuer to
take any action pursuant to Section

                                      -54-
<PAGE>

8.05(a), accompanied by copies of any instruments to be executed; and the
Indenture Trustee shall require, as a condition to such action, an Officer's
Certificate in form and substance satisfactory to the Indenture Trustee stating
the legal effect of any such action, outlining the steps required to complete
the same and concluding that all conditions precedent to the taking of such
action have been satisfied.

         Section 8.04. Termination Upon Distribution to Noteholders. This
Indenture and the respective obligations and responsibilities of the Issuer and
the Indenture Trustee created hereby shall terminate upon the distribution to
Noteholders, the Enhancer and the Indenture Trustee of all amounts required to
be distributed pursuant to Article III or Article V. The rights of the Enhancer
shall terminate in accordance with Section 10.10.

         Section 8.05. Release of Trust Estate.

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

         (b)   The Indenture Trustee shall, at such time as (i) there are no
Group I Notes Outstanding and all sums due the Indenture Trustee and the
Enhancer pursuant to this Indenture have been paid, release the portion of the
Trust Estate that secured the Group I Notes from the Lien of this Indenture; and
(ii) there are no Group II Notes Outstanding and all sums due the Indenture
Trustee pursuant to this Indenture have been paid, release the portion of the
Trust Estate that secured the Group II Notes from the Lien of this Indenture;

         (c)   The Indenture Trustee shall release property from the Lien of
this Indenture pursuant to this Section only upon receipt of an Issuer Request
and, in the case of the Group I Notes only, a letter from the Enhancer stating
that the Enhancer has no objection to such request from the Issuer.

         (d)   In the case of the Group I Notes only, the Indenture Trustee
shall, at the request of the Issuer or the Depositor, surrender the Policy to
the Enhancer for cancellation, upon final payment of principal of and interest
on the Group I Notes.

         Section 8.06. Surrender of Notes Upon Final Payment. By acceptance of
any Note, the Holder thereof agrees to surrender such Note to the Indenture
Trustee promptly, prior to such Noteholder's receipt of the final payment
thereon.

                                      -55-
<PAGE>

                                   ARTICLE IX
                             SUPPLEMENTAL INDENTURES

         Section 9.01. Supplemental Indentures Without Consent of Noteholders.
Without the consent of the Holders of any Notes, but with prior written notice
to each Rating Agency and the prior written consent of the Enhancer, unless an
Enhancer Default shall have occurred and is continuing, the Issuer and the
Indenture Trustee, when authorized by an Issuer Request, at any time and from
time to time, may enter into one or more indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as in force at the
date of the execution thereof), in form satisfactory to the Indenture Trustee,
for any of the following purposes:

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

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

         (c)   to add to the covenants of the Issuer for the benefit of the
Noteholders or the Enhancer, or to surrender any right or power herein conferred
upon the Issuer;

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

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

         (f)   to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided, that
such action shall not materially and adversely affect the interests of the
Noteholders or the Enhancer (as evidenced by an Opinion of Counsel addressed to
the Indenture Trustee and the Enhancer);

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

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

provided, however, that no such supplemental indentures shall be entered into
unless the Indenture Trustee and the Enhancer shall have received (1) an Opinion
of Counsel to the effect

                                      -56-
<PAGE>

that entering into such supplemental indenture will not (i) cause the Issuer, or
any portion thereof, to be characterized as an association (or a publicly traded
partnership) taxable as a corporation, a corporation or a taxable mortgage pool
for federal income tax purposes or (ii) have any material adverse tax
consequence to the Noteholders or (2) confirmation from the Rating Agencies that
such Supplemental Indenture will not result in a Rating Event.

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

         Section 9.02. Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Request, may,
with prior written notice to each Rating Agency and with the consent of the
Enhancer (in the case of the Group I Notes) and the Holders of Notes
representing not less than a majority of the aggregate Note Balance of (i) the
Group I Notes if any Group I Notes are the only Notes affected thereby, (ii) the
Senior Group II Notes if any Senior Group II Notes are the only Notes affected
thereby, (iii) the Subordinate Group II Notes if any Subordinate Group II Notes
are the only Notes affected thereby and (iv) all Notes, if the Group I Notes,
the Senior Group II Notes and the Subordinate Group II Notes, are all affected
thereby, by Act of such Noteholders delivered to the Issuer and the Indenture
Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provision to, or changing in any manner or eliminating any
of the provisions of, this Indenture or of modifying in any manner the rights of
such Noteholders under this Indenture; provided, that no such supplemental
indenture may, without the consent of the Holder of each Note affected thereby:

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

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

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

         (d)   reduce the percentage of the aggregate Note Balance or the
Percentage Interest with respect to which the consent of the Holders of Notes
representing such Note Balance is required to direct the Indenture Trustee to
direct the Issuer to sell or liquidate the Trust Estate pursuant to Section
5.04;

                                      -57-
<PAGE>

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

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

         (g)   permit the creation of any Lien ranking prior to or on a parity
with the Lien of this Indenture with respect to any part of the Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the Lien of this
Indenture on any property at any time subject hereto or deprive the Holder of
any Note of the security provided by the Lien of this Indenture.

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

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

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

         No supplemental indentures may be entered into under this Section 9.02
unless the Indenture Trustee and the Enhancer shall have received an Opinion of
Counsel to the effect that such supplemental indenture will not (i) cause the
Issuer, or any portion thereof, to be characterized as an association (or a
publicly traded partnership) taxable as a corporation, a corporation or a
taxable mortgage pool for federal income tax purposes or (ii) have any material
adverse tax consequence to the Noteholders.

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

                                      -58-
<PAGE>

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

         Section 9.05. Conformity with Trust Indenture Act. Each amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the TIA as then in effect for so
long as this Indenture shall then be qualified under the TIA.

         Section 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and, if required by the Indenture Trustee, shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X
                                  MISCELLANEOUS

         Section 10.01. Compliance Certificates and Opinions, etc.

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

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

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

                                      -59-
<PAGE>

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

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

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

               (v)   if the signer of such certificate or opinion is required to
         be Independent, the statement required by the definition of the term
         "Independent".

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

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

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

         (e)   Whenever the Issuer is required to furnish to the Indenture
Trustee and the Enhancer an Officer's Certificate certifying or stating the
opinion of any signer thereof as to the matters described in paragraph
(d) above, the Issuer shall also furnish to the Indenture Trustee and the
Enhancer an Independent Certificate as to the same matters if the fair value of
the property or securities and of all other property, other than property as
contemplated by paragraph

                                      -60-
<PAGE>

(f) below or securities released from the Lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the certificates
required by paragraph (d) above and this paragraph equals 10% or more of the
aggregate Note Balance, but such certificate need not be furnished in the case
of any release of property or securities if the fair value thereof as set forth
in the related Officer's Certificate is less than $25,000 or less than one
percent of the aggregate Note Balance.

         (f)   Notwithstanding any provision of this Indenture, the Issuer may,
without compliance with the requirements of the other provisions of this
Section, (i) collect, sell or otherwise dispose of the Mortgage Loans as and to
the extent permitted or required by the Basic Documents or (ii) make cash
payments out of the Trustee Collection Account as and to the extent permitted or
required by the Basic Documents, so long as the Issuer shall deliver to the
Indenture Trustee and the Enhancer every six months, commencing December 31,
2002, an Officer's Certificate of the Issuer stating that all the dispositions
of Collateral described in clauses (i) or (ii) above that occurred during the
preceding six calendar months were in the ordinary course of the Issuer's
business and that the proceeds thereof were applied in accordance with the Basic
Documents.

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

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

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

         Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such

                                      -61-
<PAGE>

application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion contained
in any such document as provided in Article VI.

         Section 10.03. Acts of Noteholders.

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

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

         (c)   The Note Register shall prove ownership of Notes.

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

         Section 10.04. Notices. Notices required to be given hereunder shall be
given in the manner set forth in Section 8.03 of the Sale and Servicing
Agreement.

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

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

                                      -62-
<PAGE>

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

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

         Section 10.06. Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with any other provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

         Section 10.07. Effect of Headings. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

         Section 10.08. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes of the Issuer shall bind its successors and
assigns, whether or not so expressed. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         Section 10.09. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Indenture 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 Indenture, and shall in no way affect the validity
or enforceability of the other provisions of this Indenture or of the Notes or
the rights of the Noteholders.

         Section 10.10. Benefits of Indenture. Except to the extent otherwise
provided in this Indenture, (i) the rights and benefits of the Enhancer in this
Indenture (including Appendix A hereto) or in the Notes relate only to the Group
I Notes and the Mortgage Loans assigned to Group I and (ii) all provisions in
this Indenture (including Appendix A hereto) or in the Notes referring to the
consent or approval of the Enhancer or actions with respect to the Enhancer
shall apply and be implemented only to the extent that such consent, approval or
actions affect or concern the Group I Notes (or the Enhancer's obligations in
respect thereof) or the Mortgage Loans assigned to Group I. Notwithstanding any
provision in this Indenture to the contrary, all rights and benefits of the
Enhancer in this Indenture (including Appendix A hereto) or in the Notes
(including but not limited to consent rights, rights to notices and rights with
respect to opinions) shall terminate upon the later of (a) the repayment in full
of the Group I Notes and the payment to the Enhancer of any unpaid amounts owed
to it under the Insurance Agreement with interest thereon at the Late Payment
Rate as specified in the Insurance Agreement and (b) the termination of all of
the Enhancer's obligations under the Policy.

                                      -63-
<PAGE>

         Section 10.11. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         Section 10.12. Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT CONSIDERATION OF THE
CHOICE OF LAW PRINCIPLES THEREOF, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 10.13. Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         Section 10.14. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

         Section 10.15. Issuer Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their respective individual capacities) and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity. For
all purposes of this Indenture, in the performance of any duties or obligations
of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles V, VI and VII of the Trust
Agreement.

         Section 10.16. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by its acceptance of a Note, hereby
covenant and agree that they will not at any time institute against the
Depositor or the Issuer, or join in any institution against the Depositor or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation Proceedings, or other Proceedings under any federal or state
bankruptcy or similar law in

                                      -64-
<PAGE>

connection with any obligation relating to the Notes, this Indenture or any of
the other Basic Documents.

         Section 10.17. Rights to the Enhancer to Exercise Rights of Group I
Noteholders. By accepting its Group I Note, each Group I Noteholder agrees that
unless an Enhancer Default exists and is continuing, the Enhancer shall have the
right to exercise all rights of the Group I Noteholders as specified under the
Basic Document without any further consent of the Group I Noteholders. Any
rights conferred to the Enhancer hereunder shall be suspended and shall run to
the benefit of the Group I Noteholders during any period in which there exists
an Enhancer Default, provided, however, that during an Enhancer Default, the
consent of the Enhancer must be obtained with respect to any amendments that may
materially adversely affect the Enhancer.

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

                                      -65-
<PAGE>

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

                                  IRWIN WHOLE LOAN HOME EQUITY TRUST
                                  2002-A,
                                       as Issuer

                                  By:  WILMINGTON TRUST COMPANY,
                                             not in its individual capacity
                                             but solely as Owner Trustee

                                  By:  /s/ ANITA E. DALLAGO
                                       -----------------------------------------
                                       Name: Anita E. Dallago
                                       Title: Senior Financial Services Officer

                                  WELLS FARGO BANK MINNESOTA,
                                  NATIONAL ASSOCIATION,
                                     as Indenture Trustee

                                  By:  /s/ PETER A. GOBELL
                                       -----------------------------------------
                                       Name: Peter A. Gobell
                                       Title: Vice President

WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION hereby accepts the
appointment as Paying Agent pursuant to Section
3.03 hereof and as Note Registrar pursuant
to Section 4.02 hereof.

By:  /s/ PETER A. GOBELL
     -----------------------------------------
     Name: Peter A. Gobell
     Title: Vice President

                                      -66-
<PAGE>

STATE OF _________  )
                    )        SS.:
COUNTY OF ________  )

         On this __ day of June, 2002, before me personally appeared _______, to
me known, who being by me duly sworn, did depose and say, that he resides at
_______, that he is the ______of Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee, one of the parties described in and that
executed the above instrument; that he knows the seal of said party; that the
seal affixed to said instrument is the seal of such party; that it was so
affixed by order of said party; and that he signed his name thereto by like
order.

         Sworn to and subscribed before me this ____ day of June, 2002,
by _________________.

                                  ______________________________________________
                                  Notary Public

                                  Name: ________________________________________

[Notarial Seal]                   My Commission Expires: _______________________

                                      -67-
<PAGE>

                                                                     EXHIBIT A-1

                FORM OF CLASS [[I] [II] A-[ ]] [[M][B]-[--]] NOTE

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

         THE PRINCIPAL OF THIS CLASS [[I] [II] A-[ ]] [[M][B]-[--]] NOTE IS
PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING
PRINCIPAL AMOUNT OF THIS CLASS [[I] [II] A-[ ]] [[M][B]-[--]] NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

         THIS CLASS [[I] [II] A-[ ]] [[M][B]-[--]] NOTE DOES NOT REPRESENT AN
INTEREST IN OR OBLIGATION OF THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE
TRUSTEE, THE OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS
EXPRESSLY PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                   HOME EQUITY LOAN-BACKED NOTE, SERIES 2002-A

  Registered

  No.  [[I] [II] A-[ ]] [[M][B]-[--]]                Percentage Interest:  100%

  Note Balance:  $

Note Rate:  As set forth herein.                                       CUSIP NO.
First Payment Date:  July 25, 2002
Legal Final Payment Date:  _____________

                                     A-1-1

<PAGE>

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (the "Issuer"),
for value received, hereby promises to pay to Cede & Co. or its registered
assigns, the principal sum of ________ Million Dollars ($ ) payable on each
Payment Date in an amount equal to the Percentage Interest specified above of
the aggregate amount, if any, payable in respect of principal of the Class [[I]
[II] A-[ ]] [[M][B]-[--]] Notes pursuant to Section 3.05 of the Indenture dated
as of May 31, 2002 (the "Indenture"), between the Issuer and Wells Fargo Bank
Minnesota, National Association, as indenture trustee (the "Indenture Trustee");
provided, however, that the entire unpaid principal amount of this Class [[I]
[II] A-[ ]] [[M][B]-[--]] Note shall be due and payable on the ________ ___,
_____ Payment Date to the extent not previously paid on a prior Payment Date.
Capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in Appendix A to the Indenture.

         Interest on the Class [[I] [II] A-[ ]] [[M][B]-[--]] Notes will be paid
monthly on each Payment Date at the Note Rate for the related Interest Period.
Interest on this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note will accrue at the
Note Rate for the Class [ ] A-[ ] Notes [[M][B]--[--]]. Principal of and
interest on this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note shall be paid in the
manner specified on the reverse hereof. "Payment Date" means the 25th day of
each month or, if any such day is not a Business Day, the immediately succeeding
Business Day.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer, or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare the Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture.

         Principal of and interest on this Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note will be payable in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts.
All payments made by the Issuer with respect to this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note will generally be applied first to interest due and payable
on this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note as provided above and then to
the unpaid principal of this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note.

         Reference is made to the further provisions of this Class [[I] [II] A-[
]] [[M][B]-[--]] Note set forth on the reverse hereof, which shall have the same
effect as though fully set forth on the face of this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note.

         Unless the Indenture Trustee has executed the certificate of
authentication hereon by manual signature, this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note shall not be entitled to any benefit under the Indenture, or
be valid or obligatory for any purpose.

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-1-2
<PAGE>

              REVERSE OF CLASS [[I] [II] A-[ ]] [[M][B]-[--]] NOTE

         This Class [[I] [II] A-[ ]] [[M][B]-[--]] Note is one of a duly
authorized issue of Class [[I] [II] A-[ ]] [[M][B]-[--]] Notes of the Issuer,
designated as its Home Equity Loan-Backed Notes, Series 2002-A (the "Class [[I]
[II] A-[ ]] [[M][B]-[--]] Notes"), all issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Noteholders. The Class [[I] [II] A-[ ]] [[M][B]-[--]]
Notes are subject to all of the terms of the Indenture.

         The Class IIM-1 Notes are subordinate to the Senior Group II Notes, the
Class IIM-2 Notes are subordinate to the Senior Group II Notes and the Class
IIM-1 Notes and the Class IIB-1 Notes are subordinate to the Senior Group II
Notes, the Class IIM-1 Notes and the Class IIM-2 Notes, in each case to the
extent specified in the Indenture.

         This Class [[I] [II] A-[ ]] [[M][B]-[--]] Note may be transferred by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by the Holder hereof or such Holder's attorney duly authorized in
writing, with such signature guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar, which requirements include
membership or participation in the Securities Transfer Agent's Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Note Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended, and thereupon
one or more new Class [[I] [II] A-[ ]] [[M][B]-[--]] Notes in authorized
denominations and in the same aggregate principal amount will be issued to the
designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note, but the Note Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of this Class [[I] [II]
A-[ ]] [[M][B]-[--]] Note.

         Each Holder or Beneficial Owner of a Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note, by its acceptance of a Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note (or, in the case of a Beneficial Owner of a Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note, a beneficial interest in such Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note) covenants and agrees that no recourse may be taken, directly
or indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Master Servicer, the Depositor or the Indenture Trustee on the Class [[I]
[II] A-[ ]] [[M][B]-[--]] Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against (i) the Indenture
Trustee or the Owner Trustee in their respective individual capacities, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or
the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or any
successor or assign of the Indenture Trustee or the Owner Trustee in their
respective individual capacities, except as any such Person may have expressly
agreed, and provided that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity.

                                     A-1-3
<PAGE>

         Each Beneficial Owner or Class [[I] [II] A-[ ]] [[M][B]-[--]]
Noteholder, by its acceptance of a Class [[I] [II] A-[ ]] [[M][B]-[--]] Note
(or, in the case of a Beneficial Owner of a Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note, a beneficial interest in such Class [[I] [II] A-[ ]] [[M][B]-[--]] Note)
covenants and agrees by accepting the benefits of the Indenture that such Class
[[I] [II] A-[ ]] [[M][B]-[--]] Noteholder or Beneficial Owner will not at any
time institute against the Depositor, the Master Servicer or the Issuer, or join
in any institution against the Depositor, the Master Servicer or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under any federal or state bankruptcy or similar law in connection
with any obligation relating to the Class [[I] [II] A-[ ]] [[M][B]-[--]] Notes,
the Indenture or the other Basic Documents.

         Each Beneficial Owner or Class [[I] [II] A-[ ]] [[M][B]-[--]]
Noteholder, by its acceptance of a Class [[I] [II] A-[ ]] [[M][B]-[--]] Note (or
in the case of a Beneficial Owner of a Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note, a beneficial interest in such Class [[I] [II] A-[ ]] [[M][B]-[--]] Note)
represents either (i) that it is not, and is not purchasing the Class [[I] [II]
A-[ ]] [[M][B]-[--]] Note with assets of, an employee benefit plan subject to
Section 406 of ERISA or a plan subject to Section 4975 of the Code or a
governmental plan or church plan that is subject to applicable federal, state or
local law similar to the foregoing provisions of ERISA and/or the Code or (ii)
that a class or individual exemption under Section 406 of ERISA or Section 4975
of the Code is applicable to the acquisition and holding of the Class [[I] [II]
A-[ ]] [[M][B]-[--]] Note by such Beneficial Owner or Noteholder or the
acquisition and holding of the Class [[I] [II] A-[ ]] [[M][B]-[--]] Note by such
Beneficial Owner or Noteholder does not constitute or give rise to a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or other
applicable federal, state or local law, for which no statutory, regulatory or
administrative exemption is available.

         The Issuer has entered into the Indenture, and this Class [[I] [II] A-[
]] [[M][B]-[--]] Note is issued with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Class [[I] [II]
A-[ ]] [[M][B]-[--]] Notes will qualify as indebtedness of the Issuer. Each
Class [[I] [II] A-[ ]] [[M][B]-[--]] Noteholder, by its acceptance of a Class
[[I] [II] -[ ]] [[M][B]-[--]] Note (and each Beneficial Owner of a Class [[I]
[II] A-[ ]] [[M][B]-[--]] Note by its acceptance of a beneficial interest in
such Class [[I] [II] A-[ ]] [[M][B]-[--]] Note), agrees to treat the Class [[I]
[II] A-[ ]] [[M][B]-[--]] Notes for federal, state and local income, single
business and franchise tax purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Class
[[I] [II] A-[ ]] [[M][B]-[--]] Note, the Issuer, the Enhancer, the Indenture
Trustee and any agent thereof may treat the Person in the name of which this
Class [[I] [II] A-[ ]] [[M][B]-[--]] Note is registered (as of the date of
determination or as of such other date as may be specified in the Indenture) as
the owner hereof for all purposes, whether or not this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note shall be overdue; and none of the Issuer, the Enhancer, the
Indenture Trustee or any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Class [[I] [II] A-[ ]]
[[M][B]-[--]] Noteholders under the Indenture at any time by the Issuer and the
Indenture Trustee with prior written notice to each Rating Agency and

                                     A-1-4
<PAGE>

with the consent of the Enhancer and the Holders of Notes representing not less
than a majority of the aggregate Note Balance of the Notes affected thereby. The
Indenture also contains provisions permitting the Enhancer (so long as no
Enhancer Default exists) or the Holders of Notes representing a specified
percentage of the aggregate Note Balance with the consent of the Enhancer, on
behalf of all Noteholders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Class [[I]
[II] A-[ ]] [[M][B]-[--]] Note (or any one or more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this
Class [[I] [II] A-[ ]] [[M][B]-[--]] Note and of any Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made hereon. The Indenture also permits the Issuer and the Indenture
Trustee to amend or waive certain terms and conditions set forth in the
Indenture without the consent of the Noteholders, but with prior written notice
to each Rating Agency and the prior written consent of the Enhancer, unless an
Enhancer Default shall have occurred.

         The term "Issuer" as used in this Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note includes any successor to the Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Noteholders under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Class [[I] [II] A-[ ]] [[M][B]-[--]] Note and the Indenture shall
be construed in accordance with the laws of the State of New York, and the
obligations, rights and remedies of the parties hereunder and thereunder shall
be determined in accordance with such laws.

         No reference herein to the Indenture and no provision of this Class
[[I] [II] A-[ ]] [[M][B]-[--]] Note or of the Indenture shall alter or impair
the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note at
the times, place and rate and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The
Holder of this Class [[I] [II] A-[ ]] [[M][B]-[--]] Note, by its acceptance
hereof, agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, such Holder shall have no claim
against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement

                                     A-1-5
<PAGE>

against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class [[I] [II] A-[ ]]
[[M][B]-[--]] Note.

                                     A-1-6
<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Class [[I] [II] A-[ ]] [[M][B]-[--]]
Note to be duly executed.

                               IRWIN WHOLE LOAN HOME EQUITY TRUST
                               2002-A

                        By:    WILMINGTON TRUST COMPANY, not in its
                               individual capacity but solely as Owner Trustee

                               By: ____________________________________________
                                       Authorized Signatory

                        Dated: __, ___________.

                                     A-1-7
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Class [[I] [II] A-[ ]] [[M][B]-[--]] Notes referred
to in the within-mentioned Indenture.

                                        WELLS FARGO BANK MINNESOTA, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Indenture Trustee

                                        By: ____________________________________
                                                    Authorized Signatory

                                        Dated:  ___, ___________.

                                     A-1-8
<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

____________________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ___________________________________  _________________________________*/

                                             _________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-1-9
<PAGE>

                                                                     EXHIBIT A-2

                            FORM OF CLASS IIA-IO NOTE

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

         PRINCIPAL SHALL NOT BE PAYABLE IN RESPECT OF THIS NOTE. INTEREST IS
CALCULATED ON THIS NOTE BASED ON THE NOTIONAL AMOUNT SPECIFIED HEREIN.

         THIS CLASS IIA-IO NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION
OF THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE
INDENTURE OR THE OTHER BASIC DOCUMENTS.

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                   HOME EQUITY LOAN-BACKED NOTE, SERIES 2002-A

  Registered

  No. IIA-IO-1                                        Percentage Interest:  100%

  Initial Notional Balance: $[9,879,000]

Note Rate:  As set forth herein.                                       CUSIP NO.
First Payment Date:  July 25, 2002
Legal Final Payment Date:  December 25, 2004

                                     A-2-1
<PAGE>

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (the "Issuer"),
for value received, hereby promises to pay to Cede & Co. or its registered
assigns, an amount equal to the Percentage Interest specified above of the
aggregate amount, if any, payable in respect of the Class IIA-IO Notes pursuant
to Section 3.05 of the Indenture dated as of May 31, 2002 (the "Indenture"),
between the Issuer and Wells Fargo Bank Minnesota, National Association, as
indenture trustee (the "Indenture Trustee"); provided, however, that no amount
in respect of this Class IIA-IO Note shall be payable after the December 2004
Payment Date. Capitalized terms used herein that are not otherwise defined shall
have the meanings ascribed thereto in Appendix A to the Indenture.

         Interest on the Class IIA-IO Notes will be paid monthly on each Payment
Date at the Note Rate times the Class IIA-IO Notional Balance for the related
Interest Period. Interest on the Class IIA-IO Notional Balance of this Class
IIA-IO Note will accrue at the Note Rate for each Payment Date from the most
recent Payment Date on which interest has been paid (in the case of the first
Payment Date, from the Closing Date) to but excluding such Payment Date. The
"Note Rate" for each Interest Period will be 10.000% per annum. Interest will be
computed on the basis of an assumed year of 360 days consisting of twelve 30-day
months. Interest on this Class IIA-IO Note shall be paid in the manner specified
on the reverse hereof. "Payment Date" means the 25th day of each month or, if
any such day is not a Business Day, the immediately succeeding Business Day.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare all Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture.

         Interest on this Class IIA-IO Note will be payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

         Reference is made to the further provisions of this Class IIA-IO Note
set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Class IIA-IO Note.

         Unless the Indenture Trustee has executed the certificate of
authentication hereon by manual signature, this Class IIA-IO Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-2-2
<PAGE>

                          REVERSE OF CLASS IIA-IO NOTE

         This Class IIA-IO Note is one of a duly authorized issue of Class
IIA-IO Notes of the Issuer, designated as its Home Equity Loan-Backed Notes,
Series 2002-A (the "Class IIA-IO Notes"), all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Noteholders. The Class IIA-IO Notes are
subject to all of the terms of the Indenture.

         This Class IIA-IO Note may be transferred by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by the
Holder hereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and thereupon one or more new
Class IIA-IO Notes in authorized denominations and in the same aggregate
percentage interest will be issued to the designated transferee or transferees.
No service charge will be charged for any registration of transfer or exchange
of this Class IIA-IO Note, but the Note Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of this Class IIA-IO
Note.

         Each Holder or Beneficial Owner of a Class IIA-IO Note, by its
acceptance of a Class IIA-IO Note (or, in the case of a Beneficial Owner of a
Class IIA-IO Note, a beneficial interest in such Class IIA-IO Note) covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee, the Master Servicer, the
Depositor or the Indenture Trustee on the Class IIA-IO Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Indenture Trustee or the Owner Trustee in their respective
individual capacities, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee in their respective individual capacities, except as any such
Person may have expressly agreed, and provided that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity.

         Each Beneficial Owner or Class IIA-IO Noteholder, by its acceptance of
a Class IIA-IO Note (or, in the case of a Beneficial Owner of a Class IIA-IO
Note, a beneficial interest in such Class IIA-IO Note) covenants and agrees by
accepting the benefits of the Indenture that such Class IIA-IO Noteholder or
Beneficial Owner will not at any time institute against the Depositor, the
Master Servicer or the Issuer, or join in any institution against the Depositor,
the Master Servicer or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any federal or state
bankruptcy or similar law in connection with any obligation relating to the
Class IIA-IO Notes, the Indenture or the other Basic Documents.

                                     A-2-3
<PAGE>

         Each Beneficial Owner or Class IIA-IO Noteholder, by its acceptance of
a IIA-IO Note (or in the case of a Beneficial Owner of a IIA-IO Note, a
beneficial interest in such IIA-IO Note) represents either (i) that it is not,
and is not purchasing the IIA-IO Note with assets of, an employee benefit plan
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code or
a governmental plan or church plan that is subject to applicable federal, state
or local law similar to the foregoing provisions of ERISA and/or the Code or
(ii) that a class or individual exemption under Section 406 of ERISA or Section
4975 of the Code is applicable to the acquisition and holding of the IIA-IO Note
by such Beneficial Owner or Noteholder or the acquisition and holding of the
IIA-IO Note by such Beneficial Owner or Noteholder does not constitute or give
rise to a prohibited transaction under Section 406 of ERISA or Section 4975 of
the Code or other applicable federal, state or local law, for which no
statutory, regulatory or administrative exemption is available.

         The Issuer has entered into the Indenture, and this Class IIA-IO Note
is issued with the intention that, for federal, state and local income, single
business and franchise tax purposes, the Class IIA-IO Notes will qualify as
indebtedness of the Issuer. Each Class IIA-IO Noteholder, by its acceptance of a
Class IIA-IO Note (and each Beneficial Owner of a Class IIA-IO Note by its
acceptance of a beneficial interest in such Class IIA-IO Note), agrees to treat
the Class IIA-IO Notes for federal, state and local income, single business and
franchise tax purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Class
IIA-IO Note, the Issuer, the Enhancer, the Indenture Trustee and any agent
thereof may treat the Person in the name of which this Class IIA-IO Note is
registered (as of the date of determination or as of such other date as may be
specified in the Indenture) as the owner hereof for all purposes, whether or not
this Class IIA-IO Note shall be overdue; and none of the Issuer, the Enhancer,
the Indenture Trustee or any such agent shall be affected by notice to the
contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Class IIA-IO Noteholders
under the Indenture at any time by the Issuer and the Indenture Trustee with
prior written notice to each Rating Agency and with the consent of the Enhancer
and the Holders of Notes representing not less than a majority of the aggregate
Note Balance of the Notes affected thereby. The Indenture also contains
provisions permitting the Enhancer (so long as no Enhancer Default exists) or
the Holders of Notes representing a specified percentage of the aggregate Note
Balance with the consent of the Enhancer, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Class IIA-IO Note (or any one or more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Class IIA-IO Note and of any Class IIA-IO Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made hereon. The Indenture also
permits the Issuer and the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders,
but with prior written notice to each Rating Agency and the prior written
consent of the Enhancer, unless an Enhancer Default shall have occurred.

                                     A-2-4
<PAGE>

         The term "Issuer" as used in this Class IIA-IO Note includes any
successor to the Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Noteholders under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Class IIA-IO Note and the Indenture shall be construed in
accordance with the laws of the State of New York, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture and no provision of this Class
IIA-IO Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay interest on this Class
IIA-IO Note at the times, place and rate and in the coin or currency herein
prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of interest on this Class IIA-IO Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The Holder of this Class IIA-IO Note, by its
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, such Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture
or in this Class IIA-IO Note.

                                     A-2-5
<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Class IIA-IO Note to be duly
executed.

                             IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                             By: WILMINGTON TRUST COMPANY, not in its
                                 individual capacity but solely as Owner Trustee

                                 By:____________________________________________
                                                Authorized Signatory

                             Dated:  ____ __________.

                                     A-2-6
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                      WELLS FARGO BANK MINNESOTA, NATIONAL
                                      ASSOCIATION, not in its individual
                                      capacity but solely as Indenture Trustee

                                      By:_______________________________________
                                                  Authorized Signatory

                                      Dated:  ____ __________.

                                     A-2-7
<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

_______________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-2-8
<PAGE>

                                                                    EXHIBIT A-3a

                          FORM OF VARIABLE FUNDING NOTE

         THIS VARIABLE FUNDING NOTE 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 4.02 OF THE INDENTURE REFERRED TO HEREIN.

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

         THIS VARIABLE FUNDING NOTE DOES NOT REPRESENT AN INTEREST IN OR
         OBLIGATION OF THE SELLER, THE DEPOSITOR, THE MASTER SERVICER, THE
         INDENTURE TRUSTEE, THE OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE
         AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE INDENTURE OR THE OTHER
         BASIC DOCUMENTS.

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

          HOME EQUITY LOAN-BACKED VARIABLE FUNDING NOTE, SERIES 2002-A

         No. VFN-___

         Note Rate:  as set forth herein.

         Initial Variable Funding Balance: $0

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to [Irwin Union
Bank and Trust Company] or its registered assigns, the principal amount set
forth on Schedule A attached hereto (or otherwise owing hereunder as determined
pursuant to the Indenture), payable on each Payment Date in an amount equal to
the pro rata portion allocable hereto (based on the Variable Funding Balances of
all Variable Funding Notes immediately prior to such Payment Date) of the
aggregate amount, if any, payable in respect of principal of the Variable
Funding Notes pursuant to Section 3.05 of the indenture dated as of May 31, 2002
(the "Indenture"), between the Issuer and Wells Fargo Bank Minnesota, National
Association, as indenture trustee (the "Indenture Trustee"); provided, however,
that the entire unpaid principal amount of this Variable Funding Note shall be
due and payable on the [February 25, 2012] Payment Date to the extent not
previously paid on a prior

                                     A-3a-1
<PAGE>

Payment Date. Capitalized terms used herein that are not otherwise defined shall
have the meaning set forth in Appendix A to the Indenture.

         Interest on this Variable Funding Note will be paid monthly on each
Payment Date at the Note Rate for the related Interest Period subject to
limitations that may result in Interest Carry-Forward Amounts (as further
described in the Indenture). Interest on this Variable Funding Note will accrue
for each Payment Date from the most recent Payment Date on which interest has
been paid (in the case of the first Payment Date, from the Closing Date) to but
excluding such Payment Date. Interest will be computed on the basis of the
actual number of days in each Interest Period and 360-day year.

         Principal of and interest on this Variable Funding Note will be payable
on the related Payment Date as described in the Indenture. "Payment Date" means
the 25th day of each month or, if any such day is not a Business Day, the
immediately succeeding Business Day.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare all Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture. All
principal payments on the Variable Funding Notes shall be made pro rata to the
Holders of Variable Funding Notes entitled thereto.

         Payments of interest on this Variable Funding Note due and payable on
each Payment Date, together with the installment of principal, if any, to the
extent not in full payment of this Variable Funding Note, shall be made by check
mailed to the Person whose name appears as the Registered Holder of this
Variable Funding Note (or one or more Predecessor Notes) on the Note Register as
of the close of business on each Record Date. Any reduction in the principal
amount of this Variable Funding Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all
future Holders of this Variable Funding Note and of any Variable Funding Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not noted hereon. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Variable Funding Note on a Payment Date, then the
Indenture Trustee, in the name of and on behalf of the Issuer, will notify the
Person who was the Registered Holder hereof as of the Record Date preceding such
Payment Date by notice mailed or transmitted by facsimile prior to such Payment
Date and the amount then due and payable shall be payable only upon presentation
and surrender of this Variable Funding Note at the address specified in such
notice of final payment.

         Principal of and interest on this Variable Funding Note will be payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Variable Funding Note will generally be
applied first to interest due and payable on this Variable Funding Note and then
to the unpaid principal of this Variable Funding Note.

                                     A-3a-2
<PAGE>

         Reference is made to the further provisions of this Variable Funding
Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Variable Funding Note.

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

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-3a-3
<PAGE>

                       [REVERSE OF VARIABLE FUNDING NOTE]

         This Variable Funding Note is one of a duly authorized issue of
Variable Funding Notes of the Issuer, designated as its Home Equity Loan-Backed
Variable Funding Notes, Series 2002-A (the "Variable Funding Notes"), all issued
under the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Variable Funding Notes. The Variable Funding Notes are subject to all terms
of the Indenture.

         The Variable Funding Notes and the Offered Notes (collectively, the
"Notes") are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Variable Funding Note may be registered on
the Note Register upon surrender of this Variable Funding Note for registration
of transfer at the Corporate Trust Office of the Indenture Trustee, duly
endorsed by, and accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or
such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Securities Transfer Agent's Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Note Registrar in
addition to or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended, and thereupon one or more new Variable Funding
Notes in authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Variable
Funding Note, but the Note Registrar shall require payment of a sum sufficient
to cover any tax or governmental charge that may be imposed in connection with
any registration of transfer or exchange of this Variable Funding Note.

         Each Holder of a Variable Funding Note, by its acceptance of a Variable
Funding Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Seller, the Master Servicer, the Depositor or the Indenture Trustee on the
Variable Funding Notes or under the Indenture or any certificate or other
writing delivered in connection therewith, against (i) the Indenture Trustee or
the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly agreed and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity.

         Each Holder of a Variable Funding Note, by its acceptance of a Variable
Funding Note, covenants and agrees by accepting the benefits of the Indenture
that such Holder will not at any time institute against the Depositor, the
Seller, the Master Servicer or the Issuer, or join in any

                                     A-3a-4
<PAGE>

institution against the Depositor, the Seller, the Master Servicer or the Issuer
of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under any federal or state bankruptcy or similar law in connection
with any obligations relating to the Variable Funding Notes, the Indenture or
the other Basic Documents.

         Each Beneficial Owner or Variable Funding Noteholder, by its acceptance
of a Variable Funding Note (or in the case of a Beneficial Owner of a Variable
Funding Note, a beneficial interest in such Variable Funding Note) represents
either (i) that it is not, and is not purchasing the Variable Funding Note with
assets of, an employee benefit plan subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code or a governmental plan or church plan that
is subject to applicable federal, state or local law similar to the foregoing
provisions of ERISA and/or the Code or (ii) that a class or individual exemption
under Section 406 of ERISA or Section 4975 of the Code is applicable to the
acquisition and holding of the Variable Funding Note by such Beneficial Owner or
Noteholder or the acquisition and holding of the Variable Funding Note by such
Beneficial Owner or Noteholder does not constitute or give rise to a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or other
applicable federal, state or local law, for which no statutory, regulatory or
administrative exemption is available.

         The Issuer has entered into the Indenture and this Variable Funding
Note is issued with the intention that, for federal, state and local income,
single business and franchise tax purposes, the Variable Funding Notes will
qualify as indebtedness of the Issuer. Each Holder of a Variable Funding Note,
by its acceptance of a Variable Funding Note, agrees to treat the Variable
Funding Notes for federal, state and local income, single business and franchise
tax purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this
Variable Funding Note, the Issuer, the Enhancer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in the name of
which this Variable Funding Note (as of the day of determination or as of such
other date as may be specified in the Indenture) is registered as the owner
hereof for all purposes, whether or not this Variable Funding Note be overdue,
and none of the Issuer, the Enhancer, the Indenture Trustee or any such agent
shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Holders of the Variable
Funding Notes under the Indenture at any time by the Issuer and the Indenture
Trustee with the consent of the Enhancer and the Holders of Notes representing
not less than a majority of the aggregate Note Balance of the Notes affected
thereby, and with prior written notice to each Rating Agency. The Indenture also
contains provisions permitting the Enhancer (so long as no Enhancer Default
exists) or the Holders of Notes representing specified aggregate Note Balances
with the consent of the Enhancer, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Variable Funding Note (or any one of more
Predecessor Notes) shall be conclusive and binding upon such Holder and upon all
future Holders of this Variable Funding Note and of any Variable Funding Note
issued upon the registration of transfer hereof or in

                                     A-3a-5
<PAGE>

exchange hereof or in lieu hereof whether or not notation of such consent or
waiver is made upon this Variable Funding Note. The Indenture also permits the
Indenture Trustee to amend or waive certain terms and conditions set forth in
the Indenture without the consent of the Noteholders but with prior written
notice to each Rating Agency and the prior written consent of the Enhancer,
unless an Enhancer Default shall have occurred.

         The term "Issuer" as used in this Variable Funding Note includes any
successor to the Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Holders of Variable Funding Notes under the Indenture.

         The Variable Funding Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

         This Variable Funding Note and the Indenture shall be construed in
accordance with the laws of the State of New York, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture and no provision of this Variable
Funding Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Variable Funding Note at the times, place and rate, and in the
coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on this Variable Funding Note or
performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. The Holder of this Variable Funding
Note by its acceptance hereof agrees that, except as expressly provided in the
Basic Documents, in the case of an Event of Default under the Indenture, such
Holder shall have no claim against any of the foregoing for any deficiency, loss
or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Variable Funding Note.

                                     A-3a-6
<PAGE>

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

                                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                                    By:  WILMINGTON TRUST COMPANY, not in  its
                                         individual capacity but solely as Owner
                                         Trustee

                                         By:____________________________________
                                            Authorized Signatory

                                    Dated:

                                     A-3a-7

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Variable Funding Notes referred to in the within-
mentioned Indenture.

                                        WELLS FARGO BANK MINNESOTA, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Indenture Trustee

                                        By: ____________________________________
                                            Authorized Signatory

                                        Dated:

                                     A-3a-8

<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

______________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
         (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*   NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-3a-9
<PAGE>

                                                                      SCHEDULE A
<TABLE>
<CAPTION>

                 HOME EQUITY LOAN-BACKED VARIABLE FUNDING NOTES

=====================================================================================================
                                                                                      AUTHORIZED
                                                              VARIABLE FUNDING       SIGNATURE OF
                                                                 BALANCE               INDENTURE
    DATE     PERCENTAGE INTEREST      PRINCIPAL PAYMENT         OUTSTANDING             TRUSTEE
<S>          <C>                      <C>                    <C>                     <C>
-----------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                  Schedule A-1
<PAGE>

                                                                    EXHIBIT A-3b

                      FORM OF CAPPED VARIABLE FUNDING NOTE

         THIS CAPPED VARIABLE FUNDING NOTE 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 4.02 OF THE INDENTURE
         REFERRED TO HEREIN.

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

         THIS CAPPED VARIABLE FUNDING NOTE DOES NOT REPRESENT AN INTEREST IN OR
         OBLIGATION OF THE SELLER, THE DEPOSITOR, THE MASTER SERVICER, THE
         INDENTURE TRUSTEE, THE OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE
         AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE INDENTURE OR THE OTHER
         BASIC DOCUMENTS.

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

HOME EQUITY LOAN-BACKED CAPPED VARIABLE FUNDING NOTE, SERIES 2002-A

     No. VFN Capped -___

     Note Rate:  as set forth herein.

     Initial Principal Balance: ___

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (herein referred
to as the "Issuer"), for value received, hereby promises to pay to Irwin Union
Bank and Trust Company or its registered assigns, the principal amount set forth
on Schedule A attached hereto (or otherwise owing hereunder as determined
pursuant to the Indenture), payable on each Payment Date in an amount equal to
the pro rata portion allocable hereto (based on the Variable Funding Balances of
all Variable Funding Notes immediately prior to such Payment Date) of the
aggregate amount, if any, payable in respect of principal of the Variable
Funding Notes pursuant to Section 3.05 of the indenture dated as of May 31, 2002
(the "Indenture"), between the Issuer and Wells Fargo Bank Minnesota, National
Association, as indenture trustee (the "Indenture Trustee"); provided, however,
that the entire unpaid principal amount of this Capped Variable Funding Note
shall be due and payable on the [February 25, 2012] Payment Date to the extent
not previously paid on a

                                     A-3b-1
<PAGE>

prior Payment Date. Capitalized terms used herein that are not otherwise defined
shall have the meaning set forth in Appendix A to the Indenture.

         Interest on this Capped Variable Funding Note will be paid monthly on
each Payment Date at the Note Rate for the related Interest Period subject to
limitations that may result in Interest Carry-Forward Amounts (as further
described in the Indenture). Interest on this Capped Variable Funding Note will
accrue for each Payment Date from the most recent Payment Date on which interest
has been paid (in the case of the first Payment Date, from the Closing Date) to
but excluding such Payment Date. Interest will be computed on the basis of the
actual number of days in each Interest Period and 360-day year.

         Principal of and interest on this Capped Variable Funding Note will be
payable on the related Payment Date as described in the Indenture. "Payment
Date" means the 25th day of each month or, if any such day is not a Business
Day, the immediately succeeding Business Day.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare all Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture. All
principal payments on the Variable Funding Notes shall be made pro rata to the
Holders of Variable Funding Notes entitled thereto.

         Payments of interest on this Capped Variable Funding Note due and
payable on each Payment Date, together with the installment of principal, if
any, to the extent not in full payment of this Capped Variable Funding Note,
shall be made by check mailed to the Person whose name appears as the Registered
Holder of this Capped Variable Funding Note (or one or more Predecessor Notes)
on the Note Register as of the close of business on each Record Date. Any
reduction in the principal amount of this Capped Variable Funding Note (or any
one or more Predecessor Notes) effected by any payments made on any Payment Date
shall be binding upon all future Holders of this Capped Variable Funding Note
and of any Variable Funding Note issued upon the registration of transfer hereof
or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds
are expected to be available, as provided in the Indenture, for payment in full
of the then remaining unpaid principal amount of this Capped Variable Funding
Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Registered Holder hereof as of
the Record Date preceding such Payment Date by notice mailed or transmitted by
facsimile prior to such Payment Date and the amount then due and payable shall
be payable only upon presentation and surrender of this Capped Variable Funding
Note at the address specified in such notice of final payment.

         Principal of and interest on this Capped Variable Funding Note will be
payable in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Capped Variable Funding Note will
generally be applied first to interest due and payable on this Capped Variable
Funding Note and then to the unpaid principal of this Capped Variable Funding
Note.

                                     A-3b-2
<PAGE>

         Reference is made to the further provisions of this Capped Variable
Funding Note set forth on the reverse hereof, which shall have the same effect
as though fully set forth on the face of this Capped Variable Funding Note.

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

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-3b-3
<PAGE>

                     REVERSE OF CAPPED VARIABLE FUNDING NOTE

         This Capped Variable Funding Note is one of a duly authorized issue of
Variable Funding Notes of the Issuer, designated as its Home Equity Loan-Backed
Variable Funding Notes, Series 2002-A (the "Variable Funding Notes"), all issued
under the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Holders of
the Variable Funding Notes. The Variable Funding Notes are subject to all terms
of the Indenture.

         The Variable Funding Notes and the Offered Notes (collectively, the
"Notes") are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Capped Variable Funding Note may be
registered on the Note Register upon surrender of this Capped Variable Funding
Note for registration of transfer at the Corporate Trust Office of the Indenture
Trustee, duly endorsed by, and accompanied by a written instrument of transfer
in form satisfactory to the Indenture Trustee duly executed by, the Holder
hereof or such Holder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, which requirements include membership or participation in
the Securities Transfer Agent's Medallion Program ("STAMP") or such other
"signature guarantee program" as may be determined by the Note Registrar in
addition to or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended, and thereupon one or more new Variable Funding
Notes in authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Capped
Variable Funding Note, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of this Capped Variable
Funding Note.

         Each Holder of a Variable Funding Note, by its acceptance of a Variable
Funding Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Seller, the Master Servicer, the Depositor or the Indenture Trustee on the
Variable Funding Notes or under the Indenture or any certificate or other
writing delivered in connection therewith, against (i) the Indenture Trustee or
the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly agreed and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity.

         Each Holder of a Variable Funding Note, by its acceptance of a Variable
Funding Note, covenants and agrees by accepting the benefits of the Indenture
that such Holder will not at any

                                     A-3b-4
<PAGE>

time institute against the Depositor, the Seller, the Master Servicer or the
Issuer, or join in any institution against the Depositor, the Seller, the Master
Servicer or the Issuer of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under any federal or state bankruptcy or
similar law in connection with any obligations relating to the Capped Variable
Funding Notes, the Indenture or the other Basic Documents.

         Each Beneficial Owner or Variable Funding Noteholder, by its acceptance
of a Variable Funding Note (or in the case of a Beneficial Owner of a Variable
Funding Note, a beneficial interest in such Variable Funding Note) represents
either (i) that it is not, and is not purchasing the Variable Funding Note with
assets of, an employee benefit plan subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code or a governmental plan or church plan that
is subject to applicable federal, state or local law similar to the foregoing
provisions of ERISA and/or the Code or (ii) that a class or individual exemption
under Section 406 of ERISA or Section 4975 of the Code is applicable to the
acquisition and holding of the Variable Funding Note by such Beneficial Owner or
Noteholder or the acquisition and holding of the Variable Funding Note by such
Beneficial Owner or Noteholder does not constitute or give rise to a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or other
applicable federal, state or local law, for which no statutory, regulatory or
administrative exemption is available.

         The Issuer has entered into the Indenture and this Capped Variable
Funding Note is issued with the intention that, for federal, state and local
income, single business and franchise tax purposes, the Variable Funding Notes
will qualify as indebtedness of the Issuer. Each Holder of a Variable Funding
Note, by its acceptance of a Variable Funding Note, agrees to treat the Variable
Funding Notes for federal, state and local income, single business and franchise
tax purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this
Capped Variable Funding Note, the Issuer, the Enhancer, the Indenture Trustee
and any agent of the Issuer or the Indenture Trustee may treat the Person in the
name of which this Capped Variable Funding Note (as of the day of determination
or as of such other date as may be specified in the Indenture) is registered as
the owner hereof for all purposes, whether or not this Capped Variable Funding
Note be overdue, and none of the Issuer, the Enhancer, the Indenture Trustee or
any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Holders of the Variable
Funding Notes under the Indenture at any time by the Issuer and the Indenture
Trustee with the consent of the Enhancer and the Holders of Notes representing
not less than a majority of the aggregate Note Balance of the Notes affected
thereby, and with prior written notice to each Rating Agency. The Indenture also
contains provisions permitting the Enhancer (so long as no Enhancer Default
exists) or the Holders of Notes representing specified aggregate Note Balances
with the consent of the Enhancer, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Capped Variable Funding Note (or any one of more
Predecessor Notes) shall be conclusive and binding upon such Holder and upon all
future Holders of this Capped Variable

                                     A-3b-5
<PAGE>

Funding Note and of any Variable Funding Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Capped Variable Funding Note. The
Indenture also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders but
with prior written notice to each Rating Agency and the prior written consent of
the Enhancer, unless an Enhancer Default shall have occurred.

         The term "Issuer" as used in this Capped Variable Funding Note includes
any successor to the Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Holders of Variable Funding Notes under the Indenture.

         The Variable Funding Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

         This Capped Variable Funding Note and the Indenture shall be construed
in accordance with the laws of the State of New York, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws. No reference herein to the Indenture and no
provision of this Capped Variable Funding Note or of the Indenture shall alter
or impair the obligation of the Issuer, which is absolute and unconditional, to
pay the principal of and interest on this Capped Variable Funding Note at the
times, place and rate, and in the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on this Capped Variable Funding
Note or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in the Indenture. The Holder of this
Capped Variable Funding Note by its acceptance hereof agrees that, except as
expressly provided in the Basic Documents, in the case of an Event of Default
under the Indenture, such Holder shall have no claim against any of the
foregoing for any deficiency, loss or claim therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Capped Variable Funding Note.

                                     A-3b-6
<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Capped Variable Funding Note to be
duly executed.

                           IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                           By:  WILMINGTON TRUST COMPANY, not in its
                                individual capacity but solely as Owner Trustee

                                By:_____________________________________________
                                              Authorized Signatory

                           Dated:

                                     A-3b-7
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Capped Variable Funding Notes referred to in the
within-mentioned Indenture.

                                        WELLS FARGO BANK MINNESOTA, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Indenture Trustee

                                        By: ____________________________________
                                                      Authorized Signatory

                                        Dated:

                                     A-3b-8

<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

_______________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-3b-9
<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

_______________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                    A-3b-10
<PAGE>

                                                                     EXHIBIT A-4

                         FORM OF CLASS [X-[ ]-[--]] NOTE

         THIS CLASS [X-[ ]-[--]] NOTE 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 4.02 OF THE INDENTURE
REFERRED TO HEREIN.

         THIS CLASS [X-[ ]-[--]] NOTE DOES NOT REPRESENT AN INTEREST IN OR
OBLIGATION OF THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE
OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY
PROVIDED IN THE INDENTURE OR THE OTHER BASIC DOCUMENTS.

         THIS NOTE IS NOT TRANSFERABLE EXCEPT UPON SATISFACTION OF THE
CONDITIONS SET FORTH IN SECTION 4.02 OF THE INDENTURE. NEITHER THIS NOTE NOR ANY
INTEREST THEREIN MAY BE TRANSFERRED SEPARATELY FROM THE CLASS X[-1][2-A] AND
CLASS X2-[A][B] NOTES AND ALL OF THE INTERESTS THEREIN.

         THE TRANSFEREE OF THIS NOTE WILL BE SUBJECT TO FEDERAL WITHHOLDING TAX
UNLESS THE NOTE REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN
STATUS CERTIFYING AS TO THE TRANSFEREE'S STATUS AS A UNITED STATES PERSON UNDER
UNITED STATES TAX LAW.

         THIS NOTE IS NOT TRANSFERABLE TO AN EMPLOYEE BENEFIT PLAN (AS DEFINED
IN SECTION 3(3) OF ERISA) OR A PLAN (AS DEFINED IN SECTION 4975 OF THE CODE).

THE CLASS [X-[ ]-[--]] NOTE IS NOT ENTITLED TO DISTRIBUTIONS OF [[INTEREST]
[PRINCIPAL]].

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

             HOME EQUITY LOAN-BACKED SUBORDINATE NOTE, SERIES 2002-A

Registered

No.  [X-[ ]-[--]]                                     Percentage Interest:  100%

Note Balance:  $

                                     A-4-1
<PAGE>

Note Rate:  As set forth herein.                                       CUSIP NO.
First Payment Date:  July 25, 2002
Legal Final Payment Date:  _____________

                                     A-4-2
<PAGE>

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (the "Issuer"),
for value received, hereby promises to pay to ____________ or its registered
assigns, [the amount, if any, payable to the Class [X-[ ]-[--]] Note on each
Payment Date determined in accordance with Section 3.26] [the principal sum of
________ Million Dollars ($ ) payable on each Payment Date in an amount equal to
the Percentage Interest specified above of the aggregate amount, if any, payable
in respect of principal of the Class [X-[ ]-[--]] Notes pursuant to Section
3.05] of the Indenture dated as of May 31, 2002 (the "Indenture"), between the
Issuer and Wells Fargo Bank Minnesota, National Association, as indenture
trustee (the "Indenture Trustee"); provided, however, that the entire unpaid
principal amount of this Class [X-[ ]-[--]] Note shall be due and payable on the
________ ___, _____ Payment Date to the extent not previously paid on a prior
Payment Date. Capitalized terms used herein that are not otherwise defined shall
have the meanings ascribed thereto in Appendix A to the Indenture.

         [Principal of] [Payments on] this Class [X-[ ]-[--]] Note shall be paid
in the manner specified on the reverse hereof. "Payment Date" means the 25th day
of each month or, if any such day is not a Business Day, the immediately
succeeding Business Day.

         If an Event of Default shall have occurred and be continuing with
respect to the Group I Notes, then the Indenture Trustee, acting at the
direction of the Enhancer, or the Holders of Group I Notes representing not less
than a majority of the aggregate Note Balance of the Group I Notes (with the
written consent of the Enhancer, may declare the Group I Notes to be immediately
due and payable in the manner provided in Section 5.02 of the Indenture.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare all Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture.

          [Principal of] [Payments on] this Class [X-[ ]-[--]] Note will be
payable in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts.

         Reference is made to the further provisions of this Class [X-[ ]-[--]]
Note set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Class [X-[ ]-[--]] Note.

         Unless the Indenture Trustee has executed the certificate of
authentication hereon by manual signature, this Class [X-[ ]-[--]] Note shall
not be entitled to any benefit under the Indenture, or be valid or obligatory
for any purpose.

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-4-3
<PAGE>

                       REVERSE OF CLASS [X-[ ]-[--]] NOTE

         This Class [X-[ ]-[--]] Note is one of a duly authorized issue of Class
[X-[ ]-[--]] Notes of the Issuer, designated as its Home Equity Loan-Backed
Notes, Series 2002-A (the "Class [X-[ ]-[--]] Notes"), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Class
[X-[ ]-[--]] Notes are subject to all of the terms of the Indenture.

         The Class IIM-1 Notes are subordinate to the Senior Group II Notes, the
Class IIM-2 Notes are subordinate to the Senior Group II Notes and the Class
IIM-1 Notes and the Class IIB-1 Notes are subordinate to the Senior Group II
Notes, the Class IIM-1 Notes and the Class IIM-2 Notes, in each case to the
extent specified in the Indenture.

         This Class [X-[ ]-[--]] Note may be transferred by a written instrument
of transfer in form satisfactory to the Indenture Trustee duly executed by the
Holder hereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and thereupon one or more new
Class [X-[ ]-[--]] Notes in authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Class [X-[ ]-[--]] Note, but the Note Registrar may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of this Class [X-[
]-[--]] Note.

         Each Holder or Beneficial Owner of a Class [X-[ ]-[--]] Note, by its
acceptance of a Class [X-[ ]-[--]] Note (or, in the case of a Beneficial Owner
of a Class [X-[ ]-[--]] Note, a beneficial interest in such Class [X-[ ]-[--]]
Note) covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee,
the Master Servicer, the Depositor or the Indenture Trustee on the Class [X-[
]-[--]] Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee or the
Owner Trustee in their respective individual capacities, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Owner Trustee or the Indenture Trustee or any successor or assign of
the Indenture Trustee or the Owner Trustee in their respective individual
capacities, except as any such Person may have expressly agreed, and provided
that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such
entity.

         Each Beneficial Owner or Class [X-[ ]-[--]] Noteholder, by its
acceptance of a Class [X-[ ]-[--]] Note (or, in the case of a Beneficial Owner
of a Class [X-[ ]-[--]] Note, a beneficial interest in such Class [X-[ ]-[--]]
Note) covenants and agrees by accepting the benefits of the

                                     A-4-4
<PAGE>

Indenture that such Class [X-[ ]-[--]] Noteholder or Beneficial Owner will not
at any time institute against the Depositor, the Master Servicer or the Issuer,
or join in any institution against the Depositor, the Master Servicer or the
Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under any federal or state bankruptcy or similar law in
connection with any obligation relating to the Class [X-[ ]-[--]] Notes, the
Indenture or the other Basic Documents.

         The Issuer has entered into the Indenture, and this Class [X-[ ] - [ ]
Note is issued, with the intention that, for federal, state and local, income,
single business and franchise tax purposes, the Class [X- [ ] - [ ]] Notes will
qualify as equity of the Issuer. Each Class [X - [ ] - [ ]] Noteholder, by its
acceptance of a Class [X - [ ] - [ ]] Note (and each Beneficial Owner of a Class
[X - [ ] - [ ]] Note by its acceptance of a beneficial interest in such Class [X
- [ ] - [ ]] Note), agrees to (i) treat the Class [X - [ ] - [ ] Notes for
federal, state and local income, single business and franchise tax purposes as
equity of the Issuer and (ii) the allocations of tax items determined in
accordance with the provisions of Section 4.09(c) of the Indenture and Section
3.12 of the Trust Agreement.

         Prior to the due presentment for registration of transfer of this Class
[X-[ ]-[--]] Note, the Issuer, the Enhancer, the Indenture Trustee and any agent
thereof may treat the Person in the name of which this Class [X-[ ]-[--]] Note
is registered (as of the date of determination or as of such other date as may
be specified in the Indenture) as the owner hereof for all purposes, whether or
not this Class [X-[ ]-[--]] Note shall be overdue; and none of the Issuer, the
Enhancer, the Indenture Trustee or any such agent shall be affected by notice to
the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Class [X-[ ]-[--]]
Noteholders under the Indenture at any time by the Issuer and the Indenture
Trustee with prior written notice to each Rating Agency and with the consent of
the Enhancer and the Holders of Notes representing not less than a majority of
the aggregate Note Balance of the Notes affected thereby. The Indenture also
contains provisions permitting the Enhancer (so long as no Enhancer Default
exists) or the Holders of Notes representing a specified percentage of the
aggregate Note Balance with the consent of the Enhancer, on behalf of all
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Class [X-[ ]-[--]] Note (or any
one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Class [X-[ ]-[--]] Note and of any Class
[X-[ ]-[--]] Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is
made hereon. The Indenture also permits the Issuer and the Indenture Trustee to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of the Noteholders, but with prior written notice to each Rating
Agency and the prior written consent of the Enhancer, unless an Enhancer Default
shall have occurred.

         The term "Issuer" as used in this Class [X-[ ]-[--]] Note includes any
successor to the Issuer under the Indenture.

                                     A-4-5
<PAGE>

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Noteholders under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Class [X-[ ]-[--]] Note and the Indenture shall be construed in
accordance with the laws of the State of New York, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture and no provision of this Class
[X-[ ]-[--]] Note or of the Indenture shall alter or impair the obligation of
the Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Class [X-[ ]-[--]] Note at the times, place and rate and in the
coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of principal of or interest on this Class [X-[ ]-[--]] Note or
performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. The Holder of this Class [X-[
]-[--]] Note, by its acceptance hereof, agrees that, except as expressly
provided in the Basic Documents, in the case of an Event of Default under the
Indenture, such Holder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Class [X-[ ]-[--]] Note.

                                     A-4-6
<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Class [X-[ ]-[--]] Note to be duly
executed.

                                IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                        By:     WILMINGTON TRUST COMPANY, not in its
                                individual capacity but solely as Owner Trustee

                                 By: __________________________________________
                                     Authorized Signatory

                        Dated:  ___, ___________.

                                     A-4-7

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                       WELLS FARGO BANK MINNESOTA, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity but solely as Indenture Trustee

                                       By: _____________________________________
                                           Authorized Signatory

                                       Dated:  ___, ___________.

                                     A-4-8
<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

_____________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-4-9
<PAGE>

                                                                     EXHIBIT A-5

                            FORM OF CLASS IIX-IO NOTE

         THIS CLASS IIX-IO NOTE 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 4.02 OF THE INDENTURE REFERRED TO
HEREIN.

         PRINCIPAL SHALL NOT BE PAYABLE IN RESPECT OF THIS NOTE. INTEREST IS
CALCULATED ON THIS NOTE BASED ON THE NOTIONAL AMOUNT SPECIFIED HEREIN.

         THIS CLASS IIX-IO NOTE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION
OF THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE
OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE
INDENTURE OR THE OTHER BASIC DOCUMENTS.

         THIS NOTE IS NOT TRANSFERABLE TO AN EMPLOYEE BENEFIT PLAN (AS DEFINED
IN SECTION 3(3) OF ERISA) OR A PLAN (AS DEFINED IN SECTION 4975 OF THE CODE).

                    IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                   HOME EQUITY LOAN-BACKED NOTE, SERIES 2002-A

  Registered

  No. IIX-IO-1                                         Percentage Interest: 100%

  Initial Notional Balance: $[__,___,000]

Note Rate:  As set forth herein.                                       CUSIP NO.
First Payment Date:  July 25, 2002
Legal Final Payment Date:  October 25, 2004

                                     A-5-1
<PAGE>

         Irwin Whole Loan Home Equity Trust 2002-A, a business trust duly
organized and existing under the laws of the State of Delaware (the "Issuer"),
for value received, hereby promises to pay to ________ or its registered
assigns, an amount equal to the Percentage Interest specified above of the
aggregate amount, if any, payable in respect of the Class IIX-IO Notes pursuant
to Section 3.05 of the Indenture dated as of May 31, 2002 (the "Indenture"),
between the Issuer and Wells Fargo Bank Minnesota, National Association, as
indenture trustee (the "Indenture Trustee"). Capitalized terms used herein that
are not otherwise defined shall have the meanings ascribed thereto in Appendix A
to the Indenture.

         Interest on the Class IIX-IO Notes will be paid monthly on each Payment
Date at the Note Rate times the Class IIX-IO Notional Balance for the related
Interest Period. Interest on this Class IIX-IO Note shall be paid in the manner
specified on the reverse hereof. "Payment Date" means the 25th day of each month
or, if any such day is not a Business Day, the immediately succeeding Business
Day.

         If an Event of Default shall have occurred and be continuing, then the
Indenture Trustee, acting at the direction of the Enhancer or the Holders of
Notes representing not less than a majority of the aggregate Note Balance of the
Group I Notes, the Senior Group II Notes or the Subordinate Group II Notes, with
the written consent of the Enhancer, may declare all Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture.

         Interest on this Class IIX-IO Note will be payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

         Reference is made to the further provisions of this Class IIX-IO Note
set forth on the reverse hereof, which shall have the same effect as though
fully set forth on the face of this Class IIX-IO Note.

         Unless the Indenture Trustee has executed the certificate of
authentication hereon by manual signature, this Class IIX-IO Note shall not be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

         To the extent that any provision of this Note contradicts or is
inconsistent with the provisions of the Indenture, the provisions of the
Indenture shall control and supercede such contradictory or inconsistent
provision herein. The Notes are subject to all terms of the Indenture.

                                     A-5-2
<PAGE>

                          REVERSE OF CLASS IIX-IO NOTE

         This Class IIX-IO Note is one of a duly authorized issue of Class
IIX-IO Notes of the Issuer, designated as its Home Equity Loan-Backed Notes,
Series 2002-A (the "Class IIX-IO Notes"), all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Noteholders. The Class IIX-IO Notes are
subject to all of the terms of the Indenture.

         This Class IIX-IO Note may be transferred by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by the
Holder hereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in the Securities Transfer Agent's Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Securities Exchange Act of 1934, as amended, and thereupon one or more new
Class IIX-IO Notes in authorized denominations and in the same aggregate
percentage interest will be issued to the designated transferee or transferees.
No service charge will be charged for any registration of transfer or exchange
of this Class IIX-IO Note, but the Note Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of this Class IIX-IO
Note.

         Each Holder or Beneficial Owner of a Class IIX-IO Note, by its
acceptance of a Class IIX-IO Note (or, in the case of a Beneficial Owner of a
Class IIX-IO Note, a beneficial interest in such Class IIX-IO Note) covenants
and agrees that no recourse may be taken, directly or indirectly, with respect
to the obligations of the Issuer, the Owner Trustee, the Master Servicer, the
Depositor or the Indenture Trustee on the Class IIX-IO Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Indenture Trustee or the Owner Trustee in their respective
individual capacities, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or any successor or assign of the Indenture Trustee or the
Owner Trustee in their respective individual capacities, except as any such
Person may have expressly agreed, and provided that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity.

         Each Beneficial Owner or Class IIX-IO Noteholder, by its acceptance of
a Class IIX-IO Note (or, in the case of a Beneficial Owner of a Class IIX-IO
Note, a beneficial interest in such Class IIX-IO Note) covenants and agrees by
accepting the benefits of the Indenture that such Class IIX-IO Noteholder or
Beneficial Owner will not at any time institute against the Depositor, the
Master Servicer or the Issuer, or join in any institution against the Depositor,
the Master Servicer or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any federal or state
bankruptcy or similar law in connection with any obligation relating to the
Class IIX-IO Notes, the Indenture or the other Basic Documents.

                                     A-5-3
<PAGE>

         The Issuer has entered into the Indenture, and this Class IIX-IO Note
is issued with the intention that, for federal, state and local income, single
business and franchise tax purposes, the Class IIX-IO Notes will qualify as
indebtedness of the Issuer. Each Class IIX-IO Noteholder, by its acceptance of a
Class IIX-IO Note (and each Beneficial Owner of a Class IIX-IO Note by its
acceptance of a beneficial interest in such Class IIX-IO Note), agrees to treat
the Class IIX-IO Notes for federal, state and local income, single business and
franchise tax purposes as indebtedness of the Issuer.

         Prior to the due presentment for registration of transfer of this Class
IIX-IO Note, the Issuer, the Enhancer, the Indenture Trustee and any agent
thereof may treat the Person in the name of which this Class IIX-IO Note is
registered (as of the date of determination or as of such other date as may be
specified in the Indenture) as the owner hereof for all purposes, whether or not
this Class IIX-IO Note shall be overdue; and none of the Issuer, the Enhancer,
the Indenture Trustee or any such agent shall be affected by notice to the
contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the Indenture Trustee and the rights of the Class IIX-IO Noteholders
under the Indenture at any time by the Issuer and the Indenture Trustee with
prior written notice to each Rating Agency and with the consent of the Enhancer
and the Holders of Notes representing not less than a majority of the aggregate
Note Balance of the Notes affected thereby. The Indenture also contains
provisions permitting the Enhancer (so long as no Enhancer Default exists) or
the Holders of Notes representing a specified percentage of the aggregate Note
Balance with the consent of the Enhancer, on behalf of all Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Class IIX-IO Note (or any one or more Predecessor
Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Class IIX-IO Note and of any Class IIX-IO Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made hereon. The Indenture also
permits the Issuer and the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Noteholders,
but with prior written notice to each Rating Agency and the prior written
consent of the Enhancer, unless an Enhancer Default shall have occurred.

         The term "Issuer" as used in this Class IIX-IO Note includes any
successor to the Issuer under the Indenture.

         The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee, the
Enhancer and the Noteholders under the Indenture.

         The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

         This Class IIX-IO Note and the Indenture shall be construed in
accordance with the laws of the State of New York, and the obligations, rights
and remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

                                     A-5-4
<PAGE>

         No reference herein to the Indenture and no provision of this Class
IIX-IO Note or of the Indenture shall alter or impair the obligation of the
Issuer, which is absolute and unconditional, to pay interest on this Class
IIX-IO Note at the times, place and rate and in the coin or currency herein
prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Wilmington Trust Company or Wells Fargo
Bank Minnesota, National Association in their respective individual capacities,
any owner of a beneficial interest in the Issuer, or any of their respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for, the payment of interest on this Class IIX-IO Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The Holder of this Class IIX-IO Note, by its
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, such Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture
or in this Class IIX-IO Note.

                                     A-5-5
<PAGE>

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not
in its individual capacity, has caused this Class IIX-IO Note to be duly
executed.

                            IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

                            By:  WILMINGTON TRUST COMPANY, not in its
                                 individual capacity but solely as Owner Trustee

                                 By: ___________________________________________
                                     Authorized Signatory

                            Dated:  ____ __________.

                                     A-5-6

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                        WELLS FARGO BANK MINNESOTA, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Indenture Trustee

                                        By:  ___________________________________
                                                  Authorized Signatory

                                        Dated:  ____ __________.

                                     A-5-7

<PAGE>

                                   ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee:

______________________________________________________

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

________________________________________________________________________________

________________________________________________________________________________
     (name and address of assignee)

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

Dated:  ________________________________  ____________________________________*/

                                          ____________________________________*/

----------
*    NOTICE: The signature to this assignment must correspond with the name of
     the registered owner as it appears on the face of the within Note in every
     particular, without alteration, enlargement or any change whatever. Such
     signature must be guaranteed by an "eligible guarantor institution" meeting
     the requirements of the Note Registrar, which requirements include
     membership or participation in STAMP or such other "signature guarantee
     program" as may be determined by the Note Registrar in addition to, or in
     substitution for, STAMP, all in accordance with the Securities Exchange Act
     of 1934, as amended.

                                     A-5-8
<PAGE>

                                    EXHIBIT B

                  [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").

(a)      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.

(b)      The Buyer warrants and represents to, and covenants with, the Indenture
Trustee and the Issuer (as defined in the Indenture (the "Indenture"), dated as
of May 31, 2002, between Irwin Whole Loan Home Equity Trust 2002-A, as Issuer,
and Wells Fargo Bank Minnesota, National Association, as Indenture Trustee),
pursuant to Section 4.02 of the Indenture, as follows:

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

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

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

                                      B-1
<PAGE>

                buy or accept a transfer, pledge or other disposition of the
                Rule 144A Securities, any interest in the Rule 144A Securities
                or any other similar security from, or otherwise approached or
                negotiated with respect to the Rule 144A Securities, any
                interest in the Rule 144A Securities or any other similar
                security with, any person in any manner, or made any general
                solicitation by means of general advertising or in any other
                manner, or taken any other action, that would constitute a
                distribution of the Rule 144A Securities under the 1933 Act or
                that would render the disposition of the Rule 144A Securities a
                violation of Section 5 of the 1933 Act or require registration
                pursuant thereto, nor will it act, nor has it authorized or will
                it authorize any person to act, in such manner with respect to
                the Rule 144A Securities.

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

(c)      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.

                                      B-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: ___________________________________

                                      B-3
<PAGE>

                                                            ANNEX 1 TO EXHIBIT B

            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, as amended ("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.

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

     ___ Bank. The Buyer (i) 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 (ii) 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 (i) 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 (ii) 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, as amended.

     ___ 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 of the United States.

                                   Annex 1-1
<PAGE>

     ___ State or Local Plan. The Buyer is a plan established and maintained by
     a State, its political subdivisions, or any agency or instrumentality of
     such State or its political subdivisions, for the benefit of its employees.

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

     ___ Investment Adviser. The Buyer is an investment adviser registered under
     the Investment Advisers Act of 1940, as amended.

     ___ 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, as amended.

     ___ Business Development Company. The Buyer is a business development
     company as defined in Section 202(a)(22) of the Investment Advisers Act of
     1940, as amended.

     ___ Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
     company and whose participants are exclusively (i) 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 (ii) employee benefit plans within the meaning of
     Title I of the Employee Retirement Income Security Act of 1974, as amended,
     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, as amended.

5.   The Buyer acknowledges that it is familiar with Rule 144A and understands
     that the seller to it and other parties related to the Rule 144A Securities
     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.

                                   Annex 1-2
<PAGE>

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

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

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

                                     ___________________________________________
                                     Print Name of Buyer

                                     By:   _____________________________________
                                           Name:
                                           Title:

                                           Date:

                                   Annex 1-3
<PAGE>

                                                            ANNEX 2 TO EXHIBIT B

            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, as amended ("Rule 144A")
         because the 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, as amended, 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

                                   Annex 2-1
<PAGE>

         made herein because one or more sales to the Buyer will be in reliance
         on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
         own account.

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

                                      __________________________________________
                                      Print Name of Buyer

                                      By:  _____________________________________
                                           Name:
                                           Title:

                                           Date:

                                      IF AN ADVISER

                                      __________________________________________
                                      Print Name of Buyer

                                      By:  _____________________________________
                                           Name:
                                           Title:

                                      Date:

                                   Annex 2-2
<PAGE>

                                    EXHIBIT C

                     FORM OF INVESTOR REPRESENTATION LETTER

                                                                 ---------, ----

Bear Stearns Asset Backed Securities, Inc.
383 Madison Avenue, 10th Floor
New York, NY  10179

Wells Fargo Bank Minnesota, National Association
Wells Fargo Center
Sixth and Marquette
Minneapolis, Minnesota 55479

Attention:  Corporate Trust Administration

         Re:   Home Equity Loan-Backed Capped Funding Notes,
               Series 2002-A

Ladies and Gentlemen:

         ________________ (the "Purchaser") intends to purchase $_________ Home
Equity Loan-Backed Capped Funding Notes], Series 2002-A (the "Capped Funding
Notes"), issued pursuant to the indenture dated as of May 31, 2002 (the
"Indenture"), between Irwin Whole Loan Home Equity Trust 2002-A, as issuer (the
"Issuer"), and Wells Fargo Bank Minnesota, National Association, as indenture
trustee (the "Indenture Trustee"). Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in Appendix A to the
Indenture. The Purchaser hereby certifies, represents and warrants to, and
covenants with, the Issuer and the Indenture Trustee that:

         (a)   The Purchaser understands that (i) the Capped Funding Notes 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, (ii) the Issuer is not
required to so register or qualify the Capped Funding Notes, (iii) the Capped
Funding Notes 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, (iv) the Indenture contains
restrictions regarding the transfer of the Capped Funding Notes and (v) the
Capped Funding Notes will bear a legend to the foregoing effect.

         (b)   The Purchaser is acquiring the Capped Funding Notes 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.

         (c)   The Purchaser is (i) 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 Capped
Funding Notes, such that it is capable of evaluating the merits and risks of
investment in the Capped Funding Notes, (ii) able to bear the economic risks

                                      C-1
<PAGE>

of such an investment and (iii) an "accredited investor" within the meaning of
Rule 501(a) promulgated pursuant to the Act.

         (d)   The Purchaser has been furnished with, and has had an opportunity
to review (i) a copy of the Indenture and (ii) such other information concerning
the Capped Funding Notes, the Mortgage Loans and the Issuer as has been
requested by the Purchaser from the Issuer or the Seller and is relevant to the
Purchaser's decision to purchase the Capped Funding Notes. The Purchaser has had
any questions arising from such review answered by the Issuer or the Seller to
the satisfaction of the Purchaser.

         (e)   The Purchaser has not and will not nor has it authorized or will
it authorize any person to (i) offer, pledge, sell, dispose of or otherwise
transfer any Note, any interest in any Note or any other similar security to any
person in any manner, (ii) solicit any offer to buy or to accept a pledge,
disposition of other transfer of any Note, any interest in any Note or any other
similar security from any person in any manner, (iii) otherwise approach or
negotiate with respect to any Note, any interest in any Note or any other
similar security with any person in any manner, (iv) make any general
solicitation by means of general advertising or in any other manner or (v) take
any other action, that (as to any of (i) through (v) above) would constitute a
distribution of any Capped Funding Note under the Act, that would render the
disposition of any Capped Funding Note 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
Capped Funding Notes, except in compliance with the provisions of the Indenture.

         (f)   The Purchaser is not a non-United States person.

                                         Very truly yours,

                                         By:  __________________________________
                                              Name:
                                              Title:

                                      C-2
<PAGE>

                                                                       EXHIBIT D

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                                 ---------, ----

Bear Stearns Asset Backed Securities, Inc.
383 Madison Avenue, 10th Floor
New York, NY  10179

Wells Fargo Bank Minnesota, National Association
Wells Fargo Center
Sixth and Marquette
Minneapolis, Minnesota 55479

Attention:  Corporate Trust Administration

         Re:  Home Equity Loan-Backed Capped Funding Notes,
              Series 2002-A

Ladies and Gentlemen:

         ___________ (the "Purchaser") intends to purchase $________ Home Equity
Loan-Backed Capped Funding Notes, Series 2002-A (the "Notes"), issued pursuant
to an indenture dated as of May 31, 2002 (the "Indenture"), between Irwin Whole
Loan Home Equity Trust 2002-A, as issuer (the "Issuer"), and Wells Fargo Bank
Minnesota, National Association, as indenture trustee (the "Indenture Trustee").
Capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in Appendix A to the Indenture. The Seller hereby
certifies, represents and warrants to, and covenants with, the Issuer and the
Indenture Trustee that:

                                      D-1
<PAGE>

         Neither the Seller nor anyone acting on its behalf has (i) offered,
pledged, sold, disposed of or otherwise transferred any Capped Funding Note, any
interest in any Capped Funding Note or any other similar security to any person
in any manner, (ii) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Capped Funding Note, any interest in any
Capped Funding Note or any other similar security from any person in any manner,
(iii) has otherwise approached or negotiated with respect to any Capped Funding
Note, any interest in any Capped Funding Note or any other similar security with
any person in any manner, (iv) has made any general solicitation by means of
general advertising or in any other manner, or (v) has taken any other action,
that (as to any of (i) through (v) above) would constitute a distribution Capped
Funding Notes under the Securities Act of 1933, as amended (the "Act"), that
would render the disposition of any Capped Funding Note 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 not act in any manner set forth
in the foregoing sentence with respect to any Capped Funding Note. The Seller
has not and will not sell or otherwise transfer any of the Notes, except in
compliance with the provisions of the Indenture.

                                         Very truly yours,

                                         By:  __________________________________
                                              Name:
                                              Title:

                                      D-2
<PAGE>
                                                                       EXHIBIT E

                          FORM OF REPRESENTATION LETTER

                                                                 ---------, ----

Bear Stearns Asset Backed Securities, Inc.
383 Madison Avenue, 10th Floor
New York, NY 10179

Wilmington Trust Company,
as Owner Trustee
1100 North Market
Wilmington, Delaware 19890

Wells Fargo Bank Minnesota, National Association
as Administrator and Indenture Trustee
Wells Fargo Center
Sixth and Marquette
Minneapolis, Minnesota 55479

                  Re:   Bear Stearns Asset Backed Securities Inc.
                        Irwin Whole Loan Home Equity Trust 2002-A;
                        Non-Offered Subordinate Notes

Dear Sirs:

         One or more Non-Offered Subordinate Notes (the "Transferee") intends to
acquire from ____________ (the "Seller"), issued pursuant to an indenture dated
as of May 31, 2002 (the "Indenture"), between Irwin Whole Loan Home Equity Trust
2002-A, as Issuer (the "Issuer") and Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee. Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed thereto in Appendix A to the
Indenture.

         The Transferee hereby certifies, represents and warrants to, and
covenants with, the Depositor, the Owner Trustee, the Administrator and the
Indenture Trustee that:

         (a)   the Transferee is acquiring the Non-Offered Subordinate Note for
its own behalf and is not acting as agent or custodian for any other person or
entity in connection with such acquisition;

         (b)   the Transferee is not a partnership, grantor trust or S
corporation for federal income tax purposes, or, if the Transferee is a
partnership, grantor trust or S corporation for federal income tax purposes, the
Non-Offered Subordinate Notes are not more than 50% of the assets of the
partnership, grantor trust or S corporation;

         (c)   the Transferee will not (x) incur indebtedness secured by
Non-Offered Subordinate Notes where payments on such indebtedness bear a
relationship to payments

                                      E-1
<PAGE>

on either the Mortgage Loans in Group I or the Mortgage Loans as a whole within
the meaning of Treasury Regulations Section 301.7701(i)-1(f) or (y) use a
partnership, trust or other entity to indirectly achieve the result described in
clause (x); and

         (d)   the Transferee has been furnished with, and has had an
opportunity to review a copy of the Indenture. The Transferee agrees to be bound
by the Indenture.

                                             Very truly yours,

                                             By: _____________________________
                                                 Name:
                                                 Title:

                                      E-2
<PAGE>

                                                                       EXHIBIT F

                        CERTIFICATE OF NON-FOREIGN STATUS

         This Certificate of Non-Foreign Status (the "Certificate") is delivered
pursuant to Section 4.02 of the indenture dated as of May 31, 2002 (the
"Indenture"), between Irwin Whole Loan Home Equity Trust 2002-A, as Issuer (the
"Issuer") and Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee, in connection with the acquisition of, transfer to or possession by the
undersigned, whether as beneficial owner (the "Beneficial Owner"), or nominee on
behalf of the Beneficial Owner of the Non-Offered Subordinate Note. Capitalized
terms used herein but not otherwise defined shall have the meanings ascribed
thereto in Appendix A to the Indenture.

         Each holder must complete Part I, Part II (if the holder is a nominee),
and in all cases sign and otherwise complete Part III.

         In addition, each holder shall submit with this Certificate an IRS Form
W-9 relating to such holder.

         To confirm to the Indenture Trustee, the Owner Trustee and the Issuer
that the provisions of Sections 871, 881 or 1446 of the Internal Revenue Code
(relating to withholding tax on foreign partners) do not apply in respect of the
Non-Offered Subordinate Note held by the undersigned, the undersigned hereby
certifies:

Part I -       Complete Either A or B

                     A.     Individual as Beneficial Owner

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

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

                                  _____________________________; and

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

                     B.     Corporate, Partnership or Other Entity as Beneficial
Owner

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

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

                                      F-1
<PAGE>

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

Part II -      Nominees

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

         ___ an IRS Form W-9

         ___ a form such as this or substantially similar

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

Part III -     Declaration

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

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

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

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

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

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

                                      F-2<PAGE>

                                                                     EXHIBIT 4.2

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

                   BEAR STEARNS ASSET BACKED SECURITIES, INC.,
                                  as Depositor,

                       IRWIN UNION BANK AND TRUST COMPANY,
                               as Master Servicer,

                   IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A,
                                   as Issuer,

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                              as Indenture Trustee

                          SALE AND SERVICING AGREEMENT

                            Dated as of May 31, 2002

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

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE
<S>                                                                                                  <C>

ARTICLE I       DEFINITIONS.............................................................................1

    Section 1.01.     Definitions.......................................................................1

    Section 1.02.     Interpretive Provisions...........................................................1

    Section 1.03.     Interest Calculations.............................................................2

ARTICLE II      CONVEYANCE OF MORTGAGE LOANS............................................................2

    Section 2.01.     Conveyance of Mortgage Loans......................................................2

    Section 2.02.     Treatment of Transfer.............................................................3

    Section 2.03.     Mortgage File.....................................................................3

    Section 2.04.     Representations and Warranties of the Master Servicer.............................4

    Section 2.05.     Representations and Warranties of the Issuer......................................5

    Section 2.06.     Representations and Warranties of the Depositor...................................6

    Section 2.07.     Representations and Warranties Regarding the Mortgage Loans.......................7

    Section 2.08.     Enforcement of Representations and Warranties.....................................8

    Section 2.09.     Future Advances...................................................................9

ARTICLE III     ADMINISTRATION AND SERVICING OF MORTGAGE LOANS..........................................9

    Section 3.01.     Appointment of the Master Servicer................................................9

    Section 3.02.     Subservicing Agreements Between the Master Servicer and Subservicers.............11

    Section 3.03.     Collection of Mortgage Loan Payments.............................................13

    Section 3.04.     Permitted Withdrawals from the Collection Account................................14

    Section 3.05.     Maintenance of Insurance.........................................................15

    Section 3.06.     Fidelity Bond; Errors and Omissions Policy.......................................16

    Section 3.07.     Enforcement of Due-on-Sale Clauses; Assumption Agreements........................17

    Section 3.08.     Realization upon Defaulted Mortgage Loans........................................18

    Section 3.09.     Indenture Trustee to Cooperate; Release of Mortgage Files; Trust Estates;
                      Related Documents ...............................................................19

    Section 3.10.     Servicing Fee; Payment of Certain Expenses by Master Servicer....................21

    Section 3.11.     Access to Certain Documentation and Information Regarding the Mortgage Loans.....21

    Section 3.12.     Reserved.........................................................................22

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 3.13.     Recordation of Assignments.......................................................22

    Section 3.14.     Annual Statement as to Compliance................................................22

    Section 3.15.     Annual Independent Public Accountants' Servicing Report..........................22

    Section 3.16.     Reserved.........................................................................23

    Section 3.17.     Indemnification; Third-Party Claims..............................................23

    Section 3.18.     Maintenance of Existence and Licenses; Merger or Consolidation of the
                      Master Servicer .................................................................24

    Section 3.19.     Excluded Amounts.................................................................24

ARTICLE IV      SERVICING CERTIFICATE..................................................................24

    Section 4.01.     Servicing Certificate............................................................24

ARTICLE V       THE ACCOUNTS...........................................................................27

    Section 5.01.     Accounts.........................................................................27

    Section 5.02.     Collection Account...............................................................27

    Section 5.03.     Trustee Collection Account.......................................................28

ARTICLE VI      THE MASTER SERVICER....................................................................26

    Section 6.01.     Liability of the Master Servicer.................................................29

    Section 6.02.     Merger or Consolidation or Assumption of the Obligations of the Master Servicer..29

    Section 6.03.     Limitation on Liability of the Master Servicer and Others........................30

    Section 6.04.     Master Servicer Not to Resign....................................................30

    Section 6.05.     Delegation of Duties.............................................................31

    Section 6.06. Indenture Trustee Fees and Expenses; Indemnification.................................31

    Section 6.07.     Indemnification of Owner Trustee by Master Servicer..............................33

ARTICLE VII     DEFAULT................................................................................33

    Section 7.01.     Default..........................................................................33

    Section 7.02.     Indenture Trustee to Act; Appointment of Successor...............................35

    Section 7.03.     Notification to Securityholders..................................................36

ARTICLE VIII    MISCELLANEOUS PROVISIONS...............................................................36

    Section 8.01.     Amendment........................................................................36

    Section 8.02.     Governing Law....................................................................37

    Section 8.03.     Notices..........................................................................37

                                       ii
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

                                                                                                     PAGE

    Section 8.04.     Severability of Provisions.......................................................38

    Section 8.05.     Third-Party Beneficiaries........................................................38

    Section 8.06.     Counterparts.....................................................................38

    Section 8.07.     Effect of Headings and Table of Contents.........................................38

    Section 8.08.     Termination; Clean-Up Call.......................................................38

    Section 8.09.     Certain Matters Affecting the Indenture Trustee..................................39

    Section 8.10.     Owner Trustee Not Liable for Mortgage Documents or Related Documents.............39

    Section 8.11.     Rights of the Enhancer...........................................................40

    Section 8.12.     Limitation of Liability of Owner Trustee.........................................40

    Section 8.13      Tax Treatment of Servicing Fee and Other Amounts.................................40
</TABLE>

<PAGE>

         This SALE AND SERVICING AGREEMENT (the "Agreement"), dated as of May
31, 2002, is among Bear Stearns Asset Backed Securities, Inc., as depositor (the
"Depositor"), Irwin Union Bank and Trust Company, as master servicer (the
"Master Servicer"), Irwin Whole Loan Home Equity Trust 2002-A, as issuer (the
"Issuer"), and Wells Fargo Bank Minnesota, National Association, as indenture
trustee (the "Indenture Trustee").

                                   WITNESSETH:

         WHEREAS, pursuant to the terms of the Mortgage Loan Purchase and
Servicing Agreement attached as Exhibit A hereto, the Seller sold to the
Depositor the Mortgage Loans, together with the applicable Mortgage Documents
and Related Documents on March 28, 2002, and thereafter, until the end of the
Managed Amortization Period, the Seller will sell to the Issuer all Additional
Balances relating thereto created after the Cut-Off Date;

         WHEREAS, the Depositor will sell the Mortgage Loans and assign all of
its rights under the Mortgage Loan Purchase and Servicing Agreement to the
Issuer, together with the applicable Mortgage Documents and Related Documents,
on the Closing Date;

         WHEREAS, pursuant to the terms of the Trust Agreement, the Issuer will
issue the Certificates;

         WHEREAS, pursuant to the terms of the Indenture, the Issuer will issue
the Notes; and

         WHEREAS, pursuant to the terms of this Agreement, the Master Servicer
will service the Mortgage Loans directly or through one or more Subservicers.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.01. Definitions. For all purposes of this Agreement, except
as otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in Appendix A to the indenture dated as of May 31,
2002 (the "Indenture"), between the Issuer and the Indenture Trustee, which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.

         Section 1.02. Interpretive Provisions. Unless the context otherwise
requires, (i) a term has the meaning assigned to it; (ii) an accounting term not
otherwise defined has the meaning assigned to it in accordance with generally
accepted accounting principles as in effect from time to time; (iii) "or"
includes "and/or"; (iv) "including" means including without limitation; (v)
words in the singular include the plural and words in the plural include the
singular; (vi) the term "proceeds" has the meaning ascribed thereto in the UCC;
(vii) any agreement, instrument or statute defined or referred to herein or in
any instrument or certificate delivered in connection

<PAGE>

herewith means such agreement, instrument or statute as from time to time
amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments incorporated
therein; and (viii) references to a Person are also to such Person's permitted
successors and assigns.

         Section 1.03. Interest Calculations. All calculations of interest
hereunder that are made in respect of any HELOC originated by the Master
Servicer shall be made on an average daily balance basis using a 365/366 day
year. All calculations of interest hereunder that are made in respect of any
High LTV Mortgage Loan or any HEL originated before January 1, 2000 shall be
made either on a daily basis using a 365/366-day year or on the basis of a
360-day year assumed to consist of twelve 30-day months, except upon loan
payoff, when interest is calculated on an actual 365/366 day basis. All
calculations of interest on the Class IA-1 Notes and the Class IIA-1 Notes shall
be made on the basis of the actual number of days in the related Interest Period
and a year assumed to consist of 360 days. All calculations of interest on any
other Security shall be made on the basis of a 360-day year assumed to consist
of twelve 30-day months. The calculation of the Servicing Fee shall be made on
the basis of the actual number of days in the related Interest Period and a
360-day year.

                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS

         Section 2.01. Conveyance of Mortgage Loans. In consideration of the
Issuer's delivery to or upon the order of the Depositor of executed and
authenticated Notes and Certificates, in authorized denominations and in
aggregate amounts equal to the aggregate Initial Note Balance, the Depositor
does hereby sell, transfer, assign and otherwise convey to the Issuer, in trust
for the benefit of the Securityholders and, with respect to the Mortgage Loans
in Group I, the Enhancer, without recourse, subject to the Depositor's
obligations herein:

         (a)   all right, title and interest of the Depositor in and to the
Mortgage Loans listed in Exhibit B hereto and all principal and interest
collected after the Cut-Off Date relating to the Cut-Off Date Principal Balances
of the Mortgage Loans, and any Additional Balances relating thereto created
after the Cut-Off Date;

         (b)   all right, title and interest of the Depositor in the Lien on the
Mortgaged Properties created by the related Mortgage Documents;

         (c)   all right, title and interest of the Depositor in any Liquidation
Proceeds and Insurance Proceeds covering the Mortgage Loans or the related
Mortgaged Properties or Mortgagors;

         (d)   all right, title and interest (but none of the obligations) of
the Depositor under the Mortgage Loan Purchase and Servicing Agreement,
including, but not limited to, the right to enforce, on behalf of the Depositor,
the representations and warranties made by the Seller to the Depositor relating
to itself and the representations and warranties relating to the Mortgage Loans
made therein by the Seller to the Depositor, as listed in Exhibit C (giving the
meaning to such

                                       2
<PAGE>

terms set forth in the Mortgage Loan Purchase and Servicing Agreement) hereto
and the rights of the Depositor under Section 7.03 of the Mortgage Loan Purchase
and Servicing Agreement; and

         (e)   any proceeds of the foregoing and all other assets included or to
be included in the Trust for the benefit of the Securityholders and, in the case
of the Mortgage Loans assigned to Group I, the Enhancer.

         Section 2.02. Treatment of Transfer. It is the intention of the
Depositor that the transfer and assignment contemplated by this Agreement shall
constitute, as of its execution, a sale of all of its right, title and interest
in and to the Mortgage Loans and other property of the Trust Estate from the
Depositor to the Issuer and the beneficial interest in and title to the Mortgage
Loans and the other property shall not be part of the Depositor's estate in the
event of the filing of a bankruptcy petition by or against the Depositor under
any bankruptcy law. In the event that, notwithstanding the intent of the
Depositor, the transfer and assignment contemplated hereby is held not to be a
sale, this Agreement shall be deemed to have constituted a grant of a security
interest in the property referred to in this Section for the benefit of the
Securityholders and, with respect to the Mortgage Loans in Group I, the
Enhancer.

         Notwithstanding the characterization of certain classes of the Notes as
debt for federal, state and local income and franchise tax purposes, the parties
hereto intend to treat the transfer of the Mortgage Loans to the Trust as
provided herein as a sale, for certain non-tax purposes, of all the Depositor's
right, title and interest in and to the Mortgage Loans, whether now existing or
hereafter created, and the other property described above and all proceeds
thereof. In the event such transfer is deemed not to be a sale for such
purposes, the Depositor shall be deemed to have granted to the Trust a security
interest in all of the Depositor's right, title and interest in, to and under
the Mortgage Loans, whether now existing or hereafter created, and the other
property described above and all proceeds thereof; and this Agreement shall
constitute a security agreement under applicable law.

         The Issuer hereby appoints the Indenture Trustee as its custodian for
purposes of taking possession of the Trust Estate in order to perfect any
security interest arising as a result of the operation of this Section 2.02.

         Section 2.03. Mortgage File. In connection with the sale of the
Mortgage Loans to the Depositor pursuant to the Mortgage Loan Purchase and
Servicing Agreement, the Mortgage File with respect to each Mortgage Loan was
delivered to Wells Fargo Bank Minnesota, National Association. In connection
with the transfer of the Mortgage Loans on the Closing Date, the Indenture
Trustee will deliver an initial certification, certifying that it has received a
Mortgage File containing a Mortgage Note or Loan Agreement for each such
Mortgage Loan listed on the Mortgage Loan Schedule to the Depositor and, with
respect to the Mortgage Loans in Group I, the Enhancer. The Indenture Trustee
shall not distribute the initial certification to any other party. Within 120
days following each such delivery of Mortgage Files, the Indenture Trustee shall
review each such Mortgage File to ascertain that the Mortgage Documents are
contained therein and that such Mortgage Documents relate to the Mortgage Loans
identified on the Mortgage Loan Schedule. Furthermore, the Indenture Trustee
shall review the following data elements contained in the Mortgage Loan Schedule
(a) the Seller's loan number, (b) the Mortgagor's name, (c) the address
(including city and state) of the related Mortgaged Property,

                                       3
<PAGE>

(d) the original principal balance and (e) the maturity of the related Mortgage
Note. In so doing, the Indenture Trustee may rely on the purported due execution
and genuineness of any signature thereon. If, within such 120 day period, the
Indenture Trustee finds any Mortgage Document (other than a Mortgage Note for
which the Indenture Trustee has received a lost note affidavit) constituting a
part of a Mortgage File not to have been executed or received or to be unrelated
to the Mortgage Loan identified in the Mortgage Loan Schedule, the Indenture
Trustee shall, promptly upon the conclusion of its review, notify the Master
Servicer, the Depositor and, with respect to the Mortgage Loans in Group I, the
Enhancer in the form of the certificate attached as Exhibit F hereto. The list
of noted exceptions included on such Exhibit F or of any exceptions still
existing after delivery of the initial certification shall not be provided by
the Indenture Trustee to any Securityholder (or beneficial owner thereof). The
Master Servicer shall cause the Seller or, if applicable, the Depositor within
120 days of its receipt of such notice, to correct or cure any such defect or to
cause such defect to be corrected or cured or to substitute for or repurchase
the affected Mortgage Loan pursuant to the terms of the Mortgage Loan Purchase
and Servicing Agreement.

         The Indenture Trustee shall have no responsibility for reviewing any
Mortgage File except as expressly provided in this Section. In reviewing any
Mortgage File pursuant to this Section, the Indenture Trustee shall have,
without limitation, no responsibility for determining whether any document is
valid and binding, whether the text of any assignment or endorsement is in
proper or recordable form (except, if applicable, to determine if the Indenture
Trustee is the assignee or endorsee thereof), whether any document has been
recorded in accordance with the requirements of any applicable jurisdiction,
whether a blanket assignment is permitted in any applicable jurisdiction,
whether any Person executing any document is authorized to do so or whether any
signature thereon is genuine, but shall only be required to determine whether a
document has been executed and that it appears to be what it purports to be.

         Section 2.04. Representations and Warranties of the Master Servicer.
The Master Servicer represents and warrants to the Issuer and for the benefit of
the Indenture Trustee, as pledgee of the Mortgage Loans, and, with respect to
the Mortgage Loans in Group I, the Enhancer, as of the Closing Date:

         (a)   the Master Servicer is a bank duly organized and validly existing
under the laws of the State of Indiana, and has full power and authority to own
its assets and to transact the business in which it is currently engaged. The
Master Servicer (including, where appropriate, through its subsidiaries), is
duly qualified to do business and is in good standing in each jurisdiction in
which the character of the business transacted by it or properties owned or
leased by it requires such qualification and in which the failure to so qualify
would have a material adverse effect on the business, properties, assets or
condition (financial or otherwise) of the Master Servicer;

         (b)   the Master Servicer has full power and authority to make,
execute, deliver and perform this Agreement and all of the transactions
contemplated hereunder (including, where appropriate, through its subsidiaries),
and has taken all necessary corporate action to authorize the execution,
delivery and performance of this Agreement;

                                       4
<PAGE>

         (c)   the Master Servicer is not required to obtain the consent of any
other Person or any consent, license, approval or authorization from, or
registration or declaration with, any governmental authority, bureau or agency
in connection with the execution, delivery, performance, validity or
enforceability of this Agreement, except for such consent, license, approval or
authorization or registration or declaration as shall have been obtained or
filed, as the case may be;

         (d)   the execution and delivery of this Agreement and the performance
of the transactions contemplated hereby by the Master Servicer will not violate
any material provision of any existing law or regulation or any order or decree
of any court applicable to the Master Servicer or any provision of the articles
or bylaws of the Master Servicer, or constitute a material breach of any
mortgage, indenture, contract or other agreement to which the Master Servicer is
a party or by which it may be bound; and

         (e)   Except as disclosed in the Prospectus Supplement, no Proceeding
of or before any court, tribunal or governmental body is currently pending or,
to the knowledge of the Master Servicer, threatened against the Master Servicer
or any of its properties or with respect to this Agreement or the Securities
that in the opinion of the Master Servicer has a reasonable likelihood of
resulting in a material adverse effect on the transactions contemplated by this
Agreement.

         The foregoing representations and warranties shall survive the transfer
of the Mortgage Loans to the Trust and any termination of the Master Servicer
hereunder. Upon discovery of a breach of any representation or warranty that
materially and adversely affects the interests of the Securityholders or, with
respect to the Mortgage Loans in Group I and so long as the Policy is in effect
or amounts are owed to the Enhancer under the Insurance Agreement, the Enhancer,
the party discovering such breach or the Enhancer shall give prompt written
notice to the other parties hereto. Within 90 days of its discovery or its
receipt of notice of such breach or, with the prior written consent of a
Responsible Officer of the Indenture Trustee and, with respect to the Mortgage
Loans in Group I and so long as the Policy is in effect or amounts are owed to
the Enhancer under the Insurance Agreement, the Enhancer, such longer period
specified in such consents, the Master Servicer shall cure such breach in all
material respects.

         Section 2.05. Representations and Warranties of the Issuer. The Issuer
hereby represents and warrants to the Master Servicer and for the benefit of
Indenture Trustee, as pledgee of the Mortgage Loans, and, with respect to the
Mortgage Loans in Group I, the Enhancer, as of the Cut-Off Date, that:

         (a)   the Issuer is a business trust duly formed and in good standing
under the laws of the State of Delaware and has full power, authority and legal
right to execute and deliver this Agreement and to perform its obligations under
this Agreement, and has taken all necessary action to authorize the execution,
delivery and performance by it of this Agreement; and

         (b)   the execution and delivery by the Issuer of this Agreement and
the performance by the Issuer of its obligations under this Agreement will not
violate any provision of any law or regulation governing the Issuer or any
order, writ, judgment or decree of any court, arbitrator or governmental
authority or agency applicable to the Issuer or any of its assets. Such
execution,

                                       5
<PAGE>

delivery, authentication and performance will not require the authorization,
consent or approval of, the giving of notice to, the filing or registration
with, or the taking of any other action with respect to, any governmental
authority or agency regulating the activities of business trusts. Such
execution, delivery, authentication and performance will not conflict with, or
result in a breach or violation of, any mortgage, deed of trust, lease or other
agreement or instrument to which the Issuer is a party or by which it may be
bound.

         Section 2.06. Representations and Warranties of the Depositor. The
Depositor represents and warrants to the Indenture Trustee and, with respect to
the Mortgage Loans in Group I, the Enhancer, as of the Closing Date, that:

         (a)   Depositor is a corporation, validly existing and in good standing
under the laws of the State of Delaware, and has full power and authority to own
its assets and to transact the business in which it is currently engaged. The
Depositor is duly qualified to do business as a foreign corporation and is in
good standing in each jurisdiction in which the character of the business
transacted by it or any properties owned or leased by it requires such
qualification and in which the failure so to qualify would have a material
adverse effect on the business, properties, assets or condition (financial or
otherwise) of the Depositor;

         (b)   Depositor has full power and authority to make, execute, deliver
and perform this Agreement and all of the transactions contemplated hereunder,
and has taken all necessary corporate action to authorize the execution,
delivery and performance of this Agreement. When executed and delivered, this
Agreement will constitute the legal, valid and binding obligation of the
Depositor enforceable in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights generally, and by
the availability of equitable remedies;

         (c)   Depositor is not required to obtain the consent of any other
Person or any consent, license, approval or authorization from, or registration
or declaration with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement;

         (d)   the execution, delivery and performance of this Agreement by the
Depositor will not violate any provision of any existing law or regulation or
any order decree of any court applicable to the Depositor or any provision of
the articles of incorporation or bylaws of the Depositor, or constitute a
material breach of any mortgage, indenture, contract or other agreement to which
the Depositor is a party or by which it may be bound;

         (e)   no Proceeding of or before any court, tribunal or governmental
body is currently pending or, to the knowledge of the Depositor, threatened
against the Depositor or any of its properties or with respect to this Agreement
or the Securities;

         (f)   this Agreement (i) constitutes a valid transfer and assignment to
the Trust of all right, title and interest of the Depositor in and to the
Mortgage Loans, all monies due or to become due with respect thereto, all
proceeds of such Mortgage Loans, such funds as are from time to time on deposit
in the Collection Account or Trustee Collection Account and all other property
specified in the definition of "Trust Estate" as being part of the Trust Estate;
and upon

                                       6
<PAGE>

payment for Additional Balances relating thereto, if any, will constitute a
valid transfer and assignment to the Trust of all right, title and interest of
the Depositor in and to such Additional Balances, all monies due or to become
due with respect thereto, all proceeds of such Additional Balances and all other
property relating thereto that is specified in the definition of "Trust Estate"
relating to Additional Balances or (ii) constitutes a grant of a security
interest, as defined in the UCC as in effect in the State of New York, in such
property in favor of the Trust or the Owner Trustee on behalf of the Trust;
provided, that if the Indenture Trustee obtains and maintains possession of the
Mortgage File for each Mortgage Loan, the Trust shall have a first priority
perfected security interest in such property; and

         (g)   Immediately prior to the transfer and assignment to the Trust of
all of its right, title and interest in and to the Mortgage Loans in Group I,
the Depositor was the sole owner of record and was the holder of the Mortgage
Loans in Group I and the indebtedness evidenced by the related Mortgage Notes or
Loan Agreements. Upon the transfer and assignment to the Issuer, the Mortgage
Loans in Group I, including the related Mortgage Notes or Loan Agreements and
the Mortgages, were not subject to an assignment, sale or pledge to any person
other than Issuer and the Depositor had good and marketable title to and was the
sole owner thereof and had full right to transfer and sell the Mortgage Loan in
Group I to the Issuer free and clear of any encumbrance, equity, lien, pledge,
charge, claim or security interest and has the full right and authority subject
to no interest or participation of, or agreement with, any other party, to sell
and assign the Mortgage Loans in Group I pursuant to this Agreement and
following the sale of the Mortgage Loans in Group I, the Issuer will own the
Mortgage Loans in Group I free and clear of any encumbrance, equity,
participation interest, lien other than Permitted Liens, pledge, charge, claim
or security interest. The Depositor intends to relinquish all rights to possess,
control and monitor the Mortgage Loans in Group I. The Depositor acquired any
right, title and interest in and to the Mortgage Loans in Group I in good faith
and without notice of any adverse claim.

         The foregoing representations and warranties shall survive the sale and
assignment of the Mortgage Loans to the Trust. Upon discovery of a breach of any
representation or warranty that materially and adversely affects the interests
of the Securityholders and, with respect to the Mortgage Loans in Group I, the
Enhancer, the party discovering such breach or the Enhancer shall give prompt
written notice to the other parties hereto. Within 90 days of its discovery or
its receipt of notice of such breach or, with the prior written consent of a
Responsible Officer of the Indenture Trustee and, with respect to the Mortgage
Loans in Group I, the Enhancer, such longer period specified in such consents,
the Depositor shall cure such breach in all material respects.

         Section 2.07. Representations and Warranties Regarding the Mortgage
Loans.

         (a)   In addition to the representations and warranties made by the
Seller in the Mortgage Loan Purchase and Servicing Agreement and assigned to the
Issuer in Section 2.01, the Depositor hereby makes, for the benefit of the
Issuer and the Enhancer, the representations and warranties as to the Mortgage
Loans contained in Exhibit C for the period of time from, and excluding, March
28, 2002 to, and including, the Closing Date (the "Applicable Period"). The
representations and warranties with respect to the Mortgage Loans made by the
Depositor shall be deemed to be breached by the Depositor if any such
representation and warranty is inaccurate at any time during the Applicable
Period and such inaccuracy is due to events occurring or facts arising with
respect to the Mortgage Loans during the Applicable Period. The Depositor shall

                                       7
<PAGE>

have an obligation pursuant to Section 2.08 to cure or repurchase a Mortgage
Loan for which there is a breach of its representations and warranties. In the
case of any Eligible Substitute Mortgage Loans, the representations and
warranties of the Depositor shall be deemed to be made as of the related
Subsequent Transfer Date. With respect to any representation or warranty
contained in Exhibit C of this Agreement that was made to the Seller's
knowledge, if the substance of such representation or warranty is inaccurate and
such inaccuracy materially and adversely affects the value of the related
Mortgage Loan or the interests of the Trust, then such inaccuracy shall be
deemed a breach of the representation or warranty for all purposes under this
Agreement notwithstanding such qualification.

         (b)   The representations and warranties of both the Seller in the
Mortgage Loan Purchase and Servicing Agreement and the representations and
warranties of the Depositor herein shall survive the sale, transfer and
assignment of the Mortgage Loans to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture. The representations and warranties
set forth in this Section shall survive delivery of the Mortgage Files to the
Indenture Trustee pursuant to Section 2.04 and the termination of the rights and
obligations of the Master Servicer pursuant to Section 6.04 or Article VII.

         Section 2.08. Enforcement of Representations and Warranties. The Master
Servicer, on behalf of and subject to the direction of the Indenture Trustee, as
pledgee of the Mortgage Loans, and, in the case of the Mortgage Loans assigned
to Group I, the Enhancer or the Issuer, shall enforce the representations and
warranties of the Seller in Section 7.01 and Section 7.02 of the Mortgage Loan
Purchase and Servicing Agreement and of the Depositor in Section 2.07 hereof, as
applicable. Upon the discovery by the Depositor, the Master Servicer, the
Issuer, the Indenture Trustee, the Enhancer, or the Custodian of a breach of any
of the representations and warranties made by the Seller in the Mortgage Loan
Purchase and Servicing Agreement or the Depositor in Section 2.07 in respect of
any Mortgage Loan that materially and adversely affects the interests of any
Securityholder or the Enhancer (or upon the occurrence of a Repurchase Event),
the Person discovering such breach shall give prompt written notice to the other
foregoing Persons and to the Seller. The Master Servicer shall promptly demand
of the Seller or the Depositor, as applicable, that within 60 days of receipt of
notice making such demand it (i) cure such breach in all material respects with
respect to a breach of the representations and warranties contained in Section
7.01 or Section 7.02 of the Mortgage Loan Purchase and Servicing Agreement, or
with respect to a breach of the representations and warranties contained in
Section 2.07 herein, respectively, or (ii) purchase the related Mortgage Loan
from the Issuer or substitute an Eligible Substitute Mortgage Loan (and remit to
the Trustee Collection Account any related Substitution Adjustment Amount), in
each case in the manner set forth in Section 7.03 of the Mortgage Loan
Purchasing and Servicing Agreement.

                                       8
<PAGE>

         The obligation of the Seller or the Depositor, as the case may be, to
accept a retransfer of a Mortgage Loan as to which a breach has occurred and is
continuing and to make any required deposit into the Collection Account or
Trustee Collection Account or to substitute an Eligible Substitute Mortgage
Loan, as the case may be, shall constitute the sole and exclusive remedy
hereunder against the Seller or the Depositor, as applicable, respecting such
breach available therefor. Notwithstanding the foregoing limitation, the
Indenture Trustee shall enforce the obligations of the Seller in the Mortgage
Loan Purchase and Servicing Agreement, to indemnify the Depositor, the Issuer,
the Owner Trustee and the Indenture Trustee as "Purchaser" under the Mortgage
Loan Purchase and Servicing Agreement for the breach of any covenant,
representation or warranty of the Seller pursuant to the terms of Section 12.01
of such agreement.

         In connection with the purchase or substitution of any Mortgage Loan,
the Issuer shall assign to the Seller or the Depositor, as applicable, all of
its right, title and interest in and to such Mortgage Loan. Upon receipt of the
Repurchase Price, or upon the completion of such substitution, the Master
Servicer shall notify the Custodian thereof, and the Custodian shall deliver the
Mortgage Files to the Master Servicer, together with all relevant endorsements
and assignments prepared by the Master Servicer that the Indenture Trustee shall
execute.

         Section 2.09. Future Advances. With respect to the HELOCs,
notwithstanding Section 2.01, neither the Indenture Trustee nor the Trust
assumes any obligation under any Loan Agreement that provides for the funding of
future advances to any Mortgagor thereunder, and neither the Trust nor the
Indenture Trustee shall be obligated or permitted to fund any such future
advances. Additional Balances that do not constitute Excluded Amounts shall be
part of the related Principal Balance of such HELOCs as they are created and are
hereby transferred to the Trust as part of the Trust Estate on the Closing Date
pursuant to this Section.

                                  ARTICLE III

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         Section 3.01. Appointment of the Master Servicer.

         (a)   Irwin Union Bank and Trust Company agrees to act as the Master
Servicer and to perform all servicing duties under this Agreement, subject to
the terms hereof.

         (b)   The Master Servicer shall service and administer the Mortgage
Loans in a manner consistent with the terms of this Agreement and as shall be
normal and usual in its general mortgage servicing activities and consistent
with mortgage servicing practices of prudent mortgage lending institutions which
service mortgage loans of the same type as the Mortgage Loans for their own
accounts in the jurisdictions in which the related Mortgaged Properties are
located, and shall have full power and authority, acting alone or through
Subservicers, to do any and all things in connection with such servicing and
administration as it may deem necessary or desirable; provided, that the Master
Servicer shall at all times remain responsible to the Issuer, the Indenture
Trustee, as pledgee of the Mortgage Loans, and the Enhancer, in the case of the
Mortgage Loans assigned to Group I, for the performance of its duties and
obligations hereunder in accordance with the terms hereof. Without limiting the
generality of the foregoing, the Master

                                       9
<PAGE>

Servicer shall continue, and is hereby authorized and empowered by the Issuer
and the Indenture Trustee, as pledgee of the Mortgage Loans, to execute and
deliver, on behalf of itself, the Issuer, the Indenture Trustee or any of them,
any and all instruments of satisfaction or cancellation, or of partial or full
release or discharge, and all other comparable instruments with respect to the
Mortgage Loans and the Mortgaged Properties. The Issuer, the Indenture Trustee
and the Custodian, as applicable, shall furnish the Master Servicer with any
powers of attorney or other documents necessary or appropriate to enable the
Master Servicer to carry out its servicing and administrative duties hereunder.
In addition, the Master Servicer may, at its own discretion and on behalf of the
Issuer, obtain credit information in the form of a "credit score" from a credit
repository. Within 30 days of the Closing Date, the Indenture Trustee shall
deliver to the Master Servicer no less than 50 original limited powers of
attorney substantially in the form of Exhibit D hereto. Following the Closing
Date, the Indenture Trustee shall promptly deliver further powers of attorney as
reasonably requested by the Master Servicer.

         In servicing and administering the Mortgage Loans, the Master Servicer
(i) shall employ procedures consistent with the Master Servicer's normal
servicing practices and in a manner consistent with recovery under any insurance
policy required to be maintained by a Mortgagor pursuant to the related Mortgage
Documents or by the Master Servicer pursuant to this Agreement, and (ii) may
take reasonable actions to encourage or effect the termination of Loan
Agreements that have not had an outstanding Principal Balance for at least 6
months. With respect to the Mortgage Loans in Group I and so long as the
Enhancer has rights pursuant to Section 8.11 of this Agreement, the Master
Servicer, in accordance with its customary servicing practices, may make an
increase or decrease of up to 100 basis points in the Mortgage Interest Rate of
a Mortgage Loan for which the Mortgagor is not in default with respect to the
payment of all or any portion of a Monthly Payment; provided, however, that
without the prior written consent of the Enhancer the aggregate Principal
Balance of the Mortgage Loans in Group I so modified by the Master Servicer
pursuant to this sentence shall not exceed 1% of the Initial Aggregate Principal
Balance of Group I. In addition, with respect to the Mortgage Loans in Group I
and subject to the prior written consent of the Enhancer so long as the Enhancer
has rights pursuant to Section 8.11 of this Agreement, the Master Servicer may
allow the substitution of collateral with respect to any such Mortgage Loan in
accordance with its customary servicing practices.

         With respect to the Mortgage Loans in Group II and, to the extent the
Enhancer's rights under Section 8.11 of this Agreement have terminated, the
Mortgage Loans in Group I, the Master Servicer may perform rate modifications
and substitute collateral in accordance with the Master Servicer's customary
servicing practices; provided, however, that the aggregate Principal Balance of
the Mortgage Loans in Group II and Group I for which rate modifications have
been performed by the Master Servicer pursuant to this sentence (and the
preceding paragraph in the case of the Mortgage Loans in Group I) shall not
exceed 5% of the Initial Aggregate Principal Balance of Group II and Group I,
respectively.

         The Master Servicer may, without prior approval from any Person,
increase the Credit Limit on any HELOC in a manner consistent with the Master
Servicer's customary servicing practices. The Master Servicer may, without prior
approval from any Person, repurchase Mortgage Loans from the Trust at the
Repurchase Price in cases where Mortgage Loans are found to be in breach of the
related purchase agreement that the Master Servicer has with brokers

                                       10
<PAGE>

or correspondent lenders, even if such Mortgage Loans are not otherwise in
breach of this Agreement.

         The relationship of the Master Servicer, and of any successor to the
Master Servicer as master servicer hereunder, to the Issuer under this Agreement
is intended by the parties to be that of an independent contractor and not that
of a joint venturer, partner or general agent.

         The Master Servicer shall make any Mortgage Interest Rate adjustments
on each Interest Adjustment Date for any Mortgage Loan with an adjustable
Mortgage Interest Rate in compliance with applicable regulatory adjustable
mortgage loan requirements and the related Loan Agreements. The Master Servicer
shall establish procedures to monitor the Interest Adjustment Dates in order to
ensure that it uses a published interest rate in determining an interest rate
change, and it will comply with such procedures. In the event that a published
interest rate is no longer available, the Master Servicer shall choose a new
comparable published interest rate in accordance with the provisions hereof, the
related Loan Agreements and the Master Servicer's normal servicing practices,
and shall provide the related Mortgagor, the Issuer, the Indenture Trustee and,
in the case of the Mortgage Loans assigned to Group I, the Enhancer with notice
of the new published interest rate sufficient under law and the related Loan
Agreement. The Master Servicer shall execute and deliver all appropriate notices
required by the applicable adjustable mortgage loan laws and regulations and the
related Loan Agreements regarding such adjustments. If the Master Servicer fails
to make a timely Mortgage Interest Rate adjustment in accordance with the terms
of the related Loan Agreement, the Master Servicer shall use its own funds to
satisfy any shortfall in Collections resulting therefrom for so long as such
shortfall shall continue. Any such amount paid by the Master Servicer shall be
reimbursable to it from any subsequent amounts collected on account of the
related Mortgage Loan with respect to such adjustments.

         (c)   On and after such time as the Owner Trustee receives the
resignation of, or notice of the removal of, the Master Servicer from its rights
and obligations under this Agreement, and with respect to a resignation pursuant
to Section 6.04, after receipt by the Owner Trustee of the Opinion of Counsel
required pursuant to Section 6.04, the Indenture Trustee or its designee shall
assume all of the rights and obligations of the Master Servicer, subject to
Section 7.02. The Master Servicer shall, upon request of the Indenture Trustee
and at the expense of the Master Servicer, deliver to the Indenture Trustee all
documents and records relating to the Mortgage Loans and an accounting of
amounts collected and held by the Master Servicer, and shall otherwise use its
best efforts to effect the orderly and efficient transfer of servicing rights
and obligations to the assuming Person.

         (d)   The Master Servicer shall deliver a list of Servicing Officers to
the Issuer and the Indenture Trustee by the Closing Date, which list may from
time to time be amended, modified or supplemented by the subsequent delivery to
the Issuer and the Indenture Trustee of any superseding list of Servicing
Officers.

         (e)  The Master Servicer and the Depositor hereby agree that all of the
servicing duties and obligations of Irwin Union Bank and Trust Company under the
Mortgage Loan Purchase and Servicing Agreement are hereby superseded in their
entirety by the servicing duties and obligations set forth in this Sale and
Servicing Agreement.

                                       11
<PAGE>

         Section 3.02. Subservicing Agreements Between the Master Servicer and
Subservicers.

         (a) The Master Servicer may enter into Subservicing Agreements with
Subservicers for the servicing and administration of certain of the Mortgage
Loans and for the performance of any and all other activities of the Master
Servicer hereunder. 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, and any amount
actually received by such Subservicer in respect of a Mortgage Loan shall be
deemed to have been received by the Master Servicer, whether or not actually
received by the Master Servicer. Each Subservicing Agreement shall be upon such
terms and conditions as are not inconsistent with this Agreement and as the
Master Servicer and the Subservicer shall have agreed. With the approval of the
Master Servicer, a Subservicer may delegate its servicing obligations to
third-party servicers, but such Subservicers shall remain obligated under the
related Subservicing Agreements. The Master Servicer and the related
Subservicers may enter into amendments to the Subservicing Agreements; provided,
that any such amendments shall not cause the Mortgage Loans to be serviced in a
manner that would be materially inconsistent with the standards set forth in
this Agreement. The Master Servicer shall be entitled to terminate any
Subservicing Agreement in accordance with the terms and conditions thereof and
without any limitation by virtue of this Agreement; provided, that in the event
of the termination of any Subservicing Agreement by the Master Servicer or the
related Subservicer, the Master Servicer shall either act as servicer of the
related Mortgage Loans or enter into a Subservicing Agreement with a successor
Subservicer that will be bound by the terms of the related Subservicing
Agreement. The Master Servicer shall be entitled to enter into any agreement
with a Subservicer for indemnification of the Master Servicer, and nothing
contained herein shall be deemed to limit or modify such indemnification.

         Each Subservicer shall be (i) a depository institution the accounts of
which are insured by the FDIC or (ii) another entity that engages in the
business of originating, acquiring or servicing mortgage loans, and in either
case shall be authorized to transact business in those States in which (x) the
related Mortgaged Properties are situated and (y) qualification is required to
conduct a subservicing business operation. In addition, each Subservicer shall
obtain and preserve its qualifications to do business as a foreign corporation
in each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, the Securities or any
Mortgage Loan, and to perform or cause to be performed its duties under the
related Subservicing Agreement, which shall provide that the Subservicer's
rights will automatically terminate upon the termination, resignation or other
removal of the Master Servicer under this Agreement. Each account used by any
Subservicer for the deposit of payments on any Mortgage Loan shall be an
Eligible Account. Irwin Home Equity Corporation shall be the initial
Subservicer.

         (b) Notwithstanding any Subservicing Agreement, any of the provisions
of this Agreement relating to agreements or arrangements between the Master
Servicer and a Subservicer or any references to actions taken through a
Subservicer or otherwise, the Master Servicer shall remain obligated and
primarily liable to the Issuer and the Indenture Trustee for the servicing and
administration of the Mortgage Loans in accordance with the provisions of this
Agreement, without diminution of such obligation or liability by virtue of such
Subservicing Agreements or arrangements or by virtue of indemnification from the
related Subservicer, and to

                                       12
<PAGE>

the same extent and under the same terms and conditions as if the Master
Servicer alone were servicing and administering the Mortgage Loans.

         As part of its servicing activities hereunder, the Master Servicer, for
the benefit of the Issuer, the Indenture Trustee and, with respect to the
Mortgage Loans in Group I, the Enhancer, shall use reasonable efforts to enforce
the obligations of each Subservicer under the related Subservicing Agreement to
the extent that the non-performance of any such obligation would have a material
adverse effect on any Mortgage Loan. Such enforcement, including the legal
prosecution of claims, termination of Subservicing Agreements 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, in its good faith business
judgment, would require were it the owner of the related Mortgage Loans. The
Master Servicer shall pay the costs of such enforcement at its own expense, and
shall be reimbursed therefor only from (i) 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) a specific recovery of
costs, expenses or attorneys' fees against the Person against whom such
enforcement is directed.

         In the event the Master Servicer shall for any reason no longer be the
Master Servicer, the Indenture Trustee or its designee may (i) assume all of the
rights and obligations of the Master Servicer under each Subservicing Agreement
that the Master Servicer may have entered into, which assumption shall not
violate the terms of the related Subservicing Agreement, (ii) notwithstanding
anything to the contrary contained in each such Subservicing Agreement,
terminate the related Subservicer without being required to pay any fee in
connection therewith or (iii) assume the terminated Master Servicer's rights and
obligations under such subservicing arrangements, which termination or
assumption shall not violate the terms of the related Subservicing Agreement.

         (c)   With respect to each Payment Date, on the twenty-first (21st)
calendar day of each month (or if such day is not a Business Day, the following
Business Day), the Master Servicer shall furnish a statement to the Indenture
Trustee, in writing or in an electronic format as the Indenture Trustee shall
reasonably request, setting forth all information reasonably necessary to allow
the Indenture Trustee to make the distributions contemplated by Section 3.05 of
the Indenture and to deliver the statement required to be delivered pursuant to
Section 3.25 of the Indenture and Section 4.01 hereof.

         Section 3.03. Collection of Mortgage Loan Payments. The Master Servicer
shall use its best efforts to collect all payments called for under the terms
and provisions of the Mortgage Documents and shall, to the extent such
procedures shall be consistent with this Agreement, follow such collection
procedures as shall constitute the Master Servicer's collection procedures for
mortgage loans serviced by it for its own account. Consistent with the
foregoing, and without limiting the generality of the foregoing, the Master
Servicer may in its discretion (i) waive any late payment charge, overlimit fee,
prepayment penalty or other fees that may be collected in the ordinary course of
servicing a Mortgage Loan and (ii) arrange with a Mortgagor a schedule for the
payment of principal and interest due and unpaid; provided, that such
arrangement is consistent with the Master Servicer's policies with respect to
mortgage loans; and provided further, that notwithstanding such arrangement,
such Mortgage Loans shall be included in the information regarding delinquent
Mortgage Loans set forth in the Servicing Certificate, but shall

                                       13
<PAGE>

not be separately identified as being subject to a payment arrangement. The
Master Servicer may also extend the due date for payment due on a Mortgage Loan
in accordance with its normal servicing practices; provided, that the Master
Servicer shall first determine that any such waiver or extension will not
materially adversely affect the Lien of the related Mortgage Documents or the
interests of the Issuer, the Indenture Trustee or, in the case of the Mortgage
Loans in Group I, the Enhancer and with respect to any Mortgage Loan in Group I,
the due date for any payment due under any Mortgage Loan in Group I may not be
extended more than six months beyond the maturity date of the Mortgage Loan in
Group I with the latest maturity date as of the Cut-Off Date. Consistent with
the terms of this Agreement, the Master Servicer may waive, modify or vary any
term of any Mortgage Loan, subject, if applicable, to the second paragraph of
Section 3.01(b).

         Consistent with the terms of this Agreement, the Master Servicer may
consent to the postponement of strict compliance with any such term or in any
manner grant indulgence to any Mortgagor; provided, that in the Master
Servicer's determination, such waiver, modification, postponement or indulgence
relates to a reasonable business purpose; and provided further, that such
waiver, modification, postponement or indulgence shall not materially and
adversely affect the interests of the Securityholders or, in the case of the
Mortgage Loans in Group I, the Enhancer. In addition, and without limitation, if
a HELOC is in default or, in the judgment of the Master Servicer, such default
is reasonably foreseeable, the Master Servicer may, through modification,
convert such HELOC to a fully amortizing HEL.

         Section 3.04. Permitted Withdrawals from the Collection Account. The
Master Servicer is hereby authorized from time to time to make withdrawals from
the Collection Account for the following purposes:

         (a)   on each Master Servicer Remittance Date, to deposit the amount
required by Section 5.03 hereof for the related Payment Date into the Trustee
Collection Account;

         (b)   on each Master Servicer Remittance Date prior to the end of the
Managed Amortization Period for Group I, Principal Collections with respect to
Mortgage Loans assigned to Group I shall be applied toward the purchase from the
Seller of Additional Balances to be assigned to Group I; provided, that the
aggregate amount so paid to the Seller in respect of Additional Balances at any
time during any related Collection Period shall not exceed the amount of
Principal Collections for Mortgage Loans assigned to Group I received during
such Collection Period;

         (c)   to the extent deposited into the Collection Account, to reimburse
itself or the related Subservicer for previously unreimbursed expenses incurred
in maintaining insurance policies pursuant to Section 3.05, for Liquidation
Expenses paid pursuant to Section 3.08 or for expenses otherwise reimbursable
pursuant to the terms of this Agreement to the extent not payable pursuant to
Section 3.08 (other than expenses incurred by the Master Servicer pursuant to
Sections 6.03, 6.06 and 6.07 of this Agreement); such withdrawal right being
limited to amounts received in respect of the Mortgage Loans, other than any
Repurchase Price in respect thereof, that represent late recoveries of the
payments for which such advances were made, or from Liquidation Proceeds or the
proceeds of the purchase of such Mortgage Loans;

                                       14
<PAGE>

         (d)   to pay to itself out of each payment received in respect of
interest on a Mortgage Loan as contemplated by clause (b) of the last paragraph
of Section 3.08, an amount equal to the Servicing Fee, to the extent not
retained pursuant to Section 5.02;

         (e)   to pay to the Seller or the Depositor, as applicable, with
respect to any Mortgage Loan or Mortgaged Property that has been purchased or
otherwise transferred to the Seller or the Depositor, all amounts received
thereon that are not required to be distributed to the Securityholders as of the
date on which the related Purchase Price or Repurchase Price is determined; and

         (f)   to withdraw any other amount deposited into the Collection
Account that was not required to be deposited therein pursuant to Section 5.02.

         On each Master Servicer Remittance Date, the Master Servicer shall
transfer from the Collection Account to the Trustee Collection Account the
amount necessary for the Indenture Trustee to make the required distributions
pursuant to Section 3.05(a) and (b) of the Indenture. The Master Servicer shall
keep and maintain separate accounting on a loan-by-loan basis for the purpose of
justifying any withdrawal from the Collection Account pursuant to the foregoing
paragraphs. Notwithstanding any other provision of this Agreement, the Master
Servicer shall be entitled to reimburse itself for any previously unreimbursed
expenses relating to a Mortgage Loan incurred pursuant to Section 3.08 or
otherwise reimbursable pursuant to the terms of this Agreement that the Master
Servicer determines to be otherwise nonrecoverable, except with respect to any
Mortgage Loan as to which the Purchase Price or Repurchase Price shall have been
paid, by withdrawal from the Collection Account, on any Business Day prior to
the Payment Date succeeding the date of such determination, of amounts on
deposit therein attributable to the Mortgage Loan.

         Section 3.05. Maintenance of Insurance.

         (a)   With respect to each Mortgage Loan, the Master Servicer shall
maintain accurate records reflecting the fire and casualty insurance coverage
maintained by the related Mortgagors with respect to the Mortgaged Properties in
accordance with its normal servicing practices. The Master Servicer may, if it
has received notice of a default or deficiency in respect of the payment of any
ground rents, taxes, assessments, water rates or casualty insurance premiums or
other charges that are or may become a Lien upon the related Mortgaged Property,
notify the related Mortgagor and the holder of the first Lien on the related
Mortgaged Property.

         (b)   To the extent permitted under the related Mortgage Documents, and
to the extent the Master Servicer receives notice that a hazard insurance policy
has been cancelled, the Master Servicer shall, to the extent consistent with its
normal servicing practices, cause to be maintained for each Mortgage Loan hazard
insurance naming the Master Servicer or the related Subservicer as loss payee
thereunder, and providing extended coverage in an amount at least equal to the
lesser of (i) the maximum insurable value of the improvements securing such
Mortgage Loan from time to time or (ii) the principal balance owing on such
Mortgage Loan from time to time. The Master Servicer shall monitor the
maintenance of any such hazard insurance so obtained in accordance with its
normal servicing practices.

                                       15
<PAGE>

         (c)   The Master Servicer shall cause to be maintained with respect to
any REO Property fire insurance with extended coverage in an amount at least
equal to the lesser of (i) the full insurable value of the improvements that are
a part of such property and (ii) the Principal Balance owing on the related
Mortgage Loan at the time of such foreclosure or deed in lieu of foreclosure.
Such insurance may be maintained in the form of one or more blanket insurance
policies. Amounts collected by the Master Servicer under any such policies,
other than amounts to be applied to the restoration or repair of Mortgaged
Property or REO Property or amounts released to the Mortgagor in accordance with
the Master Servicer's normal servicing practices, shall be deposited into the
Collection Account to the extent provided in Section 5.02.

         (d)   If, upon the origination of a Mortgage Loan, the related
Mortgaged Property was in an area identified in the Federal Register by the
Federal Emergency Management Agency as having special flood hazards, and flood
insurance has been made available, the Master Servicer shall cause to be
maintained, to the extent required by the related Mortgage Documents, a flood
insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration with a generally acceptable insurance carrier,
in an amount representing coverage at least equal to the lesser of (i) the
unpaid Principal Balance of such Mortgage Loan, (ii) the full insurable value of
such Mortgaged Property or (iii) the maximum amount of insurance available under
the Flood Disaster Protection Act of 1973, as amended. With respect to any REO
Property identified as being in a flood zone at origination, the Master Servicer
shall also maintain, if applicable, flood insurance in an amount at least equal
to the lesser of (i) the maximum insurable value of the improvements that are a
part of such property and (ii) the Principal Balance owing on the related
Mortgage Loan at the time of foreclosure or grant of deed in lieu of foreclosure
plus accrued interest and related Liquidation Expenses.

         (e)   Pursuant to Section 3.03, any amounts collected by the Master
Servicer under any insurance policy maintained pursuant to this Section, other
than amounts to be applied to the restoration or repair of Mortgaged Property or
released to a Mortgagor in accordance with the Master Servicer's normal
servicing practices, shall be deposited into the Collection Account, subject to
withdrawal pursuant to Section 3.04. Any cost incurred by the Master Servicer in
maintaining any such insurance shall be added to the amount owing under the
related Mortgage Loan where the terms of the related Mortgage Documents so
permit; provided, that the addition of any such cost shall not be taken into
account for purposes of calculating the Principal Balance of such Mortgage Loan
or distributions to be made to Securityholders. Such costs shall be recoverable
by the Master Servicer pursuant to Section 3.04.

         (f)   The Master Servicer shall be under no obligation to maintain or
require any Mortgagor to maintain earthquake, title or other additional
insurance, and shall be under no obligation itself to maintain any such
additional insurance on property acquired in respect of any 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.

         Section 3.06. Fidelity Bond; Errors and Omissions Policy.

         (a)   The Master Servicer shall maintain with a responsible company,
and at its own expense, a banker's blanket fidelity bond (a "Fidelity Bond") and
a mortgage errors and omissions insurance policy (an "Errors and Omissions
Policy"), in amounts as required by

                                       16
<PAGE>

FNMA and FHLMC and as are commercially available and at costs that are not
generally regarded as excessive by industry standards. Any fidelity bond shall
protect against dishonest act of officers and employees. Any such Fidelity Bond
or Errors and Omissions Policy shall not be canceled or modified by the Master
Servicer in a manner materially adverse to the Securityholders and, with respect
to the Mortgage Loans in Group I and so long as the Policy is in effect or
amounts are owed to the Enhancer under the Insurance Agreement, the Enhancer
without the prior written consent of the Issuer, the Indenture Trustee and, with
respect to the Mortgage Loans in Group I, the Enhancer.

         (b)   The Master Servicer shall be deemed to have complied with this
provision if any of its Affiliates has such a Fidelity Bond and Errors and
Omissions Policy and, by the terms of such policy, the coverage afforded
thereunder extends to the Master Servicer. The Master Servicer shall cause each
Subservicer to maintain an Errors and Omissions Policy and a Fidelity Bond
meeting the requirements of this Section.

         Section 3.07. Enforcement of Due-on-Sale Clauses; Assumption
Agreements. In any case in which a Mortgaged Property is about to be conveyed by
the related Mortgagor, whether by absolute conveyance, contract of sale or
otherwise, and whether or not such Mortgagor remains liable thereon, and the
Master Servicer has knowledge of such prospective conveyance, the Master
Servicer shall enforce any due-on-sale provision contained in such Mortgage
Documents to the extent permitted by such Mortgage Documents, unless such
provision in the reasonable judgment of the Master Servicer is not exercisable
under applicable law, governmental regulations or in the Master Servicer's
reasonable judgment that it would be in the best financial interests of the
Trust, in which case the Master Servicer may enter into an assumption and
modification agreement or a substitution of liability agreement with such
Mortgagor.

         The Master Servicer or the related Subservicer, as the case may be,
shall be entitled to (i) execute assumption agreements, substitution agreements
and instruments of satisfaction or cancellation or of partial or full release or
discharge, or any other document contemplated by this Agreement or other
comparable instruments with respect to the Mortgage Loans and the related
Mortgaged Properties; and the Issuer and the Indenture Trustee each shall
promptly execute any such documents upon the request of the Master Servicer, and
(ii) approve the granting of an easement on Mortgaged Property in favor of
another Person, any alteration or demolition of such 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 collection of,
such Mortgage Loan would not be adversely affected thereby. The Master Servicer
shall notify the Indenture Trustee that any such assumption or substitution
agreement has been completed by forwarding to the Indenture Trustee the original
copy of such assumption or substitution agreement, which the Indenture Trustee
shall add to the related Mortgage File and which shall, for all purposes, be
considered part of such Mortgage File to the same extent as all other documents
and instruments constituting a part thereof. The Master Servicer shall retain as
servicing compensation any fee collected by the Master Servicer for entering
into an assumption or substitution of liability agreement. A partial release
pursuant to this Section shall be permitted only if the Combined Loan-to-Value
Ratio for the related Mortgage Loan after such partial release does not exceed
the Combined Loan-to-Value Ratio for such Mortgage Loan as of the related
Cut-Off Date.

                                       17
<PAGE>

         Notwithstanding the provisions of this Section or any other provision
of this Agreement, the Master Servicer shall not be deemed to be in default,
breach or violation of any of its obligations hereunder by reason of any
conveyance by a Mortgagor of the related Mortgaged Property or any assumption of
a Mortgage Loan by operation of law with respect to which the Master Servicer
determines in good faith that it may be restricted by law from preventing, for
any reason whatsoever, or if the exercise of such right would impair or threaten
to impair any recovery under any applicable insurance policy or, in the Master
Servicer's judgment, would be reasonably likely to result in legal action by
such Mortgagor.

         Section 3.08. Realization upon Defaulted Mortgage Loans. With respect
to each Mortgage Loan that comes into and continues in default, the Master
Servicer shall exercise its reasonable judgment to determine whether to (a)
foreclose on the related Mortgaged Property, (b) write off the unpaid Principal
Balance thereof as bad debt, (c) take a deed in lieu of foreclosure, (d) accept
a short sale, (e) arrange for a repayment plan, (f) agree to a modification
thereof in accordance with this Section, (g) sue on the underlying promissory
note, (h) sell the Mortgage Loan as a nonperforming asset to a third party not
an Affiliate of the Master Servicer or Depositor or (i) take an unsecured note,
in each case subject to the rights of any related senior lienholder, provided,
however, that the Master Servicer may sell the Mortgage Loan or take an
unsecured note pursuant to clauses (h) and (i), respectively, only if the
Mortgage Loan has been charged off or constitutes a Liquidated Mortgage Loan.
The Master Servicer shall in no event expend funds in connection with any
foreclosure or attempted foreclosure that is not completed or towards the
correction of any default on a related senior mortgage loan or restoration of
any property if it shall determine that such expenditure would not increase the
related Liquidation Proceeds. In the event of a determination by the Master
Servicer that any such expenditure previously made pursuant to this Section will
not be reimbursable from Liquidation Proceeds, the Master Servicer shall be
entitled to reimbursement of its funds so expended pursuant to Section 3.04(c).

         With respect to the Mortgage Loans in Group I and so long as the
Enhancer has rights pursuant to Section 8.11 of this Agreement, the Master
Servicer, in accordance with its customary servicing practices, may modify the
Mortgage Interest Rates of defaulted Mortgage Loans; provided, however, that
without the prior written consent of the Enhancer the aggregate Principal
Balance of the Mortgage Loans in Group I so modified by the Master Servicer
pursuant to this paragraph shall not exceed 1% of the Initial Aggregate
Principal Balance of Group I.

         With respect to the Mortgage Loans in Group II and, to the extent the
Enhancer's rights under Section 8.11 of this Agreement have terminated, the
Mortgage Loans in Group I, the Master Servicer may perform rate modifications in
accordance with the Master Servicer's customary servicing practices; provided,
however, that the aggregate Principal Balance of the Mortgage Loans in Group II
and Group I for which rate modifications have been performed by the Master
Servicer pursuant to this sentence (and the preceding paragraph in the case of
the Mortgage Loans in Group I) shall not exceed 5% of the Initial Aggregate
Principal Balance of Group II and Group I, respectively.

         Notwithstanding the foregoing provisions of this Subsection 3.08, with
respect to any Mortgage Loan in Group I as to which the Master Servicer has
received actual notice of, or has actual knowledge of, the presence of any toxic
or hazardous substance on the related Mortgaged

                                       18
<PAGE>

Property, the Master Servicer shall not either (i) obtain title to such
Mortgaged Property as a result of or in lieu of foreclosure or otherwise, or
(ii) otherwise acquire possession of, or take any other action, with respect to,
such Mortgaged Property if, as a result of any such action, the Trust would be
considered to hold title to, to be a mortgagee-in-possession of, or to be an
owner or operator of such Mortgaged Property within the meaning of the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended from time to time, or any comparable law, unless the Master Servicer has
received approval from the Enhancer and has also previously determined, based on
its reasonable judgment and a prudent report prepared by a Person who regularly
conducts environmental audits using customary industry standards, that:

         (1)   such Mortgaged Property is in compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Purchaser to take such actions as are necessary to bring the Mortgaged
Property into compliance therewith; and

         (2)   there are no circumstances present at such Mortgaged Property
relating to the use, management or disposal of any hazardous substances,
hazardous materials, hazardous wastes, or petroleum-based materials for which
investigation, testing, monitoring, containment, clean-up or remediation could
be required under any federal, state or local law or regulation, or that if any
such materials are present for which such action could be required, that it
would be in the best economic interest of the Trust to take such actions with
respect to the affected Mortgaged Property.

         The cost of the environmental audit report contemplated by this
Subsection 3.08 shall be advanced by the Master Servicer, subject to the Master
Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.04(c).

         If the Master Servicer determines, in consultation with the Enhancer,
as described above, that it is in the best economic interest of the Trust to
take such actions as are necessary to bring any such Mortgaged Property into
compliance with applicable environmental laws, or to take such action with
respect to the containment, clean-up or remediation of hazardous substances,
hazardous materials, hazardous wastes, or petroleum-based materials affecting
any such Mortgaged Property, then the Master Servicer shall take such action as
it deems to be in the best economic interest of the Trust. The cost of any such
compliance, containment, cleanup or remediation shall be advanced by the Master
Servicer, subject to the Master Servicer's right to be reimbursed therefor from
the Collection Account as provided in Section 3.04(c).

         Notwithstanding any other provision of this Agreement, a defaulted
Mortgage Loan may be deemed to be finally liquidated if substantially all
amounts expected by the Master Servicer to be received in connection therewith
have been received; provided, that any subsequent collections with respect to
any such Mortgage Loan shall be deposited into the Collection Account. For
purposes of determining the amount of any Liquidation Proceeds or Insurance
Proceeds, or other unscheduled collections, the Master Servicer may take into
account amounts of additional receipts it expects to receive or any estimated
additional Liquidation Expenses it expects to incur in connection with such
Mortgage Loan.

         In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be issued to the Master Servicer, which

                                       19
<PAGE>

shall hold the same on behalf of the Issuer. Notwithstanding any such
acquisition of title and cancellation of the related Mortgage Loan, such
Mortgaged Property shall, except as otherwise expressly provided herein, be
considered to be an outstanding Mortgage Loan held as part of the Trust Estate
until such time as such Mortgaged Property shall be sold. Consistent with the
foregoing, for purposes of all calculations hereunder, so long as such Mortgaged
Property shall be considered to be an outstanding Mortgage Loan, it shall be
assumed that, notwithstanding that the indebtedness evidenced by the related
Mortgage Documents shall have been discharged, such Mortgage Documents in effect
at the time of any such acquisition of title before any adjustment thereto by
reason of any bankruptcy or similar Proceeding or any moratorium or similar
waiver or grace period will remain in effect.

         Any proceeds from foreclosure Proceedings or the purchase or repurchase
of any Mortgage Loan pursuant to the terms of this Agreement and any recovery
resulting from a collection of Liquidation Proceeds or Insurance Proceeds, shall
be applied in the following order of priority: (a) to reimburse the Master
Servicer or the related Subservicer in accordance with this Section; (b) to pay
to the Master Servicer or the related Subservicer all Servicing Fees payable
therefrom (without duplication for any proceeds applied pursuant to clause (a));
(c) as accrued and unpaid interest on such Mortgage Loan at the related Mortgage
Interest Rate to the Payment Date in respect of which such amounts are to be
deposited into the Trustee Collection Account; and (d) as a recovery of
principal on such Mortgage Loan.

         Section 3.09. Indenture Trustee to Cooperate; Release of Mortgage
Files; Trust Estates; Related Documents.

         (a) On or before each Payment Date, the Master Servicer shall notify
the Indenture Trustee or the Custodian (with a copy to the Issuer) of the
termination or payment in full of any Mortgage Loan during the preceding
Collection Period. Upon receipt of payment in full, the Master Servicer shall be
authorized to execute, pursuant to the authorization contained in the first
paragraph of Section 3.01(b), if the Assignments of Mortgage have been recorded
if required pursuant hereto or pursuant to the Mortgage Loan Purchase and
Servicing Agreement, an instrument of satisfaction regarding the related
Mortgage Documents, which instrument of satisfaction shall be recorded by the
Master Servicer if required by applicable law, and shall be delivered to the
Person entitled thereto. Any expenses incurred in connection with such
instrument of satisfaction or transfer shall be reimbursable from amounts on
deposit in the Collection Account. From time to time and as appropriate for the
servicing or foreclosure of any Mortgage Loan, the Indenture Trustee or the
Custodian shall, upon request of the Master Servicer and delivery to the
Indenture Trustee or the Custodian (with a copy to the Issuer) of two copies of
a Request for Release in the form of Exhibit E hereto, which shall be signed by
a Servicing Officer or be in a mutually agreeable electronic format that, in
lieu of being manually signed by a Servicing Officer, emanate from a Servicing
Officer, release or cause to be released the related Mortgage File to the Master
Servicer, and the Issuer and the Indenture Trustee shall promptly execute such
documents, in the forms provided by the Master Servicer, as shall be necessary
for the prosecution of any such Proceedings or the taking of other servicing
actions. The Request for Release shall obligate the Master Servicer to return
such Mortgage File to the Indenture Trustee or the Custodian (as specified
therein) when the need therefor by the Master Servicer no longer exists, unless
such Mortgage Loan shall have been liquidated.

                                       20
<PAGE>

         If an Assignment of Mortgage has been recorded, in order to facilitate
the foreclosure of the Mortgaged Property securing a Mortgage Loan that is in
default following such recordation, the Indenture Trustee or the Issuer shall,
if so requested in writing by the Master Servicer, promptly execute an
appropriate assignment in the form provided by the Master Servicer to assign
such Mortgage Loan for the purpose of collection to the Master Servicer, and any
such assignment shall unambiguously indicate that such assignment is for the
purpose of collection only. Upon such assignment, the Master Servicer, as
assignee for collection, will thereupon bring all required actions in its own
name and otherwise enforce the terms of such Mortgage Loan and deposit into or
credit to the Collection Account any Liquidation Proceeds received with respect
thereto. In the event that all delinquent payments due under any such Mortgage
Loan are paid by the related Mortgagor and any other defaults are cured, then
the Master Servicer, as assignee for collection, shall promptly reassign such
Mortgage Loan to the Indenture Trustee and return all Mortgage Documents and
Related Documents to the place where the related Mortgage File was being
maintained.

         The Indenture Trustee, as pledgee of the Mortgage Loans and as assignee
of record of the Mortgage Loans on behalf of the Issuer pursuant to Section 3.13
of the Indenture, shall, on behalf of the Issuer, take all such actions on
behalf of the Issuer and promptly execute and return all instruments reasonably
required by the Master Servicer in connection therewith; provided, that if the
Master Servicer requests a signature of the Indenture Trustee on behalf of the
Issuer, the Master Servicer shall deliver to the Indenture Trustee an Officer's
Certificate stating that such signature is necessary or appropriate to enable
the Master Servicer to carry out its servicing and administrative duties under
this Agreement.

         (b) Where the Issuer or the Indenture Trustee is required by this
Agreement to execute instruments to release property from the terms of the Trust
Agreement or the Indenture, as applicable, or convey the Issuer's or the
Indenture Trustee's interests in the same, the Issuer or the Indenture Trustee,
as applicable, shall do so in a manner and under circumstances that are not
inconsistent with the provisions of this Agreement. No Person relying upon any
instrument executed by the Issuer or the Indenture Trustee shall be bound to
ascertain the Issuer's or the Indenture Trustee's authority in connection
therewith, inquire into the satisfaction of any conditions precedent or see to
the application of any monies.

         (c) If from time to time the Master Servicer shall deliver to the
Custodian copies of any written assurance, assumption agreement or substitution
agreement or other similar agreement pursuant to Section 3.07, the Custodian
shall check that each of such documents purports to be an original executed copy
or, if the original executed copy has been submitted for recordation and has not
yet been returned, a copy of the original executed document; and if so, shall
file such documents, and upon receipt of the original executed copy from the
applicable recording office or receipt of a copy thereof certified by the
applicable recording office, shall file such originals or certified copies in
the related Mortgage File. If any such documents submitted by the Master
Servicer shall not meet the above qualifications, then the Custodian shall
promptly give the Master Servicer written notice of such occurrence or return
such documents to the Master Servicer, with a direction to the Master Servicer
to forward the correct documentation.

         (d) Upon receipt of two copies of a Request for Release from the Master
Servicer, substantially in the form of Exhibit E hereto, to the effect that a
Mortgage Loan has been the

                                       21
<PAGE>

subject of a final payment or a prepayment in full and has been terminated or
that substantially all Liquidation Proceeds determined by the Master Servicer in
its reasonable judgment to be finally recoverable have been recovered, and upon
deposit into the Collection Account of such final payment, prepayment in full or
Liquidation Proceeds, the Custodian shall promptly release the related Mortgage
File to the Master Servicer, and the Indenture Trustee shall execute the same,
along with such documents as the Master Servicer or the related Mortgagor may
request to evidence satisfaction and discharge of such Mortgage Loan.

         Section 3.10. Servicing Fee; Payment of Certain Expenses by Master
Servicer. The Master Servicer shall be entitled to receive the Servicing Fee in
accordance with Section 3.04(d) as compensation for its services in connection
with servicing the Mortgage Loans. Moreover, additional servicing compensation
in the form of late payment charges and other receipts not required to be
deposited into the Collection Account as specified in Section 5.02 may be
retained by the Master Servicer. The Master Servicer shall be required to pay
all expenses incurred by it in connection with its activities hereunder,
including payment of all fees and expenses not expressly stated hereunder to be
for the account of the Securityholders, and shall not be entitled to
reimbursement therefor. The Issuer shall pay the initial fees and expenses of
the Indenture Trustee from the proceeds of the Notes.

         Section 3.11. Access to Certain Documentation and Information Regarding
the Mortgage Loans. Whenever required by statute or regulation, the Master
Servicer shall provide each Securityholder or any regulator therefor, the
Indenture Trustee and, with respect to the Mortgage Loans in Group I, the
Enhancer with reasonable access to all documentation relating to the Mortgage
Loans, such access being afforded without charge but only upon reasonable
request and during normal business hours at the offices of the Master Servicer
or any Subservicer. Nothing in this Section shall limit the obligation of the
Master Servicer to observe any applicable law prohibiting disclosure of
information regarding Mortgagors, and the failure of the Master Servicer to
provide access as provided in this Section as a result of such obligation shall
not constitute a breach of this Section.

         Section 3.12. Reserved.

         Section 3.13. Recordation of Assignments. In the case of any Non-MERS
Mortgage Loan, the original assignment of Mortgage, in recordable form,
sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect the conveyance of the Mortgage Loan, which may be
in the form of one or more "blanket" assignments covering the Mortgage Loans
secured by Mortgaged Properties located in the same jurisdiction, shall be
recorded by the Master Servicer, at the expense of the Seller, upon the earlier
to occur of (i) the occurrence and continuation of a Servicing Default or (ii)
in the case of the Mortgage Loans assigned to Group I: (a) a bankruptcy or
insolvency proceeding involving the Mortgagor is initiated, (b) the resignation
of the Master Servicer, (c) the occurrence of an event of default relating to
the Master Servicer, or (d) at the written request of the Enhancer to record
assignments of the Mortgage Loans assigned to Group I because the Enhancer has
determined, in the exercise of its reasonable judgment, (1) a material adverse
change in (i) the ability of the Seller to perform its obligations under the
Mortgage Loan Purchase and Servicing Agreement or (ii) the ability of the Master
Servicer to perform its obligations under the Sale and Servicing Agreement has
occurred, or (2) the Enhancer has been advised by counsel that recordation of

                                       22
<PAGE>

assignments is necessary as a result of a change that occurred after the Closing
Date in applicable law or the interpretation thereof. While such assignment is
being recorded, the Custodian shall retain a photocopy thereof. If any
assignment is lost or returned unrecorded to the Custodian because of any defect
therein, the Master Servicer shall prepare at its expense a substitute
assignment or cure such defect, and the Master Servicer shall cause such
assignment to be recorded in accordance with this Section.

         Section 3.14. Annual Statement as to Compliance. The Master Servicer
shall deliver to the Issuer, the Indenture Trustee, and each Rating Agency with,
so long as the Policy is outstanding or amounts are owed to the Enhancer under
the Insurance Agreement, a copy to the Enhancer, not later than May 31 of each
year, commencing in 2003, an Officer's Certificate stating as to each signer
thereof that (i) a review of the activities of the Master Servicer during the
preceding calendar year and of its performance under this Agreement has been
made under such officer's supervision and (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 throughout such year, or if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof. The statement required
pursuant to Section 3.15 shall accompany such Officer's Certificate.

         Section 3.15. Annual Independent Public Accountants' Servicing Report.
Not later than May 31 of each year, commencing in 2003, the Master Servicer
shall deliver or cause to be delivered to the Issuer, the Indenture Trustee and,
in the case of the Mortgage Loans assigned to Group I, the Enhancer a report,
prepared by the Independent Accountants of the Master Servicer, stating that
such Independent Accountants (i) have conducted an examination of certain
documents and records of the Master Servicer (or an appropriate Affiliate
thereof) relating to the servicing of the mortgage loans being serviced by the
Master Servicer under servicing agreements similar to this Agreement (which
agreements shall be described in a schedule to such report) substantially as
required by the Uniform Single Attestation Program for Mortgage Bankers and (ii)
did not discover any exceptions or errors relating to the servicing activities
of the Master Servicer (including the servicing of Mortgage Loans subject to
this Agreement) that, in the opinion of such Independent Accountants, are
material, except for such exceptions as shall be set forth in such report. In
the event such firm requires the Indenture Trustee to agree to the procedures
performed by such firm, the Master Servicer shall direct the Indenture Trustee
in writing to so agree; it being understood and agreed that the Indenture
Trustee shall deliver such letter of agreement in conclusive reliance upon the
direction of the Master Servicer, and the Indenture Trustee need not make any
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

         Section 3.16. Reserved.

         Section 3.17. Indemnification; Third-Party Claims. The Master Servicer
(solely for the purpose of this Section, the "Indemnifying Party") agrees to
indemnify and to hold each of the Depositor, the Issuer, the Owner Trustee, the
Indenture Trustee and, in the case of the Mortgage Loans assigned to Group I,
the Enhancer (solely for the purpose of this Section, the "Indemnified Parties")
harmless against any and all claims, losses, penalties, fines, forfeitures,
legal fees and related costs, judgments, and any other costs, fees and expenses
that the Indemnified Parties may sustain in any way related to the failure of
the Indemnifying Party to perform its respective duties

                                       23
<PAGE>

in compliance with the terms of this Agreement. In the case of the Mortgage
Loans assigned to Group I, each Indemnified Party and the Master Servicer shall
immediately notify the other Indemnified Parties if a claim is made by a third
party with respect to this Agreement, and the Master Servicer shall, with the
consent of the Enhancer, such consent not to be unreasonably withheld, assume
the defense of such claim and pay all expenses in connection therewith,
including reasonable counsel fees approved by the Enhancer, and promptly pay,
discharge and satisfy any judgment or decree which may be entered into against
the Indemnified Parties in respect of such claim. In the case of the Mortgage
Loans assigned to Group II, each Indemnified Party (other than the Enhancer) and
the Master Servicer shall immediately notify the other Indemnified Parties
(other than the Enhancer) if a claim is made by a third party with respect to
this Agreement, and the Master Servicer shall assume the defense of such claim
and pay all expenses in connection therewith, including reasonable counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered into against the Indemnified Parties (other than the Enhancer) in
respect of such claim. The Indenture Trustee, shall, out of the assets of the
Trust Estate attributable to Group I and Group II, as applicable, reimburse the
Master Servicer in accordance with Section 3.04(c) hereof for all amounts
advanced by it pursuant to the preceding two sentences except where the claim
relates directly to the failure of the Master Servicer to service and administer
the Mortgage Loans in compliance with the terms of this Agreement; provided,
however, that the Master Servicer's indemnity hereunder shall not in any manner
be conditioned on the availability of funds for such reimbursement. If the
Master Servicer is unable to pay any such amounts owed to the Indenture Trustee,
such amounts shall be paid to the Indenture Trustee out of the Trust Estate
pursuant to Section 3.05(a)(x) or Section 3.05(b) of the Indenture, as
applicable. Solely to the extent that the Holders of the Certificate fail to
indemnify the Owner Trustee as required by Section 7.02 of the Trust Agreement,
the Master Servicer shall undertake such indemnification in accordance with the
terms of Section 7.02 of the Trust Agreement.

         Section 3.18. Maintenance of Existence and Licenses; Merger or
Consolidation of the Master Servicer. The Master Servicer (or an appropriate
Affiliate thereof) shall keep in full force and effect its existence, rights and
franchises, shall obtain and preserve its qualification to do business in each
jurisdiction necessary to protect the validity and enforceability of this
Agreement or any Mortgage Loan and to perform its duties hereunder, and shall
otherwise operate its business so as to cause the representations and warranties
under Section 2.04 to be true and correct at all times.

         Section 3.19. Excluded Amounts. After the end of the Managed
Amortization Period, the portion of the principal balance of any HELOC
attributable to Draws made subsequent to the end of the Managed Amortization
Period (each, an "Excluded Amount") shall not be transferred to the Trust, and
the portion of the Principal Collections and Interest Collections on such HELOC
for each Collection Period shall be allocated to the Excluded Amount pro rata
between the Excluded Amount and the Principal Balance of such HELOC in
proportion to the respective amounts outstanding as of the end of the calendar
month preceding such Collection Period.

                                       24
<PAGE>

                                   ARTICLE IV

                              SERVICING CERTIFICATE

         Section 4.01. Servicing Certificate. With respect to each Payment Date,
on the twenty-first (21st) calendar day of each month (or if such day is not a
Business Day, the following Business Day), the Master Servicer shall forward to
the Depositor and the Indenture Trustee, and the Indenture Trustee, pursuant to
Section 3.25 of the Indenture, shall make available to each Securityholder, the
Owner Trustee, each Paying Agent (if other than the Indenture Trustee), each
Rating Agency and, in the case of the Mortgage Loans assigned to Group I so long
as the Policy is outstanding or amounts are owed to the Enhancer under the
Insurance Agreement, the Enhancer, a Servicing Certificate setting forth the
following information, to the extent applicable:

         (a)   the aggregate amount of Collections received on the Mortgage
Loans during the related Collection Period;

         (b)   the aggregate amount of (i) Interest Collections and (ii)
Principal Collections and, in the case of the Managed Amortization Period, Net
Principal Collections (in each case stated separately for each Group and also in
the aggregate) for such Collection Period;

         (c)   the Principal Collection Distribution Amount for such Collection
Period;

         (d)   the amount distributable to each Class of Offered Notes and the
Variable Funding Notes in respect of interest;

         (e)   the amount of any Interest Carry-Forward Amounts;

         (f)   the Policy Draw Amount, if any, for such Payment Date and the
aggregate amount of prior draws on the Policy thereunder not yet reimbursed;

         (g)   the amount, if any, to be distributed to the Certificateholders;

         (h)   any accrued and unpaid Servicing Fees for previous Collection
Periods and the Servicing Fee for such Collection Period;

         (i)   the Excess Spread, if any, for such Collection Period (stated
separately for each Group);

         (j)   the Liquidation Loss Amount and Principal Balance of Liquidated
Mortgage Loans (in each case stated separately for each Group and also in the
aggregate) for (i) such Collection Period, (ii) such Collection Period and the
immediately preceding eleven Collection Periods and (iii) such Collection Period
and all previous Collection Periods and any Overcollateralization Increase
Amounts and Overcollateralization Release Amounts for such Collection Period;

                                       25
<PAGE>

         (k)   the aggregate Principal Balance of the Mortgage Loans (stated
separately for each Group and also in the aggregate) as of the end of the
preceding Collection Period and as of the end of the second preceding Collection
Period;

         (l)   the Offered Note Balance and the Variable Funding Balance for
each Class of Notes after giving effect to any distribution on such Payment Date
and to any reduction on account of Liquidation Loss Amounts;

         (m)   the Overcollateralization Amount and the Overcollateralization
Target Amount and whether the Loss and Delinquency Test has not been satisfied;

         (n)   the number and aggregate Principal Balances of Mortgage Loans (in
each case stated separately for each Group and also in the aggregate) (i) as to
which the related Monthly Payment is delinquent for 30-59 days, 60-89 days and
90 or more days and, as to HELOCs in Group I, is 180 days or more delinquent,
respectively, those Mortgage Loans in foreclosure, and those Mortgage Loans as
to which the related Mortgagor has commenced bankruptcy proceedings and (ii)
that have become related to REO Property, in each case as of the end of the
preceding Collection Period; in addition, with respect to the High LTV Mortgage
Loans, the number and aggregate Principal Balance of Mortgage Loans as to which
the related monthly Payment is delinquent for 30-59 days, 60-89 days, 90-119
days, 120-149 days, 150-179 days and 180 days or more separately identifying for
each bucket those Mortgage Loans subject to bankruptcy proceedings, those
Mortgage Loans that have become related to REO Property and the remaining
("purely delinquent") Mortgage Loans.

         (o)   prior to the end of the Managed Amortization Period with respect
to Group I, the aggregate amount of Additional Balances, if any, (i) created and
(ii) purchased during the preceding Collection Period;

         (p)   whether an Amortization Event, specifying such event, has
occurred since the prior Determination Date;

         (q)   whether a Servicing Default has occurred since the prior
Determination Date, specifying such Servicing Default;

         (r)   the Net Loan Rate for the related Collection Period;

         (s)   the number, Group and Principal Balances of any Mortgage Loans
removed from the Trust;

         (t)   the Group I Excess Cash Rate for such Collection Period;

         (u)   for Group I only, the sum of the Principal Balances of the three
largest Mortgage Loans in Group I as of the last day of such Collection Period;

         (v)   for Group I only, the Group I Rolling Twelve-Month Liquidation
Loss Amount Percentage for such Collection Period;

                                       26
<PAGE>

         (w)   for Group I only, the Group I Rolling Three-Month Average 90-Day
Delinquency Rate for such Collection Period; and

         (x)   the Group I Loss Percentage for such Collection Period.

         The Indenture Trustee shall conclusively rely upon the information
contained in a Servicing Certificate for purposes of making distributions
pursuant to Section 3.05 of the Indenture, shall have no duty to inquire into
such information and shall have no liability in so relying. The format and
content of the Servicing Certificate may be modified by the mutual agreement of
the Master Servicer, the Indenture Trustee and, in the case of the Mortgage
Loans in Group I, the Enhancer. The Master Servicer shall give notice of any
such change to each Rating Agency.

         The amounts furnished pursuant to clauses (d) above shall be expressed
as an aggregate dollar amount per each Class of Offered Notes or Variable
Funding Notes, as the case may be, with a $1,000 denomination.

         The Master Servicer shall forward to the Indenture Trustee and, in the
case of the Mortgage Loans in Group I, the Enhancer any other information
reasonably requested by the Indenture Trustee or, in the case of the Mortgage
Loans in Group I, the Enhancer to make distributions pursuant to Section 3.05 of
the Indenture. Prior to the close of business on the twenty-first (21st)
calendar day of each month (or if such day is not a Business Day, the following
Business Day), the Master Servicer shall furnish a written statement to the
Paying Agent and the Indenture Trustee setting forth the aggregate amounts
required to be withdrawn from the Collection Account. The determination by the
Master Servicer of such amounts shall be presumptively deemed to be correct for
all purposes hereunder, and the Owner Trustee and the Indenture Trustee shall be
protected in relying upon the same without any independent verification thereof.
In addition, upon the Issuer's written request, the Master Servicer shall
promptly furnish information reasonably requested by the Issuer that is
reasonably available to the Master Servicer to enable the Issuer to perform its
federal and state income tax reporting obligations.

                                   ARTICLE V

                                  THE ACCOUNTS

         Section 5.01. Accounts. Prior to the Closing Date, the Master Servicer
shall establish or cause to be established the following accounts, each of which
shall be an Eligible Account:

         (a)   an account (the "Collection Account") bearing a designation
clearly indicating that the funds on deposit therein are held for the benefit of
the Issuer, the Indenture Trustee, the Securityholders and the Enhancer; and

         (b)   an account in the name of the Indenture Trustee (the "Trustee
Collection Account"), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Securityholders and the
Enhancer.

                                       27
<PAGE>

         Section 5.02. Collection Account. The Master Servicer shall deposit or
cause to be deposited any amounts representing payments and collections in
respect of the Mortgage Loans received by it subsequent to the Cut-Off Date,
other than in respect of the payments referred to in the following paragraph,
into the Collection Account within two (2) Business Days following receipt
thereof (or otherwise on or prior to the Closing Date), including the following
payments and collections received or made by it:

         (a)   all payments of principal and interest in respect of the Mortgage
Loans received by the Master Servicer from the Mortgagors or the related
Subservicer (net of any portion of the interest thereof retained by such
Subservicer as subservicing fees);

         (b)   the aggregate Purchase Price or Repurchase Price of any Mortgage
Loans purchased by Seller or the Depositor pursuant to Sections 2.03 or 2.08;

         (c)   any Liquidation Proceeds and Insurance Proceeds;

         (d)   any Substitution Adjustment Amounts; and

         (e)   from the Master Servicer, any losses incurred upon Permitted
Investments of amounts deposited into the Collection Account;

provided, that with respect to each Collection Period, the Master Servicer shall
be permitted to retain from payments in respect of interest on the Mortgage
Loans, the Servicing Fee for such Collection Period and any prepayment
penalties, late fees and other similar fees.

         The foregoing requirements respecting deposits into the Collection
Account are exclusive; provided, that without limiting the generality of the
foregoing, the Master Servicer need not deposit into the Collection Account any
amounts representing fees or late charges payable by Mortgagors. In the event
that any amount not required to be deposited into the Collection Account is so
deposited, the Master Servicer may at any time withdraw such amount from the
Collection Account, any provision herein to the contrary notwithstanding.
Notwithstanding such commingling of funds, the Master Servicer shall keep
records that accurately reflect the funds on deposit in the Collection Account
that have been identified by it as being attributable to the Mortgage Loans and
shall hold all collections in the Collection Account to the extent they
represent collections on the Mortgage Loans for the benefit of the Issuer, the
Indenture Trustee, the Securityholders and, in the case of the Mortgage Loans in
Group I only, the Enhancer.

         The Master Servicer shall direct in writing the institution maintaining
the Collection Account to invest funds therein only in Permitted Investments. No
Permitted Investment may be sold or disposed of at a gain prior to maturity,
unless the Master Servicer shall have obtained an Opinion of Counsel at the
Master Servicer's expense addressed to the Indenture Trustee and, in the case of
the Mortgage Loans assigned to Group I, the Enhancer that such sale or
disposition will not cause the Trust to be to be treated as an association (or a
publicly-traded partnership) taxable as a corporation for federal income tax
purposes. All net income, other than any gain from a sale or disposition of the
type referred to in the preceding sentence, received from any such Permitted
Investment shall be paid to the Master Servicer as additional servicing

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<PAGE>

compensation. The amount of any losses incurred in respect therewith shall be
deposited into the Collection Account by the Master Servicer out of its own
funds immediately as incurred.

         The Master Servicer shall require each Subservicer to hold all funds
constituting collections on the Mortgage Loans, pending remittance thereof to
the Master Servicer, in one or more accounts meeting the requirements of an
Eligible Account (and amounts on deposit therein shall be invested in Permitted
Investments), unless all such collections are remitted on a daily basis to the
Master Servicer for deposit into the Collection Account.

         The Collection Account may, upon written notice to the Issuer, the
Indenture Trustee and, in the case of the Mortgage Loans assigned to Group I,
the Enhancer, be transferred to a different institution, provided that such
transfer is to an Eligible Account.

         On any Payment Date during the Managed Amortization Period with respect
to Mortgage Loans assigned to Group I, the Master Servicer shall withdraw from
the Collection Account and deliver to the Seller, as payment for Additional
Balances, the lesser of (i) the aggregate amount of Additional Balances created
during the related Collection Period and (ii) Principal Collections with respect
to Mortgage Loans assigned to Group I.

         Section 5.03. Trustee Collection Account. On each Master Servicer
Remittance Date, the Master Servicer shall transfer from the Collection Account
to the Trustee Collection Account the amount necessary for the Indenture Trustee
to make the required distributions pursuant to Section 3.05(a) and (b) of the
Indenture. Such requirement respecting deposits into the Trustee Collection
Account is exclusive. In the event that any amount not required to be deposited
into the Trustee Collection Account is so deposited, the Master Servicer may at
any time direct the Indenture Trustee to withdraw such amount from the Trustee
Collection Account and deliver it to or at the direction of Master Servicer, any
provision herein to the contrary notwithstanding.

         The Indenture Trustee may, but need not, invest funds in the Trustee
Collection Account, and if such funds are invested, they shall be invested only
in Permitted Investments. No Permitted Investment may be sold or disposed of at
a gain prior to maturity, unless the Indenture Trustee shall have obtained an
Opinion of Counsel at the Indenture Trustee's expense addressed to the Indenture
Trustee and, so long as any Group I Notes are Outstanding, the Enhancer that
such sale or disposition will not cause the Trust to be to be treated as an
association (or a publicly-traded partnership) taxable as a corporation for
federal income tax purposes. All net income shall be for the account of the
Indenture Trustee and the Depositor, as mutually agreed by those parties. The
amount of any losses incurred in respect therewith shall be deposited into the
Trustee Collection Account by the Indenture Trustee and/or the Depositor out of
their own funds immediately as incurred.

         On the Closing Date the Depositor shall remit to the Indenture Trustee
for deposit in the Trustee Collection Account, or a subaccount of the Trustee
Collection Account created by the Indenture Trustee, an amount equal to
$1,586,040.41 representing the excess of the aggregate initial Note Balance of
the Offered Notes over the aggregate Principal Balance of the Mortgage Loans as
of the Cut-Off Date. The amount deposited shall be paid on the first Payment
Date as principal to the Holders of the Offered Notes entitled to receive
principal on such Payment Date. All net income on such deposit from the Closing
Date up to and not including the first Payment

                                       29
<PAGE>

Date shall be for the account of the Depositor. In addition to such net income,
the Depositor shall also be entitled to the payment of a fee equal to 0.03% per
annum of the aggregate Principal Balance of the Mortgage Loans pursuant to
Section 3.05(a)(i) and 3.05(b)(i) of the Indenture as compensation to it for
providing administrative services to the Trust.

                                   ARTICLE VI

                               THE MASTER SERVICER

         Section 6.01. Liability of the Master Servicer. The Master Servicer
shall be liable in accordance herewith only to the extent of the obligations
specifically imposed upon and undertaken by it hereunder.

         Section 6.02. Merger or Consolidation or Assumption of the Obligations
of the Master Servicer. Any Person into which the Master Servicer may be merged
or consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer, shall be an established
mortgage loan servicing institution reasonably acceptable to the Enhancer that
has a net worth of at least $15,000,000 (the "Merger Criteria"), and in all
events shall be the successor of the Master Servicer, without the execution or
filing of any paper or any further action on the part of any of the parties
hereto, anything herein to the contrary notwithstanding. The Master Servicer
shall send advance notice of any such proposed merger or consolidation to the
Enhancer. If the Enhancer has not objected in writing to such proposed merger or
consolidation within 30 days of the receipt of such notice, the Enhancer shall
be conclusively deemed to have accepted the successor. The Master Servicer shall
send timely notice of any such merger or consolidation to the Indenture Trustee
and the Enhancer. Notwithstanding the foregoing, the Merger Criteria shall not
be applicable and no notice shall be sent to the Enhancer if the Policy is no
longer in effect and no amounts are owed to the Enhancer under the Insurance
Agreement.

         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 qualified to service the Mortgage
Loans, shall be reasonably satisfactory to the Issuer and the Enhancer; and the
Indenture Trustee, as pledgee of the Mortgage Loans, shall be willing to service
the Mortgage Loans and shall execute and deliver to the Indenture Trustee and
the Issuer (with a copy to the Enhancer) an agreement, in form and substance
reasonably satisfactory to the Indenture Trustee, the Issuer and the Enhancer,
containing an assumption by such Person of the due and punctual performance and
observance of each covenant and condition to be performed or observed by the
Master Servicer under this Agreement; and provided further, that no Rating
Agency, after notice thereto, shall have notified the Indenture Trustee in
writing that such assignment and delegation would result in a Rating Event, if
determined without regard to the Policy; and provided further, that the Owner
Trustee and, in the case of the Mortgage Loans in Group I only, the Enhancer
shall have received an Opinion of Counsel to the effect that such assignment or
delegation would not cause the Trust to be treated as an association (or a
publicly-traded partnership) taxable as a corporation for federal income tax
purposes.

         Section 6.03. Limitation on Liability of the Master Servicer and
Others. Neither the Master Servicer nor any of its directors, officers,
employees or agents shall be under any liability

                                       30
<PAGE>

to the Issuer, the Owner Trustee, the Indenture Trustee or the Securityholders
for any action taken or for refraining from the taking of any action in good
faith pursuant to this Agreement; provided, that this provision shall not
protect the Master Servicer or any such Person against any liability that would
otherwise be imposed on it by reason of its willful misfeasance, bad faith or
gross negligence in the performance of its duties hereunder or by reason of its
reckless disregard thereof. The Master Servicer and any director, officer,
employee or agent thereof 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 Master Servicer and any director, officer, employee or
agent thereof shall be indemnified by the Issuer and held harmless against any
loss, liability or expense incurred in connection with any Proceeding relating
to this Agreement or the Securities, including any amount paid to the Indenture
Trustee pursuant to Section 6.06(b), other than any loss, liability or expense
incurred by reason of its willful misfeasance, bad faith or gross negligence in
the performance of its duties hereunder or by reason of its reckless disregard
thereof. The Master Servicer shall be under no obligation to appear in,
prosecute or defend any legal action not incidental to its duties to service the
Mortgage Loans in accordance with this Agreement, and that in its opinion may
involve it in any expense or liability; provided, that the Master Servicer may
in its sole discretion undertake any action that it may deem necessary or
desirable in respect of this Agreement, the rights and duties of the parties
hereto and the interests of the Securityholders and, in the case of the Mortgage
Loans in Group I only, the Enhancer. In such event, the reasonable legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Issuer, and the Master Servicer shall be
entitled to reimbursement therefor pursuant to Section 3.05(a)(x) with respect
to Group I and pursuant to Section 3.05(b)(xiv) with respect to Group II. The
Master Servicer's right to indemnity or reimbursement pursuant to this Section
shall survive any resignation or termination of the Master Servicer pursuant to
Section 6.04 or Article VII in respect to any losses, expenses, costs or
liabilities arising prior to such resignation or termination or from events that
occurred prior to such resignation or termination.

         Section 6.04. Master Servicer Not to Resign. Subject to the provisions
of Section 6.02, the Master Servicer shall not assign this Agreement or resign
from the obligations and duties hereby imposed upon it except (a) upon a
determination that the performance of its obligations or duties hereunder are no
longer permissible under applicable law or are in material conflict by reason of
applicable law with other activities carried on by it or any Affiliate thereof,
the other activities of the Master Servicer so causing such a conflict being of
a type and nature carried on by the Master Servicer or such Affiliate at the
date of this Agreement or (b) upon the satisfaction of the following conditions:
(i) the Master Servicer shall have proposed a successor master servicer to the
Issuer, the Indenture Trustee and, in the case of the Mortgage Loans in Group I,
the Enhancer in writing, and such proposed successor master servicer shall be
reasonably acceptable to the Issuer, the Indenture Trustee and the Enhancer; and
(ii) each Rating Agency, after prior notice thereto, shall have delivered a
letter to the Issuer, the Indenture Trustee and the Enhancer prior to the
appointment of such proposed successor master servicer stating that such
proposed appointment would not result in a Rating Event, if determined without
regard to the Policy; provided, that no such resignation by the Master Servicer
shall become effective until such successor master servicer shall have assumed
the Master Servicer's responsibilities and obligations hereunder or the
Indenture Trustee shall have designated a successor master servicer in
accordance with Section 7.02. An Opinion of Counsel delivered to the Issuer, the
Indenture

                                       31
<PAGE>

Trustee and the Enhancer and shall be required in connection with any
such determination permitting the resignation of the Master Servicer.

         Section 6.05. Delegation of Duties. In the ordinary course of its
business, the Master Servicer may at any time delegate any of its duties
hereunder to any Person (including any Affiliate of the Master Servicer), that
agrees to conduct such duties in accordance with standards comparable to those
applicable to the Master Servicer hereunder. Such delegation shall not relieve
the Master Servicer of liability or responsibility with respect to such duties,
and shall not constitute a resignation of the Master Servicer pursuant to
Section 6.04.

         Section 6.06. Indenture Trustee Fees and Expenses; Indemnification.

         (a)   After the Closing Date, the Indenture Trustee and any co-trustee
from time to time shall be entitled to compensation in an amount equal to net
investment earnings on amounts on deposit in the Trustee Collection Account as
specified in Section 5.03, which compensation 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 created
under the Indenture and in the exercise and performance of any of the powers and
duties under the Indenture of the Indenture Trustee and any such co-trustee. In
the case of the collections on the Mortgage Loans in Group II, the Indenture
Trustee and any such co-trustee shall be entitled to payment or reimbursement in
accordance with the Indenture from amounts on deposit in the Collection Account
with respect to the Mortgage Loans in Group II, upon request therefrom for all
reasonable expenses, disbursements and advances incurred or made by the
Indenture Trustee or any such co-trustee, respectively, in accordance with any
of the provisions of this Agreement or the other Basic Documents, except any
such expenses, disbursements or advances as may arise from the negligence,
willful misfeasance or bad faith of the Indenture Trustee or such co-trustee, as
the case may be. The Indenture Trustee shall be entitled to be reimbursed by the
Master Servicer (or, if the Master Servicer is unable to fulfill such
obligation, in accordance with Section 3.05(a)(x) and 3.05(b), as applicable, of
the Indenture) for all costs associated with the transfer of servicing from the
Master Servicer to the Indenture Trustee, including without limitation, any
costs or expenses associated with the complete transfer of all servicing data
and the completion, correction or manipulation of such servicing data as may be
required by the Indenture Trustee to correct any errors or insufficiencies in
the servicing data or otherwise to enable the Indenture Trustee to service the
Mortgage Loans properly and effectively. If the Indenture Trustee or an
Affiliate thereof becomes the successor Master Servicer, any custody fees and
expenses shall also be paid pursuant to Section 3.05(a)(x) and 3.05(b), as
applicable, of the Indenture.

         (b)   The Indenture Trustee shall be indemnified and held harmless by
the Master Servicer for any loss, liability or expense incurred without
negligence, bad faith or willful misconduct on the part of the Indenture
Trustee, arising out of or in connection with the performance of its duties
under the Basic Documents (but not with respect to the performance of any of its
duties under the Administration Agreement), including the costs and expenses
(including reasonable attorneys' fees and expenses) of defending the Indenture
Trustee against any claim in connection with the exercise or performance of any
of its powers or duties under any Basic Document; provided, that:

                                       32
<PAGE>

               (i)    with respect to any such claim, the Indenture Trustee
         shall have given the Master Servicer written notice thereof promptly
         after the Indenture Trustee shall have actual knowledge thereof;

               (ii)   while maintaining control over its own defense, the
         Indenture Trustee shall cooperate and consult fully with the Master
         Servicer in preparing such defense; and

               (iii)  notwithstanding anything herein to the contrary, the
         Master Servicer shall not be liable for the settlement of any claim by
         the Indenture Trustee entered into without the prior written consent of
         the Master Servicer.

         No termination of this Agreement shall affect the obligations created
by this Section of the Master Servicer to indemnify the Indenture Trustee under
the conditions and to the extent set forth herein.

         Notwithstanding the foregoing, the indemnification provided pursuant to
this paragraph shall not pertain to any loss, liability or expense of the
Indenture Trustee, including the costs and expenses of defending itself against
any claim, incurred in connection with (i) any actions taken by the Indenture
Trustee at the direction of the Securityholders and, in the case of the Mortgage
Loans assigned to Group I, the Enhancer pursuant to the terms of the Basic
Documents unless consented to by the Master Servicer (whose consent shall not be
unreasonably withheld) or (ii) any actions taken by the Indenture Trustee in its
capacity as administrator under the Administration Agreement.

         Section 6.07. Indemnification of Owner Trustee by Master Servicer. The
Owner Trustee and its successors, assigns, agents and servants (collectively the
"Indemnified Parties") shall be indemnified, defended and held harmless by the
Master Servicer for any liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and
disbursements (including reasonable attorney's fees and expenses) of any kind
and nature whatsoever (collectively, "Expenses") that may at any time be imposed
on, incurred by, or asserted against the Owner Trustee or any Indemnified Party
in any way relating to or arising out of the Basic Documents, the Trust Estate
or the administration of the Trust Estate or the action or inaction of the Owner
Trustee, provided that:

         (a)   The Master Servicer shall not be liable for or required to
indemnify an Indemnified Party from and against Expenses arising or resulting
from the Owner Trustee's negligence with respect to the handling of funds, or
gross negligence with respect to any other acts, willful misconduct or bad
faith, or as a result of any inaccuracy of an express representation or warranty
contained in Section 6.03 of the Trust Agreement;

         (b)   With respect to any such claim, the Indemnified Party shall have
given the Master Servicer written notice thereof promptly after the Indemnified
Party shall have actual knowledge thereof;

         (c)   While maintaining control over its own defense, the Indemnified
Party shall cooperate and consult fully with the Master Servicer in preparing
such defense;

                                       33
<PAGE>

         (d)   Notwithstanding anything to the contrary, the Master Servicer
shall not be liable for the settlement of any claim by an Indemnified Party
entered into without the prior written consent of the Master Servicer.

         No termination of this Agreement shall affect the obligation created by
this Section of the Master Servicer to indemnify the Owner Trustee and the
Indemnified Parties under the conditions and to the extent set forth herein.

                                  ARTICLE VII

                                     DEFAULT

         Section 7.01. Default. If any one of the following events (each, a
"Servicing Default") shall occur and be continuing:

         (a)   any failure by the Master Servicer to deposit into any Collection
Account or the Trustee Collection Account any deposit required to be made under
the terms of this Agreement that continues unremedied for a period of five (5)
Business Days after the date upon which written notice of such failure shall
have been given to the Master Servicer by the Issuer or the Indenture Trustee,
or to the Master Servicer, the Issuer and the Indenture Trustee by the Enhancer
if such default relates to the Mortgage Loans assigned to Group I;

         (b)   any failure on the part of the Master Servicer to duly observe or
perform in any material respect any other covenants or agreements of the Master
Servicer set forth in this Agreement, which failure materially and adversely
affects the interests of any Securityholder, and which failure continues
unremedied for a period of 45 days 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 Issuer or the Indenture Trustee, or to the Master
Servicer, the Issuer and the Indenture Trustee by the Enhancer if such default
relates to the Mortgage Loans assigned to Group I;

         (c)   solely with respect to the Mortgage Loans in Group I, the Group I
Rolling Twelve-Month Liquidation Loss Amount Percentage exceeds 1.50%;

         (d)   solely with respect to the Mortgage Loans in Group I, the Group I
Rolling Three-Month Average Delinquency Rate exceeds 6.00%;

         (e)   solely with respect to the Mortgage Loans in Group I, the Group I
Cumulative Liquidation Loss Amount Percentage exceeds the percentages set forth
below during the specified periods:

                                       34
<PAGE>

                     MONTHS AFTER
                     CLOSING DATE              PERCENTAGES

                       1 - 36                     2.50%

                       37 - 48                    3.35%

                       49 - 60                    4.00%

                  61 and thereafter               4.50%

         (f)   solely with respect to the Mortgage Loans in Group I, the
Enhancer shall notify the Indenture Trustee of an Insurance Agreement Event of
Default (as that term is defined in the Insurance Agreement) affecting the
Master Servicer and the Mortgage Loans assigned to Group I;

         then, in the case of paragraphs (a) or (b), the Master Servicer shall
immediately notify the Indenture Trustee and the Owner Trustee in writing
thereof and, for so long as such Servicing Default shall not have been remedied
by the Master Servicer, then the Issuer or the Indenture Trustee may, with the
written consent of the Enhancer in the case of the Group I Mortgage Loans, by
notice then given in writing to the Master Servicer, terminate all rights and
obligations of the Master Servicer hereunder, other than the Master Servicer's
right to receive servicing compensation and reimbursement of expenses hereunder
during any period prior to the date of such termination, and the Indenture
Trustee, the Owner Trustee or the Issuer may exercise any and all other remedies
available at law or in equity; and further, in the case of paragraphs (c), (d),
(e) and (f), the Enhancer shall immediately notify the Master Servicer and the
Indenture Trustee in writing thereof and then the Enhancer may direct the Master
Servicer to remove the current Subservicer of the Mortgage Loans assigned to
Group I and replace it with a successor Subservicer that is not an Affiliate of
the Master Servicer. Any such notice to the Master Servicer and the Indenture
Trustee shall also be given to each Rating Agency, the Issuer and the Enhancer.
Subject to Section 7.02, on or after receipt by the Master Servicer of such
written notice in the case of paragraphs (a) or (b), all authority and power of
the Master Servicer under this Agreement shall pass to and be vested in the
Indenture Trustee as pledgee of the Mortgage Loans pursuant to this Section.
Without limitation, the Indenture 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 or other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination under paragraphs (a) or (b), whether to complete the
transfer and endorsement of each Mortgage Loan or the related Mortgage Documents
or Related Documents, or otherwise. The Master Servicer agrees to cooperate
fully with the Owner Trustee, the Indenture Trustee and the Enhancer, as the
case may be, in effecting the termination under paragraphs (a) or (b) of the
rights and responsibilities of the Master Servicer hereunder, including the
transfer to the Indenture Trustee (or other applicable successor) for the
administration by it of all cash relating to the Mortgage Loans that shall at
the time be held by the Master Servicer for deposit into the Collection Account,
or that have been thereafter received by the Master Servicer with respect to the
Mortgage Loans. All reasonable costs and expenses (including attorneys' fees)
incurred in

                                       35
<PAGE>

connection with amending this Agreement to reflect such succession as Master
Servicer pursuant to this Section shall be paid by the predecessor Master
Servicer (or if the predecessor Master Servicer is the Indenture Trustee, the
initial Master Servicer and, in any event, if the initial Master Servicer cannot
pay any such amount, in accordance with Section 3.05 of the Indenture) upon
presentation of reasonable documentation of such costs and expenses.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a payment on a Mortgage Loan that was due prior to the notice
terminating the Master Servicer's rights and obligations hereunder and received
after such notice, that portion thereof to which the Master Servicer would have
been entitled hereunder, its Servicing Fee in respect thereof and any other
amounts payable to the Master Servicer hereunder the entitlement to which arose
prior to such termination.

         Notwithstanding the foregoing, a delay in or failure of performance
under paragraph (a) or (b) above, after the expiration of the applicable grace
periods, shall not constitute a Servicing Default if such delay or failure could
not have been prevented by the exercise of reasonable diligence by the Master
Servicer and such delay or failure was caused by an Act of God, any act of the
public enemy, declared or undeclared war, public disorder, rebellion or
sabotage, or epidemic, landslide, lightning, fire, hurricane, earthquake or
flood. The preceding sentence shall not relieve the Master Servicer from using
reasonable efforts to perform its obligations hereunder in a timely manner in
accordance with the terms hereof, and the Master Servicer shall provide the
Owner Trustee, the Indenture Trustee, the Enhancer and the Securityholders with
notice of such failure or delay by it, together with a description of its
efforts to so perform its obligations.

         Section 7.02. Indenture Trustee to Act; Appointment of Successor.

         (a)   Within 90 days after the date the Master Servicer and the
Indenture Trustee receive a notice of termination of the Master Servicer
pursuant to Section 7.01 or sends a resignation notice pursuant to Section 6.04,
the Indenture Trustee, as pledgee of the Mortgage Loans, shall be the successor
in all respects to the Master Servicer in its capacity as Master Servicer
hereunder and with respect to the transactions set forth herein, and shall be
subject to all responsibilities, duties and liabilities relating thereto placed
on the Master Servicer by the terms hereof. Nothing in any Basic Document shall
be construed to permit or require the Indenture Trustee to (i) be responsible or
accountable for any act or omission of any prior Master Servicer prior to the
issuance of the related notice of termination hereunder, (ii) in its capacity as
successor Master Servicer, purchase, repurchase or substitute any Mortgage Loan
or fund any Additional Balances with respect thereto, (iii) fund any losses on
any Permitted Investment directed by any prior Master Servicer hereunder or (iv)
be responsible for the representations or warranties of any such prior Master
Servicer. As compensation therefor, the Indenture Trustee shall be entitled to
such compensation as the Master Servicer would have been entitled to hereunder
if no such notice of termination had been given. If the Indenture Trustee is (i)
unwilling to act as successor Master Servicer or (ii) legally unable so to act,
then the Indenture Trustee may appoint, or may petition a court of competent
jurisdiction to appoint any established mortgage loan servicing institution
having a net worth of not less than $10,000,000 as the successor to the Master
Servicer hereunder with respect to all or any part of the Master Servicer's
responsibilities, duties or liabilities hereunder; provided, that such successor
Master

                                       36
<PAGE>

Servicer shall be acceptable to the Enhancer, as evidenced by the Enhancer's
prior written consent, which consent shall not be unreasonably withheld; and
provided further, that no Rating Agency, after prior notice thereto, shall have
notified the Indenture Trustee in writing that the appointment of such successor
Master Servicer would result in a Rating Event, if determined without regard to
the Policy. Notwithstanding the foregoing, pending the appointment of a
successor Master Servicer hereunder, unless the Indenture Trustee is prohibited
by law from so acting, the Indenture Trustee shall act in such capacity as
provided above. In connection with such appointment and assumption, the
successor shall be entitled to receive compensation out of payments on Mortgage
Loans in an amount equal to the compensation that the Master Servicer would
otherwise have received pursuant to Section 3.10 (or such lesser compensation as
the Indenture Trustee and such successor shall agree). The appointment of a
successor Master Servicer shall not affect any liability of the predecessor
Master Servicer that may have arisen under this Agreement prior to its
termination as Master Servicer, nor shall any successor Master Servicer be
liable for any acts or omissions of any predecessor Master Servicer or for any
breach by such Master Servicer of any of its representations or warranties
contained herein or in any other Basic Document. The Indenture Trustee and such
successor Master Servicer shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession.

         (b)   Any successor Master Servicer, including the Indenture Trustee
shall not be deemed to be in default or to have breached its duties hereunder if
the predecessor Master Servicer shall fail to make any required deposit into the
Collection Account or otherwise cooperate with any required servicing transfer
or succession hereunder.

         Section 7.03. Notification to Securityholders. Upon any termination of
or appointment of a successor Master Servicer hereunder, the Indenture Trustee
shall give prompt written notice thereof to the Issuer, the Indenture Trustee,
the Enhancer and each Rating Agency.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

         Section 8.01. Amendment. This Agreement may be amended from time to
time by the parties hereto (i) to cure any ambiguity, correct or supplement any
provision of this Agreement that may be inconsistent with any other provision of
this Agreement, add any provision that provides additional rights to the
Certificateholders or Noteholders or ensure that the Trust is not classified as
an association (or a publicly traded partnership) taxable as a corporation for
federal income tax purposes; provided, that (A) (i) such amendment will not, in
the good faith judgment of the parties thereto, materially and adversely affect
the interest of any Certificateholder, Noteholder or, in the case of the Group I
Notes, the Enhancer and (ii) an Opinion of Counsel is delivered to the Indenture
Trustee and, in the case of the Group I Notes, the Enhancer to the effect that
such amendment will not materially and adversely affect the interest of any
Certificateholder, Noteholder or, in the case of the Group I Notes, the Enhancer
or (B) to the extent affected thereby, with the consent of the Holders of Notes
evidencing not less than a majority of the Note Balance of the Notes and, to the
extent affected thereby, the consent of the Holders of Certificates evidencing
not less than a majority of the Percentage Interests of the Certificates for the
purpose of adding any provisions to or changing in any manner or eliminating

                                       37
<PAGE>

any of the provisions of this Agreement or of modifying in any manner the rights
of the Noteholders or the Certificateholders; provided that no such amendment
shall (a) increase or reduce in any manner the amount of, or accelerate or delay
the timing of, collections of payments on Mortgage Loans or distributions that
shall be required to be made for the benefit of the Noteholders or the
Certificateholders or (b) reduce the aforesaid percentage of the Note Balance of
the Notes and the Percentage Interests of the Certificates required to consent
to any such amendment, without the consent of the Holders of all the outstanding
Notes and Holders of all outstanding Certificates; and provided further, that
the Enhancer and the Indenture Trustee shall consent thereto.

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

         Section 8.02. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT CONSIDERATION OF THE
CHOICE OF LAW PRINCIPLES THEREOF, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 8.03. Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered or mailed by certified mail, return receipt requested or by
facsimile, (a) if to the Depositor, to 383 Madison Avenue, 10th Floor, New York,
New York 10179, Attention: Asset Backed Securities Group; (b) if to the Master
Servicer, to 500 Washington Street, Columbus, Indiana 47201, Attention: Ellen
Mufson, Esq. and Gloria Curry (with a copy to Edwin Corbin, Mary Rottman and
Gary Iorfido, Esq. 12677 Alcosta Blvd., Suite 500, San Ramon, California 94583);
(c) if to Moody's, to 99 Church Street, 4th Floor, New York, New York 10001,
Attention: Home Mortgage Loan Monitoring Group; (d) if to Standard & Poor's, to
55 Water Street, New York, New York 10041, Attention: Residential Mortgage
Surveillance Group and Structured Finance Residential Department; (e) if to the
Owner Trustee, to Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890-0001, Attention: Irwin Whole Loan Home Equity Trust 2002-A (with
a copy to each Rating Agency); (f) if to the Issuer, to c/o Wilmington Trust
Company, as Owner Trustee, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Irwin Whole Loan Home Equity Trust
2002-A; (g) if to the Indenture Trustee, to Wells Fargo Bank Minnesota, N.A.,
9062 Old Annapolis Road, Columbia, Maryland 21045 (with a copy to the Indenture
Trustee at Wells Fargo Bank Minnesota, N.A., Attn.: Corporate Trust, Sixth and
Marquette, Minneapolis, Minnesota 55479); (h) if to the Enhancer, 113 King
Street, Armonk, New York 10504; Attention: Insured Portfolio Management -
Structured Finance (Irwin Whole Loan Home Equity Trust 2002-A); and (i) as to
each of the foregoing

                                       38
<PAGE>

Persons, at such other address or facsimile numbers as shall be designated by
such Person in a written notice to the other foregoing Persons.

         Section 8.04. 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 Securities
or the rights of the Securityholders.

         Section 8.05. Third-Party Beneficiaries. This Agreement shall inure to
the benefit of and be binding upon the parties hereto, the Securityholders, the
Enhancer, the Owner Trustee, and their respective successors and permitted
assigns. Except as otherwise provided herein, no other Person shall have any
right or obligation hereunder.

         Section 8.06. Counterparts. This instrument may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of which shall together constitute but one and the same
instrument.

         Section 8.07. Effect of Headings and Table of Contents. The Article and
Section headings herein and in the Table of Contents are for convenience of
reference only and shall not affect the construction hereof.

         Section 8.08. Termination; Clean-Up Call.

         (a)   The respective obligations and responsibilities of the parties
hereto shall terminate upon the last action required to be taken by the Issuer
pursuant to the Trust Agreement and by the Indenture Trustee pursuant to the
Indenture, following the earlier of (i) the date on or before which the
Indenture or the Trust Agreement is terminated; or (ii) the purchase by the
Depositor or the Master Servicer of all Mortgage Loans assigned to the final
outstanding Group pursuant to paragraph (b) below.

         (b)   Subject to the provisions of paragraphs (d) and (e) below,
Depositor, or if the Depositor declines the Master Servicer with the permission
of the Depositor, shall have the right to purchase the Mortgage Loans assigned
to each Group and the related portion of the Trust Estate on any date on which
the aggregate Principal Balance of the Mortgage Loans in such Group is less than
10% of the Initial Aggregate Principal Balance of such Group, at a price equal
to the lesser of (i) 100% of the aggregate unpaid Principal Balance of all such
remaining Mortgage Loans, plus accrued and unpaid interest thereon at the
weighted average of the Mortgage Interest Rates thereon up to the date preceding
the Payment Date on which such amounts are to be distributed to the
Securityholders (and any unpaid Servicing Fee shall be deemed to have been paid
at such time) and (ii) the fair market value of all such remaining Mortgage
Loans.

         (c)   Notwithstanding the provisions in paragraph (b) above, the
Depositor or the Master Servicer, as applicable, may not exercise the option in
paragraph (b) above unless the purchase price for the Mortgage Loans assigned to
a Group equals or exceeds the sum of (i) all accrued and unpaid interest
(including any Interest Carry-Forward Amounts) on the related Class

                                       39
<PAGE>

or Classes of Notes, (ii) the outstanding Note Balances of the related Class or
Classes of Notes, including the adjusted issue prices payable pursuant to the
immediately following two sentences, (iii) any unpaid amounts owed to the
Indenture Trustee, the Owner Trustee and the Administrator with respect to such
Group and (iv) in the case of the purchase of Mortgage Loans in Group I, all
amounts due and owing the Enhancer under the Insurance Agreement with interest
thereon at the Late Payment Rate as specified in the Insurance Agreement. If the
Group II Notes are redeemed prior to the Payment Date in December 2004, the
Class IIA-IO Notes will be entitled to receive their adjusted issue price, which
will be equal to the present value of the remaining payments on the Class IIA-IO
Notes, using a discount rate equal to the discount rate reflected in the price
paid by the initial purchaser of the Class IIA-IO Notes on the Closing Date. If
the Group II Notes are redeemed on any Payment Date, the Class IIX-IO Notes will
be entitled to receive their adjusted issue price, which will be equal to the
present value of the expected remaining payments on the Class IIX-IO Notes,
using a prepayment assumption for the Mortgage Loans assigned to Group II equal
to 100% of the prepayment assumption set forth in the Prospectus Supplement, and
a discount rate equal to 9%. If the Depositor or the Master Servicer exercises
any such right, the Depositor or the Master Servicer, as applicable, shall
deposit the amount calculated above with the Indenture Trustee for distribution
to the Securityholders and, upon the receipt of such deposit, the Indenture
Trustee or the Custodian shall release the related Mortgage Files to the
Depositor or the Master Servicer, as applicable.

         (d)   The Master Servicer, at its expense, shall prepare and deliver to
the Indenture Trustee for execution at the time the Mortgage Loans are to be
released to the Depositor or the Master Servicer, appropriate documents
assigning each such Mortgage Loan from the Indenture Trustee or the Issuer to
the Depositor or the Master Servicer, as applicable.

         (e)   No purchase of the Mortgage Loans assigned to Group I pursuant to
paragraph (b) above may be made without the prior written consent of the
Enhancer if such purchase would result in a Draw on the Policy or there would be
insufficient funds to pay amounts then due and owing to the Enhancer under the
Insurance Agreement with interest thereon at the Late Payment Rate as specified
in the Insurance Agreement.

         Section 8.09. Certain Matters Affecting the Indenture Trustee. For all
purposes of this Agreement, in the performance of any of its duties or in the
exercise of any of its powers hereunder, the Indenture Trustee shall be subject
to and entitled to the benefits of Article VI of the Indenture.

         Section 8.10. Owner Trustee Not Liable for Mortgage Documents or
Related Documents. The Owner Trustee makes no representations as to the validity
or sufficiency of this Agreement, any Basic Document, the Securities (other than
the signature of the Owner Trustee on the Certificate), or any Mortgage Document
or Related Document. The Owner Trustee shall at no time have any responsibility
or liability with respect to the sufficiency of the Trust Estate or its ability
to generate the payments to be distributed to the Securityholders, including the
compliance by the Depositor or the Seller with any representation or warranty
made in any Basic Document or the accuracy of any such representation or
warranty, or any action of the Paying Agent, the Certificate Paying Agent, the
Certificate Registrar or the Indenture Trustee taken in the name of the Owner
Trustee.

                                       40
<PAGE>

         Section 8.11. Rights of the Enhancer. Except to the extent otherwise
provided in this Agreement, (i) the rights and benefits of the Enhancer in this
Agreement relate only to the Group I Notes and the Mortgage Loans assigned to
Group I and (ii) all provisions in this Agreement referring to the consent or
approval of the Enhancer or actions with respect to the Enhancer shall apply and
be implemented only to the extent that such consent, approval or actions affect
or concern the Group I Notes (or the Enhancer's obligations in respect thereof)
or the Mortgage Loans assigned to Group I. Notwithstanding any provision in this
Agreement to the contrary, all rights and benefits of the Enhancer in this
Agreement (including but not limited to consent rights, rights to notices and
rights with respect to opinions) shall terminate upon the later of (a) the
repayment in full of the Group I Notes and the payment to the Enhancer of any
unpaid amounts owed to it under the Insurance Agreement with interest thereon at
the Late Payment Rate as specified in the Insurance Agreement and (b) the
termination of all of the Enhancer's obligations under the Policy.

         Section 8.12. Limitation of Liability of Owner Trustee. Notwithstanding
anything contained herein to the contrary, this Agreement has been countersigned
by Wilmington Trust Company not in its individual capacity but solely in its
capacity as Owner Trustee, and in no event shall Wilmington Trust Company in its
individual capacity or any beneficial owner of the Issuer have any liability for
the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the
assets of the Issuer. For all purposes of this Agreement, in the performance of
any duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

         Section 8.13. Tax Treatment of Servicing Fee and Other Amounts. The
Master Servicer covenants and agrees that it and its Affiliates will treat all
compensation derived by it or any of its Affiliates under this Agreement,
including, without limitation, the Servicing Fee, late payment charges and other
receipts not required to be deposited into the Collection Account as specified
in Section 5.02 and net income from Permitted Investments of funds in the
Collection Account, as compensation for services for all federal, state and
local income tax purposes. In addition, the Master Servicer covenants and agrees
that it and its Affiliates will treat, for all federal, state and local income
tax purposes, all amounts not provided for in this Agreement that are to be paid
to it or any of its Affiliates in respect of its activities as Master Servicer
or that are determined directly or indirectly by reference to payments on the
Mortgage Loans as compensation for services.

                                      * * *

                                       41
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Issuer and
the Indenture Trustee have caused this Agreement to be duly executed by their
respective officers or representatives as of the date and year first above
written.

                       BEAR STEARNS ASSET BACKED SECURITIES, INC.

                       By:    /s/ JONATHAN LIEBERMAN
                              --------------------------------------------------
                              Name:     Jonathan Lieberman
                              Title:    Senior Managing Director

                       IRWIN UNION BANK AND TRUST
                         COMPANY, as Master Servicer

                       By:     /s/ EDWIN K. CORBIN
                               -------------------------------------------------
                               Name:   Edwin K. Corbin
                               Title:  Vice President-Business Development
                                       Home Equity Lending

                       IRWIN WHOLE LOAN HOME EQUITY
                         TRUST 2002-A,
                       as Issuer

                       By:    WILMINGTON TRUST COMPANY,
                              not in its individual capacity but solely as Owner
                              Trustee

                       By:    /s/ ANITA E. DALLAGO
                              --------------------------------------------------
                              Name:    Anita E. Dallago
                              Title:   Senior Financial Services Officer

                       WELLS FARGO BANK MINNESOTA NATIONAL
                       ASSOCIATION, not in its individual capacity but solely
                       as Indenture Trustee

                       By:     /s/ PETER A. GOBELL
                               -------------------------------------------------
                               Name:   Peter A. Gobell
                               Title:  Vice President

                                       42
<PAGE>

                                    EXHIBIT A

                 MORTGAGE LOAN PURCHASE AND SERVICING AGREEMENT

                                       1
<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                                       B-1
<PAGE>

                                    EXHIBIT C

                    REPRESENTATIONS AND WARRANTIES REGARDING
                            INDIVIDUAL MORTGAGE LOANS

                  Subsection 7.02.  Representations and Warranties Regarding
                                    Individual Mortgage Loans.

         The Seller hereby represents and warrants to the Depositor, with
respect to each Mortgage Loan, as of March 28, 2002 or such other date specified
herein (all capitalized terms used herein and not defined in this Exhibit C
shall have the meanings given to such terms in the Mortgage Loan Purchase and
Servicing Agreement):

               i.          The information set forth in the Mortgage Loan
         Schedule to the Mortgage Loan Purchase and Servicing Agreement is
         complete, true and correct in all material respects;

               ii.         99% of the Mortgage Loans by Stated Principal Balance
         have no payment which is greater than 29 days past due and the
         remainder of the Mortgage Loans have no payment which is greater than
         59 days past due. No Mortgage Loan has been dishonored. To the best of
         Seller's knowledge, there are no material defaults under the terms of
         the Mortgage Loan, except as set forth in this paragraph;

               iii.        To the best of Seller's knowledge, there is no valid
         offset, right of rescission, defense or counterclaim of any obligor
         under any Mortgage Note, Loan Agreement or Mortgage, including the
         obligation of the Mortgagor to pay the unpaid principal of or interest
         on such Mortgage Note or Loan Agreement, and any applicable right of
         rescission has expired, nor will the operation of any of the terms of
         such Mortgage Note, Loan Agreement or Mortgage, or the exercise of any
         right thereunder, render either the Mortgage Note, Loan Agreement or
         the Mortgage unenforceable, in whole or in part, or subject to any
         right of rescission, set-off, recoupment, counterclaim or defense,
         including, without limitation, the defense of usury, and no such right
         of rescission, set-off, recoupment, counterclaim or defense has been
         asserted with respect thereto. To the best of Seller's knowledge, no
         Mortgage Loan is subject to any pending bankruptcy, insolvency,
         reorganization or moratorium;

               iv.         Other than amounts that constitute Permitted Liens,
         to the best of Seller's knowledge, there are no mechanics' liens or
         similar liens or claims for work, labor or material affecting any
         Mortgaged Property which have been filed (and no rights are outstanding
         that under law could give rise to such liens), which are or may be a
         lien prior to, or equal with, the lien of such Mortgage;

               v.          To the best of Seller's knowledge, as of March 28,
         2002, there was and there currently is no material damage to any
         Mortgaged Property. To the best of Seller's knowledge, there is no
         proceeding pending or threatened for the total or partial condemnation
         of any of the Mortgaged Properties. The Seller has not received
         notification that any such proceedings are scheduled to commence at a
         future date.

                                      C-1
<PAGE>

               vi.         To the best of Seller's knowledge, each Mortgage is a
         valid, subsisting, enforceable and perfected first, second or third
         lien on the Mortgaged Property securing the related Mortgage Note or
         Loan Agreement, including all buildings on the Mortgaged Property and
         all installations and mechanical, electrical, plumbing, heating and air
         conditioning systems affixed to such buildings, and all additions,
         alterations and replacements made at any time with respect to the
         foregoing securing the Mortgage Note or Loan Agreement's original
         principal balance subject to principles of equity, bankruptcy,
         insolvency and other laws of general application affecting the rights
         of creditors. Each Mortgaged Property is owned by the Mortgagor in fee
         simple and is free and clear of all adverse claims, encumbrances and
         liens other than Permitted Liens having priority over the lien of the
         Mortgage. Any security agreement, chattel mortgage or equivalent
         document related to and delivered in connection with the Mortgage Loan
         establishes and creates a valid, subsisting enforceable, and perfected
         lien and security interest on the property described therein, and
         immediately prior to the sale of such Mortgage Loan to the Depositor
         pursuant to the Mortgage Loan Purchase and Servicing Agreement and the
         related Term Sheet, the Company had full right to sell and assign the
         same to the Depositor;

               vii.        Each Mortgage Loan complies with, and the Seller has
         complied with, applicable local, state and federal laws, regulations
         and other requirements including, without limitation, usury, equal
         credit opportunity, real estate settlement procedures, the Federal
         Truth-In-Lending Act and disclosure laws and consummation of the
         transactions contemplated hereby, including without limitation, the
         receipt of interest by the owner of such Mortgage Loan, will not
         involve the violation of any such laws, rules or regulations. Not more
         than 50% of the Mortgage Loans are classified as a "high cost" loan
         under Section 32 of the Home Ownership and Equity Protection Act of
         1994. Each Mortgage Loan is being (and has been) serviced in accordance
         with Accepted Servicing Practices and applicable state and federal
         laws, including, without limitation, the Federal Truth-In-Lending Act
         and other consumer protection laws, real estate settlement procedures,
         usury, equal credit opportunity and disclosure laws. Seller shall
         maintain in its possession, available for the Depositor's inspection,
         as appropriate, and shall deliver to the Depositor or its designee upon
         demand, evidence of compliance with all such requirements;

               viii.       Neither the Seller nor any prior holder of any
         Mortgage Loan has in any material manner impaired, waived, altered or
         modified the Mortgage, Mortgage Note or Loan Agreement (except that a
         Mortgage Loan may have been modified by a written instrument (a copy of
         which is in the Mortgage File and the terms of which are reflected on
         the Mortgage Loan Schedule to the Mortgage Loan Purchase and Servicing
         Agreement) which has been recorded, if necessary to protect the
         interests of the owner of such Mortgage Loan; satisfied, canceled,
         rescinded or subordinated such Mortgage in whole or in part; released
         the applicable Mortgaged Property in whole or in part from the lien of
         such Mortgage; or executed any instrument of cancellation, rescission
         or satisfaction with respect thereto. No instrument of release or
         waiver has been executed in connection with any Mortgage Loan, and no
         Mortgagor has been released, in whole or in part from its obligations
         in connection with a Mortgage Loan;

                                      C-2
<PAGE>

               ix.         A property profile, title search, limited coverage
         policy or title insurance policy was obtained with respect to each
         Mortgage Loan, to the extent consistent with the normal credit and
         underwriting policies of Seller.

               x.          To the best of Seller's knowledge, all of the
         improvements which were included for the purpose of determining the
         Appraised Value of the Mortgaged Property lie wholly within the
         boundaries and building restriction lines of such property (and wholly
         within the project with respect to a condominium unit), and no
         improvements on adjoining properties encroach upon the Mortgaged
         Property;

               xi.         To the best of Seller's knowledge, all parties that
         have had any interest in the Mortgage, whether as mortgagee, assignee,
         pledgee or otherwise, are (or, during the period in which they held and
         disposed of such interest, were) (A) in compliance with or exempt from
         any and all applicable licensing requirements of the laws of the state
         wherein the Mortgaged Property is located, and (B) (1) organized under
         the laws of such state, or (2) qualified to do business in such state,
         or (3) federal savings and loan associations or national banks having
         principal offices in such state, or (4) not doing business in such
         state;

               xii.        Each Mortgage Note or Loan Agreement and the
         applicable Mortgage are original and genuine, and each is the legal,
         valid and binding obligation of the maker thereof, enforceable in
         accordance with its terms, except as limited by bankruptcy, insolvency,
         reorganization, moratorium, receivership and other similar laws
         relating to creditors' rights generally or by equitable principles
         (regardless of whether such enforcement is considered in a proceeding
         in equity or at law) and the Seller has taken all action necessary to
         transfer such rights of enforceability to the Depositor. All parties to
         the Mortgage Note or Loan Agreement and the Mortgage had legal capacity
         to execute the Mortgage Note or Loan Agreement and the Mortgage and
         each Mortgage Note or Loan Agreement and Mortgage has been duly and
         properly executed by such parties;

               xiii.       Other than with respect to the undrawn portion of the
         HELOCs as of the March 21, 2002, the proceeds of the Mortgage Loan have
         been fully disbursed; there is no requirement for future advances
         thereunder and any and all requirements as to completion of any on-site
         or off-site improvements. All costs, fees and expenses incurred in
         making, closing or recording the Mortgage Loan were paid and the
         Mortgagor is not entitled to any refund of amounts paid or due under
         the Mortgage Note or Loan Agreement or Mortgage;

               xiv.        Each Mortgage contains customary and enforceable
         provisions that render the rights and remedies of the holder thereof
         adequate for the realization against the Mortgaged Property of the
         benefits of the security, including (i) in the case of a Mortgage
         designated as a deed of trust, by trustee's sale, and (ii) otherwise by
         judicial foreclosure or if applicable, non-judicial foreclosure. Upon
         default by a Mortgagor on a Mortgage Loan and foreclosure on, or
         trustee's sale of, the Mortgaged Property pursuant to the proper
         procedures, the holder of the Mortgage Loan will be able to deliver
         good and merchantable title to the property subject to any senior
         liens. There is no homestead or other exemption available to the
         Mortgagor which would interfere with such right to foreclose;

                                      C-3
<PAGE>

               xv.         With respect to each Mortgage constituting a deed of
         trust, either a trustee, duly qualified under applicable law to serve
         as such, has been properly designated and currently so serves and is
         named in such Mortgage or if no duly qualified trustee has been
         properly designated and so serves, the Mortgage contains satisfactory
         provisions for the appointment of such trustee by the holder of the
         Mortgage at no cost or expense to such holder, and no fees or expenses
         are or will become payable by the Depositor to the trustee under the
         deed of trust, except in connection with a trustee's sale after default
         by the Mortgagor;

               xvi.        There are no defaults by Seller in complying with the
         terms of the Mortgage, and to the best of Seller's knowledge all taxes,
         governmental assessments, water, sewer and municipal charges, leasehold
         payments or ground rents or other outstanding charges affecting the
         Mortgaged Property which previously became due and owing have been
         paid;

               xvii.       The Mortgage Note or Loan Agreement is not and has
         not been secured by any collateral, pledged account or other security
         other than the lien of the corresponding Mortgage and such collateral
         does not serve as security for any other obligation and no Mortgage
         Loan is secured by more than one Mortgaged Property;

               xviii.      There is no material default, breach or event of
         acceleration existing under the Mortgage or the applicable Mortgage
         Note or Loan Agreement; and no event which, with the passage of time or
         with notice and the expiration of any grace or cure period, would
         constitute a default, breach, violation or event of acceleration, and
         none of (i) the Seller and any of its affiliates (ii) any servicer or
         subservicer and (iii) any prior mortgagee, of any Mortgage Loan has
         waived any material default, breach or event of acceleration; no
         foreclosure action is threatened or has been commenced with respect to
         the Mortgage Loan;

               xix.        There is no obligation on the part of the Seller or
         any other party to make any payments with respect to the related
         Mortgage Loan in addition to the Monthly Payments required to be made
         by the applicable Mortgagor and except in the case of the undrawn
         portion of the HELOCs as of the March 21, 2002, the Mortgage Note or
         Loan Agreement with respect to any Mortgage Loan does not permit or
         obligate the Seller to make future advances to the Mortgagor at the
         option of the Mortgagor;

               xx.         The Seller has not advanced funds, or induced,
         solicited or knowingly received any advance of funds by a party other
         than the Mortgagor, directly or indirectly, for the payment of any
         amount required by the Mortgage Loan;

               xxi.        Reserved.

               xxii.       Each of the Mortgaged Properties consists of a single
         parcel of real property with a detached single-family residence erected
         thereon (including a manufactured dwelling deemed to be real estate
         under applicable state law), or a two- to four-family dwelling, or a
         townhouse, or an individual condominium unit in a condominium project,
         or an individual unit in a planned unit development. No Mortgaged
         Property consists of cooperative housing or stock in a cooperative
         housing corporation;

                                      C-4
<PAGE>

               xxiii.      None of the Mortgage Loans provide for deferred
         interest or negative amortization. No Mortgaged Property is a
         timeshare;

               xxiv.       The Mortgage Loan does not contain provisions
         pursuant to which Monthly Payments are paid or partially paid with
         funds deposited in any separate account established by the Seller, the
         Mortgagor or anyone on behalf of the Mortgagor, or paid by any source
         other than the Mortgagor. The Mortgage Loan is not a graduated payment
         Mortgage Loan;

               xxv.        Seller is the sole owner of record and is the holder
         of the Mortgage Loan and the indebtedness evidenced by the Mortgage
         Note or Loan Agreement. Upon the sale of the Mortgage Loan to the
         Depositor, the Seller will retain the Mortgage File or any part thereof
         with respect thereto not delivered to the Depositor or the Depositor's
         designee in trust only for the purpose of servicing and supervising the
         servicing of the Mortgage Loan. Upon the transfer and assignment to the
         Depositor, the Mortgage Loan, including the Mortgage Note or Loan
         Agreement and the Mortgage, was not subject to an assignment sale or
         pledge to any person other than Depositor and the Seller had good and
         marketable title to and was the sole owner thereof and had full right
         to transfer and sell the Mortgage Loan to the Depositor free and clear
         of any encumbrance, equity, lien, pledge, charge, claim or security
         interest and has the full right and authority subject to no interest or
         participation of, or agreement with, any other party, to sell and
         assign the Mortgage Loan pursuant to the Mortgage Loan Purchase and
         Servicing Agreement and following the sale of the Mortgage Loan, the
         Depositor will own such Mortgage Loan free and clear of any
         encumbrance, equity, participation interest, lien other than Permitted
         Liens, pledge, charge, claim or security interest. The Seller intends
         to relinquish all rights to possess, control and monitor the Mortgage
         Loan, except for the purposes of servicing the Mortgage Loan as set
         forth in the Mortgage Loan Purchase and Servicing Agreement. After
         March 28, 2002, the Seller will not have any right to modify or alter
         the terms of the sale of the Mortgage Loan and the Seller will not have
         any obligation or right to repurchase the Mortgage Loan or substitute
         another Mortgage Loan, except as provided in the Mortgage Loan Purchase
         and Servicing Agreement, or as otherwise agreed to by the Seller and
         the Depositor. The Seller acquired any right, title and interest in and
         to the Mortgage Loans in good faith and without notice of any adverse
         claim;

               xxvi.       Other than with respect to the HELOCs, all of the
         Mortgage Loans are fixed rate mortgage loans. Unless otherwise
         indicated on the Mortgage Loan Schedule to the Mortgage Loan Purchase
         and Servicing Agreement, other than with respect to the HELOCs, the
         Mortgage Note is payable in monthly installments of principal and
         interest, with interest calculated and payable in arrears, sufficient
         to amortize the Mortgage Loan fully by the stated maturity date, over
         an original term of not more than thirty years from origination. Each
         HELOC provides for an initial period (the "Revolving Period") during
         which the Mortgagor is required to make monthly payments of interest
         payable in arrears and requires repayment of the unpaid principal
         balance thereof over a period following the Revolving Period which is
         not in excess of 122 months. Except with respect to the HELOCs,
         principal payments on the Mortgage Loan commenced no more than sixty
         (60) days after the funds were disbursed in connection with the
         Mortgage Loan. All required notices of interest rate and payment amount
         adjustments have been sent to the Mortgagor

                                      C-5
<PAGE>

         on a timely basis and the computations of such adjustments were
         properly calculated. Installments of interest are subject to change due
         to the adjustments to the Mortgage Interest Rate of each interest rate
         adjustment, with interest calculated and payable in arrears. All
         Mortgage interest rate adjustments have been made in strict compliance
         with state and federal law and the terms of the related Note. Any
         interest paid has been properly credited pursuant to state and local
         law.

               xxvii.      The Mortgage contains a provision for the
         acceleration of the payment of the unpaid principal balance of the
         Mortgage Loan in the event that the Mortgaged Property is sold or
         transferred without the prior written consent of the mortgagee
         thereunder, at the option of the mortgagee and such provision is
         enforceable;

               xxviii.     Each of the Mortgage and the Assignment of Mortgage
         is in recordable form and is acceptable for recording under the laws of
         the jurisdiction in which the Mortgaged Property is located;

               xxix.       Except with respect to two Mortgage Loans, the
         Mortgagor has not notified the Seller, and the Seller has no knowledge
         of any relief requested or allowed to the Mortgagor under the Soldiers'
         and Sailors' Civil Relief Act of 1940;

               xxx.        To the best knowledge of Seller, there exists no
         violation of any local, state, or federal environmental law, rule or
         regulation with respect to the Mortgaged Property which violation has
         or could have a material adverse effect on the market value of such
         Mortgaged Property. The Seller has no knowledge of any pending action
         or proceeding directly involving the related Mortgaged Property in
         which compliance with any environmental law, rule or regulation is an
         issue; and nothing further remains to be done to satisfy in full all
         requirements of each such law, rule or regulation constituting a
         prerequisite to the use and enjoyment of such Mortgaged Property;

               xxxi.       For each Mortgage Loan, the related Mortgage File is
         complete and contains a true, accurate and correct copy of each of the
         documents and instruments specified to be included therein;

               xxxii.      Each Mortgage Note, each Loan Agreement, each
         Mortgage, each Assignment of Mortgage and any other documents required
         pursuant to the Mortgage Loan Purchase and Servicing Agreement to be
         delivered by the Seller hereunder has been delivered to the Depositor
         or its agent;

               xxxiii.     As of March 28, 2002, no more than 45% (by Stated
         Principal Balance) of the HELS and High LTV Mortgage Loans constitute
         "real estate mortgages" for the purposes of Treasury Regulation ss.
         301.7701(i)-1(d) under the Code. For this purpose a Mortgage Loan
         constitutes a "real estate mortgage" if it satisfies either test set
         out in paragraph (i) or paragraph (ii) below:

                           (i) The fair market value of the interest in real
               property securing the obligation was at least equal to 80 percent
               of the adjusted issue price of the obligation at the time the
               obligation was originated (or, if later, the time the obligation
               was significantly modified). For purposes of this paragraph, the
               fair

                                      C-6
<PAGE>

               market value of the real property interest must be first
               reduced by the amount of any lien on the real property interest
               that is senior to the obligation being tested, and must be
               further reduced by a proportionate amount of any lien that is in
               parity with the obligation being tested. The adjusted issue price
               of an obligation is its issue price plus the amount of accrued
               original issue discount, if any, as of the date of determination.

                           (ii) Substantially all of the proceeds of the
               obligation were used for one or more of the following purposes:
               (a) to acquire an interest in real property; (b) to improve an
               interest in real property; or (c) to protect an interest in real
               property, that, at the origination date, is the only security for
               the obligation. For this purpose only, substantially all of the
               proceeds of the obligations means two-thirds or more of the gross
               proceeds. For purposes of this paragraph, the use of the proceeds
               of the related Mortgage Loan to retire an existing lien against
               the related Mortgaged Property is considered use of the proceeds
               to protect an interest in real property;

               xxxiv.      The Seller used no selection procedures that
         identified the Mortgage Loans as being less desirable or valuable than
         other comparable mortgage loans in the Seller's portfolio; No
         statement, tape, diskette, form, report or other document furnished or
         to be furnished by Seller pursuant to the Mortgage Loan Purchase and
         Servicing Agreement or in connection with the transactions contemplated
         hereby contains or will contain any statement that is or will be
         inaccurate or misleading in any material respect or omits to state a
         material fact required to be stated therein or necessary to make the
         information and statements therein not misleading;

               xxxv.       No fraud, error, negligence, misrepresentation or
         material omission of fact with respect to a Mortgage Loan has taken
         place on the part of the Seller or the Mortgagor or any other party
         involved in the origination or servicing of the Mortgage Loan;

               xxxvi.      The Mortgagor has received and has executed, where
         applicable, prior to origination of the Mortgage Loan, all disclosure
         and rescission materials required by applicable law with respect to the
         making of the Mortgage Loan;

               xxxvii.     To the best of the Seller's knowledge, there has been
         no default on any senior mortgage loan relating to a Mortgaged Property
         that has not been cured by a person other than the Seller or an
         affiliate thereof;

               xxxviii.    No HEL or HELOC has a Combined Loan-to-Value Ratio in
         excess of 100%. No High LTV Mortgage Loan has a Combined Loan-to-Value
         Ratio in excess of 125%. "Combined Loan-to-Value Ratio" means, with
         respect to any Mortgage Loan, the ratio, expressed as a percentage, of
         the sum of (a)(i) with respect to HELs or High LTV Mortgage Loans, the
         original Principal Balance thereof or (ii) with respect to HELOCs, the
         credit limit of such HELOC at origination and (b) the outstanding
         principal balance at origination of such Mortgage Loan of all other
         mortgage loans, if any, secured by senior liens on the related
         Mortgaged Property, to the Appraised Value.

                                      C-7
<PAGE>

               xxxix.      The Seller has no knowledge of any circumstances or
         condition with respect to the Mortgage, the Mortgaged Property, the
         Mortgagor or the Mortgagor's credit standing that could reasonably be
         expected to cause investors to regard the Mortgage Loan as an
         unacceptable investment, cause such Mortgage Loan to become delinquent
         or adversely affect the value or the marketability of the Mortgage
         Loan. The Seller did not select the Mortgage Loans sold to Depositor
         based on any adverse selection of mortgage loans in its portfolio that
         met Depositor's purchase parameters for this transaction, including
         without limitation, the location or condition of the Mortgaged
         Property, payment pattern of the borrower or any other factor that may
         adversely affect the expected cost of foreclosing, owning or holding
         the Mortgage Loans or related Mortgaged Property or collecting the
         insurance or guarantee proceeds related thereto;

               xl.         Each Mortgage Loan was originated by or for the
         Seller pursuant to, and conforms with, the Seller's underwriting
         guidelines attached as Exhibit 9 to the Mortgage Loan Purchase and
         Servicing Agreement;

               xli.        No less than 60 percent by Stated Principal Balance
         of the Mortgage Loans have a prepayment penalty and at least 25 percent
         by Stated Principal Balance have a prepayment penalty for at least
         three years. With respect to each Mortgage Loan that has a prepayment
         penalty feature, each such prepayment penalty is enforceable and will
         be enforced by the Seller and each prepayment penalty is permitted
         pursuant to federal, state and local law. No Mortgage Loan will impose
         a prepayment penalty for a term in excess of five years from the date
         such Mortgage Loan was originated;

               xlii.       Each Mortgage Loan where the related Mortgage is in
         first lien position or where the balance at origination exceeded
         $100,000.00 is covered by a valid and transferable tax service contract
         with Transamerica Real Estate Tax Services, Inc. or such other vendor
         as may be reasonably acceptable to the Depositor, which may be assigned
         without the payment of any fee by the Depositor;

               xliii.      Not more than 0.5% of the Mortgage Loan by Stated
         Principal Balance were originated under a reduced documentation
         program;

               xliv.       The Mortgage Loans conform to the characteristics set
         forth in the Term Sheet; and

               xlv.        At least 70% of the Mortgage Loans by Stated
         Principal Balance in each of the Groups have conforming balances under
         Fannie Mae and Freddie Mac published underwriting guidelines.

                                      C-8
<PAGE>

                                    EXHIBIT D
                            LIMITED POWER OF ATTORNEY

KNOW ALL MEN BY THESE PREMISES:

         That Wells Fargo Bank Minnesota, National Association, as indenture
trustee (the "Indenture Trustee") under the indenture dated as of May 31, 2002
(the "Indenture"), between Irwin Whole Loan Home Equity Trust 2002-A and the
Indenture Trustee, a national banking association existing under the laws of the
United States of America and having its principal office located at Wells Fargo
Center, Sixth and Marquette, Minneapolis, Minnesota 55479, hath made,
constituted and appointed, and does by these presents make, constitute and
appoint Irwin Union Bank and Trust Company ("Irwin"), a bank organized and
existing under the laws of the State of Indiana, as Master Servicer under the
Sale and Servicing Agreement (defined below) and Irwin Home Equity Corporation,
an Indiana corporation, as initial subservicer thereunder, its true and lawful
attorney-in-fact, with full power and authority to sign, execute, acknowledge,
deliver, file for recordation and record any instrument on its behalf and to
perform such other act or acts as may be customarily and reasonably necessary
and appropriate to effectuate the following enumerated transactions in respect
of any of the Mortgage Loans or the related Mortgaged Properties, Mortgage
Documents or Related Documents, for which the undersigned is acting as Indenture
Trustee (whether the undersigned is named therein as mortgagee or beneficiary or
has become mortgagee by virtue of endorsement of related Mortgage Documents) and
for which Irwin is acting as Master Servicer pursuant to the sale and servicing
agreement dated as of May 31, 2002 (the "Sale and Servicing Agreement").
Capitalized terms used herein that are not otherwise defined shall have the
meanings ascribed thereto in Appendix A to the Indenture.

         This appointment shall apply to the following enumerated transactions
only:

1.       The modification or re-recording of a Mortgage Loan, where such
         modification or re-recording is for the purpose of correcting the
         Mortgage Loan to conform same to the original intent of the parties
         thereto or to correct title errors discovered after such title
         insurance was issued and such modification or re-recording, in either
         instance, does not adversely affect the Lien of the Mortgage Loan as
         insured.

2.       The subordination of the Lien of a Mortgage Loan to an easement in
         favor of a public utility company or a government agency or unit with
         powers of eminent domain; this paragraph shall include the execution of
         partial satisfactions/releases, partial reconveyances or the execution
         of requests to trustees to accomplish the same.

3.       With respect to a Mortgage Loan, the foreclosure, the taking of a deed
         in lieu of foreclosure, or the completion of judicial or non-judicial
         foreclosure or termination, cancellation or rescission of any such
         foreclosure, including any and all of the following acts:

         a.    the substitution of trustee(s) serving under a deed of trust, in
               accordance with state law and such deed of trust;

         b.    statements of breach or non-performance;

         c.    notices of default;

         d.    cancellations/rescissions of notices of default and/or notices
               of sale;

         e.    the taking of a deed in lieu of foreclosure; and

                                      D-1
<PAGE>

         f.    such other documents and actions as may be necessary under the
               terms of the Mortgage Loan or state law to expeditiously
               complete such transactions.

4.       The conveyance of mortgaged properties to a mortgage insurer, or the
         closing of the title to the property to be acquired as real estate
         owned, or conveyance of title to real estate owned.

5.       The completion of loan assumption agreements.

6.       The full satisfaction and/or release of a Mortgage Loan or full
         reconveyance upon payment and discharge of all sums secured thereby,
         including cancellation of any related Mortgage Documents.

7.       The assignment of any Mortgage Loan and the related Mortgage Documents
         in connection with the repurchase of such Mortgage Loan.

8.       The full assignment of a Mortgage Loan upon payment and discharge of
         all sums secured thereby in conjunction with the refinancing thereof
         including, without limitation, the endorsement of the related Mortgage
         Documents.

9.       The subordination of the Lien of a Mortgage Loan, where such
         subordination is in connection with any modification pursuant to
         Section 3.01(b) of the Sale and Servicing Agreement, and the execution
         of partial satisfactions or releases in connection with such Section.

10.      The modification or re-recording of a Mortgage Loan, where such
         modification or re-recording is for the purpose of any modification
         pursuant to Section 3.03 of the Sale and Servicing Agreement.

11.      Any other modification of the terms of a Mortgage Loan (including the
         Mortgage Interest Rate thereon) made in accordance with the Sale and
         Servicing Agreement.

         The undersigned gives such attorneys-in-fact full power and authority
to execute such instruments and to do and perform all and every act and thing
necessary and proper to carry into effect the power or powers granted by or
under this Limited Power of Attorney as fully as the undersigned might or could
do, and does hereby ratify and confirm to all that such attorneys-in-fact shall
lawfully do or cause to be done by authority hereof.

         Third parties without actual notice may rely upon the exercise of the
power granted under this Limited Power of Attorney, and may be satisfied that
this Limited Power of Attorney shall continue in full force and effect has not
been revoked unless an instrument of revocation shall have been made in writing
by the undersigned.

                                 WELLS FARGO BANK MINNESOTA,
                                 NATIONAL ASSOCIATION, not in its individual
                                 capacity but solely as Indenture Trustee
                                 By:
                                       -----------------------------------------
                                       Name:
                                       Title:

                                      D-2
<PAGE>

                                    EXHIBIT E

                        REQUEST FOR RELEASE OF DOCUMENTS

To:    Wells Fargo Bank Minnesota, N.A.
       1015 10th Avenue S.E.
       Minneapolis, MN 55414-0031
       Attn:  Inventory Control

       Re:     Sale and Servicing Agreement dated as of May 31, 2002, among Bear
               Stearns Asset Backed Securities, Inc., Irwin Union Bank and Trust
               Company, Irwin Whole Loan Home Equity Trust 2002-A and Wells
               Fargo Bank Minnesota, National Association
               -----------------------------------------------------------------

         In connection with the administration of the Mortgage Loans held by you
as Indenture Trustee pursuant to the above-captioned Agreement, we request the
release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage
Loan described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_____         1.    Mortgage Paid in Full

_____         2.    Foreclosure

_____         3.    Substitution

_____         4.    Other Liquidation (Repurchased, etc.)

_____         5.    Nonliquidation                 Reason:______________________

                                      E-1

<PAGE>

Address to which Indenture Trustee should
Deliver the Mortgage File: ____________________________

                           ____________________________

                           ____________________________

                                  By:
                                              ----------------------------------
                                                      (authorized signer)
                                  Issuer:
                                              ----------------------------------
                                  Address:
                                              ----------------------------------

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

Wells Fargo Bank Minnesota, National Association

Please acknowledge the execution of the above request by your signature and date
below:

------------------------------                          ---------------
Signature                                               Date

Documents returned to Indenture Trustee:

------------------------------                          ---------------
Indenture Trustee                                       Date

                                      E-2
<PAGE>

                                    EXHIBIT F

                 FORM OF INITIAL/FINAL CERTIFICATION OF TRUSTEE

Bear Stearns Asset Backed Securities, Inc.

Irwin Union Bank and Trust Company
Irwin Funding Corp., Inc.
500 Washington Street
Columbus, Indiana 47201

MBIA Insurance Corporation
113 King Street
Armonk, New York 10504
Attention:  Insured Portfolio Management Structured Finance
            (Irwin Whole Loan Home Equity Trust 2002-A)

Re:  IRWIN WHOLE LOAN HOME EQUITY TRUST 2002-A

         The undersigned, a duly authorized representative of Wells Fargo Bank
Minnesota, National Association, as Indenture Trustee (the "Indenture Trustee")
and pursuant to the Sale and Servicing Agreement dated May 31, 2002, between
Bear Stearns Asset Backed Securities, Inc. as Depositor of the Trust, Irwin
Union Bank and Trust Company as Master Servicer, the Irwin Whole Loan Home
Equity Trust 2002-A and Indenture Trustee, (hereinafter as such agreement may
have been, or may from time to time be, amended, supplemented or otherwise
modified, the "Sale and Servicing Agreement"), does hereby certify as follows:

                  A.   Capitalized terms used in this Certificate have their
respective meanings set forth in the Sale and Servicing Agreement. References
herein to certain subsections are references to the respective subsections of
the Sale and Servicing Agreement.

                  B.    This Certificate is being delivered pursuant to
                        Section 2.03.

                  C.    The Undersigned is a Responsible Officer.

                  D.    This Certificate is being delivered by the date
                        specified in Section 2.03

                  E.    [Pursuant to and in accordance with the limitations set
forth in Section 2.03, the Indenture Trustee hereby certifies and declares that,
with noted exceptions on attached schedule, (i) all documents required to be
delivered pursuant to Section 2.03 are in its possession, (ii) each such
document has been reviewed by it and has not been mutilated, damaged, torn, or
otherwise physically altered (handwritten additions, changes or corrections
shall not constitute physical alteration if initialed by the Mortgagor), appears
regular on its face and relates to such Mortgage Loan, and (iii) it has received
a Mortgage File containing the Mortgage and Mortgage Note or Loan Agreement, as
applicable, for each Mortgage Loan listed on the attached schedule.] [For each
120-day check-in -- in place of Paragraph E.] [Pursuant to and in accordance
with the

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limitations set forth in Section 2.03, the Indenture Trustee hereby
certifies and declares that, with the exceptions noted on the attached schedule,
that with respect to the Mortgage Documents relating to each Mortgage Loan
listed on the attached Mortgage Loan Schedule to the Sale and Servicing
Agreement, the following data elements on such Mortgage Documents are the same
as set forth on the Mortgage Loan Schedule to the Sale and Servicing Agreement
for such Mortgage Loan: (a) the Seller's loan number, (b) the Mortgagor's name,
(c) the address (including city and state) of the related Mortgaged Property,
(d) the original principal balance, and (e) the maturity of the related Mortgage
Note.]

         IN WITNESS WHEREOF, the Indenture Trustee has caused this Certificate
to be duly executed this _____ day of ___________, 20__.

                                      WELLS FARGO BANK MINNESOTA
                                      NATIONAL ASSOCIATION,
                                      as Indenture Trustee

                                      By:
                                            ------------------------------------
                                            Authorized Officer

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