Document:

EXHIBIT 4.3
                                                                  EXECUTION COPY

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                    GREENPOINT HOME EQUITY LOAN TRUST 2003-1

                    Class A Variable Rate Asset Backed Notes

                                    INDENTURE

                             Dated as of May 1, 2003

                              THE BANK OF NEW YORK
                                Indenture Trustee

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                                TABLE OF CONTENTS

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ARTICLE I Definitions and Incorporation by Reference..............................................................2

      SECTION 1.1.    Definitions.................................................................................2
      SECTION 1.2.    Incorporation by Reference of the Trust Indenture Act.......................................2
      SECTION 1.3.    Rules of Construction.......................................................................3
      SECTION 1.4.    Action by or Consent of Noteholders and Residual Certificateholders.........................3
      SECTION 1.5.    Conflict with TIA...........................................................................3

ARTICLE II The Notes..............................................................................................4

      SECTION 2.1.    Form........................................................................................4
      SECTION 2.2.    Execution, Authentication and Delivery......................................................4
      SECTION 2.3.    Registration; Registration of Transfer and Exchange.........................................4
      SECTION 2.4.    Mutilated, Destroyed, Lost or Stolen Notes..................................................6
      SECTION 2.5.    Persons Deemed Owners.......................................................................7
      SECTION 2.6.    Payment of Principal and Interest; Defaulted Interest.......................................7
      SECTION 2.7.    Cancellation................................................................................8
      SECTION 2.8.    Release of Collateral.......................................................................8
      SECTION 2.9.    Book-Entry Notes............................................................................8
      SECTION 2.10.   Notices to Clearing Agency..................................................................9
      SECTION 2.11.   Definitive Notes............................................................................9

ARTICLE III Covenants; Representations and Warranties of the Issuer..............................................10

      SECTION 3.1.    Payment of Principal and Interest..........................................................10
      SECTION 3.2.    Maintenance of Office or Agency............................................................10
      SECTION 3.3.    Money for Payments to be Held in Trust.....................................................10
      SECTION 3.4.    Existence..................................................................................11
      SECTION 3.5.    Protection of Trust Property...............................................................11
      SECTION 3.6.    Opinions as to Trust Property..............................................................12
      SECTION 3.7.    Performance of Obligations; Servicing of Mortgage Loans....................................13
      SECTION 3.8.    Negative Covenants.........................................................................14
      SECTION 3.9.    Annual Statement as to Compliance..........................................................14
      SECTION 3.10.   Issuer May Not Consolidate or Transfer Assets..............................................15
      SECTION 3.11.   No Other Business..........................................................................15
      SECTION 3.12.   No Borrowing...............................................................................15
      SECTION 3.13.   Servicer's Obligations.....................................................................15
      SECTION 3.14.   Guarantees, Loans, Advances and Other Liabilities..........................................15
      SECTION 3.15.   Capital Expenditures.......................................................................15
      SECTION 3.16.   Compliance with Laws.......................................................................15
      SECTION 3.17.   Restricted Payments........................................................................16
      SECTION 3.18.   Notice of Rapid Amortization Events and Events of Servicing Termination....................16
      SECTION 3.19.   Further Instruments and Acts...............................................................16
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      SECTION 3.20.   Amendments of Sale and Servicing Agreement and Trust Agreement.............................16
      SECTION 3.21.   Income Tax Characterization................................................................16
      SECTION 3.22.   Representations and Warranties of the Issuer Regarding the Lien of the Indenture Trustee...16

ARTICLE IV Satisfaction and Discharge............................................................................17

      SECTION 4.1.    Satisfaction and Discharge of Indenture....................................................17
      SECTION 4.2.    Application of Trust Money.................................................................18
      SECTION 4.3.    Repayment of Monies Held by Note Paying Agent..............................................18

ARTICLE V Remedies...............................................................................................18

      SECTION 5.1.    Remedies...................................................................................18
      SECTION 5.2.    Limitation of Suits........................................................................19
      SECTION 5.3.    Unconditional Rights of Noteholders To Receive Principal and Interest......................19
      SECTION 5.4.    Restoration of Rights and Remedies.........................................................20
      SECTION 5.5.    Rights and Remedies Cumulative.............................................................20
      SECTION 5.6.    Delay or Omission Not a Waiver.............................................................20
      SECTION 5.7.    Control by Insurer and Noteholders.........................................................20
      SECTION 5.8.    Undertaking for Costs......................................................................20
      SECTION 5.9.    Waiver of Stay or Extension Laws...........................................................21
      SECTION 5.10.   Action on Notes............................................................................21
      SECTION 5.11.   Performance and Enforcement of Certain Obligations.........................................21
      SECTION 5.12.   Subrogation................................................................................22
      SECTION 5.13.   Preference Claims..........................................................................22
      SECTION 5.14.   Noteholder Rights..........................................................................23
      SECTION 5.15.   Insurer's Rights Regarding Actions, Proceedings or Investigations..........................23

ARTICLE VI The Indenture Trustee.................................................................................24

      SECTION 6.1.    Duties of Indenture Trustee................................................................24
      SECTION 6.2.    Rights of Indenture Trustee................................................................26
      SECTION 6.3.    Individual Rights of Indenture Trustee.....................................................27
      SECTION 6.4.    Indenture Trustee's Disclaimer.............................................................27
      SECTION 6.5.    Notice of Rapid Amortization Events and Events of Servicing Termination....................27
      SECTION 6.6.    Reports by Indenture Trustee to Holders....................................................27
      SECTION 6.7.    Compensation and Indemnity.................................................................28
      SECTION 6.8.    Replacement of Indenture Trustee...........................................................28
      SECTION 6.9.    Successor Indenture Trustee by Merger......................................................30
      SECTION 6.10.   Appointment of Co-Indenture Trustee or Separate Indenture Trustee..........................30
      SECTION 6.11.   Eligibility; Disqualification..............................................................32
      SECTION 6.12.   Preferential Collection of Claims Against Issuer...........................................32
      SECTION 6.13.   Appointment and Powers.....................................................................32
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      SECTION 6.14.   Performance of Duties......................................................................32
      SECTION 6.15.   Limitation on Liability....................................................................32
      SECTION 6.16.   Reliance Upon Documents....................................................................33
      SECTION 6.17.   Representations and Warranties of the Indenture Trustee....................................33
      SECTION 6.18.   Waiver of Setoffs..........................................................................33
      SECTION 6.19.   Control by the Controlling Party...........................................................33
      SECTION 6.20.   Indenture Trustee May Enforce Claims Without Possession of Notes...........................34
      SECTION 6.21.   Suits for Enforcement......................................................................34
      SECTION 6.22.   Mortgagor Claims...........................................................................34

ARTICLE VII Noteholders' Lists and Reports.......................................................................35

      SECTION 7.1.    Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders..................35
      SECTION 7.2.    Preservation of Information; Communications to Noteholders.................................35
      SECTION 7.3.    Reports by Issuer..........................................................................35
      SECTION 7.4.    Reports by Indenture Trustee...............................................................36

ARTICLE VIII Payments and Statements to Noteholders and Residual Noteholders; Accounts, Disbursements
                      and Releases...............................................................................36

      SECTION 8.1.    Collection of Money........................................................................36
      SECTION 8.2.    Release of Trust Property..................................................................37
      SECTION 8.3.    Establishment of Accounts..................................................................37
      SECTION 8.4.    The Policy.................................................................................37
      SECTION 8.5.    Payments under the GreenPoint Bank Demand Note:............................................38
      SECTION 8.6.    [Reserved].................................................................................39
      SECTION 8.7.    Priority of Distributions..................................................................39
      SECTION 8.8.    Statements to Noteholders..................................................................41
      SECTION 8.9.    Indenture Trustee Annual Certification.....................................................43
      SECTION 8.10.   Rights of Noteholders and Residual Certificateholders......................................43
      SECTION 8.11.   Opinion of Counsel.........................................................................43

ARTICLE IX Supplemental Indentures...............................................................................44
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      SECTION 9.1.    Supplemental Indentures Without Consent of Noteholders.....................................44
      SECTION 9.2.    Supplemental Indentures with Consent of Noteholders........................................45
      SECTION 9.3.    Execution of Supplemental Indentures.......................................................46
      SECTION 9.4.    Effect of Supplemental Indenture...........................................................47
      SECTION 9.5.    Reference in Notes to Conformity With Trust Indenture Act..................................47
      SECTION 9.6.    Reference in Notes to Supplemental Indentures..............................................47

ARTICLE X Redemption of Notes....................................................................................47

      SECTION 10.1.   Redemption.................................................................................47
      SECTION 10.2.   Surrender of Notes.........................................................................48
      SECTION 10.3.   Form of Redemption Notice..................................................................49
      SECTION 10.4.   Notes Payable on Redemption Date...........................................................49

ARTICLE XI Miscellaneous.........................................................................................49

      SECTION 11.1.   Compliance Certificates and Opinions, etc..................................................49
      SECTION 11.2.   Form of Documents Delivered to Indenture Trustee...........................................50
      SECTION 11.3.   Acts of Noteholders........................................................................51
      SECTION 11.4.   Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies...................51
      SECTION 11.5.   Notices to Noteholders; Waiver.............................................................52
      SECTION 11.6.   Alternate Payment and Notice Provisions....................................................53
      SECTION 11.7.   Conflict with Trust Indenture Act..........................................................53
      SECTION 11.8.   Effect of Headings and Table of Contents...................................................53
      SECTION 11.9.   Successors and Assigns.....................................................................53
      SECTION 11.10.  Separability...............................................................................53
      SECTION 11.11.  Benefits of Indenture......................................................................54
      SECTION 11.12.  Legal Holidays.............................................................................54
      SECTION 11.13.  GOVERNING LAW..............................................................................54
      SECTION 11.14.  Counterparts...............................................................................54
      SECTION 11.15.  Recording of Indenture.....................................................................54
      SECTION 11.16.  Trust Obligation...........................................................................54
      SECTION 11.17.  No Petition................................................................................55
      SECTION 11.18.  Inspection.................................................................................55
      SECTION 11.19.  Limitation of Liability....................................................................55

ARTICLE XII Rapid Amortization Events............................................................................56

      SECTION 12.1.   Rapid Amortization Events..................................................................56
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ANNEX A           -       Defined Terms

EXHIBIT A-1       -       Form of Class A Note

EXHIBIT B         -       Form of Opinion of Counsel

EXHIBIT C         -       Form of Certification to be Provided by the Manager to
                          the Indenture Trustee

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            INDENTURE,  dated  as of  May 1,  2003  (the  "INDENTURE"),  between
GREENPOINT  HOME  EQUITY  LOAN TRUST  2003-1,  a Delaware  statutory  trust (the
"ISSUER"), and The bank of new york, a New York banking corporation,  as trustee
(the "INDENTURE TRUSTEE").

            Each party  agrees as follows for the benefit of the other party and
for the equal  and  ratable  benefit  of the  Holders  of the  Issuer's  Class A
Variable Rate Asset Backed Notes (the "NOTES")

            As security  for the payment  and  performance  by the Issuer of its
obligations  under this Indenture and the Notes, the Issuer has agreed to assign
the  Collateral  (as defined  below) to the  Indenture  Trustee on behalf of the
Noteholders and the Insurer.

            Ambac Assurance Corporation (the "INSURER") has issued and delivered
a financial guaranty insurance policy for the Notes, dated the Closing Date (the
"POLICY"),  pursuant to which the  Insurer  guarantees  the Insured  Amounts and
Preference Amount (as defined in the Policy).

            As an inducement to the Insurer to issue and deliver the Policy, the
Issuer and the Insurer have  executed and  delivered the Insurance and Indemnity
Agreement,  dated  as of May  19,  2003  (as  amended  from  time to  time,  the
"INSURANCE  AGREEMENT"),  among the  Insurer,  the Issuer,  GreenPoint  Mortgage
Funding, Inc., GreenPoint Mortgage Securities Inc. and the Indenture Trustee.

            As an additional  inducement to the Insurer to issue the Policy, and
as security  for the  performance  by the Issuer of the Insurer  Issuer  Secured
Obligations  and as security for the  performance by the Issuer of the Indenture
Trustee  Issuer Secured  Obligations,  the Issuer has agreed to grant and assign
the Collateral  (as defined  below) to the Indenture  Trustee for the benefit of
the Issuer Secured Parties, as their respective interests may appear.
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                                 GRANTING CLAUSE

The Issuer hereby Grants to the Indenture  Trustee at the Closing Date,  for the
benefit of the Issuer  Secured  Parties  all of the  Issuer's  right,  title and
interest  in and to: (i) a pool (the  "POOL") of  certain  adjustable  rate home
equity  revolving  credit line loans ("HELOC  MORTGAGE  LOANS")  (including  any
Additional  Balances  related thereto) and second lien closed-end loans ("CLOSED
END MORTGAGE LOANS") (the "MORTGAGE LOANS") in each case as set forth in Exhibit
A to the Sale and Servicing  Agreement;  (ii) the  collections in respect of the
Mortgage  Loans after the Cut-Off Date;  (iii)  property that secured a Mortgage
Loan that has been acquired by foreclosure or deed in lieu of foreclosure;  (iv)
rights of the Sponsor  under hazard  insurance  policies  covering the Mortgaged
Properties;  (v) amounts on deposit from time to time in the Collection Account;
(vi) all rights under the Purchase  Agreement  assigned to the Issuer (including
all  representations  and  warranties of the Seller  contained  therein) and all
rights of the Issuer under the Sale and  Servicing  Agreement;  (vii) the Policy
(solely  for the  benefit of the  Noteholders);  (viii) the  Demand  Note;  (ix)
amounts on deposit from time to time in the Demand Note Reserve Account; and (x)
any and all proceeds of the  foregoing  (the items set forth in (i) through (ix)
above, the "COLLATERAL").

            The foregoing Grant is made in trust to the Indenture  Trustee,  for
the benefit FIRST, of the Holders of the Notes,  and SECOND,  for the benefit of
the Insurer.  The Indenture Trustee hereby acknowledges such Grant,  accepts the
trusts under this Indenture in accordance  with the provisions of this Indenture
and agrees to perform its duties  required in this  Indenture to the best of its
ability  to the  end  that  the  interests  of  such  parties,  recognizing  the
priorities  of their  respective  interests may be  adequately  and  effectively
protected.

            The Indenture  Trustee hereby agrees that it will hold the Policy in
trust  and that it will hold any  proceeds  of any  claim  made upon the  Policy
solely for the use and the benefit of the  Noteholders  in  accordance  with the
terms hereof and the terms of the Policy.

            Neither the Indenture Trustee nor the Issuer assumes or shall assume
any obligation  under any Credit Line Agreement that provides for the funding of
future Draws to the Mortgagor thereunder,  and neither the Indenture Trustee nor
the Issuer shall be obligated or permitted to fund any such future Draws.

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

            SECTION 1.1. DEFINITIONS.  Except as otherwise specified herein, the
following  terms  have  the  respective  meanings  set  forth in Annex A to this
Indenture.

            SECTION 1.2.  INCORPORATION BY REFERENCE OF THE TRUST INDENTURE ACT.
Whenever  this  Indenture  refers  to a  provision  of the Trust  Indenture  Act
("TIA"),  the provision is  incorporated by reference in and made a part of this
Indenture.  The  following TIA terms used in this  Indenture  have the following
meanings:

            "Commission" means the Securities and Exchange Commission.

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            "indenture securities" means the Notes.

            "indenture security holder" means a Holder of a Note.

            "indenture to be qualified" means this Indenture.

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

            "obligor" on the indenture securities means the Issuer.

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

            SECTION 1.3.  RULES OF  CONSTRUCTION.  Unless the context  otherwise
requires:

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation; and

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

            SECTION  1.4.  ACTION BY OR  CONSENT  OF  NOTEHOLDERS  AND  RESIDUAL
CERTIFICATEHOLDERS. Whenever any provision of this Indenture refers to action to
be taken, or consented to, by Noteholders or Residual  Certificateholders,  such
provision   shall  be   deemed   to  refer  to  the   Noteholder   or   Residual
Certificateholder,  as  the  case  may  be,  of  record  as of the  Record  Date
immediately  preceding the date on which such action is to be taken,  or consent
given, by Noteholders or Residual Certificateholders. Solely for the purposes of
any  action  to  be  taken,   or  consented  to,  by   Noteholders  or  Residual
Certificateholders,  any Note or Residual Certificate  registered in the name of
GreenPoint  Mortgage Funding,  Inc. or any Affiliate thereof shall be deemed not
to  be  outstanding;   PROVIDED,  HOWEVER,  that,  solely  for  the  purpose  of
determining  whether the  Indenture  Trustee or the Owner Trustee is entitled to
rely upon any such action or consent,  only Notes or Residual Certificates which
the Owner Trustee or the Indenture Trustee,  respectively,  knows to be so owned
shall be so disregarded.

            SECTION 1.5.  CONFLICT  WITH TIA. If any  provision  hereof  limits,
qualifies  or conflicts  with a provision of the TIA that is required  under the
TIA to be part of and govern this Indenture,  the latter provision shall control
and all provisions required by the TIA are hereby incorporated by reference.  If
any  provision of this  Indenture  modifies or excludes any provision of the TIA
that may be so modified or excluded,  the latter  provisions  shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

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                                   ARTICLE II

                                    THE NOTES

            SECTION 2.1.  FORM.  The Class A Notes,  together with the Indenture
Trustee's certificate of authentication,  shall be in substantially the form set
forth  in  Exhibit  A  hereto,  with  such  appropriate  insertions,  omissions,
substitutions  and  other  variations  as are  required  or  permitted  by  this
Indenture  and may have such letters,  numbers or other marks of  identification
and such legends or endorsements placed thereon as may,  consistently  herewith,
be  determined  by the  officers  executing  such Notes,  as  evidenced by their
execution of the Notes. Any portion of the text of any Notes may be set forth on
the reverse thereof,  with an appropriate  reference  thereto on the face of the
Note.

            Each Note shall be dated the date of its  authentication.  The terms
of the Notes set forth in Exhibit A are part of the terms of this Indenture.

            SECTION 2.2. 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  original  or
facsimile.

            Notes bearing the original 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 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  authenticate and deliver Class A Notes
for original issue in the aggregate principal amount of $290,418,000.  The Class
A Notes outstanding at any time may not exceed such amounts.

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

            No Note shall be entitled to any benefit under this  Indenture or be
valid or obligatory for any purpose,  unless there appears attached to 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  attached  to any Notes shall be
conclusive  evidence,  and the only  evidence,  that such  Notes  have been duly
authenticated and delivered hereunder.  Subject to Section 2.11, the Notes shall
be Book Entry Notes.

            SECTION 2.3.  REGISTRATION;  REGISTRATION  OF TRANSFER AND EXCHANGE.
The Issuer  shall cause to be kept a register  (the "NOTE  REGISTER")  in which,
subject to such  reasonable  regulations as it may  prescribe,  the Issuer shall
provide for the  registration  of Notes and the  registration  of  transfers  of
Notes.  The  Indenture  Trustee  shall be "Note  Registrar"  for the  purpose of
registering  Notes  and  transfers  of  Notes  as  herein  provided.   Upon  any
resignation of any Note Registrar, the Issuer shall promptly appoint a successor
or, if it elects  not to make such an  appointment,  assume  the  duties of Note
Registrar.

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            If a Person  other than the  Indenture  Trustee is  appointed by the
Issuer as Note  Registrar,  the Issuer will give the  Indenture  Trustee and the
Insurer prompt  written notice of the  appointment of such Note Registrar and of
the location,  and any change in the  location,  of the Note  Register,  and the
Indenture  Trustee  and the  Insurer  shall have the right to  inspect  the Note
Register at all  reasonable  times and to obtain copies  thereof.  The Indenture
Trustee  shall have the right to rely upon a  certificate  executed on behalf of
the  Note  Registrar  by an  Authorized  Officer  thereof  as to the  names  and
addresses  of the Holders of the Notes and the  principal  amounts and number of
such Notes.

            Upon  surrender  for  registration  or  transfer  of any Note at the
office or agency of the Issuer to be  maintained as provided in Section 3.2, and
if the  requirements  of Section  8-401(1) of the UCC are met,  the Issuer shall
execute or cause the Indenture Trustee to authenticate one or more new Notes, in
any authorized  denominations,  of the same class and a like aggregate principal
amount. A Noteholder may also obtain from the Indenture Trustee,  in the name of
the  designated  transferee  or  transferees  one  or  more  new  Notes,  in any
authorized  denominations,  of the same  class  and a like  aggregate  principal
amount.  Such requirements shall not be deemed to create a duty in the Indenture
Trustee to monitor the compliance by the Issuer with Section 8-401 of the UCC.

            At the option of the Holder,  Notes may be exchanged for other Notes
in  any  authorized  denominations,  of the  same  class  and a  like  aggregate
principal amount,  upon surrender of the Notes to be exchanged at such office or
agency.  Whenever  any  Notes  are  so  surrendered  for  exchange,  and  if the
requirements  of Section  8-401(1) of the UCC are met, the Issuer shall  execute
and upon its request the Indenture  Trustee shall  authenticate  the Notes which
the  Noteholder  making the exchange is entitled to receive.  Such  requirements
shall not be deemed to create a duty in the  Indenture  Trustee to  monitor  the
compliance by the Issuer with Section 8-401 of the UCC.

            All Notes  issued upon any  registration  of transfer or exchange of
Notes shall be the valid  obligations  of the Issuer,  evidencing the same debt,
and entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

            Every Note presented or surrendered for  registration of transfer or
exchange  shall  be  (i)  duly  endorsed  by,  or be  accompanied  by a  written
instrument  of transfer in the form  attached to Exhibit A, duly executed by the
Holder thereof 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 all in accordance with the Exchange Act, and
(ii) accompanied by such other documents as the Note Registrar may require.

            No service charge shall be made to a Holder for any  registration of
transfer or exchange of Notes,  but the Note Registrar may require  payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 2.4 or 9.6 not involving any transfer.

            The Note  Registrar  shall not register the transfer of a Definitive
Note unless the Indenture Trustee has received a representation  letter (in form
and substance satisfactory to the

                                       5
<PAGE>

Indenture Trustee) from the prospective transferee to the effect that either (a)
such  transferee is not an employee  benefit plan (as defined in Section 3(3) of
ERISA)  that is  subject  to the  provisions  of  Title I of ERISA or a plan (as
defined in Section  4975(e)(1)  of the Code) that is subject to Section  4975 of
the Code (each,  a "BENEFIT  PLAN") and is not acting on behalf of or  investing
the assets of a Benefit Plan or (b) the  acquisition  and  continued  holding of
such  Note by the  transferee  will be  covered  by a U.S.  Department  of Labor
prohibited  transaction  class  exemption.  Each Note Owner,  by acceptance of a
beneficial  interest  in a  Book-Entry  Note,  will be deemed to make one of the
foregoing representations.

            SECTION 2.4. MUTILATED,  DESTROYED, LOST OR STOLEN NOTES. If (i) any
mutilated  Note is  surrendered  to the Note  Registrar,  or the Note  Registrar
receives  evidence to its satisfaction of the destruction,  loss or theft of any
Note, and (ii) there is delivered to the Indenture  Trustee and the Insurer such
security or indemnity as may be required by it to hold the Issuer, the Indenture
Trustee and the Insurer 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 (such requirement
shall not be deemed to create a duty in the  Indenture  Trustee to  monitor  the
compliance by the Issuer with Section  8-405);  PROVIDED,  HOWEVER,  that if any
such destroyed, lost or stolen Note, but not a mutilated Note, shall have become
or within  seven days shall be due and  payable,  or shall have been  called for
redemption,  the Issuer may, instead of issuing a replacement  Note,  direct the
Indenture Trustee, in writing,  to pay such destroyed,  lost or stolen Note when
so due or payable or upon the Redemption  Date without  surrender  thereof.  If,
after the delivery of such replacement  Note or payment of a destroyed,  lost or
stolen  Note  pursuant  to the proviso to the  preceding  sentence,  a bona fide
purchaser of the original Note in lieu of which such replacement Note was issued
presents for payment such original Note, the Issuer,  the Indenture  Trustee and
the Insurer shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person  taking such  replacement
Note  from  such  Person  to whom such  replacement  Note was  delivered  or any
assignee of such Person, except a bona fide purchaser,  and shall be entitled to
recover upon the security or  indemnity  provided  therefor to the extent of any
loss,  damage,  cost or expense incurred by the Issuer, the Indenture Trustee or
the Insurer in connection therewith.

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

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

                                       6
<PAGE>

            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 2.5.  PERSONS DEEMED OWNERS.  Prior to due  presentment  for
registration of transfer of any Note, the Issuer,  the Indenture Trustee and the
Insurer and any agent of the Issuer,  the Indenture  Trustee and the Insurer may
treat the Person in whose name any Note is registered (as of the Record Date) as
the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or
not such Note be overdue,  and none of the Issuer,  the Insurer,  the  Indenture
Trustee nor any agent of the Issuer,  the Insurer or the Indenture Trustee shall
be affected by notice to the contrary.

            SECTION 2.6. PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST.

            (a) The Notes shall  accrue  interest as provided  herein,  and such
amount  shall  be  payable  on  each  Payment  Date  as  specified  herein.  Any
installment  of  interest  or  principal,  if any,  payable on any Note which is
punctually  paid or duly  provided for by the Issuer on the  applicable  Payment
Date  shall  be paid to the  Person  in  whose  name  such  Note (or one or more
Predecessor   Notes)  is   registered  on  the  Record  Date,  by  check  mailed
first-class, postage prepaid, to such Person's address as it appears on the Note
Register on such Record Date,  except that,  unless  Definitive  Notes have been
issued pursuant to Section 2.11, with respect to Notes  registered on the Record
Date in the name of the nominee of the Clearing Agency (initially,  such nominee
to be  Cede & Co.),  payment  will be  made  by  wire  transfer  in  immediately
available  funds to the account  designated  by such  nominee and except for the
final  installment  of principal  payable with respect to such Note on a Payment
Date or on the Final Scheduled Payment Date (and except for the Redemption Price
for any Note  called for  redemption  pursuant  to Section  10.1) which shall be
payable as provided  below.  The funds  represented by any such checks  returned
undelivered shall be held in accordance with Section 3.3.

            (b) Upon written notice from the Issuer, the Indenture Trustee shall
notify the Person in whose name a Note is registered at the close of business on
the Record Date  preceding the Payment Date on which the Issuer expects that the
final  installment of principal of and interest on such Note will be paid.  Such
notice shall be mailed or transmitted  by facsimile  prior to such final Payment
Date and shall  specify  that such final  installment  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 payment of such  installment.  Notices
in  connection  with  redemptions  of Notes  shall be mailed to  Noteholders  as
provided in Section 10.2.

            (c) If the Issuer  defaults  in a payment of  interest on the Notes,
the  Issuer  shall pay  defaulted  interest  (plus  interest  on such  defaulted
interest to the extent lawful) at the applicable Note Rate to the extent lawful.
The Issuer may pay such defaulted interest to the Persons who are Noteholders on
a subsequent  special  Record Date,  which date shall be at least five  Business
Days prior to the Payment  Date.  The Issuer  shall fix or cause to be fixed any
such special Record Date and Payment Date, and, at least 15 days before any such
special Record Date, the Issuer shall mail to each  Noteholder,  the Insurer and
the Indenture  Trustee a notice that states the special Record Date, the Payment
Date and the amount of defaulted interest to be paid.

                                       7
<PAGE>

            (d)  Promptly  following  the date on  which  all  principal  of and
interest on the Notes has been paid in full and the Notes have been  surrendered
to the Indenture Trustee,  the Indenture Trustee shall, upon written notice from
the Servicer of the amounts, if any, that the Insurer has paid in respect of the
Notes  under  the  Policy or  otherwise  which  has not been  reimbursed  to the
Insurer,  deliver  such  surrendered  Notes to the  Insurer  to the  extent  not
previously canceled or destroyed.

            SECTION  2.7.  CANCELLATION.  Subject to Section  2.6(d),  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  canceled by the Indenture  Trustee.
Subject to Section  2.6(d),  the Issuer may at any time deliver to the Indenture
Trustee  for  cancellation  any Notes  previously  authenticated  and  delivered
hereunder which the Issuer may have acquired in any manner  whatsoever,  and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be  authenticated  in lieu of or in  exchange  for any Notes  canceled  as
provided in this  Section,  except as  expressly  permitted  by this  Indenture.
Subject to Section 2.6(d),  all canceled Notes may be held or disposed of by the
Indenture  Trustee in accordance with its standard  retention or disposal policy
as in effect at the time unless the Issuer  shall direct by an Issuer Order that
they be returned to it;  provided that such Issuer Order is timely and the Notes
have not been previously disposed of by the Indenture Trustee.

            SECTION 2.8. RELEASE OF COLLATERAL.  The Indenture Trustee shall, on
or after the  Termination  Date,  release  any  remaining  portion  of the Trust
Property from the lien created by this  Indenture and deposit in the  Collection
Account any funds then on deposit in any other  Account.  The Indenture  Trustee
shall release property from the lien created by this Indenture  pursuant to this
Section  2.8 only upon  receipt  of an Issuer  Request by it  accompanied  by an
Officer's  Certificate  and an Opinion of Counsel (which shall also be addressed
to the  Insurer)  and (if  required  by the  TIA)  Independent  Certificates  in
accordance  with  TIA  ss.ss.   314(c)  and  314(d)(1)  meeting  the  applicable
requirements of Section 11.1.

            SECTION 2.9.  BOOK-ENTRY NOTES. The Notes,  upon original  issuance,
will be issued in the form of  typewritten  Notes  representing  the  Book-Entry
Notes,  to be delivered to The Depository  Trust Company or its  custodian,  the
initial  Clearing  Agency,  by, or on behalf of, the  Issuer.  Such Notes  shall
initially  be  registered  on the Note  Register in the name of Cede & Co.,  the
nominee  of the  initial  Clearing  Agency,  and no Note  Owner  will  receive a
Definitive Note  representing such Note Owner's interest in such Note, except as
provided in Section 2.11.  Unless and until  definitive,  fully registered Notes
(the  "DEFINITIVE  NOTES")  have been issued to Note Owners  pursuant to Section
2.11:

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

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

                                       8
<PAGE>

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

                  (iv) the rights of Note Owners shall be exercised only through
      the Clearing  Agency and shall be limited to those  established by law and
      agreements  between  such Note Owners and the Clearing  Agency  and/or the
      Clearing Agency Participants. Unless and until Definitive Notes are issued
      pursuant to Section 2.11, the initial Clearing Agency will make book-entry
      transfers among the Clearing Agency  Participants and receive and transmit
      payments of principal of and interest on the Notes to such Clearing Agency
      Participants;

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

                  (vi) Note  Owners may receive  copies of any  reports  sent to
      Noteholders  pursuant to this Indenture,  upon written  request,  together
      with a certification that they are Note Owners and payment of reproduction
      and postage  expenses  associated  with the  distribution of such reports,
      from the Indenture Trustee at the Corporate Trust Office.

            SECTION 2.10. NOTICES TO CLEARING AGENCY. Whenever a notice or other
communication  to the Noteholders is required under this  Indenture,  unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11,  the  Indenture  Trustee  shall give all such  notices and  communications
specified herein to be given to Holders of the Notes to the Clearing Agency, and
shall have no obligation to the Note Owners.

            SECTION  2.11.  DEFINITIVE  NOTES.  If (i) the Servicer  advises the
Indenture  Trustee in writing that the Clearing  Agency is no longer  willing or
able to properly discharge its  responsibilities  with respect to the Notes, and
the Servicer is unable to locate a qualified successor, (ii) the Servicer at its
option advises the Indenture  Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of a
Rapid  Amortization  Event,  Note  Owners  representing   beneficial   interests
aggregating  at least a majority of the  Outstanding  Amount of the Notes advise
the  Indenture   Trustee  through  the  Clearing  Agency  in  writing  that  the
continuation  of a book entry system through the Clearing Agency is no longer in
the best interests of the Note Owners, then the Clearing Agency shall notify all
Note Owners and the Indenture Trustee of the occurrence of any such event and of
the  availability of Definitive  Notes to Note Owners  requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Note or Notes representing
the  Book-Entry  Notes  by the  Clearing  Agency,  accompanied  by  registration
instructions,   the  Issuer  shall  execute  and  the  Indenture  Trustee  shall
authenticate  the Definitive  Notes in accordance  with the  instructions of the
Clearing Agency. 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

                                       9
<PAGE>

protected  in relying on, such  instructions.  Upon the  issuance of  Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders.

                                   ARTICLE III

             COVENANTS; REPRESENTATIONS AND WARRANTIES OF THE ISSUER

            SECTION 3.1. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture.  The Notes shall be debt  obligations
of the Trust and shall be limited in right of payment to amounts  available from
the Trust as provided in this  Indenture  and the Trust shall not  otherwise  be
liable for payments on the Notes.  No person shall be personally  liable for any
amounts payable under the Notes. Amounts properly withheld under the Code by any
Person from a payment to any Noteholder of interest  and/or  principal  shall be
considered as having been paid by the Issuer to such Noteholder for all purposes
of this Indenture.

            SECTION  3.2.  MAINTENANCE  OF OFFICE OR  AGENCY.  The  Issuer  will
maintain  in New  York,  New  York,  an  office  or  agency  where  Notes may be
surrendered  for  registration,  transfer or  exchange  of the Notes,  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.  The Issuer will give
prompt  written  notice to the  Indenture  Trustee of the  location,  and of any
change in the location,  of any such office or agency. 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,  and the  Issuer  hereby
appoints  the  Indenture  Trustee as its agent to receive  all such  surrenders,
notices and demands.

            SECTION 3.3. MONEY FOR PAYMENTS TO BE HELD IN TRUST. The Issuer will
cause each Note  Paying  Agent other than the  Indenture  Trustee to execute and
deliver to the  Indenture  Trustee and the Insurer an  instrument  in which such
Note Paying Agent shall agree with the  Indenture  Trustee (and if the Indenture
Trustee  acts as Note  Paying  Agent,  it  hereby  so  agrees),  subject  to the
provisions of this Section, that such Note Paying Agent will:

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

                  (ii) give the Indenture Trustee and the Insurer written notice
      of any  default  by the Issuer  (or any other  obligor  upon the Notes) of
      which it has actual  knowledge in the making of any payment required to be
      made with respect to the Notes;

                  (iii) at any time during the  continuance of any such default,
      upon the written request of the Indenture  Trustee with the consent of the
      Insurer,  if the Insurer is the  Controlling  Party,  forthwith pay to the
      Indenture Trustee all sums so held in trust by such Note Paying Agent;

                                       10
<PAGE>

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

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

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

            Subject to applicable laws with respect to the escheat of funds, any
money held by the  Indenture  Trustee or any Note Paying  Agent in trust for the
payment of any amount due with respect to any Note and  remaining  unclaimed for
two years after such amount has become due and payable shall be discharged  from
such trust and be paid to the Issuer,  with the prior consent of the Insurer, on
Issuer  Request,  and  shall  be  deposited  by  the  Indenture  Trustee  in the
Collection  Account;  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,  the Insurer or such Note Paying  Agent with respect to
such trust money shall thereupon cease; PROVIDED, HOWEVER, that if such money or
any  portion  thereof had been  previously  deposited  by the  Insurer  with the
Indenture  Trustee for the payment of principal or interest on the Notes, to the
extent any amounts are owing to the Insurer, such amounts shall be paid promptly
to the Insurer upon receipt of a written request by the Insurer to such effect.

            SECTION  3.4.  EXISTENCE.  The Issuer  will keep in full  effect its
existence,  rights and  franchises  as a  statutory  trust under the laws of the
State of Delaware  (unless it becomes,  or any successor  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 will keep in full effect its existence, rights
and franchises  under the laws of such other  jurisdiction)  and will obtain and
preserve its  qualification  to do business in each  jurisdiction  in which such
qualification   is  or  shall  be   necessary   to  protect  the   validity  and
enforceability of this Indenture,  the Trust Property, the Notes, and each other
instrument or agreement included in the Trust Property.

            SECTION 3.5.  PROTECTION OF TRUST  PROPERTY.  The Issuer intends the
security  interest  granted  pursuant to this  Indenture  in favor of the Issuer
Secured  Parties to be prior to all other liens in respect of the Trust Property
and the Issuer shall take all actions necessary to obtain and maintain, in favor
of the Indenture Trustee, for the benefit of the Issuer Secured Parties, a first
lien on and a first priority, perfected security interest in the Trust Property.
The  Issuer  will from time to time  prepare  (or shall  cause to be  prepared),
execute and deliver all such

                                       11
<PAGE>

supplements   and  amendments   hereto  and  all  such   financing   statements,
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

                  (i) Grant  more  effectively  all or any  portion of the Trust
      Property;

                  (ii) maintain or preserve the lien and security  interest (and
      the priority thereof) in favor of the Indenture Trustee for the benefit of
      the Issuer  Secured  Parties  created by this  Indenture or carry out more
      effectively the purposes hereof;

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

                  (iv) enforce any of the Collateral,  including making draws on
      the Demand Note;

                  (v) preserve  and defend  title to the Trust  Property and the
      rights of the Indenture  Trustee in such Trust Property against the claims
      of all persons and parties; and

                  (vi) pay all taxes or assessments  levied or assessed upon the
      Trust Property when due.

The   Issuer   hereby   designates   the   Indenture   Trustee   its  agent  and
attorney-in-fact to execute any financing statement,  continuation  statement or
other  instrument  required  pursuant  to  this  Section;  PROVIDED  that,  such
designation  shall not be deemed to create a duty in the  Indenture  Trustee  to
monitor  the  compliance  of the Issuer  with  respect to its duties  under this
Section 3.5 or the adequacy of any financing statement,  continuation  statement
or other instrument prepared by the Issuer.

            SECTION 3.6. OPINIONS AS TO TRUST PROPERTY.

            (a) On the Closing  Date,  the Issuer shall furnish to the Indenture
Trustee  and the  Insurer an Opinion of Counsel in the form of Exhibit B hereto,
stating that, in the opinion of such counsel,  such actions have 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 first priority lien and security
interest  in favor of the  Indenture  Trustee,  for the  benefit  of the  Issuer
Secured  Parties,  created  by this  Indenture,  subject to the  exceptions  and
qualifications set forth in such Opinion of Counsel.

            (b)  Within  90 days  after the  beginning  of each  calendar  year,
beginning in 2004,  the Issuer shall  furnish to the  Indenture  Trustee and the
Insurer,  an Opinion of Counsel  either  stating  that,  in the  opinion of such
counsel,  such actions have been taken with  respect to the  recording,  filing,
re-recording and refiling of this Indenture,  any indentures supplemental hereto
and any other  requisite  documents and with respect to the execution and filing
of any  financing  statements  and  continuation  statements as are necessary to
maintain the lien and security  interest  created by this Indenture and reciting
the details of such action or stating  that in the opinion of such  counsel,  no
such action is necessary to maintain such lien and security

                                       12
<PAGE>

interest.  Such Opinion of Counsel  shall also describe the  recording,  filing,
re-recording and refiling of this Indenture,  any indentures supplemental hereto
and any other requisite  documents and the execution and filing of any financing
statements  and  continuation  statements  that  will,  in the  opinion  of such
counsel,  be  required  to  maintain  the lien  and  security  interest  of this
Indenture.

            SECTION  3.7.  PERFORMANCE  OF  OBLIGATIONS;  SERVICING  OF MORTGAGE
LOANS.

            (a) The  Issuer  will  not  take  any  action  and will use its best
efforts  not to permit any action to be taken by others  that would  release any
Person from any of such Person's  material  covenants or  obligations  under any
instrument or agreement  included in the Trust  Property or that would result in
the  amendment,  hypothecation,  subordination,  termination or discharge of, or
impair the  validity or  effectiveness  of, any such  instrument  or  agreement,
except as ordered by any  bankruptcy or other court or as expressly  provided in
this Indenture, the Basic Documents or such other instrument or agreement.

            (b) The Issuer may contract  with other  Persons  acceptable  to the
Insurer 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  Insurer in an  Officer's  Certificate  of the Issuer  shall be deemed to be
action  taken by the  Issuer.  Initially,  the  Issuer has  contracted  with the
Servicer to assist the Issuer in performing its duties under this Indenture.

            (c) The  Issuer  will  punctually  perform  and  observe  all of its
obligations and agreements contained in this Indenture,  the Basic Documents and
in the instruments and agreements included in the Trust Property, including, but
not limited to,  preparing (or causing to be prepared) and filing (or causing to
be filed) all UCC financing  statements and continuation  statements required to
be filed by the terms of this Indenture and the Sale and Servicing  Agreement in
accordance  with and within the time  periods  provided  for herein and therein.
Except as  otherwise  expressly  provided  therein,  the Issuer shall not waive,
amend,  modify,  supplement  or terminate  any Basic  Document or any  provision
thereof without the consent of the Indenture Trustee and the Insurer.

            (d) If a Responsible  Officer of the Owner Trustee shall have actual
knowledge of the occurrence of an Event of Servicing  Termination under the Sale
and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee,
the Insurer and the Rating Agencies thereof in accordance with Section 11.4, and
shall  specify in such  notice the action,  if any,  the Issuer is taking at the
direction of the  Controlling  Party in respect of such default.  If an Event of
Servicing  Termination  shall arise from the failure of the  Servicer to perform
any of its duties or  obligations  under the Sale and Servicing  Agreement  with
respect to the  Mortgage  Loans,  the Issuer  shall  take all  reasonable  steps
available to it to remedy such failure.

            (e) The Issuer agrees that it will not waive timely  performance  or
observance by the Servicer or the Sponsor of their  respective  duties under the
Basic  Documents  (x)  without  the prior  consent of the  Insurer or (y) if the
effect thereof would adversely affect the Holders of the Notes.

                                       13
<PAGE>

            SECTION  3.8.  NEGATIVE   COVENANTS.   So  long  as  any  Notes  are
Outstanding, the Issuer shall not:

                  (i) except as  expressly  permitted  by this  Indenture or the
      Basic Documents,  sell, transfer,  exchange or otherwise dispose of any of
      the  properties or assets of the Issuer,  including  those included in the
      Trust  Property (but  excluding  any Mortgage  Loans removed from the Pool
      pursuant to Section 2.07 of the Sale and Servicing Agreement), without the
      consent of the Insurer  (which consent may not be  unreasonably  withheld)
      PROVIDED,  that if an Insurer  Default has occurred and is continuing  the
      Noteholders  representing 66-2/3% of the Outstanding Amount may direct the
      Indenture Trustee to sell or dispose of the Trust Property.

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

                  (iii)  (A)  permit  the  validity  or  effectiveness  of  this
      Indenture  to be  impaired,  or permit the lien in favor of the  Indenture
      Trustee   created  by  this   Indenture   to  be  amended,   hypothecated,
      subordinated,  terminated  or  discharged,  or  permit  any  Person  to be
      released from any covenants or obligations with respect to the Notes under
      this Indenture except as may be expressly permitted hereby, (B) permit any
      lien,  charge,  excise,  claim,  security  interest,   mortgage  or  other
      encumbrance  (other than the lien of this  Indenture)  to be created on or
      extend to or otherwise arise upon or burden the Trust Property or any part
      thereof or any interest  therein or the proceeds  thereof  (other than tax
      liens, mechanics' liens and other liens that arise by operation of law, in
      each case on a Mortgaged  Property  and  arising  solely as a result of an
      action or omission of the  related  obligor),  (C) permit the lien of this
      Indenture  not to  constitute  a valid  first  priority  (other  than with
      respect to any such tax,  mechanics' or other lien)  security  interest in
      the  Trust  Property  or (D)  amend,  modify  or fail to  comply  with the
      provisions of the Basic Documents without the prior written consent of the
      Insurer, which consent may not be unreasonably withheld.

            SECTION  3.9.  ANNUAL  STATEMENT AS TO  COMPLIANCE.  The Issuer will
deliver to the Indenture  Trustee and the Insurer,  within 90 days after the end
of each  fiscal  year of the  Issuer  (commencing  with the  fiscal  year  ended
December 31, 2003) and  otherwise in  compliance  with the  requirements  of TIA
Section  314(a)(4),  an  Officer's  Certificate  stating,  as to the  Authorized
Officer signing such Officer's Certificate, that

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

                  (ii) to the best of such Authorized Officer's knowledge, based
      on such review,  the Issuer has complied with all conditions and covenants
      under this Indenture throughout such year, or, if there has been a default
      in the compliance of any such

                                       14
<PAGE>

      condition  or  covenant,  specifying  each  such  default  known  to  such
      Authorized Officer and the nature and status thereof.

            SECTION 3.10. ISSUER MAY NOT CONSOLIDATE OR TRANSFER ASSETS.

            (a) The Issuer may not  consolidate  or merge with or into any other
Person.

            (b)  Except  as  otherwise   provided  in  the  Sale  and  Servicing
Agreement,  the Issuer shall not convey or transfer all or substantially  all of
its properties or assets, including those included in the Trust Property, to any
Person.

            SECTION 3.11. NO OTHER BUSINESS.  The Issuer shall not engage in any
business other than purchasing,  owning, selling and managing the Mortgage Loans
and other  assets in the manner  contemplated  by this  Indenture  and the Basic
Documents and activities incidental thereto.

            SECTION  3.12.  NO  BORROWING.  The Issuer  shall not issue,  incur,
assume,  guarantee or otherwise become liable,  directly or indirectly,  for any
Indebtedness  or any  certificates  of  beneficial  interest  except for (i) the
Residual Certificates, (ii) the Notes, (iii) obligations owing from time to time
to the Insurer  under the Insurance  Agreement  and (iv) any other  indebtedness
permitted by or arising under the Basic Documents,  except that the Issuer shall
not incur any indebtedness  that would cause it, or any portion  thereof,  to be
treated  as a  "taxable  mortgage  pool"  under  Section  7701 of the Code.  The
proceeds of the Notes and the Residual Certificates shall be used exclusively to
fund the Issuer's  purchase of the Mortgage Loans and the other assets specified
in the Sale and  Servicing  Agreement  and to pay the  Issuer's  organizational,
transactional and start-up expenses.

            SECTION  3.13.  SERVICER'S  OBLIGATIONS.  The Issuer shall cause the
Servicer to comply with Sections  3.09,  3.10 and 4.01 of the Sale and Servicing
Agreement and Section 8.6 herein.

            SECTION 3.14.  GUARANTEES,  LOANS,  ADVANCES AND OTHER  LIABILITIES.
Except as  contemplated  by the Sale and Servicing  Agreement or this Indenture,
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 other Person.

            SECTION 3.15.  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 3.16. COMPLIANCE WITH LAWS. The Issuer shall comply with the
requirements  of all  applicable  laws,  the  non-compliance  with which  would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its  obligations  under the Notes,  this  Indenture or any
Basic Document.

                                       15
<PAGE>

            SECTION 3.17. RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly,  (i) pay any  dividend or make any  distribution  (by  reduction  of
capital or otherwise),  whether in cash,  property,  securities or a combination
thereof,  to the Owner  Trustee  or any owner of a  beneficial  interest  in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the  Issuer  or to the  Servicer,  (ii)  redeem,  purchase,  retire  or
otherwise acquire for value any such ownership or equity interest or security or
(iii)  set  aside or  otherwise  segregate  any  amounts  for any such  purpose;
PROVIDED,  HOWEVER, that the Issuer may make, or cause to be made, distributions
to the Servicer,  the Owner Trustee,  the Insurer, the Indenture Trustee and the
Noteholders  as  permitted  by, and to the extent funds are  available  for such
purpose  under,  the Sale and  Servicing  Agreement,  this  Indenture,  or Trust
Agreement.  The Issuer will not,  directly or  indirectly,  make  payments to or
distributions  from the  Collection  Account  except  in  accordance  with  this
Indenture and the Basic Documents.

            SECTION  3.18.  NOTICE OF RAPID  AMORTIZATION  EVENTS  AND EVENTS OF
SERVICING  TERMINATION.  Upon a Responsible  Officer of the Owner Trustee having
actual knowledge thereof,  the Issuer agrees to give the Indenture Trustee,  the
Insurer and the Rating Agencies prompt written notice of each Rapid Amortization
Event hereunder or Event of Servicing  Termination  under the Sale and Servicing
Agreement.

            SECTION  3.19.  FURTHER  INSTRUMENTS  AND ACTS.  Upon request of the
Indenture  Trustee or the  Insurer,  the Issuer will  execute  and deliver  such
further  instruments and do such further acts as may be reasonably  necessary or
proper to carry out more effectively the purpose of this Indenture.

            SECTION 3.20.  AMENDMENTS OF SALE AND SERVICING  AGREEMENT AND TRUST
AGREEMENT.  The Issuer  shall not agree to any  amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 12.1 of the Trust Agreement to eliminate
the  requirements  thereunder  that the  Indenture  Trustee,  the Insurer or the
Holders of the Notes consent to amendments thereto as provided therein.

            SECTION 3.21. INCOME TAX  CHARACTERIZATION.  For purposes of federal
income,  state and local income and franchise  and any other income  taxes,  the
Issuer and the  Noteholders  will treat the Notes as indebtedness of the Sponsor
and hereby instruct the Indenture  Trustee to treat the Notes as indebtedness of
the Sponsor for federal and state tax reporting purposes.

            SECTION 3.22. REPRESENTATIONS AND WARRANTIES OF THE ISSUER REGARDING
THE LIEN OF THE INDENTURE  TRUSTEE.  With respect to the Collateral,  the Issuer
represents and warrants that, as of the Closing Date:

                  (i) This  Indenture  creates a valid and  continuing  security
      interest (as such term is defined in the UCC) in the  Collateral  in favor
      of the Indenture  Trustee,  which security  interest is prior to all other
      liens, and is enforceable as such against creditors of and purchasers from
      the Issuer;

                  (ii) The Mortgage Notes  constitute  "instruments"  within the
      meaning of the UCC;

                                       16
<PAGE>

                  (iii)  The  Issuer  owns or will own and has or will have good
      title to the Collateral  free and clear of any lien,  claim or encumbrance
      of any Person;

                  (iv) The Issuer has or will have  received  all  consents  and
      approvals required by the terms of the Mortgage Loans to the pledge of the
      Mortgage Loans hereunder to the Indenture Trustee;

                  (v) All original  executed  copies of each  Mortgage Loan have
      been or will be delivered to the Custodian or the Indenture Trustee;

                  (vi)  The  Issuer   has  or  will  have   received  a  written
      acknowledgement  from the  Custodian  or the  Indenture  Trustee  that the
      Custodian  or Indenture  Trustee is holding the  Mortgage  Loans solely on
      behalf  and for the  benefit  of the  Indenture  Trustee  on behalf of the
      Noteholders;

                  (vii)  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 Collateral.  The Issuer has not authorized the filing of and is not
      aware of any  financing  statement  against  the  Issuer  that  includes a
      description  of any of the  Collateral  other than a  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; and

                  (viii) None of the  Mortgage  Notes has or will have any marks
      or notations  indicating  that it has been pledged,  assigned or otherwise
      conveyed to any Person other than the Indenture Trustee.

                                   ARTICLE IV
                           SATISFACTION AND DISCHARGE

            SECTION 4.1.  SATISFACTION AND DISCHARGE OF INDENTURE.  Upon payment
in full to the  Insurer of amounts  due to the  Insurer  and on the Notes,  this
Indenture  shall cease to be of further  effect with respect to the Notes except
as to (i) the rights of registration of transfer and exchange, (ii) substitution
of mutilated,  destroyed,  lost or stolen Notes, (iii) the rights of Noteholders
to receive  payments of principal  thereof and interest  thereon,  (iv) Sections
3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations
and immunities of the Indenture Trustee  hereunder  (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under  Section  4.2) and (vi) the  rights  of  Noteholders  and the  Insurer  as
beneficiaries  hereof  with  respect  to the  property  so  deposited  with  the
Indenture Trustee payable to all or any of them, and the Indenture  Trustee,  on
demand of and at the expense of the Issuer,  shall  execute  proper  instruments
acknowledging  satisfaction  and discharge of this Indenture with respect to the
Notes, when

            either

            (1) all Notes  theretofore  authenticated  and delivered (other than
(i) Notes that have been  destroyed,  lost or stolen and that have been replaced
or paid as  provided in Section  4.5 of the Trust  Agreement  and (ii) Notes for
which payment money has theretofore been deposited

                                       17
<PAGE>

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 3.3) have been
delivered  to  the  Indenture  Trustee  for  cancellation  and  the  Policy  has
terminated  and been  returned to the Insurer for  cancellation  and all amounts
owing to the Insurer have been paid in full; or

            (2) all Notes not theretofore delivered to the Indenture Trustee for
cancellation have become due and payable, and

            (A) the Issuer has irrevocably deposited or caused to be irrevocably
deposited  with  the  Indenture  Trustee  cash  or  direct   obligations  of  or
obligations  guaranteed by the United States of America (which will mature prior
to the date such amounts are payable),  in trust for such purpose,  in an amount
sufficient to pay and discharge the entire  indebtedness  on the Notes,  in each
case to the  extent not  theretofore  delivered  to the  Indenture  Trustee  for
cancellation when due on the Final Scheduled Payment Date or Redemption Date (if
Notes shall have been called for redemption  pursuant to Section  10.1),  as the
case may be;

            (B) the  Issuer  has paid or  caused to be paid all  Insurer  Issuer
Secured Obligations and all Indenture Trustee Issuer Secured Obligations; and

            (C) the  Issuer  has  delivered  to the  Indenture  Trustee  and the
Insurer an Officer's Certificate,  an Opinion of Counsel and, if required by the
TIA, the Indenture  Trustee or the Insurer,  an Independent  Certificate  from a
firm of certified public accountants,  each meeting the applicable  requirements
of  Section  11.1(a)  and each  stating  that all  conditions  precedent  herein
provided  relating to the satisfaction and discharge of this Indenture have been
complied with.

            SECTION 4.2.  APPLICATION OF TRUST MONEY.  All monies deposited with
the Indenture  Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied  by it,  in  accordance  with  the  provisions  of the  Notes  and  this
Indenture,  to the payment, either directly or through any Note Paying Agent, as
the Indenture Trustee may determine,  to the Holders of the particular Notes for
the payment or  redemption  of which such monies  have been  deposited  with the
Indenture  Trustee,  of all sums due and to become due thereon for principal and
interest  and to the  Insurer for the payment of any amounts due to it under the
Basic Documents.

            SECTION  4.3.  REPAYMENT  OF MONIES  HELD BY NOTE PAYING  AGENT.  In
connection with the satisfaction and discharge of this Indenture with respect to
the  Notes,  all  monies  then  held by any Note  Paying  Agent  other  than the
Indenture  Trustee under the  provisions of this  Indenture with respect to such
Notes shall,  upon demand of the Issuer,  be paid to the Indenture Trustee to be
held and applied  according to Section 3.3 and thereupon  such Note Paying Agent
shall be released from all further liability with respect to such monies.

                                    ARTICLE V

                                    REMEDIES

            SECTION 5.1. REMEDIES. If a Rapid Amortization Event as described in
Article XII shall have  occurred and be  continuing,  the  Noteholders  shall be
entitled  on each  Payment  Date to an  amount  equal to the  Maximum  Principal
Payment payable during such Rapid

                                       18
<PAGE>

Amortization  Period.  The rights contained in this Article V are in addition to
any rights which the Noteholders possess pursuant to Article XII.

            SECTION 5.2.  LIMITATION OF SUITS.  No Holder of any Note shall have
any right to institute any  proceeding,  judicial or otherwise,  with respect to
this  Indenture,  or for the  appointment  of a receiver or trustee,  or for any
other remedy hereunder, unless:

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

                  (ii)  the  Holders  of not less  than  50% of the  Outstanding
      Amount of the related  Notes have made  written  request to the  Indenture
      Trustee to institute such  proceeding with respect to the Notes in respect
      of such  Rapid  Amortization  Event in its own name as  Indenture  Trustee
      hereunder;

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

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

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

                  (vi) an Insurer Default shall have occurred and be continuing;

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

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

            SECTION  5.3.   UNCONDITIONAL   RIGHTS  OF  NOTEHOLDERS  TO  RECEIVE
PRINCIPAL AND INTEREST.  Notwithstanding any other provisions in this Indenture,
the  Holder  of  any  Note  shall  have  the  right,   which  is  absolute   and
unconditional,  to receive payment of the principal of and interest,  if any, on
such Note on or after the respective due dates thereof expressed in such Note or
in this  Indenture  (or, in the case of  redemption,  on or after the Redemption
Date) and to institute suit for the  enforcement  of any such payment,  and such
right shall not be impaired without the consent of such Holder.

                                       19
<PAGE>

            SECTION 5.4.  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,  then and in every such case the Issuer,  the Insurer,
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  Insurer  and the  Noteholders  shall  continue  as though no such
proceeding had been instituted.

            SECTION  5.5.  RIGHTS AND  REMEDIES  CUMULATIVE.  No right or remedy
herein  conferred  upon or reserved to the  Controlling  Party or to the related
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 5.6. DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the  Indenture  Trustee,  the Insurer or any Holder of any Note to exercise  any
right or remedy accruing upon any Rapid Amortization Event shall impair any such
right or remedy or constitute a waiver of any such Rapid  Amortization  Event or
an  acquiescence  therein.  Every right and remedy given by this Article V or by
law to the Indenture Trustee, the Insurer or to the Noteholders may be exercised
from time to time,  and as often as may be deemed  expedient,  by the  Indenture
Trustee, the Insurer or by the Noteholders, as the case may be.

            SECTION 5.7. CONTROL BY INSURER AND NOTEHOLDERS. The Insurer (or, if
an Insurer Default shall have occurred and is continuing,  Holders of a majority
of the  Outstanding  Amount of the related Notes) shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available
to the  Indenture  Trustee  pursuant to Section  12.1 hereof with respect to the
Notes or  exercising  any trust or power  conferred  on the  Indenture  Trustee;
provided that:

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

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

PROVIDED,  HOWEVER, that, subject to Section 6.1, the Indenture Trustee need not
take any  action  that it  determines  might  involve it in  liability  or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

            SECTION 5.8.  UNDERTAKING  FOR COSTS.  All parties to this Indenture
agree, and each Holder of any Note by such Holder's  acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture,  or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture  Trustee,  the  filing  by any  party  litigant  in  such  suit  of an
undertaking  to pay the  costs of such  suit,  and that  such  court  may in its
discretion  assess

                                       20
<PAGE>

reasonable costs, including reasonable attorneys' fees and expenses, against any
party  litigant in such suit,  having due regard to the merits and good faith of
the claims or defenses made by such party  litigant;  but the provisions of this
Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b)
any suit instituted by the Insurer, any Noteholder, or group of Noteholders with
the prior  written  consent of the  Insurer  (so long as no Insurer  Default has
occurred),  in  each  case  holding  in  the  aggregate  more  than  10%  of the
Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for
the  enforcement  of the payment of  principal  of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

            SECTION 5.9. 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,  or plead or in any  manner  whatsoever,  claim  or take  the  benefit  or
advantage  of, any stay or extension  law wherever  enacted,  now or at any time
hereafter in force,  that may affect the  covenants or the  performance  of this
Indenture;  and the  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 every such
power as though no such law had been enacted.

            SECTION 5.10. 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,  the Insurer or the  Noteholders  shall be
impaired by the recovery of any judgment by the Indenture Trustee or the Insurer
against the Issuer or by the levy of any execution  under such judgment upon any
portion of the Trust Property or upon any of the assets of the Issuer.

            SECTION 5.11. PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS.

            (a) Promptly  following a request from the Indenture Trustee (at the
direction of the  Insurer) to do so and at the  Servicer's  expense,  the Issuer
agrees to take all such lawful  action as the  Indenture  Trustee may request to
compel or secure the performance and observance by the Sponsor and the Servicer,
as applicable, of each of their obligations to the Issuer under or in connection
with the Sale and Servicing Agreement in accordance with the terms thereof,  and
to  exercise  any and all  rights,  remedies,  powers  and  privileges  lawfully
available  to the  Issuer  under or in  connection  with the Sale and  Servicing
Agreement  to the extent and in the manner  directed by the  Indenture  Trustee,
including the  transmission  of notices of default on the part of the Sponsor or
the Servicer  thereunder and the institution of legal or administrative  actions
or proceedings to compel or secure performance by the Sponsor or the Servicer of
each of their obligations under the Sale and Servicing Agreement.

            (b) If a Rapid  Amortization  Event has occurred and is  continuing,
the Indenture Trustee, with the consent of the Insurer, may, and, at the written
direction  of the Insurer  (or, if (i) an Insurer  Default has  occurred  and is
continuing or (ii) a Rapid Amortization Event described in clause (g) of Section
12.1 has occurred and is continuing,  the Holders of 66-2/3% of the  Outstanding
Amount of the Notes) shall, exercise all rights,  remedies,  powers,  privileges
and  claims of the  Issuer  against  the  Sponsor  or the  Servicer  under or in
connection

                                       21
<PAGE>

with the Sale and Servicing Agreement,  including the right or power to take any
action to compel or secure  performance  or  observance  by the  Sponsor  or the
Servicer of each of their  obligations to the Issuer  thereunder and to give any
consent,  request, notice,  direction,  approval,  extension or waiver under the
Sale and  Servicing  Agreement,  and any right of the Issuer to take such action
shall be suspended.

            SECTION 5.12.  SUBROGATION.  The Indenture  Trustee shall receive as
attorney-in-fact  of each Noteholder any Insured  Amounts or Preference  Amounts
from the  Insurer  pursuant  to the  Policy.  Any and all  Insured  Amounts  and
Preference Amounts disbursed by the Indenture Trustee from claims made under the
Policy shall not be  considered  payment by the Issuer,  and shall not discharge
the  obligations of the Issuer with respect  thereto.  The Insurer shall, to the
extent it makes any payment with respect to the Notes,  become subrogated to the
rights of the recipient of such payments to the extent of such payments. Subject
to and conditioned upon any payment with respect to the Notes by or on behalf of
the Insurer, the Indenture Trustee shall assign to the Insurer all rights to the
payment of interest or  principal  with  respect to the Notes which are then due
for payment to the extent of all payments made by the Insurer.

            SECTION 5.13. PREFERENCE CLAIMS.

            (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate  court that any Insured Amount on a Note has
been  avoided  in  whole or in part as a  preference  payment  under  applicable
bankruptcy law, the Indenture Trustee shall so notify the Insurer,  shall comply
with the  provisions  of the  Policy to obtain  payment  by the  Insurer of such
avoided  payment,  and shall,  at the time it  provides  notice to the  Insurer,
notify  Holders  of the Notes by mail that,  in the event that any  Noteholder's
payment is so recoverable,  such Noteholder will be entitled to payment pursuant
to the terms of the Policy.  The Indenture  Trustee shall furnish to the Insurer
at its  written  request,  the  requested  records  it holds  in its  possession
evidencing  the payments of principal  of and interest on Notes,  if any,  which
have  been  made  by the  Indenture  Trustee  and  subsequently  recovered  from
Noteholders  and the dates on which such  payments  were made.  Pursuant  to the
terms of the Policy, the Insurer will make such payment on behalf of the related
Noteholder  to the  receiver,  conservator,  debtor-in-possession  or trustee in
bankruptcy  named in the final  order of the court  exercising  jurisdiction  on
behalf of the  Noteholders  and not to the  Indenture  Trustee,  any  Noteholder
directly (unless such Noteholder has returned  principal or interest paid on the
Notes to such receiver or trustee in bankruptcy, in which case the Insurer shall
make such payment to the  Indenture  Trustee for payment to such  Noteholder  in
accordance with the terms of the Policy).

            (b) The Indenture  Trustee shall promptly  notify the Insurer of any
proceeding or the institution of any action (of which the Indenture  Trustee has
actual  knowledge)  seeking  the  avoidance  as a  preferential  transfer  under
applicable bankruptcy, insolvency,  receivership,  rehabilitation or similar law
(a "PREFERENCE  CLAIM") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Indenture Trustee hereby agree that so
long as an  Insurer  Default  shall not have  occurred  and be  continuing,  the
Insurer may at any time during the continuation of any proceeding  relating to a
Preference  Claim  direct  all  matters  relating  to  such  Preference   Claim,
including,  without  limitation,  (i) the  direction  of any appeal of any order
relating to any Preference Claim and (ii) the posting of any surety,  supersedes
or

                                       22
<PAGE>

performance  bond  pending any such appeal at the  expense of the  Insurer,  but
subject to  reimbursement as provided in the Insurance  Agreement.  In addition,
and without  limitation  of the  foregoing,  as set forth in Section  5.12,  the
Insurer shall be subrogated to, and each  Noteholder  and the Indenture  Trustee
hereby delegate and assign,  to the fullest extent  permitted by law, the rights
of the Indenture  Trustee and each  Noteholder in the conduct of any  proceeding
with respect to a Preference Claim, including, without limitation, all rights of
any party to an  adversary  proceeding  action  with  respect to any court order
issued in connection  with any such  Preference  Claim.  All actions taken under
this Section 5.13(b) by the Indenture  Trustee shall be taken in accordance with
the terms of the Policy.

            SECTION 5.14.  NOTEHOLDER RIGHTS.  Each Noteholder by the acceptance
of its Note  agrees  that,  so long as no Insurer  Default has  occurred  and is
continuing, the Insurer shall be treated by the Issuer, the Seller, the Sponsor,
the Servicer, the Owner Trustee and the Indenture Trustee as if the Insurer were
the Holder of the Note for the purpose of the giving of any consent,  the making
of any direction or the exercise of any voting or other control rights otherwise
given to the Noteholder hereunder without any further consent of the Noteholder.
So long as no Insurer  Default has occurred and is continuing,  the  Noteholders
may only exercise such rights with the consent of the Insurer.

            SECTION 5.15.  INSURER'S  RIGHTS REGARDING  ACTIONS,  PROCEEDINGS OR
INVESTIGATIONS.  Until all Notes have been paid in full, all amounts owed to the
Insurer have been paid in full,  the Insurance  Agreement has terminated and the
Policy  has  been  returned  to the  Insurer  for  cancellation,  the  following
provisions shall apply:

            (a) Notwithstanding  anything contained herein or in the other Basic
Documents to the contrary,  the Insurer shall have the right to participate  in,
to direct the  enforcement or defense of, and, at the Insurer's sole option,  to
institute or assume the defense of, any action, proceeding or investigation that
could adversely  affect the Issuer,  the  Collateral,  the Trust Property or the
rights or obligations of the Insurer  hereunder or under the Policy or the Basic
Documents,   including   (without   limitation)  any  insolvency  or  bankruptcy
proceeding in respect of the Servicer,  the Seller,  the Sponsor,  the Issuer or
any affiliate thereof.  Following notice to the Indenture  Trustee,  the Insurer
shall have exclusive  right to determine,  in its sole  discretion,  the actions
necessary  to preserve  and protect the Issuer,  the  Collateral,  and the Trust
Property.  All costs and expenses of the Insurer in connection with such action,
proceeding or  investigation,  including  (without  limitation)  any judgment or
settlement entered into affecting the Insurer or the Insurer's interests,  shall
be included in the Reimbursement Amount.

            (b) In connection with any action,  proceeding or investigation that
could adversely  affect the Issuer,  the  Collateral,  the Trust Property or the
rights or obligations of the Insurer  hereunder or under the Policy or the Basic
Documents,   including   (without   limitation)  any  insolvency  or  bankruptcy
proceeding in respect of the Servicer,  the Seller,  the Sponsor,  the Issuer or
any affiliate  thereof,  the Indenture  Trustee hereby agrees to cooperate with,
and to take  such  action  as  directed  by,  the  Insurer,  including  (without
limitation)  entering into such  agreements and settlements as the Insurer shall
direct, in its sole discretion, without the consent of any Noteholder.

                                       23
<PAGE>

            (c) The  Indenture  Trustee  hereby agrees to provide to the Insurer
prompt written notice of any action,  proceeding or investigation that names the
Issuer or the Indenture  Trustee as a party or that could  adversely  affect the
Issuer,  the Collateral,  the Trust Property or the rights or obligations of the
Insurer hereunder or under the Policy or the Basic Documents, including (without
limitation) any insolvency or bankruptcy  proceeding in respect of the Servicer,
the Seller, the Sponsor, the Trust or any affiliate thereof.

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

            (e) Each  Noteholder,  by acceptance of its Note,  and the Indenture
Trustee  agree  that the  Insurer  shall  have such  rights as set forth in this
Section,  which are in  addition  to any rights of the  Insurer  pursuant to the
other  provisions  of the Basic  Documents,  that the  rights  set forth in this
Section may be  exercised by the Insurer,  in its sole  discretion,  without the
need for the consent or approval of any  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 Insurer to  exercise  any of the rights  provided  for
herein.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

            SECTION 6.1. DUTIES OF INDENTURE TRUSTEE.

            (a) If a Rapid  Amortization  Event has occurred and is  continuing,
the Indenture  Trustee shall exercise the rights and powers vested in it by this
Indenture  and the Basic  Documents and use the same degree of care and skill in
its exercise as a prudent person would  exercise or use under the  circumstances
in the conduct of such  person's own  affairs;  PROVIDED,  HOWEVER,  that if the
Indenture  Trustee is acting as  Servicer,  it shall use the same degree of care
and skill as is required of the Servicer under the Sale and Servicing Agreement.

            (b) Except during the continuance of a Rapid Amortization Event

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

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

                                       24
<PAGE>

            (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;

                  (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 5.12; and

                  (iv) the Indenture Trustee shall not be charged with knowledge
      of any  failure by the  Servicer  to comply  with the  obligations  of the
      Servicer  referred  to in  clause  (ii) of  Section  6.01 of the  Sale and
      Servicing  Agreement unless a Responsible Officer of the Indenture Trustee
      at the Corporate Trust Office obtains actual  knowledge of such failure or
      occurrence  or the  Indenture  Trustee  receives  written  notice  of such
      failure or  occurrence  from the  Servicer,  the Insurer or the Holders of
      Notes evidencing more than 50% of the Outstanding Amount.

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

            (f) 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.

            (g) The Indenture  Trustee  shall,  upon three  Business Days' prior
written  notice to the  Indenture  Trustee,  permit  any  representative  of the
Insurer,  during the Indenture  Trustee's  normal business hours, to examine all
books of account,  records,  reports and other papers of the  Indenture  Trustee
relating to the Notes,  to make copies and extracts (at the expense of the party
requesting  such copies or  extracts)  therefrom  and to discuss  the  Indenture
Trustee's  affairs  and  actions,  as such  affairs  and  actions  relate to the
Indenture  Trustee's  duties  with  respect  to the  Notes,  with the  Indenture
Trustee's  officers and  employees  responsible  for carrying out the  Indenture
Trustee's duties with respect to the Notes.

            (h) The  Indenture  Trustee  shall,  and hereby agrees that it will,
perform  all of the  obligations  and duties  required  of it under the Sale and
Servicing Agreement.

                                       25
<PAGE>

            (i) The  Indenture  Trustee  shall,  and hereby agrees that it will,
hold the Policy in trust,  and will hold any proceeds of any claim on the Policy
in trust solely for the use and benefit of the Noteholders.

            (j) In no event shall The Bank of New York, in any of its capacities
hereunder,  be deemed to have assumed any duties of the Owner  Trustee under the
Delaware Business Trust Statute, common law, or the Trust Agreement.

            SECTION 6.2. RIGHTS OF INDENTURE TRUSTEE.

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

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

            (c) The  Indenture  Trustee  may execute any of the trusts or powers
hereunder  or perform  any duties  hereunder  either  directly  or by or through
agents or attorneys or a custodian or nominee and the  Indenture  Trustee  shall
not be liable  for the  negligence  of such  agents,  attorneys,  custodians  or
nominees appointed (i) with due care and (ii) with the consent of the Insurer.

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

            (e) The Indenture Trustee may consult with counsel of its selection,
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.

            (f) The Indenture Trustee shall be under no obligation to institute,
conduct or defend any  litigation  under this  Indenture  or in relation to this
Indenture,  at the request, order or direction of any of the Holders of Notes or
the Controlling Party, pursuant to the provisions of this Indenture, unless such
Holders of Notes or the  Controlling  Party shall have offered to the  Indenture
Trustee security or indemnity  reasonably  satisfactory to it against the costs,
expenses  and  liabilities  that may be incurred  therein or thereby;  PROVIDED,
HOWEVER,  that the  Indenture  Trustee  shall,  upon the  occurrence  of a Rapid
Amortization Event or Event of Servicing  Termination as defined in the Sale and
Servicing Agreement (that has not been cured or waived), exercise the rights and
powers vested in it by this  Indenture or the Sale and Servicing  Agreement with
reasonable care and skill.

                                       26
<PAGE>

            (g)  The   Indenture   Trustee  shall  not  be  bound  to  make  any
investigation  into the facts or matters stated in any resolution,  certificate,
statement,   instrument,  opinion,  report,  notice,  request,  consent,  order,
approval, bond or other paper or document,  unless requested in writing to do so
by the  Insurer or by the Holders of Notes  evidencing  not less than 25% of the
Outstanding  Amount  thereof;  PROVIDED,  HOWEVER,  that if the payment within a
reasonable time to the Indenture  Trustee of the costs,  expenses or liabilities
likely  to be  incurred  by it in the  making of such  investigation  is, in the
opinion of the  Indenture  Trustee,  not  reasonably  assured  to the  Indenture
Trustee by the  security  afforded to it by the terms of this  Indenture  or the
Sale and  Servicing  Agreement,  the  Indenture  Trustee may  require  indemnity
reasonably  satisfactory  to it against  such cost,  expense or  liability  as a
condition to so  proceeding;  the reasonable  expense of every such  examination
shall be paid by the Person  making such  request,  or, if paid by the Indenture
Trustee shall be reimbursed by the Person making such request upon demand.

            (h) The Indenture  Trustee shall not be  accountable,  shall have no
liability and makes no representation  as to any acts or omissions  hereunder of
the Servicer until such time as the Indenture  Trustee may be required to act as
Servicer.

            SECTION 6.3.  INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE.  The Indenture
Trustee in its  individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates  with the same
rights it would have if it were not  Indenture  Trustee.  Any Note Paying Agent,
Note  Registrar,  co-registrar  or  co-paying  agent  may do the same  with like
rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

            SECTION 6.4. INDENTURE TRUSTEE'S  DISCLAIMER.  The Indenture Trustee
shall not be responsible for and makes no  representation  as to the validity or
adequacy of this  Indenture,  the Trust  Property or the Notes,  it shall not be
accountable  for the Issuer's use of the proceeds  from the Notes,  and it shall
not be  responsible  for any  statement of the Issuer in the Indenture or in any
document  issued in connection  with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

            SECTION  6.5.  NOTICE OF RAPID  AMORTIZATION  EVENTS  AND  EVENTS OF
SERVICING  TERMINATION.  If a Rapid Amortization Period or an Event of Servicing
Termination  occurs and is  continuing  and if it is either known by, or written
notice of the existence thereof has been delivered to, a Responsible  Officer of
the  Indenture  Trustee,  the  Indenture  Trustee shall (i) promptly mail to the
Insurer  notice of such event,  and (ii) within 90 days after such  knowledge or
notice occurs,  mail to each Noteholder notice of such event. Except in the case
of a default in payment of principal of or interest on any Note,  the  Indenture
Trustee may withhold the notice to the  Noteholders if and so long as one of its
Responsible  Officers in good faith determines that withholding the notice is in
the interests of  Noteholders;  provided  that the  Indenture  Trustee shall not
withhold any such notice to the Insurer.

            SECTION 6.6. REPORTS BY INDENTURE  TRUSTEE TO HOLDERS.  Upon written
request,  the Note Paying  Agent or the  Servicer  shall on behalf of the Issuer
deliver to each  Noteholder  such  information as may be reasonably  required to
enable such Holder to prepare its federal and state income tax returns  required
by law.

                                       27
<PAGE>

            SECTION 6.7. COMPENSATION AND INDEMNITY.

            (a) Pursuant to Section 8.7 and subject to Section 6.10 herein,  the
Issuer shall, or shall cause the Servicer to, pay to the Indenture  Trustee from
time to time  compensation  as agreed to in writing between the Servicer and the
Indenture Trustee for its services.  The Indenture Trustee's  compensation shall
not be limited by any law on compensation of a trustee of an express trust.  The
Issuer shall or shall cause the Servicer to reimburse the Indenture  Trustee for
all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection,  in addition to the  compensation  for its  services.  Such expenses
shall  include the  reasonable  compensation  and  expenses,  disbursements  and
advances of the Indenture  Trustee's agents,  counsel,  accountants and experts.
The Issuer shall or shall cause the Servicer to indemnify the Indenture  Trustee
and its respective officers, directors, employees and agents against any and all
loss, liability or expense (including  attorneys' fees and expenses) incurred by
each of them in connection  with the  acceptance or the  administration  of this
trust and the  performance  of its  duties  hereunder  or under any other  Basic
Document.  The  Indenture  Trustee  shall  notify the  Issuer  and the  Servicer
promptly of any claim for which it may seek indemnity.  Failure by the Indenture
Trustee to so notify the Issuer and the Servicer shall not relieve the Issuer of
its obligations  hereunder or the Servicer of its obligations under Article VIII
of the Sale and  Servicing  Agreement.  The  Issuer  shall  or shall  cause  the
Servicer to defend the claim,  the Indenture  Trustee may have separate  counsel
and the Issuer shall or shall cause the Servicer to pay the fees and expenses of
such counsel.  Neither the Issuer nor the Servicer need reimburse any expense or
indemnify  against any loss,  liability  or expense  incurred  by the  Indenture
Trustee through the Indenture  Trustee's own willful  misconduct,  negligence or
bad faith.

            (b)  The  Issuer's  payment  obligations  to the  Indenture  Trustee
pursuant  to this  Section  shall  survive  the  discharge  of  this  Indenture.
Notwithstanding  anything  else  set  forth  in  this  Indenture  or  the  Basic
Documents,  the Indenture Trustee agrees that the obligations of the Issuer (but
not the  Servicer)  to the  Indenture  Trustee  hereunder  and  under  the Basic
Documents  shall be recourse to the Trust Property only and  specifically  shall
not be recourse to the assets of the Issuer or any Noteholder.  In addition, the
Indenture Trustee agrees that its recourse to the Issuer, the Trust Property and
the Sponsor shall be limited to the right to receive the distributions  referred
to in Section 8.7 herein.

            SECTION 6.8. REPLACEMENT OF INDENTURE TRUSTEE. The Indenture Trustee
may resign at any time by so  notifying  the  Issuer and the  Insurer by written
notice.  Upon  receiving such notice of  resignation,  the Issuer shall promptly
appoint a successor  Indenture Trustee  (approved in writing by the Insurer,  so
long as such approval is not unreasonably  withheld) by written  instrument,  in
duplicate,  one copy of such  instrument  shall be  delivered  to the  resigning
Indenture Trustee (who shall deliver a copy to the Servicer and the Insurer) and
one copy to the successor Indenture Trustee;  PROVIDED,  HOWEVER,  that any such
successor  Indenture  Trustee shall be subject to the prior written  approval of
the Servicer.  The Issuer may, and at the request of the Insurer  shall,  remove
the Indenture Trustee, if:

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

                  (ii) a court having jurisdiction in the premises in respect of
      the Indenture  Trustee in an involuntary  case or proceeding under federal
      or state banking or

                                       28
<PAGE>

      bankruptcy laws, as now or hereafter constituted,  or any other applicable
      federal or state  bankruptcy,  insolvency or other similar law, shall have
      entered  a decree  or order  granting  relief or  appointing  a  receiver,
      liquidator,  assignee, custodian,  trustee, conservator,  sequestrator (or
      similar official) for the Indenture Trustee or for any substantial part of
      the  Indenture   Trustee's   property,   or  ordering  the  winding-up  or
      liquidation of the Indenture Trustee's affairs;

                  (iii) an involuntary  case under the federal  bankruptcy laws,
      as now or hereafter  in effect,  or another  present or future  federal or
      state  bankruptcy,  insolvency or similar law is commenced with respect to
      the Indenture Trustee and such case is not dismissed within 60 days;

                  (iv) the Indenture  Trustee  commences a voluntary  case under
      any  federal or state  banking or  bankruptcy  laws,  as now or  hereafter
      constituted,   or  any  other  applicable  federal  or  state  bankruptcy,
      insolvency  or other  similar  law, or consents to the  appointment  of or
      taking possession by a receiver, liquidator, assignee, custodian, trustee,
      conservator,  sequestrator  (or other similar  official) for the Indenture
      Trustee or for any substantial part of the Indenture  Trustee's  property,
      or makes any assignment for the benefit of creditors or fails generally to
      pay its debts as such debts  become due or takes any  corporate  action in
      furtherance of any of the foregoing;

                  (v) the  Indenture  Trustee  otherwise  becomes  incapable  of
      acting; or

                  (vi) the Indenture Trustee materially breaches any covenant or
      obligation under the Basic Documents.

            Additionally,  the Issuer shall remove the Indenture  Trustee at the
request of the Insurer.

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

            A successor  Indenture Trustee shall deliver a written acceptance of
its  appointment to the retiring  Indenture  Trustee,  to the Insurer and to 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  retiring  Indenture  Trustee  under  this
Indenture. The successor Indenture Trustee shall mail a notice of its succession
to  Noteholders.  The retiring  Indenture  Trustee shall  promptly  transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

            If a successor Indenture Trustee does not take office within 30 days
after the  retiring  Indenture  Trustee  resigns  or is  removed,  the  retiring
Indenture  Trustee,  the Issuer,  the  Insurer,  or the Holders of a majority in
Outstanding  Amount of the Notes may, at the expense of the  Servicer,  petition
any court of competent jurisdiction for the appointment of a successor Indenture
Trustee acceptable to the Insurer.

                                       29
<PAGE>

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

            Any resignation or removal of the Indenture  Trustee and appointment
of a  successor  Indenture  Trustee  pursuant to any of the  provisions  of this
Section  shall not become  effective  until  acceptance  of  appointment  by the
successor  Indenture Trustee pursuant to Section 6.8 and payment of all fees and
expenses owed to the outgoing Indenture Trustee.

            Notwithstanding the replacement of the Indenture Trustee pursuant to
this  Section,  the  Issuer's and the  Servicer's  indemnity  obligations  under
Section 6.7 shall continue for the benefit of the retiring Indenture Trustee and
the Servicer shall pay any amounts owing to the Indenture Trustee.

            SECTION 6.9. SUCCESSOR INDENTURE TRUSTEE BY MERGER. If the Indenture
Trustee  consolidates  with,  merges  or  converts  into,  or  transfers  all or
substantially  all of  its  corporate  trust  business  or  assets  to,  another
corporation  or banking  association,  the  resulting,  surviving or  transferee
corporation  without any further act shall be the successor  Indenture  Trustee,
provided that such entity meets the  requirements  of Section 6.11 hereunder and
is otherwise  acceptable to the Insurer  (unless an Insurer Default has occurred
and is continuing). The Indenture Trustee shall provide Insurer and the Servicer
with at least 30 days notice of any such transaction.

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

            SECTION  6.10.  APPOINTMENT  OF  CO-INDENTURE  TRUSTEE  OR  SEPARATE
INDENTURE TRUSTEE.

            (a) Notwithstanding  any other provisions of this Indenture,  at any
time, for the purpose of meeting any legal  requirement of any  jurisdiction  in
which any part of the Trust may at the time be located,  the Indenture  Trustee,
with the  consent  of the  Insurer,  shall  have the power and may  execute  and
deliver all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust,  and to vest in such  Person or  Persons,  in such  capacity  and for the
benefit of the  Noteholders,  such title to the Trust, or any part hereof,  and,
subject  to  the  other  provisions  of  this  Section,  such  powers,   duties,
obligations,  rights and trusts as the Indenture Trustee may consider  necessary
or desirable.

                                       30
<PAGE>

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

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

                  (iii) the Indenture  Trustee and the Servicer  acting  jointly
      may at any time accept the  resignation of or remove any separate  trustee
      or  co-trustee  except  that  following  the  occurrence  of an  Event  of
      Servicing  Termination,  the Indenture Trustee acting alone may accept the
      resignation of or remove any separate trustee or co-trustee.

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

            (d) Any separate  trustee or co-trustee  may at any time  constitute
the  Indenture  Trustee,  its  agent or  attorney-in-fact  with  full  power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, dissolve, become insolvent, 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.

            (e) The Servicer shall be responsible for the fees of any co-trustee
or separate trustee appointed hereunder.

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            SECTION 6.11. ELIGIBILITY;  DISQUALIFICATION.  The Indenture Trustee
shall at all times satisfy the  requirements  of TIA ss.  310(a).  The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent  published  annual report of  condition.  The Indenture
Trustee  shall provide  copies of such reports to the Insurer upon request.  The
Indenture  Trustee  shall  comply with TIA ss.  310(b),  including  the optional
provision  permitted  by the second  sentence  of TIA ss.  310(b)(9);  PROVIDED,
HOWEVER,  that there shall be excluded from the  operation of TIA ss.  310(b)(1)
any  indenture  or  indentures  under which other  securities  of the Issuer are
outstanding  if the  requirements  for  such  exclusion  set  forth  in TIA  ss.
310(b)(1) are met.

            SECTION 6.12.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The
Indenture  Trustee  shall  comply with TIA ss.  311(a),  excluding  any creditor
relationship  listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

            SECTION  6.13.  APPOINTMENT  AND  POWERS.  Subject  to the terms and
conditions  hereof,  each of the Issuer Secured Parties hereby appoints The Bank
of New York as the  Indenture  Trustee with respect to the  Collateral,  and The
Bank of New York hereby accepts such  appointment and agrees to act as Indenture
Trustee with respect to the Trust  Property for the Issuer Secured  Parties,  to
maintain  custody and  possession  of such Trust  Property  (except as otherwise
provided  hereunder) and to perform the other duties of the Indenture Trustee in
accordance with the provisions of this Indenture and the other Basic  Documents.
Each Issuer Secured Party hereby  authorizes the Indenture  Trustee to take such
action  on its  behalf,  and to  exercise  such  rights,  remedies,  powers  and
privileges   hereunder,   as  the  Controlling  Party  may  direct  and  as  are
specifically  authorized to be exercised by the  Indenture  Trustee by the terms
hereof, together with such actions, rights,  remedies,  powers and privileges as
are reasonably  incidental thereto.  The Indenture Trustee shall act upon and in
compliance  with the  written  instructions  delivered  to it  pursuant  to this
Indenture promptly following receipt of such written instructions; PROVIDED that
the  Indenture  Trustee shall not act in accordance  with any  instructions  (i)
which  are not  authorized  by,  or in  violation  of the  provisions  of,  this
Indenture or (ii) for which the  Indenture  Trustee has not received  reasonable
indemnity. Receipt of such instructions shall not be a condition to the exercise
by the  Indenture  Trustee of its express  duties  hereunder,  except where this
Indenture provides that the Indenture Trustee is permitted to act only following
and in accordance with such instructions.

            SECTION 6.14.  PERFORMANCE  OF DUTIES.  The Indenture  Trustee shall
have no duties or  responsibilities  except  those  expressly  set forth in this
Indenture  and the other Basic  Documents  to which the  Indenture  Trustee is a
party or as directed by the Controlling Party in accordance with this Indenture.
The Indenture  Trustee shall not be required to take any  discretionary  actions
hereunder except at the written  direction and with the  indemnification  of the
Controlling  Party. The Indenture Trustee shall, and hereby agrees that it will,
perform  all of the duties  and  obligations  required  of it under the Sale and
Servicing Agreement.

            SECTION 6.15. LIMITATION ON LIABILITY. Neither the Indenture Trustee
nor any of its directors, officers, employees and agents shall be liable for any
action taken or omitted to be taken by it or them  hereunder,  or in  connection
herewith,  except that the Indenture Trustee shall be liable for its negligence,
bad faith or willful misconduct;  nor shall the Indenture Trustee

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be  responsible  for  the  validity,   effectiveness,   value,   sufficiency  or
enforceability against the Issuer of this Indenture or any of the Trust Property
(or any part thereof).

            SECTION 6.16. RELIANCE UPON DOCUMENTS. In the absence of negligence,
bad faith or willful  misconduct  on its part,  the  Indenture  Trustee shall be
entitled to conclusively rely on any communication,  instrument,  paper or other
document  reasonably  believed  by it to be genuine and correct and to have been
signed or sent by the proper  Person or Persons and shall have no  liability  in
acting,  or  omitting  to  act,  where  such  action  or  omission  to act is in
reasonable reliance upon any statement or opinion contained in any such document
or instrument.

            SECTION  6.17.  REPRESENTATIONS  AND  WARRANTIES  OF  THE  INDENTURE
TRUSTEE. The Indenture Trustee represents and warrants to the Issuer and to each
Issuer Secured Party as follows:

            (a) DUE  ORGANIZATION.  The Indenture  Trustee is a New York banking
corporation,  duly  organized,  validly  existing and in good standing under the
laws  of the  State  of New  York  and is duly  authorized  and  licensed  under
applicable law to conduct its business as presently conducted.

            (b) CORPORATE POWER. The Indenture  Trustee has all requisite right,
power and authority to execute and deliver this  Indenture and to perform all of
its duties as the Indenture Trustee hereunder.

            (c) DUE  AUTHORIZATION.  The execution and delivery by the Indenture
Trustee of this Indenture and the other Basic  Documents to which it is a party,
and the  performance  by the  Indenture  Trustee  of its  duties  hereunder  and
thereunder,  have been duly authorized by all necessary  corporate  proceedings,
are required for the valid execution and delivery by the Indenture  Trustee,  or
the performance by the Indenture Trustee, of this Indenture and such other Basic
Documents.

            (d) VALID AND  BINDING  INDENTURE.  The  Indenture  Trustee has duly
executed and delivered  this Indenture and each other Basic Document to which it
is a party,  and each of this  Indenture  and each  such  other  Basic  Document
constitutes the legal,  valid and binding  obligation of the Indenture  Trustee,
enforceable  against the Indenture Trustee in accordance with its terms,  except
as  (i)  such   enforceability   may  be  limited  by  bankruptcy,   insolvency,
reorganization  and similar laws  relating to or affecting  the  enforcement  of
creditors' rights generally and (ii) the availability of equitable  remedies may
be limited by equitable principles of general applicability.

            SECTION  6.18.  WAIVER OF  SETOFFS.  The  Indenture  Trustee  hereby
expressly  waives any and all rights of setoff  that the  Indenture  Trustee may
otherwise at any time have under  applicable law with respect to any Account and
agrees  that  amounts  in the  Accounts  shall at all times be held and  applied
solely in accordance with the provisions hereof.

            SECTION  6.19.  CONTROL  BY THE  CONTROLLING  PARTY.  The  Indenture
Trustee shall comply with notices and  instructions  given by the Issuer only if
accompanied  by the written

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<PAGE>

consent of the  Controlling  Party.  The  Indenture  Trustee  shall act upon and
comply with notices and instructions given by the Controlling Party alone.

            SECTION  6.20.   INDENTURE   TRUSTEE  MAY  ENFORCE   CLAIMS  WITHOUT
POSSESSION OF NOTES. All rights of action and claims under this Indenture or the
Notes may be  prosecuted  and  enforced  by the  Indenture  Trustee  without the
possession  of any of the  Notes or the  production  thereof  in any  proceeding
relating thereto, and such proceeding  instituted by the Indenture Trustee shall
be brought in its own name or in its capacity as Indenture Trustee. Any recovery
of  judgment   shall,   after  provision  for  the  payment  of  the  reasonable
compensation,  expenses, disbursement and advances of the Indenture Trustee, its
agents and counsel,  be for the ratable benefit of the Noteholders in respect of
which such judgment has been recovered.

            SECTION 6.21. SUITS FOR  ENFORCEMENT.  In case an Event of Servicing
Termination  or other  default by the  Servicer or the Sponsor  hereunder  shall
occur and be  continuing,  the  Controlling  Party may  proceed to  protect  and
enforce its rights and the rights of the  Noteholders  under this Indenture by a
suit,  action or proceeding  in equity or at law or  otherwise,  whether for the
specific performance of any covenant or agreement contained in this Indenture or
in aid of the  execution  of any  power  granted  in this  Indenture  or for the
enforcement  of any other legal,  equitable or other  remedy,  as the  Indenture
Trustee,  being  advised by counsel,  shall deem most  effectual  to protect and
enforce any of the rights of the Indenture Trustee and the Noteholders.

            SECTION  6.22.  MORTGAGOR  CLAIMS.  In  connection  with any  offset
defenses,  or affirmative claim for recovery,  asserted in legal actions brought
by Mortgagors under one or more Mortgage Loans based upon provisions  therein or
upon other rights or remedies arising from any requirements of law applicable to
the Mortgage Loans:

            (a) The Indenture  Trustee is the holder of the Mortgage  Loans only
as trustee on behalf of the holders of the Notes and the  Insurer,  and not as a
principal or in any individual or personal capacity.

            (b) The Indenture  Trustee  shall not be  personally  liable for, or
obligated  to pay  Mortgagors,  any  affirmative  claims  asserted  thereby,  or
responsible  to  holders  of the Notes for any offset  defense  amounts  applied
against Mortgage Loan payments, pursuant to such legal actions.

            (c) The  Indenture  Trustee will pay,  solely from the Trust Estate,
affirmative  claims for recovery by Mortgagors  only pursuant to final  judicial
orders or judgments,  or judicially-approved  settlement  agreements,  resulting
from such legal actions.

            (d) The  Indenture  Trustee  will  comply with  judicial  orders and
judgments   which  require  its  actions  or  cooperation  in  connection   with
Mortgagors' legal actions to recover  affirmative  claims against holders of the
Notes.

            (e) The  Indenture  Trustee  will  cooperate  with  and  assist  the
Servicer, the Insurer, the Issuer, the Sponsor, or holders of the Notes in their
defense of legal  actions by Mortgagors  to recover  affirmative  claims if such
cooperation  and  assistance  is not contrary to the  interests of the Indenture
Trustee  as a party  to such  legal  actions  and if the  Indenture  Trustee  is

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<PAGE>

satisfactorily  indemnified  for all  liability,  costs and expenses  (including
attorneys' fees and expenses) arising therefrom.

            (f) The Issuer and Servicer hereby agree to indemnify, hold harmless
and defend the Indenture  Trustee from and against any and all liability,  loss,
costs and expenses  (including  attorneys'  fees and  expenses) of the Indenture
Trustee resulting from any affirmative claims for recovery asserted or collected
by Mortgagors under the Mortgage Loans.

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

            SECTION  7.1.  ISSUER TO  FURNISH  TO  INDENTURE  TRUSTEE  NAMES AND
ADDRESSES  OF  NOTEHOLDERS.  The Issuer will furnish or cause to be furnished to
the Indenture  Trustee (a) not more than five days after the earlier of (i) each
Record Date and (ii) three months  after the last Record  Date, a list,  in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders as of such Record Date,  (b) at such other times as the Indenture
Trustee may request in  writing,  within 30 days after  receipt by the Issuer of
any such request,  a list of similar form and content as of a date not more than
10 days prior to the time such list is  furnished;  PROVIDED,  HOWEVER,  that so
long as the  Indenture  Trustee  is the Note  Registrar,  no such list  shall be
required to be furnished.  The Indenture Trustee or, if the Indenture Trustee is
not the Note Registrar, the Issuer shall furnish to the Insurer or the Issuer in
writing upon their written request and at such other times as the Insurer or the
Issuer may request a copy of the list.

            SECTION  7.2.   PRESERVATION  OF  INFORMATION;   COMMUNICATIONS   TO
NOTEHOLDERS.

            (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable,  the names and addresses of the Holders contained in the
most recent list  furnished to the Indenture  Trustee as provided in Section 7.1
and the names and addresses of Holders received by the Indenture  Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished
to it as provided in such Section 7.1 upon receipt of a new list so furnished.

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

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

            SECTION 7.3. REPORTS BY ISSUER.

            (a) The Issuer shall:

                  (i)  file  with  the  Indenture  Trustee  (with  a copy to the
      Insurer),  within 15 days  after the Issuer is  required  to file the same
      with the  Commission,  copies  of the  annual  reports  and  copies of the
      information,  documents  and other  reports (or copies of such portions of
      any of the foregoing as the  Commission may from time to time by rules

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<PAGE>

      and regulations  prescribe)  which the Issuer may be required to file with
      the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

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

                  (iii)  supply  to the  Indenture  Trustee  (and the  Indenture
      Trustee  shall  transmit by mail to all  Noteholders  described in TIA ss.
      313(c))  (with a copy to the Insurer) such  summaries of any  information,
      documents  and  reports  required  to be filed by the Issuer  pursuant  to
      clauses  (i) and (ii) of this  Section  7.3(a) as may be required by rules
      and regulations prescribed from time to time by the Commission.

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

            SECTION 7.4.  REPORTS BY INDENTURE  TRUSTEE.  If required by TIA ss.
313(a), within 60 days after each December 31, beginning with December 31, 2003,
the Indenture Trustee shall mail to each Noteholder (with a copy to the Insurer)
as required by TIA ss. 313(c) a brief report dated as of such date that complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b).

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

                                  ARTICLE VIII

        PAYMENTS AND STATEMENTS TO NOTEHOLDERS AND RESIDUAL NOTEHOLDERS;
                      ACCOUNTS, DISBURSEMENTS AND RELEASES

            SECTION 8.1.  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 and the Sale
and  Servicing  Agreement.  The  Indenture  Trustee  shall  apply all such money
received  by it as  provided  in this  Indenture  and  the  Sale  and  Servicing
Agreement.  Except as otherwise  expressly  provided in this Indenture or in the
Sale and Servicing Agreement, if any default occurs in the making of any payment
or  performance  under any  agreement  or  instrument  that is part of the Trust
Property, the Indenture Trustee may, with the consent of the Insurer (so long as
no Insurer Default has occurred and is continuing), or shall at the direction of
the Insurer (so long as no Insurer Default has occurred and is continuing), take
such  action as may be  appropriate  to enforce  such  payment  or  performance,
including the institution and prosecution of appropriate proceedings.

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<PAGE>

            SECTION 8.2. RELEASE OF TRUST PROPERTY.

            (a) Subject to Section 8.10 and the payment of its fees and expenses
pursuant to Section 6.7,  the  Indenture  Trustee may, and when  required by the
Issuer and the  provisions  of this  Indenture  shall,  execute  instruments  to
release  property  from  the  lien of this  Indenture,  in a  manner  and  under
circumstances that are not inconsistent with the provisions of this Indenture or
the Sale and Servicing  Agreement.  In the event that the fair value of property
to be released  from the lien of this  Indenture on any date,  together with the
fair value of property  previously  released  during the  then-current  calendar
year,  equals or exceeds 10% of the Note Principal  Balance,  in addition to all
other  actions  required to be taken  pursuant to this  Indenture,  the Sale and
Servicing Agreement or otherwise in connection with such release, an Independent
Certificate  in  accordance  with TIA ss.ss.  314(c) and  314(d)(1)  meeting the
applicable requirements of Section 11.1 shall also be delivered to the Indenture
Trustee.  No party relying upon an instrument  executed by the Indenture Trustee
as provided  in this  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 there are no Notes
outstanding and all sums due the Indenture  Trustee pursuant to Section 6.7, and
to the Insurer pursuant to the Insurance Agreement have been paid and the Policy
has been cancelled and returned to the Insurer, release any remaining portion of
the Trust  Property  that secured the Notes from the lien of this  Indenture and
release to the Issuer or any other  Person  entitled  thereto  any funds then on
deposit in the Accounts.  The Indenture  Trustee shall release property from the
lien of this Indenture  pursuant to this Section 8.2(b) only upon receipt by the
Indenture  Trustee  and the  Insurer  of an  Issuer  Request  accompanied  by an
Officer's  Certificate,  an  Opinion  of Counsel  and (if  required  by the TIA)
Independent  Certificates  in  accordance  with TIA ss.ss.  314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

            SECTION 8.3.  ESTABLISHMENT OF ACCOUNTS.  The Sponsor shall cause to
be established, and the Indenture Trustee shall maintain, at the Corporate Trust
Office of the  Indenture  Trustee,  a  Collection  Account and a Policy  Payment
Account (which account maybe a sub-account of the Collection Account) to be held
by the  Indenture  Trustee  in the  name of the  Trust  for the  benefit  of the
Noteholders and the Insurer,  as their interests may appear.  Each account shall
be an Eligible Account. In addition,  the Sponsor shall be permitted to withdraw
amounts  from the  Collection  Account from time to time as described in Section
3.03 of the Sale and Servicing Agreement.

            SECTION 8.4. THE POLICY.

            (a) By the close of  business on the  Business  Day  preceding  each
Determination  Date the  Indenture  Trustee shall  determine  from the Servicing
Certificate  with  respect  to  the  immediately  following  Payment  Date,  the
Deficiency Amount, if any.

            (b) If the Indenture  Trustee  determines  pursuant to paragraph (a)
above that a Deficiency Amount would exist, the Indenture Trustee shall complete
a Notice in the form of Exhibit A to the Policy  and submit  such  notice to the
Insurer no later than 12:00 noon New York

                                       37
<PAGE>

City time on the related  Determination  Date  preceding  such Payment Date as a
claim for the payment of an Insured  Amount in an amount equal to the Deficiency
Amount.

            (c) The Indenture Trustee shall establish an Eligible Account (which
may  be a  sub-account  of  the  Collection  Account)  for  the  benefit  of the
Noteholders and the Insurer  referred to herein as the "Policy Payment  Account"
over which the Indenture  Trustee shall have exclusive control and sole right of
withdrawal.  The  Indenture  Trustee  shall deposit upon receipt any amount paid
under the Policy into the Policy Payment Account and distribute such amount only
for  purposes of payment to the  Noteholders  of the Insured  Amount for which a
claim was made and such amount may not be applied to satisfy any costs, expenses
or liabilities of the Sponsor, the Servicer, the Indenture Trustee or the Trust.
Amounts paid under the Policy,  to the extent needed to pay the Insured  Amount,
shall be disbursed by the  Indenture  Trustee to the  Noteholders  in accordance
with Section  8.7(b).  It shall not be necessary for such payments to be made by
check or wire  transfers  separate from checks or wire transfers used to pay the
Insured  Amount with other funds  available to make such payment.  However,  the
amount of any  payment of  principal  or  interest  on the Notes to be paid from
funds  transferred from the Policy Payment Account shall be noted as provided in
subsection  (d) of this Section 8.4 in the Note  Register  and in the  Indenture
Trustee's  Statement to  Noteholders.  Funds held in the Policy Payment  Account
shall not be invested.  Any funds remaining in the Policy Payment Account on the
first  Business  Day  following a Payment  Date shall be returned to the Insurer
pursuant to the written  instructions of the Insurer by the end of such Business
Day.

            (d) The Indenture  Trustee shall keep a complete and accurate record
of the amount of interest and principal  paid in respect of any Note from moneys
received  under the  Policy.  The Insurer  shall have the right to inspect  such
records at reasonable  times during normal  business hours upon one (1) Business
Day's prior written notice to the Indenture Trustee.

            (e) The  Indenture  Trustee  shall,  upon  retirement  of the Notes,
furnish to the Insurer a notice of such retirement,  and, upon retirement of the
Notes,  and, upon  retirement of the Notes and the expiration of the term of the
Policy surrender the Policy to the Insurer for cancellation.

            SECTION 8.5. PAYMENTS UNDER THE GREENPOINT BANK DEMAND NOTE:

On the  twenty-fourth  Payment Date, the Indenture  Trustee shall demand payment
from  GreenPoint  Bank under the  Demand  Note of the  Demand  Note Draw  Amount
payable  thereunder  and deposit such amount into the  Collection  Account.  The
Indenture  Trustee shall use its best efforts to give  GreenPoint Bank notice of
any draw to be made under the Demand Note at least one Business Day prior to the
related  Payment  Date.  The Demand  Note Draw  Amount  (the  "DEMAND  NOTE DRAW
AMOUNT")  shall be equal to the  Overcollateralization  Deficit on such  Payment
Date.

The Indenture Trustee shall also make a demand for payment under the Demand Note
upon its receipt of written  notice from the  Servicer  that  GreenPoint  Bank's
long-term  senior unsecured debt rating or its equivalent has been downgraded to
below Baa3 by  Moody's  or to below  BBB- by S&P while the Demand  Note is still
outstanding. The amount demanded by the Indenture Trustee in that instance shall
equal the lesser of (i) the Maximum  Available Amount (as defined

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<PAGE>

below)  or (ii)  the  Overcollateralization  Deficiency  Amount,  in  each  case
calculated on the date of the downgrade.  In fulfillment of such a demand by the
Indenture  Trustee,  GreenPoint  Bank will deposit a Demand Note Reserve Account
Deposit  Amount in an  amount  equal to the  amount  demanded  by the  Indenture
Trustee into a reserve account (the "DEMAND NOTE RESERVE  ACCOUNT").  The Demand
Note Reserve  Account shall be held by the Indenture  Trustee in the name of the
Trust for the benefit of the Noteholders and the Insurer, as their interests may
appear, and shall be an Eligible Account.  Amounts on deposit in the Demand Note
Reserve  Account  may be invested  as  approved  by the  Insurer,  if the Issuer
delivers written  instruction as to such  investments to the Indenture  Trustee,
and earnings on such Eligible  Investments  will be paid to  GreenPoint  Bank on
each Payment  Date.  During any period that amounts are on deposit in the Demand
Note Reserve  Account,  the Indenture  Trustee shall make draws upon the amounts
therein in the same manner as under the Demand Note and in lieu of making  draws
upon the Demand Note directly.  Any such draw will be made first,  from any cash
amount on deposit in the Demand  Reserve  Account and  second,  if the amount of
cash on deposit is  insufficient  to fully fund the draw, the Indenture  Trustee
will  liquidate up to the entire  amount of other  collateral  on deposit in the
Demand Note Reserve  Account,  as instructed  by  GreenPoint  Bank, in an amount
sufficient to generate  cash to fund the  remainder of the draw.  All amounts on
deposit in the Demand Note Reserve  Account will be released to GreenPoint  Bank
on the earlier of the Payment Date  immediately  following the date on which its
long-term  senior  unsecured  debt rating or its  equivalent  is no longer below
Baa3,  as rated by  Moody's,  or BBB-,  as  rated by S&P,  or,  after  permitted
withdrawals, upon maturity of the Demand Note.

            In addition, GreenPoint Bank agrees under the Demand Note to pay any
Capitalized Interest Shortfall for each Payment Date occurring during the Demand
Note Term. For purposes of the Demand Note, Capitalized Interest Shortfall shall
mean the positive  difference,  if any, of (i) the Interest  Payment  Amount for
such  Payment  Date minus (ii) the total  Interest  Collections  received on the
Mortgage Loans during the immediately preceding Collection Period.

            As of the Closing Date and each Payment Date  thereafter  during the
Demand Note Term, the maximum available amount outstanding under the Demand Note
shall  equal 1.0% of the  aggregate  Note  Balance as of the  Cut-Off  Date (the
"MAXIMUM AVAILABLE AMOUNT").

            The term of the Demand Note (the  "DEMAND  NOTE TERM") shall be from
May 19,  2003 until its  maturity  on the  earliest of (i) the date on which the
aggregate principal balances of the Notes are paid down to zero or (ii) the date
on which the  Specified  Overcollateralization  Amount has been reached or (iii)
the twenty-fourth Payment Date.

            SECTION 8.6. [RESERVED]

            SECTION 8.7. PRIORITY OF DISTRIBUTIONS.

            (a) The Indenture  Trustee shall deposit to the Collection  Account,
without duplication, upon receipt, (i) any payments related to the Class A Notes
made  pursuant to the Policy,  (ii) any amounts  received from  GreenPoint  Bank
under the Demand Note or released  from the Demand Note Reserve  Account;  (iii)
the  proceeds of any  liquidation  of the assets of the Trust and (iv)  Interest
Collections and Principal Collections remitted by the Servicer, together

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with any Substitution  Amounts,  and any Loan Purchase Price amounts received by
the Indenture Trustee..

            (b) With respect to the  Collection  Account,  on each Payment Date,
the Indenture  Trustee shall make the following  allocations,  disbursements and
transfers in the following order of priority, and each such allocation, transfer
and  disbursement  shall be treated as having  occurred only after all preceding
allocations, transfers and disbursements have occurred:

                  (i) to the Indenture Trustee, the Trustee Fee then due;

                  (ii) from amounts on deposit therein,  the Premium Amount with
      respect to the Class A Notes to the Insurer for such Payment Date

                  (iii) from  amounts  then on deposit  therein,  to the Class A
      Noteholders, the Interest Payment Amount for such Payment;

                  (iv) on each  Payment  Date  during the  Managed  Amortization
      Period, from amounts then on deposit therein, to the Sponsor,  the portion
      of Additional Balance  Contributed Amount for such Payment Date related to
      HELOC Mortgage Loans;

                  (v) from  amounts  then on  deposit  therein,  to the  Class A
      Noteholders as a distribution of principal,  the Principal  Payment Amount
      for such Payment Date;

                  (vi) from  amounts  then on  deposit  therein,  to the Class A
      Noteholders,  as a distribution  of principal,  the  Overcollateralization
      Deficit for such Payment Date;

                  (vii) from  amounts then on deposit  therein,  to the Insurer,
      the Reimbursement Amount, if any, then due to it;

                  (viii)  from  amounts  then on  deposit  therein,  the  Excess
      Cashflow  with respect to the Class A Notes shall be applied to the extent
      necessary to fund the full amount of the Accelerated Principal Payment;

                  (ix)  from  amounts  then on  deposit,  PARI  PASSU (a) to the
      Servicer,  reimbursement for amounts reimbursable to the Servicer pursuant
      to Section  3.03 and Section 5.03 of the Sale and  Servicing  Agreement to
      the extent not previously  reimbursed and (b) to the Indenture Trustee, up
      to a maximum of $5,000 on any Payment Date to pay certain amounts that may
      be required to be paid to the Indenture Trustee with respect to its or the
      Custodian's  preparation and recording of assignments of mortgages  (which
      amounts  were not  previously  paid  pursuant to clause (i) or  reimbursed
      pursuant to the Sale and Servicing Agreement);

                  (x) from amounts then on deposit therein, the current Deferred
      Interest  with  respect  to the  Class A Notes  and  any  unpaid  Deferred
      Interest from prior  Payment  Dates with  interest  thereon at the Formula
      Note Rate;

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<PAGE>

                  (xi) to the Indenture  Trustee,  all remaining amounts due and
      owing to the  Indenture  Trustee  pursuant to the Basic  Documents and not
      otherwise paid pursuant to clause (i) or (ix);

                  (xii) to the Manager of the Trust, the Management Fee then due
      and any amount due and owing to the Manager  pursuant  to Section  5(b) of
      the Management Agreement; and

                  (xiii)  to  the  Residual   Certificateholders,   any  amounts
      remaining on deposit in the Collection Account.

            SECTION 8.8. STATEMENTS TO NOTEHOLDERS. The Indenture Trustee (based
upon  information  received  from the  Servicer)  will  make  available  via its
internet website on each Payment Date concurrently with each distribution to the
Noteholders,  to the  Servicer,  the  Noteholders  and the  Insurer a  statement
setting forth among other items with respect to the Notes:

                  (i) the amount being distributed to the Notes;

                  (ii) the amount of interest  included in such distribution and
      the Note Rate;

                  (iii) the amount, if any, of overdue accrued interest included
      in such distribution (and the amount of interest thereon);

                  (iv) the amount,  if any,  of the  remaining  overdue  accrued
      interest after giving effect to such distribution;

                  (v)  the  amount,  if  any,  of  principal  included  in  such
      distribution;

                  (vi) the Servicing Fee for such Payment Date;

                  (vii) the related  principal  balance,  after giving effect to
      such distribution;

                  (viii) the related  initial  Pool Balance and the related Pool
      Balance as of the end of the preceding Collection Period;

                  (ix) the number and  aggregate  Principal  Balance of Mortgage
      Loans that were (A) delinquent  (exclusive of Mortgage Loans in bankruptcy
      or  foreclosure  or  properties  acquired  by the Trust by deed in lieu of
      foreclosure) (1) 30 to 59 days, (2) 60 to 89 days, (3) 90 to 119 days, (4)
      120 to 149 days,  (5) 150 to 179 days,  (6) 180 to 269 days and (7) 270 or
      more  days,  (B) in  foreclosure,  (C) in  bankruptcy  and (D)  properties
      acquired by the Trust by deed in lieu of foreclosure;

                  (x) (A)  cumulative  losses as a percentage  of original  Pool
      Balance, (B) cumulative losses as a percentage of current Pool Balance and
      (C) the twelve-month  rolling average of cumulative losses as a percentage
      of original Pool Balance;

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<PAGE>

                  (xi) the  three-month  rolling  average of Mortgage Loans that
      are 60 days or more delinquent;

                  (xii) the book value of any real  estate  which is acquired by
      the Trust through foreclosure or grant of deed in lieu of foreclosure;

                  (xiii) the amount of any draws on the Policy;;

                  (xiv)  whether the related  Payment  Date will fall during the
      Managed Amortization Period or the Rapid Amortization Period;

                  (xv) whether a Rapid  Amortization  Event has occurred  during
      the related Collection Period;

                  (xvi)  the  amount,  if  any,  of any  Relief  Act  Shortfalls
      incurred during the related Collection Period;

                  (xvii) the outstanding principal balance of the three Mortgage
      Loans in with the largest outstanding principal balance;

                  (xviii)  whether  an  Event  of  Servicing  Termination  or an
      Insurer Default has occurred;

                  (xix) the  amount,  if any,  of  Additional  Balances  created
      during the related Collection Period;

                  (xx) whether the Managed Amortization Period has ended and the
      Rapid Amortization Period has begun;

                  (xxi) the Specified Overcollateralization Amount;

                  (xxii) the  Overcollateralization  Amount, after giving effect
      to payments on such Payment Date;

                  (xxiii)  the  amount  of any  servicing  advances  made by the
      Servicer during the related Collection Period; and

                  (xxiv) the amount, if any, of interest  shortfalls relating to
      prepayments during the related Collection Period.

            In the case of  information  furnished  pursuant  to  clauses  (ii),
(iii), (iv) and (v) above, the amounts shall be expressed as a dollar amount per
Class A Note with a $1,000 denomination.

            The Indenture  Trustee will make the reports referred to above (and,
at its option,  any  additional  files  containing  the same  information  in an
alternative  format)  available  each month to  Noteholders,  the  Insurer,  the
Sponsor and the Servicer via the Indenture Trustee's internet website,  which is
presently located at  www.mbsreporting.com.  Any such persons that

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<PAGE>

are  unable  to use  this  website  are  entitled  to have a paper  copy of such
information  sent to them via  facsimile  by faxing a request  to the  Indenture
Trustee  at  (212)  815-3986.  If the  Insurer  requests  a  paper  copy of such
information,  a paper copy shall be sent to the Insurer  each month  without the
need for any additional  request.  The Indenture Trustee shall have the right to
change  the  manner  in  which  the  reports  referred  to in this  section  are
distributed  in order to make such  distribution  more  convenient  and/or  more
accessible to the Noteholders,  the Insurer,  the Sponsor and the Servicer.  The
Indenture  Trustee will provide  timely and  adequate  notification  to all such
parties regarding any such change to the method of distribution of the reports.

            Each  report  provided  to the  Insurer  (either  via the  Indenture
Trustee's  website  or  a  paper  copy)  pursuant  to  this  Section  8.8  shall
additionally  report:  (a) the total amount of funds received as Insured Amounts
or  Preference  Amounts for such Payment Date,  separately  stating the portions
used to pay principal and interest  components of the Deficiency Amount; (b) the
cumulative  amount of Insured Amounts or Preference  Amounts paid by the Insurer
through  such  Payment  Date;  and (c)  other  information  as the  Insurer  may
reasonably request from time to time.

            Within 60 days after the end of each  calendar  year,  the  Servicer
shall prepare or cause to be prepared and shall forward to the Indenture Trustee
the  information  set forth in clauses  (i) and (ii) above  aggregated  for such
calendar  year.  Such  obligation  of the Servicer  shall be deemed to have been
satisfied  to the extent  that  substantially  comparable  information  shall be
provided by the Servicer or a Note Paying Agent pursuant to any  requirements of
the Code.

            SECTION 8.9.  INDENTURE  TRUSTEE ANNUAL  CERTIFICATION. On or before
January 31 of each year, the Manager,  on behalf of the Trust, shall provide the
Indenture  Trustee  with a written  notice  listing all Payment  Date reports to
Noteholders  with respect to Payment Dates  occurring in the prior calendar year
that were included in a Form 8-K filing pursuant to Section 3.14 of the Sale and
Servicing  Agreement;  provided that if no Form 10-K is required to be filed for
such prior  calendar  year, no written  notice shall be required.  No later than
March 15 of each year in which such written notice is provided by the Manager to
the Indenture Trustee,  the Indenture Trustee shall sign a certification (in the
form attached hereto as Exhibit C) for the benefit of the Person(s)  signing the
Form  10-K   Certification,   regarding   certain   aspects  of  the  Form  10-K
Certification.

            SECTION 8.10. RIGHTS OF NOTEHOLDERS AND RESIDUAL CERTIFICATEHOLDERS.
The Notes shall represent obligations of the Trust, each representing  interests
in or secured by the Trust  Property,  including the Collection  Account and the
right to receive Interest Collections,  Principal Collections, if any, and other
amounts at the times and in the  amounts  specified  in this  Indenture  and the
Residual  Certificates shall represent a beneficial interest in the Trust (other
than the Policy).

            SECTION  8.11.  OPINION OF COUNSEL.  The  Indenture  Trustee and the
Insurer shall  receive at least seven days' notice when  requested by the Issuer
to take any action  pursuant  to Section  8.2(a),  accompanied  by copies of any
instruments  involved,  and  the  Indenture  Trustee  shall  also  require  as a
condition  to such action,  an Opinion of Counsel  (addressed  to the  Indenture
Trustee  and to the  Insurer),  stating  the legal  effect  of any such  action,
outlining  the

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<PAGE>

steps  required  to  complete  the  same,  and  concluding  that all  conditions
precedent to the taking of such action have been  complied  with and such action
will not  materially  and  adversely  impair the  security  for the Notes or the
rights of the Noteholders or the Insurer in  contravention  of the provisions of
this  Indenture;  PROVIDED,  HOWEVER,  that such Opinion of Counsel shall not be
required  to express  an  opinion  as to the fair  value of the Trust  Property.
Counsel rendering any such opinion may rely, without independent  investigation,
on the accuracy and validity of any certificate or other instrument delivered to
the Indenture Trustee in connection with any such action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

            SECTION 9.1. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.

            (a)  Without  the  consent of the  Holders of any Notes but with the
consent of the  Insurer,  as  evidenced to the  Indenture  Trustee,  the parties
hereto,  when  authorized by an Issuer Order, 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 TIA as in force at the date of the execution  thereof),
in form  satisfactory to the Indenture  Trustee and the Insurer,  for any of the
following purposes:

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

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

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

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

                  (v) to cure  any  ambiguity,  to  correct  or  supplement  any
      provision   herein  or  in  any   supplemental   indenture  which  may  be
      inconsistent  with  any  other  provision  herein  or in any  supplemental
      indenture  or 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 adversely  affect the interests of the
      Holders of the Notes; or

                  (vi)  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.

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<PAGE>

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

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

            (b) The parties  hereto,  when  authorized by an Issuer Order,  may,
also  without  the consent of any of the Holders of the Notes but with the prior
written  consent of the Insurer and with prior notice to the Rating  Agencies by
the Issuer,  as evidenced to the Indenture  Trustee,  enter into an indenture or
indentures  supplemental  hereto for the purpose of adding any provisions to, or
changing in any manner or  eliminating  any of the provisions of, this Indenture
or of  modifying in any manner the rights of the Holders of the Notes under this
Indenture;  PROVIDED,  HOWEVER,  that such action  shall not, as evidenced by an
Opinion of Counsel,  adversely  affect in any material  respect the interests of
any Noteholder.

            SECTION 9.2.  SUPPLEMENTAL  INDENTURES  WITH CONSENT OF NOTEHOLDERS.
The parties  hereto,  when  authorized by an Issuer Order,  also may, with prior
notice to the Rating  Agencies,  with the  consent of the  Insurer  and with the
consent of the Holders of not less than a majority of the Outstanding  Amount of
the Notes, by Act of such Holders delivered to the parties hereto, enter into an
indenture  or  indentures  supplemental  hereto  for the  purpose  of adding any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, this  Indenture  or of  modifying in any manner the rights of the Holders of
the Notes under this Indenture;  PROVIDED, HOWEVER, that, subject to the express
rights of the Insurer under the Basic Documents,  no such supplemental indenture
shall,  without the  consent of the Holder of each  Outstanding  Notes  affected
thereby:

                  (i) change the date of payment of any installment of principal
      of or interest on any Note, or reduce the principal  amount  thereof,  the
      interest rate thereon or the Redemption Price with respect thereto, change
      the provision of this Indenture relating to the application of collections
      on, or the  proceeds  of the sale of,  the Trust  Property  to  payment of
      principal  of or  interest  on the  Notes,  or change any place of payment
      where, or the coin or currency in which,  any Note or the interest thereon
      is payable;

                  (ii) 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 (or,
      in the case of redemption, on or after the Redemption Date);

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

                                       45
<PAGE>

                  (iv)  modify or alter the  provisions  of the  proviso  to the
      definition of the term "Outstanding";

                  (v) reduce the  percentage  of the  Outstanding  Amount of the
      Notes  required  to direct the  Indenture  Trustee to direct the Issuer to
      sell or liquidate the Trust Property pursuant to Section 5.4;

                  (vi) 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 Basic Documents  cannot be modified or
      waived without the consent of the Holder of each Outstanding Note affected
      thereby;

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

                  (viii)  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 Property or, except as otherwise permitted or contemplated herein or
      in any of the Basic Documents, 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 conclusively rely as to whether or not any
Notes would be adversely affected by any supplemental  indenture upon receipt of
an Opinion of Counsel  addressed and delivered to the Indenture  Trustee and the
Insurer to that effect and any such  determination  shall be conclusive upon the
Holders  of all Notes,  whether  theretofore  or  thereafter  authenticated  and
delivered  hereunder.  The Indenture  Trustee shall not be liable for relying on
such Opinion of Counsel 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  parties   hereto  of  any
supplemental  indenture  pursuant to this Section,  the Indenture  Trustee shall
mail to the  Holders  of the  Notes  to which  such  amendment  or  supplemental
indenture  relates a notice setting forth in general terms the substance of such
supplemental  indenture.  Any  failure  of the  Indenture  Trustee  to mail such
notice, or any defect therein,  shall not, however,  in any way impair or affect
the validity of any such supplemental indenture.

            SECTION 9.3. EXECUTION OF SUPPLEMENTAL INDENTURES.  In executing, or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the modifications  thereby of the trusts created
by this  Indenture,  the Indenture  Trustee and the Insurer shall be entitled to
receive,  and  subject to  Sections  6.1 and 6.2,  shall be fully  protected  in
relying  upon, an Opinion of Counsel  (and,  if  requested,  an Officer's  Note)
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

                                       46
<PAGE>

indenture that affects the Indenture Trustee's own rights,  duties,  liabilities
or immunities under this Indenture or otherwise.

            SECTION 9.4. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental  indenture  pursuant to the provisions  hereof,  this Indenture
shall be and 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 Holders of the Notes shall thereafter
be determined,  exercised and enforced hereunder subject in all respects to such
modifications  and  amendments,  and all the  terms and  conditions  of any such
supplemental  indenture  shall  be and be  deemed  to be part of the  terms  and
conditions of this Indenture for any and all purposes.

            SECTION 9.5.  REFERENCE IN NOTES TO CONFORMITY  WITH TRUST INDENTURE
ACT. Every amendment of this Indenture and every supplemental indenture executed
pursuant to this Article IX shall conform to the requirements of the TIA as then
in effect so long as this Indenture shall then be qualified under the TIA.

            SECTION 9.6.  REFERENCE IN NOTES TO SUPPLEMENTAL  INDENTURES.  Notes
authenticated  and delivered after the execution of any  supplemental  indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a  notation  in form  approved  by the  Indenture  Trustee as to any matter
provided  for in such  supplemental  indenture.  If the 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

                               REDEMPTION OF NOTES

            SECTION  10.1.  REDEMPTION.  The Notes are subject to  redemption in
whole,  but not in part,  at the  direction  of the Sponsor  pursuant to Section
7.01(b) of the Sale and  Servicing  Agreement,  on any Payment Date on which the
Sponsor  exercises  its option to transfer the Trust  Property  pursuant to said
Section  7.01(b),  for a  purchase  price  equal to the  Redemption  Price.  The
Servicer or the Issuer shall furnish the Insurer  notice of such  redemption not
later than 35 days prior to the Redemption Date. If the Notes are to be redeemed
pursuant to this Section 10.1,  the Servicer or the Issuer shall furnish  notice
of such  election to the  Indenture  Trustee not later than 35 days prior to the
Redemption Date and the Issuer shall deposit or undertake to deposit on or prior
to the Redemption Date with the Indenture Trustee in the Collection  Account the
Redemption Price of such Notes whereupon all such Notes shall be due and payable
on the Redemption  Date upon the  furnishing of a notice  complying with Section
10.2 (unless the Issuer shall default in the deposit of the Redemption Price).

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<PAGE>

            SECTION 10.2. SURRENDER OF NOTES.

            (a) Notice of any  termination,  specifying  the Payment Date (which
shall  be a date  that  would  otherwise  be a  Payment  Date)  upon  which  the
Noteholders  may surrender  their Notes to the Indenture  Trustee for payment of
the  final  distribution  and  cancellation,  shall  be  given  promptly  by the
Indenture Trustee (upon receipt of written  directions from the Sponsor,  if the
Sponsor is  exercising  its right to transfer of the Mortgage  Loans,  given not
later  than the  first  day of the  month  preceding  the  month  of such  final
distribution)  to the Insurer and to the Servicer  and by letter to  Noteholders
mailed  not  earlier  than the 15th day and not  later  than the 25th day of the
month next  preceding the month of such final  distribution  specifying  (i) the
Payment  Date upon  which  final  distribution  of the  Notes  will be made upon
presentation  and  surrender  of Notes at the office or agency of the  Indenture
Trustee therein  designated,  (ii) the amount of any such final distribution and
(iii) that the Record Date  otherwise  applicable  to such  Payment  Date is not
applicable, distributions being made only upon presentation and surrender of the
Notes at the office or agency of the Indenture Trustee therein specified. In the
event written  directions are delivered by the Sponsor to the Indenture  Trustee
as  described  in the  preceding  sentence,  the  Sponsor  shall  deposit in the
Collection  Account on or before the Payment Date for such final distribution in
immediately  available funds an amount which, when added to the funds on deposit
in the Collection Account that are payable to the Noteholders,  will be equal to
the  retransfer  amount  for the  Mortgage  Loans  computed  as above  provided,
together  with all amounts due and owing to the Insurer for unpaid  premiums and
unreimbursed  draws on the  Policy  and all other  amounts  due and owing to the
Insurer pursuant to the Insurance  Agreement,  together with interest thereon as
provided under the Insurance Agreement.

            (b) Upon  presentation  and  surrender of the Notes,  the  Indenture
Trustee  shall  cause to be  distributed  to the Holders of Notes on the Payment
Date for such final distribution,  in proportion to the Percentage  Interests of
their  respective  Notes and to the  extent  that funds are  available  for such
purpose,  the amount  required  to be  distributed  to  Noteholders  pursuant to
Section 10.1 of this Indenture for such Payment Date. The  distribution  on such
final Payment Date pursuant to a retransfer pursuant to Section 7.01(a)(B)(i) of
the Sale and Servicing Agreement shall be in lieu of the distribution  otherwise
required to be made on such Payment  Date in respect of the Notes.  On the final
Payment  Date prior to having  made the  distributions  called  for  above,  the
Indenture  Trustee shall,  based upon the information set forth in the Servicing
Certificate  for such Payment  Date,  withdraw from the  Collection  Account and
remit to the Insurer the lesser of (x) the amount  available for distribution on
such final Payment Date, net of any portion thereof necessary to pay the amounts
described in clauses (i) and (ii) above and (y) the unpaid amounts due and owing
to the Insurer for unpaid premiums and unreimbursed  draws on the Policy and all
other amounts due and owing to the Insurer pursuant to the Insurance  Agreement,
together with interest thereon as provided under the Insurance Agreement.

            (c) In the event  that all of the  Noteholders  shall not  surrender
their Notes for final payment and  cancellation  on or before such final Payment
Date, the Indenture Trustee shall on such date cause all funds in the Collection
Account not  distributed  in final  distribution  to Noteholders to be withdrawn
therefrom and credited to the remaining  Noteholders by depositing such funds in
a separate  escrow account for the benefit of such  Noteholders  and the Sponsor
(if the Sponsor has exercised  its right to transfer the Mortgage  Loans) or the
Indenture  Trustee (in any other case) and shall give a second written notice to
the remaining  Noteholders to surrender

                                       48
<PAGE>

their Notes for  cancellation  and receive the final  distribution  with respect
thereto. If within one year after the second notice all the Notes shall not have
been surrendered for  cancellation,  the Indenture  Trustee may take appropriate
steps,  or may  appoint  an agent to take  appropriate  steps,  to  contact  the
remaining Noteholders  concerning surrender of their Notes, and the cost thereof
shall be paid out of the funds on deposit in such escrow account.

            SECTION  10.3.  FORM OF  REDEMPTION  NOTICE.  Notice  of  redemption
supplied to the  Indenture  Trustee by the Sponsor  under  Section 10.1 shall be
given by the  Indenture  Trustee by facsimile or by  first-class  mail,  postage
prepaid,  transmitted or mailed prior to the applicable  Redemption Date to each
Holder of Notes of record,  as of the close of business on the date which is not
less than 5 days  prior to the  applicable  Redemption  Date,  at such  Holder's
address appearing in the Note Register.

            All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price;

                  (iii)  that  the  Record  Date  otherwise  applicable  to such
      Redemption  Date is not  applicable  and that payments  shall be made only
      upon  presentation  and  surrender  of such Notes at the place  where such
      Notes are to be  surrendered  for payment of the  Redemption  Price (which
      shall be the office or agency of the Issuer to be  maintained  as provided
      in Section 3.2); and

                  (iv) that  interest  on the Notes shall cease to accrue on the
      Redemption Date.

            Notice of  redemption  of the Notes shall be given by the  Indenture
Trustee in the name and at the expense of the Issuer.  Failure to give notice of
redemption, or any defect therein, to any Holder of any Note shall not impair or
affect the validity of the redemption of any other Note.

            SECTION  10.4.  NOTES PAYABLE ON  REDEMPTION  DATE.  The Notes to be
redeemed shall,  following  notice of redemption as required by Section 10.2, on
the Redemption  Date become due and payable at the Redemption  Price and (unless
the Issuer  shall  default in the payment of the  Redemption  Price) no interest
shall  accrue on the  Redemption  Price for any  period  after the date to which
accrued interest is calculated for purposes of calculating the Redemption Price.

                                   ARTICLE XI

                                  MISCELLANEOUS

            SECTION 11.1.  COMPLIANCE  CERTIFICATES AND OPINIONS,  ETC. 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  Insurer  if the  application  or  request  is  made  to the
Indenture Trustee (i) an Officer's Certificate stating that

                                       49
<PAGE>

all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent,  if any, have been
complied  with  and  (iii)  (if  required  by the TIA or any  provision  of this
Agreement)  an  Independent   Certificate   from  a  firm  of  certified  public
accountants meeting the applicable requirements of this Section, 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;

                  (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; and

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

            SECTION 11.2. 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 or her 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  Servicer,  the Sponsor or the Issuer,  stating  that the  information  with
respect  to such  factual  matters is in the  possession  of the  Servicer,  the
Sponsor  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.

                                       50
<PAGE>

            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 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 conclusively rely upon the
truth and accuracy of any statement or opinion contained in any such document as
provided in Article VI.

            SECTION 11.3. ACTS OF NOTEHOLDERS.

            (a) Any request, demand, authorization,  direction, notice, consent,
waiver  or  other  action  provided  by this  Indenture  to be given or taken by
Noteholders  may be  embodied in and  evidenced  by one or more  instruments  of
substantially  similar tenor signed by such  Noteholders  in person or by agents
duly appointed in writing;  and except as herein  otherwise  expressly  provided
such action shall become  effective  when such  instrument  or  instruments  are
delivered to the Indenture Trustee,  and, where it is hereby expressly required,
to the Issuer.  Such instrument or instruments  (and the action embodied therein
and  evidenced  thereby)  are herein  sometimes  referred to as the "Act" of the
Noteholders  signing such instrument or  instruments.  Proof of execution of any
such  instrument or of a writing  appointing  any such agent shall be sufficient
for any purpose of this  Indenture  and (subject to Section 6.1)  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  customary  manner of the  Indenture
Trustee.

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

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

            SECTION 11.4. NOTICES,  ETC., TO INDENTURE TRUSTEE,  ISSUER, INSURER
AND RATING AGENCIES.  Any request,  demand,  authorization,  direction,  notice,
consent,  waiver or Act of Noteholders or other documents  provided or permitted
by this Indenture to be made upon, given or furnished to or filed with:

            (a) The Indenture  Trustee by any  Noteholder or by the Issuer shall
be sufficient for every purpose hereunder if personally delivered,  delivered by
overnight  courier or mailed  first-class  and shall be deemed to have been duly
given upon receipt to the Indenture

                                       51
<PAGE>

Trustee at its  Corporate  Trust  Office and any notice  delivered  by facsimile
shall  be  addressed  to the  Corporate  Trust  Office,  telecopy  number  (212)
815-3986, or

            (b) The Issuer by the Indenture  Trustee or by any Noteholder  shall
be sufficient for every purpose hereunder if personally delivered,  delivered by
facsimile or overnight  courier or mailed first class,  and shall deemed to have
been duly given upon receipt to the Issuer addressed to:  GreenPoint Home Equity
Loan Trust 2003-1,  in care of Wilmington  Trust  Company,  Rodney Square North,
1100 North Market Street,  Wilmington, DE 19890-0001 Attention:  Corporate Trust
Administration,  or at any other address previously  furnished in writing to the
Indenture  Trustee by Issuer.  The Issuer  shall  promptly  transmit  any notice
received by it from the Noteholders to the Indenture Trustee.

            (c) The  Insurer by the  Issuer or the  Indenture  Trustee  shall be
sufficient  for any purpose  hereunder  if in writing and mailed by  first-class
mail personally delivered or telecopied to the recipient as follows:

            To the Insurer:         Ambac Assurance Corporation
                                    One State Street Plaza
                                    New York, NY 10004
                                    Attention:  Managing Director

                                    Telecopy: (212) 363-1459

            Notices  required to be given to the Rating  Agencies by the Issuer,
the  Indenture  Trustee or the Owner  Trustee  shall be in  writing,  personally
delivered, delivered by overnight courier or first class or via facsimile to (i)
in the case of Moody's,  at the following  address:  Moody's Investors  Service,
Inc., 99 Church  Street,  New York,  New York 10004,  Fax No: (212) 533-0355 and
(ii) in the case of S&P, at the following address: Standard & Poor's, a division
of The McGraw-Hill  Companies,  Inc., 55 Water Street, New York, New York 10041,
Attention:  Asset Backed Surveillance Department,  Fax No: (212) 438-2661; or as
to each of the  foregoing,  at such  other  address  as shall be  designated  by
written notice to the other parties.

            SECTION 11.5. NOTICES TO NOTEHOLDERS;  WAIVER.  Where this Indenture
provides  for  notice  to  Noteholders  of  any  event,  such  notice  shall  be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing
and mailed,  first-class,  postage prepaid to each  Noteholder  affected by such
event (and in all cases, the Insurer shall receive notice), at his 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 particular Noteholder shall
affect the sufficiency of such notice with respect to other Noteholders, and any
notice  that is mailed in the  manner  herein  provided  shall  conclusively  be
presumed to have been duly given.

            Where this Indenture provides for notice in any manner,  such notice
may be waived in writing by any Person  entitled to receive such notice,  either
before or after the  event,  and such  waiver  shall be the  equivalent  of such
notice.  Waivers  of notice by  Noteholders  shall be

                                       52
<PAGE>

filed  with the  Indenture  Trustee  but such  filing  shall not be a  condition
precedent to the validity of any action taken in reliance upon such a waiver.

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

            Where this  Indenture  provides  for notice to the Rating  Agencies,
failure to give such  notice  shall not affect any other  rights or  obligations
created hereunder.

            SECTION   11.6.    ALTERNATE   PAYMENT   AND   NOTICE    PROVISIONS.
Notwithstanding  any  provision  of this  Indenture  or any of the  Notes to the
contrary,  the  Issuer may enter  into any  agreement  with any Holder of a Note
providing  for a method of payment,  or notice by the  Indenture  Trustee or any
Note Paying Agent to such Holder,  that is different  from the methods  provided
for in this  Indenture for such payments or notices,  provided that such methods
are  reasonable  and consented to by the Indenture  Trustee (which consent shall
not be unreasonably withheld).  The Issuer will furnish to the Indenture Trustee
a copy of each such  agreement and the Indenture  Trustee will cause payments to
be made and notices to be given in accordance with such agreements.

            SECTION 11.7.  CONFLICT WITH TRUST  INDENTURE  ACT. If any provision
hereof  limits,  qualifies or conflicts  with another  provision  hereof that is
required to be included in this  indenture by any of the  provisions of the TIA,
such required provision shall control.

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

            SECTION 11.8. EFFECT OF HEADINGS AND TABLE OF CONTENTS.  The Article
and Section  headings herein and the Table of Contents are for convenience  only
and shall not affect the construction hereof.

      Notwithstanding  anything to the contrary  contained in this  Indenture or
any  document  delivered  herewith,  all  persons  may  disclose  to any and all
persons, without limitation of any kind, the federal income tax treatment of the
Notes,  any fact  relevant to  understanding  the federal tax  treatment  of the
Notes, and all materials of any kind (including  opinions or other tax analyses)
relating to such federal tax treatment.

            SECTION 11.9.  SUCCESSORS AND ASSIGNS.  All covenants and agreements
in this  Indenture  and the Notes by the Issuer  shall bind its  successors  and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors.

            SECTION 11.10. SEPARABILITY. In case any provision in this Indenture
or in the Notes  shall be  invalid,  illegal  or  unenforceable,  the  validity,
legality, and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

                                       53
<PAGE>

            SECTION 11.11. BENEFITS OF INDENTURE. The Insurer and its successors
and  assigns  shall  be  third-party  beneficiaries  to the  provisions  of this
Indenture,  and shall be  entitled  to rely upon and  directly  to enforce  such
provisions of this Indenture. Nothing in this Indenture or in the Notes, express
or implied,  shall give to any Person,  other than the parties  hereto and their
successors  hereunder,  the Insurer,  and the  Noteholders,  and any other party
secured  hereunder,  and any other person with an ownership interest in any part
of the Trust Property,  any benefit or any legal or equitable  right,  remedy or
claim  under this  Indenture.  The Insurer  may  disclaim  any of its rights and
powers under this  Indenture (in which case the  Indenture  Trustee may exercise
such rights or powers  hereunder),  but not its duties and obligations under the
Policy upon delivery of a written notice to the Indenture Trustee.

            SECTION 11.12.  LEGAL HOLIDAYS.  In any case where the date on which
any payment is due shall not be a Business Day, then  (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next  succeeding  Business  Day with the same  force  and
effect as if made on the date on which  nominally  due,  and no  interest  shall
accrue for the period from and after any such nominal date.

            SECTION 11.13.  GOVERNING LAW. THIS INDENTURE  SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS  (OTHER THAN  SECTIONS  5-1401 AND 5-1402 OF THE NEW
YORK GENERAL  OBLIGATIONS LAW), AND THE OBLIGATIONS,  RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS .

            SECTION 11.14.  COUNTERPARTS.  This Indenture may be executed in any
number  of  counterparts,  each of which so  executed  shall be  deemed to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

            SECTION 11.15. RECORDING OF INDENTURE.  If this Indenture is subject
to recording in any appropriate public recording  offices,  such recording is to
be  effected  by the  Issuer  and at its  expense  accompanied  by an Opinion of
Counsel  (which  may be  counsel  to the Trust or any other  counsel  reasonably
acceptable  to the  Indenture  Trustee and the  Insurer) 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 11.16. TRUST OBLIGATION.  No recourse may be taken, directly
or indirectly,  with respect to the obligations of the Issuer, the Sponsor,  the
Servicer,  the Owner Trustee or the Indenture Trustee on the Notes or under this
Indenture  or any Note or other  writing  delivered  in  connection  herewith or
therewith,  against (i) the Sponsor, the Servicer,  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 Sponsor, the Servicer, the Indenture Trustee
or the Owner  Trustee in its  individual  capacity,  any holder of a  beneficial
interest in the Issuer,  the Sponsor,  the  Servicer,  the Owner  Trustee or the
Indenture  Trustee or of any  successor or assign of the Sponsor,  the Servicer,
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

                                       54
<PAGE>

have no such obligations in their individual  capacity) and except that any such
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  VI,  VII and  VIII of the  Trust
Agreement.

            SECTION 11.17. NO PETITION.  The Indenture Trustee, by entering into
this Indenture,  and each Noteholder,  by accepting a Note,  hereby covenant and
agree  that they will not at any time  institute  against  the  Sponsor,  or the
Issuer,  or join in any institution  against the Sponsor,  or the Issuer of, any
bankruptcy, reorganization,  arrangement, insolvency or liquidation proceedings,
or other  proceedings  under any United  States  Federal or state  bankruptcy or
similar law in  connection  with any  obligations  relating  to the Notes,  this
Indenture or any of the Basic Documents.

            SECTION  11.18.  INSPECTION.  The Issuer  agrees that, on reasonable
prior notice,  it will permit any  representative of the Indenture Trustee or of
the Insurer, 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 law (and all reasonable  applications for confidential treatment are
unavailing)  and except to the extent that the Indenture  Trustee may reasonably
determine that such disclosure is consistent with its Obligations hereunder.

            SECTION 11.19.  LIMITATION OF LIABILITY.  It is expressly understood
and  agreed by the  parties  hereto  that (a) this  Indenture  is  executed  and
delivered by Wilmington Trust Company, not individually or personally but solely
as Owner Trustee of the Issuer under the Trust Agreement, in the exercise of the
powers   and   authority   conferred   and   vested  in  it,  (b)  each  of  the
representations,  undertakings  and  agreements  herein  made on the part of the
Issuer is made and intended not as personal  representations,  undertakings  and
agreements by Wilmington  Trust Company but is made and intended for the purpose
for binding only the Issuer,  (c) nothing herein contained shall be construed as
creating any liability on Wilmington  Trust Company  individually or personally,
to perform any covenant either expressed or implied contained  herein,  all such
liability,  if any, being expressly  waived by the parties to this Indenture and
by any person claiming by, through or under them and (d) under no  circumstances
shall  Wilmington  Trust  Company be  personally  liable for the  payment of any
indebtedness or expenses of the Issuer or be liable for the breach or failure of
any obligation, representation,  warranty or covenant made or undertaking by the
Issuer under this Indenture or any related documents.

                                       55
<PAGE>

                                   ARTICLE XII

                            RAPID AMORTIZATION EVENTS

            SECTION  12.1.  RAPID  AMORTIZATION   EVENTS.  The  following  shall
constitute Rapid Amortization Events with respect to the Notes:

            (a) failure on the part of the Issuer,  the Sponsor or the Servicer,
as the case may be, (i) to make any payment or deposit  required by the terms of
this  Indenture,  the Sale and Servicing  Agreement or the Insurance  Agreement,
within two  Business  Days after  notification  that such  payment or deposit is
required to be made,  or (ii) to observe or perform in any material  respect the
covenants or agreements of the Issuer, the Sponsor or the Servicer,  as the case
may be, set forth in the Sale and Servicing Agreement or the Insurance Agreement
or this  Indenture,  as the case may be, and which,  in the case of clause (ii),
continues  unremedied  for a period of 60 days  after the date on which  written
notice of such failure, requiring the same to be remedied, shall have been given
to the Issuer, the Sponsor or the Servicer, as the case may be, by the Indenture
Trustee, or to the Issuer, the Sponsor or the Servicer,  as the case may be, and
the Indenture  Trustee by the Insurer or Holders of Notes  evidencing  more than
50% of the Outstanding Amount;

            (b) any  representation or warranty made by the Issuer,  the Sponsor
or the Servicer,  as the case may be, in this Indenture,  the Sale and Servicing
Agreement or the Insurance  Agreement  shall prove to have been incorrect in any
material  respect  when  made,  as a  result  of  which  the  interests  of  the
Noteholders  or the Insurer are  materially  and  adversely  affected  and which
continues  to be  incorrect  in any  material  respect and  continues  to affect
materially  and adversely the interests of the  Noteholders or the Insurer for a
period  of 60 days  after  the date on which  written  notice  of such  failure,
requiring  the same to be  remedied,  shall have been given to the  Issuer,  the
Sponsor or the Servicer, as the case may be, by the Indenture Trustee, or to the
Issuer,  the  Sponsor or the  Servicer,  as the case may be,  and the  Indenture
Trustee by either the Insurer or the Holders of Notes  evidencing  more than 50%
of the  Outstanding  Amount;  PROVIDED,  HOWEVER,  that with respect to any such
representation  or warranty made with respect to the related  Mortgage  Loans, a
Rapid  Amortization  Event pursuant to this subparagraph (b) shall not be deemed
to  have  occurred  hereunder  if the  Servicer  or  the  Sponsor  has  accepted
retransfer of such related  Mortgage Loan or related  Mortgage Loans during such
period  (or such  longer  period  not to  exceed  an  additional  60 days as the
Indenture  Trustee may specify  with the consent of the  Insurer) in  accordance
with the provisions hereof;

            (c)  the  Servicer,  the  Sponsor  or the  Issuer  or  any of  their
Subsidiaries or Affiliates shall voluntarily go into liquidation, consent to the
appointment  of a conservator or receiver or liquidator or similar person in any
insolvency,  readjustment  of debt,  marshalling  of assets and  liabilities  or
similar proceedings of or relating to the Servicer,  the Sponsor or the Trust or
of or relating  to all or  substantially  all of such  Person's  property,  or a
decree  or  order  of  a  court  or  agency  or  supervisory   authority  having
jurisdiction  in the premises for the  appointment of a  conservator,  receiver,
liquidator  or  similar  person  in  any   insolvency,   readjustment  of  debt,
marshalling  of  assets  and  liabilities  or  similar  proceedings,  or for the
winding-up or  liquidation of its affairs,  shall have been entered  against the
Servicer,  the Sponsor of the Trust and such decree or order shall have remained
in force undischarged or unstayed for a period of 30 days; or

                                       56
<PAGE>

the  Servicer,  the Sponsor or the Trust shall admit in writing its inability to
pay its debts generally as they become due, file a petition to take advantage of
any applicable insolvency or reorganization  statute, make an assignment for the
benefit of its creditors or voluntarily suspend payment of its obligations;

            (d) the Issuer  becomes  subject to regulation by the Securities and
Exchange  Commission  as  an  investment  company  within  the  meaning  of  the
Investment Company Act of 1940, as amended;

            (e) any draw is made under the Policy with respect to any Class;

            (f) an Event of Servicing Termination has occurred;

            (g) a default in the payment of any Deferred Interest on the Class A
Notes on the Final Maturity Date; and

            (h)  default  in the  payment  of  any  interest,  principal  or any
installment of principal on the Notes when the same becomes due and payable, and
such default continues for a period of five Business Days.

            In the case of any event described in clauses (a) through (h) above,
a Rapid  Amortization  Event will be deemed to have  occurred only if, after the
applicable  grace  period,  if any,  described  in the  Indenture  or  Sale  and
Servicing  Agreement,  any of the Indenture  Trustee or Holders  holding Class A
Notes evidencing more than 50% of the outstanding principal balance of the Class
A Notes,  in each case with the prior written consent of the Insurer (so long as
no Insurer Default has occurred and is continuing or unless a Rapid Amortization
Event  described in clause (g) above has occurred) or the Insurer (so long as no
Insurer Default has occurred and is continuing), by written notice to the Trust,
the Insurer,  the Sponsor,  and the Servicer (and to the Indenture  Trustee,  if
given by the Noteholders or the Insurer) declare that a Rapid Amortization Event
has occurred as of the date of such notice.

            If so directed  by the  Insurer,  so long as no Insurer  Default has
occurred and is continuing,  the Indenture Trustee will and the Insurer (so long
as no Insurer Default has occurred and is continuing) or Holders holding Class A
Notes evidencing more than 50% of the outstanding principal balance of the Class
A Notes  (if a Rapid  Amortization  Event  described  in  clause  (g)  above has
occurred) shall have the right to direct the Indenture Trustee to sell,  dispose
of or otherwise  liquidate the Trust Property with respect to the Mortgage Loans
in a commercially  reasonable  manner and on commercially  reasonable  terms. So
long as no Event of Servicing  Termination  has occurred and is continuing,  any
such sale, disposal or liquidation will be "servicing retained" by the Servicer.
With respect to the Notes, the net proceeds of such sale will be paid (i) first,
to the Holders of the Notes  insofar as may be necessary to reduce the principal
balance  of such  Class,  together  with all  accrued  and unpaid  interest  due
thereon,  to zero,  (ii)  second,  to  reimburse  the  Insurer  to the extent of
unreimbursed draws under the Policy and other amounts owing to the Insurer,  and
(iii) third, to the Residual Certificateholder.

            In  addition  to the  consequences  of a  Rapid  Amortization  Event
discussed above, if the Sponsor  voluntarily files a bankruptcy petition or goes
into liquidation or any person is appointed a receiver or bankruptcy  trustee of
the Sponsor,  on the day of any such filing or

                                       57
<PAGE>

appointment no further Additional  Balances will be transferred to the Trust and
the Sponsor will promptly  give notice to the Indenture  Trustee and the Insurer
of any such filing or appointment.  Within 15 days, the Indenture Trustee notify
the Holders of the Notes of the occurrence of such event.

                                       58
<PAGE>

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

                                        GREENPOINT HOME EQUITY LOAN TRUST 2003-1

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

                                        By: /s/ Janel R. Havrilla
                                            ------------------------------------
                                        Name: Janel R. Havrilla
                                        Title: Financial Services Officer

                                        THE BANK OF NEW YORK,
                                          not in its individual capacity but
                                          solely as Indenture Trustee

                                        By: /s/ Patricia O'Neill-Manella
                                            ------------------------------------
                                        Name: Patricia O'Neill-Manella
                                        Title: Assistant Vice President

Acknowledged and Agreed:

GREENPOINT MORTGAGE SECURITIES INC.

By: /s/ Nathan Hieter
    -------------------------------
    Name:  Nathan Hieter
    Title:  Vice President

<PAGE>

                                                                  EXECUTION COPY

                             ANNEX A - DEFINED TERMS

            ACCELERATED  PRINCIPAL  PAYMENT:  With respect to any Payment Date a
payment received as a payment of principal by the  Noteholders,  for the purpose
of increasing the related  Overcollateralization Amount, and to be paid from the
Excess Cashflow,  and equal to for any Payment Date the lesser of (x) the amount
of the Excess Cashflow and (y) the Overcollateralization Deficiency Amount.

            ACT: As defined in Section 11.3(a) of the Indenture.

            ADDITIONAL  BALANCE:  As to the HELOC Mortgage Loans and any date of
determination,  the  aggregate  amount of all Draws  conveyed to the Issuer with
respect  to such  Pool  pursuant  to  Section  2.01 of the  Sale  and  Servicing
Agreement.

            ADDITIONAL BALANCE  CONTRIBUTED  AMOUNT: As to any Payment Date, the
difference,  if any,  between (a) the  aggregate  excess,  if any, for all prior
Payment Dates of (i) the aggregate  principal amount of all Additional  Balances
created  during the  Collection  Period  relating to each such Payment Date over
(ii) Principal  Collections relating to such Payment Date, and (b) the aggregate
Additional Balance  Contributed Amounts paid to the Sponsor on all prior Payment
Dates pursuant to Section 8.7(d)(iv) of the Indenture.

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

            APPRAISED VALUE: As to any Mortgaged Property, the value established
by either a full appraisal or a drive by inspection of such  Mortgaged  Property
made to establish  compliance with the  underwriting  criteria then in effect in
connection  with the application for the Mortgage Loan secured by such Mortgaged
Property.

            ASSIGNMENT OF MORTGAGE: With respect to any Mortgage, an assignment,
notice of transfer or  equivalent  instrument,  in recordable  form,  sufficient
under the laws of the  jurisdiction in which the related  Mortgaged  Property is
located to reflect the sale of the  Mortgage  to the  Indenture  Trustee,  which
assignment,  notice of transfer or equivalent  instrument  may be in the form of
one or more blanket assignments covering the Mortgage Loans secured by Mortgaged
Properties  located  in the  same  jurisdiction,  to  the  extent  permitted  by
applicable law.

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

            AUTHORIZED OFFICER: With respect to the Issuer and the Servicer, any
officer or agent acting  pursuant to a power of attorney of the Owner Trustee or
the  Servicer,  respectively,  who is authorized to act for the Owner Trustee or
the Servicer,  respectively, in matters relating to the Issuer and the Servicer,
respectively, and who is identified on the list of Authorized Officers delivered
by each of the Owner  Trustee and the Servicer,  respectively,  to the Indenture
Trustee
<PAGE>

on the Closing Date (as such lists may be modified or supplemented  from time to
time thereafter).

            AVAILABLE  FUNDS:  With respect to any Payment Date, the amount then
on deposit in the  Collection  Account,  after  taking into account the deposits
thereto made pursuant to Section 8.7(a) of the  Indenture,  if any (exclusive of
the amount of any related Insured Amount or Preference Amount then on deposit in
the Policy Payment Account).

            BASIC DOCUMENTS: The Indenture, the Notes, the Residual Certificate,
the Certificate of Trust, the Trust Agreement, the Sale and Servicing Agreement,
the Purchase Agreement, the Indemnification Agreement, the Management Agreement,
the Insurance Agreement, the Demand Note and the Policy.

            BBA: The British Bankers' Association.

            BIF:  The Bank  Insurance  Fund,  as from time to time  constituted,
created under the Financial Institutions Reform, Recovery and Enhancement Act of
1989,  or if at any  time  after  the  execution  of this  instrument  the  Bank
Insurance  Fund is not  existing and  performing  duties now assigned to it, the
body performing such duties on such date.

            BILLING  CYCLE:  With  respect to any Mortgage  Loan and  Collection
Period,  the billing  period  specified in the related Loan  Agreement  and with
respect to which amounts billed are received during such Collection Period.

            BOOK-ENTRY NOTES: A beneficial interest in the Notes,  ownership and
transfers of which shall be made  through  book entries by a Clearing  Agency as
described in Section 2.9 of the Indenture.

            BUSINESS  DAY:  Any day other than (i) a Saturday or Sunday,  (ii) a
day on which  banking  institutions  in the  state  of New  York,  the  state of
California  or the state in which the  Corporate  Trust  Office is  located  are
required or authorized by law or executive  order to be closed or (iii) a day on
which the Insurer is closed.

            CERTIFICATE  OF  TRUST:  The  certificate  of  trust  of the  Issuer
substantially in the form of Exhibit C to the Trust Agreement.

            CLASS A NOTE:  Any Note  designated  as a "Class A Home  Equity Loan
Asset-Backed  Note" on the face thereof in substantially the form of Exhibit A-1
to the Indenture.

            CLASS A NOTE  RATE:  (A)  For the  first  Interest  Accrual  Period,
1.5875% and (B) for any Interest  Accrual Period  thereafter,  the lesser of the
Class A Formula Note Rate and the Maximum Rate.

            CLEARING AGENCY:  An organization  registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act.

                                       2
<PAGE>

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

            CLOSED-END  MORTGAGE  LOANS:  Mortgage  Loans  consisting  solely of
fixed-rate  closed-end second lien residential mortgage loans under the Mortgage
Notes.

            CLOSED-END  PRINCIPAL BALANCE:  As to any Closed-End  Mortgage Loan,
other than a  Liquidated  Mortgage  Loan,  and as of any date,  the Cut-Off Date
Principal  Balance  minus all  collections  credited  as  principal  against the
Closed-End Principal Balance of such Closed-End Mortgage Loan in accordance with
the related Mortgage Note prior to such day.

            CLOSING DATE: May 19, 2003.

            CODE:  The Internal  Revenue  Code of 1986,  as amended from time to
time.

            COLLATERAL: As defined in the Granting Clause of the Indenture.

            COLLECTION  ACCOUNT:  That  account  designated  as the  "Collection
Account" and established pursuant to Section 8.3 of the Indenture.

            COLLECTION PERIOD: With respect to any Payment Date and any Mortgage
Loans, the calendar month preceding such Payment Date.

            COMBINED LOAN-TO-VALUE RATIO: (i) With respect to any HELOC Mortgage
Loan as of any date, the percentage  equivalent of a fraction,  the numerator of
which  is the sum of (A) the  Credit  Limit  and (B) the  outstanding  principal
balance as of the date of application  for the related credit line (or as of any
subsequent date, if any, as of which such outstanding  principal  balance may be
determined  in  connection  with an increase in the Credit  Limit for such HELOC
Mortgage  Loan) of any  mortgage  loan or  mortgage  loans  that are  senior  in
priority to the HELOC  Mortgage Loan and which are secured by the same Mortgaged
Property and the  denominator of which is (C) the Appraised Value of the related
Mortgaged  Property  as set  forth  in the  Mortgage  File as of the date of the
appraisal or on such subsequent  date, if any, or (D) in the case of a Mortgaged
Property  purchased  within  one year of the date of  execution  of the  related
Credit  Line  Agreement,  the lesser of (x) the  Appraised  Value of the related
Mortgaged  Property  as set  forth  in the  loan  files  as of the  date  of the
appraisal and (y) the purchase  price of such  Mortgaged  Property and (ii) with
respect  to  any  Closed-End  Mortgage  Loan  as of  any  date,  the  percentage
equivalent of a fraction,  the numerator of which is the sum of (A) the original
principal  balance  of the  Closed-End  Mortgage  Loan  and (B) any  outstanding
principal  balances of mortgage  loans senior to such  Closed-End  Mortgage Loan
(calculated at the date of application for the Closed-End Mortgage Loan) and the
denominator  of  which  is (C) the  Appraised  Value  of the  related  Mortgaged
Property as set forth in the  Mortgage  File as of the date of the  appraisal or
(D) in the  case  of a  Mortgaged  Property  purchased  within  one  year of the
origination  of the  related  Closed-End  Mortgage  Loan,  the lesser of (x) the
Appraised Value of the related  Mortgaged  Property as set forth in the Mortgage
Files  as of the  date  of the  appraisal  and (y) the  purchase  price  of such
Mortgaged Property.

            COMPANY: GreenPoint Mortgage Funding, Inc. or any successor thereto.

                                       3
<PAGE>

            CONTROLLING PARTY: The Insurer,  so long as no Insurer Default shall
have occurred and be continuing,  and the Indenture  Trustee,  for so long as an
Insurer Default shall have occurred and is continuing.

            CORPORATE TRUST OFFICE:  With respect to (i) the Indenture  Trustee,
the principal  corporate  trust office of the Indenture  Trustee at which at any
particular time its corporate trust business shall be administered, which office
at date of the  execution  of the  Indenture  is  located at c/o The Bank of New
York,  101  Barclay  Street,   8-West,  New  York,  New  York  10271  Attention:
Mortgage-Backed  Securities and (ii) the Owner Trustee,  the principal corporate
trust office of the Owner Trustee  located at Rodney  Square  North,  1100 North
Market Street,  Wilmington,  Delaware  19890-0001,  Attention:  Corporate  Trust
Administration,  or at such other  address as the Owner Trustee may designate by
notice to the  Noteholders  and the Sponsor,  or the principal  corporate  trust
office of any successor  Owner Trustee (the address of which the successor owner
trustee will notify the Noteholders and the Sponsor).

            CREDIT LIMIT:  As to any HELOC Mortgage Loan, the maximum  principal
balance permitted under the terms of the related Credit Line Agreement.

            CREDIT LIMIT  UTILIZATION  RATE: As to any HELOC  Mortgage Loan, the
percentage  equivalent of a fraction the numerator of which is the related HELOC
Principal Balance and the denominator of which is the related Credit Limit.

            CREDIT LINE AGREEMENT:  With respect to any HELOC Mortgage Loan, the
related home equity line of credit agreement and promissory note executed by the
related Mortgagor and any amendment or modification thereof.

            CREDIT  SCORES:  With  respect to the  Mortgage  Loans,  statistical
credit  scores  obtained  by  mortgage  lenders  in  connection  with  the  loan
application to help assess a borrower's creditworthiness.

            CUSTODIAN:  BNY Western Trust Company, a California corporation,  or
any  replacement  Custodian  named by the Indenture  Trustee and approved by the
Insurer on prior written notice to the Servicer, the Sponsor, the Issuer and the
Insurer.

            CUT-OFF DATE: April 24, 2003.

            CUT-OFF DATE PRINCIPAL  BALANCE:  With respect to any Mortgage Loan,
the unpaid principal balance thereof as of the Cut-Off Date.

            DEFAULT: Any occurrence that is, or with notice or the lapse of time
or both would become, a Rapid Amortization Event.

            DEFECTIVE  MORTGAGE  LOAN:  A Mortgage  Loan  subject to  retransfer
pursuant to Section 2.03 or 2.05 of the Sale and Servicing Agreement.

            DEFERRED INTEREST: With respect to the Class A Notes and any Payment
Date, the excess,  if any, of interest due at the Class A Formula Note Rate over
interest due at the Class A Note Rate.

                                       4
<PAGE>

            DEFICIENCY  AMOUNT:  With  respect  to the Class A Notes and (1) any
Payment  Date,  the excess,  if any, of (a) the sum of (i) the Interest  Payment
Amount (excluding any Relief Act Shortfalls,  any interest shortfalls  resulting
from prepayments on the Mortgage Loans, and any Deferred  Interest) and (ii) the
Overcollateralization  Deficit(which  prior to the earlier of (x) the expiration
of the Demand Note and (y) the twenty-fourth  Payment Date shall be deemed to be
zero for purposes of the Policy) over (b) the Total  Available  Funds and (2) on
the Final Scheduled Payment Date, the outstanding principal balance of the Class
A Notes then  outstanding,  after taking into account all payments to be made to
such Class A Notes on that date.

            DEFINITIVE NOTES: As defined in Section 2.11 of the Indenture.

            DELINQUENT:  A Mortgage  Loan is  "delinquent"  if any  payment  due
thereon  is not  made by the  close  of  business  on the day  such  payment  is
scheduled to be due. A Mortgage Loan is "30 days delinquent" if such payment has
not been received by the close of business on the corresponding day of the month
immediately  succeeding the month in which such payment was due, or, if there is
no such  corresponding  day (e.g., as when a 30-day month follows a 31-day month
in which a payment  was due on the 31st day of such  month) then on the last day
of such immediately  succeeding  month.  Similarly for "60 days delinquent," "90
days delinquent" and so on.

            DEMAND NOTE:  The demand note issued by GreenPoint  Bank, a New York
State chartered savings bank, to the Insurer on May 19, 2003.

            DEMAND NOTE DRAW AMOUNT: As defined in Section 8.5 of the Indenture.

            DEMAND  NOTE  RESERVE  ACCOUNT:  As defined  in  Section  8.5 of the
Indenture.

            DEMAND NOTE RESERVE ACCOUNT  DEPOSIT AMOUNT:  An amount equal to the
sum of (i) (A) the dollar  amount of cash  deposited  in the Demand Note Reserve
Account  pursuant to Section 8.5 of the Indenture  multiplied by (B) 1.00,  plus
(ii) (A) the dollar amount of U.S.  Treasury debt obligations  having a maturity
of less than one year deposited in the Demand Note Reserve  Account  pursuant to
Section 8.5 of the Indenture  multiplied by (B) 0.98,  plus (iii) (A) the dollar
amount of U.S. Treasury debt obligations having a maturity of more than one year
but less than five years deposited in the Demand Note Reserve  Account  pursuant
to Section 8.5 of the Indenture multiplied by (B) 0.96, plus (iv) (A) the dollar
amount of U.S.  Treasury  debt  obligations  having a maturity of more than five
years but less than ten years  deposited  in the  Demand  Note  Reserve  Account
pursuant to Section 8.5 of the Indenture multiplied by (B) 0.94.

            DEPOSITORY:  The initial  Depository  shall be The Depository  Trust
Company, the nominee of which is Cede & Co., as the registered Holder of Class A
Notes evidencing $290,418,000 in initial aggregate principal amount of the Class
A Notes.  The  Depository  shall at all  times be a  "clearing  corporation"  as
defined in Section 8-102(5) of the UCC of the State of New York.

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

                                       5
<PAGE>

            DESIGNATED  TELERATE PAGE: The Dow Jones Telerate Service page 3750,
or such  other  page as may  replace  page 3750 on that  service  or such  other
service as may be nominated by the BBA as the information vendor for the purpose
of  displaying  the BBA's  "Interest  Settlement  Rates"  for  deposits  in U.S.
dollars.

            DETERMINATION  DATE:  With respect to any Payment  Date,  the fourth
Business  Day  prior  to such  Payment  Date or such  earlier  day as  shall  be
designated by the Insurer and the Indenture Trustee.

            DRAW:  With  respect  to any  HELOC  Mortgage  Loan,  an  additional
borrowing by the Mortgagor subsequent to the Cut-Off Date in accordance with the
related Credit Line Agreement.

            DRAW PERIOD:  With respect to any HELOC Mortgage Loan, the period of
time specified in the related Credit Line Agreement whereby a Mortgagor may make
a Draw under the related  Credit Line  Agreement,  not to exceed five or fifteen
years (as applicable) unless extended pursuant to such Credit Line Agreement and
the Sale and Servicing Agreement, such extension to be limited by the provisions
set forth in Section 2.04 of the Sale and Servicing Agreement.

            ELIGIBLE ACCOUNT: A segregated account that is (i) maintained with a
depository  institution  whose  short-term  debt  obligations at the time of any
deposit therein have the highest  short-term debt rating by the Rating Agencies,
(ii)  one or  more  accounts  maintained  with a  depository  institution  whose
long-term unsecured debt rating by the Rating Agencies is at least AA- and whose
accounts are fully insured by either the Savings  Association  Insurance Fund or
the Bank Insurance Fund of the Federal Deposit Insurance Corporation established
by such fund,  (iii) a segregated  trust account  maintained  with the Indenture
Trustee in its fiduciary capacity,  or (iv) otherwise  acceptable to each Rating
Agency and the Insurer as evidenced by a letter from each Rating  Agency and the
Insurer to the Indenture Trustee,  without reduction or withdrawal of their then
current ratings of the Class A Notes without regard to the Policy.

            ELIGIBLE  INVESTMENTS:  One or more of the following  (excluding any
callable investments purchased at a premium):

                  (i) direct  obligations of, or obligations fully guaranteed as
      to timely  payment of principal  and interest by, the United States or any
      agency or  instrumentality  thereof,  provided that such  obligations  are
      backed by the full faith and credit of the United States;

                  (ii) repurchase  agreements on obligations specified in clause
      (i) maturing not more than 30 days from the date of  acquisition  thereof,
      provided that (a) the short-term  unsecured debt  obligations of the party
      agreeing  to  repurchase  such  obligations  are at the time rated by each
      Rating Agency in its highest short-term rating category (which is A-1+ for
      Standard & Poor's and P-1 for Moody's), (b) the obligations must be valued
      daily at current market price plus accrued interest,  (c) the obligations,
      pursuant to such  evaluation,  must be equal, at all times, to 102% of the
      cash transferred to the Indenture  Trustee in exchange for the obligations
      and (d) the obligations must be

                                       6
<PAGE>

      delivered  to the  Indenture  Trustee  or,  if the  Indenture  Trustee  is
      supplying the obligations,  to an agent for the Indenture Trustee, in such
      a  manner  as to  accomplish  perfection  of a  security  interest  in the
      obligations by possession of certificated securities;

                  (iii)  certificates  of deposit,  time  deposits  and bankers'
      acceptances  (which,  if  Moody's is a Rating  Agency,  shall each have an
      original  maturity  of not more than 90 days and,  in the case of bankers'
      acceptances,  shall in no event have an original maturity of more than 365
      days) of any U.S.  depository  institution  or trust company  incorporated
      under the laws of the United  States or any state  thereof  and subject to
      supervision and  examination by federal and/or state banking  authorities,
      provided that the unsecured short-term debt obligations of such depository
      institution or trust company at the date of acquisition  thereof have been
      rated by each of Moody's and  Standard & Poor's in its  highest  unsecured
      short-term debt rating category;

                  (iv) commercial paper (having original  maturities of not more
      than  270  days) of any  corporation  incorporated  under  the laws of the
      United States or any state thereof  which on the date of  acquisition  has
      been rated by  Standard & Poor's and Moody's in their  highest  short-term
      debt rating categories;

                  (v) short-term  investment  funds  ("STIFS")  sponsored by any
      trust company or national banking association  incorporated under the laws
      of the United States or any state thereof which on the date of acquisition
      has been  rated by  Standard  & Poor's  and  Moody's  in their  respective
      highest applicable rating category;

                  (vi)  interests  in any money market fund which at the date of
      acquisition  of the  interests in such fund and  throughout  the time such
      interests  are held in such fund has a rating of Aaa by Moody's and either
      AAAm or  AAAm-G by  Standard  & Poor's  or such  lower  rating as will not
      result in the qualification, downgrading or withdrawal of the then-current
      rating  assigned to the Notes by each Rating Agency  without regard to the
      Policy; and

                  (vii) other  obligations or securities  that are acceptable to
      each Rating Agency and the Insurer as an Eligible Investment hereunder and
      will not result in a  reduction  in the then  current  rating of the Notes
      without regard to the Policy, as evidenced by a letter to such effect from
      such Rating  Agency and the Insurer and with respect to which the Servicer
      has received confirmation that, for tax purposes,  the investment complies
      with the last clause of this definition;

PROVIDED that no instrument  described hereunder shall evidence either the right
to receive (a) only interest  with respect to the  obligations  underlying  such
instrument or (b) both principal and interest  payments derived from obligations
underlying such instrument and the interest and principal  payments with respect
to such instrument  provided a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations;  and PROVIDED,  FURTHER,
that (x) no instrument  described  hereunder may be purchased at a price greater
than par if such  instrument  may be  prepaid or called at a price less than its
purchase  price prior to its stated  maturity and (y) all  Eligible  Investments
shall mature no later than the next Payment Date.

                                       7
<PAGE>

            ELIGIBLE  SUBSTITUTE  MORTGAGE LOAN: A Mortgage Loan  substituted by
the Sponsor,  with the consent of the  Insurer,  for a Defective  Mortgage  Loan
which must, on the date of such substitution,  (i) have an outstanding Principal
Balance (or, in the case of a substitution  of more than one Mortgage Loan for a
Defective Mortgage Loan, an aggregate Principal Balance),  equal to or less than
the  Principal  Balance  of the  Defective  Mortgage  Loan as of the  applicable
Cut-Off Date; (ii) except for HELOC Mortgage Loans still in their teaser period,
have a Loan Rate not less than the Loan Rate of the Defective  Mortgage Loan and
not more than 4.00% in excess of the Loan Rate of such Defective  HELOC Mortgage
Loan;  (iii) for HELOC Mortgage Loans,  have a Loan Rate based on the same Index
as the Defective  Mortgage Loan with  adjustments  to such Loan Rate made on the
same date on which the Defective  HELOC Mortgage  Loan's  interest rate adjusts;
(iv) for HELOC Mortgage Loans, have a Margin that is not less than the Margin of
the Defective HELOC Mortgage Loan and not more than 100 basis points higher than
the Margin for the Defective  HELOC  Mortgage  Loan;  (v) have a mortgage of the
same or higher level of priority as the Defective Mortgage Loan at the time such
Mortgage  Loan was  transferred  to the  Trust;  (vi) have a  remaining  term to
maturity  not more than 120 months  earlier  and not more than 180 months  later
than the remaining term to maturity of the Defective Mortgage Loan; (vii) comply
with each  representation and warranty as to the Mortgage Loans set forth in the
Sale and Servicing Agreement (deemed to be made as of the date of substitution);
(viii) have an original  Combined  Loan-to-Value  Ratio not greater than that of
the Defective  Mortgage Loan; and (ix) have a Credit Score greater than or equal
to the Credit Score of the  Defective  Mortgage  Loan at the time such  Mortgage
Loan was transferred to the Trust; (x) the related Mortgaged  Property is not an
investment  property  (unless the  Mortgaged  Property  related to the Defective
Mortgage Loan was an investment  property);  (xi) the related Mortgaged Property
is not a second home (unless the  Mortgaged  Property  related to the  Defective
Mortgage Loan was a second home); (xii) the Combined  Loan-to-Value Ratio is not
greater than 100%; and (xiii) in the case of HELOC Mortgage Loans, are no longer
in its teaser period.

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

            EVENT OF  SERVICING  TERMINATION:  As defined in Section 6.01 of the
Sale and Servicing Agreement.

            EVENT OF  TERMINATION:  As defined  in  Article  IX of the  Purchase
Agreement.

            EXCESS  CASHFLOW:  With respect to any Payment  Date,  the Available
Funds for such Payment Date which  remain on deposit in the  Collection  Account
after taking into account the distributions  listed in clauses (i) through (vii)
of Section 8.7(b) of the Indenture on such Payment Date.

            EXCESS  SPREAD  AMOUNT:  With  respect  to  any  Payment  Date,  the
fraction,  expressed as a percentage, equal to (x) (i) 12 multiplied by (ii) the
sum of the Available  Funds for the related Payment Date which remain on deposit
in the Collection Account after taking into account the distributions  listed in
clauses (i) through  (vii) of Section  8.7(d) of the  Indenture  with respect to
such Payment Date divided by (y) the Pool Balance as of such Payment Date.

            EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

                                       8
<PAGE>

            FDIC:  The Federal  Deposit  Insurance  Corporation or any successor
thereto.

            FINAL  SCHEDULED  PAYMENT DATE:  For the Class A Notes,  the Payment
Date in April  2029,  in each case  whereby  the  related  Noteholders  shall be
entitled to receive a payment of principal in an amount equal to the  respective
outstanding Note Principal Balance and any accrued and unpaid interest thereon.

            FORECLOSURE  PROFIT: With respect to a Liquidated Mortgage Loan, the
amount,  if any,  by which (i) the  aggregate  of its Net  Liquidation  Proceeds
exceeds (ii) the related  Principal  Balance (plus  accrued and unpaid  interest
thereon at the applicable Loan Rate from the date interest was last paid through
the last day in the related Collection Period) of such Liquidated  Mortgage Loan
immediately prior to the final recovery of its Liquidation Proceeds.

            FORMULA NOTE RATE: For any Interest Accrual Period, (x) with respect
to any Payment Date which occurs on or prior to the  Optional  Redemption  Date,
LIBOR plus 0.27% per annum and (y) for any Payment Date  thereafter,  LIBOR plus
0.54% per annum.

            GAAP:   Generally  accepted  accounting   principles,   consistently
applied.

            GRANT: Mortgage,  pledge, bargain, sell, warrant,  alienate, remise,
release,  convey,  assign,  transfer,  create,  grant a lien upon and a security
interest in and right of set-off against, deposit, set over and confirm pursuant
to the  Indenture.  A Grant  of the  Collateral  or of any  other  agreement  or
instrument  shall  include  all  rights,  powers  and  options  (but none of the
obligations)  of the Granting  party  thereunder,  including  the  immediate and
continuing right to claim for,  collect,  receive and give receipt for principal
and interest  payments in respect of the Collateral and all other monies payable
thereunder,  to give and  receive  notices  and  other  communications,  to make
waivers or other  agreements,  to  exercise  all rights  and  options,  to bring
proceedings  in the name of the Granting  party or otherwise and generally to do
and  receive  anything  that the  Granting  party is or may be entitled to do or
receive thereunder or with respect thereto.

            GROSS MARGIN:  As to any HELOC  Mortgage  Loans,  the percentage set
forth as the "Gross  Margin" for such HELOC  Mortgage  Loans on Exhibit A to the
Sale and Servicing Agreement.

            HELOC  MORTGAGE   LOANS:   Mortgage  Loans   consisting   solely  of
adjustable-rate  home equity  revolving  credit line loans under the Credit Line
Agreements.

            HELOC PRINCIPAL BALANCE: As to any HELOC Mortgage Loan, other than a
Liquidated Mortgage Loan, and as of any date, the related Cut-Off Date Principal
Balance, plus (i) any Additional Balance in respect of such HELOC Mortgage Loan,
minus (ii) all  collections  credited as principal  against the HELOC  Principal
Balance of any such HELOC  Mortgage Loan in accordance  with the related  Credit
Line Agreement prior to such day.

            HOLDER or NOTEHOLDER:  The Person in whose name a Note is registered
on the Note Register.

            INDEBTEDNESS:   With  respect  to  any  Person  at  any  time,   (a)
indebtedness  or  liability  of such Person for  borrowed  money  whether or not
evidenced by bonds, debentures,  notes or

                                       9
<PAGE>

other  instruments,  or for the deferred  purchase price of property or services
(including  trade  obligations);  (b) obligations of such Person as lessee under
leases  which  should  have been or  should  be, in  accordance  with  generally
accepted  accounting  principles,   recorded  as  capital  leases;  (c)  current
liabilities  of such Person in respect of funding  vested  benefits  under plans
covered by Title IV of ERISA; (d) obligations issued for or liabilities incurred
on the account of such Person;  (e)  obligations  or  liabilities of such Person
arising under  acceptance  facilities;  (f) obligations of such Person under any
guarantees,  endorsements  (other than for collection or deposit in the ordinary
course of business) and other  contingent  obligations  to purchase,  to provide
funds for  payment,  to supply  funds to invest in any  Person or  otherwise  to
assure a creditor  against loss;  (g)  obligations of such Person secured by any
lien on property or assets of such Person,  whether or not the obligations  have
been  assumed  by such  Person;  or (h)  obligations  of such  Person  under any
interest rate or currency exchange agreement.

            INDEMNIFICATION  AGREEMENT: The Indemnification  Agreement, dated as
of May 1,  2003,  by  and  among  the  Insurer  and  Lehman  Brothers,  Inc.  as
underwriter.

            INDENTURE:  The  Indenture,  dated as of May 1, 2003, by and between
the  Issuer  and  the  Indenture  Trustee,  as  the  same  may  be  amended  and
supplemented from time to time.

            INDENTURE  TRUSTEE:  The  Bank  of  New  York,  a New  York  banking
corporation,  not in its individual  capacity but as indenture trustee under the
Indenture, or any successor indenture trustee under the Indenture.

            INDENTURE  TRUSTEE  ISSUER  SECURED  OBLIGATIONS:  All  amounts  and
obligations  which the Issuer may at any time owe to the  Indenture  Trustee for
the benefit of the Noteholders under the Indenture or the Notes.

            INDEPENDENT:  When used with respect to any specified  Person,  that
the Person (a) is in fact independent of the Issuer,  any other obligor upon the
Notes, the Sponsor and any Affiliate of any of the foregoing  Persons,  (b) does
not have any  direct  financial  interest  or any  material  indirect  financial
interest in the Issuer, any such other obligor,  the Sponsor or any Affiliate of
any of the foregoing Persons and (c) is not connected with the Issuer,  any such
other obligor,  the Sponsor or any Affiliate of any of the foregoing  Persons as
an officer,  employee,  promoter,  underwriter,  trustee,  partner,  director or
Person performing similar functions.

            INDEPENDENT  CERTIFICATE:  A  certificate,  verification  report  or
opinion to be  delivered  to the  Indenture  Trustee and the  Insurer  under the
circumstances  described  in,  and  otherwise  complying  with,  the  applicable
requirements  of  Section  11.1 of the  Indenture,  prepared  by an  Independent
appraiser or other expert appointed  pursuant to an Issuer Order and approved by
the Indenture  Trustee and the Insurer in the exercise of reasonable  care,  and
such opinion or certificate  shall state that the signer has read the definition
of "Independent" in the Indenture and that the signer is Independent  within the
meaning thereof.

            INDEX:  With respect to each  Interest  Rate  Adjustment  Date for a
HELOC  Mortgage Loan, the highest "prime rate" as published in the "Money Rates"
table of THE WALL STREET  JOURNAL as of the last  business  day of the  previous
Billing Cycle.

            INITIAL POOL BALANCE: $287,542,470.48.

                                       10
<PAGE>

            INSURANCE  AGREEMENT:  The Insurance  Agreement,  dated as of May 1,
2003, by and among the Insurer,  the Seller,  the Servicer,  the Sponsor and the
Indenture Trustee.

            INSURANCE POLICY:  Any hazard,  title or primary mortgage  insurance
policy relating to a Mortgage Loan, but shall not include the Policy.

            INSURANCE  PROCEEDS:  Proceeds  paid by any insurer  (other than the
Insurer)  pursuant to any Insurance  Policy covering a Mortgage Loan, or amounts
required to be paid by the  Servicer  pursuant  to the last  sentence of Section
3.04 of the Sale and  Servicing  Agreement,  net of any  component  thereof  (i)
covering  any expenses  incurred by or on behalf of the  Servicer in  connection
with obtaining such proceeds,  (ii) that is applied to the restoration or repair
of the related Mortgaged Property, (iii) released to the Mortgagor in accordance
with the Servicer's  normal servicing  procedures or (iv) required to be paid to
any holder of a mortgage senior to such Mortgage Loan.

            INSURED AMOUNT: As defined in the Policy with respect to the Class A
Notes and as of any Payment Date

            INSURED PAYMENT:  As defined in the Policy with respect to the Class
A Notes.

            INSURER:  Ambac Assurance Corporation,  a Wisconsin-domiciled  stock
insurance corporation, and any successor thereto.

            INSURER  DEFAULT:  Any of (i) the  failure by the  Insurer to make a
payment required under the Policy in accordance with the terms thereof, (ii) the
voluntary or involuntary filing of a petition or other invocation of the process
of any court or government authority for the purpose of commencing or sustaining
a case under any federal or state bankruptcy,  insolvency or similar law against
the  Insurer  or (iii)  the  appointing  of a  receiver,  liquidator,  assignee,
trustee, custodian, sequestrator or other similar official of the Insurer or any
substantial  part of its property,  or ordering the winding up or liquidation of
the affairs of the Insurer.

            INSURER  ISSUER  SECURED  OBLIGATIONS:  All amounts and  obligations
which the  Issuer may at any time owe to or on behalf of the  Insurer  under the
Indenture, the Insurance Agreement or any other Basic Document.

            INTEREST  ACCRUAL  PERIOD:  With  respect to any Payment  Date,  the
period from and  including  the prior  Payment Date (or, in the case of the June
2003 Payment Date,  from and including the Closing Date) to, but excluding,  the
current  Payment Date,  with interest  being computed on the basis of the actual
number of days in such Interest Accrual Period and a 360-day year.

            INTEREST  COLLECTIONS:  With respect to any Payment Date, the sum of
all payments by or on behalf of Mortgagors  and any other  amounts  constituting
interest,  including  the  portion of Net  Liquidation  Proceeds  and  Insurance
Proceeds  allocated  to  interest  pursuant  to the  terms of the  related  Loan
Agreement (net of the  applicable  servicing fees and excluding the fees or late
charges or similar  administrative  fees paid by  Mortgagors),  less the related
Servicing Fee for the related  Collection  Period. The terms of the related Loan
Agreement  shall  determine  the  portion  of each  payment  in  respect of such
Mortgage Loan that constitutes principal or interest.

                                       11
<PAGE>

            INTEREST  DETERMINATION  DATE:  (i)  With  respect  to any  Interest
Accrual  Period (other than the initial  Interest  Accrual  Period),  the second
LIBOR  Business Day preceding the first day of such Interest  Accrual Period and
(ii) with  respect to the initial  Interest  Accrual  Period,  the second  LIBOR
Business Day preceding the Closing Date.

            INTEREST  PAYMENT AMOUNT:  With respect to the Class A Notes and any
Payment  Date,  (x) the  Class A Note  Rate  applicable  to  such  Payment  Date
multiplied by (y) the Note Principal  Balance  immediately prior to such Payment
Date  multiplied by (z) a fraction,  the numerator of which is the actual number
of days in the related  Interest  Accrual Period and the denominator of which is
360.

            INTEREST RATE  ADJUSTMENT  DATE: With respect to each HELOC Mortgage
Loan, any date on which the Loan Rate is adjusted in accordance with the related
Credit Line Agreement.

            INTEREST  SETTLEMENT  RATES:  Those rates which are displayed on the
Designated Telerate Page.

            ISSUER or  TRUST:  GreenPoint  Home  Equity  Loan  Trust  2003-1,  a
Delaware statutory trust, until a successor  replaces it and,  thereafter,  such
successor.

            ISSUER ORDER and ISSUER  REQUEST:  A written order or request signed
in the name of the Issuer by any one of its Authorized Officers and delivered to
the Indenture Trustee.

            ISSUER SECURED  OBLIGATIONS:  The Insurer Issuer Secured Obligations
and the Indenture Trustee Issuer Secured Obligations.

            ISSUER SECURED PARTIES:  Each of the Indenture Trustee in respect of
the Indenture  Trustee Issuer Secured  Obligations and the Insurer in respect of
the Insurer Issuer Secured Obligations.

            LATE  PAYMENT  RATE:  For any  Payment  Date,  the lesser of (a) the
greater of (i) the per annum rate of interest  publicly  announced  from time to
time by  Citibank,  N.A. as its prime  lending  rate (any change in such rate of
interest to be  effective  on the date such  change is  announced  by  Citibank,
N.A.),  plus 2% per annum and (ii) the then applicable  highest rate of interest
on the Class A Notes and (b) the maximum rate permissible under applicable usury
or similar laws limiting interest rates. The Late Payment Rate shall be computed
on the basis of the actual number of days elapsed over a year of 360 days.

            LIBOR:  With  respect  to any  Interest  Accrual  Period,  the  rate
determined by the Indenture Trustee on the related Interest  Determination  Date
appearing on the Designated  Telerate Page on that Interest  Determination  Date
based on the  Interest  Settlement  Rate for U.S.  dollar  deposits of one-month
maturity  set by the BBA as of the  Interest  Determination  Date.  If the BBA's
Interest  Settlement Rate does not appear on the Designated  Telerate Page as of
11:00 a.m. (London time) on such date, or if the Designated Telerate Page is not
available  on such date,  the  Indenture  Trustee will obtain such rate from the
Reuters  Monitor Money Rates Service page  "LIBOR01" or the Bloomberg  L.P. page
"BBAM." If such rate is not  published  for such  Interest  Determination  Date,
LIBOR for such  date will be the most  recently  published  Interest  Settlement

                                       12
<PAGE>

Rate. In the event that the BBA no longer sets an Interest  Settlement Rate, the
Indenture Trustee, with the prior written consent of the Insurer (but only if an
Insurer  Default shall not have occurred and be  continuing),  will designate an
alternative  index that has performed in a manner  substantially  similar to the
BBA's Interest Settlement Rate.

            LIBOR  BUSINESS  DAY:  Any day on which banks in London and New York
are open for conducting transactions in foreign currency and exchange.

            LIEN:   Any   mortgage,   deed   of   trust,   pledge,   conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance, lien
(statutory or other),  preference,  priority right or interest or other security
agreement  or  preferential  arrangement  of  any  kind  or  nature  whatsoever,
including,  without  limitation,  any conditional  sale or other title retention
agreement,  any financing lease having substantially the same economic effect as
any of the  foregoing and the filing of any  financing  statement  under the UCC
(other than any such financing statement filed for informational  purposes only)
or  comparable  law of  any  jurisdiction  to  evidence  any  of the  foregoing;
PROVIDED,  HOWEVER, that any assignment pursuant to Section 5.02 of the Sale and
Servicing Agreement shall not be deemed to constitute a Lien.

            LIFETIME  RATE CAP:  With respect to each HELOC  Mortgage  Loan with
respect to which the related Mortgage Note provides for a lifetime rate cap, the
maximum Loan Rate  permitted over the life of such HELOC Mortgage Loan under the
terms of the related Credit Line Agreement previously delivered to the Indenture
Trustee.

            LIQUIDATED  MORTGAGE LOAN: As to any Payment Date, any Mortgage Loan
in  respect  of which  the  Servicer  has  determined,  in  accordance  with the
servicing procedures  specified in the Sale and Servicing  Agreement,  as of the
end of the related  Collection  Period,  that all Liquidation  Proceeds which it
expects to recover with respect to the  disposition of such Mortgage Loan or the
related REO have been recovered.

            LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead)
which are incurred by the Servicer in  connection  with the  liquidation  of any
Mortgage Loan and not recovered under any Insurance Policy,  including,  without
limitation,  legal fees and expenses,  any unreimbursed amount expended pursuant
to  Section  3.06  of the  Sale  and  Servicing  Agreement  (including,  without
limitation,  amounts  advanced to correct defaults on any mortgage loan which is
senior to such Mortgage  Loan and amounts  advanced to keep current or pay off a
mortgage  loan that is senior to such  Mortgage  Loan)  respecting  the  related
Mortgage Loan and any related and unreimbursed expenditures with respect to real
estate  property  taxes,  water or sewer taxes,  condominium  association  dues,
property  restoration or preservation  or insurance  against  casualty,  loss or
damage.

            LIQUIDATION  LOSS  AMOUNTS:  With  respect to any  Payment  Date and
Mortgage  Loan  that  became a  Liquidated  Mortgage  Loan  during  the  related
Collection  Period,  the unrecovered  portion of the related  Principal  Balance
thereof at the end of such  Collection  Period,  after giving  effect to the Net
Liquidation Proceeds applied in reduction of such Principal Balance.

                                       13
<PAGE>

            LIQUIDATION   PROCEEDS:   Proceeds  (including  Insurance  Proceeds)
received in connection with the liquidation of any Mortgage Loan or related REO,
whether through trustee's sale, condemnation, foreclosure sale or otherwise.

            LOAN AGREEMENT: Any Credit Line Agreement or Mortgage Note.

            LOAN PURCHASE  PRICE:  With respect to any Mortgage  Loan  purchased
from the  Trust  pursuant  to  Section  2.03 or 2.05 of the  Sale and  Servicing
Agreement,  an amount equal to the Principal Balance of such Mortgage Loan as of
the date of purchase,  plus one month's  interest on the  outstanding  Principal
Balance thereof as of the beginning of the preceding  Collection Period computed
at the Loan Rate less the Servicing  Fee plus any costs and damages  incurred by
the  Trust  in  connection  with  any  violation  by such  Mortgage  Loan of any
predatory or abusive  lending  law,  together  with,  without  duplication,  the
aggregate  amount  of (i) all  delinquent  interest,  all  advances  made by the
Servicer and not subsequently  recovered from the related Mortgage Loan and (ii)
any Reimbursement Amount related to such Mortgage Loan.

            LOAN RATE:  With  respect to any HELOC  Mortgage  Loan and as of any
day,  the per annum rate of interest  applicable  under the related  Credit Line
Agreement to the  calculation of interest for such day on the Principal  Balance
of such HELOC Mortgage Loan. With respect to any Closed-End Mortgage Loan and as
of any day, the per annum rate of interest applicable under the related Mortgage
Note to the  calculation  of interest for such day on the  Principal  Balance of
such Closed-End Mortgage Loan.

            LOAN RATE CAP: With respect to each Mortgage Loan, the lesser of (i)
the Lifetime Rate Cap, if any, or (ii) the applicable  state usury  ceiling,  if
any.

            LOSSES:  Any  and  all  out-of-pocket   losses,   claims,   damages,
liabilities or expenses (including reasonable attorneys' fees and disbursements)
directly incurred by any Person specified in the Purchase  Agreement,  resulting
from  transactions  entered  into  under  the  Purchase  Agreement  (other  than
liability   for  taxes).   Losses  must  be  accounted  for  and  presented  for
reimbursement documented in reasonable detail and within a reasonable time.

            MANAGED  AMORTIZATION PERIOD: With respect to the Class A Notes, the
period  commencing on the Closing Date and ending on the earlier to occur of (x)
the June 2008 Payment Date and (y) the Payment Date which  immediately  precedes
the occurrence of a Rapid Amortization Event with respect to the Class A Notes.

            MANAGEMENT AGREEMENT:  The Management Agreement,  dated as of May 1,
2003, by and between the Company and the Issuer.

            MANAGEMENT FEE: $500 per month.

            MANAGER:  The  Person  acting  in  such  capacity  pursuant  to  the
Management Agreement or its successors or assigns,  which shall initially be the
Company.

            MARGIN:  With  respect  to  each  HELOC  Mortgage  Loan,  the  fixed
percentage  amount set forth in the related Loan Agreement which amount is added
to the Prime Rate in

                                       14
<PAGE>

accordance  with the terms of the related Loan  Agreement to determine  the Loan
Rate for such HELOC Mortgage Loan, subject to any maximum.

            MATERIAL  ADVERSE  CHANGE:  A  material  adverse  change  in (i) the
business,  results of  operations  or  properties  of the  Servicer  or (ii) the
ability of the Servicer to perform its obligations  under the Sale and Servicing
Agreement.

            MAXIMUM PRINCIPAL PAYMENT: With respect to the Class A Notes and (i)
any Payment  Date  during the Managed  Amortization  Period,  the Net  Principal
Collections and (ii) any Payment Date during the Rapid Amortization Period, 100%
of the Principal Collections relating to such Payment Date.

            MAXIMUM  RATE:  With  respect  to the  Class A  Notes  and as to any
Interest  Accrual  Period,  the  Weighted  Average Net Loan Rate of the Mortgage
Loans for the Collection Period during which such Interest Accrual Period begins
(adjusted to an effective rate  reflecting  accrued  interest  calculated on the
basis of the actual  number of days in the  Interest  Accrual  Period and a year
assumed to consist of 360 days).

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

            MERS MORTGAGE  LOAN: Any Mortgage Loan  registered  with MERS on the
MERS System.

            MERS  SYSTEM:  The  system  of  recording   transfers  of  mortgages
electronically maintained by MERS.

            MINIMUM MONTHLY  PAYMENT:  With respect to any Mortgage Loan and any
month,  the minimum amount required to be paid by the related  Mortgagor in that
month.

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

            MORTGAGE: The mortgage, deed of trust or other instrument creating a
first or junior  lien on an  estate  in fee  simple  interest  in real  property
securing a Mortgage Note or Credit Line Agreement.

            MORTGAGE FILE: The mortgage  documents  listed in Section 2.01(c) to
the Sale and Servicing  Agreement  pertaining to a particular  Mortgage Loan and
any additional  documents  required to be added to the Mortgage File pursuant to
the Sale and Servicing Agreement.

            MORTGAGE LOAN  SCHEDULE:  With respect to any date,  the schedule of
Mortgage  Loans  included  in the Trust on such date.  The  schedule of Mortgage
Loans as of the Cut-Off  Date is the schedule set forth in Exhibit A to the Sale
and  Servicing  Agreement,  which  schedule  sets forth as to each such Mortgage
Loan, to the extent applicable, (i) the Cut-Off Date Principal Balance, (ii) the
Credit  Limit,  (iii) the Gross  Margin,  (iv) the  Lifetime  Rate Cap,  (v) the
account  number,  (vi) the current Loan Rate,  (vii) the Combined  Loan-to-Value
Ratio,  (viii) a code  specifying  the  property  type,  (ix) a code  specifying
documentation type and (x) a code specifying

                                       15
<PAGE>

lien position. The Mortgage Loan Schedule will be deemed to be amended from time
to time to reflect Additional Balances and Eligible Substitute Mortgage Loans.

            MORTGAGE LOANS:  Any HELOC Mortgage Loans,  including any Additional
Balances with respect thereto,  as well as any Closed-End  Mortgage Loans,  that
are transferred to the Trust and assigned to the Indenture  Trustee  pursuant to
Sections  2.01 of the Sale and  Servicing  Agreement,  together with the Related
Documents,  exclusive of mortgage loans that are retransferred to the Sponsor or
the Servicer  from time to time pursuant to Sections  2.03,  2.05 or 2.07 of the
Sale  and  Servicing  Agreement  as from  time to time are held as a part of the
Trust. The Mortgage Loans originally so held are identified in the Mortgage Loan
Schedule  delivered on the Closing Date.  The Mortgage  Loans shall also include
any  Eligible  Substitute  Mortgage  Loans  substituted  by  the  Sponsor  for a
Defective  Mortgage  Loan  pursuant  to  Sections  2.03 and 2.05 of the Sale and
Servicing Agreement. The term "Mortgage Loan" includes the terms "HELOC Mortgage
Loans" and "Closed-End Mortgage Loans."

            MORTGAGE NOTE: The note or other evidence of indebtedness evidencing
the indebtedness of a Mortgagor under a Closed-End Mortgage Loan.

            MORTGAGED  PROPERTY:  The  underlying  property,  including any real
property and improvements thereon, securing a Mortgage Loan.

            MORTGAGOR: The obligor on a Mortgage Note or Credit Line Agreement.

            NET LIQUIDATION  PROCEEDS:  With respect to any Liquidated  Mortgage
Loan,  Liquidation  Proceeds net of  Liquidation  Expenses;  PROVIDED,  that Net
Liquidation Proceeds shall not be an amount less than zero.

            NET LOAN RATE:  With respect to any Mortgage Loan and as to any day,
the Loan Rate  (assuming  each HELOC  Mortgage  Loan is fully  indexed) less the
Servicing Fee Rate, the Premium Percentage and the Trustee Fee Rate.

            NET PRINCIPAL  COLLECTIONS:  The excess of (x) Principal Collections
over (y) the sum of (A) the aggregate amount of all Additional  Balances arising
during the related Collection Period plus (B) the Additional Balance Contributed
Amounts  outstanding as of the opening of business on the related  Payment Date;
PROVIDED,  HOWEVER, that in no event will Net Principal Collections be less than
zero with respect to any Payment Date.

            NOTE: A Class A Note, but not any Residual Certificate.

            NOTEHOLDERS: Any Holder of a Class A Note.

            NOTE OWNER: With respect to a Book-Entry Note, the Person who is the
owner of such Book-Entry Note, with respect to a Definitive Note, the registered
owner of such Definitive Note.

            NOTE PAYING AGENT:  The  Indenture  Trustee or any other Person that
meets the eligibility  standards for the Indenture  Trustee specified in Section
6.11 of the Indenture and is

                                       16
<PAGE>

authorized  by the  Issuer  to  make  payments  to and  distributions  from  the
Collection  Account,  including payment of principal of or interest on the Notes
on behalf of the Issuer.

            NOTE PRINCIPAL BALANCE:  With respect to the Class A Notes and as of
any time of determination, the Original Note Principal Balance, less any amounts
actually  distributed  as  principal  to the Class A Notes on all prior  Payment
Dates.

            NOTE REGISTER: As defined in Section 2.3 of the Indenture.

            NOTE REGISTRAR: As defined in Section 2.3 of the Indenture.

            NOTEHOLDER  or  HOLDER:  Any  Holder of a Class A Note whose name is
registered on the Note Register.

            OFFICER'S  CERTIFICATE:  A  certificate  signed  by  any  Authorized
Officer of a Person that complies with the  applicable  requirements  of Section
11.1 of the Indenture.

            OPINION OF COUNSEL:  One or more opinions of counsel who may, except
as otherwise expressly provided in the Indenture,  be employees of or counsel to
the Issuer and, if  addressed to the Insurer,  satisfactory  to such party,  and
which  shall  comply with any  applicable  requirements  of Section  11.1 of the
Indenture, and if addressed to the Insurer, shall be satisfactory to such party;
PROVIDED,  that any  opinion  relating  to  matters of  federal,  state or local
taxation must be provided by independent, outside counsel.

            OPTIONAL  REDEMPTION  DATE:  The date on which the  Sponsor is first
able to exercise its right of optional  redemption of the Class A Notes pursuant
to Section 10.1 of the Indenture or Section 7.01(b)(i) of the Sale and Servicing
Agreement.

            ORIGINAL NOTE PRINCIPAL BALANCE: $290,418,000.

            ORIGINAL POOL BALANCE: $287,542,470.48.

            OUTSTANDING: As of the date of determination,  all Notes theretofore
authenticated and delivered under the Indenture except:

                  (i)  Notes  theretofore  canceled  by the  Note  Registrar  or
      delivered to the Note Registrar for cancellation;

                  (ii) Notes or portions  thereof the payment for which money in
      the necessary  amount has been  theretofore  deposited  with the Indenture
      Trustee or any Note  Paying  Agent in trust for the  Holders of such Notes
      (PROVIDED,  HOWEVER, that if such Notes are to be redeemed, notice of such
      redemption  has been duly given  pursuant to the  Indenture  or  provision
      therefor, satisfactory to the Indenture Trustee); and

                  (iii)  Notes in  exchange  for or in lieu of other Notes which
      have been  authenticated  and delivered  pursuant to the Indenture  unless
      proof  satisfactory  to the Indenture  Trustee is presented  that any such
      Notes are held by a bona fide purchaser;

                                       17
<PAGE>

PROVIDED,  HOWEVER,  that Notes which have been paid with proceeds of the Policy
shall  continue to remain  Outstanding  for purposes of the Indenture  until the
Insurer has been paid as subrogee  under the Insurance  Agreement or the Insurer
has been  reimbursed  pursuant to the  Insurance  Agreement,  as  evidenced by a
written  notice from the Insurer  delivered to the  Indenture  Trustee,  and the
Insurer  shall be deemed to be the Holder  thereof to the extent of any payments
thereon made by the Insurer; PROVIDED,  FURTHER, that in determining whether the
Holders of the requisite Outstanding Amount of the Notes have given any request,
demand,  authorization,  direction, notice, consent or waiver hereunder or under
any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes,
the  Sponsor  or  any  Affiliate  of  any  of the  foregoing  Persons  shall  be
disregarded  and deemed  not to be  Outstanding,  except  that,  in  determining
whether  the  Indenture  Trustee  shall be  protected  in relying  upon any such
request, demand, authorization, direction, notice, consent or waiver, only Notes
that a Responsible  Officer of the Indenture Trustee either actually knows to be
so owned or has received  written notice thereof shall be so disregarded.  Notes
so owned that have been pledged in good faith may be regarded as  Outstanding if
the  pledgee  establishes  to the  satisfaction  of the  Indenture  Trustee  the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer,  any other  obligor upon the Notes,  the Sponsor or any Affiliate of
any of the foregoing Persons.

            OUTSTANDING AMOUNT:  With respect to any date of determination,  the
aggregate Note Principal Balance of all the Notes Outstanding as of such date of
determination.

            OVERCOLLATERALIZATION  AMOUNT: With respect to the Class A Notes and
as of any Payment Date,  the excess,  if any, of (x) the Pool Balance as of such
Payment Date over (y) the Note Principal  Balance as of such Payment Date (after
taking into account any reductions to such Note Principal Balance resulting from
payments  made  pursuant  to  clauses  (v) and  (vi) of  Section  8.7(b)  of the
Indenture on such Payment Date).

            OVERCOLLATERALIZATION DEFICIENCY AMOUNT: With respect to the Class A
Notes  and  any  Payment  Date,  the  excess,  if  any,  of  (i)  the  Specified
Overcollateralization  Amount  applicable  to such  Payment  Date  over (ii) the
Overcollateralization Amount applicable to such Payment Date.

            OVERCOLLATERALIZATION DEFICIT: With respect to the Class A Notes and
any Payment Date, the amount,  if any, by which (i) the aggregate Note Principal
Balance,  after  taking  into  account  the  payment to the  Noteholders  of all
principal from sources other than the Policy on such Payment Date,  exceeds (ii)
the Pool  Balance as of such  Payment  Date.  Solely for the purpose of drawings
under   the   Policy,   the   Insurer   will   not  be   required   to  pay  any
Overcollateralization  Deficit until the Demand Note has expired;  PROVIDED that
if GreenPoint Bank fails to make any payments of  Overcollateralization  Deficit
required to be paid under the Demand Note when due on the twenty-fourth  Payment
Date or if an  Overcollateralization  Deficit remains after  GreenPoint Bank has
made payment under the Demand Note on that date, then the Policy shall cover any
such Overcollateralization Deficit.

            OVERCOLLATERALIZATION  REDUCTION AMOUNT: With respect to the Class A
Notes and any Payment Date, the excess, if any, of (x) the Overcollateralization
Amount over (y) the  Specified  Overcollateralization  Amount  assuming that the
Maximum  Principal  Payment  had been  distributed  to the  Noteholders  on such
Payment Date.

                                       18
<PAGE>

            OWNER  TRUSTEE:   Wilmington  Trust  Company,   a  Delaware  banking
corporation,  not in its individual capacity,  but solely as owner trustee under
the Trust Agreement, and any successor Owner Trustee thereunder.

            OWNER TRUSTEE FEE: A fee which is  separately  agreed to between the
Servicer and the Owner Trustee and is payable to the Owner Trustee .

            OWNER  TRUSTEE  FEE  RATE:  The per  annum  rate at which  the Owner
Trustee Fee is calculated.

            PAYMENT DATE: The fifteenth day of each month, or if such day is not
a Business Day, then the next Business Day,  beginning in the month  immediately
following the Closing Date.

            PERCENTAGE  INTEREST:  As to any Note,  the  percentage  obtained by
dividing  the  principal  denomination  of  such  Note by the  aggregate  of the
principal  denominations  of all  Notes.  As to any  Residual  Certificate,  the
percentage set forth on the face of such Residual Certificate.

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

            POLICY: The financial guaranty insurance policy No. AB0666BE and any
endorsement  thereto,  with  respect to the Class A Notes,  dated May 19,  2003,
issued  by  the  Insurer  to  the  Indenture  Trustee  for  the  benefit  of the
Noteholders.

            POLICY  PAYMENT  ACCOUNT:  As  defined  in  Section  8.5(c)  of  the
Indenture.

            POOL:  The pool of Mortgage  Loans held by the Issuer  including any
Eligible Substitute Mortgage Loan delivered in the replacement thereof.

            POOL  BALANCE:  With  respect  to any  date,  the  aggregate  of the
Principal Balances of all of the Mortgage Loans as of such date.

            POOL DELINQUENCY  RATE: With respect to any Collection  Period,  the
fraction,  expressed  as a  percentage,  equal  to (x) the  aggregate  Principal
Balances of all Mortgage  Loans that are 90 or more days  delinquent  (including
all foreclosures and REO properties) as of the close of business on the last day
of such Collection  Period over (y) the Pool Balance as of the close of business
on the last day of such Collection Period.

            POOL FACTOR: A seven-digit  decimal which the Servicer shall compute
monthly  expressing the related Note  Principal  Balance as of each Payment Date
(after giving effect to any distribution of principal on such Payment Date) as a
proportion of the Original Note Principal Balance. On the Closing Date, the Pool
Factor will be 1.0000000.  Thereafter,  the Pool Factor shall decline to reflect
reductions  in the  Note  Principal  Balance  resulting  from  distributions  of
principal to the Notes.

                                       19
<PAGE>

            PREDECESSOR  NOTE:  With  respect  to  any  particular  Note,  every
previous Note evidencing all or a portion of the same interest as that evidenced
by such  particular  Note;  and,  for the purpose of this  definition,  any Note
authenticated  and  delivered  under  Section 2.4 of the  Indenture in lieu of a
mutilated,  lost,  destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

            PREFERENCE AMOUNT: As defined in the Policy.

            PREFERENCE CLAIM: As defined in Section 5.13(b) of the Indenture.

            PREMIUM  AMOUNT:  With  respect  to the Notes and as to any  Payment
Date, the product of (x) the Premium Percentage,  (y) the Note Principal Balance
immediately  prior to such  Payment  Date and (z) the  fraction,  expressed as a
percentage,  the  numerator of which is the number of days elapsed from the last
Payment Date to the related Payment Date and the denominator of which is 360.

            PREMIUM PERCENTAGE: As defined in the Insurance Agreement.

            PRIME RATE: The interest rate entitled "Prime Rate" in the published
Money Rates table of THE WALL STREET JOURNAL.

            PRINCIPAL  BALANCE:  As of any date and with respect to any Mortgage
Loan,  the HELOC  Principal  Balance or the  Closed-End  Principal  Balance,  as
applicable. For purposes of this definition, a Liquidated Mortgage Loan shall be
deemed to have a Principal Balance equal to the Principal Balance of the related
Mortgage Loan  immediately  prior to the final  recovery of related  Liquidation
Proceeds and a Principal Balance of zero thereafter.

            PRINCIPAL COLLECTIONS:  With respect to any Payment Date, the sum of
all payments by or on behalf of Mortgagors  and any other  amounts  constituting
principal  (including,  but not limited to, Substitution Amounts and any portion
of Insurance  Proceeds,  Net Liquidation  Proceeds or amounts to be deposited to
the  Collection  Account  pursuant  to  Section  7.01 of the Sale and  Servicing
Agreement  that are  applicable  to  principal,  in each  case as  allocable  to
principal of the applicable  Mortgage Loan, but excluding  Foreclosure  Profits)
collected by the Servicer  under the related  Mortgage  Loans during the related
Collection  Period. The terms of the related Loan Agreements shall determine the
portion of each payment in respect of a Mortgage Loan that constitutes principal
or interest.

            PRINCIPAL  PAYMENT AMOUNT:  With respect to the Class A Notes on any
Payment Date, the excess,  if any, of (x) the Maximum Principal Payment over (y)
the Overcollateralization Reduction Amount.

            PROCEEDING:  Any suit in equity,  action at law or other judicial or
administrative proceeding.

            PURCHASE AGREEMENT:  The Mortgage Loan Purchase Agreement,  dated as
of May 1, 2003,  by and between the Company and the Sponsor  with respect to the
Mortgage Loans.

            PURCHASED  ASSETS:  As  defined  in  Section  2.01  of the  Purchase
Agreement.

                                       20
<PAGE>

            PURCHASE PRICE: With respect to the Mortgage Loans as of the Cut-Off
Date (and any Eligible  Substitute  Mortgage Loan as of the date delivered),  at
least 100% of the Principal Balance; with respect to all Additional Balances, at
least 100% of the Principal Balance (as such term is used in Section 2.01 of the
Purchase Agreement).

            PURCHASER  NOTE:  As  defined  in  Section  10.02  of  the  Purchase
Agreement.

            RAPID AMORTIZATION EVENT: Any of those "Rapid  Amortization  Events"
described in Section 12.1 of the Indenture.

            RAPID  AMORTIZATION  PERIOD:  With respect to the Class A Notes, the
period which immediately follows the end of the Managed Amortization Period.

            RATING AGENCY: Each of Moody's and Standard & Poor's. If such agency
or a  successor  is no  longer  in  existence,  "Rating  Agency"  shall  be such
statistical credit rating agency, or other comparable Person,  designated by the
Sponsor  and the  Insurer,  notice  of which  designation  shall be given to the
Indenture  Trustee.  References in any Basic  Document to the highest short term
unsecured  rating  category of a Rating  Agency shall means A1+ or better in the
case of  Standard & Poor's and P1 or better in the case of  Moody's,  and in the
case of any other Rating  Agency shall mean the ratings such other Rating Agency
deems equivalent to the foregoing  ratings.  References in any Basic Document to
the highest long-term rating category of a Rating Agency shall mean "AAA" in the
case of Standard & Poor's and "Aaa" in the case of  Moody's,  and in the case of
any other Rating Agency, the rating such other Rating Agency deems equivalent to
the foregoing ratings.

            REALIZED  LOSSES:  For any  Payment  Date will  equal  the  positive
difference  between (i) the Principal  Balances of all Mortgage  Loans that were
liquidated  during the related  Collection Period and (ii) the principal portion
of Net Liquidation Proceeds of such Mortgage Loans.

            RECORDATION  EVENT:  Any of (i) the long-term  senior unsecured debt
rating of  GreenPoint  Bank no longer  being rated at least "BBB-" by Standard &
Poor's  and "Baa3" by  Moody's,  (ii) the  resignation  of  GreenPoint  Mortgage
Funding,  Inc.,  as  Servicer,  (iii) the  occurrence  of an Event of  Servicing
Termination,  (iv) the  failure  of  GreenPoint  Bank to  maintain  the  capital
standards  established  for "well  capitalized"  institutions  under the  prompt
corrective action  regulations  issued pursuant to the Federal Deposit Insurance
Corporation  Improvement  Act of 1991,  as amended,  or (v) the  occurrence of a
bankruptcy, insolvency or foreclosure relating to the Issuer; PROVIDED, that any
Recordation  Event may be waived by the Insurer by its providing  written notice
of such  waiver  to the  Servicer  and the  Indenture  Trustee;  and (vi) at the
written request of the Insurer to the Indenture Trustee to record Assignments of
Mortgages because the Insurer has determined,  in the exercise of its reasonable
judgment,  that such recordation is necessary to protect the Insurer's  interest
with respect to such Mortgage  Loans because (a) a Material  Adverse Change with
respect to the  Servicer  has  occurred,  (b) the Insurer has been so advised by
counsel  as a  result  of a change  that  occurred  after  the  Closing  Date in
applicable law or the interpretation thereof or (c) with respect to a particular
Mortgage Loan, the insolvency of the related Mortgagor.

                                       21
<PAGE>

            RECORD  DATE:  The Business Day  immediately  preceding  the related
Payment Date;  PROVIDED,  HOWEVER,  that following the date on which  Definitive
Notes are  available,  the Record Date for the Notes shall be the last  Business
Day of the calendar month  preceding the month in which the related Payment Date
occurs.

            REDEMPTION  DATE: In the case of a redemption of any Notes  pursuant
to Section  10.1 of the  Indenture,  the Payment  Date  specified by the Sponsor
pursuant to Section 7.01(b) of the Sale and Servicing Agreement.

            REDEMPTION  PRICE: In the case of a redemption of any Notes pursuant
to Section 10.1 of the Indenture, an amount equal to the unpaid principal amount
of the then  outstanding  principal  amount of the Notes  being  redeemed,  plus
accrued and unpaid interest  thereon to but excluding the Redemption  Date, plus
any outstanding, Reimbursement Amount.

            REIMBURSEMENT  AMOUNT:  As of any Payment  Date with  respect to the
Class A Notes,  the sum of (x)(i) all  Insured  Payments  made  pursuant  to the
Policy by the  Insurer  and in each case not  previously  repaid to the  Insurer
pursuant to Section 8.7(d)(vii) of the Indenture,  plus (ii) interest accrued on
each such payment made pursuant to the Policy not previously  repaid  calculated
at the Late  Payment  Rate  from the date the  Indenture  Trustee  received  the
related Insured  Payments and (y)(i) any other amounts then due and owing to the
Insurer under the Insurance Agreement, plus (ii) interest on such amounts at the
Late Payment Rate.

            RELATED  DOCUMENTS:  As defined  in Section  2.01(c) of the Sale and
Servicing Agreement.

            RELIEF ACT SHORTFALL:  Shortfalls in interest collections  resulting
from the  application of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended or similar state laws.

            REMOVAL  DATE:  As defined in Section 2.07 of the Sale and Servicing
Agreement.

            REMOVAL  NOTICE  DATE:  As defined  in Section  2.07 of the Sale and
Servicing Agreement.

            REO:  A  Mortgaged   Property   acquired  by  the  Servicer  or  any
sub-servicer  on behalf of the Trust  through  foreclosure  or  deed-in-lieu  of
foreclosure in connection with a defaulted Mortgage Loan.

            REPURCHASE  PRICE: The sum of (a) the outstanding  principal balance
of the related  Mortgage Loan as of such date of repurchase plus (b) any accrued
interest as of such date.

            RESIDUAL  CERTIFICATE:  As  defined  in  Section  1.1 of  the  Trust
Agreement.

            RESIDUAL CERTIFICATEHOLDER: Holder of the Residual Certificate.

            RESPONSIBLE  OFFICER:  With respect to the Indenture  Trustee or any
officer  of  the   Indenture   Trustee  with  direct   responsibility   for  the
administration of the Indenture and, also, with

                                       22
<PAGE>

respect  to a  particular  matter,  any other  officer  to whom  such  matter is
referred  because  of such  officer's  knowledge  of and  familiarity  with  the
particular subject.

            SAIF: The Savings  Association  Insurance Fund, as from time to time
constituted,  created  under the  Financial  Institutions  Reform,  Recovery and
Enhancement Act of 1989, or if at any time after the execution of the Indenture,
the Savings Association Insurance Fund is not existing and performing duties now
assigned to it, the body performing such duties on such date.

            SALE AND  SERVICING  AGREEMENT:  The Sale and  Servicing  Agreement,
dated as of May 1 , 2003, by and among the Issuer, the Sponsor, the Servicer and
the Indenture  Trustee,  as the same may be amended or supplemented from time to
time.

            SEC:  The  Securities  and  Exchange  Commission  and any  successor
thereto.

            SELLER:  GreenPoint Mortgage Funding,  Inc., a New York corporation,
in its capacity as Seller pursuant to the Purchase Agreement.

            SERVICER: GreenPoint Mortgage Funding, Inc., a New York corporation,
any successor thereto and, after its termination or resignation as Servicer, any
successor.

            SERVICING  CERTIFICATE:  A  certificate  completed and executed by a
Servicing  Officer in  accordance  with Section  4.01 of the Sale and  Servicing
Agreement.

            SERVICING  FEE: With respect to any Payment Date, the product of (i)
one-twelfth of the Servicing Fee Rate and (ii) the aggregate  Principal  Balance
of the Mortgage Loans on the first day of the Collection  Period  preceding such
Payment Date (or at the Cut-Off Date with respect to the first Payment Date).

            SERVICING FEE RATE: 0.50% per annum.

            SERVICING  OFFICER:  Any  officer of the  Servicer  involved  in, or
responsible  for, the  administration  and  servicing of the Mortgage Loan whose
name and specimen  signature appear on a list of servicing officers furnished to
the  Indenture  Trustee  (with a copy to the  Insurer)  by the  Servicer  on the
Closing Date, as such list may be amended from time to time.

            SPECIFIED  OVERCOLLATERALIZATION AMOUNT: With respect to any Payment
Date,  the amount equal to the greater of: (I) the sum of (a) the related Spread
Squeeze Amount plus (b) 90% of the Principal Balance of Mortgage Loans which are
180 or more days  Delinquent  as of the close of business of the last day of the
related  Collection  Period  plus (c)(i)  prior to the 31st  Payment  Date,  the
greater of (x) 2.50% of the Original Note Principal  Balance and (y) the Step-Up
Overcollateralization  Amount  and (ii) on or after  the 31st  Payment  Date the
greater of (x) the lesser of (A) 2.50% of the Original  Note  Principal  Balance
and (B) 5.00% of the Pool  Balance as of the  current  Payment  Date and (y) the
Step-Up  Overcollateralization  Amount;  and (II) the sum of the related  Spread
Squeeze  Amount and 0.50% of the  Original  Note  Principal  Balance;  PROVIDED,
HOWEVER,  that no reduction in clause  (c)(ii)  shall occur unless (i) aggregate
cumulative  Liquidation Loss Amounts with respect to the Pool as a percentage of
the Initial  Pool  Balance are less than 3.75% and (ii) the Three Month  Rolling
Delinquency Rate for is less than 3.00%.

                                       23
<PAGE>

            STEP-UP   OVERCOLLATERALIZATION   AMOUNT:  If  aggregate  cumulative
Liquidation Loss Amounts as a percentage of the Original Note Principal  Balance
exceed the following percentages on the specified Payment Dates,

                  Payment Dates                         Percentage
                  -------------                         ----------

                  1st - 12th                            1.50%

                  13th - 24th                           2.75%

                  25th - 36th                           4.00%

                  37th - 48th                           5.00%

                  49th +                                6.00%

the Step-Up  Overcollateralization  Amount will equal (a) 5.00% of the  Original
Note Principal  Balance,  prior to the 31st Payment Date and (b) on or after the
31st  Payment  Date,  the  lesser of (x) 5.00% of the  Original  Note  Principal
Balance  and  (y)  10.00%  of the  Pool  Balance  as of  current  Payment  Date.
Otherwise, the Step-Up Overcollateralization Amount is zero.

            SPONSOR:    GreenPoint    Mortgage    Securities    Inc.    or   its
successors-in-interest.

            SPREAD SQUEEZE AMOUNT: As of any Payment Date (A) on or prior to the
twelfth  Payment Date, $0 and (B) after the twelfth Payment Date, a number equal
to the product of (I) two times the positive difference, if any of (x) 1.75% and
(y) the related Spread  Squeeze  Percentage and (II) the Pool Balance as of such
Payment Date.

            SPREAD SQUEEZE PERCENTAGE:  As of any Payment Date after the twelfth
Payment Date, a fraction (expressed as a percentage),  the numerator of which is
the product of 12 and the related  Available  Funds for such  Payment Date which
remain on deposit in the  Collection  Account  after  taking  into  account  the
distributions  listed in clauses  (i)  through  (vii) of  Section  8.7(b) of the
Indenture with respect to such Payment Date and the  denominator of which is the
related Pool Balance as of such Payment Date.

            STANDARD & POOR'S: Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., or its successor in interest.

            STEPDOWN DATE: With respect to the Class A Notes, the later to occur
of (a) the 31st  Payment  Date and (b) the first  Payment Date on which the Pool
Balance  has been  reduced to 50% or less of the Pool  Balance as of the Cut-Off
Date.

            SUBSTITUTE  CUT-OFF  DATE:  With respect to any Eligible  Substitute
Mortgage Loan, the opening of business on the first day of the calendar month in
which such Eligible Substitute Mortgage Loan is conveyed to the Trust.

            SUBSTITUTION  AMOUNTS:  In  connection  with  the  delivery  of  any
Eligible Substitute  Mortgage Loan, if the outstanding  principal amount of such
Eligible Substitute  Mortgage Loan as of the applicable  Substitute Cut-Off Date
is less than the related  Principal  Balance of the Mortgage Loan being replaced
as of such Substitute Cut-Off Date, an amount equal to such

                                       24
<PAGE>

difference  together with accrued and unpaid interest on such amount  calculated
at the Loan Rate net of the  Servicing  Fee, if any, of the Mortgage  Loan being
replaced.

            TERMINATION  DATE:  The latest of (i) the  termination of the Policy
and the return of the Policy to the Insurer for  cancellation,  (ii) the date on
which the Insurer  shall have  received all amounts due and owing to the Insurer
under the Insurance  Agreement and (iii) the date on which the Indenture Trustee
shall have received  payment and  performance  of all Indenture  Trustee  Issuer
Secured Obligations.

            THREE  MONTH  ROLLING  DELINQUENCY  RATE:  As of  any  Payment  Date
beginning  with the third  Payment  Date,  a number  equal to the average of the
related  Pool  Delinquency  Rates  for each of the three  immediately  preceding
Collection Periods.

            TOTAL AVAILABLE FUNDS:  With respect to any Payment Date, the sum of
(i)  Available  Funds (after taking into account the  distributions  pursuant to
clauses (i) and (ii) of Section  8.7(d) of the  Indenture for such Payment Date)
and (ii) amounts available from the Demand Note, in each case as of such Payment
Date.

            TRANSFER  DATE:  With respect to each Eligible  Substitute  Mortgage
Loan, the date on which such Eligible  Substitute  Mortgage Loan shall have been
transferred to the Trust.

            TRUST AGREEMENT:  The Trust  Agreement,  dated as of May 1, 2003, by
and between the  Sponsor and the Owner  Trustee,  as the same may be amended and
supplemented from time to time.

            TRUST  PROPERTY:  All  property and  proceeds  conveyed  pursuant to
Section 2.01 of the Sale and Servicing Agreement, and certain other rights under
that Agreement.

            TRUSTEE  FEE:  A fee  which is  separately  agreed  to  between  the
Servicer and the Indenture Trustee.

            TRUSTEE  FEE RATE:  The per annum rate at which the  Trustee  Fee is
calculated.

            UCC: Unless the context otherwise  requires,  the Uniform Commercial
Code, as in effect in the relevant jurisdiction, as amended from time to time.

            WEIGHTED  AVERAGE NET LOAN RATE: As to any  Collection  Period,  the
average of the daily Net Loan Rate for each  Mortgage Loan i for each day during
the related  Billing  Cycle,  weighted on the basis of the daily  average of the
related Principal  Balances for each day in such Billing Cycle for each Mortgage
Loan as  determined  by the Servicer in accordance  with the  Servicer's  normal
servicing procedures.

                                       25
<PAGE>

                                                                       EXHIBIT A

                                 [Form of Note]

              GREENPOINT HOME EQUITY LOAN TRUST 2003-1 CLASS A NOTE

REGISTERED                                                          $290,418,000

No. A-1                                                    CUSIP NO. 395385 AP 2

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

<PAGE>

                    GREENPOINT HOME EQUITY LOAN TRUST 2003-1

                   CLASS A-1 VARIABLE RATE ASSET BACKED NOTES

            GreenPoint  Home  Equity  Loan  Trust  2003-1,   a  statutory  trust
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 CEDE & CO.,
or registered  assigns,  the principal  sum of TWO HUNDRED  NINETY  MILLION FOUR
HUNDRED EIGHTEEN  THOUSAND DOLLARS  ($290,418,000),  such amount payable on each
Payment  Date in an amount  equal to the result  obtained by  multiplying  (i) a
fraction the numerator of which is $290,418,000  and the denominator of which is
$290,418,000 by (ii) the aggregate  amount,  if any, payable from the Collection
Account in respect of principal on the Class A Notes  pursuant to Section 8.7 of
the Indenture;  PROVIDED,  HOWEVER,  that the entire unpaid  principal amount of
this Class A Note shall be due and  payable  on the  Payment  Date in April 2029
(the "FINAL SCHEDULED PAYMENT DATE").  The Issuer will pay interest on this Note
at the rate per annum  provided in the  Indenture  on each  Payment  Date on the
principal amount of this Class A Note outstanding on the preceding  Payment Date
(after giving effect to all payments of principal made on the preceding  Payment
Date).  Interest on this Class A Note will accrue for each Payment Date from the
most recent  Payment Date on which  interest has been paid to but excluding such
Payment Date or, if no interest has yet been paid,  from May 19, 2003.  Interest
will be computed on the basis of the actual  number of days elapsed in a 360-day
year.  Such  principal of and interest on this Class A Note shall be paid in the
manner specified on the reverse hereof.

            The  principal  of and  interest on this Class A Note are 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 A Note shall be applied  first to interest
due and  payable on this Class A Note as  provided  above and then to the unpaid
principal of this Class A Note.

            The Notes are  entitled  to the  benefits  of a  financial  guaranty
insurance  policy (the  "POLICY")  issued by Ambac  Assurance  Corporation  (the
"INSURER"),  pursuant  to  which  the  Insurer  has  unconditionally  guaranteed
payments  of the  Insured  Amounts  with  respect  to the  Class A Notes on each
Payment Date and Preference Amounts, all as more fully set forth in the Policy.

            For purposes of federal income, state and local income and franchise
and any other income taxes,  the Issuer will treat the Notes as  indebtedness of
the Sponsor and hereby  instructs  the  Indenture  Trustee to treat the Notes as
indebtedness of the Sponsor for federal and state tax reporting  purposes.  Each
Noteholder by acceptance of a Note (and each owner of a beneficial interest in a
Note by acceptance of such  beneficial  interest)  agrees to treat the Notes for
federal income,  state and local income and franchise and any other income taxes
as indebtedness of the Sponsor.

            Each  Noteholder  or Note Owner,  by acceptance of this Class A Note
or, in the case of a Note Owner, a beneficial interest in a Note,  covenants and
agrees that 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
Class A Notes  or under  the  Indenture  or any  certificate  or  other  writing
delivered in connection  therewith,  against (i) the Sponsor, the Servicer,  the
Indenture

                                     A-1-2
<PAGE>

Trustee,  or the Owner Trustee in its individual  capacity,  (ii) any owner of a
beneficial  interest  in the  Issuer or (iii)  any  owner,  beneficiary,  agent,
officer,  director or employee  of the  Sponsor,  the  Servicer,  the  Indenture
Trustee,  or the Owner  Trustee  in its  individual  capacity,  any  holder of a
beneficial interest in the Issuer, the Sponsor, the Servicer,  the Owner Trustee
or the  Indenture  Trustee or of any  successor  or assign of the  Sponsor,  the
Servicer,  the  Indenture  Trustee,  or the  Owner  Trustee  in  its  individual
capacity,  except  as any  such  Person  may have  expressly  agreed  (it  being
understood  that  the  Indenture  Trustee  and the  Owner  Trustee  have no such
obligations  in their  individual  capacity)  and except  that any such 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.

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

            Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Class A
Note shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

            This Class A Note is one of a duly authorized  issue of Notes of the
Issuer,  designated  as its Class A Variable  Rate Asset  Backed  Notes  (herein
called the "CLASS A NOTES"),  all issued under an  Indenture  dated as of May 1,
2003  (such  agreement,  as  supplemented  or  amended,  is  herein  called  the
"INDENTURE"),  between the Issuer and The Bank of New York, as Indenture Trustee
(the "INDENTURE  TRUSTEE"),  which term includes any successor Indenture Trustee
under the Indenture.

            All  terms  used  in this  Class  A Note  that  are  defined  in the
Indenture,  as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the  Indenture,  as so  supplemented  or amended.  If any such
terms are not defined in the Indenture,  as supplemented  or amended,  then such
terms  shall have the  meanings  assigned  to them in or  pursuant  to the Trust
Agreement  dated as of May 1, 2003 (such trust  agreement,  as  supplemented  or
amended is herein called the "TRUST  AGREEMENT"),  between  GreenPoint  Mortgage
Securities,  Inc., as sponsor,  and Wilmington  Trust Company,  as Owner Trustee
(the "OWNER  TRUSTEE," which term includes any successor Owner Trustee under the
Trust Agreement), as so supplemented or amended.

            The Class A Notes are and will be secured by the collateral  pledged
as security therefor as provided in the Indenture.

            Principal  of the Class A Notes will be payable on each Payment Date
in an amount described in the Indenture.  "Payment Date" means the fifteenth day
of each month,  or, if any such date is not a Business Day, the next  succeeding
Business Day, commencing June 15, 2003. The term "Payment Date," shall be deemed
to include the Final Scheduled Payment Date.

            As described above, the entire unpaid principal amount of this Class
A Note shall be due and  payable on the earlier of the Final  Scheduled  Payment
Date and the Redemption

                                     A-1-3
<PAGE>

Date, if any,  pursuant to Section 10.1 of the  Indenture.  Notwithstanding  the
foregoing,  on the date on which a Rapid  Amortization  Period as  described  in
Section  5.1(a)  shall have  occurred  and be  continuing  and,  in the  limited
instances specified in the Indenture,  the Holders representing more than 50% of
the Outstanding  Amount of the Class A Notes,  with the prior written consent of
the Insurer (so long as there is no continuing  Insurer  Default) shall have the
right among  others to direct the  Indenture  Trustee to sell or  liquidate  the
Mortgage Loans as provided in Section 12.1 of the Indenture and pay such amounts
to the Holders of the Class A Notes. All principal payments on the Class A Notes
shall be made PRO RATA to the Holders of the Class A Notes entitled thereto.

            Payments  of  interest  on this Class A 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 Class A Note,  shall be made by check mailed to the
Person  whose  name  appears  as the Holder of this Class A Note (or one or more
Predecessor  Notes) on the Note  Register  as of the close of  business  on each
Record Date,  except that with respect to Class A Note  registered on the Record
Date in the name of the nominee of the Clearing Agency (initially,  such nominee
to be Cede & Co.),  payments  will be  made  by  wire  transfer  in  immediately
available funds to the account designated by such nominee.  Such checks shall be
mailed to the  Person  entitled  thereto  at the  address  of such  Person as it
appears on the Note Register as of the applicable  Record Date without requiring
that this Note be  submitted  for  notation of  payment.  Any  reduction  in the
principal amount of this 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 Class A Note and of any Class A 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 Class A
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 Holder hereof as of the Record
Date preceding such Payment Date by notice mailed prior to such Payment Date and
the amount  then due and payable  shall be payable  only upon  presentation  and
surrender of this Class A Note at the office designated by the Indenture Trustee
for such purposes located in The City of New York.

            The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Interest Rate to the extent lawful.

            As  provided  in the  Indenture,  the Class A Notes may be  redeemed
pursuant to Section 10.1 of the  Indenture,  in whole,  but not in part,  at the
option  of  the  Sponsor   (with  the  consent  of  the  Insurer  under  certain
circumstances),  on any Payment  Date after the  Payment  Date on which the Note
Principal Balance is less than or equal to 10% of the Pool Balance, after taking
into account all distributions made on such Payment Date.

            As provided in the Indenture and subject to certain  limitations set
forth  therein,  the transfer of this Class A Note may be registered on the Note
Register upon surrender of this Class A Note for registration of transfer at the
office or agency  designated by the Issuer  pursuant to the Indenture,  (i) duly
endorsed  by,  or  accompanied  by a  written  instrument  of  transfer  in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his
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

                                     A-1-4
<PAGE>

participation in Notes Transfer Agents Medallion Program ("STAMP") or such other
"signature  guarantee program" as may be determined by the Registrar in addition
to, or in substitution  for, Stamp, all in accordance with the Exchange Act, and
(ii)  accompanied by such other documents as the Indenture  Trustee may require,
and thereupon one or more new Notes of 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 A Note,  but the  transferor  may be required to pay a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any such registration of transfer or exchange.

            Each  Noteholder  or Note Owner,  by acceptance of a Note or, in the
case of a Note Owner, a beneficial  interest in a Note covenants and agrees that
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 the Indenture or any  certificate  or other writing  delivered in
connection  therewith,  against (i) the Sponsor,  the  Servicer,  the  Indenture
Trustee or the Owner  Trustee in its  individual  capacity,  (ii) any owner of a
beneficial  interest  in the  Issuer or (iii)  any  owner,  beneficiary,  agent,
officer,  director or employee  of the  Sponsor,  the  Servicer,  the  Indenture
Trustee  or the  Owner  Trustee  in its  individual  capacity,  any  holder of a
beneficial interest in the Issuer, the Sponsor, the Servicer,  the Owner Trustee
or the  Indenture  Trustee or of any  successor  or assign of the  Sponsor,  the
Servicer, the Indenture Trustee or the Owner Trustee in its individual capacity,
except as any such Person may have expressly  agreed (it being  understood  that
the Indenture  Trustee and the Owner Trustee have no such  obligations  in their
individual  capacity)  and except  that any such 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  Noteholder  or Note Owner,  by acceptance of a Note or, in the
case of a Note Owner, a beneficial  interest in a Note covenants and agrees that
by accepting  the benefits of the Indenture  and the Trust  Agreement  that such
Noteholder will not at any time institute against the Sponsor,  or the Issuer or
join in any institution  against the Sponsor,  or the Issuer of, any bankruptcy,
reorganization,  arrangement,  insolvency or liquidation  proceedings,  or other
proceedings,  under any United States Federal or state bankruptcy or similar law
in connection with any obligations  relating to the Notes,  the Trust Agreement,
the Indenture or the Basic Documents.

            Prior to the due  presentment  for  registration of transfer of this
Note,  the Issuer,  the  Indenture  Trustee and the Insurer and any agent of the
Issuer,  the Indenture Trustee or the Insurer may treat the Person in whose name
this 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 Note be  overdue,  and neither  the  Issuer,  the  Indenture
Trustee nor 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 rights of the Holders of the Note under the Indenture at any time
by the  Issuer  with the  consent  of the  Insurer  and of the  Holders of Notes
representing  a  majority  of the  Outstanding  Amount  of all Notes at the time
Outstanding.  Any such  consent or waiver by the Holder of this Note (or any

                                     A-1-5
<PAGE>

one of more Predecessor  Notes) shall be conclusive and binding upon such Holder
and upon all  future  Holders  of this  Note  and of any  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 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 Holders of the
Notes issued thereunder but with the consent of the Insurer.

            The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture or the Trust Agreement.

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

            This Note, the Trust  Agreement and the Indenture shall be construed
in accordance with the laws of the State of New York,  without  reference to its
conflict of law  provisions,  and the  obligations,  rights and  remedies of the
parties  hereunder and  thereunder  shall be determined in accordance  with such
laws.

            No reference  herein to the Trust  Agreement or the Indenture and no
provision of this Note, the Trust  Agreement 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 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 Trust Agreement,  the Indenture or the Basic Documents,  neither
Wilmington Trust Company in its individual  capacity,  any owner of a beneficial
interest  in the  Issuer,  nor any of their  respective  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, or performance  of, or omission to perform,  any of
the  covenants,  obligations or  indemnifications  contained in this Note or the
Indenture,  it being expressly  understood that said covenants,  obligations and
indemnifications  have been made by the Issuer for the sole  purposes of binding
the interests of the Issuer in the assets of the Issuer. The Holder of this Note
by the  acceptance  hereof  agrees  that  except as  expressly  provided  in the
Indenture or the Basic Documents in the case of a Rapid  Amortization Event with
respect to the Class A Notes under the Indenture, the 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
Note.

                                     A-1-6
<PAGE>

            IN WITNESS  WHEREOF,  the Issuer has caused  this  instrument  to be
signed, manually or in facsimile, by its Authorized Officer.

Date: May 19, 2003           GREENPOINT HOME EQUITY LOAN TRUST 2003-1

                             By: Wilmington Trust Company, not in its individual
                                 capacity but solely as Owner Trustee

                             By: _______________________________________________
                                 Name:
                                 Title:

                                     A-1-7
<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

            This is one of the Notes  designated  above and  referred  to in the
within-mentioned Indenture.

Date:  May 19, 2003                  The Bank of New York, not in its individual
                                     capacity but solely as Indenture Trustee

                                     By:________________________________________
                                                 Authorized Signatory

                                     A-1-8
<PAGE>

                                    EXHIBIT B

                           FORM OF OPINION OF COUNSEL

              [On File with Dewey Ballantine LLP and Tobin & Tobin]

                                      B-1
<PAGE>

                                    EXHIBIT C

                     FORM OF CERTIFICATION TO BE PROVIDED TO
        GREENPOINT HOME EQUITY LOAN TRUST 2003-1 BY THE INDENTURE TRUSTEE

             Greenpoint Home Equity Loan Trust 2003-1 (the "Trust")
                    Class A Variable Rate Asset Backed Notes

I,  ______________________,  a _____________________ of The Bank of New York, as
Indenture  Trustee  for  the  Trust,   hereby  certify  to  Greenpoint  Mortgage
Securities Inc. (the "Sponsor"), and its offices, directions and affiliates, and
with the knowledge and intent that they will rely upon this certification that:

      1. The Sponsor has caused it to be  provided  to the  Indenture  Trustee a
written  notice  listing  all of the  monthly  distribution  reports  that  were
prepared by the  Indenture  Trustee  and that will be included in the  Sponsor's
Form 10-K for the Trust's  fiscal year ending on  ___________.  I have  reviewed
each of such distribution reports.

      2. Based on my knowledge,  the information in these  distribution  reports
prepared by the Indenture Trustee, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were  made,  not  misleading  as of the last day of the  period  covered by that
annual report.

      3. Based on my  knowledge,  the  distribution  information  required to be
provided by the Indenture Trustee under the Indenture,  dated as of May 1, 2003,
the Trust and the Indenture Trustee is included in these reports.

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                      C-1
<PAGE>

                                               THE BANK OF NEW YORK
                                               as Indenture Trustee

Dated:_____________________                    By: _____________________________
                                               Name:
                                               Title:

                                      C-2EXHIBIT 4.4
                                                                  EXECUTION COPY

================================================================================

                        MORTGAGE LOAN PURCHASE AGREEMENT

                                     Between

                       GREENPOINT MORTGAGE FUNDING, INC.,

                                    as Seller

                                       and

                      GREENPOINT MORTGAGE SECURITIES INC.,

                                  as Purchaser

                             Dated as of May 1, 2003

================================================================================
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I Definitions.............................................................................................1

ARTICLE II Procedures for Purchase of Mortgage Loans; Conditions Precedent; Settlements...........................1

   Section 2.01.      PURCHASE AND SALE...........................................................................1
   Section 2.02.      DELIVERY OF DOCUMENTS; PURCHASE OF MORTGAGE LOANS...........................................1
   Section 2.03.      [RESERVED]..................................................................................2
   Section 2.04.      [RESERVED]..................................................................................2
   Section 2.05.      SURVIVAL OF REPRESENTATIONS.................................................................2
   Section 2.06.      PROCEEDS OF MORTGAGE LOANS..................................................................3
   Section 2.07.      DEFECTIVE MORTGAGE LOANS....................................................................3

ARTICLE III Intent of Parties; Security Interest..................................................................3

   Section 3.01.      INTENT OF PARTIES; SECURITY INTEREST........................................................3

ARTICLE IV Representations and Warranties.........................................................................3

   Section 4.01.      REPRESENTATIONS AND WARRANTIES OF SELLER....................................................3
   Section 4.02.      REPRESENTATIONS AND WARRANTIES REGARDING MORTGAGE LOANS.....................................5
   Section 4.03.      REPRESENTATIONS AND WARRANTIES OF PURCHASER................................................16
   Section 4.04.      REMEDIES FOR BREACH OF REPRESENTATIONS AND WARRANTIES; REPURCHASE OBLIGATION...............17

ARTICLE V Covenants and Warranties of Seller.....................................................................18

   Section 5.01.      AFFIRMATIVE COVENANTS......................................................................18
   Section 5.02.      NEGATIVE COVENANTS.........................................................................20

ARTICLE VI Sale of Mortgage Loans from the Purchaser to the Trust................................................21

   Section 6.01.      SALE AND SERVICING AGREEMENT...............................................................21

ARTICLE VII Seller's Servicing Obligations.......................................................................22

   Section 7.01.      SELLER'S SERVICING OBLIGATIONS.............................................................22

ARTICLE VIII Fees and Expenses...................................................................................22

ARTICLE IX Termination; Additional Remedies......................................................................23

ARTICLE X Payment of Purchase Price..............................................................................23

   Section 10.01.     PURCHASE PRICE PAYMENTS....................................................................23
   Section 10.02.     THE PURCHASER NOTE.........................................................................23

ARTICLE XI Confidentiality.......................................................................................24

ARTICLE XII Term.................................................................................................25

ARTICLE XIII Exclusive Benefit of Parties; Assignment............................................................25

ARTICLE XIV Amendment; Waivers...................................................................................25
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                              <C>
ARTICLE XV Execution in Counterparts.............................................................................25

ARTICLE XVI Effect of Invalidity of Provisions...................................................................25

ARTICLE XVII Governing Law.......................................................................................26

ARTICLE XVIII Notices............................................................................................26

ARTICLE XIX Entire Agreement.....................................................................................26

ARTICLE XX Indemnities...........................................................................................26

ARTICLE XXI RESPA Obligations....................................................................................27

ARTICLE XXII Survival............................................................................................28

ARTICLE XXIII Right of Set-off...................................................................................28

ARTICLE XXIV Consent to Service..................................................................................28

ARTICLE XXV Submission to Jurisdiction; Waiver of Trial by Jury..................................................28

ARTICLE XXVI Construction........................................................................................29

ARTICLE XXVII Further Agreements.................................................................................29
</TABLE>

EXHIBIT A       Form of Non-Negotiable GreenPoint Mortgage Securities Inc.
                Promissory Note

SCHEDULE I:     Mortgage Loan Schedule

                                       ii
<PAGE>

            MORTGAGE LOAN PURCHASE  AGREEMENT  ("AGREEMENT")  dated as of May 1,
2003  between  GreenPoint  Mortgage  Funding,   Inc.,  a  New  York  corporation
("SELLER"),  and GreenPoint  Mortgage  Securities  Inc., a Delaware  corporation
("PURCHASER").

            WHEREAS,  Seller desires to sell to Purchaser the Mortgage Loans (as
hereinafter  defined),  and Purchaser desires to purchase such Mortgage Loans in
accordance with the terms and conditions set forth in this Agreement.

            NOW,  THEREFORE,  the parties, in consideration of good and valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, hereby agree as follows:

                                    ARTICLE I

                                   Definitions

            All  capitalized  terms  used in this  Agreement  and not  otherwise
defined  herein,  shall  have the  meanings  assigned  thereto in Annex A to the
Indenture dated as of May 1, 2003, between the Issuer and the Indenture Trustee,
as the same may be amended and supplemented from time to time.

                                   ARTICLE II

  Procedures for Purchase of Mortgage Loans; Conditions Precedent; Settlements

            Section  2.01.  PURCHASE  AND  SALE.  (a) On  the  Closing  Date  in
consideration  for the  Purchase  Price  the  Seller  hereby  sells,  transfers,
assigns, sets over and otherwise conveys to the Purchaser, without recourse, all
of its right,  title and  interest  in, to and under,  whether  now  existing or
hereafter created,  (i) each Mortgage Loan, including its Principal Balance (and
any Additional  Balances) and all collections in respect thereof  received after
the Cut-Off Date (excluding Interest  Collections due on or prior to the Cut-off
Date);  (ii)  property  that  secured  an  Mortgage  Loan  that is  acquired  by
foreclosure or deed in lieu of foreclosure;  (iii) the Seller's rights under the
related  hazard  insurance  policies;  and (iv) all proceeds with respect to the
foregoing  (collectively,  the  "PURCHASED  ASSETS").  The Purchase Price on the
Closing Date shall be payable in a combination  of cash and credit for a capital
contribution made to the Purchaser by the Seller.

            (b) To the  extent  that the  fair  market  value of any  Additional
Balance  sold  by  the  Seller  to  the  Purchaser  is  greater  than  the  cash
consideration paid by the Purchaser for such Additional Balance,  the difference
between such fair market value and the amount of such cash  consideration  shall
be deemed to be a combination of a credit for a capital contribution made to the
Purchaser by the Seller and an increase in the principal amount of the Purchaser
Note pursuant to Article X.

            Section  2.02.  DELIVERY OF DOCUMENTS;  PURCHASE OF MORTGAGE  LOANS.
Prior to the purchase of the Mortgage Loans:
<PAGE>

            (a)  Seller  shall  have  delivered  to the  Purchaser  or any agent
appointed by the Purchaser the Mortgage File for each of the Mortgage Loans.

            (b)   Purchaser   shall  have  received  a  Mortgage  Loan  Schedule
pertaining to the related Mortgage Loans.

            (c) Purchaser  shall have received  copies of the resolutions of the
Board of Directors of Seller,  certified by its respective Secretary,  approving
this Agreement.

            (d) Purchaser shall have received the  Certificate of  Incorporation
of Seller certified by the Secretary of State of the State of New York.

            (e) Purchaser  shall have received a certificate of the Secretary or
Assistant  Secretary of Seller  certifying  (i) the names and  signatures of the
officers  authorized  on its behalf to  execute  this  Agreement,  and any other
documents to be delivered by it hereunder and (ii) a copy of Seller's By-laws.

            (f) Purchaser shall have received an opinion of counsel to Seller as
to the due authorization, execution and delivery by the Seller of this Agreement
and  as to  the  validity  and  enforceability  of  the  transfers  contemplated
hereunder and  addressing  such other  matters as the  Purchaser may  reasonably
request.

            (g) Seller shall have  instructed  the applicable  debtor,  trustee,
paying agent,  authenticating agent, transfer agent,  registrar,  predecessor in
interest, owner (if the Mortgage Loans are in the form of a security agreement),
or  servicer,  if any,  in respect of the related  Mortgage  Loans to reflect on
their books and records the transfer of such  Mortgage  Loans to  Purchaser,  as
owner or  secured  party (if the  Mortgage  Loans are in the form of a  security
agreement).

            (h) Purchaser shall have received the most recent available standard
servicing or lien reports in summary  form,  if any,  with respect to all of the
mortgages in Seller's portfolio similar to the Mortgage Loans.

            (i) The  Purchaser  shall be permitted to perform its standard  loan
review of each Mortgage Loan to be purchased.

            (j) UCC-1  financing  statements  duly  executed by Seller as debtor
shall have been filed in New York naming the  Purchaser as secured party and the
Indenture Trustee on behalf of the Trust as assignee.

            Section 2.03. [RESERVED]

            Section 2.04. [RESERVED].

            Section 2.05. SURVIVAL OF REPRESENTATIONS.  The terms and conditions
of the purchase of each Mortgage  Loan shall be as set forth in this  Agreement.
Seller  will  be  deemed  on the  Closing  Date to have  made to  Purchaser  the
representations  and  warranties  set  forth  in  Article  IV  hereof  and  such
representations and warranties of Seller shall be true and correct on

                                       2
<PAGE>

and  as  of  the  Closing   Date.  In  addition,   Seller  shall   reaffirm  the
representations  and  warranties   contained  in  Article  IV  on  the  date  of
disposition  of the  Mortgage  Loans by the  Purchaser  pursuant to the Sale and
Servicing Agreement.

            Section  2.06.  PROCEEDS OF MORTGAGE  LOANS.  The  transfer and sale
hereby of all of the Seller's right,  title and interest in and to each Mortgage
Loan shall  include  all  proceeds,  products  and  profits  derived  therefrom,
including,  without  limitation,  all  scheduled  payments of  principal  of and
interest on such  Mortgage  Loans and other  amounts due or payable or to become
due or payable in respect  thereof  and  proceeds  thereof,  including,  without
limitation, all moneys, goods and other tangible or intangible property received
upon the liquidation or sale thereof.

            Section  2.07.  DEFECTIVE  MORTGAGE  LOANS.  If any Mortgage Loan is
re-transferred to the Purchaser pursuant to Section 2.03 or 2.05 of the Sale and
Servicing  Agreement,  the Seller shall, at the Purchaser's  option,  either (a)
repurchase  such  Mortgage Loan at the Loan  Purchase  Price,  or (b) provide an
Eligible Substitute Mortgage Loan if the Seller has any such loans available for
sale at the time,  subject to the terms and conditions of the Sale and Servicing
Agreement.

                                   ARTICLE III

                      Intent of Parties; Security Interest

            Section 3.01. INTENT OF PARTIES;  SECURITY  INTEREST.  Purchaser and
Seller  confirm  that the  transactions  contemplated  herein  are  intended  as
purchases  and sales  rather than as loan  transactions.  In the event,  for any
reason, and solely in such event, any transaction  hereunder is construed by any
court  or  regulatory  authority  as a loan or  other  purchase  and sale of the
related  Purchased  Assets,  Seller  shall be deemed to have  hereby  pledged to
Purchaser as security for the  performance  by Seller of all of its  obligations
from time to time arising  hereunder  and under any and all  Purchases  effected
pursuant  thereto,  and shall be deemed to have  granted to Purchaser a security
interest  in, the  related  Purchased  Assets and all  distributions  in respect
thereof,  and the proceeds of any and all of the foregoing  whether now owned or
hereafter  acquired,  (collectively,  the  "COLLATERAL").  In furtherance of the
foregoing,  (i) this  Agreement  shall  constitute  a security  agreement,  (ii)
Purchaser  shall have all of the rights of a secured  party with  respect to the
Collateral  pursuant  to  applicable  law and (iii)  Seller  shall  execute  all
documents, including, but not limited to, financing statements under the Uniform
Commercial Code as in effect in any applicable  jurisdictions,  as the Purchaser
may reasonably  require to effectively  perfect and evidence  Purchaser's  first
priority  security  interest in the  Collateral.  Seller also  covenants  not to
pledge, assign or grant any security interest to any other party in any Mortgage
Loan sold to Purchaser.

                                   ARTICLE IV

                         Representations and Warranties

            Section 4.01.  REPRESENTATIONS  AND WARRANTIES OF SELLER. The Seller
represents, warrants and covenants to the Purchaser as of the Closing Date that:

                                       3
<PAGE>

            (i) the  Seller  is duly  organized,  validly  existing  and in good
      standing  under the laws of the  State of New York and is duly  authorized
      and  qualified  to  transact  any and all  business  contemplated  by this
      Agreement  to be conducted by the Seller in any state in which a Mortgaged
      Property is located to the extent  necessary to ensure the  enforceability
      of each Mortgage Loan and the servicing of the Mortgage Loan in accordance
      with the terms of this Agreement;

            (ii) the  Seller  has the full  corporate  power  and  authority  to
      service each Mortgage  Loan, and to execute,  deliver and perform,  and to
      enter into and consummate the transactions  contemplated by this Agreement
      and the  execution,  delivery  and  performance  of this  Agreement by the
      Seller has been duly authorized by all necessary  corporate  action on the
      part of the Seller;  and this Agreement,  assuming the due  authorization,
      execution  and delivery  thereof by the  Purchaser,  constitutes  a legal,
      valid and binding obligation of the Seller, enforceable against the Seller
      in accordance with its respective terms, except to the extent that (a) the
      enforceability  thereof  may be limited  by  federal or state  bankruptcy,
      insolvency,  moratorium,  receivership  and other similar laws relating to
      creditors' rights generally and (b) the remedy of specific performance and
      injunctive  and other  forms of  equitable  relief  may be  subject to the
      equitable  defenses  and to the  discretion  of the court before which any
      proceeding therefor may be brought;

            (iii) the  execution  and delivery of this  Agreement by the Seller,
      the  servicing  of  the  Mortgage  Loans  by  the  Seller  hereunder,  the
      consummation by the Seller of the transactions  herein  contemplated,  and
      the  fulfillment  by the Seller of or  compliance  by the Seller  with the
      terms  hereof will not (A) result in a breach of any term or  provision of
      the  charter or by-laws of the Seller or (B)  conflict  with,  result in a
      breach,  violation or acceleration  of, or result in a default under,  the
      terms of any other material agreement or instrument to which the Seller is
      a party or by which it may be bound,  or any statute,  order or regulation
      applicable  to the Seller of any court,  regulatory  body,  administrative
      agency or governmental  body having  jurisdiction  over the Seller,  which
      breach, violation, default or non-compliance would have a material adverse
      effect on (a) the business, operations, financial condition, properties or
      assets of the Seller  taken as a whole or (b) the ability of the Seller to
      perform  its  obligations  under this  Agreement;  and the Seller is not a
      party to, bound by, or in material breach or violation of any indenture or
      other  agreement  or  instrument,  or  subject to or in  violation  of any
      statute, order or regulation of any court, regulatory body, administrative
      agency or governmental body having  jurisdiction over it, which materially
      and adversely affects or, to the Seller's  knowledge,  would in the future
      reasonably be expected to materially and adversely affect, (x) the ability
      of the Seller to perform its  obligations  under this Agreement or (y) the
      business,  operations,  financial  condition,  properties or assets of the
      Seller taken as a whole;

            (iv) the  Seller  is,  and  currently  intends  to  remain,  in good
      standing and qualified to do business in each  jurisdiction  where failure
      to be so qualified or licensed would have a material adverse effect on (a)
      the business, operations, financial condition, properties or assets of the
      Seller taken as a whole or (b) the  enforceability of any Mortgage Loan or
      the servicing of the Mortgage  Loans in accordance  with the terms of this
      Agreement;

                                       4
<PAGE>

            (v) there is no litigation or administrative  proceeding pending or,
      to the Seller's best knowledge,  threatened  against the Seller that would
      materially and adversely affect the execution,  delivery or enforceability
      of this  Agreement  or the ability of the Seller to service  the  Mortgage
      Loans or for the Seller to perform any of its other obligations  hereunder
      in accordance with the terms hereof;

            (vi) no consent,  approval,  authorization  or order of any court or
      governmental  agency or body is required for the  execution,  delivery and
      performance  by the Seller of, or  compliance  by the  Seller  with,  this
      Agreement or the consummation of the transactions  contemplated hereby, or
      if any such consent,  approval,  authorization  or order not relating to a
      future transaction is required, the Seller has obtained the same;

            (vii)  the  Seller  has  caused  to be  performed  any and all  acts
      required  to preserve  the rights and  remedies  of the  Purchaser  in any
      insurance policies of the Seller or a mortgagee applicable to the Mortgage
      Loans sold by the Seller; and

            (viii) the Seller is solvent and will not be rendered  insolvent  by
      the  transactions  described  herein  and,  after  giving  effect  to  the
      transactions  described  herein,  the  Seller  will  not be  left  with an
      unreasonably  small amount of capital with which to engage in the ordinary
      course of its business,  and the Seller does not intend to incur, nor does
      the Seller  believe that it has incurred,  debts beyond its ability to pay
      as they  mature.  The Seller  does not  contemplate  the  commencement  of
      insolvency, liquidation or consolidation proceedings or the appointment of
      a  receiver,  liquidator,  conservator,  trustee  or similar  official  in
      respect of the Seller or any of its respective assets.

            Section 4.02.  REPRESENTATIONS  AND  WARRANTIES  REGARDING  MORTGAGE
LOANS.  (a) Seller  represents  and warrants to Purchaser as of the Closing Date
with respect to each Mortgage Loan as follows:

            (i) As of the Closing Date with respect to the Mortgage Loans and as
      of the  related  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loans and with respect to any HELOC Mortgage Loan, as of the date
      any  Additional  Balance  is  created,  the  information  set forth in the
      Mortgage Loan Schedule for such Mortgage  Loans is true and correct in all
      material respects;

            (ii) Each  Mortgage  Loan is being  serviced by the  Servicer and is
      being serviced in compliance with applicable law;

            (iii) The  applicable  Cut-Off Date  Principal  Balance has not been
      assigned or  pledged,  and the Seller is the sole owner and holder of such
      Cut-Off  Date  Principal  Balance  free and  clear  of any and all  liens,
      claims, encumbrances,  participation interests, equities, pledges, charges
      or security  interests  of any nature,  and has full right and  authority,
      under all governmental and regulatory bodies having  jurisdiction over the
      ownership of the applicable  Mortgage Loans,  to sell,  assign or transfer
      the same  pursuant  to this  Agreement  and upon  its  acquisition  of the
      Mortgage Loans, as of the Closing Date, the Sponsor will be the sole owner
      and  holder  of such  Mortgage  Loans  free and clear of any and all liens
      claims, encumbrances, participating interests, equities, pledges, charges,
      or security interests of any nature;

                                       5
<PAGE>

            (iv) Except with respect to liens released  immediately prior to the
      transfer herein contemplated, each Credit Line Agreement and each Mortgage
      Note and related Mortgage has not been assigned or pledged and immediately
      prior to the transfer and assignment herein contemplated,  the Seller held
      good,  marketable  and  indefeasible  title to, and was the sole owner and
      holder of, each  Mortgage  Loan subject to no liens,  charges,  mortgages,
      claims,  participation interests,  equities, pledges or security interests
      of any nature, encumbrances or rights of others (collectively,  a "LIEN");
      the  Seller  has full  right  and  authority  under all  governmental  and
      regulatory  bodies  having  jurisdiction  over the  Seller,  subject to no
      interest or  participation  of, or agreement  with, any party, to sell and
      assign the same  pursuant  to this  Agreement;  and  immediately  upon the
      transfers  and  assignments  herein  contemplated,  the Seller  shall have
      transferred  all of its right,  title and interest in and to each Mortgage
      Loan and the Purchaser will hold good,  marketable and indefeasible title,
      to, and be the sole owner of, each Mortgage Loan subject to no Liens;

            (v) As of the Closing Date with  respect to the  Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage  Loans,  the  related  Mortgage  is  a  valid,   enforceable  and
      subsisting  first  or  second  lien,  as set  forth on the  Mortgage  Loan
      Schedule with respect to each related  Mortgaged  Property,  and as of the
      applicable  Cut-Off Date the related Mortgaged  Property is free and clear
      of all  encumbrances  and liens having  priority  over the first or second
      lien, as applicable, of such Mortgage except for liens for (i) real estate
      taxes and special assessments not yet delinquent;  (ii) any first mortgage
      loan secured by such Mortgaged Property and specified on the Mortgage Loan
      Schedule;  (iii) covenants,  conditions and  restrictions,  rights of way,
      easements  and other  matters of public record as of the date of recording
      that  are  acceptable  to  mortgage  lending  institutions   generally  or
      specifically reflected in the appraisals;  and (iv) other matters to which
      like  properties are commonly  subject which do not  materially  interfere
      with  the  benefits  of the  security  intended  to be  provided  by  such
      Mortgage;

            (vi) As of and after the Closing  Date with  respect to the Mortgage
      Loans and as of and after the applicable Transfer Date with respect to any
      Eligible Substitute Mortgage Loans, there is no valid right to rescission,
      offset,  defense  (including the defense of usury) or  counterclaim of any
      obligor under any Loan Agreement or Mortgage;

            (vii) As of the Closing Date with respect to the Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage  Loans,  there is no delinquent  recording or other tax or fee or
      assessment lien against any related Mortgaged Property;

            (viii) As of the Closing Date with respect to the Mortgage Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loans, there is no proceeding pending or threatened for the total
      or  partial  condemnation  of  any  Mortgaged  Property,  nor  is  such  a
      proceeding currently occurring, and such property is in good repair and is
      undamaged by waste, fire, earthquake or earth movement,  windstorm, flood,
      other types of water damage,  tornado or other  casualty,  so as to affect
      adversely the value of the Mortgaged Property as security for the Mortgage
      Loan or the use for which the premises were intended;

                                       6
<PAGE>

            (ix) As of the Closing Date with  respect to the Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage  Loans,  there are no mechanics' or similar liens or claims which
      have  been  filed  for  work,  labor or  material  affecting  the  related
      Mortgaged  Property which are, or may be, liens prior or equal to the lien
      of the related  Mortgage  and no rights are  outstanding  which could give
      rise to such liens,  except liens which are fully  insured  against by the
      title  insurance  policy or other title  protection  referred to in clause
      (xiv);

            (x) No  Minimum  Monthly  Payment  is more  than 59 days  delinquent
      (measured on a contractual basis);

            (xi) As of the Closing Date with  respect to the Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loans, for each Mortgage Loan, the related Mortgage File contains
      each of the documents and instruments specified to be included therein;

            (xii)  The  related  Loan  Agreement  and the  related  Mortgage  at
      origination complied in all material respects with applicable state, local
      and federal  laws and  regulations,  including,  without  limitation,  all
      applicable  predatory and abusive lending laws,  usury,  truth-in-lending,
      real estate  settlement  procedures,  consumer  credit  protection,  equal
      credit  opportunity,  recording  or  disclosure  laws  applicable  to  the
      Mortgage Loans and consummation of the transactions  contemplated  hereby,
      including without limitation the receipt of interest, will not involve the
      violation of such laws;

            (xiii) On the Closing Date with respect to the Mortgage Loans and to
      the extent not already included in such filing, on the applicable Transfer
      Date with respect to any Eligible  Substitute  Mortgage Loans,  the Seller
      has filed UCC-1 financing statements with respect to such Mortgage Loans;

            (xiv) A lender's policy of title insurance,  expressClose.com lender
      master  protection  program (standard  mortgage  guaranty) or a commitment
      (binder)  to issue the same or an  attorney's  certificate  or  opinion of
      title was effective on the date of the  origination  of each mortgage loan
      and each  such  policy or  certificate  or  opinion  of title is valid and
      remains in full force and effect;

            (xv) As of the Closing Date with  respect to the Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage  Loans,  none of the  Mortgaged  Properties is a mobile home or a
      manufactured housing unit;

            (xvi) As of the  Cut-Off  Date for the  Mortgage  Loans no more than
      approximately 0.46% of the Mortgage Loans (by Pool Balance) are secured by
      Mortgaged Properties located in one United States postal zip code;

            (xvii) The Combined  Loan-to-Value  Ratio for each Mortgage Loan was
      not in excess of 100%;

            (xviii) No selection procedure that identified the Mortgage Loans as
      being less  desirable or valuable  than other  comparable  mortgage  loans
      originated or acquired by the

                                       7
<PAGE>

      Seller  was  utilized  in  selecting  the  Mortgage  Loans for sale to the
      Purchaser;  PROVIDED,  HOWEVER, that the Mortgage Loans were selected from
      the pool of mortgage  loans  originated  in  connection  with the Seller's
      mortgage loan origination program;

            (xix) The  Seller  has not  transferred  the  Mortgage  Loans to the
      Purchaser  with  any  intent  to  hinder,  delay  or  defraud  any  of its
      creditors;

            (xx) The Minimum  Monthly  Payment with respect to any Mortgage Loan
      is not less than the interest  accrued at the applicable  Loan Rate on the
      average daily Principal Balance during the interest period relating to the
      date on which such Minimum Monthly Payment is due;

            (xxi) As of the Closing Date with respect to the Mortgage  Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loans,  each Loan Agreement and each Mortgage Loan is genuine and
      is a legal,  valid,  binding  and  enforceable  obligation  of the related
      Mortgagor,  except as the  enforceability  thereof  may be  limited by the
      bankruptcy,   insolvency  or  similar  laws  affecting  creditors'  rights
      generally;

            (xxii) As of the Closing Date with respect to the Mortgage Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loans, there has been no default,  breach,  violation or event of
      acceleration of any senior  mortgage loan related to a Mortgaged  Property
      that has not been cured by a party other than the Servicer;

            (xxiii) The terms of each  Mortgage  Note and each Mortgage have not
      been  impaired,  altered or modified in any  respect,  except by a written
      instrument which (if such instrument is secured by real property) has been
      recorded, if necessary, to protect the interest of the Noteholders and the
      Insurer  and  which  has been  delivered  to the  Indenture  Trustee.  The
      substance  of any such  alteration  or  modification  is  reflected on the
      related  Mortgage  Loan  Schedule  and has been  approved  by the  primary
      mortgage guaranty insurer, if any;

            (xxiv) The  definition of "prime rate" in each Credit Line Agreement
      relating  to a HELOC  Mortgage  Loan does not differ  materially  from the
      definition  in the form of Credit Line  Agreement in Exhibit D to the Sale
      and Servicing Agreement;

            (xxv)  The  weighted  average  remaining  term  to  maturity  of the
      Mortgage  Loans  on  a  contractual  basis  as  of  the  Cut-Off  Date  is
      approximately  210  months.  On each date that the Loan Rates  relating to
      HELOC Mortgage Loans have been adjusted,  interest rate adjustments on the
      HELOC  Mortgage Loans were made in compliance  with the related  Mortgages
      and Credit Line Agreement and  applicable law and all required  notices of
      interest rate  adjustments  were sent to each Mortgagor on a timely basis.
      Over the term of each HELOC  Mortgage  Loan,  the Loan Rate may not exceed
      the related Loan Rate Cap, if any. The Loan Rate Cap for each of the HELOC
      Mortgage Loans is 18.000%.  With respect to the HELOC Mortgage Loans,  the
      margins range between 0.000% and 6.500% and the weighted average margin is
      approximately  2.631%  as of the  Cut-Off  Date.  The  Loan  Rates  on the
      Mortgage Loans range between 4.000% and 5.500%,  and the weighted  average
      Loan Rate on the Mortgage Loans is approximately 6.552%;

                                       8
<PAGE>

            (xxvi) As of the Closing Date with respect to the Mortgage Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage  Loans,  each Mortgaged  Property  consists of a single parcel of
      real  property with a one-to-four  unit single  family  residence  erected
      thereon, or an individual  condominium unit, planned unit development unit
      or townhouse;

            (xxvii) No more than  approximately  36.36% (by Pool Balance) of the
      Mortgage  Loans  are  secured  by real  property  improved  by  individual
      condominium  units,  planned  development units,  manufactured  housing or
      two-to-four  family residences erected thereon,  and approximately  63.64%
      (by Pool Balance) of the Mortgage  Loans are secured by real property with
      a one-family residence erected thereon;

            (xxviii) Each Mortgage Note evidencing a Closed End Mortgage Loan is
      comprised of one original  promissory  note and each such  promissory note
      constitutes an  "instrument"  for purposes of Section  9-102(A)(47) of the
      UCC.  There is no  obligation on the part of the Seller or any other party
      to make payments in addition to those made by the  Mortgagor  with respect
      to the Closed End Mortgage Loans;

            (xxix) The Credit Limits on the HELOC  Mortgage  Loans range between
      $5,000 and $500,000 with an average of approximately  $52,622. The average
      Credit Limit  Utilization  Rate  (weighted  by Credit  Limit) of the HELOC
      Mortgage Loans is  approximately  76.616%.  The Principal  Balances on the
      Mortgage  Loans range  between  approximately  $-45 and  $499,948  with an
      average of approximately $39,579.;

            (xxx)  Approximately  99.30% of the Mortgage Loans are second liens,
      and either (A) no  consent  for each  Mortgage  Loan was  required  by the
      holder of the related  senior  lien,  if any,  prior to the making of such
      Mortgage  Loan or (B) such  consent has been  obtained and is contained in
      the related Mortgage File;

            (xxxi) This Agreement constitutes a valid transfer and assignment to
      the Purchaser of all right, title and interest of the Seller in and to the
      Cut-Off Date Principal  Balances with respect to the  applicable  Mortgage
      Loans,  all  monies  due or to become  due with  respect  thereto  and all
      proceeds of such  Cut-Off  Date  Principal  Balances  with  respect to the
      Mortgage  Loans and such funds as are from time to time  deposited  in the
      Collection  Account  (excluding any investment  earnings  thereon) and all
      other property specified in the definition of "Trust" as being part of the
      corpus  of the Trust  conveyed  to the  Trust,  and upon  payment  for the
      Additional  Balances,  will  constitute a valid transfer and assignment to
      the Purchaser of all right, title and interest of the Seller in and to the
      Additional Balances, all monies due or to become due with respect thereto,
      and all  proceeds  of such  Additional  Balances  and all  other  property
      specified  in  the  definition  of  "Trust"  relating  to  the  Additional
      Balances;

            (xxxii) As of the Closing  Date no  Mortgage  Loan is the subject of
      foreclosure  proceedings and, to the best of the Sponsor's  knowledge,  no
      obligor of any of the Mortgage Loans has filed for bankruptcy  protection.
      As of the applicable  Transfer Date, no Eligible  Substitute Mortgage Loan
      is the subject of foreclosure proceedings and, to the best of the

                                       9
<PAGE>

      Sponsor's knowledge, no obligor of any of the Eligible Substitute Mortgage
      Loans has filed for bankruptcy protection;

            (xxxiii)  The  proceeds of each Closed End  Mortgage  Loan have been
      fully  disbursed,  and there is no obligation on the part of the mortgagee
      to  make  future  advances  thereunder.  Any and  all  requirements  as to
      completion of any on-site or off-site improvements and as to disbursements
      of any escrow funds therefor have been complied with. All costs,  fees and
      expenses  incurred  in making or  closing  or  recording  such  Closed End
      Mortgage Loans were paid;

            (xxxiv) Each Mortgage contains customary and enforceable  provisions
      which  render the rights and remedies of the holder  thereof  adequate for
      the realization  against the related Mortgaged Property of the benefits of
      the security, including (A) in the case of a Mortgage designated as a deed
      of trust,  by trustee's  sale and (B)  otherwise by judicial  foreclosure.
      Subject to applicable  state law, there is no homestead or other exemption
      available  to the  Mortgagor  which would  materially  interfere  with the
      rights to sell the Mortgaged  Property at a trustee's sale or the right to
      foreclose upon the related Mortgage;

            (xxxv) As of the Closing Date with respect to the Mortgage Loans and
      the  applicable  Transfer  Date with  respect to any  Eligible  Substitute
      Mortgage Loan, except for events  permissible under Section  4.02(a)(x) of
      this  Agreement,  there  is no  default,  breach,  violation  or  event of
      acceleration  existing under any Mortgage or the related Mortgage Note 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 the Seller  has not  waived  any  default,
      breach, violation or event of acceleration;

            (xxxvi) To the best  knowledge  of the  Seller,  all  parties to the
      Mortgage Note and the Mortgage had legal  capacity to execute the Mortgage
      Note and the Mortgage and each  Mortgage  Note and Mortgage have been duly
      and properly executed by such parties;  Each Mortgage and Mortgage Note is
      the legal,  valid and binding  obligation of the related  Mortgagor and is
      enforceable  by the Purchaser or any  transferor of the Purchaser  against
      the  Mortgagor  in  accordance  with  its  terms,   except  only  as  such
      enforcement  may be limited  by  bankruptcy,  insolvency,  reorganization,
      moratorium or other similar laws  affecting the  enforcement of creditors'
      rights  generally  and by law;  there  is  only  one  originally  executed
      Mortgage Note or Credit Line Agreement and promissory Note, as applicable,
      for each Mortgage Loan;

            (xxxvii) As of the Cut-Off Date no more than approximately  2.37% of
      the Principal Balance of the Mortgage Loans represent  Mortgage Loans with
      respect to which the related  Mortgagor  had a Credit Score of 600 or less
      at the time of origination or whose Credit Score was unavailable.

            (xxxviii) As of the Closing Date with respect to the Mortgage  Loans
      and the applicable  Transfer Date with respect to any Eligible  Substitute
      Mortgage Loan, no Mortgagor has been released, in whole or in part, except
      in connection with an assumption  agreement which has been approved by the
      applicable  title insurer (to the extent  required by such title  insurer)
      and which is part of the Mortgage File delivered to the Indenture Trustee;

                                       10
<PAGE>

            (xxxix)  At the  time of  origination  of each  Mortgage  Loan,  the
      related prior lien was not more than 30 days delinquent.  Additionally, as
      of the Closing  Date,  no senior  mortgage  loan on the related  Mortgaged
      Property was more than 59 days delinquent;

            (xl)  All  required  inspections,  licenses  and  certificates  with
      respect to the use and occupancy of all occupied  portions of all property
      securing the Mortgages have been made, obtained or issued, as applicable;

            (xli)  If the  improvements  securing  a  Mortgage  Loan  were  in a
      federally  designated  special  flood  hazard  area  as  of  the  date  of
      origination, flood insurance to the extent required in Section 3.04 of the
      Sale and Servicing Agreement covers the related Mortgaged Property (either
      by coverage  under the federal flood  insurance  program or by coverage by
      private insurers);

            (xlii) With respect to each  Mortgage  Loan,  the related prior lien
      does not provide for negative amortization;

            (xliii) With respect to each Mortgage Loan, the maturity date of the
      Mortgage  Loan is prior to the maturity  date of the related prior lien if
      such prior lien provides for a balloon payment;

            (xliv) All amounts  received  after the Cut-Off Date with respect to
      the Mortgage  Loans to which the Seller is not entitled  will be deposited
      into the  Collection  Account  within one  Business  Day after the Closing
      Date;

            (xlv)  Each  Mortgage  Loan  is  secured  by a  property  having  an
      appraised value as of origination of $9,300,000 or less;

            (xlvi) Except for events  permissible  under  Section  4.02(a)(x) of
      this  Agreement,  there are no defaults in complying with the terms of the
      Mortgage, and either (1) any taxes,  governmental  assessments,  insurance
      premiums,  water,  sewer  and  municipal  charges  or ground  rents  which
      previously  became due and owing have been paid, or (2) an escrow of funds
      has been  established  in an amount  sufficient to pay for every such item
      which  remains  unpaid and which has been  assessed but is not yet due and
      payable.  There are no defaults in complying  with the terms of any senior
      mortgage on the  related  Mortgaged  Property  that have not been cured by
      anyone other than the  Servicer,  except for any payment  defaults of less
      than 30 days.  Except  for  payments  in the  nature of  escrow  payments,
      including without limitation, taxes and insurance payments, 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 Note,
      except for interest accruing from the date of the Mortgage Note or date of
      disbursement of the Mortgage  proceeds,  whichever is greater,  to the day
      which  precedes  by one  month the Due Date of the  first  installment  of
      principal and interest;

            (xlvii) With respect to each Mortgage  Loan, the  improvements  upon
      each  Mortgaged  Property  are  covered  by a valid  and  existing  hazard
      insurance policy with a carrier generally  acceptable to the Servicer that
      provides for fire and  extended  coverage  representing  coverage not less
      than (a) the Credit Limit of such HELOC Mortgage Loan or

                                       11
<PAGE>

      (b) the Cut-Off Date Principal Balance of such Closed End Mortgage Loan or
      (c) the maximum insurable value of the Mortgaged Property;

            (xlviii) No misrepresentation of a material fact or fraud in respect
      of the  origination,  modification  or amendment of any Mortgage  Loan has
      taken place on the part of any person, including,  without limitation, the
      related  Mortgagor,  any appraiser,  any builder or developer or any party
      involved in the origination of such Mortgage Loan;

            (xlix) With respect to the Mortgage Loans, the terms of the Mortgage
      Note and the Mortgage have not been  impaired,  altered or modified in any
      material respect,  except by a written  instrument which has been recorded
      or is in the  process of being  recorded,  if  necessary,  to protect  the
      interests of the Insurer and the  Purchaser  and which has been or will be
      delivered  to the  Indenture  Trustee on behalf of the  Purchaser;  and no
      Mortgage has been satisfied,  cancelled or rescinded, in whole or in part,
      and the  Mortgaged  Property  securing the Mortgage has not been  released
      from the lien of the Mortgage, in whole or in part, nor has any instrument
      been  executed  that  would  effect  any  such  release,  cancellation  or
      rescission;

            (l) As of the Cut-Off  Date,  no Mortgage  Loan is more than 59 days
      delinquent in payment of principal and interest;

            (li) Except for Mortgage Loans that are delinquent for a time period
      less  than  that set  forth in (l)  above,  there is no  default,  breach,
      violation  or event of  acceleration  existing  under any  Mortgage or the
      related Mortgage Note 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  neither the
      Seller,  nor any other  entity  involved  in  originating  or  servicing a
      Mortgage  Loan,  has waived any  default,  breach,  violation  or event of
      acceleration;

            (lii) None of the Mortgage Loans is a cooperative share mortgage;

            (liii) Each  appraisal of a Mortgage Loan that was used to determine
      the  appraised  value of the  related  Mortgaged  Property  was  conducted
      generally  in  accordance  with the  Seller's  mortgage  loan  origination
      program(s) and customary  industry standards and included an assessment of
      the fair market value of the related mortgaged property at the time of the
      appraisal.  The Mortgage  File  contains an  appraisal  of the  applicable
      Mortgaged Property;

            (liv) All individual insurance policies contain a standard mortgagee
      clause naming the Servicer, its successors and assigns, as mortgagee.  All
      premiums  thereon have been paid.  Each  Mortgage  obligates the Mortgagor
      thereunder  to maintain  all such  insurance at the  Mortgagor's  cost and
      expense,  and upon the Mortgagor's failure to do so, authorizes the holder
      of the Mortgage to obtain and maintain such  insurance at the  Mortgagor's
      cost and expense and to seek reimbursement therefor from the Mortgagor;

            (lv) Any advances made after the date of  origination  of a Mortgage
      Loan  but  prior to the  Cut-Off  Date  have  been  consolidated  with the
      outstanding  principal  amount  secured by the related  Mortgage,  and the
      secured principal amount, as consolidated, bears a

                                       12
<PAGE>

      single  interest rate and single  repayment term reflected on the Mortgage
      Loan  Schedule.  The  consolidated  principal  amount  does not exceed the
      original principal amount of the related Mortgage Loan;

            (lvi)  No  improvement  located  on or being  part of any  Mortgaged
      Property is in violation of any applicable  zoning law or regulation.  All
      inspections,  licenses and certificates required to be made or issued with
      respect to all occupied  portions of each  Mortgaged  Property  and,  with
      respect to the use and occupancy of the same,  including,  but not limited
      to,  certificates of occupancy and fire  underwriting  certificates,  have
      been made or obtained from the appropriate  authorities and such Mortgaged
      Property  is  lawfully   occupied   under  the   applicable  law  and  all
      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 no improvements on
      adjoining property encroach upon the Mortgage Property;

            (lvii) The  proceeds  of each fixed rate and balloon  Mortgage  Loan
      have been fully  disbursed  and there is no  obligation on the part of the
      mortgagee to make future advances  thereunder and any and all requirements
      as to  completion  of  any  on-site  or  off-site  improvements  and as to
      disbursement  of any escrow funds  therefor have been complied  with.  All
      costs,  fees and expenses  incurred in making,  closing or  recording  the
      Mortgage  Loans were paid and the  Mortgagor is not entitled to any refund
      of amounts paid or due under the Mortgage Note;

            (lviii) No Mortgage Loan has a shared appreciation feature, or other
      contingent interest feature;

            (lix) All parties which have had any interest in the Mortgage  Loan,
      whether as originator, mortgagee, assignee, pledgee or otherwise, are (or,
      during the period in which they held and disposed of such interest, were):
      (A)  organized  under  the  laws of such  state,  or (B)  qualified  to do
      business in such state,  or (C) federal  savings and loan  associations or
      national banks having  principal  offices in such state,  or (D) not doing
      business in such state so as to require qualification or licensing, or (E)
      not otherwise  required or licensed in such state. To the best of Seller's
      knowledge,  all parties  which have had any interest in the Mortgage  Loan
      were in compliance with any and all applicable  licensing  requirements of
      the laws of the state  wherein the  Mortgaged  Property is located or were
      not required to be licensed in such state;

            (lx) Each document or instrument in the related  Mortgage File is in
      a form  generally  acceptable to prudent  mortgage  lenders that regularly
      originate or purchase  mortgage loans comparable to the Mortgage Loans for
      sale to prudent  investors in the secondary market that invest in mortgage
      loans such as the Mortgage Loans;

            (lxi)  Each  original  Mortgage  was  recorded  and  all  subsequent
      assignments  of the original  Mortgage  (other than the  assignment to the
      Purchaser)  have been recorded in the  appropriate  jurisdictions  wherein
      such  recordation  is  necessary  to perfect  the lien  thereof as against
      creditors of the Seller, or is in the process of being recorded;

                                       13
<PAGE>

            (lxii) No Mortgage Loan was originated under a buydown plan;

            (lxiii) No Mortgage Loan is subject to the  requirements of the Home
      Ownership and Equity  Protection  Act of 1994 ("HOEPA") or is in violation
      of any state or municipal law comparable to HOEPA;

            (lxiv) The Servicer for each Mortgage Loan will accurately and fully
      report its borrower  credit files to all three  credit  repositories  in a
      timely manner;

            (lxv) No  proceeds  from any  Mortgage  Loan were  used to  purchase
      single-premium credit insurance policies;

            (lxvi) No Mortgage  Loan has a  prepayment  penalty term longer than
      five years after its origination;

            (lxvii) Each Mortgage Loan  conforms,  and all Mortgage Loans in the
      aggregate conform, in all material respects,  to the descriptions  thereof
      set forth in the Prospectus Supplement;

            (lxviii) Each Mortgage Loan was  originated on or after February 10,
      2003;

            (lxix) The Seller  represents and warrants that the Seller currently
      operates or actively participates in an on-going business (A) to originate
      single  family  mortgage  loans  ("LOANS"),  and/or  (B) to make  periodic
      purchases of Loans from originators or sellers, and/or (C) to issue and/or
      purchase  securities or bonds  supported by the Loans,  a portion of which
      Loans are made to borrowers who are:

                  (a) low-income  families (families with incomes of 80% or less
                  of area median  income)  living in low-income  areas (a census
                  tract or block  numbering area in which the median income does
                  not exceed 80 percent of the area median income); or

                  (b) very low-income  families (families with incomes of 60% or
                  less of area median income).

            (lxx) Each Mortgage contains a provision for the acceleration of the
      payment of the unpaid  principal  balance of the related  Mortgage Loan in
      the event the related  Mortgaged  Property is sold or transferred  without
      the prior consent of the mortgagee thereunder;

            (lxxi) Each Mortgage Loan was originated substantially in accordance
      with Seller's  underwriting  criteria,  which conform to the  underwriting
      criteria set forth in the Prospectus Supplement;

            (lxxii)  There exists no  violation  of any local,  state or federal
      environmental law, rule or regulation in respect of any Mortgaged Property
      which violation has or could have a material  adverse effect on the market
      value of such Mortgaged  Property.  Seller has no knowledge of any pending
      action or proceeding  directly  involving any such  Mortgaged  Property in
      which  compliance  with any  environmental  law,  rule or regulation is in
      issue; and,

                                       14
<PAGE>

      to the best of Seller's  knowledge,  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 any such Mortgaged
      Property;

            (lxxiii) The Seller has caused or will cause to be performed any and
      all acts  required to be  performed to preserve the rights and remedies of
      the Indenture Trustee in any insurance policies applicable to the Mortgage
      Loans  including,  without  limitation,  any  necessary  notifications  of
      insurers,  assignment of policies or interests therein, and establishments
      of  co-insured,  joint  loss  payee and  mortgagee  rights in favor of the
      Indenture Trustee;

            (lxxiv) The related Mortgage Note is not and has not been secured by
      any  collateral,  pledged account or other security except the lien of the
      corresponding Mortgage;

            (lxxv) There is no obligation on the part of the Seller or any other
      party to make payments in addition to those made by the Mortgagor;

            (lxxvi) With respect to each Mortgage  constituting a deed of trust,
      a trustee,  duly  qualified  under existing law to serve as such, has been
      properly designated and currently so serves and is named in such Mortgage,
      and no fees or expenses are or will become  payable by the  Noteholders or
      the Trust to the  trustee  under the deed of trust,  except in  connection
      with a trustee's sale after default by the Mortgagor;

            (lxxvii) Each  Mortgagor has executed a statement to the effect that
      such Mortgagor has received all disclosure  materials including the notice
      of the right of cancellation or rescission required by applicable law with
      respect to the making of the Mortgage  Loan and any waiver of any right of
      cancellation  or  rescission  exercised by the Mortgagor was in accordance
      with applicable law and is binding on the Mortgagor;

            (lxxviii)  The security  interest  created  pursuant to Section 3.01
      hereof is a valid and continuing security interest (as defined in the UCC)
      in favor of the Purchaser in the property sold, transferred, assigned, set
      over and otherwise  conveyed from the Seller to the Purchaser  pursuant to
      this Agreement, which security interest is prior to all other Liens and is
      enforceable as such against creditors of and purchasers from the Seller;

            (lxxix) The Seller has not authorized the filing of and is not aware
      of any financing  statements against the Seller that include a description
      of collateral covering the property sold, transferred,  assigned, set over
      and otherwise  conveyed from the Seller to the Purchaser  pursuant to this
      Agreement  other than any  financing  statement  relating to the  security
      interest granted to the Purchaser hereunder that has not been terminated;

            (lxxx) The Seller is not aware of any  judgment or tax lien  filings
      against it;

            (lxxxi)  None of the  Mortgage  Notes  has any  marks  or  notations
      indicating that they have been pledged,  assigned or otherwise conveyed to
      any Person other than the Issuer.

            (lxxxii)  The pool tape from  which the  selection  of the  Mortgage
      Loans  being  acquired  on the  Closing  Date  was made  available  to the
      accountants that are providing a

                                       15
<PAGE>

      comfort letter to the Issuer in connection with the Prospectus  Supplement
      and with  respect  to the  Mortgage  Loans  as of the  Closing  Date,  the
      information  on the pool tape was complete and accurate as of its date and
      included a description  of the same  Mortgage  Loans that are described on
      the Schedule of Mortgage  Loans and the payments due  thereunder as of the
      Closing Date;

            (lxxxiii) With respect to each Mortgage Loan, the payments  required
      of the related  Mortgagor  will be such that the Mortgage  Loan will fully
      amortize over its amortization term; and

            (lxxxiv)  The  Sale,  transfer,  assignment  and  conveyance  of the
      Mortgage  Loans by the Seller to the  Purchaser  pursuant to the  Mortgage
      Loan Purchase  Agreement is not subject to and will not result in any tax,
      fee or governmental charge payable by the Seller, the Sponsor,  the Issuer
      or the  Indenture  Trustee  to any  federal,  state or  local  governments
      ("TRANSFER  TAXES") other than Transfer Taxes which have or will have been
      paid by the Sponsor as due; PROVIDED,  that in the event that the Trust or
      the Indenture Trustee receives actual notice of any Transfer Taxes arising
      out of the transfer,  assignment or conveyance of the Mortgage  Loans,  on
      written  demand  by the  Issuer  or the  Indenture  Trustee,  or upon  the
      Seller's  otherwise  being  given  notice  thereof  by the  Issuer  or the
      Indenture Trustee,  the Seller shall pay, and otherwise indemnify and hold
      the  Issuer,  the  Indenture  Trustee  and  the  Insurer  harmless,  on an
      after-tax  basis,  from and against any and all Transfer  Taxes,  it being
      understood that the Noteholders, the Issuer, the Indenture Trustee and the
      Insurer shall have no obligation to pay any such Transfer Taxes.

With respect to the  representations  and  warranties  set forth in this Section
4.02  that are made to the best of the  Seller's  knowledge  or as to which  the
Seller has no knowledge, if it is discovered by the Purchaser, the Servicer, the
Insurer or a Responsible  Officer of the Indenture Trustee that the substance of
such  representation  and warranty is inaccurate and such inaccuracy  materially
and   adversely   affects  the  value  of  the  related   Mortgage   Loan  then,
notwithstanding  the Seller's lack of knowledge with respect to the substance of
such representation and warranty being inaccurate at the time the representation
or warranty was made, such inaccuracy shall be deemed a breach of the applicable
representation or warranty.  Notwithstanding  the foregoing,  a breach of any of
the  representations  and warranties set forth in clauses (lxiii) through (lxvi)
of this Section 4.02 will be deemed to materially and adversely affect the value
of the related Mortgage Loan.

            Section 4.03. REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser
hereby  makes  the  following  representations  and  warranties,  each of  which
representations  and  warranties (i) is material and being relied upon by Seller
and (ii) is true in all respects as of the date of this Agreement:

            (i) Purchaser has been duly  organized and is validly  existing as a
      corporation under the laws of the State of Delaware.

            (ii) Purchaser has the requisite power and authority and legal right
      to execute and deliver,  engage in the  transactions  contemplated by, and
      perform and  observe the terms and  conditions  of, this  Agreement  to be
      performed by it.

                                       16
<PAGE>

            (iii)  This  Agreement  has been duly  authorized  and  executed  by
      Purchaser,   is  valid,  binding  and  enforceable  against  Purchaser  in
      accordance with its terms, and the execution,  delivery and performance by
      Purchaser of this  Agreement  does not conflict  with any material term or
      provision of any other agreement to which Purchaser is a party or any term
      or provision of the  Certificate  of  Incorporation  or the By-laws of the
      Purchaser, or any law, rule, equation,  order, judgment,  writ, injunction
      or  decree  applicable  to  Purchaser  of  any  court,   regulatory  body,
      administrative  agency  or  governmental  body  having  jurisdiction  over
      Purchaser.

            (iv) No consent,  approval,  authorization or order of, registration
      or  filing  with,  or  notice to any  governmental  authority  or court is
      required  under  applicable  law in  connection  with  the  execution  and
      delivery by Purchaser of this Agreement.

            (v) There is no action,  proceeding or investigation  pending or, to
      the best knowledge of Purchaser,  threatened  against Purchaser before any
      court,   administrative   agency  or  other  tribunal  (i)  asserting  the
      invalidity of this Agreement,  (ii) seeking to prevent the consummation of
      any of the transactions  contemplated by this Agreement, or (iii) which is
      likely to materially and adversely  affect the performance by Purchaser of
      its  obligations  under,  or  the  validity  or  enforceability  of,  this
      Agreement.

            (vi) Each purchase of Mortgage Loans  hereunder  shall  constitute a
      representation by Purchaser to Seller that Purchaser understands, and that
      Purchaser  has such  knowledge  and  experience  in financial and business
      matters  that it is  capable  of  evaluating  the merits and risks of, its
      investment in the relevant Mortgage Loans.

            Section 4.04. REMEDIES FOR BREACH OF REPRESENTATIONS AND WARRANTIES;
REPURCHASE OBLIGATION.  It is understood and agreed that the representations and
warranties  set  forth in  Sections  4.01 and 4.02  shall  survive  each sale of
Mortgage  Loans to the Purchaser and shall inure to the benefit of the Purchaser
and subsequent  transferees  and assignees  notwithstanding  any  restrictive or
qualified  endorsement  on any Mortgage  Note or  Assignment  of Mortgage or the
examination  or  failure to  examine  any  Mortgage  File.  With  respect to the
representations  and  warranties  contained in Sections  4.01 and 4.02 which are
made to the best of the  Seller's  knowledge  or to the actual  knowledge of the
Seller,  if it is discovered by either the Seller,  the Indenture Trustee or the
Issuer, or the Purchaser that the substance of such  representation and warranty
is inaccurate and such inaccuracy  materially and adversely affects the value of
the  related   Mortgage  Loan  or  the  Purchaser's   interest   therein,   then
notwithstanding the Seller's lack of knowledge with respect to the inaccuracy at
the time the  representation  or warranty was made, the Seller shall  repurchase
the  related  Mortgage  Loan in  accordance  with  this  Section  4.04 as if the
applicable  representation  or warranty was  breached,  subject to the terms and
conditions of the Sale and  Servicing  Agreement.  Upon  discovery by either the
Seller, the Indenture Trustee, the Issuer or the Purchaser of a breach of any of
the foregoing  representations  and  warranties  which  materially and adversely
affects the value of the  Mortgage  Loans or the interest of the  Purchaser  (or
which  materially  and  adversely  affects the interests of the Purchaser in the
related Mortgage Loan in the case of a representation and warranty relating to a
particular  Mortgage Loan), the party  discovering such breach shall give prompt
written notice to the others.

                                       17
<PAGE>

            Within 60 days of the  earlier of either  discovery  by or notice to
the Seller of any breach of a  representation  or warranty which  materially and
adversely  affects the value of any Mortgage  Loan or the  Purchaser's  interest
therein,  the Seller shall use its best efforts  promptly to cure such breach in
all material  respects and, if such breach cannot be cured or is not cured or is
not  being  diligently  pursued  as  evidenced  by a  notice  acceptable  to the
Purchaser, as evidenced by the Purchaser's agreement thereto, at the end of such
60-day  period,  the  Seller  shall,  at  the  Purchaser's  option,  either  (a)
repurchase  such  Mortgage  Loan at the Loan  Purchase  Price or (b)  provide an
Eligible  Substitute  Mortgage Loan, if the Seller has any such loans  available
for  sale at the  time  subject  to the  terms  and  conditions  of the Sale and
Servicing Agreement.

            At the time of  repurchase  or  substitution,  the Purchaser and the
Seller shall arrange for the  assignment of such Mortgage Loan to the Seller and
the delivery by the Purchaser to the Seller of the related Mortgage Files.

            In addition to such cure and repurchase obligation, the Seller shall
indemnify  the  Purchaser  and hold it harmless  against  any  losses,  damages,
penalties,  fines, forfeitures,  reasonable and necessary legal fees and related
costs, judgments, and other costs and expenses resulting from any claim, demand,
defense or assertion  based on or grounded upon, or resulting  from, a breach of
the representations and warranties contained in this Article IV (notwithstanding
any  limitation  in  such   representation  and  warranty  as  to  the  Seller's
knowledge).  It is understood and agreed that the  obligations of the Seller set
forth in this Section 4.04 to cure or  repurchase a defective  Mortgage Loan and
to indemnify the Purchaser as provided in this Section 4.04  constitute the sole
remedies of the Purchaser  respecting a breach of the foregoing  representations
and warranties.

            Any cause of action against the Seller relating to or arising out of
the breach of any  representations  and warranties made in Sections 4.01 or 4.02
shall  accrue as to any Mortgage  Loan upon (i)  discovery of such breach by the
Purchaser, the Indenture Trustee or the Insurer, or notice thereof by the Seller
to the  Purchaser,  the  Indenture  Trustee or the Insurer,  (ii) failure by the
Seller to cure such breach or repurchase such Mortgage Loan as specified  above,
and (iii) demand upon the Seller by the Purchaser,  the Indenture Trustee or the
Insurer, for compliance with the relevant provisions of this Agreement.

                                    ARTICLE V

                       Covenants and Warranties of Seller

            So long as this Agreement remains in effect or Seller shall have any
obligations  hereunder,  Seller hereby  covenants  and agrees with  Purchaser as
follows:

            Section 5.01. AFFIRMATIVE COVENANTS.

            (a) Until the later to occur of (i) the discharge and payment of all
of Seller's  obligations  under this Agreement and (ii) the Termination  Date of
this Agreement,  Seller shall, promptly upon preparation,  but in no event later
than 60 days following the end of each such party's first three fiscal quarters,
deliver to Purchaser its unaudited  company-prepared  financial statements as of
the end of each such fiscal quarter, prepared in accordance with GAAP. Seller

                                       18
<PAGE>

shall,  promptly upon preparation,  but in no event later than 90 days following
the end of such party's fourth fiscal quarter,  deliver to Purchaser its audited
and certified financial statements,  prepared in accordance with GAAP, as of the
end of the most  recently  ended  fiscal year,  which audits and  certifications
shall each be prepared by a nationally recognized independent accounting firm or
by a regionally  recognized  independent  accounting firm with the prior written
consent of Purchaser,  which consent shall not be unreasonably  withheld. In all
cases, financial statements shall include,  without limitation, a balance sheet,
a profit and loss  statement  and a  statement  of cash  flows.  Notwithstanding
anything in this  Agreement to the  contrary,  if (x) the audited and  certified
financial  statements  described in the immediately  preceding  sentence are not
delivered within the above-specified 90 days, (y) Seller is diligently using its
best  efforts to deliver  such  financial  statements,  and (z) Seller  provides
Purchaser with a notice specifying the reason for the delay and a date, within a
reasonable  time period (as  determined by  Purchaser),  on which such financial
statements will be delivered, and they are so delivered; then failure to deliver
such financial  statements within the  above-specified  90 days, as the case may
be, shall not be deemed to be an Event of Termination of this Agreement.

            (b) Upon request of Purchaser,  Seller shall,  to the extent lawful,
promptly upon filing, deliver to Purchaser copies of all material public filings
made by Seller with any governmental or quasi-governmental body.

            (c) Seller shall (i) with respect to any Mortgage  Loans serviced by
Seller or any of its affiliates or otherwise use its best efforts to cause to be
delivered to Purchaser  monthly,  the report,  if any,  prepared by the relevant
trustee or servicer setting forth payment  activity,  defaults and delinquencies
with respect to each  Mortgage  Loan  acquired by Purchaser and (ii) prepare and
deliver  reports  each month,  detailing,  with respect to all  Purchases,  such
information as the Purchaser may from time to time reasonably request.

            (d)  Seller   shall  do  all  things   necessary   to  remain   duly
incorporated, validly existing and in good standing as a domestic corporation in
its  jurisdiction  of  incorporation  and  maintain all  requisite  authority to
conduct its  business in each  jurisdiction  in which its  business is conducted
except  where  failure  to  maintain  such  authority  would not have a material
adverse  effect on the ability of Seller to conduct  its  business or to perform
its obligations under this Agreement.

            (e) At  all  times  during  this  Agreement,  Seller  shall  possess
sufficient  net  capital  and liquid  assets (or  ability to access the same) to
satisfy its obligations as they become due in the normal course of business.

            (f) Seller will notify  Purchaser in writing of any of the following
promptly upon learning of the  occurrence  thereof,  describing the same and, if
applicable, any remedial steps being taken with respect thereto;

            (i) The  occurrence  or  likelihood  of  occurrence  of an  Event of
      Termination hereunder;

                                       19
<PAGE>

            (ii) The  institution of any litigation,  arbitration  proceeding or
      governmental  proceeding which, in the opinion of counsel to Seller,  will
      have a material adverse effect on Seller or the Mortgage Loans;

            (iii) The entry of any  judgment  or  decree  against  Seller if the
      aggregate  amount of all  judgments and decrees then  outstanding  against
      Seller exceeds  $10,000,000 after deducting (A) the amount with respect to
      which  Seller is insured and with respect to which the insurer has assumed
      responsibility  in  writing,  and (B)  the  amount  for  which  Seller  is
      otherwise  indemnified if the terms of such indemnification are reasonably
      satisfactory to Purchaser; or

            (iv) The occurrence or likelihood of any event which would allow the
      obligee  under any  material  loan  agreement  to which Seller is bound to
      declare  an event of  default  or  accelerate  the  obligations  of Seller
      thereunder.

            (g) Seller shall permit the Purchaser or its accountants,  attorneys
or other  agents  access to all of the books and  records  relating  to Mortgage
Loans  purchased and retained by Purchaser  for  inspection  and copying  during
normal business hours at all places where Seller conducts business.

            (h) Seller  shall  satisfy  the  obligation  under any  Credit  Line
Agreement that provides for the funding of all future Draws thereunder.

            Section 5.02. NEGATIVE COVENANTS.

            (a) Seller  shall not assign or attempt to assign this  Agreement or
any rights  hereunder,  without first obtaining the specific  written consent of
Purchaser.

            (b) Seller shall not amend its Articles of Incorporation or By-laws,
which amendment shall have or is likely to have an adverse effect upon Purchaser
or its interests  under this  Agreement,  without the prior  written  consent of
Purchaser.

            (c) During the term of this  Agreement,  Seller  shall not engage in
any business other than as a consumer and mortgage  finance lender and servicer,
except with the prior written consent of Purchaser.

            (d) Seller shall not (i) dissolve or terminate its existence or (ii)
transfer any assets to any affiliate except as otherwise  expressly permitted or
contemplated hereby.

            (e) Except with the  written  consent of the  Purchaser,  the Seller
shall not  guarantee,  endorse or otherwise in any way become or be  responsible
for any obligations of any other person, entity or affiliate, including, without
limitation,  whether  directly  or  indirectly  by  agreement  to  purchase  the
indebtedness  of any other person or through the purchase of goods,  supplies or
services,  or maintenance of working capital or other balance sheet covenants or
conditions, or by way of stock purchase,  capital contribution,  advance or loan
for the purposes of paying or discharging any indebtedness or obligation of such
other person or otherwise;  PROVIDED,  HOWEVER,  that nothing  contained  herein
shall  prevent  Seller from  indemnifying  its  officers,  directors  and agents
pursuant to its By-laws and its Articles of Incorporation.

                                       20
<PAGE>

            (f) Seller will not commit any act in violation of applicable  laws,
or regulations promulgated pursuant thereto that relate to the Mortgage Loans or
that materially and adversely  affect the operations or financial  conditions of
Seller.

            (g) Seller,  by entering into this Agreement,  hereby  covenants and
agrees that it will not at any time institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy, reorganization,  arrangement,
insolvency or liquidation  proceedings,  or other  proceedings  under any United
States  federal  or State  bankruptcy  or  similar  law in  connection  with any
obligations relating to the Notes or any of the Basic Documents.

                                   ARTICLE VI

             Sale of Mortgage Loans from the Purchaser to the Trust

            Section 6.01. SALE AND SERVICING AGREEMENT.  It is the intent of the
Seller and the Purchaser that with respect to the Mortgage Loans,  the Purchaser
shall  concurrently  sell all of its right,  title and  interest to the Mortgage
Loans and all other  property  conveyed to it hereunder to the Trust pursuant to
the Sale and Servicing Agreement.

            With respect to such sale, the Seller agrees:

            (i) to cooperate fully with the Purchaser and the Trust with respect
      to  all  reasonable  requests  and  due  diligence   procedures  including
      participating in meetings with Rating Agencies, the Insurer and such other
      parties as the Purchaser  shall  designate and  participating  in meetings
      with the Trust  and  providing  information  reasonably  requested  by the
      Trust;

            (ii) to  execute  the Sale and  Servicing  Agreement  and all  other
      necessary documents to effect the transactions contemplated therein;

            (iii) the Seller shall make the  representations  and warranties set
      forth herein regarding the Seller and the Mortgage Loans as of the date of
      the transfer to the Trust;

            (iv) to deliver to the Purchaser for inclusion in any  prospectus or
      other offering material such publicly available  information regarding the
      Seller,  its  financial  condition  and  the  mortgage  loan  delinquency,
      foreclosure  and loss  experience of its portfolio as is  customarily  set
      forth in a prospectus  supplement  with  respect to a comparable  mortgage
      pool, the underwriting of mortgage loans, the servicer,  the servicing and
      collection of mortgage  loans,  lending  activities  and loan sales of the
      servicer,  regulatory  matters and delinquency and loss experience and any
      additional  information  reasonably  requested  by the  Purchaser,  and to
      deliver to the Purchaser unaudited  consolidated  financial  statements of
      the Seller, in which case the Purchaser shall bear the cost of having such
      statements  audited  by  certified  public  accountants  if the  Purchaser
      desires  such an audit,  or as is  otherwise  reasonably  requested by the
      Purchaser   and  which  the  Seller  is  capable  of   providing   without
      unreasonable  effort or expense,  and to indemnify  the  Purchaser and its
      affiliates  for  material  misstatements  or  omissions  contained in such
      information;

                                       21
<PAGE>

            (v) to deliver to the Purchaser and to any person  designated by the
      Purchaser,  at the Purchaser's expense,  such statements and audit letters
      issued  by  reputable,   certified   public   accountants   pertaining  to
      information  provided by the Seller pursuant to clause (iv) above as shall
      be  reasonably  requested  by the  Purchaser  (it  being  acknowledged  by
      Purchaser  that the delivery of such  statements and letters is subject to
      the consent of such accountants);

            (vi) to deliver to the  Purchaser,  and to any Person  designated by
      the Purchaser,  such legal  documents and in-house  opinions of counsel as
      are customarily delivered by originators or servicers, as the case may be,
      and  reasonably  determined by the Purchaser to be necessary in connection
      with the transactions contemplated by the Sale and Servicing Agreement, it
      being  understood that the cost of any opinions of outside special counsel
      that may be required shall be the responsibility of the Seller;

            (vii) to  cooperate  fully with the  Purchaser  and any  prospective
      Purchaser  with respect to the  preparation of Mortgage Loan documents and
      other  documents  and with  respect to servicing  requirements  reasonably
      requested by the Rating Agencies and the Insurer; and

            (viii) to negotiate and execute one or more  custodial and servicing
      agreements   among  the   Purchaser,   the  Seller   and  a  third   party
      custodian/trustee   which  is  generally   considered   to  be  a  prudent
      custodian/trustee  in the  secondary  mortgage  market  designated  by the
      Purchaser in its sole discretion after  consultation  with the Seller,  in
      either case for the purpose of securitizing the Mortgage Loans.

                                   ARTICLE VII

                         Seller's Servicing Obligations

            Section 7.01.  SELLER'S  SERVICING  OBLIGATIONS.  The Seller,  as an
independent  contract servicer,  shall service and administer the Mortgage Loans
in accordance  with the terms and  provisions  set forth in Articles III, IV, V,
VII and VIII of the Sale and  Servicing  Agreement  which  sections  are  hereby
incorporated in this Agreement in their entirety (with, however, the changes and
adjustments as provided in this Agreement) as if the same were contained in this
Article VII.

            To the extent any provision of any  definition set forth in the Sale
and  Servicing  Agreement  shall  conflict  with any provision set forth in this
Agreement, the provision or definition in this Agreement shall govern.

                                  ARTICLE VIII

                                Fees and Expenses

            The Purchaser shall pay any salaries and other  compensation due its
employees and the legal fees and expenses of its attorneys and accountants.  All
other costs and expenses  incurred in connection  with the transfer and delivery
of the  Mortgage  Loans  pursuant to this  Agreement  or the Sale and  Servicing
Agreement, including, without limitation,  recording fees, fees for title policy
endorsements and continuations, and fees for recording intervening

                                       22
<PAGE>

assignments of Mortgage, shall be paid by the Seller. To the extent not paid out
of the Trust pursuant to Section  8.7(d)(i) of the  Indenture,  the Seller shall
pay the on-going  fees of any  custodian or trustee under the Sale and Servicing
Agreement,  the Trust  Agreement or the Indenture.  The Seller shall pay (i) the
acceptance  and  file  review  fees  of any  custodian  or  trustee  under  this
Agreement,  the  Indenture,  the  Trust  Agreement  or the  Sale  and  Servicing
Agreement  and (ii) the costs of legal  counsel and legal  opinions,  accounting
comfort letters and fees, printing of disclosure documents,  rating agency fees,
Insurer  up-front  fees,  SEC filing  fees and the costs of any and all  related
document  preparations  associated  with the Sale and Servicing  Agreement,  the
Trust Agreement,  the Indenture or this Agreement. The Seller also agrees to pay
the fees and other  amounts for which the Seller or Servicer is obligated  under
the Insurance Agreement.

                                   ARTICLE IX

                        Termination; Additional Remedies

            Upon the occurrence of a Rapid  Amortization  Event due to an act or
omission  of the Seller  (an  "EVENT OF  TERMINATION"),  the  Purchaser  and its
assignees  shall have,  in addition to all other rights and remedies  under this
Agreement or otherwise,  all other rights and remedies provided under the UCC of
each applicable  jurisdiction  and other  applicable laws, which rights shall be
cumulative.  Without  limiting  the  foregoing,  the  occurrence  of an Event of
Termination  shall not deny to the  Purchaser  or its  assignees  any  remedy in
addition to termination of its obligations to make purchases  hereunder to which
the Purchaser or its assignee may be otherwise appropriately  entitled,  whether
by statute or applicable law, at law or in equity.

                                    ARTICLE X

                            Payment of Purchase Price

            Section 10.01.  PURCHASE PRICE PAYMENTS.  On the Closing Date and on
the next Business Day following each other day on which any Additional  Balances
relating to Mortgage Loans are funded by the Seller, on the terms and subject to
the  conditions of this  Agreement,  the  Purchaser  shall pay to the Seller the
applicable  Purchase Price by (i) making or causing to be made a cash payment to
the Seller or its  designee in such amount  determined  by the  Purchaser,  (ii)
crediting the Seller with an additional  capital  contribution to the Purchaser,
(iii)  automatically  increasing  the  principal  amount  outstanding  under the
Purchaser  Note by the amount of the excess of the Purchase  Price to be paid to
the Seller for such purchased assets over the amount of any cash payment made on
such day to the Seller and/or any capital contribution made by the Seller to the
Purchaser,  subject  to a cap on such note at any time  equal to $30  million or
(iv) any combination of the foregoing.

            Section 10.02. THE PURCHASER NOTE.

            (a) On the Closing Date, the Purchaser shall deliver to the Seller a
promissory note, substantially in the form of EXHIBIT A, payable to the order of
the Seller  (such  promissory  note,  as the same has been or  hereafter  may be
amended,  supplemented,  endorsed  or  otherwise  modified  from  time to  time,
together with any promissory note issued from time to time in

                                       23
<PAGE>

substitution  therefor or renewal  thereof in  accordance  with this  Agreement,
being herein  called the  "PURCHASER  NOTE"),  which  Purchaser  Note shall,  in
accordance with its terms,  be  subordinated to all interests of the Trust,  all
claims to the cash flows from Trust assets and all obligations of the Purchaser,
of any nature, now or hereafter arising under or in connection with the Sale and
Servicing  Agreement.  The Purchaser  Note shall  evidence all amounts  incurred
thereunder subsequent to the Closing Date as provided in this Agreement. Subject
to the foregoing,  the Purchaser Note shall be payable in full on the date which
is one year and one day after the  Termination  Date.  The Purchaser  Note shall
bear interest at the "prime rate" as  determined  by the Indenture  Trustee from
time to time in effect.  The Purchaser may prepay all or part of the outstanding
balance of the  Purchaser  Note and interest  accrued  thereon from time to time
without any premium or penalty,  unless an Event of Default has  occurred and is
continuing or would result from such prepayment or payment.

            (b) The Servicer  shall hold the  Purchaser  Note for the benefit of
the Seller, and shall make all appropriate recordkeeping entries with respect to
the Purchaser  Note or otherwise to reflect the payments on and  adjustments  of
the Purchaser Note. The Servicer's books and records shall constitute rebuttable
presumptive  evidence of the  principal  amount of and  accrued  interest on the
Purchaser  Note at any  time.  The  Seller  hereby  irrevocably  authorizes  the
Servicer to mark the Purchaser Note "CANCELLED" and to return the Purchaser Note
to the Purchaser upon the full and final payment  thereof after the  Termination
Date.

            (c) The Seller  hereby agrees not to transfer,  assign,  exchange or
otherwise convey or pledge,  hypothecate or otherwise grant a security  interest
in the Purchaser Note or any interest  represented  thereby,  and any attempt to
transfer,  assign,  exchange,  convey,  pledge,  hypothecate or grant a security
interest in the Purchaser Note or any interest represented thereby shall be void
and of no effect.

                                   ARTICLE XI

                                 Confidentiality

            Purchaser  and  Seller  each   acknowledges   that  the  information
heretofore  provided to them  pursuant to the  operation of this  Agreement,  is
highly confidential, proprietary information of Seller or Purchaser, as the case
may be.  Purchaser and Seller each agrees that it will hold such  information in
strict  confidence  and will not  disclose any part of such  information  to any
person or  entity,  other  than to its  accountants  and  lawyers  to the extent
necessary for the  performance  of their duties and as required by law and other
than to such  other  persons  to the  extent  necessary,  as  determined  by the
Purchaser  in its sole  discretion,  to complete the  transactions  contemplated
hereunder  and in the Sale and  Servicing  Agreement  including the offering and
issuance of the Notes;  PROVIDED,  HOWEVER, that copies of this Agreement may be
included as part of any filing made pursuant to the  Securities  Act of 1933 and
the Securities Exchange Act of 1934 and any regulations  promulgated thereunder.
In  furtherance  of the  foregoing,  Purchaser and Seller each covenants that it
will adhere to its established procedures for the maintenance of confidentiality
with respect to such information.  Purchaser and Seller each further agrees that
it will not distribute such information  within its own  organization  except to
persons with a need to know such information in connection with the transactions
contemplated by this Agreement.

                                       24
<PAGE>

                                   ARTICLE XII

                                      Term

            This Agreement shall terminate on the Termination Date.

                                  ARTICLE XIII

                    Exclusive Benefit of Parties; Assignment

            This  Agreement is for the exclusive  benefit of the parties  hereto
and their respective  successors and assigns and shall not be deemed to give any
legal or equitable right to any other person except the Sponsor,  the Trust, the
Noteholders and the Insurer. Notwithstanding the foregoing, the Seller covenants
and agrees that the representations  and warranties  contained in this Agreement
and the rights of the Purchaser hereunder are intended to benefit the Trust, the
Noteholders  and the Insurer.  This  Agreement  may not be assigned by any party
hereto without the prior written consent of the other party hereto except to the
Trust.

                                   ARTICLE XIV

                               Amendment; Waivers

            This  Agreement  may be  amended  from time to time only by  written
agreement of Seller and Purchaser with the prior written consent of the Insurer,
which consent shall not be unreasonably withheld.  Any forbearance,  failure, or
delay by a party in exercising any right,  power, or remedy  hereunder shall not
be deemed to be a waiver thereof,  and any single or partial exercise by a party
of any right,  power or remedy hereunder shall not preclude the further exercise
thereof.  Every right,  power and remedy of a party shall continue in full force
and effect until specifically waived by it in writing. No right, power or remedy
shall be exclusive, and each such right, power or remedy shall be cumulative and
in addition to any other right,  power or remedy,  whether  conferred  hereby or
hereafter available at law or in equity or by statute or otherwise.

                                   ARTICLE XV

                            Execution in Counterparts

            This Agreement may be executed in any number of  counterparts,  each
of which shall be deemed an original,  and all of which shall constitute one and
the same instrument.

                                   ARTICLE XVI

                       Effect of Invalidity of Provisions

            In  case  any  one or  more  of the  provisions  contained  in  this
Agreement should be or become invalid,  illegal or unenforceable in any respect,
the validity,  legality and enforceability of the remaining provisions contained
herein shall in no way be affected, prejudiced or disturbed thereby.

                                       25
<PAGE>

                                  ARTICLE XVII

                                  Governing Law

            This Agreement shall be governed by and construed in accordance with
the  laws of the  State of New  York,  without  regard  to its  rules  regarding
conflict of laws (other than sections  5-1401 and 5-1402 of the New York General
Obligations Law).

                                  ARTICLE XVIII

                                     Notices

            Any notices, consents,  directions, demands and other communications
given under this  Agreement  (unless  otherwise  specified  herein)  shall be in
writing and shall be deemed to have been duly given when personally delivered at
or telecopied to the respective  addresses or facsimile numbers, as the case may
be, set forth on the signature page hereof for Seller and Purchaser,  or to such
other address or facsimile number as either party shall give notice to the other
party  pursuant to this  Section.  In the case of the Insurer,  notices shall be
provided to Ambac Assurance Corporation,  Attention: One State Street Plaza, New
York,  New York 10004  (Telephone  No.  (212)  668-0340)  (Telecopier  No. (212)
363-1459).  Notices,  consents,  etc., may also be effected by first class mail,
postage  prepaid sent to the  foregoing  addresses  and will be  effective  upon
receipt by the intended recipient.

                                   ARTICLE XIX

                                Entire Agreement

            This  Agreement,   including  the  Exhibits  and  Schedules  hereto,
contains the entire  agreement of the parties hereto with respect to the subject
matter hereof, and supersedes all prior and  contemporaneous  agreements between
them,  whether  oral or written,  of any nature  whatsoever  with respect to the
subject matter hereof.

                                   ARTICLE XX

                                   Indemnities

            Without limiting any other rights which Purchaser or Seller may have
hereunder  or under  applicable  law,  and in  addition  to any other  indemnity
provided  hereunder,  Seller  hereby  agrees  to  indemnify  Purchaser  and  its
respective  officers,  directors,  agents and employees  (each,  an "INDEMNIFIED
PARTY") from and against any and all Losses  incurred by any of them relating to
or resulting from:

            (1) any  representation or warranty made by Seller (or any officers,
      employees or agents of Seller) under or in connection with this Agreement,
      any  periodic  report  required to be  furnished  thereunder  or any other
      information or document  delivered by Seller pursuant hereto,  which shall
      have been false or incorrect  in any material  respect when made or deemed
      made;

                                       26
<PAGE>

            (2) the  failure by Seller to (a) comply  with any  applicable  law,
      rule or regulation  with respect to any Purchase or (b) perform or observe
      any material obligation or covenant hereunder; or

            (3) the failure by Seller (if so requested by  Purchaser) to execute
      and  properly  file,  or any  delay  in  executing  and  properly  filing,
      financing  statements or other similar  instruments or documents under the
      Uniform Commercial Code of any applicable jurisdiction or other applicable
      laws with respect to the Mortgage Loans.

            Promptly after receipt by an Indemnified Party under this Article XX
of notice of the commencement of any action,  such Indemnified  Party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Article  XX,  notify  the  indemnifying  party in  writing  of the  commencement
thereof;  but the omission so to notify the indemnifying  party will not relieve
it from any liability that it may have to any  Indemnified  Party otherwise than
under  this  Article  XX.  In case  any  such  action  is  brought  against  any
Indemnified  Party and it notifies the  indemnifying  party of the  commencement
thereof,  the indemnifying party will be entitled to participate therein, and to
the extent  that it may elect by written  notice  delivered  to the  Indemnified
Party promptly after receiving the aforesaid notice from such Indemnified Party,
to assume the defense  thereof,  with counsel  satisfactory to such  Indemnified
Party; PROVIDED, HOWEVER, that if the defendants in any such action include both
the Indemnified  Party and the indemnifying  party and the Indemnified  Party or
parties  shall  have  reasonably  concluded  that  there  may be legal  defenses
available to it or them and/or other Indemnified Parties that are different from
or additional to those  available to the  indemnifying  party,  the  Indemnified
Party or parties shall have the right to elect  separate  counsel to assert such
legal  defenses  and to otherwise  participate  in the defense of such action on
behalf of such  Indemnified  Party or parties.  Upon  receipt of notice from the
indemnifying  party to such  Indemnified  Party of its election so to assume the
defense of such action and  approval by the  Indemnified  Party of counsel,  the
indemnifying  party  will  not  be  liable  for  any  legal  or  other  expenses
subsequently  incurred by such Indemnified  Party in connection with the defense
thereof,  unless (i) the Indemnified  Party shall have employed separate counsel
in  connection  with the  assertion  of legal  defenses in  accordance  with the
proviso to the next preceding sentence (it being understood,  however,  that the
indemnifying  party  shall  not be  liable  for the  expenses  of more  than one
separate  counsel,  approved by you in the case of Article XX,  representing the
Indemnified Parties under this Article XX, who are parties to such action), (ii)
the  indemnifying  party shall not have  employed  counsel  satisfactory  to the
Indemnified  Party to represent the  Indemnified  Party within a reasonable time
after notice of commencement of the action or (iii) the  indemnifying  party has
authorized the employment of counsel for the Indemnified Party at the expense of
the  indemnifying  party; and except that, if clause (i) or (iii) is applicable,
such  liability  shall  only be in respect of the  counsel  referred  to in such
clause (i) or (iii).

                                   ARTICLE XXI

                                RESPA Obligations

            Seller agrees to discharge on  Purchaser's  behalf all  obligations,
including,  without limitation, all disclosure obligations,  which Purchaser may
have under the Real Estate  Settlement  Procedures  Act of 1974, as amended,  in
connection with  Purchaser's  purchases of Mortgage Loans  hereunder.  Purchaser
agrees to provide Seller with such information as is reasonably

                                       27
<PAGE>

necessary for Seller to discharge such obligations and hereby appoints Seller as
its  agent in its name  for the  purposes  of,  and  only for the  purposes  of,
performing such obligations. Seller hereby agrees to indemnify Purchaser and its
respective officers, directors, agents and employees from any losses suffered by
any such party in connection with Seller's obligations under this Article XXI.

            Notwithstanding anything to the contrary contained in this Agreement
or any  document  delivered  herewith,  all persons may  disclose to any and all
persons, without limitation of any kind, the federal income tax treatment of the
Notes,  any fact  relevant to  understanding  the federal tax  treatment  of the
Notes, and all materials of any kind (including  opinions or other tax analyses)
relating to such federal tax treatment.

                                  ARTICLE XXII

                                    Survival

            All indemnities and  undertakings of Seller and Purchaser  hereunder
shall survive the termination of this Agreement.

                                  ARTICLE XXIII

                                Right of Set-off

            Upon the  occurrence  of any event or  circumstance  which  requires
Seller to make a payment  hereunder,  Purchaser is hereby  authorized then or at
any time or times  thereafter,  without  notice to Seller (any such notice being
expressly waived by Seller),  to set-off and apply any and all deposits (general
or special,  time or demand,  provisional or final),  at any time held and other
indebtedness  at any time owing by Purchaser to or for the credit or the account
of Seller  against  any and all of the  obligations  of Seller now or  hereafter
existing hereunder, irrespective of whether or not Purchaser shall have made any
demand  hereunder.  Purchaser  agrees  promptly to notify  Seller after any such
set-off and  application  made by  Purchaser;  PROVIDED that the failure to give
such notice shall not affect the validity of such set-off and  application.  The
rights of Purchaser under this Article XXIII are in addition to other rights and
remedies which Purchaser may have.

                                  ARTICLE XXIV

                               Consent to Service

            Each  party  irrevocably  consents  to the  service  of  process  by
registered  or  certified  mail,  postage  prepaid,  to it at its address  given
pursuant to Article XVIII hereof.

                                   ARTICLE XXV

               Submission to Jurisdiction; Waiver of Trial by Jury

            With respect to any claim arising out of this  Agreement  each party
irrevocably submits to the exclusive  jurisdiction of the courts of the State of
New York and the United States

                                       28
<PAGE>

District  Court located in the Borough of Manhattan,  City of New York, and each
party  irrevocably  waives  any  objection  which it may have at any time to the
laying of venue of any suit,  action or  proceeding  arising  out of or relating
hereto  brought in any such  court,  irrevocably  waives any claim that any such
suit,  action or  proceeding  brought in any such court has been  brought in any
inconvenient  forum and  further  irrevocably  waives the right to object,  with
respect to such claim,  suit,  action or  proceeding  brought in any such court,
that such  court  does not have  jurisdiction  over such  party;  PROVIDED  that
service of process is made as set forth in Article XXIV hereof,  or by any other
lawful means. To the extent  permitted by applicable  law,  Purchaser and Seller
each irrevocably  waive all right of trial by jury in any action,  proceeding or
counterclaim  arising out of or in connection  with this Agreement or any matter
arising hereunder.

                                  ARTICLE XXVI

                                  Construction

            The headings in this Agreement are for convenience  only and are not
intended to  influence  its  construction.  References  to  Articles,  Sections,
Schedules and Exhibits in this  Agreement  are to the Articles,  Sections of and
Schedules and Exhibits to this Agreement.  The Schedules and Exhibits are hereby
incorporated  into and form a part of this  Agreement.  In this  Agreement,  the
singular includes the plural, the plural the singular,  the words "and" and "or"
are used in the  conjunctive or disjunctive as the sense and  circumstances  may
require and the word "including" means  "including,  but not limited to." Unless
otherwise stated in this Agreement,  in the computation of a period of time from
a specified  date to a later  specified  date,  the word "from"  means "from and
including" and the words "to" and "until" each means "to but excluding."

                                  ARTICLE XXVII

                               Further Agreements

            The Seller and the  Purchaser  each agree to execute  and deliver to
the other such reasonable and appropriate  additional documents,  instruments or
agreements as may be necessary or appropriate to effectuate the purposes of this
Agreement.

                                       29
<PAGE>

            IN WITNESS  WHEREOF,  the Purchaser and the Seller have caused their
names  to  be  signed  hereto  by  their  respective   officers  thereunto  duly
authorized, all as of the date first written above.

                                            GREENPOINT MORTGAGE SECURITIES INC.,
                                              as Purchaser

                                            100 Wood Hollow Drive
                                            Doorstop # 32210
                                            Novato, California  94945

                                            By: /s/ Nathan Hieter
                                                --------------------------------
                                                Name: Nathan Hieter
                                                Title: Vice President

                                            GREENPOINT MORTGAGE FUNDING, INC.,
                                               as Seller

                                            100 Wood Hollow Drive
                                            Novato, California  94945

                                            By: /s/ Dave Petrini
                                                --------------------------------
                                                Name: Dave Petrini
                                                Title: Executive Vice President

                       [Mortgage Loan Purchase Agreement]

<PAGE>

                                                                       EXHIBIT A

                             FORM OF NON-NEGOTIABLE
                       GREENPOINT MORTGAGE SECURITIES INC.
                                 PROMISSORY NOTE

                                                                    May 19, 2003

EXCEPT TO THE EXTENT PROVIDED IN THE PURCHASE  AGREEMENT REFERRED TO BELOW, THIS
PROMISSORY  NOTE AND ANY INTEREST  REPRESENTED  HEREBY SHALL NOT BE TRANSFERRED,
ASSIGNED, EXCHANGED, CONVEYED, PLEDGED, HYPOTHECATED OR OTHERWISE THE SUBJECT OF
THE GRANT OF A SECURITY INTEREST AND ANY ATTEMPT TO TRANSFER,  ASSIGN, EXCHANGE,
CONVEY, PLEDGE, HYPOTHECATE OR GRANT A SECURITY INTEREST IN THIS PROMISSORY NOTE
OR ANY INTEREST REPRESENTED HEREBY SHALL BE VOID AND OF NO EFFECT.

      For VALUE RECEIVED, the undersigned,  GREENPOINT MORTGAGE SECURITIES INC.,
a Delaware corporation (the "PURCHASER"), promises to pay to GREENPOINT MORTGAGE
FUNDING, INC., a California corporation (the "SELLER"), on the terms and subject
to the  conditions  set forth herein and in the Purchase  Agreement  referred to
below,  the aggregate  unpaid  Purchase Price of all assets  purchased and to be
purchased by the  Purchaser  pursuant to the Purchase  Agreement;  PROVIDED that
such amount  shall in no event exceed  $30,000,000.  Such amount as shown in the
records of the Seller will be rebuttable  presumptive  evidence of the principal
amount owing under this Note.

      1. PURCHASE AND SALE AGREEMENT.  This Note is the Purchaser Note described
in,  and is  subject  to the terms and  conditions  set forth in,  that  certain
Mortgage  Loan  Purchase  Agreement  dated as of May 1, 2003 (as the same may be
amended,  supplemented,  restated or otherwise  modified in accordance  with its
terms,  the  "PURCHASE  AGREEMENT"),  between  the  Seller  and  the  Purchaser.
Reference  is hereby made to the Purchase  Agreement  for a statement of certain
other rights and obligations of the Purchaser and the Seller.

      2.  DEFINITIONS.  Capitalized terms used (but not defined) herein have the
meanings  ascribed  thereto in the  Purchase  Agreement.  In  addition,  as used
herein, the following terms have the following meanings:

            "BANKRUPTCY  PROCEEDINGS" has the meaning set forth in clause (a) of
paragraph 7 hereof.

            "FINAL MATURITY DATE" means the date that falls one year and one day
after the Termination Date.

            "JUNIOR  LIABILITIES"  means all obligations of the Purchaser to the
Seller under this Note and under all similar  notes  issued by the  Purchaser to
the  Seller  in   connection   with  any   previous  or  future   securitization
transactions.

<PAGE>

            "SENIOR  LIABILITIES"  means all obligations of the Purchaser to the
Trust and any other  obligations of the Purchaser arising under or in connection
with the Sale and Servicing Agreement,  howsoever created, arising or evidenced,
whether direct or indirect,  absolute or contingent, now or thereafter existing,
or due or to become due on or before the Final Maturity Date.

            "SUBORDINATION PROVISIONS" means, collectively,  clauses (a) through
(j) of paragraph 7 hereof.

      3.  INTEREST.  Subject to the  Subordination  Provisions  and paragraph 10
hereof, the Purchaser promises to pay interest on the aggregate unpaid principal
amount of this Note  outstanding  on each day,  at a variable  rate equal to the
rate publicly announced by the Indenture Trustee from time to time as its "prime
lending rate."

      4.  INTEREST  PAYMENT  DATES.  Subject  to the  Subordination  Provisions,
paragraph 10 hereof and Section 10.02 of the Purchase  Agreement,  the Purchaser
shall pay accrued  interest on this Note on each  Payment  Date and on the Final
Maturity Date.  The Purchaser  also shall pay accrued  interest on the principal
amount of each prepayment hereof on the date of each such prepayment.

      5. BASIS OF COMPUTATION.  Interest accrued hereunder shall be computed for
the actual number of days elapsed on the basis of a 360-day year.

      6. PRINCIPAL PAYMENT DATES. Subject to the Subordination  Provisions,  any
unpaid  principal of this Note shall be paid on the Final  Maturity Date (or, if
such date is not a Business Day, the next succeeding  Business Day).  Subject to
the  Subordination  Provisions,  paragraph  10 hereof and  Section  10.02 of the
Purchase  Agreement,  the principal  amount of and accrued interest on this Note
may be prepaid on any Business Day without premium or penalty.

      7. SUBORDINATION  PROVISIONS.  The Purchaser covenants and agrees, and the
Seller, by its acceptance of this Note,  likewise covenants and agrees, that the
payment of all Junior  Liabilities is hereby expressly  subordinated in right of
payment to the payment and  performance of the Senior  Liabilities to the extent
and in the manner set forth in the following clauses of this paragraph 7:

            (a) (i) In the event of any  dissolution,  winding up,  liquidation,
readjustment,  reorganization  or other similar event relating to the Purchaser,
whether  voluntary  or  involuntary,   partial  or  complete,   and  whether  in
bankruptcy,  insolvency,  receivership or other similar proceedings,  or upon an
assignment for the benefit of creditors,  or any other marshalling of the assets
and liabilities of the Purchaser or any sale of all or substantially  all of the
assets of the  Purchaser  except  pursuant to the Sale and  Servicing  Agreement
(such proceedings being herein  collectively  called "BANKRUPTCY  PROCEEDINGS"),
and  (ii) on and  after  the  occurrence  of an  Event of  Default,  the  Senior
Liabilities  shall  first be paid and  performed  in full and in cash before the
Seller shall be entitled to receive and to retain any payment or distribution in
respect of the Junior Liabilities.  In order to implement the foregoing: (x) all
payments  and  distributions  of any kind or  character in respect of the Junior
Liabilities  to which the Seller would be entitled shall be made directly to the
Indenture Trustee (for the benefit of the Noteholders, and the Insurer); and

                                      A-2
<PAGE>

(y) the Seller hereby  irrevocably  agrees that the Indenture Trustee (on behalf
of the  Noteholders),  in the name of the Seller or otherwise,  may demand,  sue
for,   collect,   receive  and  receipt  for  any  and  all  such   payments  or
distributions,  and  file,  prove  and vote or  consent  in any such  Bankruptcy
Proceedings  with  respect to any and all claims of the Seller  relating  to the
Junior  Liabilities,  in each case until the Senior  Liabilities shall have been
paid and performed in full and in cash.

            (b)  Following  the  occurrence  of any of the events  described  in
CLAUSE  (a)(i) OR (ii),  in the event that the Seller  receives  any  payment or
other distribution of any kind or character from the Purchaser or from any other
source whatsoever,  in respect of the Junior Liabilities,  such payment or other
distribution  shall be received in trust for the Indenture  Trustee and shall be
turned  over by the  Seller to the  Indenture  Trustee  (for the  benefit of the
Noteholders, and the Insurer) forthwith. All payments and distributions received
by the Indenture  Trustee in respect of this Note, to the extent  received in or
converted into cash, may be applied by the Indenture Trustee (for the benefit of
the  Noteholders and the Insurer) first to the payment of any and all reasonable
expenses  (including  reasonable  attorneys'  fees and legal  expenses)  paid or
incurred by the Indenture  Trustee,  the Noteholders or the Insurer in enforcing
these Subordination Provisions, or in endeavoring to collect or realize upon the
Junior Liabilities,  and any balance thereof shall, solely as between the Seller
and the Noteholders and the Insurer,  be applied by the Indenture Trustee toward
the payment of the Senior  Liabilities  in a manner  determined by the Indenture
Trustee to be in accordance with the Indenture; but as between the Purchaser and
its creditors,  no such payments or distributions of any kind or character shall
be deemed to be payments or distributions in respect of the Senior Liabilities.

            (c)  Upon  the  final  payment  in full  and in  cash of all  Senior
Liabilities,  the Seller  shall be  subrogated  to the  rights of the  Indenture
Trustee  to  receive  payments  or  distributions  from the  Purchaser  that are
applicable to the Senior  Liabilities  until the Junior  Liabilities are paid in
full.

            (d) These  Subordination  Provisions  are  intended  solely  for the
purpose of defining the relative rights of the Seller,  on the one hand, and the
Indenture Trustee (on behalf of Noteholders and the Insurer), on the other hand.
Nothing  contained in these  Subordination  Provisions or elsewhere in this Note
(subject to paragraph 10 hereof) is intended to or shall impair,  as between the
Purchaser,  its creditors  (other than the  Noteholders and the Insurer) and the
Seller, the Purchaser's obligation,  which is unconditional and absolute, to pay
the  Junior  Liabilities  as and when the same shall  become due and  payable in
accordance  with the terms  hereof  (subject to  paragraph 10 hereof) and of the
Purchase  Agreement or to affect the relative rights of the Seller and creditors
of the Purchaser (other than the Noteholders and the Insurer).

            (e) The Seller  shall not,  until the Senior  Liabilities  have been
finally paid and  performed  in full and in cash,  (i) cancel,  waive,  forgive,
transfer or assign,  or commence  legal  proceedings  to enforce or collect,  or
subordinate to any obligation of the Purchaser,  howsoever  created,  arising or
evidenced,  whether  direct  or  indirect,  absolute  or  contingent,  or now or
thereafter   existing,   or  due  or  to  become  due  (other  than  the  Senior
Liabilities),  the Junior  Liabilities  or any rights in respect  hereof or (ii)
convert the Junior Liabilities into an equity interest in the Purchaser, unless,
in the case of each of  CLAUSES  (i) AND  (ii)  above,  the  Seller  shall  have
received the prior written  consent of the Indenture  Trustee and the Insurer in
each case.

                                      A-3
<PAGE>

            (f) The Seller shall not, except without the advance written consent
of the Indenture Trustee and the Insurer commence, or join with any other Person
in commencing, any Bankruptcy Proceedings with respect to the Purchaser until at
least one year and one day have passed since the Termination Date.

            (g) If, at any time,  any of the  payment (in whole or in part) made
with  respect to any Senior  Liabilities  is  rescinded  or must be  restored or
returned by the  Indenture  Trustee or  Noteholders  or the Insurer  (whether in
connection with any Bankruptcy  Proceedings or otherwise),  these  Subordination
Provisions  shall continue to be effective or shall be  reinstated,  as the case
may be, as though such payment had not been made.

            (h) The Indenture Trustee (on behalf of Noteholders and the Insurer)
may, from time to time,  with the consent of the Insurer  without  notice to the
Seller,  and  without  waiving  any  of its  rights  under  these  Subordination
Provisions,  take any or all of the  following  actions:  retain  or  obtain  an
interest in any property to secure any of the Senior Liabilities; (ii) retain or
obtain the primary or  secondary  obligations  of any other  obligor or obligors
with respect to any of the Senior Liabilities;  (iii) extend or renew for one or
more periods (whether or not longer than the original period), alter or exchange
any of the Senior  Liabilities,  or release or compromise  any obligation of any
nature with respect to any of the Senior  Liabilities;  (iv) amend,  supplement,
amend and restate,  or otherwise modify the Sale and Servicing  Agreement or any
related document; and (v) release its security interest in or surrender, release
or permit  any  substitution  or  exchange  for all or any part of any rights or
property securing any of the Senior  Liabilities,  or extend or renew for one or
more  periods  (whether  or not longer  than the  original  period) or  release,
compromise,  alter or exchange any obligations of any nature of any obligor with
respect to any such rights or property.

            (i) The Seller  hereby  waives:  (i) notice of  acceptance  of these
Subordination  Provisions by any of the Noteholders and the Insurer, (ii) notice
of the existence,  creation, non-payment or non-performance of all or any of the
Senior  Liabilities;  and (iii) all  diligence  in  enforcement,  collection  or
protection of, or realization upon, the Senior  Liabilities,  or any thereof, or
any security therefor.

            (j) These  Subordination  Provisions  constitute a continuing  offer
from the  Purchaser to all Persons who become the holders of, or who continue to
hold, Senior Liabilities;  and these  Subordination  Provisions are made for the
benefit of the  Noteholders  and the  Insurer,  and the  Indenture  Trustee  may
proceed to enforce such provisions on behalf of each of such Persons.

      8.  GENERAL.  No failure or delay on the part of the Seller in  exercising
any power or right hereunder  shall operate as a waiver  thereof,  nor shall any
single or  partial  exercise  of any such power or right  preclude  any other or
further  exercise  thereof  or the  exercise  of any other  power or  right.  No
amendment,  modification or waiver of, or consent with respect to, any provision
of this Note  shall in any event be  effective  unless  (a) the same shall be in
writing and signed and delivered by the  Purchaser  and the Seller,  and (b) all
consents required for such actions under the Purchase Agreement and the Sale and
Servicing  Agreement  shall have been received by the appropriate  Persons.  The
rights  and  remedies  granted  hereunder  to  the  Indenture  Trustee  and  the
Noteholders  are subject to exercise as provided in the Purchase  Agreement  and
the Sale and Servicing Agreement.

                                      A-4
<PAGE>

      9.  LIMITATION ON INTEREST.  Notwithstanding  anything in this Note to the
contrary,  the Purchaser shall never be required to pay unearned interest on any
amount outstanding hereunder, and shall never be required to pay interest on the
principal  amount  outstanding  hereunder  at a rate in  excess  of the  maximum
interest rate that may be contracted for, charged or received without  violation
of applicable federal or state law.

      10.  ACKNOWLEDGMENT.  The Seller  acknowledges  and agrees  that it has no
rights to  payment  under  this  Note,  and will not make any claim for  payment
hereunder,  unless funds are available for payment by the Purchaser in excess of
amounts due and payable by it at the time under the  Indenture  and the Sale and
Servicing  Agreement  and under all similar notes issued by the Purchaser to the
Seller in connection with any previous or future securitizations.

      11. NO NEGOTIATION. This Note is not negotiable.

      12.  GOVERNING  LAW. THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
AND  GOVERNED BY THE INTERNAL  LAWS OF THE STATE OF NEW YORK  WITHOUT  REGARD TO
CONFLICT OF LAWS  PRINCIPLES  (OTHER THAN SECTIONS  5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

      13. CAPTIONS. Paragraph captions used in this Note are provided solely for
convenience of reference only and shall not affect the meaning or interpretation
of any provision of this Note.

                                             GREENPOINT MORTGAGE SECURITIES INC.

                                             By:________________________________

                                             Name:______________________________

                                             Title:_____________________________

                                      A-5
<PAGE>

                                                                      SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                        [On file with Indenture Trustee]

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