Document:

Resolutions Approving Amendments

 EXHIBIT 10(29) 
  
 RESOLUTIONS APPROVING AMENDMENTS TO THE 
 AZZ INCORPORATED EMPLOYEE BENEFIT PLAN AND TRUST 
  
 WHEREAS, AZZ incorporated (the “Employer”) has previously adopted the AZZ incorporated Employee Benefit Plan & Trust
effective March 1, 1969; and 
  
 WHEREAS, Employer subsequently adopted the MFS Fund Distributors, Inc. 401(k) Profit
Sharing Plan and Trust (the “Trust”) and related Adoption Agreement adopting for its eligible employees the AZZ incorporated Employee Benefit Plan and Trust (the “Plan”) effective November 1, 1999, such Plan being an amendment
and restatement in its entirety of the previously established plan of the Company effective March 1, 1969, and as subsequently amended and restated effective March 1, 1993; and 
  
 WHEREAS, Article VIII of the Trust permits Employer to amend the choices selected in the Adoption Agreement at any time and to any extent it may deem advisable;

  
 NOW, THEREFORE, BE IT RESOLVED, that Employer amends the Adoption Agreement effective March 1, 2002 in the
following respects: 
  
 (i)  to include as “compensation” for Plan purposes,
compensation not currently includible in a Participant’s reportable income by reason of his or her §401(k) contributions under the Plan; and 
  
 (ii)  to increase the amount which a Participant may contribute under the salary reduction provisions of the plan from 12% to 15% of his or her
compensation; 
  
 and 
  
 RESOLVED FURTHER, that the officers of the Company are authorized and directed to take all such actions as may be necessary or appropriate in order to carry out the intent of these resolutions.<PAGE>

                                                                     Exhibit 4.1

                       FIRST HORIZON ASSET SECURITIES INC.

                                    Depositor

                       FIRST HORIZON HOME LOAN CORPORATION

                                 Master Servicer

                                       and

                              THE BANK OF NEW YORK,

                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT

                          Dated as of September 1, 2002

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

                FIRST HORIZON MORTGAGE PASS-THROUGH TRUST 2002-6

                MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2002-6

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                                 <C>
ARTICLE I DEFINITIONS ...........................................................................................    5

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES .........................................   33
   SECTION 2.1  Conveyance of Mortgage Loans ....................................................................   33
   SECTION 2.2  Acceptance by Trustee of the Mortgage Loans .....................................................   37
   SECTION 2.3  Representations, Warranties and Covenants of the Seller and Master Servicer .....................   39
   SECTION 2.4  Representations and Warranties of the Depositor as to the Mortgage Loans ........................   41
   SECTION 2.5  Delivery of Opinion of Counsel in Connection with Substitutions .................................   41
   SECTION 2.6  Execution and Delivery of Certificates ..........................................................   42
   SECTION 2.7  REMIC Matters ...................................................................................   42
   SECTION 2.8  Covenants of the Master Servicer ................................................................   42

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS ......................................................   43
   SECTION 3.1  Master Servicer to Service Mortgage Loans .......................................................   43
   SECTION 3.2  Subservicing; Enforcement of the Obligations of Servicers .......................................   44
   SECTION 3.3  Rights of the Depositor and the Trustee in Respect of the Master Servicer .......................   44
   SECTION 3.4  Trustee to Act as Master Servicer ...............................................................   45
   SECTION 3.5  Collection of Mortgage Loan Payments; Certificate Account; Distribution Account .................   45
   SECTION 3.6  Collection of Taxes, Assessments and Similar Items; Escrow Accounts .............................   48
   SECTION 3.7  Access to Certain Documentation and Information Regarding the Mortgage Loans ....................   49
   SECTION 3.8  Permitted Withdrawals from the Certificate Account and Distribution Account .....................   49
   SECTION 3.9  Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies ......................   51
   SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption Agreements .......................................   53
   SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans .................   54
   SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files .................................................   56
   SECTION 3.13 Documents Records and Funds in Possession of Master Servicer to be Held for the Trustee .........   57
   SECTION 3.14 Master Servicing Compensation ...................................................................   58
   SECTION 3.15 Access to Certain Documentation .................................................................   58
   SECTION 3.16 Annual Statement as to Compliance ...............................................................   58
   SECTION 3.17 Annual Independent Public Accountants' Servicing Statement; Financial Statements ................   59
   SECTION 3.18 Errors and Omissions Insurance; Fidelity Bonds ..................................................   59

ARTICLE IV DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER ....................................................   60
   SECTION 4.1  Advances ........................................................................................   60
   SECTION 4.2  Priorities of Distribution ......................................................................   60
   SECTION 4.3  Method of Distribution ..........................................................................   66
</TABLE>

                                       i

<PAGE>

<TABLE>
   <S>                                                                                                              <C>
   SECTION 4.4  Allocation of Losses ...........................................................................    67
   SECTION 4.5  Reserved .......................................................................................    69
   SECTION 4.6  Monthly Statements to Certificateholders .......................................................    69
   SECTION 4.7  Reserved .......................................................................................    70

ARTICLE V THE CERTIFICATES .....................................................................................    71
   SECTION 5.1  The Certificates ...............................................................................    71
   SECTION 5.2  Certificate Register; Registration of Transfer and Exchange of Certificates ....................    71
   SECTION 5.3  Mutilated, Destroyed, Lost or Stolen Certificates ..............................................    76
   SECTION 5.4  Persons Deemed Owners ..........................................................................    76
   SECTION 5.5  Access to List of Certificateholders' Names and Addresses ......................................    77
   SECTION 5.6  Maintenance of Office or Agency ................................................................    77

ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER ...............................................................    77
   SECTION 6.1  Respective Liabilities of the Depositor and the Master Servicer ................................    77
   SECTION 6.2  Merger or Consolidation of the Depositor or the Master Servicer ................................    77
   SECTION 6.3  Limitation on Liability of the Depositor, the Seller, the Master Servicer and Others ...........    78
   SECTION 6.4  Limitation on Resignation of Master Servicer ...................................................    78

ARTICLE VII DEFAULT ............................................................................................    79
   SECTION 7.1  Events of Default ..............................................................................    79
   SECTION 7.2  Trustee to Act; Appointment of Successor .......................................................    80
   SECTION 7.3  Notification to Certificateholders .............................................................    81

ARTICLE VIII CONCERNING THE TRUSTEE ............................................................................    82
   SECTION 8.1  Duties of Trustee ..............................................................................    82
   SECTION 8.2  Certain Matters Affecting the Trustee ..........................................................    83
   SECTION 8.3  Trustee Not Liable for Certificates or Mortgage Loans ..........................................    85
   SECTION 8.4  Trustee May Own Certificates ...................................................................    85
   SECTION 8.5  Trustee's Fees and Expenses ....................................................................    85
   SECTION 8.6  Eligibility Requirements for Trustee ...........................................................    86
   SECTION 8.7  Resignation and Removal of Trustee .............................................................    86
   SECTION 8.8  Successor Trustee ..............................................................................    87
   SECTION 8.9  Merger or Consolidation of Trustee .............................................................    88
   SECTION 8.10 Appointment of Co-Trustee or Separate Trustee ..................................................    88
   SECTION 8.11 Tax Matters ....................................................................................    89
   SECTION 8.12 Periodic Filings ...............................................................................    91

ARTICLE IX TERMINATION .........................................................................................    91
   SECTION 9.1  Termination upon Liquidation or Purchase of all Mortgage Loans .................................    91
   SECTION 9.2  Final Distribution on the Certificates .........................................................    92
   SECTION 9.3  Additional Termination Requirements ............................................................    93

ARTICLE X [RESERVED] ...........................................................................................    94

ARTICLE XI MISCELLANEOUS PROVISIONS ............................................................................    94
</TABLE>

                                       ii

<PAGE>

<TABLE>
   <S>                                                                                                          <C>
   SECTION 11.1  Amendment....................................................................................  94
   SECTION 11.2  Recordation of Agreement; Counterparts.......................................................  95
   SECTION 11.3  Governing Law................................................................................  96
   SECTION 11.4  Intention of Parties.........................................................................  96
   SECTION 11.5  Notices......................................................................................  96
   SECTION 11.6  Severability of Provisions...................................................................  97
   SECTION 11.7  Assignment...................................................................................  98
   SECTION 11.8  Limitation on Rights of Certificateholders...................................................  98
   SECTION 11.9  Inspection and Audit Rights..................................................................  98
   SECTION 11.10 Certificates Nonassessable and Fully Paid....................................................  99
   SECTION 11.11 Limitations on Actions; No Proceedings.......................................................  99
   SECTION 11.12 Acknowledgment of Seller.....................................................................  99
</TABLE>

<TABLE>
<CAPTION>
                                    SCHEDULES
<S>                                                                                                       <C>

Schedule I:           Mortgage Loan Schedule                                                                S-I-1
Schedule II:          Representations and Warranties of the Master Servicer                                S-II-1
Schedule III:         Form of Monthly Master Servicer Report                                              S-III-1

                                    EXHIBITS

Exhibit A:            Form of Senior Certificate                                                               A-1
Exhibit B:            Form of Subordinated Certificate                                                         B-1
Exhibit C:            Form of Residual Certificate                                                             C-1
Exhibit D:            Form of Reverse of Certificates                                                          D-1
Exhibit E:            Form of Initial Certification                                                            E-1
Exhibit F:            Form of Delay Delivery Certification                                                     F-1
Exhibit G:            Form of Final Certification of Custodian                                                 G-1
Exhibit H:            Transfer Affidavit                                                                       H-1
Exhibit I:            Form of Transferor Certificate                                                           I-1
Exhibit J:            Form of Investment Letter [Non-Rule 144A]                                                J-1
Exhibit K:            Form of Rule 144A Letter                                                                 K-1
Exhibit L:            Request for Release (for Trustee)                                                        L-1
Exhibit M:            Request for Release (Mortgage Loan)                                                      M-1
</TABLE>

                                      iii

<PAGE>

         THIS POOLING AND SERVICING AGREEMENT, dated as of September 1, 2002,
among FIRST HORIZON ASSET SECURITIES INC., a Delaware corporation, as depositor
(the "Depositor"), FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation, as
master servicer (the "Master Servicer"), and THE BANK OF NEW YORK, a banking
corporation organized under the laws of the State of New York, as trustee (the
"Trustee").

                                WITNESSETH THAT

         In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

                              PRELIMINARY STATEMENT

         The Depositor is the owner of the Trust Fund that is hereby conveyed to
the Trustee in return for the Certificates. The Trust Fund for federal income
tax purposes will consist of a single REMIC. The Certificates will represent the
entire beneficial ownership interest in the Trust Fund. The Regular Certificates
will represent "regular interests" in the REMIC. The Residual Certificates (also
referred to as the Class I-A-R Certificates) will represent the sole class of
residual interests in the REMIC, as described in Section 2.7. The "latest
possible maturity date" for federal income tax purposes of all interests created
hereby will be the Latest Possible Maturity Date.

         The following table sets forth characteristics of the Certificates,
together with the minimum denominations and integral multiples in excess thereof
in which such Classes shall be issuable (except that one Certificate of each
Class of Certificates may be issued in a different amount and, in addition, one
Residual Certificate representing the Tax Matters Person Certificate may be
issued in a different amount):

                  [Remainder of Page Intentionally Left Blank]

                                       1

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                              Initial Class                                                     Integral Multiples
   Class Designation       Certificate Balance     Pass Through Rate    Minimum Denomination    in Excess Minimum
<S>                       <C>                      <C>                  <C>                    <C>
--------------------------------------------------------------------------------------------------------------------
Class I-A-1               $     11,750,000.00            6.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-2               $      5,000,000.00            6.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-3-I             $     25,000,000.00            5.500%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-3-II            $     12,500,000.00            7.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-4               $      3,393,000.00            6.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-5               $     25,000,000.00            7.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-6               $    138,062,000.00            6.500%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-7               $      6,155,007.00            5.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-8               $     82,875,893.00            5.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-9               $      5,000,000.00            5.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-V-1             $      5,388,800.00            5.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-V-2             $     14,255,200.00            6.250%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-V-Z             $      7,300,000.00            6.250%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-Z               $     24,159,100.00            6.000%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class I-A-R               $            100.00            5.000%         $             100                   N/A
--------------------------------------------------------------------------------------------------------------------
Class II-A-1              $     97,810,000.00            5.750%         $          25,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-1                 $      5,944,000.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-2                 $      2,140,000.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-3                 $      1,664,000.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-4                 $        713,000.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-5                 $        713,000.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
Class B-6                 $        714,405.00         Variable/(1)/     $         100,000      $          1,000
--------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) The Pass-Through Rate on each Class of Subordinated Certificates is variable
and will be equal to the weighted average of the Designated Mortgage Pool Rates,
weighted on the basis of the Group Subordinate Amount for each Mortgage Pool.

                                       2

<PAGE>

<TABLE>
<S>                                           <C>
Accretion Directed Certificates...........    Class I-A-V-1, Class I-A-V-2 and Class I-A-V-Z Certificates
Accrual Certificates .....................    Class I-A-Z and Class I-A-V-Z Certificates.
Accrual Components .......................    None.
Book-Entry Certificates ..................    All Classes of Certificates other than the Physical Certificates.
Certificate Group ........................    With respect to Pool I, the Group I Senior Certificates, and
                                              with respect to Pool II, the Group II Senior Certificates. The
                                              Subordinated Certificates correspond to both Mortgage Pools.
Component Certificates ...................    None.
Components ...............................    For purposes of calculating distributions, the Component
                                              Certificates will be comprised of multiple payment
                                              components having the designations, Initial Component
                                              Balances and Pass-Through Rates set forth below:
</TABLE>

<TABLE>
<CAPTION>
                                                                      Initial
                                                                     Component
                                              Designation             Balance          Pass-Through Rate
                                              -----------            ----------        -----------------
                                                  N/A                   N/A                   N/A
<S>                                           <C>                    <C>               <C>
Delay Certificates .......................    All interest-bearing Classes of Certificates other than the Non-
                                              Delay Certificates, if any.
ERISA-Restricted Certificates ............    The Residual Certificates and the Private Certificates.
Floating Rate Certificates ...............    None.
Group I Senior Certificates ..............    The Class I-A-1, Class I-A-2, Class I-A-3-I, Class I-A-3-II,
                                              Class I-A-4, Class I-A-5, Class I-A-6, Class I-A-7, Class I-A-8,
                                              Class I-A-9, Class I-A-V-1, Class I-A-V-2, Class I-A-V-Z, Class
                                              I-A-Z and Class I-A-R Certificates.
Group II Senior Certificates .............    The Class II-A-1 Certificates.
Insured Retail Certificates ..............    None.
Interest Only Certificates ...............    None.
Inverse Floating Rate Certificates .......    None.
COFI Certificates ........................    None.
LIBOR Certificates .......................    None.
Non-Delay Certificates ...................    None.
Notional Principal Amount Certificates ...    None.
Offered Certificates .....................    All Classes of Certificates other than the Private Certificates.
Physical Certificates ....................    The Private Certificates and the Residual Certificates.
Planned Principal Classes ................    The Primary Planned Principal Classes and the Secondary Planned Principal
                                              Classes.
</TABLE>

                                       3

<PAGE>

<TABLE>
<S>                                        <C>
Primary Planned Principal Classes ...      None.
Principal Only Certificates .........      None.
Private Certificates ................      The Class B-4, Class B-5 and Class B-6 Certificates.
Rating Agencies .....................      S&P and Moody's.
Regular Certificates ................      All Classes of Certificates, other than the Residual Certificates.
Residual Certificates ...............      The Class I-A-R Certificates.
Retail Certificates .................      None.
Scheduled Principal Classes .........      None.
Secondary Planned Principal Class ...      None.
Senior Certificates .................      The Group I Senior Certificates and the Group II Senior Certificates,
                                           collectively.
Subordinated Certificates ...........      The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6
                                           Certificates.
Support Classes .....................      None.
Targeted Principal Classes ..........      None.
Underwriters ........................      FTN Financial Capital Markets, a division of First Tennessee Bank
                                           National Association, and J.P. Morgan Securities Inc.
</TABLE>

         With respect to any of the foregoing designations as to which the
corresponding reference is "None," all defined terms and provisions herein
relating solely to such designations shall be of no force or effect, and any
calculations herein incorporating references to such designations shall be
interpreted without reference to such designations and amounts. Defined terms
and provisions herein relating to statistical rating agencies not designated
above as Rating Agencies shall be of no force or effect.

                                       4

<PAGE>
                                   ARTICLE I
                                   DEFINITIONS

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

         Accretion Directed Certificates: As described in the Preliminary
Statement.

         Accretion Termination Date: For each Class of Accrual Certificates, the
earlier of: (x) the Cross-over Date, and (y)(i) with respect to the Class
I-A-V-Z Certificates, the Distribution Date upon which the Class Certificate
Balance of the Class I-A-V-2 Certificates has been reduced to zero and (ii) with
respect to the Class I-A-Z Certificates, the Distribution Date upon which the
Class Certificate Balances of the Class I-A-V-1, Class I-A-V-2 and Class I-A-V-Z
Certificates have been reduced to zero.

         Accrual Amount: For each Class of Accrual Certificates and each
Distribution Date through the related Accretion Termination Date, an amount
equal to the sum of (a) any amounts allocable to Accrued Certificate Interest in
respect of such class of Accrual Certificates in accordance with Section
4.2(a)(i), and (b) any available amounts allocable to such Class of Accrual
Certificates in accordance with Section 4.2(a)(ii).

         Accrual Certificates:  As described in the Preliminary Statement.

         Accrued Certificate Interest: For any Class of Certificates for any
Distribution Date, the interest accrued during the related Interest Accrual
Period at the applicable Pass-Through Rate on the Class Certificate Balance of
such Class of Certificates immediately prior to such Distribution Date, less
such Class' share of any Net Interest Shortfall, allocable among the outstanding
Classes of Senior Certificates of the related Certificate Group based on the
Accrued Certificate Interest otherwise distributable thereto, and allocable to
the Subordinated Certificates based on interest accrued on their related
Apportioned Principal Balances.

         Adjusted Mortgage Rate: As to each Mortgage Loan, and at any time, the
per annum rate equal to the Mortgage Rate less the Master Servicing Fee Rate.

         Adjusted Net Mortgage Rate: As to each Mortgage Loan, and at any time,
the per annum rate equal to the Mortgage Rate less the related Expense Rate.

         Advance: The payment required to be made by the Master Servicer with
respect to any Distribution Date pursuant to Section 4.1, the amount of any such
payment being equal to the aggregate of payments of principal and interest (net
of the Master Servicing Fee and net of any net income in the case of any REO
Property) on the Mortgage Loans that were due on the related Due Date and not
received as of the close of business on the related Determination Date, less the
aggregate amount of any such delinquent payments that the Master Servicer has
determined would constitute a Nonrecoverable Advance if advanced.

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

                                       5

<PAGE>

         Allocable Share: With respect to any Class of Subordinated Certificates
on any Distribution Date, such Class' pro rata share (based on the Class
Certificate Balance of each Class entitled thereto) of each of the components of
the Subordinated Optimal Principal Amount for both Mortgage Pools; provided,
that, except as provided in this Agreement, no Subordinated Certificates (other
than the Class of Subordinated Certificates with the highest priority of
distribution) shall be entitled on any Distribution Date to receive
distributions pursuant to clauses (2), (3) and (5) of the definition of
Subordinated Optimal Principal Amount unless the Class Prepayment Distribution
Trigger for such Class is satisfied for such Distribution Date.

         Amount Held for Future Distribution: As to any Distribution Date, the
aggregate amount held in the applicable subaccount of the Certificate Account at
the close of business on the related Determination Date on account of (i)
Principal Prepayments on the related Mortgage Pool received after the related
Prepayment Period and Liquidation Proceeds in the related Mortgage Pool received
in the month of such Distribution Date and (ii) all Scheduled Payments in the
related Mortgage Pool due after the related Due Date.

         Apportioned Principal Balance: For any Class of Subordinated
Certificates and any Distribution Date will equal the Class Certificate Balance
of that Class immediately prior to that Distribution Date multiplied by a
fraction, the numerator of which is the applicable Group Subordinate Amount for
that date and the denominator of which is the sum of the Group Subordinate
Amounts for that date.

         Appraised Value: With respect to any Mortgage Loan, the Appraised Value
of the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; (ii) with respect to a
Refinancing Mortgage Loan other than a Streamlined Documentation Mortgage Loan,
the value of the Mortgaged Property based upon the appraisal made at the time of
the origination of such Refinancing Mortgage Loan; and (iii) with respect to a
Streamlined Documentation Mortgage Loan, (a) if the loan-to-value ratio with
respect to the Original Mortgage Loan at the time of the origination thereof was
90% or less, the value of the Mortgaged Property based upon the appraisal made
at the time of the origination of the Original Mortgage Loan and (b) if the
loan-to-value ratio with respect to the Original Mortgage Loan at the time of
the origination thereof was greater than 90%, the value of the Mortgaged
Property based upon the appraisal (which may be a drive-by appraisal) made at
the time of the origination of such Streamlined Documentation Mortgage Loan.

         Available Funds: For each Mortgage Pool, with respect to any
Distribution Date, an amount equal to the sum of:

           .      all scheduled installments of interest, net of the Master
                  Servicing Fee, the Trustee Fee and any amounts due to First
                  Horizon in respect of the Retained Yield on such Distribution
                  Date, and all scheduled installments of principal due in
                  respect of the Mortgage Loans in such Mortgage Pool on the Due
                  Date in the month in which the Distribution Date occurs and
                  received before the related Determination Date, together with
                  any Advances in respect thereof;

                                       6

<PAGE>
            .     all Insurance Proceeds and all Liquidation Proceeds received
                  in respect of the Mortgage Loans in such Mortgage Pool during
                  the calendar month before the Distribution Date, which in each
                  case is net of unreimbursed expenses incurred in connection
                  with a liquidation or foreclosure and unreimbursed Advances,
                  if any;

            .     all Principal Prepayments received in respect of the Mortgage
                  Loans in such Mortgage Pool during the related Prepayment
                  Period, plus interest received thereon, net of any Prepayment
                  Interest Excess;

            .     any Compensating Interest in respect of Principal Prepayments
                  in Full received in respect of the Mortgage Loans in such
                  Mortgage Pool during the related Prepayment Period; and

            .     any Substitution Adjustment Amount or the Purchase Price for
                  any Deleted Mortgage Loan in the related Mortgage Pool or a
                  Mortgage Loan in the related Mortgage Pool repurchased by the
                  Seller or the Master Servicer as of such Distribution Date,
                  reduced by amounts in reimbursement for Advances previously
                  made and other amounts that the Master Servicer is entitled to
                  be reimbursed for out of the Certificate Account pursuant to
                  this Agreement.

         Bankruptcy Code: The United States Bankruptcy Reform Act of 1978, as
amended.

         Bankruptcy Coverage Termination Date: The date on which the Bankruptcy
Loss Coverage Amount is reduced to zero.

         Bankruptcy Loss: With respect to any Mortgage Loan, a Deficient
Valuation or Debt Service Reduction; provided, however, that a Bankruptcy Loss
shall not be deemed a Bankruptcy Loss hereunder so long as the Master Servicer
has notified the Trustee in writing that the Master Servicer is diligently
pursuing any remedies that may exist in connection with the related Mortgage
Loan and either (A) the related Mortgage Loan is not in default with regard to
payments due thereunder or (B) delinquent payments of principal and interest
under the related Mortgage Loan and any related escrow payments in respect of
such Mortgage Loan are being advanced on a current basis by the Master Servicer,
in either case without giving effect to any Debt Service Reduction or Deficient
Valuation.

         Bankruptcy Loss Coverage Amount: As of any Determination Date, the
Bankruptcy Loss Coverage Amount shall equal the Initial Bankruptcy Coverage
Amount as reduced by (i) the aggregate amount of Bankruptcy Losses allocated to
the Certificates since the Cut-off Date and (ii) any permissible reductions in
the Bankruptcy Loss Coverage Amount as evidenced by a letter of each Rating
Agency to the Trustee to the effect that any such reduction will not result in a
downgrading of the then current ratings assigned to the Classes of Certificates
rated by it.

         Blanket Mortgage: The mortgage or mortgages encumbering the Cooperative
Property.

         Book-Entry Certificates:  As specified in the Preliminary Statement.

         Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of Dallas, or the State of Texas
or the city in which the Corporate

                                       7

<PAGE>

         Trust Office of the Trustee is located are authorized or obligated by
law or executive order to be closed.

         Certificate: Any one of the Certificates executed by the Trustee in
substantially the forms attached hereto as exhibits.

         Certificate Account: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.5 with a depository
institution in the name of the Master Servicer for the benefit of the Trustee on
behalf of Certificateholders and designated "First Horizon Home Loan Corporation
in trust for the registered holders of First Horizon Asset Securities Inc.
Mortgage Pass-Through Certificates, Series 2002-6."

         Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of such Book-Entry Certificate.

         Certificate Principal Balance: With respect to any Certificate and as
of any Distribution Date, the Certificate Principal Balance on the date of the
initial issuance of such Certificate,

(1)      as reduced by:

         (a) all amounts distributed on previous Distribution Dates on such
         Certificate on account of principal,

         (b) the principal portion of all Realized Losses previously allocated
         to such Certificate, and

         (c) in the case of a Subordinated Certificate, such Certificate's pro
         rata share, if any, of the Subordinated Certificate Writedown Amount
         for previous Distribution Dates; and

(2)      in the case of the Accrual Certificates, as increased by any Accrual
         Amount therefor on such previous Distribution Dates.

         Certificate Register: The register maintained pursuant to Section 5.2
         hereof.

         Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Seller or any affiliate or agent of the Depositor
or the Seller shall be deemed not to be Outstanding and the Percentage Interest
evidenced thereby shall not be taken into account in determining whether the
requisite amount of Percentage Interests necessary to effect such consent has
been obtained; provided, however, that if any such Person (including the
Depositor) owns 100% of the Percentage Interests evidenced by a Class of
Certificates, such Certificates shall be deemed to be Outstanding for purposes
of any provision hereof that requires the consent of the Holders of Certificates
of a particular Class as a condition to the taking of any action hereunder. The
Trustee is entitled to rely conclusively on a certification of the Depositor or
any affiliate of the Depositor in determining which Certificates are registered
in the name of an affiliate of the Depositor.

                                       8

<PAGE>
         Class: All Certificates bearing the same class designation as set forth
in the Preliminary Statement.

         Class Certificate Balance: With respect to any Class of Certificates
and as of any Distribution Date, the aggregate of the Certificate Principal
Balances of all Certificates of such Class as of such date.

         Class Prepayment Distribution Trigger: For a Class of Subordinated
Certificates (other than the Class of Subordinated Certificates with the highest
priority of distribution), a trigger that is satisfied on any Distribution Date
on which a fraction (expressed as a percentage), the numerator of which is the
aggregate Class Certificate Balance of such Class and each Class subordinate
thereto, if any, and the denominator of which is the aggregate Pool Principal
Balance for both Mortgage Pools with respect to such Distribution Date, equals
or exceeds such percentage calculated as of the Closing Date.

         Closing Date:  September 30, 2002.

         Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

         COFI:  Not applicable.

         COFI Certificates:  Not applicable.

         Compensating Interest: As to any Distribution Date and any Principal
Prepayment in respect of a Mortgage Loan that is received during the period from
the sixteenth day of the month prior to the month of such Distribution Date
through the last day of such month, an additional payment to the related
Mortgage Pool made by the Master Servicer, to the extent funds are available
from the Master Servicing Fee, equal to the amount of interest at the Adjusted
Net Mortgage Rate for that Mortgage Loan from the date of the prepayment to the
related Due Date; provided that the aggregate of all such payments as to the
Mortgage Loans in a Mortgage Pool shall not exceed 0.0083% of the Pool Principal
Balance of such Mortgage Pool as of the related Determination Date, and provided
further that if a partial Principal Prepayment is applied after the first of the
month following the month of receipt, no additional payment is required for such
Principal Prepayment.

         Component:  Not applicable.

         Component Balance:  Not applicable.

         Component Certificates:  Not applicable.

         Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

         Coop Shares:  Shares issued by a Cooperative Corporation.

                                       9

<PAGE>

         Cooperative Loan: Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

         Cooperative Unit: A single family dwelling located in a Cooperative
Property.

         Corporate Trust Office: The designated office of the Trustee in the
State of New York at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at The Bank of New York, 101
Barclay Street, 8W, New York, New York 10286 (Attn: Corporate Trust
Mortgage-Backed Securities Group, First Horizon Asset Securities Inc. Series
2002-6), facsimile no. (212) 815-3986, and which is the address to which notices
to and correspondence with the Trustee should be directed.

         Corresponding Classes of Certificates:  Not applicable.

         Cross-over Date: The Distribution Date on which the respective Class
Certificate Balances of each Class of Subordinated Certificates have been
reduced to zero.

         Custodial Agreement: The Custodial Agreement dated as of September 30,
2002 by and among the Trustee, the Master Servicer and the Custodian.

         Custodian: LaSalle Bank National Association, a national banking
association, and its successors and assigns, as custodian under the Custodial
Agreement.

         Cut-off Date:  September 1, 2002.

         Cut-off Date Pool Principal Balance: With respect to Pool I,
$375,219,216, and with respect to Pool II, $100,318,289.

         Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

         Defective Mortgage Loan: Any Mortgage Loan which is required to be
repurchased pursuant to Section 2.2 or 2.3.

         Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then-outstanding indebtedness under the Mortgage Loan, or any reduction
in the amount of principal to be paid in connection with any Scheduled Payment
that results in a permanent forgiveness of principal,

                                       10

<PAGE>

which valuation or reduction results from an order of such court which is final
and non-appealable in a proceeding under the Bankruptcy Code.

     Definitive Certificates: Any Certificate evidenced by a Physical
Certificate and any Certificate issued in lieu of a Book-Entry Certificate
pursuant to Section 5.2(e).

     Delay Certificates: As specified in the Preliminary Statement.

     Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to Trustee on the Closing
Date. The number of Delay Delivery Mortgage Loans shall not exceed 25% of the
aggregate number of Mortgage Loans as of the Closing Date.

     Deleted Mortgage Loan: As defined in Section 2.3(b) hereof.

     Denomination: With respect to each Certificate, the amount set forth on the
face thereof as the "Initial Certificate Balance of this Certificate" or the
Percentage Interest appearing on the face thereof.

     Depositor: First Horizon Asset Securities Inc., a Delaware corporation, or
its successor in interest.

     Depository: The initial Depository shall be The Depository Trust Company,
the nominee of which is CEDE & Co., as the registered Holder of the Book-Entry
Certificates. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of
New York.

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

     Designated Mortgage Pool Rates: With respect to Pool I, 6.00%, and with
respect to Pool II, 5.75%.

     Determination Date: As to any Distribution Date, the earlier of (i) the
third Business Day after the 15th day of each month, and (ii) the second
Business Day prior to the related Distribution Date.

     Discount Mortgage Loan: Any Mortgage Loan in Pool I with a Mortgage Rate of
less than 6.25% per annum and any Mortgage Loan in Pool II with a Mortgage Rate
of less than 6.00% per annum.

     Distribution Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.5 in the name of the Trustee for the
benefit of the Certificateholders and designated "The Bank of New York, in trust
for registered Holders of First Horizon Asset Securities Inc. Mortgage
Pass-Through Certificates, Series 2002-6." Funds in the Distribution Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

                                       11

<PAGE>

     Distribution Account Deposit Date: As to any Distribution Date, 1:30 p.m.
Central time on the Business Day immediately preceding such Distribution Date.

     Distribution Date: The 25th day of each calendar month after the initial
issuance of the Certificates, or if such 25th day is not a Business Day, the
next succeeding Business Day, commencing in October 2002.

     Due Date: With respect to any Distribution Date, the first day of the month
in which the related Distribution Date occurs.

     Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the debt obligations of such holding company) have the highest
short-term ratings of each Rating Agency at the time any amounts are held on
deposit therein, or (ii) an account or accounts in a depository institution or
trust company in which such accounts are insured by the FDIC or the SAIF (to the
limits established by the FDIC or the SAIF, as applicable) and the uninsured
deposits in which accounts are otherwise secured such that, as evidenced by an
Opinion of Counsel delivered to the Trustee and to each Rating Agency, the
Certificateholders have a claim with respect to the funds in such account or a
perfected first priority security interest against any collateral (which shall
be limited to Permitted Investments) securing such funds that is superior to
claims of any other depositors or creditors of the depository institution or
trust company in which such account is maintained, or (iii) a trust account or
accounts maintained with (a) the trust department of a federal or state
chartered depository institution or (b) a trust company, acting in its fiduciary
capacity or (iv) any other account acceptable to each Rating Agency. Eligible
Accounts may bear interest, and may include, if otherwise qualified under this
definition, accounts maintained with the Trustee.

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

     ERISA-Restricted Certificate: As specified in the Preliminary Statement.

     Escrow Account: The Eligible Account or Accounts established and maintained
pursuant to Section 3.6(a) hereof.

     Event of Default: As defined in Section 7.1 hereof.

     Excess Loss: With respect to a Mortgage Pool, the amount of any (i) Fraud
Loss realized after the Fraud Loss Coverage Termination Date, (ii) Special
Hazard Loss realized after the Special Hazard Coverage Termination Date or (iii)
Deficient Valuation realized after the Bankruptcy Coverage Termination Date.

     Excess Proceeds: With respect to any Liquidated Mortgage Loan, the amount,
if any, by which the sum of any Liquidation Proceeds of such Mortgage Loan
received in the calendar month in which such Mortgage Loan became a Liquidated
Mortgage Loan, net of any amounts previously reimbursed to the Master Servicer
as Nonrecoverable Advance(s) with respect to such Mortgage Loan pursuant to
Section 3.8(a)(iii), exceeds (i) the unpaid principal balance of such Liquidated
Mortgage Loan as of the Due Date in the month in which such Mortgage Loan

                                       12

<PAGE>

became a Liquidated Mortgage Loan plus (ii) accrued interest at the Mortgage
Rate from the Due Date as to which interest was last paid or advanced (and not
reimbursed) to Certificateholders up to the Due Date applicable to the
Distribution Date immediately following the calendar month during which such
liquidation occurred.

     Expense Rate: As to each Mortgage Loan, the sum of the related Master
Servicing Fee Rate and the Trustee Fee Rate.

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

     FHLMC: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.

     FIRREA: The Financial Institutions Reform, Recovery, and Enforcement Act of
1989.

     First Horizon: First Horizon Home Loan Corporation, a Kansas corporation
and an indirect wholly owned subsidiary of First Tennessee National Corporation,
a Tennessee corporation.

     Fitch: Fitch Ratings or any successor thereto. If Fitch is designated as a
Rating Agency in the Preliminary Statement, for purposes of Section 11.5(b) the
address for notices to Fitch shall be Fitch, Inc., One State Street Plaza, New
York, New York 10004, Attention: Residential Mortgage Surveillance Group, or
such other address as Fitch may hereafter furnish to the Depositor and the
Master Servicer.

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

     Fraud Loan: A Liquidated Mortgage Loan as to which a Fraud Loss has
occurred.

     Fraud Losses: Realized Losses on Mortgage Loans as to which a loss is
sustained by reason of a default arising from fraud, dishonesty or
misrepresentation in connection with the related Mortgage Loan, including a loss
by reason of the denial of coverage under any related Primary Insurance Policy
because of such fraud, dishonesty or misrepresentation.

     Fraud Loss Coverage Amount: As of the Closing Date, $9,510,750. As of any
Distribution Date from the first anniversary of the Cut-off Date and prior to
the fifth anniversary of the Cut-off Date, the Fraud Loss Coverage Amount will
equal $4,755,375 minus the aggregate amount of Fraud Losses that would have been
allocated to the Subordinated Certificates in the absence of the Loss Allocation
Limitation since the Cut-off Date. As of any Distribution Date on or after the
earlier of the Cross-over Date or the fifth anniversary of the Cut-off Date, the
Fraud Loss Coverage Amount shall be zero.

     Fraud Loss Coverage Termination Date: The point in time at which the Fraud
Loss Coverage Amount is reduced to zero.

                                       13

<PAGE>

     Group I Senior Certificates: As specified in the Preliminary Statement.

     Group II Senior Certificates: As specified in the Preliminary Statement.

     Group Subordinate Amount: For each Mortgage Pool and any Distribution Date
is the excess of the Pool Principal Balance of that Mortgage Pool for the
immediately preceding Distribution Date over the aggregate Class Certificate
Balance of the Senior Certificates of the related Certificate Group immediately
prior to that Distribution Date.

     Index: Not applicable.

     Indirect Participant: A broker, dealer, bank or other financial institution
or other Person that clears through or maintains a custodial relationship with a
Depository Participant.

     Initial Bankruptcy Coverage Amount: $100,000.

     Initial Component Balance: Not applicable.

     Insurance Policy: With respect to any Mortgage Loan included in the Trust
Fund, any insurance policy, including all riders and endorsements thereto in
effect, including any replacement policy or policies for any Insurance Policies.

     Insurance Proceeds: Proceeds paid by an insurer pursuant to any Insurance
Policy, in each case other than any amount included in such Insurance Proceeds
in respect of Insured Expenses.

     Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

     Interest Only Certificates: As specified in the Preliminary Statement.

     Insured Retail Certificates: Not applicable.

     Interest Accrual Period: With respect to each Class of Delay Certificates
and any Distribution Date, the calendar month prior to the month of such
Distribution Date. With respect to any Non-Delay Certificates and any
Distribution Date, the one month period commencing on the 25th day of the month
preceding the month in which such Distribution Date occurs and ending on the
24th day of the month in which such Distribution Date occurs.

     Interest Determination Date: Not applicable.

     Latest Possible Maturity Date: As to each Class of Subordinated
Certificates and each Class of Senior Certificates in the Certificate Group
corresponding to Pool I, the Distribution Date following the third anniversary
of the scheduled maturity date of the Mortgage Loan in Pool I having the latest
scheduled maturity date as of the Cut-off Date; as to each Class of Senior
Certificates in the Certificate Group corresponding to Pool II, the Distribution
Date following the third anniversary of the scheduled maturity date of the
Mortgage Loan in Pool II having the latest scheduled maturity date as of the
Cut-off Date.

                                       14

<PAGE>

     Lender PMI Mortgage Loan: Not applicable.

     LIBOR: Not applicable.

     LIBOR Certificates: As specified in the Preliminary Statement.

     Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan (including any REO Property) which was liquidated in the
calendar month preceding the month of such Distribution Date and as to which the
Master Servicer has determined (in accordance with this Agreement) that it has
received all amounts it expects to receive in connection with the liquidation of
such Mortgage Loan, including the final disposition of an REO Property.

     Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of defaulted Mortgage Loans,
whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property,
less the sum of related unreimbursed Master Servicing Fees, Servicing Advances
and Advances.

     Loan-to-Value Ratio: With respect to any Mortgage Loan and as to any date
of determination, the fraction (expressed as a percentage) the numerator of
which is the principal balance of the related Mortgage Loan at such date of
determination and the denominator of which is the Appraised Value of the related
Mortgaged Property.

     Loss Allocation Limitation: As defined in Section 4.4(g).

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

     Maintenance: With respect to any Cooperative Unit, the rent paid by the
Mortgagor to the Cooperative Corporation pursuant to the Proprietary Lease.

     Majority in Interest: As to any Class of Regular Certificates, the Holders
of Certificates of such Class evidencing, in the aggregate, at least 51% of the
Percentage Interests evidenced by all Certificates of such Class.

     Master Servicer: First Horizon Home Loan Corporation, a Kansas corporation,
and its successors and assigns, in its capacity as master servicer hereunder.

     Master Servicer Advance Date: As to any Distribution Date, 1:30 p.m.
Central time on the Business Day immediately preceding such Distribution Date.

     Master Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount payable out of each full payment of interest received on such Mortgage
Loan and equal to one-twelfth of the Master Servicing Fee Rate multiplied by the
Stated Principal Balance of such Mortgage Loan as of the Due Date in the month
of such Distribution Date (prior to giving effect

                                       15

<PAGE>

to any Scheduled Payments due on such Mortgage Loan on such Due Date), subject
to reduction as provided in Section 3.14.

     Master Servicing Fee Rate: For each Mortgage Loan, other than Discount
Mortgage Loans, a per annum rate equal to 0.244%. For each Discount Mortgage
Loan corresponding to Pool I, a per annum rate equal to the excess, if any, of
the Mortgage Rate thereof over 6.006%. For each Discount Mortgage Loan
corresponding to Pool II, a per annum rate equal to the excess, if any, of the
Mortgage Rate thereof over 5.756%.

     MLPA I: The Mortgage Loan Purchase Agreement dated as of September 30,
2002, by and between First Horizon Home Loan Corporation, as seller, and First
Tennessee Bank National Association, as purchaser, as related to the transfer,
sale and conveyance of the Mortgage Loans.

     MLPA II: The Mortgage Loan Purchase Agreement dated as of September 30,
2002, by and between First Tennessee Bank National Association, as seller, and
First Horizon Asset Securities Inc., as purchaser, as related to the transfer,
sale and conveyance of the Mortgage Loans.

     Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.6.

     Moody's: Moody's Investors Service, Inc., or any successor thereto. If
Moody's is designated as a Rating Agency in the Preliminary Statement, for
purposes of Section 11.5(b) the address for notices to Moody's shall be Moody's
Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
Residential Pass-Through Monitoring, or such other address as Moody's may
hereafter furnish to the Depositor or the Master Servicer.

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

     Mortgage File: The mortgage documents listed in Section 2.1 hereof
pertaining to a particular Mortgage Loan and any additional documents delivered
to the Trustee to be added to the Mortgage File pursuant to this Agreement.

     Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time
amended by the Master Servicer to reflect the addition of Substitute Mortgage
Loans and the deletion of Deleted Mortgage Loans pursuant to the provisions of
this Agreement) transferred to the Trustee as part of the Trust Fund and from
time to time subject to this Agreement, attached hereto as Schedule I, setting
forth the following information with respect to each Mortgage Loan:

               (1)  the loan number;

               (2)  the Mortgagor's name and the street address of the Mortgaged
                    Property, including the zip code;

               (3)  the maturity date;

               (4)  the original principal balance;

                                       16

<PAGE>

              (5)  the Cut-off Date Principal Balance;

              (6)  the first payment date of the Mortgage Loan;

              (7)  the Scheduled Payment in effect as of the Cut-off Date;

              (8)  the Loan-to-Value Ratio at origination;

              (9)  a code indicating whether the residential dwelling at the
                   time of origination was represented to be owner-occupied;

              (10) a code indicating whether the residential dwelling is either
                   (a) a detached single family dwelling (b) a dwelling in a de
                   minimis PUD, (c) a condominium unit or PUD (other than a de
                   minimis PUD), (d) a two-to-four unit residential property or
                   (e) a Cooperative Unit;

              (11) the Mortgage Rate;

              (12) the purpose for the Mortgage Loan;

              (13) the type of documentation program pursuant to which the
                   Mortgage Loan was originated; and

              (14) the Master Servicing Fee for the Mortgage Loan.

         Such schedule shall also set forth the total of the amounts described
under (4) and (5) above for all of the Mortgage Loans.

         Mortgage Loans: Such of the mortgage loans transferred and assigned to
the Trustee pursuant to the provisions hereof as from time to time are held as a
part of the Trust Fund (including any REO Property), the mortgage loans so held
being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or
other acquisition of title of the related Mortgaged Property.

         Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

         Mortgage Pool:  Either Pool I or Pool II.

         Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time, net of any insurance premium charged by the mortgagee to
obtain or maintain any Primary Insurance Policy.

         Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

         Mortgagor:  The obligor(s) on a Mortgage Note.

                                       17

<PAGE>

         NAS Distribution Percentage: 0% through the Distribution Date in
September 2007; 30% of the applicable NAS Percentage thereafter through the
Distribution Date in September 2008; 40% of the applicable NAS Percentage
thereafter through the Distribution Date in September 2009; 60% of the
applicable NAS Percentage thereafter through the Distribution Date in September
2010; 80% of the applicable NAS Percentage thereafter through the Distribution
Date in September 2011; and 100% of the applicable NAS Percentage thereafter.

         NAS Percentage: For any Distribution Date, the lesser of (x) 100% and
(y) the percentage (carried to six places rounded up) obtained by dividing (1)
the aggregate Class Certificate Balance of the NAS Certificates immediately
preceding such Distribution Date by (2) the aggregate Stated Principal Balance
of the Mortgage Loans in Pool I immediately preceding such Distribution Date.

         NAS Principal Distribution Amount: For any Distribution Date, the total
of the amounts described in clauses (1) through (5) of the definition of Senior
Optimal Principal Amount for Pool I (determined without application of the
Senior Percentage and the Senior Prepayment Percentage) for such date multiplied
by the NAS Distribution Percentage for such date.

         National Cost of Funds Index: The National Monthly Median Cost of Funds
Ratio to SAIF-Insured Institutions published by the Office of Thrift
Supervision.

         Net Interest Shortfall: For any Distribution Date and each Mortgage
Pool, the sum of (a) the amount of interest which would otherwise have been
received for any Mortgage Loan that was the subject of (x) a Relief Act
Reduction or (y) a Special Hazard Loss, Fraud Loss, or Deficient Valuation,
after the exhaustion of the respective amounts of coverage for those types of
losses provided by the Subordinated Certificates; and (b) any Net Prepayment
Interest Shortfalls.

         Net Prepayment Interest Shortfalls: As to any Distribution Date and
each Mortgage Pool, the amount by which the aggregate of Prepayment Interest
Shortfalls during the related Prepayment Period exceeds an amount equal to the
Compensating Interest, if any, for such Distribution Date.

         Non-Delay Certificates:  As specified in the Preliminary Statement.

         Non-Excess Loss: Any Realized Loss other than an Excess Loss.

         Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Master Servicer that, in the good faith judgment of
the Master Servicer, will not be ultimately recoverable by the Master Servicer
from the related Mortgagor, related Liquidation Proceeds or otherwise.

         Notice of Final Distribution: The notice to be provided pursuant to
Section 9.2 to the effect that final distribution on any of the Certificates
shall be made only upon presentation and surrender thereof.

         Notional Amount: Not applicable.

         Notional Principal Amount Certificates: As specified in the Preliminary
Statement.

                                       18

<PAGE>

         Offered Certificates:  As specified in the Preliminary Statement.

         Officer's Certificate: A Certificate (i) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Managing Director, a
Vice President (however denominated), an Assistant Vice President, the
Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of the Depositor or the Master Servicer, or (ii), if provided for in
this Agreement, signed by a Servicing Officer, as the case may be, and delivered
to the Depositor and the Trustee, as the case may be, as required by this
Agreement.

         Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Master Servicer, including, in-house counsel,
reasonably acceptable to the Trustee; provided, however, that with respect to
the interpretation or application of the REMIC Provisions, such counsel must (i)
in fact be independent of the Depositor and the Master Servicer, (ii) not have
any direct financial interest in the Depositor or the Master Servicer or in any
affiliate of either, and (iii) not be connected with the Depositor or the Master
Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

         Optional Termination: The termination of the trust created hereunder in
connection with the purchase of the Mortgage Loans pursuant to Section 9.1(a)
hereof.

         Original Mortgage Loan: The Mortgage Loan refinanced in connection with
the origination of a Refinancing Mortgage Loan.

         Original Subordinated Principal Balance: The aggregate of the Class
Certificate Balances of the Subordinated Certificates as of the Closing Date.

         OTS: The Office of Thrift Supervision.

         Outside Reference Date: Not applicable.

         Outstanding: With respect to the Certificates as of any date of
determination, all Certificates theretofore executed and authenticated under
this Agreement except:

                      (i)  Certificates theretofore canceled by the Trustee or
                           delivered to the Trustee for cancellation; and

                      (ii) Certificates in exchange for which or in lieu of
                           which other Certificates have been executed and
                           delivered by the Trustee pursuant to this Agreement.

         Outstanding Mortgage Loan: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero which was not the subject of a
Principal Prepayment in Full prior to such Due Date and which did not become a
Liquidated Mortgage Loan prior to such Due Date.

                                       19

<PAGE>

         Ownership Interest: As to any Residual Certificate, any ownership
interest in such Certificate including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial.

         Pass-Through Rate: For any interest bearing Class of Certificates or
Component, the per annum rate set forth or calculated in the manner described in
the Preliminary Statement.

         Percentage Interest: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being set forth on the face thereof or equal to the
percentage obtained by dividing the Denomination of such Certificate by the
aggregate of the Denominations of all Certificates of the same Class.

         Permitted Investments: At any time, any one or more of the following
obligations and securities:

                         (i)   obligations of the United States or any agency
                thereof, provided such obligations are backed by the full faith
                and credit of the United States;

                         (ii)  general obligations of or obligations guaranteed
                by any state of the United States or the District of Columbia
                receiving the highest long-term debt rating of each Rating
                Agency, or such lower rating as will not result in the
                downgrading or withdrawal of the ratings then assigned to the
                Certificates by each Rating Agency;

                         (iii) commercial or finance company paper which is
                then receiving the highest commercial or finance company paper
                rating of each Rating Agency, or such lower rating as will not
                result in the downgrading or withdrawal of the ratings then
                assigned to the Certificates by each Rating Agency;

                         (iv)  certificates of deposit, demand or time deposits,
                or bankers' acceptances issued by any depository institution or
                trust company incorporated under the laws of the United States
                or of any state thereof and subject to supervision and
                examination by federal and/or state banking authorities,
                provided that the commercial paper and/or long term unsecured
                debt obligations of such depository institution or trust
                company (or in the case of the principal depository institution
                in a holding company system, the commercial paper or long-term
                unsecured debt obligations of such holding company, but only if
                Moody's is not a Rating Agency) are then rated one of the two
                highest long-term and the highest short-term ratings of each
                Rating Agency for such securities, or such lower ratings as
                will not result in the downgrading or withdrawal of the rating
                then assigned to the Certificates by either Rating Agency;

                         (v)  demand or time deposits or certificates of deposit
                issued by any bank or trust company or savings institution to
                the extent that such deposits are fully insured by the FDIC;

                         (vi)  guaranteed reinvestment agreements issued by any
                bank, insurance company or other corporation containing, at the
                time of the issuance of such

                                       20

<PAGE>

                  agreements, such terms and conditions as will not result in
                  the downgrading or withdrawal of the rating then assigned to
                  the Certificates by either Rating Agency;

                           (vii) repurchase obligations with respect to any
                  security described in clauses (i) and (ii) above, in either
                  case entered into with a depository institution or trust
                  company (acting as principal) described in clause (iv) above;

                           (viii) securities (other than stripped bonds,
                  stripped coupons or instruments sold at a purchase price in
                  excess of 115% of the face amount thereof) bearing interest or
                  sold at a discount issued by any corporation incorporated
                  under the laws of the United States or any state thereof
                  which, at the time of such investment, have one of the two
                  highest ratings of each Rating Agency (except if the Rating
                  Agency is Moody's, such rating shall be the highest commercial
                  paper rating of Moody's for any such securities), or such
                  lower rating as will not result in the downgrading or
                  withdrawal of the rating then assigned to the Certificates by
                  either Rating Agency as evidenced by a signed writing
                  delivered by each Rating Agency;

                           (ix) units of a taxable money-market portfolio having
                  the highest rating assigned by each Rating Agency (except if
                  Fitch is a Rating Agency and has not rated the portfolio, the
                  highest rating assigned by Moody's) and restricted to
                  obligations issued or guaranteed by the United States of
                  America or entities whose obligations are backed by the full
                  faith and credit of the United States of America and
                  repurchase agreements collateralized by such obligations; and

                           (x) such other investments bearing interest or sold
                  at a discount acceptable to each Rating Agency as will not
                  result in the downgrading or withdrawal of the rating then
                  assigned to the Certificates by either Rating Agency, as
                  evidenced by a signed writing delivered by each Rating Agency;

provided that no such instrument shall be a Permitted Investment if such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument.

         Permitted Transferee: Any person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to
any Residual Certificate, (iv) rural electric and telephone cooperatives
described in section 1381(a)(2)(C) of the Code, (v) an "electing large
partnership" as defined in section 775 of the Code, (vi) a Person that is not
(a) a citizen or resident of the United States, (b) a corporation, partnership,
or other entity created or organized in or under the laws of the United States,
any state thereof or the District of Columbia, (c) an estate whose income from
sources without the United States is includible in gross income for United
States federal income tax purposes regardless of its connection with the conduct
of a

                                       21

<PAGE>

trade or business within the United States or (d) a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have the authority to control
all substantial decisions of the trust, unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI or any applicable successor form, and (vii) any other Person so
designated by the Depositor based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Residual Certificate to such Person may cause the
REMIC created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding; provided, however, that if a person is classified
as a partnership under the Code, such person shall only be a Permitted
Transferee if all of its beneficial owners are described in subclauses (a), (b),
(c) or (d) of clause (vi) and the governing documents of such person prohibits a
transfer of any interest in such person to any person described in clause (vi).
The terms "United States," "State" and "International Organization" shall have
the meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

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

         Physical Certificate: As specified in the Preliminary Statement.

         Planned Principal Classes: Not applicable.

         Pool I: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool I.

         Pool II: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool II.

         Pool Principal Balance: For each Mortgage Pool, with respect to any
Distribution Date, the aggregate of the Stated Principal Balances of the
Mortgage Loans which were Outstanding Mortgage Loans on the Due Date in the
month preceding the month of such Distribution Date.

         Prepayment Interest Excess: As to any Principal Prepayment received by
the Master Servicer from the first day through the fifteenth day of any calendar
month (other than the calendar month in which the Cut-off Date occurs), all
amounts paid by the related Mortgagor in respect of interest on such Principal
Prepayment. All Prepayment Interest Excess shall be paid to the Master Servicer
as additional master servicing compensation.

         Prepayment Interest Shortfall: As to any Distribution Date and each
Mortgage Pool, Mortgage Loan and Principal Prepayment received (a) during the
period from the sixteenth day of the month preceding the month of such
Distribution Date through the last day of such month, in the case of a Principal
Prepayment in full, or (b) during the month preceding the month of such
Distribution Date, in the case of a partial Principal Prepayment, the amount, if
any, by which one month's interest at the related Adjusted Mortgage Rate on such
Principal Prepayment

                                       22

<PAGE>

exceeds the amount of interest actually paid by the Mortgagor in connection with
such Principal Prepayment.

         Prepayment Period: (a) With respect to any Principal Prepayments in
Full and any Distribution Date, the period from the sixteenth day of the month
preceding the month of such Distribution Date (or, in the case of the first
Distribution Date, from the Cut-off Date) through the fifteenth day of the month
of such Distribution Date, and (b) with respect to any other Principal
Prepayments and any Distribution Date, the month preceding the month of such
Distribution Date.

         Primary Insurance Policy: Each policy of primary mortgage guaranty
insurance or any replacement policy therefor with respect to any Mortgage Loan.

         Primary Planned Principal Classes: Not applicable.

         Principal Balance Schedules: Not applicable.

         Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment. Partial
Principal Prepayments shall be applied by the Master Servicer in accordance with
the terms of the related Mortgage Note.

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

         Private Certificate: As specified in the Preliminary Statement.

         Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

         PUD: Planned Unit Development.

         Purchase Price: With respect to any Mortgage Loan required to be
purchased by the Seller pursuant to Section 2.2 or 2.3 hereof or purchased at
the option of the Master Servicer pursuant to Section 3.11, an amount equal to
the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on the
date of such purchase, and (ii) accrued interest thereon at the applicable
Mortgage Rate (or at the applicable Adjusted Mortgage Rate if the purchaser is
the Master Servicer) from the date through which interest was last paid by the
Mortgagor to the Due Date in the month in which the Purchase Price is to be
distributed to Certificateholders.

         Qualified Insurer: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as a
FNMA-approved mortgage insurer and having a claims paying ability rating of at
least "AA" or equivalent rating by a nationally recognized statistical rating
organization. Any replacement insurer with respect to

                                       23

<PAGE>

a Mortgage Loan must have at least as high a claims paying ability rating as the
insurer it replaces had on the Closing Date.

         Rating Agency: Each of the Rating Agencies specified in the Preliminary
Statement. If any such organization or a successor is no longer in existence,
"Rating Agency" shall be such nationally recognized statistical rating
organization, or other comparable Person, as is designated by the Depositor,
notice of which designation shall be given to the Trustee. References herein to
a given rating category of a Rating Agency shall mean such rating category
without giving effect to any modifiers.

         Realized Loss: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or more than the Stated Principal Balance of the Mortgage
Loan) as of the date of such liquidation, equal to (i) the Stated Principal
Balance of the Liquidated Mortgage Loan as of the date of such liquidation, plus
(ii) interest at the Adjusted Net Mortgage Rate from the Due Date as to which
interest was last paid or advanced (and not reimbursed) to Certificateholders up
to the Due Date in the month in which Liquidation Proceeds are required to be
distributed on the Stated Principal Balance of such Liquidated Mortgage Loan
from time to time, minus (iii) the Liquidation Proceeds, if any, received during
the month in which such liquidation occurred, to the extent applied as
recoveries of interest at the Adjusted Net Mortgage Rate and to principal of the
Liquidated Mortgage Loan. With respect to each Mortgage Loan which has become
the subject of a Deficient Valuation, if the principal amount due under the
related Mortgage Note has been reduced, the difference between the principal
balance of the Mortgage Loan outstanding immediately prior to such Deficient
Valuation and the principal balance of the Mortgage Loan as reduced by the
Deficient Valuation.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the Cooperative Corporation and the originator of such
Mortgage Loan which establishes the rights of such originator in the Cooperative
Property.

         Record Date: With respect to any Distribution Date, the close of
business on the last Business Day of the month preceding the month in which such
Distribution Date occurs.

         Reference Bank: Not applicable.

         Refinancing Mortgage Loan: Any Mortgage Loan originated in connection
with the refinancing of an existing mortgage loan.

         Regular Certificates: As specified in the Preliminary Statement.

         Relief Act: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

         Relief Act Reductions: With respect to any Distribution Date and any
Mortgage Loan as to which there has been a reduction in the amount of interest
collectible thereon for the most recently ended calendar month as a result of
the application of the Relief Act, the amount, if any, by which interest
collectible on such Mortgage Loan for the most recently ended calendar month is
less than interest accrued thereon for such month pursuant to the Mortgage Note.

                                       24

<PAGE>

         REMIC: A "real estate mortgage investment conduit" within the meaning
of section 860D of the Code.

         REMIC Change of Law: Any proposed, temporary or final regulation,
revenue ruling, revenue procedure or other official announcement or
interpretation relating to REMICs and the REMIC Provisions issued after the
Closing Date.

         REMIC Provisions: Provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at sections 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
regulations promulgated thereunder, as the foregoing may be in effect from time
to time as well as provisions of applicable state laws.

         REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

         Request for Release: The Request for Release submitted by the Master
Servicer to the Trustee, substantially in the form of Exhibits L and M, as
appropriate.

         Required Coupon: With respect to Pool I, 6.25% per annum, and with
respect to Pool II, 6.00% per annum.

         Required Insurance Policy: With respect to any Mortgage Loan, any
insurance policy that is required to be maintained from time to time under this
Agreement.

         Required Recordation States: The states of Florida, Maryland and
Mississippi.

         Residual Certificates: As specified in the Preliminary Statement.

         Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
having direct responsibility for the administration of this Agreement and also
to whom, with respect to a particular matter, such matter is referred because of
such officer's knowledge of and familiarity with the particular subject.

         Retail Certificates: Not applicable.

         Retained Yield: As to each Mortgage Loan and any Distribution Date, an
amount payable to First Horizon Home Loan Corporation out of each full payment
of interest received on such Mortgage Loan and equal to one-twelfth of the
Retained Yield Rate multiplied by the Stated Principal Balance of such Mortgage
Loan as of the Due Date in the month of such Distribution Date (prior to giving
effect to any Scheduled Payments due on such Mortgage Loan on such Due Date).

         Retained Yield Rate: For any Mortgage Loan, other than the Discount
Mortgage Loans, a per annum rate equal to the excess of (a) the applicable
Mortgage Rate over (b) the Required Coupon. For any Discount Mortgage Loan, 0%.

                                       25

<PAGE>

         Scheduled Balances: Not applicable.

         Scheduled Classes: Not applicable.

         Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due
on any Due Date allocable to principal and/or interest on such Mortgage Loan
which, unless otherwise specified herein, shall give effect to any related Debt
Service Reduction and any Deficient Valuation that affects the amount of the
monthly payment due on such Mortgage Loan.

         Scheduled Principal Classes: Not applicable.

         Secondary Planned Principal Classes: Not applicable.

         Securities Act: The Securities Act of 1933, as amended.

         Security Agreement: The security agreement with respect to a
Cooperative Loan.

         Seller: First Horizon Home Loan Corporation, a Kansas corporation, and
its successors and assigns, in its capacity as seller of the Mortgage Loans
pursuant to MLPA I.

         Senior Certificates: As specified in the Preliminary Statement.

         Senior Final Distribution Date: For each Certificate Group, the
Distribution Date on which the Class Certificate Balance of each Class of
related Senior Certificates has been reduced to zero.

         Senior Optimal Principal Amount: As to a Mortgage Pool and with respect
to each Distribution Date, an amount equal to the sum of:

               (1) the related Senior Percentage of all Scheduled Payments of
principal due on each Mortgage Loan in such Mortgage Pool on the first day of
the month in which the Distribution Date occurs, as specified in the
amortization schedule at the time applicable thereto after adjustment for
previous principal prepayments and the principal portion of Debt Service
Reductions after the Bankruptcy Loss Coverage Amount has been reduced to zero,
but before any adjustment to such amortization schedule by reason of any other
bankruptcy or similar proceeding or any moratorium or similar waiver or grace
period;

               (2) the related Senior Prepayment Percentage of the Stated
Principal Balance of each Mortgage Loan in such Mortgage Pool which was the
subject of a prepayment in full received by the Master Servicer during the
applicable Prepayment Period;

               (3) the related Senior Prepayment Percentage of all partial
prepayments of principal in respect of each Mortgage Loan in such Mortgage Pool
received during the applicable Prepayment Period;

               (4) the lesser of:

                                       26

<PAGE>

                    (a) the related Senior Prepayment Percentage of the sum of
               (x) the Liquidation Proceeds allocable to principal on each
               Mortgage Loan in such Mortgage Pool which became a Liquidated
               Mortgage Loan during the related Prepayment Period, other than
               Mortgage Loans described in clause (y), and (y) the principal
               balance of each Mortgage Loan in such Mortgage Pool that was
               purchased by a private mortgage insurer during the related
               Prepayment Period as an alternative to paying a claim under the
               related Insurance Policy; and

                    (b  (i) the related Senior Percentage of the sum of (x) the
               Stated Principal Balance of each Mortgage Loan in such Mortgage
               Pool which became a Liquidated Mortgage Loan during the related
               Prepayment Period, other than Mortgage Loans described in clause
               (y), and (y) the Stated Principal Balance of each Mortgage Loan
               in such Mortgage Pool that was purchased by a private mortgage
               insurer during the related Prepayment Period as an alternative to
               paying a claim under the related Insurance Policy minus (ii) the
               related Senior Percentage of the principal portion of Excess
               Losses (other than Debt Service Reductions) for such Mortgage
               Pool during the related Prepayment Period; and

               (5)  the related Senior Prepayment Percentage of the sum of (a)
the Stated Principal Balance of each Mortgage Loan in such Mortgage Pool which
was repurchased by the seller in connection with such Distribution Date and (b)
the difference, if any, between the Stated Principal Balance of a Mortgage Loan
in such Mortgage Pool that has been replaced by the seller with a Substitute
Mortgage Loan pursuant to the agreement in connection with such Distribution
Date and the Stated Principal Balance of such Substitute Mortgage Loan.

         Senior Percentage: On any Distribution Date for a Certificate Group,
the lesser of 100% and the percentage (carried to six places rounded up)
obtained by dividing the aggregate Class Certificate Balances of all Classes of
Senior Certificates of such Certificate Group immediately preceding such
Distribution Date by the Pool Principal Balance of the related Mortgage Pool for
the immediately preceding Distribution Date.

         Senior Prepayment Percentage: On any Distribution Date occurring during
the periods set forth below, and as to each Mortgage Pool, the Senior Prepayment
Percentages, described below:

                                       27

<PAGE>

--------------------------------------------------------------------------------
Period (Dates Inclusive)                 Senior Prepayment Percentage
--------------------------------------------------------------------------------
October 2002 - September 2007            100%
--------------------------------------------------------------------------------
October 2007 - September 2008            the related Senior Percentage plus 70%
                                         of the related Subordinated Percentage
--------------------------------------------------------------------------------
October 2008 - September 2009            the related Senior Percentage plus 60%
                                         of the related Subordinated Percentage
--------------------------------------------------------------------------------
October 2009 - September 2010            the related Senior Percentage plus 40%
                                         of the related Subordinated Percentage
--------------------------------------------------------------------------------
October 2010 - September 2011            the related Senior Percentage plus 20%
                                         of the related Subordinated Percentage
--------------------------------------------------------------------------------
October 2011 and thereafter              the related Senior Percentage
--------------------------------------------------------------------------------

         Notwithstanding the foregoing, if the Senior Percentage for a
Certificate Group on any Distribution Date exceeds the initial Senior
Percentage, for that Certificate Group, the related Senior Prepayment Percentage
for such Distribution Date will equal 100%.

         In addition, no reduction of the Senior Prepayment Percentage for a
Certificate Group below the level in effect for the most recent prior period
specified in the table above shall be effective on any Distribution Date unless,
as of the last day of the month preceding such Distribution Date:

               (1)  the aggregate Stated Principal Balance of Mortgage Loans in
the related Mortgage Pool delinquent 60 days or more (including for this purpose
any Mortgage Loans in foreclosure and Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust) does not exceed 50%
of the related Group Subordinate Amount as of such date; and

               (2)  cumulative Realized Losses with respect to the Mortgage
Loans in the related Mortgage Pool do not exceed:

                    (a) 30% of the related Group Subordinate Amount as of the
               Cut-off Date (the "Original Group Subordinated Amount" with
               respect to such Mortgage Pool) if such Distribution Date occurs
               between and including October 2007 and September 2008;

                    (b) 35% of the Original Subordinated Principal Balance if
               such Distribution Date occurs between and including October 2008
               and September 2009;

                    (c) 40% of the Original Subordinated Principal Balance if
               such Distribution Date occurs between and including October 2009
               and September 2010;

                                       28

<PAGE>

                    (d) 45% of the Original Subordinated Principal Balance if
               such Distribution Date occurs between and including October 2010
               and September 2011; and

                    (e) 50% of the Original Subordinated Principal Balance if
               such Distribution Date occurs during or after October 2011.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
expenses reimbursable to the Master Servicer pursuant to Section 3.11 and any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.9.

         Servicing Officer: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and facsimile signature appear on a list of servicing officers furnished to
the Trustee by the Master Servicer on the Closing Date pursuant to this
Agreement, as such list may from time to time be amended.

         Special Hazard Coverage Termination Date: The point in time at which
the Special Hazard Loss Coverage Amount is reduced to zero.

         Special Hazard Loss: Any Realized Loss suffered by a Mortgaged Property
on account of direct physical loss but not including (i) any loss of a type
covered by a hazard insurance policy or a flood insurance policy required to be
maintained with respect to such Mortgaged Property pursuant to Section 3.9 to
the extent of the amount of such loss covered thereby, or (ii) any loss caused
by or resulting from:

               (1)  normal wear and tear;

               (2)  fraud, conversion or other dishonest act on the part of the
Trustee, the Master Servicer or any of their agents or employees (without regard
to any portion of the loss not covered by any errors and omissions policy);

               (3)  errors in design, faulty workmanship or faulty materials,
unless the collapse of the property or a part thereof ensues and then only for
the ensuing loss;

               (4)  nuclear or chemical reaction or nuclear radiation or
radioactive or chemical contamination, all whether controlled or uncontrolled,
and whether such loss be direct or indirect, proximate or remote or be in whole
or in part caused by, contributed to or aggravated by a peril covered by the
definition of the term "Special Hazard Loss";

               (5)  hostile or warlike action in time of peace and war,
including action in hindering, combating or defending against an actual,
impending or expected attack:

                    (i) by any government or sovereign power, de jure or de
               facto, or by any authority maintaining or using military, naval
               or air forces;

                                       29

<PAGE>

                    (ii)  by military, naval or air forces; or

                    (iii) by an agent of any such government, power, authority
               or forces;

               (6)  any weapon of war employing nuclear fission, fusion or other
radioactive force, whether in time of peace or war; or

               (7)  insurrection, rebellion, revolution, civil war, usurped
power or action taken by governmental authority in hindering, combating or
defending against such an occurrence, seizure or destruction under quarantine or
customs regulations, confiscation by order of any government or public authority
or risks of contraband or illegal transportation or trade.

         Special Hazard Loss Coverage Amount: Upon the initial issuance of the
Certificates, $8,780,364. As of any Distribution Date, the Special Hazard Loss
Coverage Amount will equal the greater of

               (a)  1.00% (or if greater than 1.00%, the highest percentage of
Mortgage Loans by principal balance secured by Mortgaged Properties in any
single California zip code) of the outstanding principal balance of all the
Mortgage Loans as of the related Determination Date; and

               (b)  twice the outstanding principal balance of the Mortgage Loan
which has the largest outstanding principal balance as of the related
Determination Date, less, in each case, the aggregate amount of Special Hazard
Losses that would have been previously allocated to the Subordinated
Certificates in the absence of the Loss Allocation Limitation. As of any
Distribution Date on or after the Cross-over Date, the Special Hazard Loss
Coverage Amount will be zero.

         Special Hazard Mortgage Loan: A Liquidated Mortgage Loan as to which a
Special Hazard Loss has occurred.

         S&P: Standard & Poor's Corporation, a division of The McGraw-Hill
Companies, Inc. If S&P is designated as a Rating Agency in the Preliminary
Statement, for purposes of Section 11.5(b) the address for notices to S&P shall
be Standard & Poor's, 55 Water Street, 41st Floor, New York, New York 10041,
Attention: Mortgage Surveillance Monitoring, or such other address as S&P may
hereafter furnish to the Depositor and the Master Servicer.

         Startup Day: The Closing Date.

         Stated Principal Balance: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date as specified
in the amortization schedule at the time relating thereto (before any adjustment
to such amortization schedule by reason of any moratorium or similar waiver or
grace period) after giving effect to any previous partial Principal Prepayments
and Liquidation Proceeds allocable to principal (other than with respect to any
Liquidated Mortgage Loan) and to the payment of principal due on such Due Date
and irrespective of any delinquency in payment by the related Mortgagor.

                                       30

<PAGE>

         Streamlined Documentation Mortgage Loan: Any Mortgage Loan originated
pursuant to the Seller's Streamlined Loan Documentation Program then in effect.

         Subordinated Certificates: As specified in the Preliminary Statement.

         Subordinated Certificate Writedown Amount: As of any Distribution Date,
the amount by which (a) the sum of the Class Certificate Balances of all of the
Certificates, after giving effect to the distribution of principal and the
allocation of Realized Losses in reduction of the Class Certificate Balances of
all of the Certificates on such Distribution Date, exceeds (b) the aggregate
Pool Principal Balance for both Mortgage Pools on the first day of the month of
such Distribution Date less any Deficient Valuations occurring before the
Bankruptcy Loss Coverage Amount has been reduced to zero.

         Subordinated Optimal Principal Amount: With respect to each Mortgage
Pool and each Distribution Date, an amount equal to the sum of the following
(but in no event greater than the aggregate Class Certificate Balances of the
Subordinated Certificates immediately prior to such Distribution Date):

               (1)  the related Subordinated Percentage of all Scheduled
Payments of principal due on each outstanding Mortgage Loan in the related
Mortgage Pool on the first day of the month in which the Distribution Date
occurs, as specified in the amortization schedule at the time applicable
thereto, after adjustment for previous principal prepayments and the principal
portion of Debt Service Reductions after the Bankruptcy Loss Coverage Amount has
been reduced to zero, but before any adjustment to such amortization schedule by
reason of any other bankruptcy or similar proceeding or any moratorium or
similar waiver or grace period;

               (2)  the related Subordinated Prepayment Percentage of the Stated
Principal Balance of each Mortgage Loan in the related Mortgage Pool which was
the subject of a prepayment in full received by the Master Servicer during the
related Prepayment Period;

               (3)  the related Subordinated Prepayment Percentage of all
partial prepayments of principal received in respect of each Mortgage Loan in
the related Mortgage Pool during the related Prepayment Period, plus, on the
Senior Final Distribution Date, 100% of any related Senior Optimal Principal
Amount remaining undistributed on such date;

               (4)  the amount, if any, by which the sum of (a) the net
Liquidation Proceeds allocable to principal received during the related
Prepayment Period in respect of each Liquidated Mortgage Loan in the related
Mortgage Pool, other than Mortgage Loans described in clause (b), and (b) the
principal balance of each Mortgage Loan in the related Mortgage Pool that was
purchased by a private mortgage insurer during the related Prepayment Period as
an alternative to paying a claim under the related Insurance Policy exceeds (c)
the sum of the amounts distributable to the Senior Certificateholders under
clause (4) of the definition of applicable Senior Optimal Principal Amount on
such Distribution Date; and

               (5)  the related Subordinated Prepayment Percentage of the sum of
(a) the Stated Principal Balance of each Mortgage Loan in the related Mortgage
Pool which was repurchased by the seller in connection with such Distribution
Date and (b) the difference, if any, between the Stated Principal Balance of a
Mortgage Loan in the related Mortgage Pool that has

                                       31

<PAGE>

been replaced by the seller with a Substitute Mortgage Loan pursuant to the
Agreement in connection with such Distribution Date and the Stated Principal
Balance of each such Substitute Mortgage Loan.

         Subordinated Percentage: For any Distribution Date and each Certificate
Group, 100% minus the related Senior Percentage.

         Subordinated Prepayment Percentage: For any Distribution Date, 100%
minus the Senior Prepayment Percentage, except that on any Senior Final
Distribution Date, the related Subordinated Prepayment Percentage will equal
100%.

         Subservicer: Any person to whom the Master Servicer has contracted for
the servicing of all or a portion of the Mortgage Loans pursuant to Section 3.2
hereof.

         Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit L, (i)
have a Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) have an Adjusted Net Mortgage Rate not lower than the applicable
Required Coupon, provided that the Master Servicing Fee for the Substitute
Mortgage Loan shall be equal to or greater than that of the Deleted Mortgage
Loan; (iii) be accruing interest at a rate no lower than and not more than 1%
per annum higher than, that of the Deleted Mortgage Loan; (iv) have a
Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (v) have a
remaining term to maturity no greater than (and not more than one year less than
that of) the Deleted Mortgage Loan; (vi) not be a Cooperative Loan unless the
Deleted Mortgage Loan was a Cooperative Loan and (vii) comply with each
representation and warranty set forth in Section 2.3 hereof.

         Substitution Adjustment Amount: The meaning ascribed to such term
pursuant to Section 2.3.

         Support Classes: Not applicable.

         Targeted Balances: Not applicable.

         Targeted Principal Classes: Not applicable.

         Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulationss. 1.860F-4(d) and Treasury
regulationss.301.6231(a)(7)-1. Initially, the Tax Matters Person shall be the
Trustee.

         Tax Matters Person Certificate: The Class I-A-R Certificate with a
Denomination of $0.01.

         Transfer: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

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         Trust Fund: The corpus of the trust created hereunder consisting of (i)
the Mortgage Loans and all interest and principal received on or with respect
thereto after the Cut-off Date to the extent not applied in computing the
Cut-off Date Principal Balance thereof; (ii) all of the Depositor's rights as
purchaser under MLPA II; (iii) the Certificate Account and the Distribution
Account and all amounts deposited therein pursuant to the applicable provisions
of this Agreement; (iv) property that secured a Mortgage Loan and has been
acquired by foreclosure, deed-in-lieu of foreclosure or otherwise; and (v) all
proceeds of the conversion, voluntary or involuntary, of any of the foregoing;
provided that the Trust Fund shall exclude the Retained Yield.

         Trustee: The Bank of New York and its successors and, if a successor
trustee is appointed hereunder, such successor.

         Trustee Fee: As to any Distribution Date and a Mortgage Pool, an amount
equal to one-twelfth of the Trustee Fee Rate multiplied by the applicable Pool
Principal Balance with respect to such Distribution Date.

         Trustee Fee Rate: With respect to each Mortgage Loan, the per annum
rate agreed upon in writing on or prior to the Closing Date by the Trustee and
the Depositor.

         Unanticipated Recovery: As defined in Section 4.2(f).

         Undercollateralization Distribution: As defined in Section 4.2(g).

         Undercollateralized Group: With respect to any Distribution Date, the
Senior Certificates of any Certificate Group as to which the aggregate
Certificate Principal Balance thereof, after giving effect to distributions
pursuant to Section 4.2(a) on such date, is greater than the Pool Principal
Balance of the related Mortgage Pool for such Distribution Date.

         Underwriters: As specified in the Preliminary Statement.

         Voting Rights: The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. As of any date of
determination, (a) 98% of all Voting Rights will be allocated among all Holders
of the Certificates, other than the Class I-A-R Certificates, in proportion to
their then outstanding Class Certificate Balances; and (b) 2% of all Voting
Rights will be allocated among the Holders of the Class I-A-R Certificates.

                                   ARTICLE II
                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

               SECTION 2.1 Conveyance of Mortgage Loans.

         (a)   The Depositor, concurrently with the execution and delivery
         hereof, hereby sells, transfers, assigns, sets over and otherwise
         conveys to the Trustee for the benefit of the Certificateholders,
         without recourse, all the right, title and interest of the Depositor in
         and to the Trust Fund together with the Depositor's right (i) to
         require the Seller to cure any breach of representation or warranty
         made by the Seller pursuant to MLPA I and thereafter assigned to
         Depositor pursuant to MLPA II, or (ii) to repurchase or substitute for
         any affected Mortgage Loan in accordance herewith.

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<PAGE>

         (b)   In connection with the transfer and assignment set forth in
         clause (c) above, the Depositor has delivered or caused to be delivered
         to the Trustee or the Custodian on its behalf (or, in the case of the
         Delay Delivery Mortgage Loans, will deliver or cause to be delivered to
         the Trustee or the Custodian on its behalf within thirty (30) days
         following the Closing Date) for the benefit of the Certificateholders
         the following documents or instruments with respect to each Mortgage
         Loan so assigned:

               (i)     (A) the original Mortgage Note endorsed by manual or
                       facsimile signature in blank in the following form: "Pay
                       to the order of ________________, without recourse," with
                       all intervening endorsements showing a complete chain of
                       endorsement from the originator to the Person endorsing
                       the Mortgage Note (each such endorsement being sufficient
                       to transfer all right, title and interest of the party so
                       endorsing, as noteholder or assignee thereof, in and to
                       that Mortgage Note); or

                       (B) with respect to any Lost Mortgage Note, a lost note
                       affidavit from the Seller stating that the original
                       Mortgage Note was lost or destroyed, together with a copy
                       of such Mortgage Note;

               (ii)    except as provided below, the original recorded Mortgage
                       or a copy of such Mortgage certified by the Seller as
                       being a true and complete copy of the Mortgage;

               (iii)   a duly executed assignment of the Mortgage in blank
                       (which may be included in a blanket assignment or
                       assignments), together with, except as provided below,
                       all interim recorded assignments of such mortgage (each
                       such assignment, when duly and validly completed, to be
                       in recordable form and sufficient to effect the
                       assignment of and transfer to the assignee thereof, under
                       the Mortgage to which the assignment relates); provided
                       that, if the related Mortgage has not been returned from
                       the applicable public recording office, such assignment
                       of the Mortgage may exclude the information to be
                       provided by the recording office;

               (iv)    the original or copies of each assumption, modification,
                       written assurance or substitution agreement, if any;

               (v)     either the original or duplicate original title policy
                       (including all riders thereto) with respect to the
                       related mortgaged property, if available, provided that
                       the title policy (including all riders thereto) will be
                       delivered as soon as it becomes available, and if the
                       title policy is not available, and to the extent required
                       pursuant to the second paragraph below or otherwise in
                       connection with the rating of the Certificates, a written
                       commitment or interim binder or preliminary report of the
                       title issued by the title insurance or escrow company
                       with respect to the mortgaged property, and

               (vi)    in the case of a Cooperative Loan, the originals of the
                       following documents or instruments:

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<PAGE>

                    (A)  The Coop Shares, together with a stock power in blank;

                    (B)  The executed Security Agreement;

                    (C)  The executed Proprietary Lease;

                    (D)  The executed Recognition Agreement;

                    (E)  The executed UCC-1 financing statement with evidence of
                         recording thereon which have been filed in all places
                         required to perfect the Seller's interest in the Coop
                         Shares and the Proprietary Lease; and

                    (F)  Executed UCC-3 financing statements or other
                         appropriate UCC financing statements required by state
                         law, evidencing a complete and unbroken line from the
                         mortgagee to the Trustee with evidence of recording
                         thereon (or in a form suitable for recordation).

         In the event that in connection with any Mortgage Loan the Depositor
cannot deliver (a) the original recorded Mortgage or (b) all interim recorded
assignments satisfying the requirements of clause (ii) or (iii) above,
respectively, concurrently with the execution and delivery hereof because such
document or documents have not been returned from the applicable public
recording office, the Depositor shall promptly deliver or cause to be delivered
to the Trustee or the Custodian on its behalf such original Mortgage or such
interim assignment, as the case may be, with evidence of recording indicated
thereon upon receipt thereof from the public recording office, or a copy
thereof, certified, if appropriate, by the relevant recording office, but in no
event shall any such delivery of the original Mortgage and each such interim
assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date;
provided, however, in the event the Depositor is unable to deliver or cause to
be delivered by such date each Mortgage and each such interim assignment by
reason of the fact that any such documents have not been returned by the
appropriate recording office, or, in the case of each such interim assignment,
because the related Mortgage has not been returned by the appropriate recording
office, the Depositor shall deliver or cause to be delivered such documents to
the Trustee or the Custodian on its behalf as promptly as possible upon receipt
thereof and, in any event, within 720 days following the Closing Date. The
Depositor shall forward or cause to be forwarded to the Trustee or the Custodian
on its behalf (a) from time to time additional original documents evidencing an
assumption or modification of a Mortgage Loan and (b) any other documents
required to be delivered by the Depositor or the Master Servicer to the Trustee.
In the event that the original Mortgage is not delivered and in connection with
the payment in full of the related Mortgage Loan and the public recording office
requires the presentation of a "lost instruments affidavit and indemnity" or any
equivalent document, because only a copy of the Mortgage can be delivered with
the instrument of satisfaction or reconveyance, the Master Servicer shall
execute and deliver or cause to be executed and delivered such a document to the
public recording office. In the case where a public recording office retains the
original recorded Mortgage or in the case where a Mortgage is lost after
recordation in a public recording office, the Depositor shall deliver or cause
to be

                                       35

<PAGE>

delivered to the Trustee or the Custodian on its behalf a copy of such Mortgage
certified by such public recording office to be a true and complete copy of the
original recorded Mortgage.

         In addition, in the event that in connection with any Mortgage Loan the
Depositor cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the
applicable public recording office, the Depositor shall promptly deliver or
cause to be delivered to the Trustee or the Custodian on its behalf such
original or duplicate original lender's title policy (together with all riders
thereto) upon receipt thereof from the applicable title insurer, but in no event
shall any such delivery of the original or duplicate original lender's title
policy be made later than one year following the Closing Date; provided,
however, in the event the Depositor is unable to deliver or cause to be
delivered by such date the original or duplicate original lender's title policy
(together with all riders thereto) because the related Mortgage has not been
returned by the appropriate recording office, the Depositor shall deliver or
cause to be delivered such documents to the Trustee or the Custodian on its
behalf as promptly as possible upon receipt thereof and, in any event, within
720 days following the Closing Date. Notwithstanding the preceding, in
connection with any Mortgage Loan for which either the original or duplicate
original title policy has not been delivered to the Trust, if at any time during
the term of this Agreement the parent company of the Seller does not have a long
term senior debt rating of A- or higher from S&P and A- or higher from Fitch (if
rated by Fitch), then the Depositor shall within 30 days deliver or cause to be
delivered to the Trustee or the Custodian on its behalf (if it has not
previously done so) a written commitment or interim binder or preliminary report
of the title issued by the title insurance or escrow company with respect to the
mortgaged property.

         Subject to the immediately following sentence, as promptly as
practicable subsequent to such transfer and assignment, and in any event, within
thirty (30) days thereafter, the Master Servicer shall (i) complete each
assignment of Mortgage, as follows: "First Horizon Mortgage Pass-Through
Certificates, Series 2002-6, The Bank of New York, as trustee for the holders of
the Certificates", (ii) cause such assignment to be in proper form for recording
in the appropriate public office for real property records and (iii) cause to be
delivered for recording in the appropriate public office for real property
records the assignments of the Mortgages to the Trustee, except that, with
respect to any assignments of Mortgage as to which the Master Servicer has not
received the information required to prepare such assignment in recordable form,
the Master Servicer's obligation to do so and to deliver the same for such
recording shall be as soon as practicable after receipt of such information and
in any event within thirty (30) days after receipt thereof. Notwithstanding the
foregoing, the Master Servicer need not cause to be recorded any assignment
which relates to a Mortgage Loan in any state other than the Required
Recordation States.

         In the case of Mortgage Loans that have been prepaid in full as of the
Closing Date, the Depositor, in lieu of delivering the above documents to the
Trustee or the Custodian on its behalf, will deposit in the Certificate Account
the portion of such payment that is required to be deposited in the Certificate
Account pursuant to Section 3.8 hereof.

                                       36

<PAGE>

         Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date, the Depositor shall either (i) deliver or
cause to be delivered to the Trustee or the Custodian on its behalf the Mortgage
File as required pursuant to this Section 2.1 for each Delay Delivery Mortgage
Loan or (ii) (A) substitute or cause to be substituted a Substitute Mortgage
Loan for the Delay Delivery Mortgage Loan or (B) repurchase or cause to be
repurchased the Delay Delivery Mortgage Loan, which substitution or repurchase
shall be accomplished in the manner and subject to the conditions set forth in
Section 2.3 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage
Loan for purposes of such Section 2.3), provided, however, that if the Depositor
fails to deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Depositor shall use its
best reasonable efforts to effect or cause to be effected a substitution, rather
than a repurchase of, such Deleted Mortgage Loan and provided further that the
cure period provided for in Section 2.2 or in Section 2.3 shall not apply to the
initial delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but
rather the Depositor shall have five (5) Business Days to cure or cause to be
cured such failure to deliver. At the end of such thirty-day period, the Trustee
or the Custodian, on its behalf shall send a Delay Delivery Certification for
the Delay Delivery Mortgage Loans delivered during such thirty-day period in
accordance with the provisions of Section 2.2. Notwithstanding anything to the
contrary contained in this Agreement, none of the Mortgage Loans in the Trust
Fund is or will be Delay Delivery Mortgage Loans.

         SECTION 2.2 Acceptance by Trustee of the Mortgage Loans.

         The Trustee or the Custodian, on behalf of the Trustee, acknowledges
receipt of the documents identified in the Initial Certification in the form
annexed hereto as Exhibit E and declares that it or the Custodian holds and will
hold such documents and the other documents delivered to it or the Custodian, as
applicable, constituting the Mortgage Files, and that it or the Custodian, as
applicable, holds or will hold such other assets as are included in the Trust
Fund, in trust for the exclusive use and benefit of all present and future
Certificateholders. The Trustee acknowledges that the Custodian will maintain
possession of the Mortgage Notes in the State of Illinois, unless otherwise
permitted by the Rating Agencies.

         The Trustee agrees to execute and deliver or to cause the Custodian to
execute and deliver on the Closing Date to the Depositor, the Master Servicer
and the Seller an Initial Certification in the form annexed hereto as Exhibit E.
Based on its or the Custodian's review and examination, and only as to the
documents identified in such Initial Certification, the Custodian, on behalf of
the Trustee acknowledges that such documents appear regular on their face and
relate to such Mortgage Loan. Neither the Trustee nor the Custodian shall be
under any duty or obligation to inspect, review or examine said documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.

         On or about the thirtieth (30th) day after the Closing Date, the
Trustee shall deliver or shall cause the Custodian to deliver to the Depositor,
the Master Servicer and the Seller a Delay Delivery Certification in the form
annexed hereto as Exhibit F, with any applicable exceptions noted thereon.
Notwithstanding anything to the contrary contained in this Agreement, none of
the Mortgage Loans in the Trust Fund is or will be Delay Delivery Mortgage
Loans.

                                       37

<PAGE>

         Not later than 90 days after the Closing Date, the Trustee shall
deliver or shall cause the Custodian to deliver to the Depositor, the Master
Servicer and the Seller a Final Certification in the form annexed hereto as
Exhibit G, with any applicable exceptions noted thereon.

         If, in the course of such review, the Trustee or the Custodian, on
behalf of the Trustee finds any document constituting a part of a Mortgage File
which does not meet the requirements of Section 2.1, the Trustee shall list or
shall cause the Custodian to list such as an exception in the Final
Certification; provided, however that neither the Trustee nor the Custodian
shall make any determination as to whether (i) any endorsement is sufficient to
transfer all right, title and interest of the party so endorsing, as noteholder
or assignee thereof, in and to that Mortgage Note or (ii) any assignment is in
recordable form or is sufficient to effect the assignment of and transfer to the
assignee thereof under the mortgage to which the assignment relates. The Seller
shall promptly correct or cure such defect within 90 days from the date it was
so notified of such defect and, if the Seller does not correct or cure such
defect within such period, the Seller shall either (a) substitute for the
related Mortgage Loan a Substitute Mortgage Loan, which substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.3, or (b) purchase such Mortgage Loan from the Trustee within 90 days from the
date the Seller was notified of such defect in writing at the Purchase Price of
such Mortgage Loan; provided, however, that in no event shall such substitution
or purchase occur more than 540 days from the Closing Date, except that if the
substitution or purchase of a Mortgage Loan pursuant to this provision is
required by reason of a delay in delivery of any documents by the appropriate
recording office, and there is a dispute between either the Master Servicer or
the Seller and the Trustee over the location or status of the recorded document,
then such substitution or purchase shall occur within 720 days from the Closing
Date. The Trustee shall deliver written notice to each Rating Agency within 270
days from the Closing Date indicating each Mortgage Loan (a) which has not been
returned by the appropriate recording office or (b) as to which there is a
dispute as to location or status of such Mortgage Loan. Such notice shall be
delivered every 90 days thereafter until the related Mortgage Loan is returned
to the Trustee or the Custodian on its behalf. Any such substitution pursuant to
(a) above or purchase pursuant to (b) above shall not be effected prior to the
delivery to the Trustee of the Opinion of Counsel required by Section 2.5
hereof, if any, and any substitution pursuant to (a) above shall not be effected
prior to the additional delivery to the Trustee of a Request for Release
substantially in the form of Exhibit L. No substitution is permitted to be made
in any calendar month after the Determination Date for such month. The Purchase
Price for any such Mortgage Loan shall be deposited by the Seller in the
Certificate Account on or prior to the Distribution Account Deposit Date for the
Distribution Date in the month following the month of repurchase and, upon
receipt of such deposit and certification with respect thereto in the form of
Exhibit M hereto, the Trustee shall cause the Custodian to release the related
Mortgage File to the Seller and shall execute and deliver at the Seller's
request such instruments of transfer or assignment prepared by the Seller, in
each case without recourse, as shall be necessary to vest in the Seller, or a
designee, the Trustee's interest in any Mortgage Loan released pursuant hereto.

         The Trustee shall retain or shall cause the Custodian to retain
possession and custody of each Mortgage File in accordance with and subject to
the terms and conditions set forth herein. The Master Servicer shall promptly
deliver to the Trustee or the Custodian on its behalf, upon the execution or
receipt thereof, the originals of such other documents or instruments
constituting the Mortgage File as come into the possession of the Master
Servicer from time to time.

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<PAGE>

         It is understood and agreed that the obligation of the Seller to
substitute for or to purchase any Mortgage Loan which does not meet the
requirements of Section 2.1 above shall constitute the sole remedy respecting
such defect available to the Trustee, the Depositor and any Certificateholder
against the Seller.

              SECTION 2.3 Representations, Warranties and Covenants of the
         Seller and Master Servicer.

         (a)  The Master Servicer hereby makes the representations and
         warranties set forth in Schedule II hereto and by this reference
         incorporated herein, to the Depositor and the Trustee, as of the
         Closing Date, or if so specified therein, as of the Cut-off Date.

         (b)  Upon discovery by any of the parties hereto of a breach of a
         representation or warranty made pursuant to Schedule B to MLPA I that
         materially and adversely affects the interests of the
         Certificateholders in any Mortgage Loan, the party discovering such
         breach shall give prompt notice thereof to the other parties. The
         Seller hereby covenants that within 90 days of the earlier of its
         discovery or its receipt of written notice from any party of a breach
         of any representation or warranty made pursuant to Schedule B to MLPA I
         which materially and adversely affects the interests of the
         Certificateholders in any Mortgage Loan, it shall cure such breach in
         all material respects, and if such breach is not so cured, shall, (i)
         if such 90-day period expires prior to the second anniversary of the
         Closing Date, remove such Mortgage Loan (a "Deleted Mortgage Loan")
         from the Trust Fund and substitute in its place a Substitute Mortgage
         Loan, in the manner and subject to the conditions set forth in this
         Section; or (ii) repurchase the affected Mortgage Loan or Mortgage
         Loans from the Trustee at the Purchase Price in the manner set forth
         below; provided, however, that any such substitution pursuant to (i)
         above shall not be effected prior to the delivery to the Trustee of the
         Opinion of Counsel required by Section 2.5 hereof, if any, and any such
         substitution pursuant to (i) above shall not be effected prior to the
         additional delivery to the Trustee or the Custodian on its behalf of a
         Request for Release substantially in the form of Exhibit M and the
         Mortgage File for any such Substitute Mortgage Loan. The Seller shall
         promptly reimburse the Master Servicer and the Trustee for any expenses
         reasonably incurred by the Master Servicer or the Trustee in respect of
         enforcing the remedies for such breach. With respect to the
         representations and warranties described in this Section which are made
         to the best of the Seller's knowledge, if it is discovered by either
         the Depositor, the Seller or the 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
         or the interests of the Certificateholders therein, notwithstanding the
         Seller's lack of knowledge with respect to the substance of such
         representation or warranty, such inaccuracy shall be deemed a breach of
         the applicable representation or warranty.

         With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee or the Custodian on its behalf for the benefit of the
Certificateholders the Mortgage Note, the Mortgage, the related assignment of
the Mortgage, and such other documents and agreements as are required by Section
2.1, with the Mortgage Note endorsed and the Mortgage assigned as required by
Section 2.1. No substitution is permitted to be made in any calendar month after
the Determination Date for such month. Scheduled Payments due with respect to
Substitute

                                       39

<PAGE>

         Mortgage Loans in the month of substitution shall not be part of the
Trust Fund and will be retained by the Seller on the next succeeding
Distribution Date. For the month of substitution, distributions to
Certificateholders will include the monthly payment due on any Deleted Mortgage
Loan for such month and thereafter the Seller shall be entitled to retain all
amounts received in respect of such Deleted Mortgage Loan. The Master Servicer
shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders
to reflect the removal of such Deleted Mortgage Loan and the substitution of the
Substitute Mortgage Loan or Loans and the Master Servicer shall deliver the
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the
Substitute Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to such Substitute Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties made pursuant to Schedule B to
MLPA I with respect to such Mortgage Loan. Upon any such substitution and the
deposit to the Certificate Account of the amount required to be deposited
therein in connection with such substitution as described in the following
paragraph, the Trustee shall release or shall cause the Custodian to release the
Mortgage File held for the benefit of the Certificateholders relating to such
Deleted Mortgage Loan to the Seller and shall execute and deliver at the
Seller's direction such instruments of transfer or assignment prepared by the
Seller, in each case without recourse, as shall be necessary to vest title in
the Seller, or its designee, the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.3.

         For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (if any) by which the aggregate principal balance of all
such Substitute Mortgage Loans as of the date of substitution is less than the
aggregate Stated Principal Balance of all such Deleted Mortgage Loans (after
application of the scheduled principal portion of the monthly payments due in
the month of substitution). The amount of such shortage (the "Substitution
Adjustment Amount") plus an amount equal to the aggregate of any unreimbursed
Advances with respect to such Deleted Mortgage Loans shall be deposited in the
Certificate Account by the Seller on or before the Distribution Account Deposit
Date for the Distribution Date in the month succeeding the calendar month during
which the related Mortgage Loan became required to be purchased or replaced
hereunder.

         In the event that the Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.5 on or before the Distribution Account Deposit Date for
the Distribution Date in the month following the month during which the Seller
became obligated hereunder to repurchase or replace such Mortgage Loan and upon
such deposit of the Purchase Price, the delivery of the Opinion of Counsel
required by Section 2.5 and receipt of a Request for Release in the form of
Exhibit M hereto, the Trustee shall release or shall cause the Custodian to
release the related Mortgage File held for the benefit of the Certificateholders
to such Person, and the Trustee shall execute and deliver or shall cause the
Custodian to execute and deliver at such Person's direction such instruments of
transfer or assignment prepared by such Person, in each case without recourse,
as shall be necessary to transfer title from the Trustee. It is understood and
agreed that the obligation under this Agreement of the Seller to cure,
repurchase or replace any Mortgage Loan as to which a breach has occurred and is
continuing shall constitute the sole remedy against the Seller respecting such
breach available to Certificateholders, the Depositor or the Trustee on their
behalf.

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<PAGE>

         After giving effect to the sale of the Certificates by the Depositor to
the Underwriters, and thereafter, so long as any Certificates remain
outstanding, the Seller, its affiliates and agents, collectively, shall not
beneficially own Certificates the aggregate fair value of which would represent
90% or more of the beneficial interests in the Trust Fund.

         The representations and warranties made pursuant to this Section 2.3
shall survive delivery of the respective Mortgage Files to the Trustee or the
Custodian for the benefit of the Certificateholders.

         SECTION 2.4 Representations and Warranties of the Depositor as to the
Mortgage Loans.

         The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan as of the date hereof or such other date set forth
herein that as of the Closing Date, and following the transfer of the Mortgage
Loans to it pursuant to MLPA II, the Depositor had good title to the Mortgage
Loans and the Mortgage Notes were subject to no offsets, defenses or
counterclaims.

         The Depositor hereby assigns, transfers and conveys to the Trustee all
of its rights with respect to the Mortgage Loans including, without limitation,
the representations and warranties of the Seller made pursuant to Schedule B to
MLPA I and assigned to the Depositor pursuant to MLPA II, together with all
rights of the Depositor to require the Seller to cure any breach thereof or to
repurchase or substitute for any affected Mortgage Loan in accordance with this
Agreement.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.4 shall survive delivery of the Mortgage Files to the
Trustee. Upon discovery by the Depositor or the Trustee of a breach of any of
the foregoing representations and warranties set forth in this Section 2.4
(referred to herein as a "breach"), which breach materially and adversely
affects the interest of the Certificateholders, the party discovering such
breach shall give prompt written notice to the others and to each Rating Agency.

         SECTION 2.5 Delivery of Opinion of Counsel in Connection with
Substitutions.

         (a) Notwithstanding any contrary provision of this Agreement, no
         substitution pursuant to Section 2.2 or Section 2.3 shall be made more
         than 90 days after the Closing Date unless the Seller delivers to the
         Trustee an Opinion of Counsel, which Opinion of Counsel shall not be at
         the expense of either the Trustee or the Trust Fund, addressed to the
         Trustee, to the effect that such substitution will not (i) result in
         the imposition of the tax on "prohibited transactions" on the Trust
         Fund or contributions after the Startup Date, as defined in Sections
         860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause the
         REMIC created hereunder to fail to qualify as a REMIC at any time that
         any Certificates are outstanding.

         (b) Upon discovery by the Depositor, the Seller, the Master Servicer or
         the Trustee that any Mortgage Loan does not constitute a "qualified
         mortgage" within the meaning of Section 860G(a)(3) of the Code, the
         party discovering such fact shall promptly (and in any event within
         five (5) Business Days of discovery) give written notice thereof to the

                                       41

<PAGE>

         other parties. In connection therewith, the Trustee shall require the
         Seller, at the Seller's option, to either (i) substitute, if the
         conditions in Section 2.3(c) with respect to substitutions are
         satisfied, a Substitute Mortgage Loan for the affected Mortgage Loan,
         or (ii) repurchase the affected Mortgage Loan within 90 days of such
         discovery in the same manner as it would a Mortgage Loan for a breach
         of representation or warranty made pursuant to Section 2.3. The Trustee
         shall reconvey or shall cause the Custodian to reconvey to the Seller
         the Mortgage Loan to be released pursuant hereto in the same manner,
         and on the same terms and conditions, as it would a Mortgage Loan
         repurchased for breach of a representation or warranty contained in
         Section 2.3.

               SECTION 2.6 Execution and Delivery of Certificates.

         The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, has executed and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates and to perform the duties set forth in this Agreement to the best
of its ability, to the end that the interests of the Holders of the Certificates
may be adequately and effectively protected.

               SECTION 2.7 REMIC Matters.

         The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all REMIC regular
interests created hereby. The Class I A-R Certificates shall be the sole class
of residual interest in the REMIC created hereunder. The "Startup Day" for
purposes of the REMIC Provisions shall be the Closing Date. The Tax Matters
Person with respect to the REMIC hereunder shall be the Trustee and the Trustee
shall hold the Tax Matters Person Certificate. The REMIC's taxable year shall be
the calendar year and its accounts shall be maintained using the accrual method.

               SECTION 2.8 Covenants of the Master Servicer.

         The Master Servicer hereby covenants to the Depositor and the Trustee
         as follows:

         (a) the Master Servicer shall comply in the performance of its
         obligations under this Agreement with all reasonable rules and
         requirements of the insurer under each Required Insurance Policy; and

         (b) no written information, certificate of an officer, statement
         furnished in writing or written report delivered to the Depositor, any
         affiliate of the Depositor or the Trustee and prepared by the Master
         Servicer pursuant to this Agreement will contain any untrue statement
         of a material fact or omit to state a material fact necessary to make
         such information, certificate, statement or report not misleading.

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                                  ARTICLE III
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         SECTION 3.1 Master Servicer to Service Mortgage Loans.

         For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with the terms of this
Agreement and customary and usual standards of practice of prudent mortgage loan
servicers. In connection with such servicing and administration, the Master
Servicer shall have full power and authority, acting alone and/or through
Subservicers as provided in Section 3.2 hereof, to do or cause to be done any
and all things that it may deem necessary or desirable in connection with such
servicing and administration, including but not limited to, the power and
authority, subject to the terms hereof (i) to execute and deliver, on behalf of
the Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds and other Liquidation Proceeds, and (iv) to effectuate foreclosure or
other conversion of the ownership of the Mortgaged Property securing any
Mortgage Loan; provided that the Master Servicer shall not take any action that
is inconsistent with or prejudices the interests of the Trust Fund or the
Certificateholders in any Mortgage Loan or the rights and interests of the
Depositor, the Trustee and the Certificateholders under this Agreement. The
Master Servicer shall represent and protect the interests of the Trust Fund in
the same manner as it protects its own interests in mortgage loans in its own
portfolio in any claim, proceeding or litigation regarding a Mortgage Loan, and
shall not make or permit any modification, waiver or amendment of any Mortgage
Loan which would cause the REMIC created hereunder to fail to qualify as a REMIC
or result in the imposition of any tax under Section 860F(a) or Section 860G(d)
of the Code. Without limiting the generality of the foregoing, the Master
Servicer, in its own name or in the name of the Depositor and the Trustee, is
hereby authorized and empowered by the Depositor and the Trustee, when the
Master Servicer believes it appropriate in its reasonable judgment, to execute
and deliver, on behalf of the Trustee, the Depositor, the Certificateholders or
any of them, any and all instruments of satisfaction or cancellation, or of
partial or full release or discharge and all other comparable instruments, with
respect to the Mortgage Loans, and with respect to the Mortgaged Properties held
for the benefit of the Certificateholders. The Master Servicer shall prepare and
deliver to the Depositor and/or the Trustee such documents requiring execution
and delivery by either or both of them as are necessary or appropriate to enable
the Master Servicer to service and administer the Mortgage Loans to the extent
that the Master Servicer is not permitted to execute and deliver such documents
pursuant to the preceding sentence. Upon receipt of such documents, the
Depositor and/or the Trustee shall execute such documents and deliver them to
the Master Servicer.

         In accordance with the standards of the preceding paragraph, the Master
Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.6, and further as
provided in Section 3.8. The costs incurred by the Master Servicer, if any, in
effecting the timely payments of taxes and assessments on the Mortgaged
Properties and related insurance premiums shall not, for the purpose of
calculating monthly distributions to the Certificateholders, be added

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to the Stated Principal Balances of the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

          SECTION 3.2 Subservicing; Enforcement of the Obligations of Servicers.

     (a)  The Master Servicer may arrange for the subservicing of any Mortgage
     Loan by a Subservicer pursuant to a subservicing agreement; provided,
     however, that such subservicing arrangement and the terms of the related
     subservicing agreement must provide for the servicing of such Mortgage
     Loans in a manner consistent with the servicing arrangements contemplated
     hereunder. Unless the context otherwise requires, references in this
     Agreement to actions taken or to be taken by the Master Servicer in
     servicing the Mortgage Loans include actions taken or to be taken by a
     Subservicer on behalf of the Master Servicer. Notwithstanding the
     provisions of any subservicing agreement, any of the provisions of this
     Agreement relating to agreements or arrangements between the Master
     Servicer and a Subservicer or reference to actions taken through a
     Subservicer or otherwise, the Master Servicer shall remain obligated and
     liable to the Depositor, the Trustee and the Certificateholders for the
     servicing and administration of the Mortgage Loans in accordance with the
     provisions of this Agreement without diminution of such obligation or
     liability by virtue of such subservicing agreements or arrangements or by
     virtue of indemnification from the Subservicer and to the same extent and
     under the same terms and conditions as if the Master Servicer alone were
     servicing and administering the Mortgage Loans. All actions of each
     Subservicer performed pursuant to the related subservicing agreement shall
     be performed as an agent of the Master Servicer with the same force and
     effect as if performed directly by the Master Servicer.

     (b)  For purposes of this Agreement, the Master Servicer shall be deemed to
     have received any collections, recoveries or payments with respect to the
     Mortgage Loans that are received by a Subservicer regardless of whether
     such payments are remitted by the Subservicer to the Master Servicer.

          SECTION 3.3 Rights of the Depositor and the Trustee in Respect of the
     Master Servicer.

     The Depositor may, but is not obligated to, enforce the obligations of
the Master Servicer hereunder and may, but is not obligated to, perform, or
cause a designee to perform, any defaulted obligation of the Master Servicer
hereunder and in connection with any such defaulted obligation to exercise the
related rights of the Master Servicer hereunder; provided that the Master
Servicer shall not be relieved of any of its obligations hereunder by virtue of
such performance by the Depositor or its designee. Neither the Trustee nor the
Depositor shall have any responsibility or liability for any action or failure
to act by the Master Servicer nor shall the Trustee or the Depositor be
obligated to supervise the performance of the Master Servicer hereunder or
otherwise.

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<PAGE>

          SECTION 3.4 Trustee to Act as Master Servicer.

     In the event that the Master Servicer shall for any reason no longer be the
Master Servicer hereunder (including by reason of an Event of Default), the
Trustee or its successor shall thereupon assume all of the rights and
obligations of the Master Servicer hereunder arising thereafter (except that the
Trustee shall not be (i) liable for losses of the Master Servicer pursuant to
Section 3.9 hereof or any acts or omissions of the predecessor Master Servicer
hereunder), (ii) obligated to make Advances if it is prohibited from doing so by
applicable law, (iii) obligated to effectuate repurchases or substitutions of
Mortgage Loans hereunder including, but not limited to, repurchases or
substitutions of Mortgage Loans pursuant to Section 2.2 or 2.3 hereof, (iv)
responsible for expenses of the Master Servicer pursuant to Section 2.3 or (v)
deemed to have made any representations and warranties of the Master Servicer
hereunder). Any such assumption shall be subject to Section 7.2 hereof. If the
Master Servicer shall for any reason no longer be the Master Servicer (including
by reason of any Event of Default), the Trustee or its successor shall succeed
to any rights and obligations of the Master Servicer under each subservicing
agreement.

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

          SECTION 3.5 Collection of Mortgage Loan Payments; Certificate Account;
     Distribution Account.

     (a)  The Master Servicer shall make reasonable efforts in accordance with
     the customary and usual standards of practice of prudent mortgage servicers
     to collect all payments called for under the terms and provisions of the
     Mortgage Loans to the extent such procedures shall be consistent with this
     Agreement and the terms and provisions of any related Required Insurance
     Policy. Consistent with the foregoing, the Master Servicer may in its
     discretion (i) waive any late payment charge or any prepayment charge or
     penalty interest in connection with the prepayment of a Mortgage Loan and
     (ii) extend the due dates for payments due on a Mortgage Note for a period
     not greater than 180 days; provided, however, that the Master Servicer
     cannot extend the maturity of any such Mortgage Loan past the date on which
     the final payment is due on the latest maturing Mortgage Loan as of the
     Cut-off Date. In the event of any such arrangement, the Master Servicer
     shall make Advances on the related Mortgage Loan in accordance with the
     provisions of Section 4.1 during the scheduled period in accordance with
     the amortization schedule of such Mortgage Loan without modification
     thereof by reason of such arrangements. The Master Servicer shall not be
     required to institute or join in litigation with respect to collection of
     any payment (whether under a Mortgage, Mortgage Note or otherwise or
     against any public or governmental authority with respect to a taking or
     condemnation) if it reasonably believes that enforcing the provision of the
     Mortgage or other instrument pursuant to which such payment is required is
     prohibited by applicable law.

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<PAGE>

     (b) The Master Servicer shall establish and maintain the Certificate
     Account. The Certificate Account shall consist of two separate subaccounts,
     each of which shall relate to a particular Mortgage Pool. No later than two
     Business Days after receipt, except as otherwise specifically provided
     herein, the Master Servicer shall deposit or shall cause to be deposited
     into the applicable subaccount of the Certificate Account the following
     payments and collections remitted by Subservicers or received by it in
     respect of the Mortgage Loans in the related Mortgage Pool subsequent to
     the Cut-off Date (other than in respect of principal and interest due on
     such Mortgage Loans on or before the Cut-off Date) and the following
     amounts required to be deposited hereunder:

          (i)    all payments on account of principal on the Mortgage Loans in
                 the related Mortgage Pool, including Principal Prepayments;

          (ii)   all payments on account of interest on the Mortgage Loans in
                 the related Mortgage Pool, net of the related Master Servicing
                 Fee, any Prepayment Interest Excess and, for so long as First
                 Horizon is the Master Servicer, any Retained Yield;

          (iii)  all Insurance Proceeds and Liquidation Proceeds in respect of
                 the related Mortgage Loans in the related Mortgage Pool, other
                 than proceeds to be applied to the restoration or repair of the
                 Mortgaged Property or released to the Mortgagor in accordance
                 with the Master Servicer's normal servicing procedures;

          (iv)   any amount required to be deposited by the Master Servicer in
                 respect of the related Mortgage Pool pursuant to Section 3.5(c)
                 in connection with any losses on Permitted Investments;

          (v)    any amounts required to be deposited by the Master Servicer in
                 respect of the related Mortgage Pool pursuant to Section
                 3.9(b), 3.9(d), and in respect of net monthly rental income
                 from any related REO Property pursuant to Section 3.11 hereof;

          (vi)   all Substitution Adjustment Amounts in respect of the related
                 Mortgage Pool;

          (vii)  all Advances in respect of the related Mortgage Pool made by
                 the Master Servicer pursuant to Section 4.1; and

          (viii) any other amounts required to be deposited hereunder in respect
                 of the related Mortgage Pool.

          In addition, with respect to any Mortgage Loan that is subject to a
     buydown agreement, on each Due Date for such Mortgage Loan, in addition to
     the monthly payment remitted by the Mortgagor, the Master Servicer shall
     cause funds to be deposited into the applicable subaccount of the
     Certificate Account in an amount required to cause an amount of interest to
     be paid with respect to such Mortgage Loan equal to the amount

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<PAGE>

     of interest that has accrued on such Mortgage Loan from the preceding Due
     Date at the related Adjusted Mortgage Rate on such date.

          The foregoing requirements for remittance by the Master Servicer shall
     be exclusive, it being understood and agreed that, without limiting the
     generality of the foregoing, payments in the nature of prepayment
     penalties, late payment charges, assumption fees or amounts attributable to
     reimbursements of Advances, if collected, need not be remitted by the
     Master Servicer. In the event that the Master Servicer shall remit any
     amount not required to be remitted, it may at any time withdraw or direct
     the institution maintaining the Certificate Account to withdraw such amount
     from the Certificate Account, any provision herein to the contrary
     notwithstanding. Such withdrawal or direction may be accomplished by
     delivering written notice thereof to the Trustee or such other institution
     maintaining the Certificate Account which describes the amounts deposited
     in error in the Certificate Account. The Master Servicer shall maintain
     adequate records with respect to all withdrawals made pursuant to this
     Section. All funds deposited in the Certificate Account shall be held in
     trust for the Certificateholders until withdrawn in accordance with Section
     3.8.

     (c)  The Trustee shall establish and maintain, on behalf of the
     Certificateholders, the Distribution Account. The Distribution Account
     shall consist of two separate subaccounts, each of which shall relate to a
     particular Mortgage Pool. The Trustee shall, promptly upon receipt, deposit
     in the Distribution Account and retain therein the following:

          (i)    the aggregate amount remitted by the Master Servicer to the
                 Trustee in respect of a Mortgage Pool pursuant to Section
                 3.8(a)(ix);

          (ii)   any amount deposited by the Master Servicer pursuant to this
                 Section 3.5(c) in connection with any losses on Permitted
                 Investments; and

          (iii)  any other amounts deposited hereunder which are required to be
                 deposited in the Distribution Account.

          In the event that the Master Servicer shall remit any amount not
     required to be remitted, it may at any time direct the Trustee to withdraw
     such amount from the applicable subaccount of the Distribution Account, any
     provision herein to the contrary notwithstanding. Such direction may be
     accomplished by delivering an Officer's Certificate to the Trustee which
     describes the amounts deposited in error in the Distribution Account. All
     funds deposited in the Distribution Account shall be held by the Trustee in
     trust for the related Certificateholders until disbursed in accordance with
     this Agreement or withdrawn in accordance with Section 3.8. In no event
     shall the Trustee incur liability for withdrawals from the Distribution
     Account at the direction of the Master Servicer.

          (iv)   The institutions at which the Certificate Account and the
                 Distribution Account are maintained shall invest funds as
                 directed by the Master Servicer in Permitted Investments which
                 in both cases shall mature not

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                 later than (i) in the case of the Certificate Account, the
                 second Business Day next preceding the related Distribution
                 Account Deposit Date (except that if such Permitted Investment
                 is an obligation of the institution that maintains such
                 account, then such Permitted Investment shall mature not later
                 than the Business Day next preceding such Distribution Account
                 Deposit Date) and (ii) in the case of the Distribution Account,
                 the Business Day next preceding the Distribution Date (except
                 that if such Permitted Investment is an obligation of the
                 institution that maintains such fund or account, then such
                 Permitted Investment shall mature not later than such
                 Distribution Date) and, in each case, shall not be sold or
                 disposed of prior to its maturity. All such Permitted
                 Investments shall be made in the name of the Trustee, for the
                 benefit of the Certificateholders. All income and gain net of
                 any losses realized from any such investment of funds on
                 deposit in the Certificate Account shall be for the benefit of
                 the Master Servicer as servicing compensation and all income
                 and gain net of any losses realized from any such investment of
                 funds on deposit in the Distribution Account shall be for the
                 benefit of the Trustee. The amount of any Realized Losses in
                 the Certificate Account in respect of any such investments
                 shall promptly be deposited by the Master Servicer in the
                 Certificate Account and the amount of any Realized Losses in
                 the Distribution Account in respect of any such investments
                 shall promptly be deposited by the Trustee into the
                 Distribution Account. All reinvestment income earned on amounts
                 on deposit in the Distribution Account shall be for the benefit
                 of the Trustee. The Trustee in its fiduciary capacity shall not
                 be liable for the amount of any loss incurred in respect of any
                 investment or lack of investment of funds held in the
                 Certificate Account and made in accordance with this Section
                 3.5.

          (v)    The Master Servicer shall give notice to the Trustee, the
                 Seller, each Rating Agency and the Depositor of any proposed
                 change of the location of the Certificate Account prior to any
                 change thereof. The Trustee shall give notice to the Master
                 Servicer, the Seller, each Rating Agency and the Depositor of
                 any proposed change of the location of the Distribution Account
                 prior to any change thereof.

          SECTION 3.6 Collection of Taxes, Assessments and Similar Items; Escrow
     Accounts.

     (a)  To the extent required by the related Mortgage Note and not violative
     of current law, the Master Servicer shall establish and maintain one or
     more accounts (each, an "Escrow Account") and deposit and retain therein
     all collections from the Mortgagors (or advances by the Master Servicer)
     for the payment of taxes, assessments, hazard insurance premiums or
     comparable items for the account of the Mortgagors. Nothing herein shall
     require the Master Servicer to compel a Mortgagor to establish an Escrow
     Account in violation of applicable law.

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     (b)  Withdrawals of amounts so collected from the Escrow Accounts may be
     made only to effect timely payment of taxes, assessments, hazard insurance
     premiums, condominium or PUD association dues, or comparable items, to
     reimburse the Master Servicer out of related collections for any payments
     made pursuant to Sections 3.1 hereof (with respect to taxes and assessments
     and insurance premiums) and 3.9 hereof (with respect to hazard insurance),
     to refund to any Mortgagors any sums determined to be overages, to pay
     interest, if required by law or the terms of the related Mortgage or
     Mortgage Note, to Mortgagors on balances in the Escrow Account or to clear
     and terminate the Escrow Account at the termination of this Agreement in
     accordance with Section 9.1 hereof. The Escrow Accounts shall not be a part
     of the Trust Fund.

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

          SECTION 3.7 Access to Certain Documentation and Information Regarding
     the Mortgage Loans.

     The Master Servicer shall afford the Depositor and the Trustee reasonable
access to all records and documentation regarding the Mortgage Loans and all
accounts, insurance information and other matters relating to this Agreement,
such access being afforded without charge, but only upon reasonable request and
during normal business hours at the office designated by the Master Servicer.

     Upon reasonable advance notice in writing, the Master Servicer will provide
to each Certificateholder which is a savings and loan association, bank or
insurance company certain reports and reasonable access to information and
documentation regarding the Mortgage Loans sufficient to permit such
Certificateholder to comply with applicable regulations of the OTS or other
regulatory authorities with respect to investment in the Certificates; provided
that the Master Servicer shall be entitled to be reimbursed by each such
Certificateholder for actual expenses incurred by the Master Servicer in
providing such reports and access.

          SECTION 3.8 Permitted Withdrawals from the Certificate Account and
     Distribution Account.

     (a)  The Master Servicer may from time to time make withdrawals from the
     applicable subaccount of the Certificate Account for the following
     purposes:

          (i)  to the extent not previously retained by the Master Servicer, to
               pay to First Horizon the Retained Yield and to pay to the Master
               Servicer the master servicing compensation to which it is
               entitled pursuant to Section 3.14, and earnings on or investment
               income with respect to funds in or credited to the Certificate
               Account as additional master servicing compensation;

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<PAGE>

          (ii)    to the extent not previously retained by the Master Servicer,
                  to reimburse the Master Servicer for unreimbursed Advances
                  made by it in respect of the related Mortgage Pool, such right
                  of reimbursement pursuant to this subclause (ii) being limited
                  to amounts received on the Mortgage Loan(s) in respect of
                  which any such Advance was made;

          (iii)   to reimburse the Master Servicer for any Nonrecoverable
                  Advance previously made in respect of the related Mortgage
                  Pool;

          (iv)    to reimburse the Master Servicer for Insured Expenses from the
                  related Insurance Proceeds in respect of the related Mortgage
                  Pool;

          (v)     to reimburse the Master Servicer for (a) unreimbursed
                  Servicing Advances in respect of the related Mortgage Pool,
                  the Master Servicer's right to reimbursement pursuant to this
                  clause (a) with respect to any Mortgage Loan being limited to
                  amounts received on such Mortgage Loan(s) which represent late
                  recoveries of the payments for which such advances were made
                  pursuant to Section 3.1 or Section 3.6 and (b) for unpaid
                  Master Servicing Fees as provided in Section 3.11 hereof;

          (vi)    to pay to the Seller, with respect to each Mortgage Loan in
                  respect of the related Mortgage Pool or property acquired in
                  respect thereof that has been purchased pursuant to Section
                  2.2, 2.3 or 3.11, all amounts received thereon after the date
                  of such purchase;

          (vii)   to reimburse the Seller, the Master Servicer or the Depositor
                  for expenses incurred by any of them and reimbursable pursuant
                  to Section 6.3 hereof;

          (viii)  to withdraw any amount deposited in the Certificate Account
                  and not required to be deposited therein;

          (ix)    on or prior to the Distribution Account Deposit Date, to
                  withdraw an amount equal to the related Available Funds and
                  the Trustee Fee for such Distribution Date and remit such
                  amount to the Trustee for deposit in the Distribution Account;
                  and

          (x)     to clear and terminate the Certificate Account upon
                  termination of this Agreement pursuant to Section 9.1 hereof.

          The Master Servicer shall keep and maintain separate accounting, on a
     Mortgage Loan by Mortgage Loan basis and on a Mortgage Pool by Mortgage
     Pool basis, for the purpose of justifying any withdrawal from the
     Certificate Account pursuant to such subclauses (i), (ii), (iv), (v) and
     (vi). Prior to making any withdrawal from the Certificate Account pursuant
     to subclause (iii), the Master Servicer shall deliver to the Trustee an
     Officer's Certificate of a Servicing Officer indicating the amount of any
     previous Advance determined by the Master Servicer to be a Nonrecoverable
     Advance and identifying the related Mortgage Loans(s), and their respective
     portions of such Nonrecoverable Advance.

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<PAGE>

          The Master Servicer shall distribute the Retained Yield, if any, to
     First Horizon on each Distribution Account Deposit Date during the term of
     this Agreement.

     (b)  The Trustee shall withdraw funds from the applicable subaccount of the
     Distribution Account for distributions to the related Certificateholders in
     the manner specified in this Agreement (and to withhold from the amounts so
     withdrawn, the amount of any taxes that it is authorized to withhold
     pursuant to the last paragraph of Section 8.11). In addition, the Trustee
     may prior to making the distribution pursuant to Section 4.2 from time to
     time make withdrawals from the Distribution Account for the following
     purposes:

          (i)     to pay to itself the Trustee Fee for the related Distribution
                  Date;

          (ii)    to pay to itself earnings on or investment income with respect
                  to funds in the Distribution Account;

          (iii)   to withdraw and return to the Master Servicer any amount
                  deposited in the Distribution Account and not required to be
                  deposited therein; and

          (iv)    to clear and terminate the Distribution Account upon
                  termination of the Agreement pursuant to Section 9.1 hereof.

          SECTION 3.9 Maintenance of Hazard Insurance; Maintenance of Primary
     Insurance Policies.

     (a)  The Master Servicer shall cause to be maintained, for each Mortgage
     Loan, hazard insurance with extended coverage in an amount that is at least
     equal to the lesser of (i) the maximum insurable value of the improvements
     securing such Mortgage Loan or (ii) the greater of (y) the outstanding
     principal balance of the Mortgage Loan and (z) an amount such that the
     proceeds of such policy shall be sufficient to prevent the Mortgagor and/or
     the mortgagee from becoming a co-insurer. Each such policy of standard
     hazard insurance shall contain, or have an accompanying endorsement that
     contains, a standard mortgagee clause. Any amounts collected by the Master
     Servicer under any such policies (other than the amounts to be applied to
     the restoration or repair of the related Mortgaged Property or amounts
     released to the Mortgagor in accordance with the Master Servicer's normal
     servicing procedures) shall be deposited in the applicable subaccount of
     the Certificate Account. Any cost incurred by the Master Servicer in
     maintaining any such insurance shall not, for the purpose of calculating
     monthly distributions to the Certificateholders or remittances to the
     Trustee for their benefit, be added to the principal balance of the
     Mortgage Loan, notwithstanding that the terms of the Mortgage Loan so
     permit. Such costs shall be recoverable by the Master Servicer out of late
     payments by the related Mortgagor or out of Liquidation Proceeds to the
     extent permitted by Section 3.8 hereof. It is understood and agreed that no
     earthquake or other additional insurance is to be required of any Mortgagor
     or maintained on property acquired in respect of a Mortgage other than
     pursuant to such applicable laws and regulations as shall at any time be in
     force and as shall require such additional insurance. If the Mortgaged
     Property is located at the time of origination of the Mortgage Loan in a
     federally designated special

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<PAGE>

     flood hazard area and such area is participating in the national flood
     insurance program, the Master Servicer shall cause flood insurance to be
     maintained with respect to such Mortgage Loan. Such flood insurance shall
     be in an amount equal to the least of (i) the original principal balance of
     the related Mortgage Loan, (ii) the replacement value of the improvements
     which are part of such Mortgaged Property, and (iii) the maximum amount of
     such insurance available for the related Mortgaged Property under the
     national flood insurance program.

     (b)  In the event that the Master Servicer shall obtain and maintain a
     blanket policy insuring against hazard losses on all of the Mortgage Loans,
     it shall conclusively be deemed to have satisfied its obligations as set
     forth in the first sentence of this Section, it being understood and agreed
     that such policy may contain a deductible clause on terms substantially
     equivalent to those commercially available and maintained by comparable
     servicers. If such policy contains a deductible clause, the Master Servicer
     shall, in the event that there shall not have been maintained on the
     related Mortgaged Property a policy complying with the first sentence of
     this Section, and there shall have been a loss that would have been covered
     by such policy, deposit in the applicable subaccount of the Certificate
     Account the amount not otherwise payable under the blanket policy because
     of such deductible clause. In connection with its activities as Master
     Servicer of the Mortgage Loans, the Master Servicer agrees to present, on
     behalf of itself, the Depositor, and the Trustee for the benefit of the
     Certificateholders, claims under any such blanket policy.

     (c)  The Master Servicer shall not take any action which would result in
     non-coverage under any applicable Primary Insurance Policy of any loss
     which, but for the actions of the Master Servicer, would have been covered
     thereunder. The Master Servicer shall not cancel or refuse to renew any
     such Primary Insurance Policy that is in effect at the date of the initial
     issuance of the Certificates and is required to be kept in force hereunder
     unless the replacement Primary Insurance Policy for such canceled or
     non-renewed policy is maintained with a Qualified Insurer.

     The Master Servicer shall not be required to maintain any Primary Insurance
Policy (i) with respect to any Mortgage Loan with a Loan-to-Value Ratio less
than or equal to 80% as of any date of determination or, based on a new
appraisal, the principal balance of such Mortgage Loan represents 80% or less of
the new appraised value or (ii) if maintaining such Primary Insurance Policy is
prohibited by applicable law.

     The Master Servicer agrees to effect the timely payment of the premiums on
each Primary Insurance Policy, and such costs not otherwise recoverable shall be
recoverable by the Master Servicer from the related liquidation proceeds.

     (d)  In connection with its activities as Master Servicer of the Mortgage
     Loans, the Master Servicer agrees to present on behalf of itself, the
     Trustee and Certificateholders, claims to the insurer under any Primary
     Insurance Policies and, in this regard, to take such reasonable action as
     shall be necessary to permit recovery under any Primary Insurance Policies
     respecting defaulted Mortgage Loans. Any amounts collected by the

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     Master Servicer under any Primary Insurance Policies shall be deposited in
     the applicable subaccount of the Certificate Account.

          SECTION 3.10 Enforcement of Due-on-Sale Clauses; Assumption
     Agreements.

     (a)  Except as otherwise provided in this Section, when any property
     subject to a Mortgage has been conveyed by the Mortgagor, the Master
     Servicer shall to the extent that it has knowledge of such conveyance,
     enforce any due-on-sale clause contained in any Mortgage Note or Mortgage,
     to the extent permitted under applicable law and governmental regulations,
     but only to the extent that such enforcement will not adversely affect or
     jeopardize coverage under any Required Insurance Policy. Notwithstanding
     the foregoing, the Master Servicer is not required to exercise such rights
     with respect to a Mortgage Loan if the Person to whom the related Mortgaged
     Property has been conveyed or is proposed to be conveyed satisfies the
     terms and conditions contained in the Mortgage Note and Mortgage related
     thereto and the consent of the mortgagee under such Mortgage Note or
     Mortgage is not otherwise so required under such Mortgage Note or Mortgage
     as a condition to such transfer. In the event that the Master Servicer is
     prohibited by law from enforcing any such due-on-sale clause, or if
     coverage under any Required Insurance Policy would be adversely affected,
     or if nonenforcement is otherwise permitted hereunder, the Master Servicer
     is authorized, subject to Section 3.10(b), to take or enter into an
     assumption and modification agreement from or with the person to whom such
     property has been or is about to be conveyed, pursuant to which such person
     becomes liable under the Mortgage Note and, unless prohibited by applicable
     state law, the Mortgagor remains liable thereon, provided that the Mortgage
     Loan shall continue to be covered (if so covered before the Master Servicer
     enters such agreement) by the applicable Required Insurance Policies. The
     Master Servicer, subject to Section 3.10(b), is also authorized with the
     prior approval of the insurers under any Required Insurance Policies to
     enter into a substitution of liability agreement with such Person, pursuant
     to which the original Mortgagor is released from liability and such Person
     is substituted as Mortgagor and becomes liable under the Mortgage Note.
     Notwithstanding the foregoing, the Master Servicer shall not be deemed to
     be in default under this Section by reason of any transfer or assumption
     which the Master Servicer reasonably believes it is restricted by law from
     preventing, for any reason whatsoever.

     (b)  Subject to the Master Servicer's duty to enforce any due-on-sale
     clause to the extent set forth in Section 3.10(a) hereof, in any case in
     which a Mortgaged Property has been conveyed to a Person by a Mortgagor,
     and such Person is to enter into an assumption agreement or modification
     agreement or supplement to the Mortgage Note or Mortgage that requires the
     signature of the Trustee, or if an instrument of release signed by the
     Trustee is required releasing the Mortgagor from liability on the Mortgage
     Loan, the Master Servicer shall prepare and deliver or cause to be prepared
     and delivered to the Trustee for signature and shall direct, in writing,
     the Trustee to execute the assumption agreement with the Person to whom the
     Mortgaged Property is to be conveyed and such modification agreement or
     supplement to the Mortgage Note or Mortgage or other instruments as are
     reasonable or necessary to carry out the terms of the Mortgage Note or
     Mortgage or otherwise to comply with any applicable laws regarding
     assumptions or the transfer of the Mortgaged Property to such Person. In
     connection with any such

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<PAGE>

     assumption, no material term of the Mortgage Note may be changed. In
     addition, the substitute Mortgagor and the Mortgaged Property must be
     acceptable to the Master Servicer in accordance with its underwriting
     standards as then in effect. Together with each such substitution,
     assumption or other agreement or instrument delivered to the Trustee for
     execution by it, the Master Servicer shall deliver an Officer's Certificate
     signed by a Servicing Officer stating that the requirements of this
     subsection have been met in connection therewith. The Master Servicer shall
     notify the Trustee that any such substitution or assumption agreement has
     been completed by forwarding to the Trustee the original of such
     substitution or assumption agreement, which in the case of the original
     shall be added to the related Mortgage File and shall, for all purposes, be
     considered a part of such Mortgage File to the same extent as all other
     documents and instruments constituting a part thereof. Any fee collected by
     the Master Servicer for entering into an assumption or substitution of
     liability agreement will be retained by the Master Servicer as additional
     servicing compensation.

          SECTION 3.11 Realization Upon Defaulted Mortgage Loans; Repurchase of
     Certain Mortgage Loans.

     The Master Servicer shall use reasonable efforts to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. In
connection with such foreclosure or other conversion, the Master Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual in its general mortgage servicing activities and
meet the requirements of the insurer under any Required Insurance Policy;
provided, however, that the Master Servicer shall not be required to expend its
own funds in connection with any foreclosure or towards the restoration of any
property unless it shall determine (i) that such restoration and/or foreclosure
will increase the proceeds of liquidation of the Mortgage Loan after
reimbursement to itself of such expenses and (ii) that such expenses will be
recoverable to it through Liquidation Proceeds (respecting which it shall have
priority for purposes of withdrawals from the Certificate Account). The Master
Servicer shall be responsible for all other costs and expenses incurred by it in
any such proceedings; provided, however, that it shall be entitled to
reimbursement thereof from the liquidation proceeds with respect to the related
Mortgaged Property, as provided in the definition of Liquidation Proceeds. If
the Master Servicer has knowledge that a Mortgaged Property which the Master
Servicer is contemplating acquiring in foreclosure or by deed in lieu of
foreclosure is located within a 1 mile radius of any site listed in the
Expenditure Plan for the Hazardous Substance Clean Up Bond Act of 1984 or other
site with environmental or hazardous waste risks known to the Master Servicer,
the Master Servicer will, prior to acquiring the Mortgaged Property, consider
such risks and only take action in accordance with its established environmental
review procedures.

     With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trust Fund for the benefit of the Certificateholders,
or its nominee, on behalf of the Certificateholders. The Master Servicer shall
ensure that the title to such REO Property references the Pooling and Servicing
Agreement and the Trust Fund's capacity thereunder. Pursuant to its efforts to
sell such REO Property, the Master Servicer shall either itself or through an
agent selected by the Master Servicer protect and conserve such REO Property in
the same

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<PAGE>

manner and to such extent as is customary in the locality where such REO
Property is located and may, incident to its conservation and protection of the
interests of the Certificateholders, rent the same, or any part thereof, as the
Master Servicer deems to be in the best interest of the Certificateholders for
the period prior to the sale of such REO Property. The Master Servicer shall
prepare for and deliver to the Trustee a statement with respect to each REO
Property that has been rented showing the aggregate rental income received and
all expenses incurred in connection with the management and maintenance of such
REO Property at such times as is necessary to enable the Trustee to comply with
the reporting requirements of the REMIC Provisions. The net monthly rental
income, if any, from such REO Property shall be deposited in the Certificate
Account no later than the close of business on each Determination Date. The
Master Servicer shall perform the tax reporting and withholding required by
Sections 1445 and 6050J of the Code with respect to foreclosures and
abandonments, the tax reporting required by Section 6050H of the Code with
respect to the receipt of mortgage interest from individuals and any tax
reporting required by Section 6050P of the Code with respect to the cancellation
of indebtedness by certain financial entities, by preparing such tax and
information returns as may be required, in the form required, and delivering the
same to the Trustee for filing.

     In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property
prior to the close of the third taxable year after the taxable year of its
acquisition by the Trust Fund unless the Trustee shall have been supplied with
an Opinion of Counsel to the effect that the holding by the Trust Fund of such
Mortgaged Property subsequent to such three-year period will not result in the
imposition of taxes on "prohibited transactions" of the REMIC hereunder as
defined in Section 860F of the Code or cause the REMIC created hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding, in
which case the Trust Fund may continue to hold such Mortgaged Property (subject
to any conditions contained in such Opinion of Counsel). Notwithstanding any
other provision of this Agreement, no Mortgaged Property acquired by the Trust
Fund shall be rented (or allowed to continue to be rented) or otherwise used for
the production of income by or on behalf of the Trust Fund in such a manner or
pursuant to any terms that would (i) cause such Mortgaged Property to fail to
qualify as "foreclosure property" within the meaning of Section 860G(a)(8) of
the Code or (ii) subject the REMIC hereunder to the imposition of any federal,
state or local income taxes on the income earned from such Mortgaged Property
under Section 860G(c) of the Code or otherwise, unless the Master Servicer has
agreed to indemnify and hold harmless the Trust Fund with respect to the
imposition of any such taxes.

     In the event of a default on a Mortgage Loan one or more of whose obligor
is not a United States Person, as that term is defined in Section 7701(a)(30) of
the Code, in connection with any foreclosure or acquisition of a deed in lieu of
foreclosure (together, "foreclosure") in respect of such Mortgage Loan, the
Master Servicer will cause compliance with the provisions of Treasury Regulation
Section 1.1445-2(d)(3) (or any successor thereto) necessary to assure that no
withholding tax obligation arises with respect to the proceeds of such
foreclosure except to the extent, if any, that proceeds of such foreclosure are
required to be remitted to the obligors on such Mortgage Loan.

     The decision of the Master Servicer to foreclose on a defaulted Mortgage
Loan shall be subject to a determination by the Master Servicer that the
proceeds of such foreclosure would

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<PAGE>

exceed the costs and expenses of bringing such a proceeding. The income earned
from the management of any REO Properties, net of reimbursement to the Master
Servicer for expenses incurred (including any property or other taxes) in
connection with such management and net of unreimbursed Master Servicing Fees,
Advances and Servicing Advances, shall be applied to the payment of principal of
and interest on the related defaulted Mortgage Loans (with interest accruing as
though such Mortgage Loans were still current) and all such income shall be
deemed, for all purposes in this Agreement, to be payments on account of
principal and interest on the related Mortgage Notes and shall be deposited into
the applicable subaccount of the Certificate Account. To the extent the net
income received during any calendar month is in excess of the amount
attributable to amortizing principal and accrued interest at the related
Mortgage Rate on the related Mortgage Loan for such calendar month, such excess
shall be considered to be a partial prepayment of principal of the related
Mortgage Loan.

     The proceeds from any liquidation of a Mortgage Loan, as well as any income
from an REO Property, will be applied in the following order of priority: first,
to reimburse the Master Servicer for any related unreimbursed Servicing Advances
and Master Servicing Fees; second, to reimburse the Master Servicer for any
unreimbursed Advances; third, to reimburse the applicable subaccount of the
Certificate Account for any Nonrecoverable Advances (or portions thereof) that
were previously withdrawn by the Master Servicer pursuant to Section 3.8(a)(iii)
that related to such Mortgage Loan; fourth, to accrued and unpaid interest (to
the extent no Advance has been made for such amount or any such Advance has been
reimbursed) on the Mortgage Loan or related REO Property, at the Adjusted Net
Mortgage Rate to the Due Date occurring in the month in which such amounts are
required to be distributed; and fifth, as a recovery of principal of the
Mortgage Loan. Excess Proceeds, if any, from the liquidation of a Liquidated
Mortgage Loan will be retained by the Master Servicer as additional servicing
compensation pursuant to Section 3.14.

     The Master Servicer, with the consent of the Trustee, shall have the right
to purchase for its own account from the Trust Fund any Mortgage Loan which is
91 days or more delinquent at a price equal to the Purchase Price. The Purchase
Price for any Mortgage Loan purchased hereunder shall be deposited in the
applicable subaccount of the Certificate Account and the Trustee, upon receipt
of a certificate from the Master Servicer in the form of Exhibit M hereto, shall
release or cause to be released to the purchaser of such Mortgage Loan the
related Mortgage File and shall execute and deliver such instruments of transfer
or assignment prepared by the purchaser of such Mortgage Loan, in each case
without recourse, as shall be necessary to vest in the purchaser of such
Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser of
such Mortgage Loan shall succeed to all the Trustee's right, title and interest
in and to such Mortgage Loan and all security and documents related thereto.
Such assignment shall be an assignment outright and not for security. The
purchaser of such Mortgage Loan shall thereupon own such Mortgage Loan, and all
security and documents, free of any further obligation to the Trustee or the
Certificateholders with respect thereto.

          SECTION 3.12 Trustee to Cooperate; Release of Mortgage Files.

     Upon the payment in full of any Mortgage Loan, or the receipt by the Master
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Master Servicer will immediately notify the
Trustee by delivering, or causing to be delivered a

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<PAGE>

"Request for Release" substantially in the form of Exhibit M. Upon receipt of
such request, the Trustee shall or shall cause the Custodian to promptly release
the related Mortgage File to the Master Servicer, and the Trustee shall at the
Master Servicer's direction execute and deliver to the Master Servicer the
request for reconveyance, deed of reconveyance or release or satisfaction of
mortgage or such instrument releasing the lien of the Mortgage in each case
provided by the Master Servicer, together with the Mortgage Note with written
evidence of cancellation thereon. Expenses incurred in connection with any
instrument of satisfaction or deed of reconveyance shall be chargeable to the
related Mortgagor. From time to time and as shall be appropriate for the
servicing or foreclosure of any Mortgage Loan, including for such purpose,
collection under any policy of flood insurance, any fidelity bond or errors or
omissions policy, or for the purposes of effecting a partial release of any
Mortgaged Property from the lien of the Mortgage or the making of any
corrections to the Mortgage Note or the Mortgage or any of the other documents
included in the Mortgage File, the Trustee shall, upon delivery to the Trustee
of a Request for Release in the form of Exhibit L signed by a Servicing Officer,
release the Mortgage File to the Master Servicer. Subject to the further
limitations set forth below, the Master Servicer shall cause the Mortgage File
or documents so released to be returned to the Trustee or its Custodian when the
need therefor by the Master Servicer no longer exists, unless the Mortgage Loan
is liquidated and the proceeds thereof are deposited in the applicable
subaccount of the Certificate Account, in which case the Master Servicer shall
deliver to the Trustee a Request for Release in the form of Exhibit M, signed by
a Servicing Officer.

     If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver or cause to be delivered to the Trustee, for
signature, as appropriate, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity.

          SECTION 3.13 Documents Records and Funds in Possession of Master
     Servicer to be Held for the Trustee.

     Notwithstanding any other provisions of this Agreement, the Master Servicer
shall transmit to the Trustee as required by this Agreement all documents and
instruments in respect of a Mortgage Loan coming into the possession of the
Master Servicer from time to time and shall account fully to the Trustee for any
funds received by the Master Servicer or which otherwise are collected by the
Master Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
Mortgage Loan. All Mortgage Files and funds collected or held by, or under the
control of, the Master Servicer in respect of any Mortgage Loans, whether from
the collection of principal and interest payments or from Liquidation Proceeds,
including but not limited to, any funds on deposit in the Certificate Account,
shall be held by the Master Servicer for and on behalf of the Trustee and shall
be and remain the sole and exclusive property of the Trustee, subject to the
applicable provisions of this Agreement. The Master Servicer also agrees that it
shall not create, incur or subject any Mortgage File or any funds that are
deposited in the Certificate Account, Distribution Account or any Escrow
Account, or any funds that otherwise are or may become due or payable to the
Trustee for the benefit of the Certificateholders, to any claim, lien, security
interest, judgment, levy, writ of attachment or other encumbrance, or assert by
legal action or

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otherwise any claim or right of setoff against any Mortgage File or any funds
collected on, or in connection with, a Mortgage Loan, except, however, that the
Master Servicer shall be entitled to set off against and deduct from any such
funds any amounts that are properly due and payable to the Master Servicer under
this Agreement.

          SECTION 3.14 Master Servicing Compensation.

     As compensation for its activities hereunder, the Master Servicer shall be
entitled to retain or withdraw from the Certificate Account an amount equal to
the Master Servicing Fee for each Mortgage Loan, provided that the aggregate
Master Servicing Fee with respect to any Distribution Date shall be reduced (i)
by the amount of any Compensating Interest paid by the Master Servicer with
respect to such Distribution Date, and (ii) with respect to the first
Distribution Date, an amount equal to any amount to be deposited into the
Distribution Account by the Seller pursuant to Section 2.1(a) and not so
deposited.

     Additional servicing compensation in the form of (i) Retained Yield, Excess
Proceeds, Prepayment Interest Excess and all income and gain net of any losses
realized from Permitted Investments and (ii) prepayment penalties, assumption
fees and late payment charges in each case under the circumstances and in the
manner set forth in the applicable Mortgage Note or Mortgage shall be retained
by the Master Servicer to the extent not required to be deposited in the
Certificate Account pursuant to Section 3.5 hereof; provided that in the event
the Master Servicer is terminated pursuant to Section 7.1, the Retained Yield
shall be payable to First Horizon Home Loan Corporation in its individual
capacity and shall not be payable to the Trustee or any successor to the Master
Servicer. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its master servicing activities hereunder (including
payment of any premiums for hazard insurance and any Primary Insurance Policy
and maintenance of the other forms of insurance coverage required by this
Agreement) and shall not be entitled to reimbursement therefor except as
specifically provided in this Agreement.

          SECTION 3.15 Access to Certain Documentation.

     The Master Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of Subordinated Certificates and the
examiners and supervisory agents of the OTS, the FDIC and such other
authorities, access to the documentation regarding the Mortgage Loans required
by applicable regulations of the OTS and the FDIC. Such access shall be afforded
without charge, but only upon reasonable and prior written request and during
normal business hours at the offices designated by the Master Servicer. Nothing
in this Section shall limit the obligation of the Master Servicer to observe any
applicable law prohibiting disclosure of information regarding the Mortgagors
and the failure of the Master Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section.

          SECTION 3.16 Annual Statement as to Compliance.

     The Master Servicer shall deliver to the Depositor and the Trustee on or
before 120 days after the end of the Master Servicer's fiscal year, commencing
with its 2002 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of the

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Master Servicer during the preceding calendar year and of the performance of the
Master Servicer under this Agreement has been made under such officer's
supervision and (ii) to the best of such officer's knowledge, based on such
review, the Master Servicer has fulfilled all its obligations under this
Agreement throughout such year, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such
officer and the nature and status thereof. The Trustee shall forward a copy of
each such statement to each Rating Agency.

          SECTION 3.17 Annual Independent Public Accountants' Servicing
     Statement; Financial Statements.

     On or before 120 days after the end of the Master Servicer's fiscal year,
commencing with its 2002 fiscal year, the Master Servicer at its expense shall
cause a nationally or regionally recognized firm of independent public
accountants (who may also render other services to the Master Servicer, the
Seller or any affiliate thereof) which is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Trustee and the
Depositor to the effect that-such firm has examined certain documents and
records relating to the servicing of the Mortgage Loans under this Agreement or
of mortgage loans under pooling and servicing agreements substantially similar
to this Agreement (such statement to have attached thereto a schedule setting
forth the pooling and servicing agreements covered thereby) and that, on the
basis of such examination, conducted substantially in compliance with the
Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages serviced for FNMA and FHLMC, such servicing has been conducted in
compliance with such pooling and servicing agreements except for such
significant exceptions or errors in records that, in the opinion of such firm,
the Uniform Single Attestation Program for Mortgage Bankers or the Audit Program
for Mortgages serviced for FNMA and FHLMC requires it to report. In rendering
such statement, such firm may rely, as to matters relating to direct servicing
of mortgage loans by Subservicers, upon comparable statements for examinations
conducted substantially in compliance with the Uniform Single Attestation
Program for Mortgage Bankers or the Audit Program for Mortgages serviced for
FNMA and FHLMC (rendered within one year of such statement) of independent
public accountants with respect to the related Subservicer. Copies of such
statement shall be provided by the Trustee to any Certificateholder upon request
at the Master Servicer's expense, provided such statement is delivered by the
Master Servicer to the Trustee.

          SECTION 3.18 Errors and Omissions Insurance; Fidelity Bonds.

     The Master Servicer shall for so long as it acts as master servicer under
this Agreement, obtain and maintain in force (a) a policy or policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond in respect of its officers,
employees and agents. Each such policy or policies and bond shall, together,
comply with the requirements from time to time of FNMA or FHLMC for persons
performing servicing for mortgage loans purchased by FNMA or FHLMC. In the event
that any such policy or bond ceases to be in effect, the Master Servicer shall
obtain a comparable replacement policy or bond from an insurer or issuer,
meeting the requirements set forth above as of the date of such replacement.

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                                   ARTICLE IV
                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

          SECTION 4.1 Advances.

     The Master Servicer shall determine on or before each Master Servicer
Advance Date whether it is required to make an Advance pursuant to the
definition thereof. If the Master Servicer determines it is required to make an
Advance, it shall, on or before the Master Servicer Advance Date, either (i)
deposit into the applicable subaccount of the Certificate Account an amount
equal to the Advance or (ii) make an appropriate entry in its records relating
to the applicable subaccount of the Certificate Account that any Amount Held for
Future Distribution has been used by the Master Servicer in discharge of its
obligation to make any such Advance. Any funds so applied shall be replaced by
the Master Servicer by deposit in the applicable subaccount of the Certificate
Account no later than the close of business on the next Master Servicer Advance
Date. The Master Servicer shall be entitled to be reimbursed from the applicable
subaccount of the Certificate Account for all Advances of its own funds made
pursuant to this Section as provided in Section 3.8. The obligation to make
Advances with respect to any Mortgage Loan shall continue if such Mortgage Loan
has been foreclosed or otherwise terminated and the related Mortgaged Property
has not been liquidated.

     The Master Servicer shall deliver to the Trustee on the related Master
Servicer Advance Date an Officer's Certificate of a Servicing Officer indicating
the amount of any proposed Advance determined by the Master Servicer to be a
Nonrecoverable Advance.

          SECTION 4.2 Priorities of Distribution.

     (a)  On each Distribution Date, the Trustee shall withdraw the Available
     Funds for each Certificate Group from the applicable subaccount of the
     Distribution Account and apply such funds to distributions on the
     Certificates of the related Certificate Group in the following order and
     priority and, in each case, to the extent of Available Funds remaining:

          (i)  to the Classes of Senior Certificates of the related Certificate
               Group, the Accrued Certificate Interest on each such Class for
               such Distribution Date, any shortfall in available amounts being
               allocated among such Classes in proportion to the amount of
               Accrued Certificate Interest otherwise distributable thereon;
               provided, however, that on each Distribution Date through the
               applicable Accretion Termination Date, such amounts with respect
               to the Accrual Certificates will not be distributed on such
               Certificates under this Section 4.2(a)(i) but will instead be
               added to the Class Certificate Balances thereof and distributed
               in accordance with Section 4.2(b)(i) below;

          (ii) to the Classes of Senior Certificates of the related Certificate
               Group, any Accrued Certificate Interest thereon remaining
               undistributed from previous Distribution Dates, to the extent of
               remaining Available Funds from the related Mortgage Pool, any
               shortfall in available amounts being

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                       allocated among such Classes in proportion to the amount
                       of such Accrued Certificate Interest remaining
                       undistributed for each such Class for such Distribution
                       Date; provided, however, that on each Distribution Date
                       through the applicable Accretion Termination Date, such
                       amounts with respect to the Accrual Certificates will not
                       be distributed on such Certificates under this Section
                       4.2(a)(ii) but will instead be added to the Class
                       Certificate Balances thereof, to the extent not
                       previously added pursuant to Section 4.2(a)(i) above, and
                       distributed in accordance with Section 4.2(b)(i) below;

                 (iii) to the Classes of Senior Certificates of the related
                       Certificate Group, in reduction of the Class Certificate
                       Balances thereof, to the extent of remaining Available
                       Funds from the related Mortgage Pool, the related Senior
                       Optimal Principal Amount for such Distribution Date, in
                       the order of priority set forth below in Section 4.2(b),
                       until the respective Class Certificate Balances thereof
                       have been reduced to zero;

                 (iv)  to the Class B-1 Certificates, to the extent of remaining
                       Available Funds for both Mortgage Pools, but subject to
                       the prior payment of amounts described under Section
                       4.2(g), in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous Distribution Dates and (3)
                       such Class' Allocable Share for such Distribution Date;

                 (v)   to the Class B-2 Certificates, to the extent of remaining
                       Available Funds for both Mortgage Pools, but subject to
                       the prior payment of amounts described under Section
                       4.2(g), in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous Distribution Dates and (3)
                       such Class' Allocable Share for such Distribution Date;

                 (vi)  to the Class B-3 Certificates, to the extent of remaining
                       Available Funds for both Mortgage Pools, but subject to
                       the prior payment of amounts described under Section
                       4.2(g), in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous Distribution Dates and (3)
                       such Class' Allocable Share for such Distribution Date;

                 (vii) to the Class B-4 Certificates, to the extent of
                       remaining Available Funds for both Mortgage Pools, but
                       subject to the prior payment of amounts described under
                       Section 4.2(g) in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous

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                       Distribution Dates and (3) such Class' Allocable Share
                       for such Distribution Date;

                (viii) to the Class B-5 Certificates, to the extent of
                       remaining Available Funds for both Mortgage Pools, but
                       subject to the prior payment of amounts described under
                       Section 4.2(g) in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous Distribution Dates and (3)
                       such Class' Allocable Share for such Distribution Date;
                       and

                (ix)   to the Class B-6 Certificates, to the extent of remaining
                       Available Funds for both Mortgage Pools, but subject to
                       the prior payment of amounts described under Section
                       4.2(g) in the following order: (1) the Accrued
                       Certificate Interest thereon for such Distribution Date,
                       (2) any Accrued Certificate Interest thereon remaining
                       undistributed from previous Distribution Dates and (3)
                       such Class' Allocable Share for such Distribution Date.

         (b)    (i) On each Distribution Date through the applicable Accretion
         Termination Date, before distributions are made pursuant to Section
         4.2(b)(ii) below, an amount equal to the Accrual Amount for the Accrual
         Certificates will be added to the Class Certificate Balances thereof
         and will be distributed to the Certificates as follows:

                       (A) The Accrual Amount for the Class I-A-V-Z Certificates
                       will be distributed in reduction of the Class Principal
                       Balances of the specified Classes in the following
                       priority:

                           first, to the Class I-A-V-2 Certificates, until the
                           Class Principal Balance thereof has been reduced to
                           zero; and

                           second, to the Class I-A-V-Z Certificates, until the
                           Class Certificate Balance thereof has been reduced to
                           zero; and

                       (B) The Accrual Amount for the Class I-A-Z Certificates
                       will be distributed in reduction of the Class Principal
                       Balances of the specified Classes in the following order
                       of priority:

                           first, to the Class I-A-V-1, Class I-A-V-2 and Class
                           I-A-V-Z Certificates concurrently as follows:

                                  (i)  20% of such amount to the Class I-A-V-1
                                  Certificates until the Class Principal Balance
                                  thereof has been reduced to zero;

                                  (ii) 80% of such amount sequentially to the
                                  I-A-V-2 and the Class I-A-V-Z Certificates, in
                                  that order, until their

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                                       respective Class Principal Balances have
                                       been reduced to zero; and

                                  second, to the Class I-A-Z Certificates until
                                  the Class Principal Balance thereof has been
                                  reduced to zero.

                  (ii) Amounts allocated to the Group I Senior Certificates
         pursuant to Section 4.2(a)(iii) above will be distributed in the
         following order of priority:

                       first, an amount up to the NAS Principal Distribution
                  Amount for such Distribution Date, pro rata, to the Class
                  I-A-3-I and Class I-A-3-II Certificates until their respective
                  Class Certificate Balances have each been reduced to zero;

                       second, the remaining Senior Optimal Principal Amount for
                  Pool I will be applied in the following order of priority:

                       (A) concurrently to the Class I-A-1, Class I-A-5, Class
                       I-A-6, Class I-A-7, Class I-A-8, Class I-A-9 and Class
                       I-A-R Certificates, as follows:

                           (i)  66.88364584534% of such remaining Senior Optimal
                                Principal Amount, pro rata, to the Class I-A-1,
                                Class I-A-5, Class I-A-6 and Class I-A-9
                                Certificates until their respective Class
                                Principal Balances have each been reduced to
                                zero; and

                           (ii) 33.11635415466% of such remaining Senior Optimal
                                Principal Amount sequentially to the Class
                                I-A-R, Class I-A-7 and Class I-A-8 Certificates,
                                in that order, until their respective Class
                                Principal Balances have each been reduced to
                                zero;

                       (B) concurrently to the Class I-A-2, Class I-A-4, Class
                       I-A-V-1, Class I-A-V-2, Class I-A-V-Z and Class I-A-Z
                       Certificates as follows:

                           (i) 14.10680700080% of such remaining Senior Optimal
                                Principal Amount sequentially to the Class I-A-2
                                and Class I-A-4 Certificates, in that order,
                                until their respective Class Principal Balances
                                have each been reduced to zero; and

                           (ii) 85.89319299920% of such remaining Senior Optimal
                                Principal Amount to the Class I-A-V-1, Class
                                I-A-V-2,Class I-A-V-Z and Class I-A-Z
                                Certificates in the following order of priority:

                                            (x) first, to the Class I-A-V-1,
                                            Class I-A-V-2 and Class I-A-V-Z
                                            concurrently as follows:

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                                     (I)  20% of such remaining Senior Optimal
                                  Principal Amount to the Class I-A-V-1
                                  Certificates until the Class Principal Balance
                                  thereof has been reduced to zero; and

                                     (II) 80% of such remaining Senior Optimal
                                  Principal Amount sequentially to the Class
                                  I-A-V-2 and Class I-A-V-Z Certificates, in
                                  that order, until their respective Class
                                  Principal Balances have each been reduced to
                                  zero; and

                                     (y) second, to the Class I-A-Z Certificates
                                     until its outstanding class principal
                                     balance has been reduced to zero; and

                        (C) the remaining Senior Optimal Principal Amount pro
                            rata to the Class I-A-3-I and Class I-A-3-II
                            Certificates, without taking into consideration the
                            NAS Principal Distribution Amount, until their
                            respective Class Principal Balances have each been
                            reduced to zero.

                  (iii) Amounts allocated to the Group II Senior Certificates
         pursuant to Section 4.2(a)(iii) above will be distributed to the Class
         II-A-1 Certificates until the Class Certificate Balance thereof has
         been reduced to zero.

(c)      On each Distribution Date, the Trustee shall distribute to the Holders
         of the Class I-A-R Certificates any Available Funds remaining in the
         REMIC for such Distribution Date after application of all amounts
         described in clauses (a) and (b) of this Section 4.2 on such
         Distribution Date. Any distributions pursuant to this subsection (c)
         shall not reduce the Class Certificate Balance of the Class I-A-R
         Certificates.

(d)      On and after the Cross-Over Date, the amount distributable to the Group
         I Senior Certificates of the related Certificate Group pursuant to
         Section 4.2(a)(iii) for the related Distribution Date shall be
         allocated among the related Classes of Senior Certificates, pro rata,
         on the basis of their respective Class Certificate Balances immediately
         prior to such Distribution Date, regardless of the priorities and
         amounts set forth in Section 4.2.

(e)      If on any Distribution Date (i) the Class Certificate Balance of any
         Class of Subordinated Certificates (other than the Class of
         Subordinated Certificates with the highest priority of distribution)
         for which the related Class Prepayment Distribution Trigger was
         satisfied on such Distribution Date is reduced to zero and (ii) amounts
         distributable to such Class of Subordinated Certificates pursuant to
         clauses (2), (3) and (5) of the applicable Subordinated Optimal
         Principal Amount remain undistributed on such Distribution Date after
         all amounts otherwise distributable on such date pursuant to clauses
         (iv) through (ix) of Section 4.2(a) have been distributed, such
         amounts, to the extent of such Class' remaining Allocable Share, shall
         be distributed on such Distribution

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<PAGE>

         Date to the remaining Classes of Subordinated Certificates on a pro
         rata basis, subject to the priority of payments described in Section
         4.2(a).

         (f) In the event that in any calendar month the Master Servicer
         recovers an amount (an "Unanticipated Recovery") in respect of
         principal of a Mortgage Loan which had previously been allocated as a
         Realized Loss to any Class of Certificates pursuant to Section 4.4, on
         the Distribution Date in the next succeeding calendar month the
         Trustee, shall withdraw from the Distribution Account and distribute to
         the Holders of each outstanding Class to which such Realized Loss had
         previously been allocated its share (determined as described in the
         succeeding paragraph) of such Unanticipated Recovery in an amount not
         to exceed the amount of such Realized Loss previously allocated to such
         Class. When the Class Certificate Balance of a Class of Certificates
         has been reduced to zero, the Holders of such Class shall not be
         entitled to any share of an Unanticipated Recovery, and such
         Unanticipated Recovery shall be allocated among all outstanding Classes
         of Certificates entitled thereto in accordance with the preceding
         sentence, subject to the remainder of this subsection (f). In the event
         that (i) any Unanticipated Recovery remains undistributed in accordance
         with the preceding sentence or (ii) the amount of an Unanticipated
         Recovery exceeds the amount of the Realized Loss previously allocated
         to any outstanding Classes with respect to the related Mortgage Loan,
         on the applicable Distribution Date the Trustee shall distribute to the
         Holders of all outstanding Classes of the related Certificates to which
         Realized Losses had previously been allocated and not reimbursed their
         pro rata share (determined as described below) of such excess in an
         amount not to exceed the aggregate amount of any Realized Loss
         previously allocated to such Class with respect to any other Mortgage
         Loan that has not been recovered in accordance with this subsection
         (f). Any distributions made pursuant to this subsection (f) shall not
         reduce the Class Certificate Balance of the related Certificate.

             For purposes of the preceding paragraph, the share of an
         Unanticipated Recovery allocable to any Class of Certificates with
         respect to a Mortgage Loan shall be based on its pro rata share (in
         proportion to the Class Certificate Balances thereof with respect to
         such Distribution Date) of the principal portion of any such Realized
         Loss previously allocated with respect to such Mortgage Loan (or
         Loans).

         (g) On any Distribution Date on which any Certificate Group constitutes
         an Undercollateralized Group, all amounts otherwise distributable as
         principal on the Subordinated Certificates, in reverse order of
         priority (or, following the Cross-over Date, such other amounts
         described in the immediately following sentence), will be distributed
         as principal to the Senior Certificates of such Undercollateralized
         Group in accordance with the priorities set forth in Section 4.2(b),
         until the total Class Certificate Balance of such Senior Certificates
         equals the Pool Principal Balance of the related Mortgage Pool (such
         distribution, an "Undercollateralization Distribution"). In the event
         that the Senior Certificates of a Certificate Group constitute an
         Undercollateralized Group on any Distribution Date following the
         Cross-over Date, Undercollateralization Distributions will be made from
         the excess of the Available Funds for the Mortgage Pool not related to
         an Undercollateralized Group remaining after all required amounts for
         that distribution date have been distributed to the Senior Certificates
         of such other Certificate Group. In addition, the amount of any Net
         Interest Shortfalls with respect to any

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<PAGE>

     Undercollateralized Group on any Distribution Date (including any Net
     Interest Shortfalls for such Distribution Date) will be distributed to the
     Senior Certificates of such Undercollateralized Group prior to the payment
     of any Undercollateralization Distributions from amounts otherwise
     distributable as principal on the Subordinated Certificates, in reverse
     order of priority (or, following the Cross-over Date, as provided in the
     preceding sentence). Undercollateralization Distributions will not be made
     as described above if prior to giving effect to any distributions on such
     Distribution Date (a) the Subordinated Percentage for the related
     Certificate Group for such Distribution Date is greater than or equal to
     5.00% and (b) the aggregate Pool Principal Balance of both Mortgage Pools
     delinquent 60 days or more (including for this purpose any such Mortgage
     Loans in foreclosure and Mortgage Loans with respect to which the related
     Mortgaged Property has been acquired by the Trust), averaged over the
     preceding six month period, as a percentage of the aggregate Class
     Certificate Balance of the Subordinated Certificates, is less than 100%. If
     Senior Certificates of each Certificate Group are Undercollateralized
     Groups, the distributions described above will be made in proportion to the
     amount by which the aggregate Class Certificate Balance of the Senior
     Certificates of each such Certificate Group exceeds the Pool Principal
     Balance of the related Mortgage Pool. All distributions described above
     will be made in accordance with the priorities set forth in Section 4.2(b).

          SECTION 4.3 Method of Distribution.

     (a)  All distributions with respect to each Class of Certificates on each
     Distribution Date shall be made pro rata among the outstanding Certificates
     of such Class, based on the Percentage Interest in such Class represented
     by each Certificate. Payments to the Certificateholders on each
     Distribution Date will be made by the Trustee to the Certificateholders of
     record on the related Record Date by check or money order mailed to a
     Certificateholder at the address appearing in the Certificate Register, or
     upon written request by such Certificateholder to the Trustee made not
     later than the applicable Record Date, by wire transfer to a U.S.
     depository institution acceptable to the Trustee, or by such other means of
     payment as such Certificateholder and the Trustee shall agree.

     (b)  Each distribution with respect to a Book-Entry Certificate shall be
     paid to the Depository, which shall credit the amount of such distribution
     to the accounts of its Depository Participants in accordance with its
     normal procedures. Each Depository Participant shall be responsible for
     disbursing such distribution to the Certificate Owners that it represents
     and to each financial intermediary for which it acts as agent. Each such
     financial intermediary shall be responsible for disbursing funds to the
     Certificate Owners that it represents. All such credits and disbursements
     with respect to a Book-Entry Certificate are to be made by the Depository
     and the Depository Participants in accordance with the provisions of the
     applicable Certificates. Neither the Trustee nor the Master Servicer shall
     have any responsibility therefor except as otherwise provided by applicable
     law.

     (c)  The Trustee shall withhold or cause to be withheld such amounts as it
     reasonably determines are required by the Code (giving full effect to any
     exemptions from withholding and related certifications required to be
     furnished by Certificateholders or

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<PAGE>

     Certificate Owners and any reductions to withholding by virtue of any
     bilateral tax treaties and any applicable certification required to be
     furnished by Certificateholders or Certificate Owners with respect thereto)
     from distributions to be made to Non-U.S. Persons. If the Trustee
     reasonably determines that a more accurate determination of the amount
     required to be withheld for a distribution can be made within a reasonable
     period after the scheduled date for such distribution, it may hold such
     distribution in trust for a Holder of a Residual Certificate until such
     determination can be made. For the purposes of this paragraph, a "Non-U.S.
     Person" is (i) an individual other than a citizen or resident of the United
     States, (ii) a partnership, corporation or entity treated as a partnership
     or corporation for U.S. federal income tax purposes not formed under the
     laws of the United States, any state thereof or the District of Columbia
     (unless, in the case of a partnership, Treasury regulations provide
     otherwise), (iii) any estate, the income of which is not subject to U.S.
     federal income taxation, regardless of source, and (iv) any trust, other
     than a trust that a court within the United States is able to exercise
     primary supervision over the administration of the trust and one or more
     U.S. Persons have the authority to control all substantial decisions of the
     trust.

          SECTION 4.4 Allocation of Losses.

     (a)  On or prior to each Determination Date, the Master Servicer shall
     determine the amount of any Realized Loss in respect of each Mortgage Loan
     that occurred during the immediately preceding calendar month.

     (b)  With respect to any Distribution Date, the principal portion of each
     Realized Loss (other than any Excess Loss) shall be allocated in the
     following order of priority:

          (i)   to the Class B-6 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (ii)  to the Class B-5 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (iii) to the Class B-4 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (iv)  to the Class B-3 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (v)   to the Class B-2 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (vi)  to the Class B-1 Certificates until the Class Certificate
                Balance thereof has been reduced to zero;

          (vii) to the Classes of Senior Certificates of the related Certificate
                Group, pro rata, in accordance with their Class Certificate
                Balances; provided, that any such loss allocated to the Accrual
                Certificates shall instead be allocated on the basis of the
                lesser of (x) the Class Certificate Balance

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<PAGE>

                thereof immediately prior to the applicable Distribution Date
                and (y) the Class Certificate Balance thereof on the Closing
                Date (as reduced by any Realized Losses previously allocated
                thereto).

     (c)  With respect to any Distribution Date, the principal portion of any
     Excess Loss with respect to a Mortgage Pool (other than Excess Bankruptcy
     Losses attributable to Debt Service Reductions) shall be allocated pro rata
     to each Class of Certificates of the related Certificate Group based on
     their respective Class Certificate Balances (in the case of the Senior
     Certificates) or Apportioned Principal Balances (in the case of the
     Subordinated Certificates); provided, that any such loss allocated to the
     Accrual Certificates shall instead be allocated on the basis of the lesser
     of (x) the Class Certificate Balance thereof immediately prior to the
     applicable Distribution Date and (y) the Class Certificate Balance thereof
     on the Closing Date (as reduced by any Realized Losses previously allocated
     thereto).

     (d)  Any Realized Losses allocated to a Class of Certificates pursuant to
     Section 4.4(b) or (c) shall be allocated among the Certificates of such
     Class in proportion to their respective Certificate Principal Balances. Any
     allocation of Realized Losses pursuant to this paragraph (d) shall be
     accomplished by reducing the Certificate Principal Balances of the related
     Certificates on the related Distribution Date in accordance with Section
     4.4(e).

     (e)  Realized Losses allocated in accordance with this Section 4.4 shall be
     allocated on the Distribution Date in the month following the month in
     which such loss was incurred and, (i) in the case of the principal portion
     thereof, after giving effect to the distributions made on such Distribution
     Date, and (ii) in the case of the interest portion thereof, after giving
     effect to the calculation of the Accrual Amount for the Accrual
     Certificates for such Distribution Date.

     (f)  On each Distribution Date, the Master Servicer shall determine the
     Subordinated Certificate Writedown Amount, if any. Any such Subordinated
     Certificate Writedown Amount shall effect, without duplication of any other
     provision in this Section 4.4 that provides for a reduction in the Class
     Certificate Balance of the Subordinated Certificates, a corresponding
     reduction in the Class Certificate Balance of the Subordinated
     Certificates, which reduction shall occur on such Distribution Date after
     giving effect to distributions made on such Distribution Date.

     (g)  Notwithstanding the foregoing, no such allocation of any Realized Loss
     shall be made on a Distribution Date to a Class of Certificates to the
     extent that such allocation would result in the reduction of the aggregate
     Certificate Principal Balances of all the Senior Certificates of a related
     Certificate Group as of such Distribution Date plus the Apportioned
     Principal Balances of the Subordinated Certificates of such Certificate
     Group as of such Distribution Date, after giving effect to all
     distributions and prior allocations of Realized Losses on such date, to an
     amount less than the aggregate Scheduled Principal Balance of the Mortgage
     Loans in the related Mortgage Pool as of the first day of the month of such
     Distribution Date, less any Deficient Valuations occurring on or prior to
     the Bankruptcy Coverage Termination Date (such limitation, the "Loss
     Allocation Limitation").

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          SECTION 4.5 Reserved.

          SECTION 4.6 Monthly Statements to Certificateholders.

     (a) Not later than each Distribution Date, the Trustee shall prepare and
     cause to be forwarded by first class mail to each Certificateholder, the
     Master Servicer, the Depositor and each Rating Agency a statement setting
     forth with respect to the related distribution and may post such statement
     on its website located at www.mbsreporting.com:

          (i)    the amount thereof allocable to principal, separately
                 identifying the aggregate amount of any Principal Prepayments
                 and Liquidation Proceeds included therein;

          (ii)   the amount thereof allocable to interest, the amount of any
                 Compensating Interest included in such distribution and any
                 remaining Net Interest Shortfalls after giving effect to such
                 distribution;

          (iii)  if the distribution to the Holders of such Class of
                 Certificates is less than the full amount that would be
                 distributable to such Holders if there were sufficient funds
                 available therefor, the amount of the shortfall and the
                 allocation thereof as between principal and interest;

          (iv)   the Class Certificate Balance of each Class of Certificates
                 after giving effect to the distribution of principal on such
                 Distribution Date;

          (v)    the Pool Principal Balance for each Mortgage Pool for the
                 following Distribution Date;

          (vi)   the Senior Percentage and Subordinated Percentage for each
                 Certificate Group for the following Distribution Date;

          (vii)  the amount of the Master Servicing Fees paid to or retained by
                 the Master Servicer with respect to such Distribution Date;

          (viii) the Pass-Through Rate for each such Class of Certificates with
                 respect to such Distribution Date;

          (ix)   the amount of Advances for each Mortgage Pool included in the
                 distribution on such Distribution Date and the aggregate amount
                 of Advances for each Mortgage Pool outstanding as of the close
                 of business on such Distribution Date;

          (x)    the number and aggregate principal amounts of Mortgage Loans
                 (A) delinquent (exclusive of Mortgage Loans in foreclosure) (1)
                 1 to 30 days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or
                 more days and (B) in foreclosure and delinquent (1) 1 to 30
                 days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more
                 days, as of the close of business on the last day of the
                 calendar month preceding such Distribution Date;

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          (xi)   with respect to any Mortgage Loan in a Mortgage Pool that
                 became an REO Property during the preceding calendar month, the
                 loan number and Stated Principal Balance of such Mortgage Loan
                 as of the close of business on the Determination Date preceding
                 such Distribution Date and the date of acquisition thereof;

          (xii)  the total number and principal balance of any REO Properties
                 (and market value, if available) in each Mortgage Pool as of
                 the close of business on the Determination Date preceding such
                 Distribution Date;

          (xiii) the Senior Prepayment Percentage for each Certificate Group for
                 the following Distribution Date;

          (xiv)  the aggregate amount of Realized Losses incurred in respect of
                 each Mortgage Pool during the preceding calendar month;

          (xv)   the cumulative amount of Realized Losses applied in reduction
                 of the principal balance of each class of Certificates since
                 the Closing Date;

          (xvi)  the Special Hazard Loss Coverage Amount, the Fraud Loss
                 Coverage Amount and the Bankruptcy Loss Coverage Amount, in
                 each case as of the related Determination Date; and

          (xvii) with respect to the second Distribution Date, the number and
                 aggregate balance of any Delay Delivery Mortgage Loans in each
                 Mortgage Pool not delivered within thirty days after the
                 Closing Date.

     (b)  The Trustee's responsibility for disbursing the above information to
     the Certificateholders is limited to the availability, timeliness and
     accuracy of the information provided by the Master Servicer.

     (c)  On or before the fifth Business Day following the end of each
     Prepayment Period (but in no event later than the third Business Day prior
     to the related Distribution Date), the Master Servicer shall deliver to the
     Trustee (which delivery may be by electronic data transmission) a report in
     substantially the form set forth as Schedule IV hereto.

     (d)  Within a reasonable period of time after the end of each calendar
     year, the Trustee shall cause to be furnished to each Person who at any
     time during the calendar year was a Certificateholder, a statement
     containing the information set forth in clauses (a)(i), (a)(ii) and
     (a)(vii) of this Section 4.6 aggregated for such calendar year or
     applicable portion thereof during which such Person was a
     Certificateholder. Such obligation of the Trustee shall be deemed to have
     been satisfied to the extent that substantially comparable information
     shall be provided by the Trustee pursuant to any requirements of the Code
     as from time to time in effect.

          SECTION 4.7 Reserved.

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                                   ARTICLE V
                                THE CERTIFICATES

          SECTION 5.1 The Certificates.

     The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
denominations, integral multiples in excess thereof (except that one Certificate
in each Class may be issued in a different amount which must be in excess of the
applicable minimum denomination) and aggregate denominations per Class set forth
in the Preliminary Statement.

     Subject to Section 9.2 hereof respecting the final distribution on the
Certificates, on each Distribution Date the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either (x) by wire
transfer in immediately available funds to the account of such Holder at a bank
or other entity having appropriate facilities therefor, if (i) such Holder has
so notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold (A) 100% of the Class Certificate Balance
of any Class of Certificates or (B) Certificates of any Class with aggregate
principal Denominations of not less than $1,000,000 or (y) by check mailed by
first class mail to such Certificateholder at the address of such Holder
appearing in the Certificate Register.

     The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the countersignature and delivery of such Certificates
or did not hold such offices at the date of such Certificate. No Certificate
shall be entitled to any benefit under this Agreement, or be valid for any
purpose, unless countersigned by the Trustee by manual signature, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates shall be dated the date of their countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.

     The Depositor shall provide, or cause to be provided, to the Trustee on a
continuous basis, an adequate inventory of Certificates to facilitate transfers.

          SECTION 5.2 Certificate Register; Registration of Transfer and
     Exchange of  Certificates.

     (a) The Trustee shall maintain, or cause to be maintained in accordance
     with the provisions of Section 5.6 hereof, a Certificate Register for the
     Trust Fund in which, subject to the provisions of subsections (b) and (c)
     below and to such reasonable regulations as it may prescribe, the Trustee
     shall provide for the registration of Certificates and of transfers and
     exchanges of Certificates as herein provided. Upon surrender for
     registration of transfer of any Certificate, the Trustee shall execute and

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<PAGE>

     deliver, in the name of the designated transferee or transferees, one or
     more new Certificates of the same Class and aggregate Percentage Interest.

          At the option of a Certificateholder, Certificates may be exchanged
     for other Certificates of the same Class in authorized denominations and
     evidencing the same aggregate Percentage Interest upon surrender of the
     Certificates to be exchanged at the office or agency of the Trustee.
     Whenever any Certificates are so surrendered for exchange, the Trustee
     shall execute, authenticate, and deliver the Certificates which the
     Certificateholder making the exchange is entitled to receive. Every
     Certificate presented or surrendered for registration of transfer or
     exchange shall be accompanied by a written instrument of transfer in form
     satisfactory to the Trustee duly executed by the Holder thereof or his
     attorney duly authorized in writing.

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

          All Certificates surrendered for registration of transfer or exchange
     shall be cancelled and subsequently destroyed by the Trustee in accordance
     with the Trustee's customary procedures.

     (b)  No transfer of a Private Certificate shall be made unless such
     transfer is made pursuant to an effective registration statement under the
     Securities Act and any applicable state securities laws or is exempt from
     the registration requirements under said Act and such state securities
     laws. In the event that a transfer is to be made in reliance upon an
     exemption from the Securities Act and such laws, in order to assure
     compliance with the Securities Act and such laws, the Certificateholder
     desiring to effect such transfer and such Certificateholder's prospective
     transferee shall each certify to the Trustee in writing the facts
     surrounding the transfer in substantially the forms set forth in Exhibit I
     (the "Transferor Certificate") and (i) deliver a letter in substantially
     the form of either Exhibit J (the "Investment Letter") or Exhibit K (the
     "Rule 144A Letter") or (ii) there shall be delivered to the Trustee at the
     expense of the transferor an Opinion of Counsel that such transfer may be
     made pursuant to an exemption from the Securities Act. The Depositor shall
     provide to any Holder of a Private Certificate and any prospective
     transferee designated by any such Holder, information regarding the related
     Certificates and the Mortgage Loans and such other information as shall be
     necessary to satisfy the condition to eligibility set forth in Rule
     144A(d)(4) for transfer of any such Certificate without registration
     thereof under the Securities Act pursuant to the registration exemption
     provided by Rule 144A. The Trustee and the Master Servicer shall cooperate
     with the Depositor in providing the Rule 144A information referenced in the
     preceding sentence, including providing to the Depositor such information
     regarding the Certificates, the Mortgage Loans and other matters regarding
     the Trust Fund as the Depositor shall reasonably request to meet its
     obligation under the preceding sentence. Each Holder of a Private
     Certificate desiring to effect such transfer shall, and does hereby agree
     to, indemnify the Trustee and the Depositor, the Seller and the Master
     Servicer against any

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liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

              No transfer of an ERISA-Restricted Certificate shall be made
         unless the Trustee shall have received either (i) a representation from
         the transferee of such Certificate acceptable to and in form and
         substance satisfactory to the Trustee (in the event such Certificate is
         a Private Certificate, such requirement is satisfied only by the
         Trustee's receipt of a representation letter from the transferee
         substantially in the form of Exhibit J or Exhibit K), to the effect
         that such transferee is not an employee benefit plan or arrangement
         subject to Section 406 of ERISA or a plan or arrangement subject to
         Section 4975 of the Code, nor a person acting on behalf of any such
         plan or arrangement, nor using the assets of any such plan or
         arrangement to effect such transfer, (ii) in the case of a Private
         Certificate or a Residual Certificate, if the purchaser is an insurance
         company, a representation that the purchaser is an insurance company
         which is purchasing such Certificates with funds contained in an
         "insurance company general account" (as such term is defined in Section
         V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60"))
         and that the purchase and holding of such Certificates are covered
         under PTCE 95-60 or (iii) in the case of any such ERISA-Restricted
         Certificate presented for registration in the name of an employee
         benefit plan subject to ERISA, or a plan or arrangement subject to
         Section 4975 of the Code (or comparable provisions of any subsequent
         enactments), or a trustee of any such plan or any other person acting
         on behalf of any such plan or arrangement, or using such plan's or
         arrangement's assets, an Opinion of Counsel satisfactory to the
         Trustee, which Opinion of Counsel shall not be an expense of either the
         Trustee or the Trust Fund, addressed to the Trustee to the effect that
         the purchase or holding of such ERISA-Restricted Certificate will not
         result in the assets of the Trust Fund being deemed to be "plan assets"
         and subject to the prohibited transaction provisions of ERISA and the
         Code and will not subject the Trustee to any obligation in addition to
         those expressly undertaken in this Agreement or to any liability.
         Notwithstanding anything else to the contrary herein, any purported
         transfer of an ERISA-Restricted Certificate to or on behalf of an
         employee benefit plan subject to ERISA or to the Code without the
         delivery to the Trustee of an Opinion of Counsel satisfactory to the
         Trustee as described above shall be void and of no effect.

              To the extent permitted under applicable law (including, but not
         limited to, ERISA), the Trustee shall be under no liability to any
         Person for any registration of transfer of any ERISA-Restricted
         Certificate that is in fact not permitted by this Section 5.2(b) or for
         making any payments due on such Certificate to the Holder thereof or
         taking any other action with respect to such Holder under the
         provisions of this Agreement so long as the transfer was registered by
         the Trustee in accordance with the foregoing requirements.

         (c)  Each Person who has or who acquires any Ownership Interest in a
         Residual Certificate shall be deemed by the acceptance or acquisition
         of such Ownership Interest to have agreed to be bound by the following
         provisions, and the rights of each Person acquiring any Ownership
         Interest in a Residual Certificate are expressly subject to the
         following provisions:

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              (i)   Each Person holding or acquiring any Ownership Interest in a
                    Residual Certificate shall be a Permitted Transferee and
                    shall promptly notify the Trustee of any change or impending
                    change in its status as a Permitted Transferee.

              (ii)  No Ownership Interest in a Residual Certificate may be
                    registered on the Closing Date or thereafter transferred,
                    and the Trustee shall not register the Transfer of any
                    Residual Certificate unless, in addition to the certificates
                    required to be delivered to the Trustee under subparagraph
                    (b) above, the Trustee shall have been furnished with an
                    affidavit (a "Transfer Affidavit") of the initial owner or
                    the proposed transferee in the form attached hereto as
                    Exhibit H.

              (iii) Each Person holding or acquiring any Ownership Interest in a
                    Residual Certificate shall agree (A) to obtain a Transfer
                    Affidavit from any other Person to whom such Person attempts
                    to Transfer its Ownership Interest in a Residual
                    Certificate, (B) to obtain a Transfer Affidavit from any
                    Person for whom such Person is acting as nominee, trustee or
                    agent in connection with any Transfer of a Residual
                    Certificate and (C) not to Transfer its Ownership Interest
                    in a Residual Certificate or to cause the Transfer of an
                    Ownership Interest in a Residual Certificate to any other
                    Person if it has actual knowledge that such Person is not a
                    Permitted Transferee.

              (iv)  Any attempted or purported Transfer of any Ownership
                    Interest in a Residual Certificate in violation of the
                    provisions of this Section 5.2(c) shall be absolutely null
                    and void and shall vest no rights in the purported
                    Transferee. If any purported transferee shall become a
                    Holder of a Residual Certificate in violation of the
                    provisions of this Section 5.2(c), then the last preceding
                    Permitted Transferee shall be restored to all rights as
                    Holder thereof retroactive to the date of registration of
                    Transfer of such Residual Certificate. The Trustee shall be
                    under no liability to any Person for any registration of
                    Transfer of a Residual Certificate that is in fact not
                    permitted by Section 5.2(b) and this Section 5.2(c) or for
                    making any payments due on such Certificate to the Holder
                    thereof or taking any other action with respect to such
                    Holder under the provisions of this Agreement so long as the
                    Transfer was registered after receipt of the related
                    Transfer Affidavit, Transferor Certificate and either the
                    Rule 144A Letter or the Investment Letter. The Trustee shall
                    be entitled but not obligated to recover from any Holder of
                    a Residual Certificate that was in fact not a Permitted
                    Transferee at the time it became a Holder or, at such
                    subsequent time as it became other than a Permitted
                    Transferee, all payments made on such Residual Certificate
                    at and after either such time. Any such payments so
                    recovered by the Trustee shall be paid and delivered by the
                    Trustee to the last preceding Permitted Transferee of such
                    Certificate.

              (v)   The Depositor shall use its best efforts to make available,
                    upon receipt of written request from the Trustee, all
                    information necessary to compute any

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                  tax imposed under Section 860E(e) of the Code as a result of a
                  Transfer of an Ownership Interest in a Residual Certificate to
                  any Holder who is not a Permitted Transferee.

              The restrictions on Transfers of a Residual Certificate set forth
         in this Section 5.2(c) shall cease to apply (and the applicable
         portions of the legend on a Residual Certificate may be deleted) with
         respect to Transfers occurring after delivery to the Trustee of an
         Opinion of Counsel, which Opinion of Counsel shall not be an expense of
         the Trust Fund, the Trustee, the Seller or the Master Servicer, to the
         effect that the elimination of such restrictions will not cause the
         REMIC created hereunder to fail to qualify as a REMIC at any time that
         the Certificates are outstanding or result in the imposition of any tax
         on the Trust Fund, a Certificateholder or another Person. Each Person
         holding or acquiring any Ownership Interest in a Residual Certificate
         hereby consents to any amendment of this Agreement which, based on an
         Opinion of Counsel furnished to the Trustee, is reasonably necessary
         (a) to ensure that the record ownership of, or any beneficial interest
         in, a Residual Certificate is not transferred, directly or indirectly,
         to a Person that is not a Permitted Transferee and (b) to provide for a
         means to compel the Transfer of a Residual Certificate which is held by
         a Person that is not a Permitted Transferee to a Holder that is a
         Permitted Transferee.

         (d)  The preparation and delivery of all certificates and opinions
         referred to above in this Section 5.2 in connection with transfer shall
         be at the expense of the parties to such transfers.

         (e)  Except as provided below, the Book-Entry Certificates shall at all
         times remain registered in the name of the Depository or its nominee
         and at all times: (i) registration of the Certificates may not be
         transferred by the Trustee except to another Depository; (ii) the
         Depository shall maintain book-entry records with respect to the
         Certificate Owners and with respect to ownership and transfers of such
         Book-Entry Certificates; (iii) ownership and transfers of registration
         of the Book-Entry Certificates on the books of the Depository shall be
         governed by applicable rules established by the Depository; (iv) the
         Depository may collect its usual and customary fees, charges and
         expenses from its Depository Participants; (v) the Trustee shall deal
         with the Depository, Depository Participants and indirect participating
         firms as representatives of the Certificate Owners of the Book-Entry
         Certificates for purposes of exercising the rights of holders under
         this Agreement, and requests and directions for and votes of such
         representatives shall not be deemed to be inconsistent if they are made
         with respect to different Certificate Owners; and (vi) the Trustee may
         rely and shall be fully protected in relying upon information furnished
         by the Depository with respect to its Depository Participants and
         furnished by the Depository Participants with respect to indirect
         participating firms and persons shown on the books of such indirect
         participating firms as direct or indirect Certificate Owners.

              All transfers by Certificate Owners of Book-Entry Certificates
         shall be made in accordance with the procedures established by the
         Depository Participant or brokerage firm representing such Certificate
         Owner. Each Depository Participant shall only transfer Book-Entry
         Certificates of Certificate Owners it represents or of brokerage firms
         for which it acts as agent in accordance with the Depository's normal
         procedures.

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              If (x) (i) the Depository or the Depositor advises the Trustee in
         writing that the Depository is no longer willing or able to properly
         discharge its responsibilities as Depository, and (ii) the Trustee or
         the Depositor is unable to locate a qualified successor, (y) the
         Depositor at its option advises the Trustee in writing that it elects
         to terminate the book-entry system through the Depository or (z) after
         the occurrence of an Event of Default, Certificate Owners representing
         at least 51% of the Class Certificate Balance of the Book-Entry
         Certificates together advise the Trustee and the Depository through the
         Depository Participants in writing that the continuation of a
         book-entry system through the Depository is no longer in the best
         interests of the Certificate Owners, the Trustee shall notify all
         Certificate Owners, through the Depository, of the occurrence of any
         such event and of the availability of definitive, fully-registered
         Certificates (the "Definitive Certificates") to Certificate Owners
         requesting the same. Upon surrender to the Trustee of the related Class
         of Certificates by the Depository, accompanied by the instructions from
         the Depository for registration, the Trustee shall issue the Definitive
         Certificates. Neither the Master Servicer, the Depositor nor the
         Trustee shall be liable for any delay in delivery of such instruction
         and each may conclusively rely on, and shall be protected in relying
         on, such instructions. The Master Servicer shall provide the Trustee
         with an adequate inventory of certificates to facilitate the issuance
         and transfer of Definitive Certificates. Upon the issuance of
         Definitive Certificates all references herein to obligations imposed
         upon or to be performed by the Depository shall be deemed to be imposed
         upon and performed by the Trustee, to the extent applicable with
         respect to such Definitive Certificates and the Trustee shall recognize
         the Holders of the Definitive Certificates as Certificateholders
         hereunder; provided that the Trustee shall not by virtue of its
         assumption of such obligations become liable to any party for any act
         or failure to act of the Depository.

              SECTION 5.3 Mutilated, Destroyed, Lost or Stolen Certificates.

         If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and (b) there is delivered to the Master Servicer and the
Trustee such security or indemnity as may be required by them to save each of
them harmless, then, in the absence of notice to the Trustee that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate of like
Class, tenor and Percentage Interest. In connection with the issuance of any new
Certificate under this Section 5.3, the Trustee may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith. Any replacement Certificate issued pursuant to
this Section 5.3 shall constitute complete and indefeasible evidence of
ownership, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

              SECTION 5.4 Persons Deemed Owners.

         The Master Servicer, the Trustee and any agent of the Master Servicer
or the Trustee may treat the Person in whose name any Certificate is registered
as the owner of such Certificate for the purpose of receiving distributions as
provided in this Agreement and for all other purposes

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whatsoever, and neither the Master Servicer the Trustee nor any agent of the
Master Servicer or the Trustee shall be affected by any notice to the contrary.

              SECTION 5.5 Access to List of Certificateholders' Names and
         Addresses.

         If three or more Certificateholders (a) request such information in
writing from the Trustee, (b) state that such Certificateholders desire to
communicate with other Certificateholders with respect to their rights under
this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the
Depositor or Master Servicer shall request such information in writing from the
Trustee, then the Trustee shall, within ten Business Days after the receipt of
such request, provide the Depositor, the Master Servicer or such
Certificateholders at such recipients' expense the most recent list of the
Certificateholders of such Trust Fund held by the Trustee, if any. The Depositor
and every Certificateholder, by receiving and holding a Certificate, agree that
the Trustee shall not be held accountable by reason of the disclosure of any
such information as to the list of the Certificateholders hereunder, regardless
of the source from which such information was derived.

              SECTION 5.6 Maintenance of Office or Agency.

         The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York City where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially
designates its Corporate Trust Office for such purposes. The Trustee will give
prompt written notice to the Certificateholders of any change in such location
of any such office or agency.

                                   ARTICLE VI
                      THE DEPOSITOR AND THE MASTER SERVICER

              SECTION 6.1 Respective Liabilities of the Depositor and the Master
         Servicer.

         The Depositor and the Master Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

              SECTION 6.2 Merger or Consolidation of the Depositor or the Master
         Servicer.

         The Depositor and the Master Servicer will each keep in full effect its
existence, rights and franchises as a corporation under the laws of the United
States or under the laws of one of the states thereof and will each obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, or any of the Mortgage Loans and
to perform its respective duties under this Agreement.

         Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of

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any of the parties hereto, anything herein to the contrary notwithstanding;
provided, however, that the successor or surviving Person to the Master Servicer
shall be qualified to sell mortgage loans to, and to service mortgage loans on
behalf of, FNMA or FHLMC.

              SECTION 6.3 Limitation on Liability of the Depositor, the Seller,
         the Master Servicer and Others.

         None of the Depositor, the Seller, the Master Servicer or any of the
directors, officers, employees or agents of the Depositor, the Seller or the
Master Servicer shall be under any liability to the Certificateholders for any
action taken or for refraining from the taking of any action in good faith
pursuant to this Agreement, or for errors in judgment; provided, however, that
this provision shall not protect the Depositor, the Seller, the Master Servicer
or any such Person against any breach of representations or warranties made by
it herein or protect the Depositor, the Seller, the Master Servicer or any such
Person from any liability which would otherwise be imposed by reasons of willful
misfeasance, bad faith or gross negligence in the performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The Depositor,
the Seller, the Master Servicer and any director, officer, employee or agent of
the Depositor, the Seller or the Master Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor, the Seller, the Master
Servicer and any director, officer, employee or agent of the Depositor, the
Seller or the Master Servicer shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense incurred in connection with any
audit, controversy or judicial proceeding relating to a governmental taxing
authority or any legal action relating to this Agreement or the Certificates,
other than any loss, liability or expense related to any specific Mortgage Loan
or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross negligence
in the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. None of the Depositor, the Seller or the
Master Servicer shall be under any obligation to appear in, prosecute or defend
any legal action that is not incidental to its respective duties hereunder and
which in its opinion may involve it in any expense or liability; provided,
however, that any of the Depositor, the Seller or the Master Servicer may in its
discretion undertake any such action that it may deem necessary or desirable in
respect of this Agreement and the rights and duties of the parties hereto and
interests of the Trustee and the Certificateholders hereunder. In such event,
the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities of the Trust Fund, and the
Depositor, the Seller and the Master Servicer shall be entitled to be reimbursed
therefor out of the applicable subaccount of the Certificate Account.

              SECTION 6.4 Limitation on Resignation of Master Servicer.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (a) upon appointment of a successor servicer and
receipt by the Trustee of a letter from each Rating Agency that such a
resignation and appointment will not result in a downgrading of the rating of
any of the Certificates, or (b) upon determination that its duties hereunder are
no longer permissible under applicable law. Any such determination under clause
(b) permitting the resignation of the Master Servicer shall be evidenced by an
Opinion of Counsel to such effect

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delivered to the Trustee. No such resignation shall become effective until the
Trustee or a successor master servicer shall have assumed the Master Servicer's
responsibilities, duties, liabilities and obligations hereunder.

                                   ARTICLE VII
                                     DEFAULT

              SECTION 7.1 Events of Default.

         "Event of Default," wherever used herein, means any one of the
following events:

              (i)   any failure by the Master Servicer to deposit in the
                    applicable subaccount of the Certificate Account or remit to
                    the Trustee any payment required to be made under the terms
                    of this Agreement, which failure shall continue unremedied
                    for five days after the date upon which written notice of
                    such failure shall have been given to the Master Servicer by
                    the Trustee or the Depositor or to the Master Servicer and
                    the Trustee by the Holders of Certificates having not less
                    than 25% of the Voting Rights evidenced by the Certificates;
                    or

              (ii)  any failure by the Master Servicer to observe or perform in
                    any material respect any other of the covenants or
                    agreements on the part of the Master Servicer contained in
                    this Agreement, which failure materially affects the rights
                    of Certificateholders, which failure continues unremedied
                    for a period of 60 days after the date on which written
                    notice of such failure shall have been given to the Master
                    Servicer by the Trustee or the Depositor, or to the Master
                    Servicer and the Trustee by the Holders of Certificates
                    evidencing not less than 25% of the Voting Rights evidenced
                    by the Certificates; provided, however, that the 60-day cure
                    period shall not apply to the initial delivery of the
                    Mortgage File for Delay Delivery Mortgage Loans nor the
                    failure to substitute or repurchase in lieu thereof; or

              (iii) a decree or order of a court or agency or supervisory
                    authority having jurisdiction in the premises for the
                    appointment of a receiver or liquidator in any insolvency,
                    readjustment of debt, marshalling of assets and liabilities
                    or similar proceedings, or for the winding-up or liquidation
                    of its affairs, shall have been entered against the Master
                    Servicer and such decree or order shall have remained in
                    force undischarged or unstayed for a period of 60
                    consecutive days; or

              (iv)  the Master Servicer shall consent to the appointment of a
                    receiver or liquidator in any insolvency, readjustment of
                    debt, marshalling of assets and liabilities or similar
                    proceedings of or relating to the Master Servicer or all or
                    substantially all of the property of the Master Servicer; or

              (v)   the Master Servicer shall admit in writing its inability to
                    pay its debts generally as they become due, file a petition
                    to take advantage of, or

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                  commence a voluntary case under, any applicable insolvency or
                  reorganization statute, make an assignment for the benefit of
                  its creditors, or voluntarily suspend payment of its
                  obligations.

         If an Event of Default described in clauses (i) to (v) of this Section
shall occur, then, and in each and every such case, so long as such Event of
Default shall not have been remedied, the Trustee may, or at the direction of
the Holders of Certificates evidencing not less than 66 2/3% of the Voting
Rights evidenced by the Certificates, the Trustee shall by notice in writing to
the Master Servicer (with a copy to each Rating Agency), terminate all of the
rights and obligations of the Master Servicer under this Agreement and in and to
the Mortgage Loans and the proceeds thereof, other than its rights as a
Certificateholder hereunder. On and after the receipt by the Master Servicer of
such written notice, all authority and power of the Master Servicer hereunder,
whether with respect to the Mortgage Loans or otherwise, shall pass to and be
vested in the Trustee. The Trustee, in its capacity as successor to the Master
Servicer, shall thereupon make any Advance which the Master Servicer failed to
make subject to Section 4.1 hereof. The Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise. Unless expressly provided in such written notice, no such termination
shall affect any obligation of the Master Servicer to pay amounts owed pursuant
to Article VIII. The Master Servicer agrees to cooperate with the Trustee in
effecting the termination of the Master Servicer's responsibilities and rights
hereunder, including, without limitation, the transfer to the Trustee of all
cash amounts which shall at the time be credited to the Certificate Account, or
thereafter be received with respect to the Mortgage Loans. All expenses incurred
in the transferring of the servicing duties from the Master Servicer to a
Successor Servicer shall be paid by the Master Servicer, and if not paid by the
Master Servicer, shall be paid from amounts on deposit in the Certificate
Account.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan which was due prior to
the notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.8(a)(i)
through (viii), and any other amounts payable to such Master Servicer hereunder
the entitlement to which arose prior to the termination of its activities
hereunder.

         SECTION 7.2 Trustee to Act; Appointment of Successor.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.1 hereof, the Trustee shall, subject to and to
the extent provided in Section 3.4, be the successor to the Master Servicer
under this Agreement and the transactions set forth or provided for herein and
shall be subject to all the responsibilities, duties and liabilities relating
thereto placed on the Master Servicer by the terms and provisions hereof and
applicable law including the obligation to make Advances pursuant to Section
4.1. As compensation therefor, the Trustee shall be entitled to all funds
relating to the Mortgage Loans that the Master Servicer would have been entitled
to charge to the Certificate Account or Distribution Account if the Master
Servicer

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had continued to act hereunder. Notwithstanding the foregoing, if the Trustee
has become the successor to the Master Servicer in accordance with Section 7.1
hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is
prohibited by applicable law from making Advances pursuant to Section 4.1 hereof
or if it is otherwise unable to so act, appoint, or petition a court of
competent jurisdiction to appoint, any established mortgage loan servicing
institution the appointment of which does not adversely affect the then current
rating of the Certificates by each Rating Agency as the successor to the Master
Servicer hereunder in the assumption of all or any part of the responsibilities,
duties or liabilities of the Master Servicer hereunder. Any successor to the
Master Servicer shall be an institution which is a FNMA and FHLMC approved
seller/servicer in good standing, which has a net worth of at least $10,000,000,
and which is willing to service the Mortgage Loans and executes and delivers to
the Depositor and the Trustee an agreement accepting such delegation and
assignment, which contains an assumption by such Person of the rights, powers,
duties, responsibilities, obligations and liabilities of the Master Servicer
(other than liabilities of the Master Servicer under Section 6.3 hereof incurred
prior to termination of the Master Servicer under Section 7.1), with like effect
as if originally named as a party to this Agreement; and provided further that
each Rating Agency acknowledges that its rating of the Certificates in effect
immediately prior to such assignment and delegation will not be qualified or
reduced, as a result of such assignment and delegation. Pending appointment of a
successor to the Master Servicer hereunder, the Trustee, unless the Trustee is
prohibited by law from so acting, shall, subject to Section 3.4 hereof, act in
such capacity as provided above. In connection with such appointment and
assumption, the Trustee may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such successor shall
agree; provided, however, that no such compensation shall be in excess of the
Master Servicing Fee permitted the Master Servicer hereunder. The Trustee and
such successor shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession. Neither the Trustee nor any
other successor master servicer shall be deemed to be in default hereunder by
reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof or any failure to perform, or any delay in
performing, any duties or responsibilities hereunder, in either case caused by
the failure of the Master Servicer to deliver or provide, or any delay in
delivering or providing, any cash, information, documents or records to it.

     Any successor to the Master Servicer as master servicer shall give notice
to the Mortgagors of such change of servicer and shall, during the term of its
service as master servicer maintain in force the policy or policies that the
Master Servicer is required to maintain pursuant to Section 6.5.

          SECTION 7.3 Notification to Certificateholders.

     (a)  Upon any termination of or appointment of a successor to the Master
     Servicer, the Trustee shall give prompt written notice thereof to
     Certificateholders and to each Rating Agency.

     (b)  Within 60 days after the occurrence of any Event of Default, the
     Trustee shall transmit by mail to all Certificateholders notice of each
     such Event of Default hereunder known to the Trustee, unless such Event of
     Default shall have been cured or waived.

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                                  ARTICLE VIII
                             CONCERNING THE TRUSTEE

          SECTION 8.1 Duties of Trustee.

     The Trustee, prior to the occurrence of an Event of Default of which a
Responsible Officer of the Trustee has actual knowledge and after the curing of
all Events of Default that may have occurred, shall undertake to perform such
duties and only such duties as are specifically set forth in this Agreement. In
case an Event of Default of which a Responsible Officer of the Trustee has
actual knowledge has occurred and remains uncured, the Trustee shall exercise
such of the rights and powers vested in it by this Agreement, and use the same
degree of care and skill in their exercise as a prudent person would exercise or
use under the circumstances in the conduct of such person's own affairs.

     The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement shall examine them to determine whether they are in the form
required by this Agreement; provided, however, that the Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Agreement, the Trustee shall notify the Certificateholders of such
instrument in the event that the Trustee, after so requesting, does not receive
a satisfactorily corrected instrument.

     No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct; provided, however, that:

          (i)  unless an Event of Default of which a Responsible Officer of the
               Trustee has actual knowledge shall have occurred and be
               continuing, the duties and obligations of the Trustee shall be
               determined solely by the express provisions of this Agreement,
               the Trustee shall not be liable except for the performance of
               such duties and obligations as are specifically set forth in this
               Agreement, no implied covenants or obligations shall be read into
               this Agreement against the Trustee and the Trustee may
               conclusively rely, as to the truth of the statements and the
               correctness of the opinions expressed therein, upon any
               certificates or opinions furnished to the Trustee and conforming
               to the requirements of this Agreement which it believed in good
               faith to be genuine and to have been duly executed by the proper
               authorities respecting any matters arising hereunder;

          (ii) the Trustee shall not be liable for an error of judgment made in
               good faith by a Responsible Officer or Responsible Officers of
               the Trustee, unless it shall be finally proven that the Trustee
               was negligent in ascertaining the pertinent facts;

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         (iii) the Trustee shall not be liable with respect to any action
               taken, suffered or omitted to be taken by it in good faith in
               accordance with the direction of Holders of Certificates
               evidencing not less than 25% of the Voting Rights of Certificates
               relating to the time, method and place of conducting any
               proceeding for any remedy available to the Trustee, or exercising
               any trust or power conferred upon the Trustee under this
               Agreement;

         (iv)  the Trustee shall not be required to expend or risk its own funds
               or otherwise incur financial liability in the performance of any
               of its duties hereunder or the exercise of any of its rights or
               powers if there is reasonable ground for believing that the
               repayment of such funds or adequate indemnity against such risk
               or liability is not assured to it, and none of the provisions
               contained in this Agreement shall in any event require the
               Trustee to perform, or be responsible for the manner of
               performance of, any of the obligations of the Master Servicer
               under this Agreement except during such time, if any, as the
               Trustee shall be the successor to, and be vested with the rights,
               duties, powers and privileges of, the Master Servicer; and

         (v)   without limiting the generality of this Section 8.1, the Trustee
               shall have no duty (A) to see to any recording, filing, or
               depositing of this Agreement or any agreement referred to herein
               or any financing statement or continuation statement evidencing a
               security interest, or to see to the maintenance of any such
               recording or filing or deposit or to any rerecording, refiling or
               redepositing of any thereof, (B) to see to any insurance, (C) to
               see to the payment or discharge of any tax, assessment, or other
               governmental charge or any lien or encumbrance of any kind owing
               with respect to, assessed or levied against, any part of the
               Trust Fund other than from funds available in the Distribution
               Account (D) to confirm or verify the contents of any reports or
               certificates of the Servicer delivered to the Trustee pursuant to
               this Agreement believed by the Trustee to be genuine and to have
               been signed or presented by the proper party or parties.

         SECTION 8.2 Certain Matters Affecting the Trustee.

     Except as otherwise provided in Section 8.1:

         (i)   the Trustee may request and rely upon and shall be protected in
               acting or refraining from acting upon any resolution, Officers'
               Certificate, certificate of auditors or any other certificate,
               statement, instrument, opinion, report, notice, request, consent,
               order, appraisal, bond or other paper or document believed by it
               to be genuine and to have been signed or presented by the proper
               party or parties and the Trustee shall have no responsibility to
               ascertain or confirm the genuineness of any signature of any such
               party or parties;

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          (ii)   the Trustee may consult with counsel, financial advisers or
                 accountants and the advice of any such counsel, financial
                 advisers or accountants and any Opinion of Counsel shall be
                 full and complete authorization and protection in respect of
                 any action taken or suffered or omitted by it hereunder in good
                 faith and in accordance with such Opinion of Counsel;

          (iii)  the Trustee shall not be liable for any action taken, suffered
                 or omitted by it in good faith and believed by it to be
                 authorized or within the discretion or rights or powers
                 conferred upon it by this Agreement;

          (iv)   the Trustee shall not be bound to make any investigation into
                 the facts or matters stated in any resolution, certificate,
                 statement, instrument, opinion, report, notice, request,
                 consent, order, approval, bond or other paper or document,
                 unless requested in writing so to do by Holders of Certificates
                 evidencing not less than 25% of the Voting Rights allocated to
                 each Class of Certificates; provided, however, that if the
                 payment within a reasonable time to the Trustee of the costs,
                 expenses or liabilities likely to be incurred by it in the
                 making of such investigation is, in the opinion of the Trustee,
                 not assured to the Trustee by the security afforded to it by
                 the terms of this Agreement, the Trustee may require indemnity
                 satisfactory to the Trustee against such cost, expense or
                 liability as a condition to taking any such action. The
                 reasonable expense of every such examination shall be paid by
                 the Master Servicer or, if paid by the Trustee, shall be repaid
                 by the Master Servicer upon demand from the Servicer's own
                 funds.

          (v)    the Trustee may execute any of the trusts or powers hereunder
                 or perform any duties hereunder either directly or by or
                 through agents, accountants or attorneys and the Trustee shall
                 not be responsible for any misconduct or negligence on the part
                 of such agent, accountant or attorney appointed by the Trustee
                 with due care;

          (vi)   the Trustee shall not be required to risk or expend its own
                 funds or otherwise incur any financial liability in the
                 performance of any of its duties or in the exercise of any of
                 its rights or powers hereunder if it shall have reasonable
                 grounds for believing that repayment of such funds or adequate
                 indemnity against such risk or liability is not assured to it;

          (vii)  the Trustee shall not be liable for any loss on any investment
                 of funds pursuant to this Agreement (other than as issuer of
                 the investment security);

          (viii) the Trustee shall not be deemed to have knowledge of an Event
                 of Default until a Responsible Officer of the Trustee shall
                 have received written notice thereof and in the absence of such
                 notice, the Trustee may conclusively assume that there is no
                 Event of Default;

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          (ix)   the Trustee shall be under no obligation to exercise any of the
                 trusts, rights or powers vested in it by this Agreement or to
                 institute, conduct or defend any litigation hereunder or in
                 relation hereto at the request, order or direction of any of
                 the Certificateholders, pursuant to the provisions of this
                 Agreement, unless such Certificateholders shall have offered to
                 the Trustee reasonable security or indemnity satisfactory to
                 the Trustee against the costs, expenses and liabilities which
                 may be incurred therein or thereby;

          (x)    the right of the Trustee to perform any discretionary act
                 enumerated in this Agreement shall not be construed as a duty,
                 and the Trustee shall not be answerable for other than its
                 negligence or willful misconduct in the performance of such
                 act; and

          (xi)   the Trustee shall not be required to give any bond or surety in
                 respect of the execution of the Trust Fund created hereby or
                 the powers granted hereunder.

          SECTION 8.3 Trustee Not Liable for Certificates or Mortgage Loans.

     The recitals contained herein and in the Certificates shall be taken as the
statements of the Depositor or the Seller, as the case may be, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of the
Certificates or of any Mortgage Loan or related document other than with respect
to the Trustee's execution and counter-signature of the Certificates. The
Trustee shall not be accountable for the use or application by the Depositor or
the Master Servicer of any funds paid to the Depositor or the Master Servicer in
respect of the Mortgage Loans or deposited in or withdrawn from the Certificate
Account by the Depositor or the Master Servicer.

          SECTION 8.4 Trustee May Own Certificates.

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates with the same rights as it would have if it were not the
Trustee.

          SECTION 8.5 Trustee's Fees and Expenses.

     The Trustee, as compensation for its activities prior to making the
distributions pursuant to Section 4.2 hereunder, shall be entitled to withdraw
from the Distribution Account on each Distribution Date an amount equal to the
Trustee Fee for such Distribution Date. The Trustee and any director, officer,
employee or agent of the Trustee shall be indemnified by the Master Servicer and
held harmless against any loss, liability or expense (including reasonable
attorney's fees) (i) incurred in connection with any claim or legal action
relating to (a) this Agreement, (b) the Certificates or (c) in connection with
the performance of any of the Trustee's duties hereunder, other than any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of any of the Trustee's duties hereunder or
incurred by reason of any action of the Trustee taken at the direction of the
Certificateholders and (ii) resulting from any error in any tax or information
return prepared by the Master Servicer. Such indemnity shall survive the
termination of this Agreement or the resignation or removal of the

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Trustee hereunder. Without limiting the foregoing, the Master Servicer covenants
and agrees, except as otherwise agreed upon in writing by the Depositor and the
Trustee, and except for any such expense, disbursement or advance as may arise
from the Trustee's negligence, bad faith or willful misconduct, to pay or
reimburse the Trustee, for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of this
Agreement with respect to: (A) the reasonable compensation and the expenses and
disbursements of its counsel not associated with the closing of the issuance of
the Certificates, (B) the reasonable compensation, expenses and disbursements of
any accountant, engineer or appraiser that is not regularly employed by the
Trustee, to the extent that the Trustee must engage such persons to perform acts
or services hereunder and (C) printing and engraving expenses in connection with
preparing any Definitive Certificates. Except as otherwise provided herein, the
Trustee shall not be entitled to payment or reimbursement for any routine
ongoing expenses incurred by the Trustee in the ordinary course of its duties as
Trustee, Registrar, Tax Matters Person or Paying Agent hereunder or for any
other expenses.

          SECTION 8.6 Eligibility Requirements for Trustee.

     The Trustee hereunder shall at all times be a corporation or association
organized and doing business under the laws of a state or the United States of
America, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating which would
not cause either of the Rating Agencies to reduce their respective then current
ratings of the Certificates (or having provided such security from time to time
as is sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.6 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.6, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.7 hereof. The entity serving
as Trustee may have normal banking and trust relationships with the Depositor
and its affiliates or the Master Servicer and its affiliates; provided, however,
that such entity cannot be an affiliate of the Master Servicer other than the
Trustee in its role as successor to the Master Servicer.

          SECTION 8.7 Resignation and Removal of Trustee.

     The Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice of resignation to the Depositor and the Master
Servicer and each Rating Agency not less than 60 days before the date specified
in such notice when, subject to Section 8.8, such resignation is to take effect,
and acceptance by a successor trustee in accordance with Section 8.8 meeting the
qualifications set forth in Section 8.6. If no successor trustee meeting such
qualifications shall have been so appointed and have accepted appointment within
30 days after the giving of such notice or resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a
successor trustee.

     If at any time the Trustee shall cease to be eligible in accordance with
the provisions of Section 8.6 hereof and shall fail to resign after written
request thereto by the Depositor, or if at

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any time the Trustee shall become incapable of acting, or shall be adjudged as
bankrupt or insolvent, or a receiver of the Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, or a tax is imposed with respect to the Trust Fund by any state in
which the Trustee or the Trust Fund is located and the imposition of such tax
would be avoided by the appointment of a different trustee, then the Depositor
or the Master Servicer may remove the Trustee and appoint a successor trustee by
written instrument, in triplicate, one copy of which instrument shall be
delivered to the Trustee, one copy of which shall be delivered to the Master
Servicer and one copy to the successor trustee.

     The Holders of Certificates entitled to at least 51% of the Voting Rights
may at any time remove the Trustee and appoint a successor trustee by written
instrument or instruments, in triplicate, signed by such Holders or their
attorneys-in-fact duly authorized, one complete set of which instruments shall
be delivered by the successor Trustee to the Master Servicer, one complete set
to the Trustee so removed and one complete set to the successor so appointed.
Notice of any removal of the Trustee shall be given to each Rating Agency by the
Successor Trustee.

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.7 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.8 hereof.

          SECTION 8.8 Successor Trustee.

     Any successor trustee appointed as provided in Section 8.7 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
and the Master Servicer an instrument accepting such appointment hereunder and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The Depositor, the Master Servicer and the predecessor
trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in the successor trustee all such rights, powers, duties, and obligations.

     No successor trustee shall accept appointment as provided in this Section
8.8 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.6 hereof and its appointment shall
not adversely affect the then current rating of the Certificates.

     Upon acceptance of appointment by a successor trustee as provided in this
Section 8.8, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within 10 days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

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          SECTION 8.9 Merger or Consolidation of Trustee.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the business of the Trustee, shall be the successor of
the Trustee hereunder, provided that such corporation shall be eligible under
the provisions of Section 8.6 hereof without the execution or filing of any
paper or further act on the part of any of the parties hereto, anything herein
to the contrary notwithstanding.

          SECTION 8.10 Appointment of Co-Trustee or Separate Trustee.

     Notwithstanding any other provisions of this Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Trust Fund or property securing any Mortgage Note may at the time be
located, the Master Servicer and the Trustee acting jointly shall have the power
and shall execute and deliver all instruments to appoint one or more Persons
approved by the Trustee to act as co-trustee or co-trustees jointly with the
Trustee, or separate trustee or separate trustees, of all or any part of the
Trust Fund, and to vest in such Person or Persons, in such capacity and for the
benefit of the Certificateholders, such title to the Trust Fund or any part
thereof, whichever is applicable, and, subject to the other provisions of this
Section 8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment within 15 days after the
receipt by it of a request to do so, or in the case an Event of Default shall
have occurred and be continuing, the Trustee alone shall have the power to make
such appointment. No co-trustee or separate trustee hereunder shall be required
to meet the terms of eligibility as a successor trustee under Section 8.6 and no
notice to Certificateholders of the appointment of any co-trustee or separate
trustee shall be required under Section 8.8.

     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)  To the extent necessary to effectuate the purposes of this
               Section 8.10, all rights, powers, duties and obligations
               conferred or imposed upon the Trustee shall be conferred or
               imposed upon and exercised or performed by the Trustee and such
               separate trustee or co-trustee jointly (it being understood that
               such separate trustee or co-trustee is not authorized to act
               separately without the 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 (whether as Trustee
               hereunder or as successor to the Master Servicer hereunder), the
               Trustee shall be incompetent or unqualified to perform such act
               or acts, in which event such rights, powers, duties and
               obligations (including the holding of title to the applicable
               Trust Fund 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 Trustee;

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          (ii)   No trustee hereunder shall be held personally liable by reason
                 of any act or omission of any other trustee hereunder and such
                 appointment shall not, and shall not be deemed to, constitute
                 any such separate trustee or co-trustee as agent of the
                 Trustee;

          (iii)  The Trustee may at any time accept the resignation of or remove
                 any separate trustee or co-trustee; and

          (iv)   The Master Servicer, and not the Trustee, shall be liable for
                 the payment of reasonable compensation, reimbursement and
                 indemnification to any such separate trustee or co-trustee.

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

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

          SECTION 8.11 Tax Matters.

     It is intended that the assets with respect to which the REMIC election is
to be made, as set forth in the preliminary statement shall constitute, and that
the conduct of matters relating to such assets shall be such as to qualify such
assets as, a "real estate mortgage investment conduit" as defined in and in
accordance with the REMIC Provisions. In furtherance of such intention, the
Trustee covenants and agrees that it shall act as agent (and the Trustee is
hereby appointed to act as agent) on behalf of the REMIC and that in such
capacity it shall: (a) prepare and file, or cause to be prepared and filed, in a
timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Return
(Form 1066 or any successor form adopted by the Internal Revenue Service) and
prepare and file or cause to be prepared and filed with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to the REMIC, containing such
information and at the times and in the manner as may be required by the Code or
state or local tax laws, regulations, or rules, and furnish or cause to be
furnished to Certificateholders the schedules, statements or information at such
times and in such manner as may be required thereby; (b) within thirty days of
the Closing Date, furnish or cause to be furnished to the Internal Revenue
Service, on Forms 8811 or as otherwise may be

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required by the Code, the name, title, address, and telephone number of the
person that the Holders of the Certificates may contact for tax information
relating thereto, together with such additional information as may be required
by such Form, and update such information at the time or times in the manner
required by the Code; (c) make or cause to be made elections that such assets be
treated as a REMIC on the federal tax return for its first taxable year (and, if
necessary, under applicable state law); (d) prepare and forward, or cause to be
prepared and forwarded, to the Certificateholders and to the Internal Revenue
Service and, if necessary, state tax authorities, all information returns and
reports as and when required to be provided to them in accordance with the REMIC
Provisions, including without limitation, the calculation of any original issue
discount using the prepayment assumption; (e) provide information necessary for
the computation of tax imposed on the transfer of a Residual Certificate to a
Person that is not a Permitted Transferee, or an agent (including a broker,
nominee or other middleman) of a Non-Permitted Transferee, or a pass-through
entity in which a Non-Permitted Transferee is the record holder of an interest
(the reasonable cost of computing and furnishing such information may be charged
to the Person liable for such tax); (f) to the extent that they are under its
control conduct matters relating to such assets at all times that any
Certificates are outstanding so as to maintain the status as a REMIC under the
REMIC Provisions; (g) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of the REMIC status; (h) pay,
from the sources specified in the last paragraph of this Section 8.11, the
amount of any federal or state tax, including prohibited transaction taxes as
described below, imposed on the REMIC prior to its termination when and as the
same shall be due and payable (but such obligation shall not prevent the Trustee
or any other appropriate Person from contesting any such tax in appropriate
proceedings and shall not prevent the Trustee from withholding payment of such
tax, if permitted by law, pending the outcome of such proceedings); (i) ensure
that federal, state or local income tax or information returns shall be signed
by the Trustee or such other person as may be required to sign such returns by
the Code or state or local laws, regulations or rules; (j) maintain records
relating to the REMIC, including but not limited to the income, expenses, assets
and liabilities thereof and the fair market value and adjusted basis of the
assets determined at such intervals as may be required by the Code, as may be
necessary to prepare the foregoing returns, schedules, statements or
information; and (k) as and when necessary and appropriate, represent the REMIC
in any administrative or judicial proceedings relating to an examination or
audit by any governmental taxing authority, request an administrative adjustment
as to any taxable year of the REMIC, enter into settlement agreements with any
governmental taxing agency, extend any statute of limitations relating to any
tax item of the REMIC, and otherwise act on behalf of the REMIC in relation to
any tax matter or controversy involving it.

     In order to enable the Trustee to perform its duties as set forth herein,
the Depositor shall provide, or cause to be provided, to the Trustee within ten
(10) days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide
to the Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, reasonably request
in order to enable the Trustee to perform its duties as set forth herein. The
Depositor hereby indemnifies the Trustee for any losses, liabilities, damages,
claims or expenses of the Trustee arising from any errors or miscalculations of
the Trustee that result from any

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failure of the Depositor to provide, or to cause to be provided, accurate
information or data to the Trustee on a timely basis.

     In the event that any tax is imposed on "prohibited transactions" of the
REMIC as defined in Section 860F(a)(2) of the Code, on the "net income from
foreclosure property" of the REMIC as defined in Section 860G(c) of the Code, on
any contribution to the REMIC after the Startup Day pursuant to Section 860G(d)
of the Code, or any other tax is imposed, if not paid as otherwise provided for
herein, such tax shall be paid by (i) the Trustee, if any such other tax arises
out of or results from a breach by the Trustee of any of its obligations under
this Agreement which breach was caused by its negligence or willful misconduct,
(ii) the Master Servicer, in the case of any such minimum tax, or if such tax
arises out of or results from a breach by the Master Servicer or Seller of any
of their obligations under this Agreement, (iii) the Seller, if any such tax
arises out of or results from the Seller's obligation to repurchase a Mortgage
Loan pursuant to Section 2.2 or 2.3 or (iv) in all other cases, or in the event
that the Trustee, the Master Servicer or the Seller fails to honor its
obligations under the preceding clauses (i), (ii) or (iii), any such tax will be
paid with amounts otherwise to be distributed to the Certificateholders, as
provided in Section 3.8(b).

          SECTION 8.12 Periodic Filings.

     The Depositor hereby directs the Trustee to prepare, execute and file on
behalf of the Depositor all periodic reports required under the Securities
Exchange Act of 1934 in conformity with the terms of the "no-action" relief
granted by the SEC to issuers of asset-backed securities such as the
Certificates and the Trustee hereby agrees to do so. The Depositor will also
prepare and execute any certifications to be filed with the Form 10-K as
required under the Sarbanes-Oxley Act of 2002. In connection with the
preparation and filing of such periodic reports, the Depositor and the Master
Servicer shall timely provide to the Trustee all material information available
to them which is required to be included in such reports and not known to them
to be in the possession of the Trustee and such other information as the Trustee
reasonably may request from either of them and otherwise reasonably shall
cooperate with the Trustee. The Trustee shall have no liability with respect to
any failure to properly prepare or file such periodic reports resulting from or
relating to the Trustee's inability or failure to obtain any information not
resulting from its own negligence or willful misconduct.

                                   ARTICLE IX
                                   TERMINATION

          SECTION 9.1 Termination upon Liquidation or Purchase of all Mortgage
          Loans.

     Subject to Section 9.3, the obligations and responsibilities of the
Depositor, the Master Servicer and the Trustee created hereby with respect to
the Trust Fund shall terminate upon the earlier of (a) the purchase by the
Master Servicer of all Mortgage Loans (and REO Properties) remaining in the
Trust Fund at the price equal to the sum of (i) 100% of the Stated Principal
Balance of each Mortgage Loan (other than a Mortgage Loan that has been
foreclosed and subject to clause (ii)) plus one month's accrued interest thereon
at the applicable Adjusted Mortgage Rate and (ii) the lesser of (x) the
appraised value of any REO Property as determined by the higher of two
appraisals completed by two independent appraisers selected by the Master

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Servicer at the expense of the Master Servicer and (y) the Stated Principal
Balance of each Mortgage Loan related to any REO Property, in each case plus
accrued and unpaid interest thereon at the applicable Adjusted Mortgage Rate and
(b) the later of (i) the maturity or other liquidation (or any Advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the
disposition of all REO Property and (ii) the distribution to Certificateholders
of all amounts required to be distributed to them pursuant to this Agreement. In
no event shall the trusts created hereby continue beyond the earlier of (i) the
expiration of 21 years from the death of the survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof, and (ii) the Latest Possible Maturity Date.
The right to purchase all Mortgage Loans and REO Properties pursuant to clause
(a) above shall be conditioned upon the Pool Principal Balance for both Mortgage
Pools, at the time of any such repurchase, aggregating less than ten percent of
the aggregate Cut-off Date Principal Balance of the Mortgage Loans.

          SECTION 9.2 Final Distribution on the Certificates.

     If on any Determination Date, the Master Servicer determines that there are
no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund
other than the funds in the Certificate Account, the Master Servicer shall
direct the Trustee promptly to send a final distribution notice to each
Certificateholder. If the Master Servicer elects to terminate the Trust Fund
pursuant to clause (a) of Section 9.1, at least 20 days prior to the date notice
is to be mailed to the affected Certificateholders, the Master Servicer shall
notify the Depositor and the Trustee of the date the Master Servicer intends to
terminate the Trust Fund and of the applicable repurchase price of the Mortgage
Loans and REO Properties.

     Notice of any termination of the Trust Fund, specifying the Distribution
Date on which Certificateholders may surrender their Certificates for payment of
the final distribution and cancellation, shall be given promptly by the Trustee
by letter to Certificateholders mailed not earlier than the 10th day and no
later than the 15th day of the month next preceding the month of such final
distribution. Any such notice shall specify (a) the Distribution Date upon which
final distribution on the Certificates will be made upon presentation and
surrender of Certificates at the office therein designated, (b) the amount of
such final distribution, (c) the location of the office or agency at which such
presentation and surrender must be made, and (d) that the Record Date otherwise
applicable to such Distribution Date is not applicable, distributions being made
only upon presentation and surrender of the Certificates at the office therein
specified. The Master Servicer will give such notice to each Rating Agency at
the time such notice is given to Certificateholders.

     In the event such notice is given, the Master Servicer shall cause all
funds in the Certificate Account to be remitted to the Trustee for deposit in
the applicable subaccounts of the Distribution Account on the Business Day prior
to the applicable Distribution Date in an amount equal to the final distribution
in respect of the Certificates. Upon such final deposit with respect to the
Trust Fund and the receipt by the Trustee of a Request for Release therefor, the
Trustee shall promptly release to the Master Servicer the Mortgage Files for the
Mortgage Loans.

     Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in the order
set forth in Section 4.2 hereof, on

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<PAGE>

the final Distribution Date, in the case of the Certificateholders, in
proportion to their respective Percentage Interests, with respect to
Certificateholders of the same Class, an amount equal to (i) as to each Class of
Regular Certificates, the Class Certificate Balance thereof plus accrued
interest thereon (or on their Notional Principal Amount, if applicable) in the
case of an interest bearing Certificate, and (ii) as to the Residual
Certificates, the amount, if any, which remains on deposit in the Distribution
Account (other than the amounts retained to meet claims) after application
pursuant to clause (i) above.

       In the event that any affected Certificateholders shall not surrender
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Trustee shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice all the applicable Certificates shall not
have been surrendered for cancellation, the Trustee may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets which remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Holders of each of the
Class I-A-R Certificates shall be entitled to all unclaimed funds and other
assets of the Trust Fund, held for distribution to such Certificateholders,
which remain subject hereto.

           SECTION 9.3 Additional Termination Requirements.

       (a) In the event the Master Servicer exercises its purchase option as
       provided in Section 9.1, the Trust Fund and the REMIC created hereunder
       shall be terminated in accordance with the following additional
       requirements, unless the Trustee has been supplied with an Opinion of
       Counsel, at the expense of the Master Servicer, to the effect that the
       failure to comply with the requirements of this Section 9.3 will not (i)
       result in the imposition of taxes on "prohibited transactions" on the
       REMIC as defined in Section 860F of the Code, or (ii) cause the REMIC to
       fails to qualify as a REMIC at any time that any Certificates are
       outstanding:

                       (1) Within 90 days prior to the final Distribution Date
                  set forth in the notice given by the Master Servicer under
                  Section 9.2, the Master Servicer shall prepare and the
                  Trustee, at the expense of the "tax matters person," shall
                  adopt a plan of complete liquidation within the meaning of
                  Section 860F(a)(4) of the Code for the REMIC created hereunder
                  which, as evidenced by an Opinion of Counsel addressed to the
                  Trustee (which opinion shall not be an expense of the Trustee
                  or the Tax Matters Person), meets the requirements of a
                  qualified liquidation; and

                       (2) Within 90 days after the time of adoption of such
                  plans of complete liquidation, the Trustee shall sell all of
                  the assets of the Trust Fund to the Master Servicer for cash
                  in accordance with Section 9.1.

       (b) The Trustee as agent for the REMIC established hereunder hereby
       agrees to adopt and sign such a plan of complete liquidation upon the
       written request of the Master

                                       93

<PAGE>

       Servicer, and the receipt of the Opinion of Counsel referred to in
       Section 9.3(a)(1) and to take such other action in connection therewith
       as may be reasonably requested by the Master Servicer.

       (c) By their acceptance of the Certificates, the Holders thereof hereby
       authorize the Master Servicer to prepare and the Trustee to adopt and
       sign plans of complete liquidation.

                                   ARTICLE X
                                   [RESERVED]

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

           SECTION 11.1 Amendment.

       This Agreement may be amended from time to time by the Depositor, the
Master Servicer and the Trustee without the consent of any of the
Certificateholders (i) to cure any ambiguity or mistake, (ii) to correct any
defective provision herein or to supplement any provision herein which may be
inconsistent with any other provision herein, (iii) to add to the duties of the
Depositor, the Seller or the Master Servicer, (iv) to add any other provisions
with respect to matters or questions arising hereunder or (v) to modify, alter,
amend, add to or rescind any of the terms or provisions contained in this
Agreement; provided that any action pursuant to clauses (iv) or (v) above shall
not, as evidenced by an Opinion of Counsel delivered to the Trustee (which
Opinion of Counsel shall not be an expense of the Trustee or the Trust Fund),
adversely affect in any material respect the interests of any Certificateholder;
provided, however, that the amendment shall not be deemed to adversely affect in
any material respect the interests of the Certificateholders if the Person
requesting the amendment obtains a letter from each Rating Agency stating that
the amendment would not result in the downgrading or withdrawal of the
respective ratings then assigned to the Certificates; it being understood and
agreed that any such letter in and of itself will not represent a determination
as to the materiality of any such amendment and will represent a determination
only as to the credit issues affecting any such rating. The Trustee, the
Depositor and the Master Servicer also may at any time and from time to time
amend this Agreement without the consent of the Certificateholders to modify,
eliminate or add to any of its provisions to such extent as shall be necessary
or helpful to (i) maintain the qualification of the REMIC as a REMIC under the
Code, (ii) avoid or minimize the risk of the imposition of any tax on the REMIC
pursuant to the Code that would be a claim at any time prior to the final
redemption of the Certificates or (iii) comply with any other requirements of
the Code, provided that the Trustee has been provided an Opinion of Counsel,
which opinion shall be an expense of the party requesting such opinion but in
any case shall not be an expense of the Trustee or the Trust Fund, to the effect
that such action is necessary or helpful to, as applicable, (i) maintain such
qualification, (ii) avoid or minimize the risk of the imposition of such a tax
or (iii) comply with any such requirements of the Code.

       This Agreement may also be amended from time to time by the Depositor,
the Master Servicer and the Trustee with the consent of the Holders of a
Majority in Interest of each Class of Certificates affected thereby for the
purpose of adding any provisions to or changing in any

                                       94

<PAGE>

manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments required to be distributed on any Certificate without the consent
of the Holder of such Certificate, (ii) adversely affect in any material respect
the interests of the Holders of any Class of Certificates in a manner other than
as described in (i), without the consent of the Holders of Certificates of such
Class evidencing, as to such Class, Percentage Interests aggregating 66%, or
(iii) reduce the aforesaid percentages of Certificates the Holders of which are
required to consent to any such amendment, without the consent of the Holders of
all such Certificates then outstanding.

       Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel, which opinion shall not be an expense of the
Trustee or the Trust Fund, to the effect that such amendment will not cause the
imposition of any tax on the REMIC or the Certificateholders or cause the REMIC
to fail to qualify as a REMIC at any time that any Certificates are outstanding.

       Promptly after the execution of any amendment to this Agreement requiring
the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of such amendment to each
Certificateholder and each Rating Agency.

       It shall not be necessary for the consent of Certificateholders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Certificateholders shall be subject to such reasonable
regulations as the Trustee may prescribe.

       Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund), satisfactory to the Trustee that (i)
such amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with; and (ii)
either (A) the amendment does not adversely affect in any material respect the
interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 11.1.

           SECTION 11.2 Recordation of Agreement; Counterparts.

       This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Master Servicer at its expense, but only
upon direction a majority of the Certificateholders to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

       For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed (by
facsimile or otherwise) simultaneously in any number of counterparts, each of
which counterparts shall be deemed to be an original, and such counterparts
shall constitute but one and the same instrument.

                                       95

<PAGE>

           SECTION 11.3 Governing Law.

       THIS AGREEMENT (OTHER THAN SECTION 2.1 HEREOF) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. SECTION 2.1
OF THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
SUBSTANTIVE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO
BE PERFORMED IN THE STATE OF DELAWARE AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS UNDER SUCH SECTION SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

           SECTION 11.4 Intention of Parties.

       (a) It is the express intent of the parties hereto that the conveyance of
       the Trust Fund by the Depositor to the Trustee be, and be construed as,
       absolute sales thereof to the Trustee. It is, further, not the intention
       of the parties that such conveyances be deemed a pledge thereof by the
       Depositor to the Trustee. However, in the event that, notwithstanding the
       intent of the parties, such assets are held to be the property of the
       Depositor, or if for any other reason this Agreement is held or deemed to
       create a security interest in such assets, then (i) this Agreement shall
       be deemed to be a security agreement within the meaning of the Uniform
       Commercial Code of the State of New York and (ii) the conveyance provided
       for in this Agreement shall be deemed to be an assignment and a grant by
       the Depositor to the Trustee, for the benefit of the Certificateholders,
       of a security interest in all of the assets that constitute the Trust
       Fund, whether now owned or hereafter acquired.

           The Depositor, for the benefit of the Certificateholders, shall, to
       the extent consistent with this Agreement, take such actions as may be
       necessary to ensure that, if this Agreement were deemed to create a
       security interest in the Trust Fund, such security interest would be
       deemed to be a perfected security interest of first priority under
       applicable law and will be maintained as such throughout the term of the
       Agreement. The Depositor shall arrange for filing any Uniform Commercial
       Code continuation statements in connection with any security interest
       granted or assigned to the Trustee for the benefit of the
       Certificateholders.

           SECTION 11.5 Notices.

       (a) The Trustee shall use its best efforts to promptly provide notice to
       each Rating Agency with respect to each of the following of which it has
       actual knowledge:

                (1)   Any material change or amendment to this Agreement;

                (2)   The occurrence of any Event of Default that has not been
                      cured;

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<PAGE>

                (3)   The resignation or termination of the Master Servicer or
                      the Trustee and the appointment of any successor;

                (4)   The repurchase or substitution of Mortgage Loans pursuant
                      to Section 2.3; and

                (5)   The final payment to Certificateholders.

                (6)   Any rating action involving the long-term credit rating of
                      the Master Servicer, which notice shall be made by
                      first-class mail within two Business Days after the
                      Trustee gains actual knowledge thereof.

       In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following:

                (7)   Each report to Certificateholders described in Section
                      4.6;

                (8)   Each annual statement as to compliance described in
                      Section 3.16;

                (9)   Each annual independent public accountants' servicing
                      report described in Section 3.17; and

                (10)  Any notice of a purchase of a Mortgage Loan pursuant to
                      Section 2.2, 2.3 or 3.11.

       (b) All directions, demands, authorizations, consents, waivers,
       communications and notices hereunder shall be in writing and shall be
       deemed to have been duly given when delivered to by first class mail,
       facsimile or courier (a) in the case of the Depositor, First Horizon
       Asset Securities Inc., 4000 Horizon Way, Irving, Texas 75063, Attention:
       Wade Walker; (b) in the case of the Master Servicer, First Horizon Home
       Loan Corporation, 4000 Horizon Way, Irving, Texas 75063, Attention: Larry
       P. Cole or such other address as may be hereafter furnished to the
       Depositor and the Trustee by the Master Servicer in writing; (c) in the
       case of the Trustee, The Bank of New York, 101 Barclay Street, 8W, New
       York, New York 10286, Attention: Karon Greene, or such other address as
       the Trustee may hereafter furnish to the Depositor or Master Servicer;
       and (d) in the case of the Rating Agencies, the address specified
       therefor in the definition corresponding to the name of such Rating
       Agency. Notices to Certificateholders shall be deemed given when mailed,
       first class postage prepaid, to their respective addresses appearing in
       the Certificate Register.

           SECTION 11.6 Severability of Provisions.

       If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

                                       97

<PAGE>
           SECTION 11.7 Assignment.

       Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.2, this Agreement may not be assigned by the Master
Servicer without the prior written consent of the Trustee and Depositor.

           SECTION 11.8 Limitation on Rights of Certificateholders.

       The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights,
obligations and liabilities of the parties hereto or any of them.

       No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

       No Certificateholder shall have any right by virtue or by availing itself
of any provisions of this Agreement to institute any suit, action or proceeding
in equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as herein provided, and unless the
Holders of Certificates evidencing not less than 25% of the Voting Rights
evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses, and liabilities to be incurred therein
or thereby, and the Trustee, for 60 days after its receipt of such notice,
request and offer of indemnity shall have neglected or refused to institute any
such action, suit or proceeding; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself or
themselves of any provisions of this Agreement to affect, disturb or prejudice
the rights of the Holders of any other of the Certificates, or to obtain or seek
to obtain priority over or preference to any other such Holder or to enforce any
right under this Agreement, except in the manner herein provided and for the
common benefit of all Certificateholders. For the protection and enforcement of
the provisions of this Section 11.8, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

           SECTION 11.9 Inspection and Audit Rights.

       The Master Servicer agrees that, on reasonable prior notice, it will
permit and will cause each Subservicer to permit any representative of the
Depositor or the Trustee during the Master Servicer's normal business hours, to
examine all the books of account, records, reports and other papers of the
Master Servicer relating to the Mortgage Loans, to make copies and extracts

                                       98

<PAGE>

therefrom, to cause such books to be audited by independent certified public
accountants selected by the Depositor or the Trustee and to discuss its affairs,
finances and accounts relating to the Mortgage Loans with its officers,
employees and independent public accountants (and by this provision the Master
Servicer hereby authorizes said accountants to discuss with such representative
such affairs, finances and accounts), all at such reasonable times and as often
as may be reasonably requested. Any out-of-pocket expense incident to the
exercise by the Depositor or the Trustee of any right under this Section 11.9
shall be borne by the party requesting such inspection; all other such expenses
shall be borne by the Master Servicer or the related Subservicer.

           SECTION 11.10 Certificates Nonassessable and Fully Paid.

       It is the intention of the Depositor that Certificateholders shall not be
personally liable for obligations of the Trust Fund, that the interests in the
Trust Fund represented by the Certificates shall be nonassessable for any reason
whatsoever, and that the Certificates, upon due authentication thereof by the
Trustee pursuant to this Agreement, are and shall be deemed fully paid.

           SECTION 11.11 Limitations on Actions; No Proceedings.

       (a) Other than pursuant to this Agreement, or in connection with or
       incidental to the provisions or purposes of this Agreement, the trust
       created hereunder shall not (i) issue debt or otherwise borrow money,
       (ii) merge or consolidate with any other entity reorganize, liquidate or
       transfer all or substantially all of its assets to any other entity, or
       (iii) otherwise engage in any activity or exercise any power not provided
       for in this Agreement.

       (b) Notwithstanding any prior termination of this Agreement, the Trustee,
       the Master Servicer and the Depositor shall not, prior to the date which
       is one year and one day after the termination of this Agreement,
       acquiesce, petition or otherwise invoke or cause any Person to invoke the
       process of any court or government authority for the purpose of
       commencing or sustaining a case against the Depositor or the Trust Fund
       under any federal or state bankruptcy, insolvency or other similar law or
       appointing a receiver, liquidator, assignee, trustee, custodian,
       sequestrator or other similar official of the Depositor or the Trust Fund
       or any substantial part of their respective property, or ordering the
       winding up or liquidation of the affairs of the Depositor or the Trust
       Fund.

           SECTION 11.12 Acknowledgment of Seller.

       Seller hereby acknowledges the provisions of this Agreement, including
the duties of the Seller created hereunder and the assignment of the
representations and warranties made by Seller pursuant to MLPA I.

                                   * * * * * *

                                       99

<PAGE>

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

                          FIRST HORIZON ASSET SECURITIES INC.,
                          as Depositor

                          By:___________________________________________________
                               Wade Walker
                               Senior Vice President - Asset Securitization

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

                          By:___________________________________________________
                               Karon Greene
                               Assistant Treasurer

                          FIRST HORIZON HOME LOAN CORPORATION,
                          in its capacity as Master Servicer

                          By:___________________________________________________
                               Wade Walker
                               Senior Vice President - Asset Securitization

The foregoing agreement
is hereby acknowledged
and accepted as of the
date first above written:

FIRST HORIZON HOME LOAN CORPORATION,
in its capacity as Seller

By:_________________________________________________
       Wade Walker
       Senior Vice President - Asset Securitization

FHASI 2002-6
Pooling and Servicing Agreement - Signature Page

<PAGE>

                                   SCHEDULE I

                       First Horizon Asset Securities Inc.
                Mortgage Pass-Through Certificates Series 2002-6

                              Mortgage Loan Schedule

                      [Available Upon Request from Trustee]

                                       I-1

<PAGE>

                             SCHEDULE II

                       First Horizon Asset Securities Inc.
                Mortgage Pass-Through Certificates Series 2002-6

              Representations and Warranties of the Master Servicer

        First Horizon Home Loan Corporation ("First Horizon") hereby makes the
representations and warranties set forth in this Schedule II to the Depositor
and the Trustee, as of the Closing Date, or if so specified herein, as of the
Cut-off Date. Capitalized terms used but not otherwise defined in this Schedule
II shall have the meanings ascribed thereto in the Pooling and Servicing
Agreement (the "Pooling and Servicing Agreement") relating to the
above-referenced Series, among First Horizon, master servicer, First Horizon
Asset Securities Inc., as depositor, and The Bank of New York, as trustee.

                  (1) First Horizon is duly organized as a Kansas corporation
         and is validly existing and in good standing under the laws of the
         State of Kansas and is duly authorized and qualified to transact any
         and all business contemplated by the Pooling and Servicing Agreement to
         be conducted by First Horizon in any state in which a Mortgaged
         Property is located or is otherwise not required under applicable law
         to effect such qualification and, in any event, is in compliance with
         the doing business laws of any such state, to the extent necessary to
         ensure its ability to enforce each Mortgage Loan, to service the
         Mortgage Loans in accordance with the terms of the Pooling and
         Servicing Agreement and to perform any of its other obligations under
         the Pooling and Servicing Agreement in accordance with the terms
         thereof.

                  (2) First Horizon 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 the
         Pooling and Servicing Agreement and has duly authorized by all
         necessary corporate action on the part of First Horizon the execution,
         delivery and performance of the Pooling and Servicing Agreement; and
         the Pooling and Servicing Agreement, assuming the due authorization,
         execution and delivery thereof by the other parties thereto,
         constitutes a legal, valid and binding obligation of First Horizon,
         enforceable against First Horizon in accordance with its terms, except
         that (a) the enforceability thereof may be limited by 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
         equitable defenses and to the discretion of the court before which any
         proceeding therefor may be brought.

                  (3) The execution and delivery of the Pooling and Servicing
         Agreement by First Horizon, the servicing of the Mortgage Loans by
         First Horizon under the Pooling and Servicing Agreement, the
         consummation of any other of the transactions contemplated by the
         Pooling and Servicing Agreement, and the fulfillment of or compliance
         with the terms thereof are in the ordinary course of business of First
         Horizon and will not (A) result in a material breach of any term or
         provision of the charter or by-laws of First Horizon or (B) materially
         conflict with, result in a material breach, violation or acceleration
         of, or result in a material default under, the terms of any other
         material agreement or instrument to which First Horizon is a party or
         by which it may be bound,

                                      II-1

<PAGE>

          or (C) constitute a material violation of any statute, order or
          regulation applicable to First Horizon of any court, regulatory body,
          administrative agency or governmental body having jurisdiction over
          First Horizon; and First Horizon is not in breach or violation of any
          material indenture or other material agreement or instrument, or in
          violation of any statute, order or regulation of any court, regulatory
          body, administrative agency or governmental body having jurisdiction
          over it which breach or violation may materially impair First
          Horizon's ability to perform or meet any of its obligations under the
          Pooling and Servicing Agreement.

               (4) No litigation is pending or, to the best of First Horizon's
          knowledge, threatened against First Horizon that would prohibit the
          execution or delivery of, or performance under, the Pooling and
          Servicing Agreement by First Horizon.

                                      II-2

<PAGE>

                                  SCHEDULE III

                       First Horizon Asset Securities Inc.
                Mortgage Pass-Through Certificates Series 2002-6

                     Form of Monthly Master Servicer Report

                              [Begins on Next Page]

                                     III-1

<PAGE>

                                    EXHIBIT A

                          [FORM OF SENIOR CERTIFICATE]

[THROUGH THE APPLICABLE ACCRETION TERMINATION DATE, THE INTEREST THAT ACCRUES ON
THE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL NOT BE PAYABLE. BECAUSE SUCH
UNPAID INTEREST IS ADDED TO THE PRINCIPAL BALANCE OF THIS CERTIFICATE AND
BECAUSE DISTRIBUTIONS IN REDUCTION OF THE PRINCIPAL BALANCE WILL BE MADE IN THE
MANNER DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN), THE OUTSTANDING
CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE AT ANY TIME MAY BE MORE OR
LESS THAN THE INITIAL CERTIFICATE PRINCIPAL BALANCE REPRESENTED HEREBY. THIS
CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR AN OBLIGATION OF THE DEPOSITOR
(AS DEFINED HEREIN), THE MASTER SERVICER (AS DEFINED HEREIN), THE PURCHASER (AS
DEFINED HEREIN) OR THE TRUSTEE (AS DEFINED HEREIN).]

UNLESS THIS CERTIFICATE 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 CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

                                      A-1

<PAGE>

Certificate No.                :
Cut-off Date                   :
First Distribution Date        :
Initial Certificate Balance of
this Certificate
("Denominations")              :     $
Initial Certificate
Balances of all
Certificate of this
Class                          :     $
CUSIP                          :

                First Horizon Mortgage Pass-Through Trust 2002-6
                Mortgage Pass-Through Certificates, Series 2002-6
                                Class [________]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class with respect to a Trust Fund
         consisting primarily of a pool of conventional mortgage loans (the
         "Mortgage Loans") secured by first liens on one- to four-family
         residential properties.

                First Horizon Asset Securities Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that __________________ is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
denomination of this Certificate by the aggregate Initial Certificate Balances
of all Certificates of the Class to which this Certificate belongs) in certain
monthly distributions with respect to a Trust Fund consisting primarily of the
Mortgage Loans deposited by First Horizon Asset Securities Inc. (the
"Depositor"). The Trust Fund was created pursuant to a Pooling and Servicing
Agreement dated as of the Cut-off Date specified above (the "Agreement") among
the Depositor, First Horizon Home Loan Corporation, as master servicer (the
"Master Servicer"), and The Bank of New York, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

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

                                      A-2

<PAGE>
         This Certificate shall not be entitled to any benefit under the
Agreement or be valid for any purpose unless manually countersigned by an
authorized signatory of the Trustee.

                                      A-3

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: September __, 2002

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

                                          By:  _________________________________
                                               Authorized Signatory of
                                               THE BANK OF NEW YORK
                                               not in its individual capacity,
                                               but solely as Trustee

Countersigned:

By ___________________________
      Authorized Signatory of
      THE BANK OF NEW YORK,
      not in its individual capacity,
      but solely as Trustee

                                      A-4

<PAGE>

                                    EXHIBIT B

                       [FORM OF SUBORDINATED CERTIFICATE]

[UNLESS THIS CERTIFICATE 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 CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "REGULAR
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO CERTAIN CERTIFICATES AS
DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

[THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES ("BLUE SKY LAWS"), AND SUCH CERTIFICATE MAY NOT BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN
INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7)
OF REGULATION D UNDER THE SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH
ANY APPLICABLE BLUE SKY LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY
OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALES OF THIS CERTIFICATE.]

[NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR, IF SUCH
PURCHASER IS AN INSURANCE COMPANY, A REPRESENTATION IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN, OR DELIVERS TO THE TRUSTEE AN
OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
TO HEREIN. SUCH REPRESENTATION SHALL BE

                                      B-1

<PAGE>

DEEMED TO HAVE BEEN MADE TO THE TRUSTEE BY THE TRANSFEREE'S ACCEPTANCE OF A
CERTIFICATE OF THIS CLASS AND BY A BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST
IN A CERTIFICATE OF THIS CLASS. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF NO
EFFECT.]

                                      B-2

<PAGE>
Certificate No.                :
Cut-off Date                   :
First Distribution Date        :
Initial Certificate Balance of
this Certificate
("Denominations")              : $
Initial Certificate
Balances of all
Certificate of this
Class                          : $
CUSIP                          :

                First Horizon Mortgage Pass-Through Trust 2002-6
                Mortgage Pass-Through Certificates, Series 2002-6
                                   Class [___]

     evidencing a percentage interest in the distributions allocable to the
     Certificates of the above-referenced Class with respect to a Trust Fund
     consisting primarily of a pool of conventional mortgage loans (the
     "Mortgage Loans") secured by first liens on one- to four-family residential
     properties.

                First Horizon Asset Securities Inc., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate does not evidence
an obligation of, or an interest in, and is not guaranteed by the Depositor, the
Master Servicer or the Trustee referred to below or any of their respective
affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.

     This certifies that ___________ is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the denomination of
this Certificate by the aggregate Initial Certificate Balances of the
denominations of all Certificates of the Class to which this Certificate
belongs) in certain monthly distributions with respect to a Trust Fund
consisting primarily of the Mortgage Loans deposited by First Horizon Asset
Securities Inc. (the "Depositor"). The Trust Fund was created pursuant to a
Pooling and Servicing Agreement dated as of the Cut-off Date specified above
(the "Agreement") among the Depositor, First Horizon Home Loan Corporation, as
master servicer (the "Master Servicer"), and The Bank of New York, as trustee
(the "Trustee"). To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                                      B-3

<PAGE>

     [No transfer of a Certificate of this Class shall be made unless such
transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under said Act and such laws. In the event that a
transfer is to be made in reliance upon an exemption from the Securities Act and
such laws, in order to assure compliance with the Securities Act and such laws,
the Certificateholder desiring to effect such transfer and such
Certificateholder's prospective transferee shall each certify to the Trustee in
writing the facts surrounding the transfer. In the event that such a transfer is
to be made within two years from the date of the initial issuance of
Certificates pursuant hereto, there shall also be delivered (except in the case
of a transfer pursuant to Rule 144A of the Securities Act) to the Trustee an
Opinion of Counsel that such transfer may be made pursuant to an exemption from
the Securities Act and such state securities laws, which Opinion of Counsel
shall not be obtained at the expense of the Trustee, the Seller, the Master
Servicer or the Depositor. The Holder hereof desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trustee and the Depositor against
any liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.]

     [No transfer of a Certificate of this Class shall be made unless the
Trustee shall have received either (i) a representation [letter] from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Trustee, to the effect that such transferee is not an
employee benefit plan subject to Section 406 of ERISA or Section 4975 of the
Code, nor a person acting on behalf of any such plan, which representation
letter shall not be an expense of the Trustee or the Master Servicer, (ii) if
the purchaser is an insurance company, a representation that the purchaser is an
insurance company which is purchasing such Certificates with funds contained in
an "insurance company general account" (as such term is defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificates are covered under PTCE 95-60 or (iii)
in the case of any such Certificate presented for registration in the name of an
employee benefit plan subject to ERISA or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), or a trustee of any such
plan or any other person acting on behalf of any such plan, an Opinion of
Counsel satisfactory to the Trustee and the Master Servicer to the effect that
the purchase or holding of such Certificate will not result in the assets of the
Trust Fund being deemed to be "plan assets" and subject to the prohibited
transaction provisions of ERISA and the Code and will not subject the Trustee to
any obligation in addition to those undertaken in the Agreement, which Opinion
of Counsel shall not be an expense of the Trustee or the Master Servicer. [Such
representation shall be deemed to have been made to the Trustee by the
Transferee's acceptance of a Certificate of this Class and by a beneficial
owner's acceptance of its interest in a Certificate of this Class.]
Notwithstanding anything else to the contrary herein, any purported transfer of
a Certificate of this Class to or on behalf of an employee benefit plan subject
to ERISA or to the Code without the opinion of counsel satisfactory to the
Trustee as described above shall be void and of no effect.]

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

     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                      B-4

<PAGE>

     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: September __, 2002

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

                                          By:  _________________________________
                                               Authorized Signatory of
                                               THE BANK OF NEW YORK
                                               not in its individual capacity,
                                               but solely as Trustee

Countersigned:

By ___________________________
      Authorized Signatory of
      THE BANK OF NEW YORK,
      not in its individual capacity,
      but solely as Trustee

                                      A-4

<PAGE>

                                    EXHIBIT C

                         [FORM OF RESIDUAL CERTIFICATE]

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE
WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

[THIS CERTIFICATE REPRESENTS THE "TAX MATTERS PERSON RESIDUAL INTEREST" ISSUED
UNDER THE POOLING AND SERVICING AGREEMENT REFERRED TO BELOW AND MAY NOT BE
TRANSFERRED TO ANY PERSON EXCEPT IN CONNECTION WITH THE ASSUMPTION BY THE
TRANSFEREE OF THE DUTIES OF THE SERVICER UNDER SUCH AGREEMENT.]

NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE REPRESENTS TO THE TRUSTEE THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
BENEFIT PLAN SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE, OR, IF SUCH
PURCHASER IS AN INSURANCE COMPANY, A REPRESENTATION IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN, OR DELIVERS TO THE TRUSTEE AN
OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED
TO HEREIN. [SUCH REPRESENTATION SHALL BE DEEMED TO HAVE BEEN MADE TO THE TRUSTEE
BY THE TRANSFEREE'S ACCEPTANCE OF A CERTIFICATE OF THIS CLASS AND BY A
BENEFICIAL OWNER'S ACCEPTANCE OF ITS INTEREST IN A CERTIFICATE OF THIS CLASS.]
NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF
THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR
TO THE CODE WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS
DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

                                      C-1

<PAGE>

Certificate No.               :
Cut-off Date                  :
First Distribution Date       :
Initial Certificate Balance
of this Certificate
("Denominations")             : $
Initial Certificate
Balances of all
Certificate of this
Class                         : $
CUSIP                         :

                  First Horizon Mortgage Pass-Through Trust 2002-6
                  Mortgage Pass-Through Certificates, Series 2002-6

         evidencing the distributions allocable to the Class I-A-R Certificates
     with respect to a Trust Fund consisting primarily of a pool of conventional
     mortgage loans (the "Mortgage Loans") secured by first liens on one- to
     four-family residential properties.

                First Horizon Asset Securities Inc., as Depositor

     Principal in respect of this Certificate is distributable monthly as set
forth herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate does not evidence
an obligation of, or an interest in, and is not guaranteed by the Depositor, the
Master Servicer or the Trustee referred to below or any of their respective
affiliates. Neither this Certificate nor the Mortgage Loans are guaranteed or
insured by any governmental agency or instrumentality.

     This certifies that _________________ is the registered owner of the
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Initial Certificate Balances of the denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions with respect to a Trust Fund consisting of the Mortgage Loans
deposited by First Horizon Asset Securities Inc. (the "Depositor"). The Trust
Fund was created pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among the Depositor, First
Horizon Home Loan Corporation, as master servicer (the "Master Servicer"), and
The Bank of New York, as trustee (the "Trustee"). To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

                                      C-2

<PAGE>

     Any distribution of the proceeds of any remaining assets of the Trust Fund
will be made only upon presentment and surrender of this Class I-A-R Certificate
at the Corporate Trust Office or the office or agency maintained by the Trustee
in New York, New York.

     No transfer of a Class I-A-R Certificate shall be made unless the Trustee
shall have received either (i) a representation [letter] from the transferee of
such Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, nor a person acting
on behalf of any such plan, which representation letter shall not be an expense
of the Trustee or the Master Servicer, (ii) if the purchaser is an insurance
company, a representation that the purchaser is an insurance company which is
purchasing such Certificate with funds contained in an "insurance company
general account" (as such term is defined in Section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and
holding of such Certificate are covered under PTCE 95-60 or (iii) in the case of
any such Certificate presented for registration in the name of an employee
benefit plan subject to ERISA or Section 4975 of the Code (or comparable
provisions of any subsequent enactments), or a trustee of any such plan or any
other person acting on behalf of any such plan, an Opinion of Counsel
satisfactory to the Trustee and the Master Servicer to the effect that the
purchase or holding of such Class I-A-R Certificate will not result in the
assets of the Trust Fund being deemed to be "plan assets" and subject to the
prohibited transaction provisions of ERISA and the Code and will not subject the
Trustee to any obligation in addition to those undertaken in the Agreement,
which Opinion of Counsel shall not be an expense of the Trustee or the Master
Servicer. [Such representation shall be deemed to have been made to the Trustee
by the Transferee's acceptance of this Class I-A-R Certificate and by a
beneficial owner's acceptance of its interest in such Certificate.]
Notwithstanding anything else to the contrary herein, any purported transfer of
a Class I-A-R Certificate to or on behalf of an employee benefit plan subject to
ERISA or to the Code without the opinion of counsel satisfactory to the Trustee
as described above shall be void and of no effect.

     Each Holder of this Class I-A-R Certificate will be deemed to have agreed
to be bound by the restrictions of the Agreement, including but not limited to
the restrictions that (i) each person holding or acquiring any Ownership
Interest in this Class I-A-R Certificate must be a Permitted Transferee, (ii) no
Ownership Interest in this Class I-A-R Certificate may be transferred without
delivery to the Trustee of (a) a transfer affidavit of the proposed transferee
and (b) a transfer certificate of the transferor, each of such documents to be
in the form described in the Agreement, (iii) each person holding or acquiring
any Ownership Interest in this Class I-A-R Certificate must agree to require a
transfer affidavit and to deliver a transfer certificate to the Trustee as
required pursuant to the Agreement, (iv) each person holding or acquiring an
Ownership Interest in this Class I-A-R Certificate must agree not to transfer an
Ownership Interest in this Class I-A-R Certificate if it has actual knowledge
that the proposed transferee is not a Permitted Transferee and (v) any attempted
or purported transfer of any Ownership Interest in this Class I-A-R Certificate
in violation of such restrictions will be absolutely null and void and will vest
no rights in the purported transferee.

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

                                      C-3

<PAGE>
     This Certificate shall not be entitled to any benefit under the Agreement
or be valid for any purpose unless manually countersigned by an authorized
signatory of the Trustee.

                                      C-4

<PAGE>
     IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  September__, 2002

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

                                           By:   _______________________________
                                                 Authorized Signatory of
                                                 THE BANK OF NEW YORK
                                                 not in its individual capacity,
                                                 but solely as Trustee

Countersigned:

By __________________________________
      Authorized Signatory of
      THE BANK OF NEW YORK,
      not in its individual capacity,
      but solely as Trustee

                                      C-5

<PAGE>
                                    EXHIBIT D

                        [Form of Reverse of Certificates]

                First Horizon Mortgage Pass-Through Trust 2002-6
                       Mortgage Pass-Through Certificates

     This Certificate is one of a duly authorized issue of Certificates
designated as First Horizon Mortgage Pass-Through Trust 2002-6 Mortgage
Pass-Through Certificates, of the Series specified on the face hereof (herein
collectively called the "Certificates"), and representing a beneficial ownership
interest in the Trust Fund created by the Agreement.

     The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the Trustee is not liable to the Certificateholders
for any amount payable under this Certificate or the Agreement or, except as
expressly provided in the Agreement, subject to any liability under the
Agreement.

     This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced thereby, and the rights, duties and
immunities of the Trustee.

     Pursuant to the terms of the Agreement, a distribution will be made on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified on the face hereof, to the Person in whose name this
Certificate is registered at the close of business on the applicable Record Date
in an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to Holders of Certificates
of the Class to which this Certificate belongs on such Distribution Date
pursuant to the Agreement. The Record Date applicable to each Distribution Date
is the last Business Day of the month next preceding the month of such
Distribution Date.

     Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five Business Days prior
to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the Corporate Trust Office or such other
location specified in the notice to Certificateholders of such final
distribution.

     The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee with the consent of the
Holders of Certificates affected by such amendment evidencing the requisite
Percentage Interest, as provided in the Agreement. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in exchange therefor or

                                      D-1

<PAGE>

in lieu hereof whether or not notation of such consent is made upon this
Certificate. The Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of the
Certificates.

     As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the Corporate Trust Office or the office or agency maintained by the
Trustee in New York, New York, accompanied by a written instrument of transfer
in form satisfactory to the Trustee and the Certificate Registrar duly executed
by the holder hereof or such holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of the same Class in authorized
denominations and evidencing the same aggregate Percentage Interest in the Trust
Fund will be issued to the designated transferee or transferees.

     The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Depositor, the Master Servicer and the Trustee and any agent of the
Depositor or the Trustee may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and neither the Depositor, the
Trustee, nor any such agent shall be affected by any notice to the contrary.

     On any Distribution Date on which the Pool Principal Balance is less than
10% of the aggregate Cut-off Date Pool Principal Balance of Pool I and Pool II
combined, the Master Servicer will have the option to repurchase, in whole, from
the Trust Fund all remaining Mortgage Loans and all property acquired in respect
of the Mortgage Loans in the Mortgage Pools at a purchase price determined as
provided in the Agreement. In the event that no such optional termination
occurs, the obligations and responsibilities created by the Agreement will
terminate upon the later of the maturity or other liquidation (or any advance
with respect thereto) of the last Mortgage Loan remaining in the Trust Fund or
the disposition of all property in respect thereof and the distribution to
Certificateholders of all amounts required to be distributed pursuant to the
Agreement. In no event, however, will the trust created by the Agreement
continue beyond the expiration of 21 years from the death of the last survivor
of the descendants living at the date of the Agreement of a certain person named
in the Agreement.

     Any term used herein that is defined in the Agreement shall have the
     meaning assigned in the Agreement, and nothing herein shall be deemed
     inconsistent with that meaning.

                                      D-2

<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

                         ------------------------------
                        (Please insert social security or
                      other identifying number of assignee)

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

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

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

the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Certificate Register of the Trust Fund.

     I (We) further direct the Trustee to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate
to the following address:

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

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

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

Dated:   __________________

                                      --------------------------------------
                                      Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS

     The assignee should include the following for purposes of distribution:

     Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ______________________________________, for the account of
_____________________, account number ___________, or, if mailed by check, to
___________________________. Applicable statements should be mailed to
__________________________.

     This information is provided by ________________________________________,
the assignee named above, or _________________, as its agent.

                                      D-3

<PAGE>

                                    EXHIBIT E

                   FORM OF INITIAL CERTIFICATION OF CUSTODIAN

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way

Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286

     Re:  Custodial Agreement dated as of September 30, 2002 by and among the
          Bank of New York, as Trustee, First Horizon Home Loan Corporation, as
          Servicer and LaSalle Bank National Association, as Custodian

Gentlemen:

     In accordance with Section 2 of the above-captioned Custodial Agreement
(the "Custodial Agreement"), the undersigned, as Custodian, hereby certifies
that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than
any Mortgage Loan listed in the attached schedule), it has received:

     (i)  the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of ________, without recourse"; and

     (ii) a duly executed assignment of the Mortgage (which may be included in a
blanket assignment or assignments); provided, however, that it has received no
assignment with respect to any Mortgage for which the related Mortgaged Property
is located in the Commonwealth of Puerto Rico.

     Based on its review and examination and only as to the foregoing documents,
such documents appear regular on their face and related to such Mortgage Loan.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Custodial Agreement.

                                      E-1

<PAGE>
                                              LASALLE BANK NATIONAL ASSOCIATION,
                                              as Custodian

                                              By:    ___________________________
                                              Name:  ___________________________
                                              Title: ___________________________

                                      E-2

<PAGE>

                                    EXHIBIT F

                      FORM OF DELAY DELIVERY CERTIFICATION

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286

     Re:  Custodial Agreement dated as of September 30, 2002 by and among the
          Bank of New York, as Trustee, First Horizon Home Loan Corporation, as
          Servicer and LaSalle Bank National Association, as Custodian

Ladies and Gentlemen:

         In accordance with Section 3 of the above-captioned Custodial Agreement
(the "Custodial Agreement"), the undersigned, as Custodian, hereby certifies
that, as to each Delay Delivery Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Delay Delivery Mortgage Loan listed in the attached
schedule), it has received:

     (i)  the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of_______, without recourse"; and

     (ii) a duly executed assignment of the Mortgage (which may be included in a
blanket assignment or assignments); provided, however, that it has received no
assignment with respect to any Mortgage for which the related Mortgage Property
is located in the Commonwealth of Puerto Rico.

     Based on its review and examination and only as to the foregoing documents,
such documents appear regular on their face and related to such Delay Delivery
Mortgage Loan.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Delay Delivery Mortgage
Loans identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Delay Delivery Mortgage
Loan.

                                      E-1

<PAGE>

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Custodial Agreement.

                                              LASALLE BANK NATIONAL ASSOCIATION,

                                              By:    ___________________________
                                              Name:  ___________________________
                                              Title: ___________________________

                                      E-2

<PAGE>

                                    EXHIBIT G

                    FORM OF FINAL CERTIFICATION OF CUSTODIAN

                                     [date]

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286

     Re:  Custodial Agreement dated as of September 30, 2002 by and among the
          Bank of New York, as Trustee, First Horizon Home Loan Corporation, as
          Servicer and LaSalle Bank National Association, as Custodian

Ladies and Gentlemen:

          In accordance with Section 2 of the above-captioned Custodial
Agreement (the "Custodial Agreement"), the undersigned, as Custodian hereby
certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or listed on the attached Document
Exception Report) it has received:

          (i)   (A) The original Mortgage Note endorsed by manual or facsimile
                signature in blank in the following form: "Pay to the order of
                ____________without recourse," with all intervening endorsements
                showing a complete chain of endorsements from the originator to
                the Person endorsing the Mortgage Note (each such endorsement
                being sufficient to transfer all right, title and interest of
                the party so endorsing, as noteholder or assignee thereof, in
                and to that Mortgage Note); or

               (B) with respect to any Lost Mortgage Note, a lost note affidavit
     from the Seller stating that the original Mortgage Note was lost or
     destroyed, together with a copy of such Mortgage Note;

          (ii)  except as provided below, the original recorded Mortgage or a
                copy of such Mortgage certified by the Seller as being a true
                and complete copy of the Mortgage;

          (iii) a duly executed assignment of the Mortgage in blank (which may
                be included in a blanket assignment or assignments), together
                with, except as provided below, all interim recorded assignments
                of such mortgage each such assignment, when duly and validly
                completed, to be in recordable form and sufficient to effect the
                assignment of and transfer to the assignee thereof, under the
                Mortgage to which the assignment related); provided

                                      G-1

<PAGE>

            that, if the related Mortgage has not been returned from the
            applicable public recording office, such assignment of the Mortgage
            may exclude the information to be provided by the recording office;

     (iv)   the original or copies of each assumption, modification, written
            assurance or substitution agreement, if any;

     (v)    either the original or duplicate original title policy (including
            all riders thereto) with respect to the related mortgaged property,
            if available, provided that the title policy (including all riders
            thereto) will be delivered as soon as it becomes available, and if
            the title policy is not available, and to the extent required
            pursuant to the second paragraph below or otherwise in connection
            with the rating of the Certificates, a written commitment or
            interim binder or preliminary report of the title issued by the
            title insurance or escrow company with respect to the mortgaged
            property, and

     (vi)   in the case of a Cooperative Loan, the originals of the following
            documents or instruments:

            (a)  The Coop Shares, together with a stock power in blank;

            (b)  The executed Security Agreement;

            (c)  The executed Proprietary Lease;

            (d)  The executed UCC-1 financing statement with evidence of
                 recording thereon which have been filed in all places required
                 to perfect the Seller's interest in the Coop Shares and the
                 Proprietary Lease; and

            (e)  Executed UCC-3 financing statements or their appropriate UCC
                 financing statements required by state law, evidencing a
                 complete and unbroken line from the mortgagee to the Trustee
                 with evidence of recording thereon (or in a form suitable
                 for recordation).

            Based on its review and examination and only as to the foregoing
     documents, (a) such documents appear regular on their face and related to
     such Mortgage Loan, and (b) the information set forth in items (i), (ii),
     (iii), (iv), (vi) and (xi) of the definition of the "Mortgage Loan
     Schedule" in Article I of the Pooling and Servicing Agreement accurately
     reflects information set forth in the Mortgage File.

     The Custodian has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Custodial Agreement. The Custodian makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Notwithstanding anything herein to the contrary, the Custodian has made no
determination and makes no representations as to whether

                                      G-2

<PAGE>

(i) any endorsement is sufficient to transfer all right, title, and interest of
the party so endorsing, as noteholder or assignee thereof, in and to that
Mortgage Note or (ii) any assignment is in recordable form or sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which the assignment relates.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Custodial Agreement.

                                            LASALLE BANK NATIONAL ASSOCIATION,

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

                                      G-3

<PAGE>

                                    EXHIBIT H

                               TRANSFER AFFIDAVIT

                First Horizon Mortgage Pass-Through Trust 2002-6
                       Mortgage Pass-Through Certificates
                                  Series 2002-6

STATE OF           )
                   )ss.:
COUNTY OF          )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of __________, the proposed Transferee
of an Ownership Interest in a Class I-A-R Certificate (the "Certificate") issued
pursuant to the Pooling and Servicing Agreement, (the "Agreement"), relating to
the above-referenced Series, by and among First Horizon Asset Securities Inc.,
as depositor (the "Depositor"), First Horizon Home Loan Corporation, as master
servicer, and The Bank of New York, as trustee. Capitalized terms used, but not
defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such
terms in the Agreement. The Transferee has authorized the undersigned to make
this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate either (i) for its own account or (ii) as
nominee, trustee or agent for another Person and has attached hereto an
affidavit from such Person in substantially the same form as this affidavit. The
Transferee has no knowledge that any such affidavit is false.

         3. The Transferee has been advised of, and understands that (i) a tax
may be imposed on Transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferor, or, if such
Transfer is through an agent (which includes a broker, nominee or middleman) for
a Person that is not a Permitted Transferee, on the agent; and (iii) the Person
otherwise liable for the tax shall be relieved of liability for the tax if the
subsequent transferee furnished to such Person an affidavit that such subsequent
transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.

         4. The Transferee has been advised of, and understands that a tax may
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership, trust or estate,
and certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

                                       H-1

<PAGE>

     5.  The Transferee has reviewed the provisions of Section 5.2(c) of the
Agreement (attached hereto as Exhibit 2 and incorporated herein by reference)
and understands the legal consequences of the acquisition of an Ownership
Interest in the Certificate including, without limitation, the restrictions on
subsequent Transfers and the provisions regarding voiding the Transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 5.2(c) of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the Transfer
to the Transferee contemplated hereby null and void.

     6.  The Transferee agrees to require a Transfer Affidavit from any Person
to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit I to the Agreement (a "Transferor Certificate") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

     7.  The Transferee does not have the intention to impede the assessment or
collection of any tax legally required to be paid with respect to the
Certificate.

     8.  The Transferee's taxpayer identification number is ______.

     9.  The Transferee is either a U.S. Person as defined in Code Section
7701(a)(30) or the Transferee has furnished the Transferor a properly completed
Internal Revenue Service Form W-8ECI.

     10. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax.

     11. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, and the Transferee
is not acting on behalf of such a plan.

     12. The Transferee has historically paid its debts as they came due and
the Transferee will continue to pay its debts as they come due in the future;
the Transferee understands that, as the holder of the Certificate, the
Transferee may incur tax liabilities in excess of any cash flows generated by
the Certificate and the Transferee intends to pay taxes associated with holding
the Certificate as they become due.

     13. The Transferee is a domestic corporation taxable as a regular
corporation for U.S. federal income tax purposes (a "taxable domestic C
corporation") and is not a real estate investment trust, regulated investment
company or REMIC. The Transferee will not cause income from the Certificate to
be attributable, for U.S. federal income tax purposes, to a non-U.S. permanent
establishment or fixed base (within the meaning of an applicable income tax

                                      H-2

<PAGE>

treaty) of the Transferee or another U.S. taxpayer. At the time of the Transfer,
and at the close of each of the Transferee's two fiscal years preceding the year
of the Transfer, the Transferee's gross assets for financial reporting purposes
exceeded $10 million (together, the "Asset Requirements"), and the Transferee
hereby covenants that any subsequent Transfer of its Ownership Interest in the
Certificate will be to another taxable, domestic C corporation satisfying the
Asset Requirements

     IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ___ day of _________, 20__.

                                               _________________________________
                                               Print Name of Transferee

                                               By:______________________________
                                               Name:____________________________
                                               Title:___________________________

     Personally appeared before me the above-named ________________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the _________________ of the Transferee, and acknowledged that he executed
the same as his free act and deed and the free act and deed of the Transferee.

     Subscribed and sworn before me this _____ day of ___________, 20____.

                                               _________________________________
                                               NOTARY PUBLIC

                                               My Commission expires the ___
                                               day of ________________, 20___.

                                       H-3

<PAGE>

                                                          EXHIBIT 1 to EXHIBIT H

                               Certain Definitions

     "Ownership Interest": As to any Certificate, any ownership interest in such
Certificate, including any interest in such Certificate as the Holder thereof
and any other interest therein, whether direct or indirect, legal or beneficial.

     "Permitted Transferee": Any Person other than (i) the United States, any
State or political subdivision thereof, or any agency or instrumentality of any
of the foregoing, (ii) a foreign government, International Organization or any
agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code)
which is exempt from tax imposed by Chapter 1 of the Code (including the tax
imposed by section 511 of the Code on unrelated business taxable income) on any
excess inclusions (as defined in section 860E(c)(l) of the Code) with respect to
any Certificate, (iv) rural electric and telephone cooperatives described in
section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in section 775 of the Code, (vi) a Person that is not (a) a citizen or
resident of the United States, (b) a corporation, partnership, or other entity
created or organized in or under the laws of the United States, any state
thereof or the District of Columbia, (c) an estate whose income from sources
without the United States is includible in gross income for United States
federal income tax purposes regardless of its connection with the conduct of a
trade or business within the United States or (d) a trust if a court within the
United States is able to exercise primary supervision over the administration of
the trust and one or more United States persons have the authority to control
all substantial decisions of the trust, unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI or any applicable successor form, and (vii) any other Person so
designated by the Depositor based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Certificate to such Person may cause the REMIC
created pursuant to the Agreement to fail to qualify as a REMIC at any time that
the Certificates (as defined in the Agreement) are outstanding; provided,
however, that if a person is classified as a partnership or a disregarded entity
under the Code, such person shall only be a Permitted Transferee if all of its
beneficial owners are described in subclauses (a), (b), (c) or (d) of clause
(vi) and the governing documents of such person prohibits a transfer of any
interest in such person to any person described in clause (vi). The terms
"United States," "State" and "International Organization" shall have the
meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

     "Person": Any individual, corporation, partnership, joint venture,
association, bank, joint-stock company, trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political
subdivision thereof.

     "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

                                      H-4

<PAGE>

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

                                      H-5

<PAGE>

                                                          EXHIBIT 2 to EXHIBIT H

                         Section 5.2(c) of the Agreement

     (c)  Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

          (i)    Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall be a Permitted Transferee and shall promptly
     notify the Trustee of any change or impending change in its status as a
     Permitted Transferee.

          (ii)   No Ownership Interest in a Residual Certificate may be
     registered on the Closing Date or thereafter transferred, and the Trustee
     shall not register the Transfer of any Residual Certificate unless, in
     addition to the certificates required to be delivered to the Trustee under
     subparagraph (b) above, the Trustee shall have been furnished with an
     affidavit (a "Transfer Affidavit") of the initial owner or the proposed
     transferee in the form attached hereto as Exhibit H.

          (iii)  Each Person holding or acquiring any Ownership Interest in a
     Residual Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from
     any Person for whom such Person is acting as nominee, trustee or agent in
     connection with any Transfer of a Residual Certificate and (C) not to
     Transfer its Ownership Interest in a Residual Certificate or to cause the
     Transfer of an Ownership Interest in a Residual Certificate to any other
     Person if it has actual knowledge that such Person is not a Permitted
     Transferee.

          (iv)   Any attempted or purported Transfer of any Ownership Interest
     in a Residual Certificate in violation of the provisions of this Section
     5.2(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder of
     a Residual Certificate in violation of the provisions of this Section
     5.2(c), then the last preceding Permitted Transferee shall be restored to
     all rights as Holder thereof retroactive to the date of registration of
     Transfer of such Residual Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Residual
     Certificate that is in fact not permitted by Section 5.2(b) and this
     Section 5.2(c) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder under
     the provisions of this Agreement so long as the Transfer was registered
     after receipt of the related Transfer Affidavit, Transferor Certificate and
     either the Rule 144A Letter or the Investment Letter. The Trustee shall be
     entitled but not obligated to recover from any Holder of a Residual
     Certificate that was in fact not a Permitted Transferee at the time it
     became a Holder or, at such subsequent time as it became other than a
     Permitted Transferee, all payments made on such Residual Certificate at and
     after either such time. Any such payments so recovered by the Trustee shall
     be paid and delivered by the Trustee to the last preceding Permitted
     Transferee of such Certificate.

                                      H-6

<PAGE>
          (v)    The Depositor shall use its best efforts to make available,
     upon receipt of written request from the Trustee, all information necessary
     to compute any tax imposed under Section 860E(e) of the Code as a result of
     a Transfer of an Ownership Interest in a Residual Certificate to any Holder
     who is not a Permitted Transferee.

     The restrictions on Transfers of a Residual Certificate set forth in this
Section 5.2(c) shall cease to apply (and the applicable portions of the legend
on a Residual Certificate may be deleted) with respect to Transfers occurring
after delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
shall not be an expense of the Trust Fund, the Trustee or the Master Servicer,
to the effect that the elimination of such restrictions will not cause the REMIC
created hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding or result in the imposition of any tax on the Trust
Fund, a Certificateholder or another Person. Each Person holding or acquiring
any Ownership Interest in a Residual Certificate hereby consents to any
amendment of this Agreement which, based on an Opinion of Counsel furnished to
the Trustee, is reasonably necessary (a) to ensure that the record ownership of,
or any beneficial interest in, a Residual Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Residual Certificate which is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

                                      H-7

<PAGE>
                                    EXHIBIT I

                         FORM OF TRANSFEROR CERTIFICATE

                                                          _______________, 20___

First Horizon Asset Securities Inc.
First Horizon Home Loan Corporation
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286

     Re:  First Horizon Mortgage Pass-Through Trust 2002-6 Mortgage
          Pass-Through Certificates, Series 2002-6, Class____

Ladies and Gentlemen:

     In connection with our disposition of the above Certificates we certify
that (a) to the extent we are disposing of a Private Certificate, we understand
that the Private Certificate has not been registered under the Securities Act of
1933, as amended (the "Act"), and is being disposed of by us in a transaction
that is exempt from the registration requirements of the Act, (b) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, in a manner that would be deemed, or taken any other action
which would result in, a violation of Section 5 of the Act, and (c) to the
extent we are disposing of a Class I-A-R Certificate, we have no knowledge the
transferee is not a Permitted Transferee.

     Capitalized terms used herein shall have the meaning ascribed to such terms
in the Pooling and Servicing Agreement dated September 1, 2002, by and among
First Horizon Asset Securities Inc., as depositor, First Horizon Home Loan
Corporation, as master servicer, and The Bank of New York, as trustee, pursuant
to which the Class I-A-R Certificates were issued.

                                              Very truly yours,

                                              __________________________________
                                              Print Name of Transferor

                                              By:_______________________________
                                              Authorized Officer

                                      I-1

<PAGE>
                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                                            _____________, 20___

First Horizon Asset Securities Inc.
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286
Attention: Mortgage-Backed Securities Group

     Re:  First Horizon Mortgage Pass-Through Trust 2002-6 Mortgage
          Pass-Through Certificates, Series 2002-6, Class ___

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) either (i) we are not an employee benefit plan
that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement nor are we using the assets of any such plan or
arrangement to effect such acquisition or (ii)if we are an insurance company, a
representation that we are an insurance company which is purchasing such
Certificates with funds contained in an "insurance company general account" (as
such term is defined in Section V(e) of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60")) and that the purchase and holding of such Certificates are
covered under PTCE 95-60, (e) if an insurance company, we are purchasing the
Certificates with funds contained in an "insurance company general account" (as
defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and our purchase and holding of the Certificates are covered under PTCE
95-60, (f) we are acquiring the Certificates for investment for our own account
and not with a view to any distribution of such Certificates (but without
prejudice to our right at all times to sell or otherwise dispose of the
Certificates in accordance with clause (h) below), (g) we have not offered or
sold any Certificates to, or solicited offers to buy any Certificates from, any
person, or otherwise approached or negotiated with any person with respect
thereto, or taken any other action which would result in a violation of Section
5 of the Act, and (h) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration

                                      J-1

<PAGE>

statement under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this Certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Pooling and Servicing Agreement.

                                              Very truly yours,

                                              __________________________________
                                              Print Name of Transferee

                                              By:_______________________________
                                              Authorized Officer

                                      J-2

<PAGE>

                                    EXHIBIT K

                            FORM OF RULE 144A LETTER

                                                               ___________, 20__

First Horizon Asset Securities Inc.
4000 Horizon Way
Irving, Texas  75063

The Bank of New York
101 Barclay Street, 8W
New York, New York  10286
Attention:  Mortgage-Backed Securities Group

    Re:  First Horizon Mortgage Pass-Through Trust 2002-6 Mortgage
         Pass-Through Certificates, Series 2002-6, Class ___

Ladies and Gentlemen:

     In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
nor using the assets of any such plan or arrangement to effect such acquisition,
(e) if an insurance company, we are purchasing the Certificates with funds
contained in an "insurance company general account" (as defined in Section V(e)
of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and our purchase
and holding of the Certificates are covered under PTCE 95-60, (f) we have not,
nor has anyone acting on our behalf offered, transferred, pledged, sold or
otherwise disposed of the Certificates, any interest in the Certificates or any
other similar security to, or solicited any offer to buy or accept a transfer,
pledge or other disposition of the Certificates, any interest in the
Certificates or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the Certificates or
any other similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Act or that would render the disposition of the Certificates a violation of
Section 5 of the Act or require registration pursuant thereto, nor will act, nor
has authorized or will authorize any person to act, in such

                                      K-1

<PAGE>

manner with respect to the Certificates, (g) we are a "qualified institutional
buyer" as that term is defined in Rule 144A under the Act ("Rule 144A") and have
completed either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2, (h) we are aware that the sale to us is being made in
reliance on Rule 144A, and (i) we are acquiring the Certificates for our own
account or for resale pursuant to Rule 144A and further, understand that such
Certificates may be resold, pledged or transferred only (A) to a person
reasonably believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, or (B) pursuant to another exemption from registration under the Act.

                                                  Very truly yours,

                                                  ______________________________
                                                  Print Name of Transferee

                                                  By:___________________________
                                                  Authorized Officer

                                      K-2

<PAGE>

                                                            ANNEX 1 TO EXHIBIT K

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

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

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

         ___ Corporation, etc. The Buyer is a corporation (other than a bank,
     savings and loan association or similar institution), Massachusetts or
     similar business trust, partnership, or charitable organization described
     in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

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

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

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

         ___ Insurance Company. The Buyer is an insurance company whose primary
     and predominant business activity is the writing of insurance or the
     reinsuring of risks underwritten by insurance companies and which is
     subject to supervision by the

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

                                      K-3

<PAGE>

     insurance commissioner or a similar official or agency of a State,
     territory or the District of Columbia.

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

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

         ___ Investment Advisor. The Buyer is an investment advisor registered
     under the Investment Advisors Act of 1940.

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

         ___ Business Development Company. Buyer is a business development
     company as defined in Section 202(a)(22) of the Investment Advisors Act of
     1940.

     3.  The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

     4.  For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

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

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

                                      K-4

<PAGE>

constitute a reaffirmation of this certification as of the date of such
purchase. In addition, if the Buyer is a bank or savings and loan is provided
above, the Buyer agrees that it will furnish to such parties updated annual
financial statements promptly after they become available.

                                           _____________________________________
                                           Print Name of Transferee

                                           By:__________________________________
                                           Name:________________________________
                                           Title:_______________________________

                                           Date:________________________________

                                      K-5

<PAGE>

                                                            ANNEX 2 TO EXHIBIT K

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

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

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

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

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

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

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

                                      K-6

<PAGE>

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

         6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                                ________________________________
                                                Print Name of Transferee

                                                By: ____________________________
                                                Name: __________________________
                                                Title: _________________________

                                                IF AN ADVISER:

                                                ________________________________
                                                Print Name of Buyer

                                                Date: __________________________

                                      K-7

<PAGE>

                                    EXHIBIT L

                               REQUEST FOR RELEASE

                     [Substitution of Deleted Mortgage Loans

                                       or

                          Mortgage Loans Paid in Full]

            ____________________________________ Mortgage Loan Files

______________ hereby certifies that he/she is an officer of __________________,
holding the office set forth beneath his/her signature, and hereby further
certifies as follows:

(Check One)

[_]  With respect to the mortgage loans described in the attached schedule, each
     such mortgage loan constitutes a "Substitute Mortgage Loan" (as the term is
     defined in the Pooling and Servicing Agreement).

[_]  With respect to the "Mortgage Loans" (as the term is defined in the
     custodial agreement) described in the attached schedule:

     All payments of principal, premium (if any), and interest have been made
     with respect to the following:

     Loan Number: _________________________________

     Borrower's Name: ______________________________

     County: ______________________________________

     We hereby certify that all amounts to be received in connection with such
     payments have been received.

______________________________

Dated: _______________________

/ / Vice President

/ / Assistant Vice President

                                      L-1

<PAGE>
                                    EXHIBIT M

                         REQUEST FOR RELEASE AND RECEIPT
                         [For Servicing and Foreclosure]

            _____________________________________ Mortgage Loan Files

LOAN INFORMATION

         Name of Mortgagor:  __________________________________

         Loan No.:           __________________________________

         The undersigned hereby acknowledges that it has received from LASALLE
BANK NATIONAL ASSOCIATION, as Custodian for ____________________ Mortgage Loan
Files, the documents referred to below (the "Documents"). All capitalized terms
not otherwise defined in this Request for Release and Receipt shall have the
meanings ascribed to them in the Custodial Agreement dated as of
__________________ among ___________________ and LASALLE BANK NATIONAL
ASSOCIATION, as Custodian (the "Custodial Agreement").

                             [complete as necessary]

         The undersigned hereby acknowledges an agrees as follows:

         (1) The undersigned shall hold and retain possession of the Documents
in trust for the benefit of __________________, solely for the purposes provided
in the Custodial Agreement.

         (2) The undersigned shall not cause or permit the Documents to become
subject to, or encumbered by, any claim, liens, security interest, charges,
writs of attachment or other impositions nor shall the undersigned assert or
seek to assert any claims or rights of setoff to or against the Documents or any
proceeds thereof.

         (3) The undersigned shall return each and every Document previously
requested from the Mortgage File to the Custodian when the need therefor no
longer exists, unless the Mortgage Loan relating to the Documents has been
liquidated.

Date:  ________________________

                                             NAME

                                             By: _______________________________
                                             Name: _____________________________
                                             Title: ____________________________

                                      M-1

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