Document:

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                                                                     Exhibit 4.8

                           TRUST PREFERRED SECURITIES

                               GUARANTEE AGREEMENT

                            R&G FINANCIAL CORPORATION

                         Dated as of ________ ___, 200_

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                                TABLE OF CONTENTS
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ARTICLE I   DEFINITIONS AND INTERPRETATION

Section 1.1      Definitions and Interpretation..................................................       1

ARTICLE II   TRUST INDENTURE ACT

Section 2.1      Trust Indenture Act; Application................................................       5
Section 2.2      Lists of Holders of Trust Preferred Securities..................................       5
Section 2.3      Reports by the Trust Preferred Securities Guarantee Trustee.....................       5
Section 2.4      Periodic Reports to Trust Preferred Securities Guarantee Trustee................       5
Section 2.5      Evidence of Compliance with Conditions Precedent................................       6
Section 2.6      Guarantee Events of Default; Waiver.............................................       6
Section 2.7      Guarantee Event of Default; Notice..............................................       6
Section 2.8      Conflicting Interests...........................................................       6

ARTICLE III   POWERS, DUTIES AND RIGHTS OF TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

Section 3.1      Powers and Duties of the Trust Preferred Securities Guarantee Trustee...........       7
Section 3.2      Certain Rights of Trust Preferred Securities Guarantee Trustee..................       8
Section 3.3      Not Responsible for Recitals or Issuance of Trust Preferred
                 Securities Guarantee............................................................      10

ARTICLE IV   TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

Section 4.1      Trust Preferred Securities Guarantee Trustee; Eligibility.......................      11
Section 4.2      Appointment, Removal and Resignation of Trust Preferred Securities
                 Guarantee Trustee...............................................................      11

ARTICLE V   GUARANTEE

Section 5.1      Guarantee.......................................................................      12
Section 5.2      Waiver of Notice and Demand.....................................................      12
Section 5.3      Obligations Not Affected........................................................      12
Section 5.4      Rights of Holders...............................................................      13
Section 5.5      Guarantee of Payment............................................................      14
Section 5.6      Subrogation.....................................................................      14
Section 5.7      Independent Obligations.........................................................      14

ARTICLE VI   LIMITATION OF TRANSACTIONS; SUBORDINATION

Section 6.1      Limitation of Transactions......................................................      14
Section 6.2      Ranking.........................................................................      15
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ARTICLE VII   TERMINATION

Section 7.1     Termination......................................................................      15

ARTICLE VIII   INDEMNIFICATION

Section 8.1     Exculpation......................................................................      16
Section 8.2     Indemnification..................................................................      16

ARTICLE IX   MISCELLANEOUS

Section 9.1     Successors and Assigns...........................................................      16
Section 9.2     Amendments.......................................................................      17
Section 9.3     Notices..........................................................................      17
Section 9.4     Benefit..........................................................................      18
Section 9.5     Governing Law....................................................................      18
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                 TRUST PREFERRED SECURITIES GUARANTEE AGREEMENT

         This Trust Preferred Securities Guarantee Agreement (the "Trust
Preferred Securities Guarantee"), dated as of __________ __, 200_, is executed
and delivered by R&G Financial Corporation, a Puerto Rico corporation (the
"Guarantor"), and _______________________, a _________ banking corporation, as
trustee, for the benefit of the Holders (as defined herein) from time to time of
the Trust Preferred Securities (as defined herein) of R&G Capital Trust ___, a
Delaware statutory trust (the "Issuer").

         WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Declaration"), dated as of_______ __, 200_, among the trustees of the Issuer
named therein, the Guarantor, as sponsor, and the Holders from time to time of
undivided beneficial interests in the assets of the Issuer, the Issuer is
issuing on the date hereof, __________ trust preferred securities, having an
aggregate liquidation amount of $__________, such trust preferred securities
being designated the ___% Cumulative Trust Preferred Securities (collectively
the "Trust Preferred Securities"); and

         WHEREAS, as incentive for the Holders to purchase the Trust Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Trust Preferred Securities Guarantee, to pay to the
Holders the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein; and

         WHEREAS, the Guarantor is executing and delivering a guarantee
agreement (the "Common Securities Guarantee"), with substantially identical
terms to this Trust Preferred Securities Guarantee, for the benefit of the
holders of the Common Securities (as defined herein), except that if an Event of
Default (as defined in the Declaration) has occurred and is continuing, the
rights of holders of the Common Securities to receive Guarantee Payments under
the Common Securities Guarantee are subordinated, to the extent and in the
manner set forth in the Common Securities Guarantee, to the rights of holders of
Trust Preferred Securities to receive Guarantee Payments under this Trust
Preferred Securities Guarantee;

         NOW, THEREFORE, in consideration of the purchase by each Holder, which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the
Guarantor executes and delivers this Trust Preferred Securities Guarantee for
the benefit of the Holders.

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 DEFINITIONS AND INTERPRETATION

         In this Trust Preferred Securities Guarantee, unless the context
otherwise requires:

         (a) capitalized terms used in this Trust Preferred Securities Guarantee
but not defined in the preamble above have the respective meanings assigned to
them in this Section 1.1;

         (b) a term defined in the Declaration as at the date of execution of
this Trust Preferred Securities Guarantee have the same meaning when used in
this Trust Preferred Securities Guarantee unless otherwise defined in this Trust
Preferred Securities Guarantee;

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         (c) a term defined anywhere in this Trust Preferred Securities
Guarantee has the same meaning throughout;

         (d) all references to "the Trust Preferred Securities Guarantee" or
"this Trust Preferred Securities Guarantee" are to this Trust Preferred
Securities Guarantee as modified, supplemented or amended from time to time;

         (e) all references in this Trust Preferred Securities Guarantee to
Articles and Sections are to Articles and Sections of this Trust Preferred
Securities Guarantee, unless otherwise specified;

         (f) a term defined in the Trust Indenture Act has the same meaning when
used in this Trust Preferred Securities Guarantee, unless otherwise defined in
this Trust Preferred Securities Guarantee or unless the context otherwise
requires; and

         (g) a reference to the singular includes the plural and vice versa.

         "Affiliate" has the same meaning as given to that term in Rule 405
under the Securities Act of 1933, as amended, or any successor rule thereunder.

         "Business Day" means any day other than a Saturday or a Sunday, or a
day on which banking institutions in the cities of New York, New York,
Wilmington, Delaware or San Juan, Puerto Rico are authorized or required by law
or executive order to close.

         "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer.

         "Corporate Trust Office" means the office of the Trust Preferred
Securities Guarantee Trustee at which the corporate trust business of the Trust
Preferred Securities Guarantee Trustee shall, at any particular time, be
principally administered, which office at the date of execution of this Trust
Preferred Securities Guarantee is located at __________________________________.

         "Covered Person" means any Holder or beneficial owner of Trust
Preferred Securities.

         "Debentures" means the series of subordinated deferrable interest
debentures of the Guarantor designated the ___% Junior Subordinated Deferrable
Interest Debentures due ____________ __, 20__ held by the Property Trustee (as
defined in the Declaration) of the Issuer.

         "Guarantee Event of Default" means a default by the Guarantor on any of
its payment or other obligations under this Trust Preferred Securities
Guarantee; provided, however, that except with respect to a default in payment
of any Guarantee Payment, the Guarantor shall have received notice of default
and shall not have cured such default within 60 days after receipt of such
notice.

         "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Trust Preferred Securities, to the
extent not paid or made by the Issuer: (i) any accumulated and unpaid
Distributions (as defined in the Declaration) that are required to be paid on
such Trust Preferred Securities to the extent the Issuer has funds on hand
legally available therefor at such time; (ii) the redemption price, including
all accumulated and unpaid Distributions to the date of redemption (the
"Redemption Price") to the extent the Issuer has funds on hand legally available
therefor at such time, with respect to any Trust Preferred Securities called for
redemption

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by the Issuer; and (iii) upon a voluntary or involuntary dissolution or winding
up of the Issuer (other than in connection with the distribution of Debentures
to the Holders in exchange for Trust Preferred Securities as provided in the
Declaration), the lesser of (a) the aggregate of the liquidation amount and all
accumulated and unpaid Distributions on the Trust Preferred Securities to the
date of payment, to the extent the Issuer has funds on hand legally available
therefor, and (b) the amount of assets of the Issuer remaining available for
distribution to Holders in liquidation of the Issuer after satisfaction of
liabilities to creditors (in either case, the "Liquidation Distribution"). If an
Event of Default has occurred and is continuing, no Guarantee Payments under the
Common Securities Guarantee with respect to the Common Securities or any
guarantee payment under any Other Common Securities Guarantees shall be made
until the Holders shall be paid in full the Guarantee Payments to which they are
entitled under this Trust Preferred Securities Guarantee.

         "Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Trust Preferred Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Trust Preferred
Securities have given any request, notice, consent or waiver hereunder, "Holder"
shall not include the Guarantor or any Affiliate of the Guarantor.

         "Indemnified Person" means the Trust Preferred Securities Guarantee
Trustee, any Affiliate of the Trust Preferred Securities Guarantee Trustee, or
any officers, directors, shareholders, members, partners, employees,
representatives, nominees, custodians or agents of the Trust Preferred
Securities Guarantee Trustee.

         "Indenture" means the Indenture dated as of __________ __, 200_,
between the Guarantor (the "Debenture Issuer") and ______________________, as
trustee (the "Indenture Trustee"), pursuant to which the Debentures are to be
issued to the Property Trustee of the Issuer.

         "Indenture Event of Default" shall mean any event specified in Section
5.01 of the Indenture.

         "Majority in liquidation amount of the Trust Preferred Securities"
means, except as provided by the Declaration, the terms of the Preferred
Securities or by the Trust Indenture Act, a vote by Holder(s) of more than 50%
of the aggregate liquidation amount of all Trust Preferred Securities. In
determining whether the Holders of the requisite amount of Trust Preferred
Securities have voted, Trust Preferred Securities which are owned by the
Guarantor or any Affiliate of the Guarantor or any other obligor on the Trust
Preferred Securities shall be disregarded for the purpose of any such
determination.

         "Officers' Certificate" means, with respect to the Guarantor, a
certificate signed by any two of the following: the Chairman, a Vice Chairman,
the Chief Executive Officer, the President, a Vice President, the Comptroller,
the Secretary or an Assistant Secretary of the Guarantor. Any Officers'
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Trust Preferred Securities Guarantee (other than pursuant
to Section 314(d)(4) of the Trust Indenture Act) shall include:

         (a) a statement that each officer signing the Officers' Certificate has
read the covenant or condition and the definitions relating thereto;

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         (b) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

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

         "Other Common Securities Guarantees" shall have the same meaning as
"Other Guarantees" as defined in the Common Securities Guarantee.

         "Other Debentures" means all junior subordinated debentures issued by
the Guarantor from time to time and sold to trusts to be established by the
Guarantor, in each case similar to the Issuer.

         "Other Guarantees" means all guarantees issued or to be issued by the
Guarantor with respect to trust preferred securities similar to the Trust
Preferred Securities issued by other trusts established or to be established by
the Guarantor, in each case similar to the Issuer.

         "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

         "Responsible Officer" means, with respect to the Trust Preferred
Securities Guarantee Trustee, any officer within the Corporate Trust Office of
the Trust Preferred Securities Guarantee Trustee with direct responsibility for
the administration of this Trust Preferred Securities Guarantee and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of that officer's knowledge of and familiarity
with the particular subject.

         "Successor Trust Preferred Securities Guarantee Trustee" means a
successor Trust Preferred Securities Guarantee Trustee possessing the
qualifications to act as Trust Preferred Securities Guarantee Trustee under
Section 4.1.

         "Trust Preferred Securities Guarantee Trustee" means
___________________, a __________ banking corporation, until a Successor Trust
Preferred Securities Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Trust Preferred Securities Guarantee
and thereafter means each such Successor Trust Preferred Securities Guarantee
Trustee.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.

         "Trust Securities" means the Common Securities and the Trust Preferred
Securities, collectively.

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                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.1 TRUST INDENTURE ACT; APPLICATION

         (a) This Trust Preferred Securities Guarantee is subject to the
provisions of the Trust Indenture Act that are required to be part of this Trust
Preferred Securities Guarantee and shall, to the extent applicable, be governed
by such provisions; and

         (b) if and to the extent that any provision of this Trust Preferred
Securities Guarantee limits, qualifies or conflicts with the duties imposed by
Section 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties
shall control.

SECTION 2.2 LISTS OF HOLDERS OF TRUST PREFERRED SECURITIES

         (a) The Guarantor shall provide the Trust Preferred Securities
Guarantee Trustee (unless the Trust Preferred Securities Guarantee Trustee is
otherwise the registrar of the Trust Preferred Securities) with a list, in such
form as the Trust Preferred Securities Guarantee Trustee may reasonably require,
of the names and addresses of the Holders of the Trust Preferred Securities
("List of Holders") as of such date, (i) within 14 days after each record date
for payment of Distributions, as defined in the Declaration, and (ii) at any
other time within 30 days of receipt by the Guarantor of a written request for a
List of Holders as of a date no more than 14 days before such List of Holders is
given to the Trust Preferred Securities Guarantee Trustee, provided, that the
Guarantor shall not be obligated to provide such List of Holders at any time the
List of Holders does not differ from the most recent List of Holders given to
the Trust Preferred Securities Guarantee Trustee by the Guarantor. The Trust
Preferred Securities Guarantee Trustee shall preserve, in as current a form as
is reasonably practicable, all information contained in a List of Holders given
to it, provided that it may destroy any List of Holders previously given to it
on receipt of a new List of Holders.

         (b) The Trust Preferred Securities Guarantee Trustee shall comply with
its obligations under Sections 311(a), 311(b) and Section 312(b) of the Trust
Indenture Act.

SECTION 2.3 REPORTS BY THE TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

         Within 60 days after ________ of each year, commencing ______, 200___,
the Trust Preferred Securities Guarantee Trustee shall provide to the Holders
such reports as are required by Section 313 of the Trust Indenture Act, if any,
in the form and in the manner provided by Section 313 of the Trust Indenture
Act. The Trust Preferred Securities Guarantee Trustee shall also comply with the
other requirements of Section 313 of the Trust Indenture Act.

SECTION 2.4 PERIODIC REPORTS TO TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

         The Guarantor shall provide to the Trust Preferred Securities Guarantee
Trustee such documents, reports and information as required by Section 314 of
the Trust Indenture Act (if any) and the compliance certificate required by
Section 314 of the Trust Indenture Act in the form, in the

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manner and at the times required by Section 314 of the Trust Indenture Act,
provided that such compliance certificate shall be delivered on or before 120
days after the end of each fiscal year of the Guarantor.

SECTION 2.5 EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT

         The Guarantor shall provide to the Trust Preferred Securities Guarantee
Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Trust Preferred Securities Guarantee that relate to any of
the matters set forth in Section 314(c) of the Trust Indenture Act. Any
certificate or opinion required to be given by an officer pursuant to Section
314(c)(1) may be given in the form of an Officers' Certificate.

SECTION 2.6 GUARANTEE EVENTS OF DEFAULT; WAIVER

         The Holders of a Majority in liquidation amount of Trust Preferred
Securities may, by vote or by written consent, on behalf of all Holders, waive
any past Guarantee Event of Default and its consequences. Upon such waiver, any
such Guarantee Event of Default shall cease to exist, and any Guarantee Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Trust Preferred Securities Guarantee, but no such waiver shall extend to
any subsequent or other default or Guarantee Event of Default or impair any
right consequent thereon.

SECTION 2.7 GUARANTEE EVENT OF DEFAULT; NOTICE

         (a) The Trust Preferred Securities Guarantee Trustee shall, within 90
days after the occurrence of a Guarantee Event of Default, mail by first class
postage prepaid, to all Holders, notices of all Guarantee Events of Default
actually known to a Responsible Officer, unless such defaults have been cured
before the giving of such notice; provided, that, except in the case of a
Guarantee Event of Default in the timing or payment of any Guarantee Payment,
the Trust Preferred Securities Guarantee Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or a Responsible Officer of the
Trust Preferred Securities Guarantee Trustee in good faith determines that the
withholding of such notice is in the interests of the Holders.

         (b) The Trust Preferred Securities Guarantee Trustee shall not be
deemed to have knowledge of any Guarantee Event of Default unless the Trust
Preferred Securities Guarantee Trustee shall have received written notice from
the Guarantor, or a Responsible Officer charged with the administration of this
Trust Preferred Securities Guarantee shall have obtained actual knowledge, of
such Guarantee Event of Default.

SECTION 2.8 CONFLICTING INTERESTS

         The Declaration shall be deemed to be specifically described in this
Trust Preferred Securities Guarantee for the purposes of clause (i) of the first
proviso contained in Section 310(b) of the Trust Indenture Act.

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                                   ARTICLE III

                          POWERS, DUTIES AND RIGHTS OF

                  TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 3.1 POWERS AND DUTIES OF THE TRUST PREFERRED SECURITIES GUARANTEE
            TRUSTEE

         (a) This Trust Preferred Securities Guarantee shall be held by the
Trust Preferred Securities Guarantee Trustee for the benefit of the Holders, and
the Trust Preferred Securities Guarantee Trustee shall not transfer this Trust
Preferred Securities Guarantee to any Person except a Holder exercising his, her
or its rights pursuant to Section 5.4(b) or to a Successor Trust Preferred
Securities Guarantee Trustee on acceptance by such Successor Trust Preferred
Securities Guarantee Trustee of its appointment to act as Successor Trust
Preferred Securities Guarantee Trustee. The right, title and interest of the
Trust Preferred Securities Guarantee Trustee shall automatically vest in any
Successor Trust Preferred Securities Guarantee Trustee, and such vesting and
succession of title shall be effective whether or not conveyancing documents
have been executed and delivered pursuant to the appointment of such Successor
Trust Preferred Securities Guarantee Trustee.

         (b) If a Guarantee Event of Default actually known to a Responsible
Officer has occurred and is continuing, the Trust Preferred Securities Guarantee
Trustee shall enforce this Trust Preferred Securities Guarantee for the benefit
of the Holders.

         (c) The Trust Preferred Securities Guarantee Trustee, before the
occurrence of any Guarantee Event of Default and after the curing of all
Guarantee Events of Default that may have occurred, shall undertake to perform
only such duties as are specifically set forth in this Trust Preferred
Securities Guarantee, and no implied covenants shall be read into this Trust
Preferred Securities Guarantee against the Trust Preferred Securities Guarantee
Trustee. In case a Guarantee Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer, the Trust Preferred Securities Guarantee Trustee shall exercise such of
the rights and powers vested in it by this Trust Preferred Securities Guarantee,
and use the same degree of care and skill in its exercise thereof, as a prudent
person would exercise or use under the circumstances in the conduct of his or
her own affairs.

         (d) No provision of this Trust Preferred Securities Guarantee shall be
construed to relieve the Trust Preferred Securities Guarantee Trustee from
liability for its own negligent action, its own negligent failure to act, or its
own willful misconduct, except that:

                  (i) prior to the occurrence of any Guarantee Event of Default
                  and after the curing or waiving of all such Guarantee Events
                  of Default that may have occurred:

                           (A) the duties and obligations of the Trust Preferred
                  Securities Guarantee Trustee shall be determined solely by the
                  express provisions of this Trust Preferred Securities
                  Guarantee, and the Trust Preferred Securities Guarantee
                  Trustee shall not be liable except for the performance of such
                  duties and obligations as are specifically set forth in this
                  Trust Preferred Securities Guarantee, and no implied covenants
                  or obligations shall be read into this Trust Preferred
                  Securities Guarantee against the Trust Preferred Securities
                  Guarantee Trustee; and

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                           (B) in the absence of bad faith on the part of the
                  Trust Preferred Securities Guarantee Trustee, the Trust
                  Preferred Securities Guarantee 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 Trust Preferred Securities Guarantee Trustee
                  and conforming to the requirements of this Trust Preferred
                  Securities Guarantee; but in the case of any such certificates
                  or opinions that by any provision hereof are specifically
                  required to be furnished to the Trust Preferred Securities
                  Guarantee Trustee, the Trust Preferred Securities Guarantee
                  Trustee shall be under a duty to examine the same to determine
                  whether or not they conform to the requirements of this Trust
                  Preferred Securities Guarantee (but need not confirm or
                  investigate the accuracy of mathematical calculations or other
                  facts stated therein);

                  (ii) the Trust Preferred Securities Guarantee Trustee shall
                  not be liable for any error of judgment made in good faith by
                  a Responsible Officer, unless it shall be proved that the
                  Trust Preferred Securities Guarantee Trustee was negligent in
                  ascertaining the pertinent facts upon which such judgment was
                  made;

                  (iii) the Trust Preferred Securities Guarantee Trustee shall
                  not be liable with respect to any action taken or omitted to
                  be taken by it in good faith in accordance with the direction
                  of the Holders of a Majority in liquidation amount of the
                  Trust Preferred Securities relating to the time, method and
                  place of conducting any proceeding for any remedy available to
                  the Trust Preferred Securities Guarantee Trustee, or
                  exercising any trust or power conferred upon the Trust
                  Preferred Securities Guarantee Trustee under this Trust
                  Preferred Securities Guarantee; and

                  (iv) no provision of this Trust Preferred Securities Guarantee
                  shall require the Trust Preferred Securities Guarantee Trustee
                  to expend or risk its own funds or otherwise incur personal
                  financial liability in the performance of any of its duties or
                  in the exercise of any of its rights or powers, if the Trust
                  Preferred Securities Guarantee Trustee shall have reasonable
                  grounds for believing that the repayment of such funds or
                  liability is not reasonably assured to it under the terms of
                  this Trust Preferred Securities Guarantee or indemnity,
                  reasonably satisfactory to the Trust Preferred Securities
                  Guarantee Trustee, against such risk or liability is not
                  reasonably assured to it.

SECTION 3.2 CERTAIN RIGHTS OF TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

         (a) Subject to the provisions of Section 3.1:

                  (i) The Trust Preferred Securities Guarantee Trustee may
                  conclusively rely, and shall be fully protected in acting or
                  refraining from acting, upon any resolution, certificate,
                  statement, instrument, opinion, report, notice, request,
                  direction, consent, order, bond, debenture, note, other
                  evidence of indebtedness or other paper or document believed
                  by it to be genuine and to have been signed, sent or presented
                  by the proper party or parties.

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                  (ii) Any direction or act of the Guarantor contemplated by
                  this Trust Preferred Securities Guarantee may be sufficiently
                  evidenced by an Officers' Certificate.

                  (iii) Whenever, in the administration of this Trust Preferred
                  Securities Guarantee, the Trust Preferred Securities Guarantee
                  Trustee shall deem it desirable that a matter be proved or
                  established before taking, suffering or omitting any action
                  hereunder, the Trust Preferred Securities Guarantee Trustee
                  (unless other evidence is herein specifically prescribed) may,
                  in the absence of bad faith on its part, request and
                  conclusively rely upon an Officers' Certificate which, upon
                  receipt of such request, shall be promptly delivered by the
                  Guarantor.

                  (iv) The Trust Preferred Securities Guarantee Trustee shall
                  have no duty to see to any recording, filing or registration
                  of any instrument (or any rerecording, refiling or
                  registration thereof).

                  (v) The Trust Preferred Securities Guarantee Trustee may
                  consult with counsel of its selection, and the advice or
                  opinion of such counsel with respect to legal matters shall be
                  full and complete authorization and protection in respect of
                  any action taken, suffered or omitted by it hereunder in good
                  faith and in accordance with such advice or opinion. Such
                  counsel may be counsel to the Guarantor or any of its
                  Affiliates and may include any of its employees. The Trust
                  Preferred Securities Guarantee Trustee shall have the right at
                  any time to seek instructions concerning the administration of
                  this Trust Preferred Securities Guarantee from any court of
                  competent jurisdiction.

                  (vi) The Trust Preferred Securities Guarantee Trustee shall be
                  under no obligation to exercise any of the rights or powers
                  vested in it by this Trust Preferred Securities Guarantee at
                  the request or direction of any Holder, unless such Holder
                  shall have provided to the Trust Preferred Securities
                  Guarantee Trustee such security and indemnity, reasonably
                  satisfactory to the Trust Preferred Securities Guarantee
                  Trustee, against the costs, expenses (including attorneys'
                  fees and expenses and the expenses of the Trust Preferred
                  Securities Guarantee Trustee's agents, nominees or custodians)
                  and liabilities that might be incurred by it in complying with
                  such request or direction, including such reasonable advances
                  as may be requested by the Trust Preferred Securities
                  Guarantee Trustee; provided that, nothing contained in this
                  Section 3.2(a)(vi) shall be taken to relieve the Trust
                  Preferred Securities Guarantee Trustee, upon the occurrence of
                  a Guarantee Event of Default, of its obligation to exercise
                  the rights and powers vested in it by this Trust Preferred
                  Securities Guarantee.

                  (vii) The Trust Preferred Securities Guarantee 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, direction,
                  consent, order, bond, debenture, note, other evidence of
                  indebtedness or other paper or document, but the Trust
                  Preferred Securities Guarantee Trustee, in its discretion, may
                  make such further inquiry or investigation into such facts or
                  matters as it may see fit.

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                  (viii) The Trust Preferred Securities Guarantee Trustee may
                  execute any of the trusts or powers hereunder or perform any
                  duties hereunder either directly or by or through agents,
                  nominees, custodians or attorneys, and the Trust Preferred
                  Securities Guarantee Trustee shall not be responsible for any
                  misconduct or negligence on the part of any agent, custodian,
                  nominee or attorney appointed with due care by it hereunder.

                  (ix) Any action taken by the Trust Preferred Securities
                  Guarantee Trustee or its agents hereunder shall bind the
                  Holders, and the signature of the Trust Preferred Securities
                  Guarantee Trustee or its agents alone shall be sufficient and
                  effective to perform any such action. No third party shall be
                  required to inquire as to the authority of the Trust Preferred
                  Securities Guarantee Trustee to so act or as to its compliance
                  with any of the terms and provisions of this Trust Preferred
                  Securities Guarantee, both of which shall be conclusively
                  evidenced by the Trust Preferred Securities Guarantee
                  Trustee's or its agent's taking such action.

                  (x) Whenever in the administration of this Trust Preferred
                  Securities Guarantee the Trust Preferred Securities Guarantee
                  Trustee shall deem it desirable to receive instructions with
                  respect to enforcing any remedy or right or taking any other
                  action hereunder, the Trust Preferred Securities Guarantee
                  Trustee (i) may request instructions from the Holders of a
                  Majority in liquidation amount of the Trust Preferred
                  Securities, (ii) may refrain from enforcing such remedy or
                  right or taking such other action until such instructions are
                  received and (iii) shall be protected in conclusively relying
                  on or acting in accordance with such instructions.

                  (xi) The Trust Preferred Securities Guarantee Trustee shall
                  not be liable for any action taken, suffered, or omitted to be
                  taken by it in good faith, without negligence, and reasonably
                  believed by it to be authorized or within the discretion or
                  rights or powers conferred upon it by this Trust Preferred
                  Securities Guarantee.

         (b) No provision of this Trust Preferred Securities Guarantee shall be
deemed to impose any duty or obligation on the Trust Preferred Securities
Guarantee Trustee to perform any act or acts or exercise any right, power, duty
or obligation conferred or imposed on it in any jurisdiction in which it shall
be illegal, or in which the Trust Preferred Securities Guarantee Trustee shall
be unqualified or incompetent in accordance with applicable law, to perform any
such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Trust Preferred Securities
Guarantee Trustee shall be construed to be a duty.

SECTION  3.3. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF TRUST PREFERRED
              SECURITIES GUARANTEE

         The recitals contained in this Trust Preferred Securities Guarantee
shall be taken as the statements of the Guarantor, and the Trust Preferred
Securities Guarantee Trustee does not assume any responsibility for their
correctness. The Trust Preferred Securities Guarantee Trustee makes no
representation as to the validity or sufficiency of this Trust Preferred
Securities Guarantee.

                                       10
<PAGE>

                                   ARTICLE IV

                  TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 4.1 TRUST PREFERRED SECURITIES GUARANTEE TRUSTEE; ELIGIBILITY

         (a) There shall at all times be a Trust Preferred Securities Guarantee
Trustee which shall:

                  (i) not be an Affiliate of the Guarantor; and

                  (ii) be a corporation organized and doing business under the
                  laws of the United States of America or any State or Territory
                  thereof or of the District of Columbia, or a corporation or
                  Person permitted by the Securities and Exchange Commission to
                  act as an institutional trustee under the Trust Indenture Act,
                  authorized under such laws to exercise corporate trust powers,
                  having a combined capital and surplus of at least 50 million
                  U.S. dollars ($50,000,000), and subject to supervision or
                  examination by Federal, State, Territorial or District of
                  Columbia authority. If such corporation publishes reports of
                  condition at least annually, pursuant to law or to the
                  requirements of the supervising or examining authority
                  referred to above, then, for the purposes of this Section
                  4.1(a)(ii), the combined capital and surplus of such
                  corporation shall be deemed to be its combined capital and
                  surplus as set forth in its most recent report of condition so
                  published.

         (b) If at any time the Trust Preferred Securities Guarantee Trustee
shall cease to be eligible to so act under Section 4.1(a), the Trust Preferred
Securities Guarantee Trustee shall immediately resign in the manner and with the
effect set out in Section 4.2(c).

         (c) If the Trust Preferred Securities Guarantee Trustee has or shall
acquire any "conflicting interest" within the meaning of Section 310(b) of the
Trust Indenture Act, the Trust Preferred Securities Guarantee Trustee and
Guarantor shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

SECTION 4.2 APPOINTMENT, REMOVAL AND RESIGNATION OF TRUST PREFERRED SECURITIES
            GUARANTEE TRUSTEE

         (a) Subject to Section 4.2(b), the Trust Preferred Securities Guarantee
Trustee may be appointed or removed without cause at any time by the Guarantor
except during a Guarantee Event of Default.

         (b) The Trust Preferred Securities Guarantee Trustee shall not be
removed in accordance with Section 4.2(a) until a Successor Trust Preferred
Securities Guarantee Trustee has been appointed and has accepted such
appointment by written instrument executed by such Successor Trust Preferred
Securities Guarantee Trustee and delivered to the Guarantor.

         (c) The Trust Preferred Securities Guarantee Trustee shall hold office
until a Successor Trust Preferred Securities Guarantee Trustee shall have been
appointed or until its removal or resignation. The Trust Preferred Securities
Guarantee Trustee may resign from office (without need for prior or subsequent
accounting) by an instrument in writing executed by the Trust Preferred
Securities Guarantee Trustee and delivered to the Guarantor, which resignation
shall not take effect

                                       11
<PAGE>

until a Successor Trust Preferred Securities Guarantee Trustee has been
appointed and has accepted such appointment by instrument in writing executed by
such Successor Trust Preferred Securities Guarantee Trustee and delivered to the
Guarantor and the resigning Trust Preferred Securities Guarantee Trustee.

         (d) If no Successor Trust Preferred Securities Guarantee Trustee shall
have been appointed and accepted appointment as provided in this Section 4.2
within 60 days after delivery of an instrument of removal or resignation, the
Trust Preferred Securities Guarantee Trustee resigning or being removed may
petition any court of competent jurisdiction for appointment of a Successor
Trust Preferred Securities Guarantee Trustee. Such court may thereupon, after
prescribing such notice, if any, as it may deem proper, appoint a Successor
Trust Preferred Securities Guarantee Trustee.

         (e) No Trust Preferred Securities Guarantee Trustee shall be liable for
the acts or omissions to act of any Successor Trust Preferred Securities
Guarantee Trustee.

         (f) Upon termination of this Trust Preferred Securities Guarantee or
removal or resignation of the Trust Preferred Securities Guarantee Trustee
pursuant to this Section 4.2, the Guarantor shall pay to the Trust Preferred
Securities Guarantee Trustee all amounts due to the Trust Preferred Securities
Guarantee Trustee for fees and reimbursement of expenses which have accrued to
the date of such termination, removal or resignation.

                                    ARTICLE V

                                    GUARANTEE

SECTION 5.1 GUARANTEE

         The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts theretofore
paid by the Issuer), as and when due, regardless of any defense, right of set-
off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the
required amounts by the Guarantor to the Holders or by causing the Issuer to pay
such amounts to the Holders.

SECTION 5.2 WAIVER OF NOTICE AND DEMAND

         The Guarantor hereby waives notice of acceptance of this Trust
Preferred Securities Guarantee and of any liability to which it applies or may
apply, presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

SECTION 5.3 OBLIGATIONS NOT AFFECTED

         The obligations, covenants, agreements and duties of the Guarantor
under this Trust Preferred Securities Guarantee shall be absolute and
unconditional and shall remain in full force and effect until the entire
liquidation amount of all Trust Preferred Securities shall have been paid and
such obligations, covenants, agreements and duties shall in no way be affected
or impaired by reason

                                       12
<PAGE>

of the happening from time to time of any event, including without limitation
the following, whether or not with notice to, or the consent of, the Guarantor:

         (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Trust Preferred Securities to be
performed or observed by the Issuer;

         (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution (as
defined in the Declaration) or any other sums payable under the terms of the
Trust Preferred Securities or the extension of time for the performance of any
other obligation under, arising out of, or in connection with, the Trust
Preferred Securities (other than an extension of time for payment of
Distributions, Redemption Price, Liquidation Distribution or other sum payable
that results from the extension of any interest payment period on the Debentures
permitted by the Indenture);

         (c) any failure, omission, delay or lack of diligence on the part of
the Property Trustee or the Holders to enforce, assert or exercise any right,
privilege, power or remedy conferred on the Property Trustee or the Holders
pursuant to the terms of the Trust Preferred Securities, or any action on the
part of the Issuer granting indulgence or extension of any kind;

         (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

         (e) any invalidity of, or defect or deficiency in, the Trust Preferred
Securities;

         (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred;

         (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor with respect to the
Guarantee Payments shall be absolute and unconditional under any and all
circumstances.

         There shall be no obligation of the Holders to give notice to, or
obtain consent of, the Guarantor with respect to the happening of any of the
foregoing. No set-off, counterclaim, reduction or diminution of any obligation,
or any defense of any kind or nature that the Guarantor has or may have against
any Holder shall be available hereunder to the Guarantor against such Holder to
reduce the payments to it under this Trust Preferred Securities Guarantee.

SECTION 5.4 RIGHTS OF HOLDERS

         (a) The Holders of a Majority in liquidation amount of the Trust
Preferred Securities have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trust Preferred
Securities Guarantee Trustee in respect of this Trust Preferred Securities
Guarantee or exercising any trust or power conferred upon the Trust Preferred
Securities Guarantee Trustee under this Trust Preferred Securities Guarantee.

                                       13
<PAGE>

         (b) If the Trust Preferred Securities Guarantee Trustee fails to
enforce such Trust Preferred Securities Guarantee, any Holder may institute a
legal proceeding directly against the Guarantor to enforce the Trust Preferred
Securities Guarantee Trustee's rights under this Trust Preferred Securities
Guarantee, without first instituting a legal proceeding against the Issuer, the
Trust Preferred Securities Guarantee Trustee or any other Person or entity.
Notwithstanding the foregoing, if the Guarantor has failed to make a Guarantee
Payment, a Holder may directly institute a proceeding against the Guarantor for
enforcement of the Trust Preferred Securities Guarantee for such payment to the
Holder of the principal of or interest on the Debentures on or after the
respective due dates specified in the Debentures, and the amount of the payment
will be based on the Holder's pro rata share of the amount due and owing on all
of the Trust Preferred Securities. The Guarantor waives any right or remedy to
require that any action be brought first against the Issuer or any other Person
or entity before proceeding directly against the Guarantor.

SECTION 5.5 GUARANTEE OF PAYMENT

         This Trust Preferred Securities Guarantee creates a guarantee of
payment and not of collection.

SECTION 5.6 SUBROGATION

         The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer in respect of any amounts paid to such Holders by the
Guarantor under this Trust Preferred Securities Guarantee; provided, however,
that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any right that it may
acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Trust Preferred
Securities Guarantee, if, at the time of any such payment, any amounts are due
and unpaid under this Trust Preferred Securities Guarantee. If any amount shall
be paid to the Guarantor in violation of the preceding sentence, the Guarantor
agrees to hold such amount in trust for the Holders and to pay over such amount
to the Holders.

SECTION 5.7 INDEPENDENT OBLIGATIONS

         The Guarantor acknowledges that its obligations hereunder are
independent of the obligations of the Issuer with respect to the Trust Preferred
Securities, and that the Guarantor shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Trust
Preferred Securities Guarantee notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 LIMITATION OF TRANSACTIONS

         So long as any Trust Preferred Securities remain outstanding, if there
shall have occurred a Guarantee Event of Default or an Event of Default, or an
event that, with the giving of notice or the lapse of time, or both, would be a
Guarantee Event of Default or an Event of Default then, prior to the payment of
all accrued interest on outstanding Debentures , the Guarantor shall not (i)
declare or pay any dividends or distributions on, or redeem, purchase, acquire,
or make a liquidation

                                       14
<PAGE>

payment with respect to, any of the Guarantor's capital stock (which includes
common and preferred stock), (ii) make any payment of principal, interest or
premium, if any, on or repay or repurchase or redeem any debt securities of the
Guarantor (including any Other Debentures) that rank pari passu with or junior
in right of payment to the Debentures or (iii) make any guarantee payments with
respect to any guarantee by the Guarantor of the debt securities of any
Subsidiary (including under Other Guarantees) if such guarantee ranks equal or
junior in right of payment to the Debentures (other than (a) dividends or
distributions in shares of, or options, warrants, rights to subscribe for or
purchase shares of, common stock of the Guarantor, (b) any declaration of a
dividend in connection with the implementation of a stockholders' rights plan,
or the issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (c) payments under the Trust
Preferred Securities Guarantee, (d) the purchase of fractional shares resulting
from a reclassification of the Guarantor's capital stock, (e) the purchase of
fractional interests in shares of the Guarantor's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged and (f) purchases of common stock related to the issuance
of common stock or rights under any of the Guarantor's benefit plans for its
directors, officers or employees or any of the Guarantor's dividend reinvestment
plans).

SECTION 6.2 RANKING

         This Trust Preferred Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to Senior and Subordinated Indebtedness (as defined in the Indenture),
to the same extent and in the same manner that the Debentures are subordinated
to Senior and Subordinated Indebtedness pursuant to the Indenture, (ii) pari
passu with the Debentures, the Other Debentures, the Common Securities
Guarantee, any Other Guarantee and any Other Common Securities Guarantee, (iii)
senior to the Guarantor's capital stock and (iv) effectively subordinated to the
liabilities and obligations of the Guarantor's subsidiaries. If an Event of
Default has occurred and is continuing, the rights of the holders of the Common
Securities to receive any payments shall be subordinated to the rights of the
Holders to receive Guarantee Payments hereunder.

                                   ARTICLE VII

                                   TERMINATION

SECTION 7.1 TERMINATION

         This Trust Preferred Securities Guarantee shall terminate (i) upon full
payment of the Redemption Price (as defined in the Declaration) of all Trust
Preferred Securities or (ii) upon liquidation of the Issuer and the full payment
of the amounts payable in accordance with the Declaration or the distribution of
the Debentures to the Holders and the holders of Common Securities.
Notwithstanding the foregoing, this Trust Preferred Securities Guarantee will
continue to be effective or will be reinstated, as the case may be, if at any
time any Holder must restore payment of any sums paid under the Trust Preferred
Securities or under this Trust Preferred Securities Guarantee.

                                       15
<PAGE>

                                   ARTICLE VII

                                 INDEMNIFICATION

SECTION 8.1 EXCULPATION

         (a) No Indemnified Person shall be liable, responsible or accountable
in damages or otherwise to the Guarantor or any Covered Person for any loss,
damage or claim incurred by reason of any act or omission performed or omitted
by such Indemnified Person in good faith in accordance with this Trust Preferred
Securities Guarantee and in a manner that such Indemnified Person reasonably
believed to be within the scope of the authority conferred on such Indemnified
Person by this Trust Preferred Securities Guarantee or by law, except that an
Indemnified Person shall be liable for any such loss, damage or claim incurred
by reason of such Indemnified Person's negligence or willful misconduct with
respect to such acts or omissions.

         (b) An Indemnified Person shall be fully protected in relying in good
faith upon the records of the Guarantor and upon such information, opinions,
reports or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders might properly be paid.

SECTION 8.2 INDEMNIFICATION

         The Guarantor agrees to indemnify each Indemnified Person for, and to
hold each Indemnified Person harmless against, any and all loss, liability,
damage, claim or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses (including
reasonable legal fees and expenses) of defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The obligation to
indemnify as set forth in this Section 8.2 shall survive the termination of this
Trust Preferred Securities Guarantee.

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.1 SUCCESSORS AND ASSIGNS

         All guarantees and agreements contained in this Trust Preferred
Securities Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
then outstanding.

                                       16
<PAGE>

SECTION 9.2 AMENDMENTS

         Except with respect to any changes that do not adversely affect the
rights of Holders (in which case no consent of Holders will be required), this
Trust Preferred Securities Guarantee may only be amended with the prior approval
of the Holders of a Majority in liquidation amount of the Trust Preferred
Securities (including the stated amount that would be paid on redemption,
liquidation or otherwise, plus accrued and unpaid Distributions to the date upon
which the voting percentages are determined). The provisions of the Declaration
with respect to consents to amendments thereof (whether at a meeting or
otherwise) shall apply to the giving of such approval.

         Prior to executing any amendment hereto, the Trust Preferred Securities
Guarantee Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Trust Preferred Securities Guarantee Agreement.

SECTION 9.3 NOTICES

         All notices provided for in this Trust Preferred Securities Guarantee
shall be in writing, duly signed by the party giving such notice, and shall be
delivered, telecopied or mailed by first class mail, as follows:

         (a) If given to the Issuer, in care of the Trustee at the Issuer's
mailing address set forth below (or such other address as the Issuer may give
notice of to the Holders and the Trust Preferred Securities Guarantee Trustee):

              R&G Capital Trust ____
              c/o R&G Financial Corporation
              280 Jesus T. Pinero Avenue
              San Juan, Puerto Rico  00918
              Attention: _________________
                         Administrative Trustee
              Telecopy: (787) 766-7175

         (b) If given to the Trust Preferred Securities Guarantee Trustee, at
the Trust Preferred Securities Guarantee Trustee's mailing address set forth
below (or such other address as the Trust Preferred Securities Guarantee Trustee
may give notice of to the Holders, the Guarantor and the Issuer):

                __________________________
                __________________________
                __________________________
                __________________________
                Attention: Corporate Trust Trustee Administration
                Telecopy: ________________

                                       17
<PAGE>

         (c) If given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders and the Trust Preferred Securities Guarantee Trustee):

               R&G Financial Corporation
               280 Jesus T. Pinero Avenue
               San Juan, Puerto Rico  00918
               Attention: _____________________

                         ______________________
               Telecopy: (787) 766-7175

         (d) If given to any Holder, at the address set forth on the books and
records of the Issuer.

         All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

SECTION 9.4 BENEFIT

         This Trust Preferred Securities Guarantee is solely for the benefit of
the Holders and, subject to Section 3.1(a), is not separately transferable from
the Trust Preferred Securities.

SECTION 9.5 GOVERNING LAW

         THIS TRUST PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

                    Signatures appear on the following page.

                                       18
<PAGE>

         THIS TRUST PREFERRED SECURITIES GUARANTEE is executed as of the day and
year first above written.

                    R&G FINANCIAL CORPORATION,
                             as Guarantor

                    By: ____________________________________
                        ________________________
                        ________________________

                    __________________________, as Trust Preferred
                    Securities Guarantee Trustee

                    By: ____________________________________
                    Name:
                    Title:

                                       19<PAGE>

                                                                    EXHIBIT 10.1

                            SECOND ADDENDUM TO LEASE

         This Second Addendum to Lease ("Addendum") is made effective as of the
1st day of June 2004, by and between ROBERT PATTILLO PROPERTIES, INC., a Georgia
Corporation ("Landlord"), POTTERY BARN, INC., a California Corporation
("Tenant") and WILLIAMS-SONOMA, INC., a California Corporation ("Guarantor").

                                   WITNESSETH:

         WHEREAS, Landlord and Tenant entered into that certain Standard
Industrial Lease Agreement dated December 1, 2003, for lease of property located
at 11624 South Distribution Cove Olive Branch, MS ("Premises") as more
particularly described in the Lease, and that certain First Amendment to Lease
dated as of February 27, 2004, (said lease, as amended, is referred to herein as
the "Lease"); and

         WHEREAS, in conjunction with the execution and as part of the
consideration for Landlord entering into the Lease, Guarantor executed a
Guaranty dated as of December 1, 2003 ("Guaranty"); and

         WHEREAS, the parties desire to modify certain terms of the Lease.

         NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         1.       In accordance with the terms of Paragraph 6 of the Lease,
                  Landlord has caused a registered surveyor to measure the
                  actual square footage of the building on the Premises. The
                  measurement reflects a total square footage in the Cell One
                  Premises and the Cell Two Premises of 780,218 square feet. The
                  parties agree that the portion of the building on the Cell One
                  Premises contains 416,000 square feet and that the portion of
                  the building on the Cell Two Premises contains 364,218 square
                  feet. Accordingly, the Cell Two Rent shall be adjusted to
                  reflect the actual square footage.

         2.       Time is of the essence as to all obligations of Landlord,
                  Tenant and Guarantor hereunder. Landlord, Tenant and Guarantor
                  hereby ratify and confirm the Lease, as amended hereby. All
                  terms not otherwise defined herein shall have the meanings
                  ascribed thereto in the Lease. This Addendum may be executed
                  in two (2) or more counterparts, each of which shall be one
                  and the same instrument and a duplicate original. Return of an
                  executed copy of this Addendum by facsimile transmission shall
                  bind the party so executing and returning such counterpart.
                  Each party represents to the other that the person executing
                  this Addendum on its behalf is authorized to do so by all
                  required corporate, partnership or limited liability company
                  action, as appropriate.

                     SIGNATURE CONTAINED ON FOLLOWING PAGES

<PAGE>

         IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals, effective the day and year first above written.

                                            ROBERT PATTILLO PROPERTIES, INC.,
                                            a Georgia Corporation

                                                 By:  /s/ Clay W. Reese
-----------------------------------                   --------------------------
Witness                                                  Its:  Vice President

                                                           (CORP. SEAL)

                                            POTTERY BARN, INC.,
                                            a Delaware Corporation

                                                 By:  /s/ Pat Connolly
-----------------------------------                   --------------------------
Witness                                          Its:  Executive Vice President
                                                      --------------------------

                                                            (CORP. SEAL)

The undersigned executes this Second Addendum to Lease for the purpose of
consenting to its terms and agreeing that its obligations under that certain
Guaranty dated December 1, 2003, shall continue to apply to the Lease, as
previously modified and as amended by this Second Addendum.

                                           Guarantor:

                                           WILLIAMS-SONOMA, INC.

                                           By:  /s/ Edward A. Mueller
                                                --------------------------------

                                           Printed Name:  Edward A. Mueller
                                                          ----------------------

                                           Its:   Chief Executive Officer
                                                 -------------------------------

                                       -2-

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