Document:

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                                                                     Exhibit 4.7

                          FIRST SUPPLEMENTAL INDENTURE

                                     between

                                SANTANDER BANCORP

                                       and

                          BANCO POPULAR DE PUERTO RICO

                                   ----------

                          Dated as of February 28, 2006

                                   ----------

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                                TABLE OF CONTENTS

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ARTICLE 1 DEFINITIONS....................................................     2
   SECTION 1.1  Definition of Terms......................................     2

ARTICLE 2 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES.................     3
   SECTION 2.1  Designation and Principal Amount.........................     3
   SECTION 2.2  Maturity.................................................     3
   SECTION 2.3  Form and Payment.........................................     3
   SECTION 2.4  Global Debenture.........................................     4
   SECTION 2.5  Interest.................................................     5
   SECTION 2.6  Denomination.............................................     6
   SECTION 2.7  Restrictions on Transfer.................................     6

ARTICLE 3 REDEMPTION OF THE DEBENTURES...................................     7
   SECTION 3.1  Optional Redemption......................................     7
   SECTION 3.2  Redemption Procedures....................................     7
   SECTION 3.3  No Sinking Fund..........................................     8

ARTICLE 4 EXTENSION OF INTEREST PAYMENT PERIOD...........................     8
   SECTION 4.1  Extension of Interest Payment Period.....................     8
   SECTION 4.2  Notice of Extension......................................     8
   SECTION 4.3  Limitation of Transactions...............................     9

ARTICLE 5 EXPENSES.......................................................     9
   SECTION 5.1  Payment of Expenses......................................     9
   SECTION 5.2  Payment Upon Resignation or Removal......................    10

ARTICLE 6 COVENANT TO LIST ON EXCHANGE...................................    10
   SECTION 6.1  Listing on an Exchange...................................    10

ARTICLE 7 FORM OF DEBENTURE..............................................    11
   SECTION 7.1  Form of Debenture........................................    11

ARTICLE 8 ORIGINAL ISSUE OF DEBENTURES...................................    11
   SECTION 8.1  Original Issue of Debentures.............................    11

ARTICLE 9 REPORTS BY TRUSTEE AND COMPANY.................................    11
   SECTION 9.1  Reports by Trustee.......................................    11
   SECTION 9.2  Reports by the Company...................................    12

ARTICLE 10 MISCELLANEOUS.................................................    12
   SECTION 10.1 Ratification of Indenture................................    12
   SECTION 10.2 Trustee Not Responsible for Recitals.....................    12
   SECTION 10.3 Governing Law............................................    12
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   SECTION 10.4 Separability.............................................    12
   SECTION 10.5 Counterparts.............................................    13
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     FIRST SUPPLEMENTAL INDENTURE, dated as of February 28, 2006 (the "First
Supplemental Indenture"), between Santander BanCorp, a Puerto Rico corporation
(hereinafter sometimes called the "Company"), and Banco Popular de Puerto Rico,
a Commonwealth of Puerto Rico banking corporation, as trustee (hereinafter
sometimes called the "Trustee") under the Indenture dated as of February 28,
2006, between the Company and the Trustee (the "Indenture").

     WHEREAS, the Company executed and delivered the Indenture to the Trustee to
provide for the future issuance of the Company's unsecured junior subordinated
debt securities to be issued from time to time in one or more series as might be
determined by the Company under the Indenture, in an unlimited aggregate
principal amount which may be authenticated and delivered as provided in the
Indenture;

     WHEREAS, pursuant to the terms of the Indenture, the Company desires to
provide for the establishment of a new series of such securities to be known as
its 7.00% Junior Subordinated Debentures, Series A due July 1, 2036 (the
"Debentures"), the form and substance of such Debentures and the terms,
provisions and conditions thereof to be set forth as provided in the Indenture
and this First Supplemental Indenture;

     WHEREAS, the Company and Santander PR Capital Trust I, a Delaware statutory
trust (the "Trust"), propose to offer to the public $125,000,000 aggregate
liquidation amount of the Trust's 7.00% Trust Preferred Securities (the
"Preferred Securities"), representing preferred undivided beneficial interests
in the assets of the Trust, and the Trust proposes to invest the proceeds from
such offering, together with the proceeds of the issuance and sale by the Trust
to the Company of $4,000,000 aggregate liquidation amount of its 7.00% Common
Securities (the "Common Securities"), in $129,000,000 aggregate principal amount
of the Debentures; and

     WHEREAS, the Company has requested that the Trustee execute and deliver
this First Supplemental Indenture and all requirements necessary to make this
First Supplemental Indenture a valid instrument in accordance with its terms,
and to make the Debentures, when executed by the Company, and authenticated and
delivered by the Trustee, the valid obligations of the Company, have been
performed, and the execution and delivery of this First Supplemental Indenture
has been duly authorized in all respects.

     NOW THEREFORE, in consideration of the purchase and acceptance of the
Debentures by the Holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Debentures and the
terms, provisions and conditions thereof, the Company covenants and agrees with
the Trustee as follows:

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                                   ARTICLE 1
                                   DEFINITIONS

               SECTION 1.1 Definition of Terms.

     Unless the context otherwise requires:

     (a) a term defined in the Indenture has the same meaning when used in this
First Supplemental Indenture;

     (b) a term defined anywhere in this First Supplemental Indenture has the
same meaning throughout;

     (c) the singular includes the plural and vice versa;

     (d) a reference to a Section or Article is to a Section or Article of this
First Supplemental Indenture;

     (e) headings are for convenience of reference only and do not affect
interpretation;

     (f) the following terms have the meanings given to them in the Declaration:
(i) Capital Securities Certificate; (ii) Capital Security; (iii) Delaware
Trustee; (iv) Distributions; (v) Property Trustee; and (vi) Purchase Agreement;

     (g) the following terms have the meanings given to them in this Section
1.1(g):

     "Compound Interest" shall have the meaning set forth in Section 4.1.

     "Coupon Rate" shall have the meaning set forth in Section 2.5(a).

     "Creditor" shall have the meaning set forth in Section 5.1.

     "Declaration" means the Amended and Restated Declaration of Trust and Trust
Agreement of Santander PR Capital Trust I, a Delaware statutory trust, dated as
of February 28, 2006.

     "Deferred Interest" shall have the meaning set forth in Section 4.1.

     "Dissolution Event" means the dissolution of the Trust and distribution of
the Debentures held by the Property Trustee pro rata to the holders of the Trust
Securities in liquidation of such holders' interests in the Trust in accordance
with the Declaration, such event to occur at the option of the Company at any
time upon the terms and conditions set forth in the Declaration.

     "Extended Interest Payment Period" shall have the meaning set forth in
Section 4.1.

     "Global Debenture" shall have the meaning set forth in Section 2.4(a).

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     "Holder" means any person in whose name at the time a Debenture is
registered on the Security Register.

     "Interest Payment Date" shall have the meaning set forth in Section 2.5(a).

     "Interest Period" means the period beginning on (and including) the date of
issue and ending on (but excluding) the first Interest Payment Date and each
successive period beginning on (and including) the Interest Payment Date and
ending on (but excluding) the next succeeding Interest Payment Date.

     "Non Book-Entry Preferred Securities" shall have the meaning set forth in
Section 2.4(a).

     "Prepayment Price" shall have the meaning set forth in Section 3.1.

     "Registration Rights Agreement" means the Registration Rights Agreement
dated as of February 28, 2006, among the Company, the Trust and Santusa Holding,
S.L., relating to the Capital Securities.

     "Special Redemption Event" means a Tax Event, Investment Company Event or a
Capital Treatment Event, as the case may be.

                                    ARTICLE 2
                 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES

               SECTION 2.1 Designation and Principal Amount.

     There is hereby authorized (a) a series of Securities designated as the
"7.00% Junior Subordinated Debentures, Series A due July 1, 2036", in aggregate
principal amount of $129,000,000.

               SECTION 2.2 Maturity.

     The Debentures shall mature on July 1, 2036.

               SECTION 2.3 Form and Payment.

     Except as provided in Section 2.4, the Debentures shall be issued in fully
registered certificated form without interest coupons. Principal and interest on
the Debentures issued in certificated form will be payable, the transfer of such
Debentures will be registrable and such Debentures will be exchangeable for
Debentures bearing identical terms and provisions at the office or agency of the
Trustee in San Juan, Puerto Rico; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the Holder entitled
thereto at such address as shall appear in the Security Register or by wire
transfer to an account appropriately designated by the Holder entitled thereto.
Notwithstanding the foregoing, so long as the Holder of any Debentures is the
Property Trustee, the payment of the principal of and interest (including
Compound Interest and Additional Interest, if any) on such Debentures held by
the Property Trustee will be made at such place and to such account as may be
designated by the Property Trustee.

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               SECTION 2.4 Global Debenture.

     (a) In connection with a Dissolution Event,

          (i) the Debentures in certificated form may be presented to the
     Trustee by the Property Trustee in exchange for a global Debenture in an
     aggregate principal amount equal to the aggregate principal amount of all
     outstanding Debentures (a "Global Debenture"), to be registered in the name
     of the Depositary, or its nominee, and delivered by the Trustee to the
     Depositary for crediting to the accounts of its participants pursuant to
     the instructions of the Administrative Trustees. The Company upon any such
     presentation shall execute a Global Debenture in such aggregate principal
     amount and deliver the same to the Trustee for authentication and delivery
     in accordance with the Indenture and this First Supplemental Indenture.
     Payments on the Debentures issued as a Global Debenture will be made to the
     Depositary; and

          (ii) As long as any Capital Securities are held in non book-entry
     certificated form ("Non Book-Entry Capital Securities"), the Debentures in
     certificated form may be presented to the Trustee by the Property Trustee
     and any Capital Security Certificate which represents Non Book-Entry
     Capital Securities will be deemed to represent beneficial interests in
     Debentures presented to the Trustee by the Property Trustee having an
     aggregate principal amount equal to the aggregate liquidation amount of the
     Non Book-Entry Capital Securities until such Capital Security Certificates
     are presented to the Security registrar for transfer or reissuance, at
     which time such Non Book-Entry Capital Security Certificates will be
     canceled and a Debenture, registered in the name of the holder of the
     Capital Security Certificate or the transferee of the holder of such
     Capital Security Certificate, as the case may be, with an aggregate
     principal amount equal to the aggregate liquidation amount of the Capital
     Security Certificate canceled, will be executed by the Company and
     delivered to the Trustee for authentication and delivery in accordance with
     the Indenture and this First Supplemental Indenture. On issue of such
     Debentures, Debentures with an equivalent aggregate principal amount that
     were presented by the Property Trustee to the Trustee will be deemed to
     have been canceled.

     (b) A Global Debenture may be transferred, in whole but not in part, only
by the Depositary to another nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary, or to a
successor Depositary selected or approved by the Company or to a nominee of such
successor Depositary. The Depositary shall initially be The Depository Trust
Company, New York, New York.

     Except as otherwise provided in or pursuant to this First Supplemental
Indenture, a Global Debenture shall be exchangeable for Debentures in definitive
registered form only if (i) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary and a successor Depositary is not
appointed by the Company within 90 days of the date the Company is so informed
in writing or becomes aware of such condition, (ii) the Depository ceases to be
registered as a "clearing agency" under the Securities Exchange Act of 1934, as
amended, (iii) an Event of Default, as defined in the Indenture, has occurred
and is continuing with respect to the Debentures, or (iv) the Company, in its
sole discretion determines that such Global Debenture shall be exchangeable into
definitive registered form. Upon the occurrence of any of (i) through

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(iv) above, the Company shall execute, and, subject to Article II of the
Indenture, the Trustee, upon written notice from the Company, shall authenticate
and deliver the Debentures in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Debenture in exchange for such Global Debenture.
In the event the Company determines that the Debentures shall no longer be
represented by a Global Debenture pursuant to clause (iv) above, the Company
shall execute, and, subject to Section 305 of the Indenture, the Trustee, upon
receipt of an Officers' Certificate evidencing such determination by the
Company, shall authenticate and deliver the Debentures in definitive registered
form without coupons, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Debenture in exchange for
such Global Debenture. Upon the exchange of the Global Debenture for such
Debentures in definitive registered form without coupons, in authorized
denominations, the Global Debenture shall be canceled by the Trustee. Such
Debentures in definitive registered form issued in exchange for the Global
Debenture shall be registered in such names and in such authorized denominations
as the Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Debt Securities to the Depositary for delivery to the Persons in whose
names such Debt Securities are so registered.

               SECTION 2.5 Interest.

     (a) Each Debenture will bear interest at the rate of 7.00% per annum (the
"Coupon Rate") from February 28, 2006 until the principal thereof becomes due
and payable, and on any overdue principal and, to the extent that payment of
such interest is enforceable under applicable law, on any overdue installment of
interest at the Coupon Rate, payable semiannually in arrears on the first day of
each January and July of each year (each, an "Interest Payment Date"),
commencing on January 1, 2007, to the Person in whose name such Debenture or any
predecessor Debenture is registered at the close of business on the relevant
record date, which will be, as long as the Capital Securities are not in
book-entry form (or if no Capital Securities remain outstanding, in the event
the Debentures are not in book-entry form), the 15th day of the month next
preceding each Interest Payment Date and, the event the Capital Securities are
in book-entry form (or if no Capital Securities remain outstanding, as long in
the event the Debentures are in book-entry form) one Business Day prior to the
relevant Interest Payment Date, except as otherwise provided pursuant to the
provisions of Article IV hereof.

     (b) The amount of interest payable for any Interest Period will be computed
on the basis of a 360-day year of twelve 30-day months. Except as provided in
the following sentence, the amount of interest payable for any Interest Period
shorter than a full semiannual period for which interest is computed, will be
computed on the basis of the actual number of days elapsed. In the event that
any date on which interest is payable on the Debentures is not a Business Day,
then payment of interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on the date that such interest otherwise would have been payable.

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               SECTION 2.6 Denomination.

     The Debentures shall be issued in denominations of $25 and integral
multiples thereof.

               SECTION 2.7 Restrictions on Transfer.

     The Debentures have not been registered under the Securities Act and,
except in connection with a Registration Statement contemplated by and in
accordance with the terms of the Registration Rights Agreement relating to the
Debentures, may not be resold, pledged or otherwise transferred except in
compliance with the restricted securities legend set forth below, unless
otherwise determined by the Company, upon the advise of counsel, in accordance
with applicable law:

          "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
     1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE PUERTO RICO UNIFORM
     SECURITIES ACT OR ANY OTHER STATE OR COMMONWEALTH OF PUERTO RICO SECURITIES
     LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
     REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
     DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
     IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT.

          THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT
     OF SANTANDER BANCORP THAT (a) THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR
     OTHERWISE TRANSFERRED OTHER THAN (1) TO SANTANDER BANCORP OR A SUBSIDIARY
     THEREOF OR TO THE TRUST, (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM
     REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
     (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A
     UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER
     REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
     OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
     QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE,
     PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (4) TO A
     "NON U.S. PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO REGULATION S
     UNDER THE SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM REGISTRATION
     UNDER THE SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF
     SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
     THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF
     SUCH AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
     TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
     OF THE

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     SECURITIES ACT, OR (6) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
     REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (5)
     OR (6), TO THE RECEIPT BY SANTANDER BANCORP OF AN OPINION OF COUNSEL OR
     SUCH OTHER EVIDENCE ACCEPTABLE TO SANTANDER BANCORP THAT SUCH RESALE,
     PLEDGE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT OR (7) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND
     THAT (b) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY
     ANY PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO IN
     THE AMENDED AND RESTATED DECLARATION OF TRUST AND DELIVER TO THE TRANSFEREE
     (OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE A COPY OF
     THE TRANSFER RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE
     OBTAINED FROM SANTANDER BANCORP).

          THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A
     REGISTRATION RIGHTS AGREEMENT DATED AS OF FEBRUARY 28, 2006 AND, BY ITS
     ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS
     OF SUCH REGISTRATION RIGHTS AGREEMENT.

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
     REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY
     BE REQUIRED BY THE DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES WITH
     THE FOREGOING RESTRICTIONS."

                                    ARTICLE 3
                          REDEMPTION OF THE DEBENTURES

               SECTION 3.1 Optional Redemption.

     Subject to any required prior approval of the Primary Federal Regulator,
the Debentures are prepayable prior to the Stated Maturity at the option of the
Company (i) in whole or in part, from time to time, on or after July 1, 2011 or
(ii) at any time prior to July 1, 2011, in whole but not in part, at any time
within 90 days following the occurrence and continuation of a Special Redemption
Event, in either case at a prepayment price (the "Prepayment Price") equal to
100% of the principal amount thereof, plus accrued and unpaid interest thereon
(including Compound Interest, if any) to the date of prepayment.

               SECTION 3.2 Redemption Procedures.

     Notice of any redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder of Debentures to be prepaid at
its registered address. Unless the Company defaults in payment of the prepayment
price, on and after the redemption date interest shall cease to accrue on such
Debentures called for redemption. If the Debentures

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are only partially redeemed pursuant to Section 3.1, the Debentures will be
redeemed pro rata or by lot or by any other method selected by the Trustee;
provided, that if at the time of redemption the Debentures are registered as a
Global Debenture, the Depositary shall determine, in accordance with its
procedures, the principal amount of such Debentures held by each Depositary
participant to be redeemed. The Prepayment Price shall be paid prior to 12:00
noon, New York time, on the date of such prepayment or at such earlier time as
the Company determines; provided that the Company shall deposit with the Trustee
an amount sufficient to pay the Prepayment Price by 10:00 a.m., New York time,
on the date such prepayment price is to be paid.

               SECTION 3.3 No Sinking Fund.

     The Debentures are not entitled to the benefit of any sinking fund.

                                    ARTICLE 4
                      EXTENSION OF INTEREST PAYMENT PERIOD

               SECTION 4.1 Extension of Interest Payment Period.

     Provided that no Event of Default has occurred and is continuing, the
Company shall have the right, at any time and from time to time during the term
of the Debentures, to defer payments of interest by extending the interest
payment period of such Debentures for a period not exceeding 60 consecutive
months (the "Extended Interest Payment Period"), during which Extended Interest
Payment Period no interest shall be due and payable; provided that no Extended
Interest Payment Period may extend beyond the Stated Maturity of the principal
of the Debentures. To the extent permitted by applicable law, interest, the
payment of which has been deferred because of the extension of the interest
payment period pursuant to this Section 4.1, will bear interest thereon at the
Coupon Rate compounded semiannually for each semiannual period of the Extended
Interest Payment Period ("Compound Interest"). At the end of the Extended
Interest Payment Period, the Company shall pay all interest accrued and unpaid
on the Debentures, including any Compound Interest (together, "Deferred
Interest") that shall be payable to the Holders in whose names the Debentures
are registered in the Security Register on the record date for the first
Interest Payment Date after the end of the Extended Interest Payment Period.
Before the termination of any Extended Interest Payment Period, the Company may
further extend such period, provided that such period together with all such
previous or further extensions thereof shall not exceed 60 consecutive months,
or extend beyond the Stated Maturity of the Debentures. Upon the termination of
any Extended Interest Payment Period and upon the payment of all Deferred
Interest then due, the Company may commence a new Extended Interest Payment
Period, subject to the foregoing requirements. No interest shall be due and
payable during an Extended Interest Payment Period, except at the end thereof,
but the Company may prepay at any time all or any portion of the interest
accrued during an Extended Interest Payment Period.

               SECTION 4.2 Notice of Extension.

     (a) If the Property Trustee is the only registered Holder at the time the
Company selects an Extended Interest Payment Period, the Company shall give
written notice to the

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Property Trustee and the Trustee of its selection of such Extended Interest
Payment Period one Business Day before the earlier of (i) the next succeeding
date on which Distributions on the Trust Securities issued by the Trust are
payable, or (ii) if the Debentures are then listed on the New York Stock
Exchange, the Nasdaq National Market or other similar self-regulatory
organization, the date the Company is required to give notice of the record
date, or the date such Distributions are payable to such organization or to
holders of the Capital Securities issued by the Trust.

     (b) If the Property Trustee is not the only Holder at the time the Company
selects an Extended Interest Payment Period, the Company shall give the Holders
of the Debentures notice of its election of such Extended Interest Payment
Period at least ten Business Days before the earlier of (i) the next succeeding
Interest Payment Date, or (ii) if the Debentures are the listed on the New York
Stock Exchange, the Nasdaq National Market or other similar self-regulatory
organization, the date the Company is required to give notice of the record date
or the Interest Payment Date to such organization or to Holders of the
Debentures.

     (c) The month in which any notice is given pursuant to paragraphs (a) or
(b) of this Section 4.2 shall be counted as one of the 60 months permitted in
the maximum Extended Interest Payment Period permitted under Section 4.1.

               SECTION 4.3 Limitation of Transactions.

     If the Company shall exercise its right to defer payment of interest as
provided in Section 4.1 and the Extended Interest Payment Period is continuing,
the Company shall be subject to the limitations set forth in Section 1008 of the
Indenture.

                                    ARTICLE 5
                                    EXPENSES

               SECTION 5.1 Payment of Expenses.

     In connection with the offering, sale and issuance of the Debentures to the
Property Trustee and in connection with the sale of the Trust Securities by the
Trust, the Company, in its capacity as borrower with respect to the Debentures,
shall:

     (a) pay all costs and expenses relating to the offering, sale and issuance
of the Trust Securities and the Debentures, including compensation of the
Trustee under the Indenture in accordance with the provisions of Section 607 of
the Indenture;

     (b) be responsible for and shall pay all debts and obligations (other than
with respect to the Trust Securities) and all costs and expenses of the Trust
(including, but not limited to, costs and expenses relating to the organization,
maintenance and dissolution of the Trust, the fees and expenses (including
reasonable counsel fees and expenses) of the Property Trustee, the Delaware
Trustee and the Administrative Trustees (including any amounts payable under
Article VIII of the Declaration), the costs and expenses relating to the
operation of the Trust, including without limitation, costs and expenses of
accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting

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equipment, paying agent(s), exchange rate agent(s), registrar(s), transfer
agent(s), duplicating, travel and telephone and other telecommunications
expenses and costs and expenses incurred in connection with the acquisition,
financing, and disposition of Trust assets and the enforcement by the Property
Trustee of the rights of the holders of the Capital Securities issued by the
Trust);

     (c) be liable for any indemnification obligations arising with respect to
the Declaration; and

     (d) pay any and all taxes (other than United States and Puerto Rico
withholding taxes attributable to the Trust or its assets) and all liabilities,
costs and expenses with respect to such taxes of the Trust.

     The Company's obligations under this Section 5.1 shall be for the benefit
of, and shall be enforceable by, any Person to whom such debts, obligations,
costs, expenses and taxes are owed (a "Creditor") whether or not such Creditor
has received notice hereof. Any such Creditor may enforce the Company's
obligations under this Section 5.1 directly against the Company and the Company
irrevocably waives any right of remedy to require that any such Creditor take
any action against the Trust or any other Person before proceeding against the
Company. The Company agrees to execute such additional agreements as may be
necessary or desirable in order to give full effect to the provisions of this
Section 5.1.

     The provisions of this Section shall survive the resignation or removal of
the Trustee and the satisfaction and discharge of this First Supplemental
Indenture.

               SECTION 5.2 Payment Upon Resignation or Removal.

     Upon termination of this First Supplemental Indenture or the Indenture or
the removal or resignation of the Trustee, unless otherwise stated, the Company
shall pay to the Trustee all amounts accrued to the date of such termination,
removal or resignation that are payable pursuant to Section 607 of the
Indenture. Upon termination of the Declaration or the removal or resignation of
the Delaware Trustee or the Property Trustee, as the case may be, pursuant to
Section 8.10 of the Declaration, the Company shall pay to the Delaware Trustee
or the Property Trustee, as the case may be, all amounts accrued to the date of
such termination, removal or resignation.

                                    ARTICLE 6
                          COVENANT TO LIST ON EXCHANGE

               SECTION 6.1 Listing on an Exchange.

     If the Debentures are distributed to the holders of the Securities issued
by the Trust, and the Preferred Securities are then so listed, the Company will
use its commercially reasonable efforts to list such Debentures on the New York
Stock Exchange, the Nasdaq National Market or with another organization on which
the Capital Securities of the Trust are then listed.

                                       10

<PAGE>

                                    ARTICLE 7
                                FORM OF DEBENTURE

               SECTION 7.1 Form of Debenture.

     The Debentures, and the Trustee's Certificate of Authentication to be
endorsed thereon, are to be substantially in the forms attached hereto as
Exhibit A.

                                    ARTICLE 8
                          ORIGINAL ISSUE OF DEBENTURES

               SECTION 8.1 Original Issue of Debentures.

     Debentures in the aggregate principal amount of $129,000,000, may, upon
execution of this First Supplemental Indenture or upon any written order of the
Company setting forth the amount therefor, be executed by the Company and
delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Debentures to or upon the written order of the
Company, signed by any two of the Chairman of the Board, the President, any
Senior Executive Vice President, any Executive Vice President, any First Senior
Vice President or any Senior Vice President and its Secretary or any Assistant
Secretary, without any further action by the Company.

                                    ARTICLE 9
                         REPORTS BY TRUSTEE AND COMPANY

               SECTION 9.1 Reports by Trustee.

     (a)  Notwithstanding the provisions of Section 703 of the Indenture, the
          reports required by such Section shall not be required to be filed
          until the registration of the Debentures under the Securities Act
          pursuant to the Registration Rights Agreement and at any other time
          required by the Trust Indenture Act.

     (b)  A copy of each such report shall, at the time of transmission to
          Holders, be filed by the Trustee with each stock exchange upon which
          the Debentures are listed, with the Commission and also with the
          Company. The Company will notify the Trustee if the Debentures are
          listed on any stock exchange.

                                       11

<PAGE>

               SECTION 9.2 Reports by the Company.

     Notwithstanding the provisions of Section 704 of the Indenture, the reports
required by such section shall not be required to be filed until the
registration of the Debentures under the Securities Act pursuant to the
Registration Rights Agreement, or as may be required pursuant to the Trust
Indenture Act at the time and in the manner pursuant to such Act.

                                   ARTICLE 10
                                  MISCELLANEOUS

               SECTION 10.1 Ratification of Indenture.

     The Indenture, as supplemented by this First Supplemental Indenture, is in
all respects ratified and confirmed, and this First Supplemental Indenture shall
be deemed part of the Indenture in the manner and to the extent herein and
therein provided.

               SECTION 10.2 Trustee Not Responsible for Recitals.

     The recitals herein contained are made by the Company and not by the
Trustee, and the Trustee assumes no responsibility for the correctness thereof.
The Trustee makes no representation as to the validity or sufficiency of this
First Supplemental Indenture.

               SECTION 10.3 Governing Law.

     This First Supplemental Indenture and each Debenture shall be deemed to be
a contract made under the internal laws of the Commonwealth of Puerto Rico, and
for all purposes shall be construed in accordance with the laws of such
jurisdiction without regard to conflicts of laws principles.

               SECTION 10.4 Separability.

     In case any one or more of the provisions contained in this First
Supplemental Indenture or in the Debentures shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this First
Supplemental Indenture or of the Debentures, but this First Supplemental
Indenture and the Debentures shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.

                                       12

<PAGE>

               SECTION 10.5 Counterparts.

     This First Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       13

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental
Indenture to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

                                        SANTANDER BANCORP

                                        By:
                                            ------------------------------------
                                        Name: Carlos M. Garcia
                                        Title: Senior Executive Vice President
                                               and Chief Operating Officer

                                        By:
                                            ------------------------------------
                                        Name: Juan P. Perez Hanley
                                        Title: Senior Vice President and
                                               Treasurer

                                        BANCO POPULAR DE PUERTO RICO, as Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       14

<PAGE>

                                                                       EXHIBIT A

                           (FORM OF FACE OF DEBENTURE)

     THIS SECURITY IS NOT A DEPOSIT OR OTHER OBLIGATION OF A DEPOSITORY
INSTITUTION AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
BANK INSURANCE FUND OR ANY OTHER GOVERNMENTAL AGENCY.

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR UNDER THE PUERTO RICO UNIFORM SECURITIES ACT
OR ANY OTHER STATE OR COMMONWEALTH OF PUERTO RICO SECURITIES LAWS. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

     THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF
SANTANDER BANCORP THAT (a) THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED OTHER THAN (1) TO SANTANDER BANCORP OR A SUBSIDIARY THEREOF OR TO
THE TRUST, (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (3) SO LONG AS
THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (4) TO A "NON U.S. PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (6) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (5) OR
(6), TO THE RECEIPT BY SANTANDER BANCORP OF AN OPINION OF COUNSEL OR SUCH OTHER
EVIDENCE ACCEPTABLE TO SANTANDER BANCORP THAT SUCH RESALE, PLEDGE OR TRANSFER IS
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (7) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT AND THAT (b) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY OF THE
RESALE RESTRICTIONS REFERRED TO IN THE AMENDED AND RESTATED DECLARATION OF TRUST
AND DELIVER TO THE TRANSFEREE (OTHER THAN A QUALIFIED INSTITUTIONAL BUYER) PRIOR
TO THE SALE A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE HERETO (COPIES OF
WHICH MAY BE OBTAINED FROM SANTANDER BANCORP).

     THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION
RIGHTS AGREEMENT DATED AS OF FEBRUARY 28, 2006 AND, BY ITS ACCEPTANCE HEREOF,
AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION
RIGHTS AGREEMENT.

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY
THE DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

                                       15

<PAGE>

     The following legend applies if this Security is a Global Security: Unless
this certificate is presented by an authorized representative of The Depository
Trust Company, New York, New York ("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 requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or 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.

REGISTERED NO. 1                                  PRINCIPAL AMOUNT: $129,000,000

                                SANTANDER BANCORP

                 7.00% JUNIOR SUBORDINATED DEBENTURES, SERIES A
                                DUE JULY 1, 2036

     SANTANDER BANCORP, a corporation duly organized and existing under the laws
of the Commonwealth of Puerto Rico (hereinafter called the "Company," which term
includes any successor corporation under the Indenture hereinafter referred to),
for value received, hereby promises to pay to Banco Popular de Puerto Rico, as
Property Trustee of Santander PR Capital Trust I, or registered assigns, the
principal sum of One Hundred Twenty-Nine Million Dollars ($129,000,000) on July
1, 2036. The Company further promises to pay interest on the principal sum from
February 28, 2006 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for semiannually (subject to deferral as
set forth herein) on the first day of each January and July of each year
commencing January 1, 2007 at the rate of 7.00% per annum, together with
Additional Sums, if any, as provided in Section 1007 of the Indenture, until the
principal hereof is paid or made available for payment; provided, however, that
any overdue installment of interest (after giving effect to any Extension Period
permitted by this Security) shall bear Additional Interest at the rate of 7.00%
per annum (to the extent that the payment of such interest shall be legally
enforceable), from the date such installment was due until it is paid or made
available for payment. The amount of interest payable for any period less than a
full semiannual interest period shall be computed on the basis of a 360-day year
of twelve 30-day months and the actual days elapsed in such partial period. The
amount of interest payable for any full semiannual interest period shall be
computed by dividing the applicable rate per annum by two. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the 15th
calendar day (whether or not a Business Day, as defined below) of the month next
preceding such Interest Payment Date. If an Interest Payment Date is not a
Business Day, interest on this Security shall be payable on the next day that is
a Business Day, with the same force and effect as if made on such Interest
Payment Date, and without any interest or other payment with respect to the
delay. "Business Day" as used hereinabove is a day other than a Saturday, a
Sunday or any other day on which banking institutions in San Juan, Puerto Rico,
Wilmington, Delaware or New York, New York are authorized or required by law,
regulation or executive order to remain closed or are customarily closed.

     Any interest not punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and may either be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

     So long as no Event of Default has occurred and is continuing, the Company
shall have the right, at any time during the term of this Security, from time to
time to defer the payment of interest on this Security for up to 60 consecutive
monthly interest payment periods with respect to each deferral period (each an
"Extension Period"), during which Extension Period the Company shall have the
right to make a partial payment of interest on any Interest Payment Date, at the
end of which the Company shall pay all interest then accrued and unpaid
including any Additional Interest, as provided below; provided, however, that no
Extension Period shall extend beyond the

                                       16

<PAGE>

Maturity of the principal of this Security and no such Extension Period may end
other than at the end of a full monthly interest period; and provided, further,
however, that during any such Extension Period, the Company shall not (i) make
any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company that rank pari passu in
all respects with or junior in interest to this Security (except for any partial
payments of interest with respect to and permitted under the Securities of this
series), or (ii) declare or pay any dividends or distributions on, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of the
Company's capital stock (other than (a) repurchases, redemptions or other
acquisitions of shares of capital stock of the Company in connection with any
employment contract, benefit plan or other similar arrangement with or for the
benefit of any one or more employees, officers, directors, consultants or
independent contractors, in connection with a dividend reinvestment or
stockholder stock purchase plan or in connection with the issuance of capital
stock of the Company (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior
to the applicable Extension Period, (b) as a result of an exchange, redemption
or conversion of any class or series of the Company's capital stock (or any
capital stock of a subsidiary of the Company) for any other class or series of
the Company's capital stock or of any class or series of the Company's
indebtedness for any class or series of the Company's capital stock, (c) the
purchase of fractional interests in shares of the Company's capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, (d) any declaration of a dividend in
connection with any Rights Plan, or the issuance of rights, stock or other
property under any Rights Plan, or the redemption or repurchase of rights
pursuant thereto, (e) payments by the Company under the Guarantee Agreement, or
(f) any dividend in the form of stock, warrants, options or other rights where
the dividend stock or the stock issuable upon exercise of such warrants, options
or other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior to such stock). Prior to the termination of any
such Extension Period, the Company may extend such Extension Period and further
defer the payment of interest, provided that no Extension Period shall exceed 60
consecutive monthly interest payment periods, extend beyond the Maturity of the
principal of this Security or end other than at the end of a full monthly
interest period. Upon the termination of any such Extension Period and upon the
payment of all accrued and unpaid interest and any Additional Interest then due
on any Interest Payment Date, the Company may elect to begin a new Extension
Period, subject to the above conditions. No interest or Additional Interest
shall be due and payable during an Extension Period, except at the end thereof,
but each installment of interest that would otherwise have been due and payable
during such Extension Period shall bear Additional Interest (to the extent that
the payment of such interest shall be legally enforceable) at the rate of 7.00%
per annum, compounded monthly and calculated as set forth in the first paragraph
of this Security, from the dates on which amounts would otherwise have been due
and payable until paid or made available for payment. The Company shall give the
Holder of this Security and the Trustee notice of its election to begin any
Extension Period at least one Business Day prior to the next succeeding Interest
Payment Date on which interest on this Security would be payable but for such
deferral or, so long as such Securities are held by or on behalf of Santander PR
Capital Trust I, at least one Business Day prior to the earlier of (i) the next
succeeding date on which Distributions on the Capital Trust Securities of such
Issuer Trust would be payable but for such deferral, and (ii) the date on which
the Property Trustee of such Issuer Trust is required to give notice to holders
of such Capital Trust Securities of the record date or the date such
Distributions are payable.

     Payment of interest, including Additional Interest, on this Security will
be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of San Juan, Puerto Rico, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that, at the
option of the Company, payment of interest may be paid by check mailed to the
Person entitled thereto at such Person's last address as it appears in the
Security Register or, upon written request of a Holder of $1,000,000 or more in
aggregate principal amount of Securities of this series not less than 15
calendar days prior to the applicable Interest Payment Date, by wire transfer to
such account as may have been designated by such Person. Payment of principal of
and interest, including Additional Interest, on this Security at Maturity will
be made against presentation of this Security at the office or agency of the
Company maintained for that purpose in the City of San Juan, Puerto Rico.

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

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature or its duly
authorized agent under the Indenture referred to on the reverse hereof by

                                       17

<PAGE>

manual signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

                            [SIGNATURE PAGE FOLLOWS]

                                       18

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

DATED: February 28, 2006                SANTANDER BANCORP

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION
This is one of the Securities of the
series designated therein referred to
in the within-mentioned Indenture.

Banco Popular de Puerto Rico
as Trustee

By:
    ---------------------------------
    Authorized Signature

OR

________________________________, as
Authenticating Agent for the Trustee

By:
    ---------------------------------
    Authorized Signature

                                       19

<PAGE>

                             [REVERSE OF DEBENTURE]

                                SANTANDER BANCORP

                 7.00% JUNIOR SUBORDINATED DEBENTURES, SERIES A
                                DUE JULY 1, 2036

     This Security is one of a duly authorized issue of junior subordinated
securities of the Company (herein called the "Securities"), issued and to be
issued in one or more series under an indenture dated as of February 28, 2006,
as amended or supplemented from time to time (herein called the "Indenture"),
between the Company and, as Trustee (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities, and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof, limited in
aggregate principal amount to $129,000,000. All terms used in this Security
which are defined in the Indenture shall have the meanings assigned to them in
the Indenture unless otherwise defined in this Security.

     Subject to any required prior approval of the Primary Federal Regulator,
the Company may at any time, at its option, on or after July 1, 2011, and
subject to the terms and conditions of Article Eleven of the Indenture, redeem
the Securities of this series in whole at any time or in part from time to time,
at a Redemption Price equal to 100% of the principal amount thereof, together,
in the case of any such redemption, with accrued but unpaid interest, including
any Additional Interest, to but excluding the Redemption Date.

     In addition, upon the occurrence and during the continuation of a Tax
Event, an Investment Company Event or a Capital Treatment Event in respect of
Santander PR Capital Trust I, the Company may, at its option, at any time within
90 days of the occurrence and during the continuation of such Tax Event,
Investment Company Event or Capital Treatment Event, as the case may be, subject
to any required prior approval of the Primary Federal Regulator, redeem the
Securities of this series, in whole but not in part, subject to the terms and
conditions of Article Eleven of the Indenture, at a Redemption Price equal to
100% of the principal amount thereof, together, in the case of any such
redemption, with accrued but unpaid interest, including any Additional Interest,
to but excluding the Redemption Date.

     The Securities of this series are not subject to repayment at the option of
the Holder hereof. The Securities of this series will not be entitled to any
sinking fund.

     The indebtedness evidenced by the Securities of this series is, to the
extent and in the manner set forth in the Indenture, subordinate and subject in
right of payment to the prior payment in full of the principal of and premium,
if any, and interest on all Senior Debt of the Company, and each Holder of the
Securities of this series, by accepting the same, agrees to and shall be bound
by the provisions of the Indenture with respect hereto. The Securities of this
series shall rank on a parity with all Trust Related Securities, including
without limitation, the Guarantee Agreement related to the 7.00% Capital
Securities of Santander PR Capital Trust I.

     If an Event of Default, as defined in the Indenture, with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of all series to be affected, acting together. The
Indenture also contains provisions permitting the Holders of a majority in
principal amount of the Securities of all series at the time Outstanding
affected by certain provisions of the Indenture, acting together, on behalf of
the Holders of all Securities of such series, to waive compliance by the Company
with those provisions of

                                       20

<PAGE>

the Indenture. Certain past defaults under the Indenture and their consequences
may be waived under the Indenture by the Holders of a majority in principal
amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of all Securities of such series. All of the rights of the Holders
set forth in this paragraph are subject to the rights of the holders of Capital
Trust Securities as set forth in the Indenture. Any such consent or waiver by
the Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     The provisions contained in Section 403 and Article Seventeen of the
Indenture for defeasance of the entire indebtedness on this Security and certain
restrictive covenants and certain Events of Default do not apply to this
Security. The provisions contained in Section 401 of the Indenture for
defeasance of the entire indebtedness on this Security in certain circumstances
shall apply to this Security.

     Upon due presentment for registration of transfer of this Security at the
office or agency of the Company in the City of San Juan, Puerto Rico, a new
Security or Securities of this series in authorized denominations of $25 or
integral multiples thereof for an equal aggregate principal amount will be
issued to the transferee in exchange herefor, as provided in the Indenture and
subject to the limitations provided therein and to the limitations described
below, without charge except for any tax or other governmental charge imposed in
connection therewith.

     If this Security is a Global Security, this Security is exchangeable for
definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this
Security or if at any time the Depositary ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, and a
successor depositary is not appointed within 90 days, (y) the Company in its
sole discretion determines that this Security shall be exchangeable for
definitive Securities in registered form and notifies the Trustee thereof, or
(z) an Event of Default with respect to the Securities represented hereby has
occurred and is continuing. If this Security is exchangeable pursuant to the
preceding sentence, it shall be exchangeable for definitive Securities in
registered form, bearing interest, including Additional Interest, at the same
rate, having the same date of issuance, redemption provisions, Stated Maturity
and other terms and of authorized denominations aggregating a like amount.

     If this Security is a Global Security, this Security may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary
or by the Depositary or any such nominee to a successor of the Depositary or a
nominee of such successor. Except as provided above, owners of beneficial
interests in this global Security will not be entitled to receive physical
delivery of Securities in definitive form and will not be considered the Holders
hereof for any purpose under the Indenture.

     Subject to the rights of holders of Senior Debt of the Company set forth in
this Security and the indenture referred to above, no reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and interest, including any Additional Interest, on this
Security at the times, place and rate, and in the coin or currency, herein
prescribed, except as otherwise provided in this Security and except that in the
event the Company deposits money or Eligible Instruments as provided in Section
401 of the Indenture, such payments will be made only from proceeds of such
money or Eligible Instruments.

     Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     No recourse shall be had for the payment of the principal of or the
interest, including Additional Interest, on this Security, or for any claim
based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issuance hereof, expressly waived and released.

                                       21

<PAGE>

     The Company and, by its acceptance of this Security or a beneficial
interest herein, the Holder of, and any Person that acquires a beneficial
interest in, this Security, agree that for United States federal or Puerto Rico,
state and local tax purposes it is intended that this Security constitute
indebtedness.

                                       22

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM -- as tenants in common

TEN ENT -- as tenants by the entireties

JT TEN  -- as joint tenants with right of survivorship and not as tenants in
           common

UNIF GIFT MIN ACT -- _______________________ Custodian _______________________
                              (Cust)                           (Minor)

Under Uniform Gifts to Minors Act

---------------------------------
(State)

     Additional abbreviations may also be used though not in the above list.

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

Please Insert Social Security or
Other Identifying Number of Assignee

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

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

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

--------------------------------------------------------------------------------
  (Please print or type name and address including postal zip code of Assignee)

the within Security of SANTANDER BANCORP and does hereby irrevocably constitute
and appoint __________________ attorney to transfer the said Security on the
books of the Company, with full power of substitution in the premises.

Dated:
       ------------------------------

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

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

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever.

                                       23<PAGE>

                                                                     Exhibit 4.8

                    AMENDED AND RESTATED DECLARATION OF TRUST
                               AND TRUST AGREEMENT

                                      AMONG

                               SANTANDER BANCORP,
                                  AS DEPOSITOR

                          BANCO POPULAR DE PUERTO RICO,
                               AS PROPERTY TRUSTEE

                            WILMINGTON TRUST COMPANY,
                               AS DELAWARE TRUSTEE

                 AND THE SEVERAL HOLDERS OF THE TRUST SECURITIES

                          DATED AS OF FEBRUARY 28, 2006

                          SANTANDER PR CAPITAL TRUST I

<PAGE>

                          SANTANDER PR CAPITAL TRUST I

              CERTAIN SECTIONS OF THIS TRUST AGREEMENT RELATING TO
                        SECTIONS 3.10 THROUGH 3.18 OF THE
                          TRUST INDENTURE ACT OF 1939:

<TABLE>
<CAPTION>
TRUST INDENTURE                                                  TRUST AGREEMENT
ACT SECTION                                                      SECTION
---------------                                                  ---------------
<S>                                                              <C>
(Section) 310(a)(1)...........................................   8.7
             (a)(2)...........................................   8.7
             (a)(3)...........................................   8.7
             (a)(4)...........................................   2.7(a)(ii)
             (b)..............................................   8.8
(Section) 311(a)..............................................   8.13
             (b)..............................................   8.13
(Section) 312(a)..............................................   5.7
             (b)..............................................   5.7
(Section) 313(a)..............................................   5.7
             (b)..............................................   8.15(a)
             (a)(4)...........................................   8.15(b)
             (b)..............................................   8.15(b)
             (c)..............................................   10.8
             (d)..............................................   8.15(c)
(Section) 314(a)..............................................   8.16
             (b)..............................................   Not Applicable
             (c)(1)...........................................   8.17
             (c)(2)...........................................   8.17
             (c)(3)...........................................   Not Applicable
             (d)..............................................   Not Applicable
             (e)..............................................   1.1, 8.17
(Section) 315(a)..............................................   8.1(a), 8.3(a)
             (b)..............................................   8.2, 10.8
             (c)..............................................   8.1(a)
             (d)..............................................   8.1, 8.3
             (e)..............................................   Not Applicable
(Section) 316(a)..............................................   Not Applicable
             (a)(1)(A)........................................   Not Applicable
             (a)(1)(B)........................................   Not Applicable
             (a)(2)...........................................   Not Applicable
             (b)..............................................   5.14
             (c)..............................................   6.7
(Section) 317(a)(2)...........................................   Not Applicable
             (a)(2)...........................................   Not Applicable
             (b)..............................................   5.9
(Section) 318(a)..............................................   10.10
</TABLE>

                                        i

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                      PAGE
                                                                                      ----
<S>                                                                                   <C>
ARTICLE I - DEFINED TERMS..........................................................     1
   Section 1.1.   Definitions......................................................     1
ARTICLE II - CONTINUATION OF THE ISSUER TRUST......................................     9
   Section 2.1.   Name ............................................................     9
   Section 2.2.   Office of the Delaware Trustee; Principal Place of Business......     9
   Section 2.3.   Initial Contribution of Trust Property; Organizational Expenses..    10
   Section 2.4.   Issuance of the Capital Securities...............................    10
   Section 2.5.   Issuance of the Common Securities; Subscription and Purchase of
                     Debentures....................................................    10
   Section 2.6.   Declaration of Trust.............................................    10
   Section 2.7.   Authorization to Enter into Certain Transactions.................    11
   Section 2.8.   Assets of Trust..................................................    14
   Section 2.9.   Title to Trust Property..........................................    14
ARTICLE III - - PAYMENT ACCOUNT....................................................    14
   Section 3.1.   Payment Account..................................................    14
ARTICLE IV - DISTRIBUTIONS; REDEMPTION.............................................    15
   Section 4.1.   Distributions....................................................    15
   Section 4.2.   Redemption.......................................................    16
   Section 4.3.   Ranking of Trust Securities......................................    17
   Section 4.4.   Payment Procedures...............................................    18
   Section 4.5.   Tax Returns and Reports..........................................    18
   Section 4.6.   Payment of Expenses of the Issuer Trust..........................    18
   Section 4.7.   Payment of Taxes, Duties, Etc. of the Trust......................    19
   Section 4.8.   Payments under Indenture or Pursuant to Direct Actions...........    19
ARTICLE V - TRUST SECURITIES CERTIFICATES..........................................    19
   Section 5.1.   Initial Ownership................................................    19
   Section 5.2.   The Trust Securities Certificates................................    19
   Section 5.3.   Execution and Delivery of Trust Securities Certificates..........    20
   Section 5.4.   Registration of Transfer and Exchange of Capital Securities
                     Certificates..................................................    20
   Section 5.5.   Transfer Procedures and Restrictions.............................    21
   Section 5.6.   Mutilated, Destroyed, Lost or Stolen Trust Securities
                     Certificates..................................................    22
   Section 5.7.   Persons Deemed Holders...........................................    23
   Section 5.8.   Access to List of Holders' Names and Addresses...................    23
   Section 5.9.   Maintenance of Office or Agency..................................    23
   Section 5.10.  Appointment of Paying Agent......................................    23
   Section 5.11.  Ownership of Common Securities by Depositor......................    24
   Section 5.12.  Capital Securities Certificates; Common Securities Certificate...    24
   Section 5.13.  Notices to Clearing Agency.......................................    25
   Section 5.14.  Definitive Capital Securities Certificates.......................    25
   Section 5.15.  Rights of Holders; Waivers of Past Defaults......................    25
   Section 5.16.  CUSIP Numbers....................................................    27
ARTICLE VI - ACTS OF HOLDERS; MEETINGS; VOTING.....................................    28
</TABLE>

                                       iii

<PAGE>

<TABLE>
<S>                                                                                   <C>
   Section 6.1.   Limitations on Voting Rights.....................................    28
   Section 6.2.   Notice of Meetings...............................................    29
   Section 6.3.   Meetings of Holders of the Capital Securities....................    29
   Section 6.4.   Voting Rights....................................................    29
   Section 6.5.   Proxies, etc.....................................................    29
   Section 6.6.   Holder Action by Written Consent.................................    29
   Section 6.7.   Record Date for Voting and Other Purposes........................    30
   Section 6.8.   Acts of Holders..................................................    30
   Section 6.9.   Inspection of Records............................................    31
ARTICLE VII - REPRESENTATIONS AND WARRANTIES.......................................    31
   Section 7.1.   Representations and Warranties of the Property Trustee and the
                     Delaware Trustee..............................................    31
   Section 7.2.   Representations and Warranties of Depositor......................    32
ARTICLE VIII - THE ISSUER TRUSTEES.................................................    32
   Section 8.1.   Certain Duties and Responsibilities..............................    32
   Section 8.2.   Certain Notices..................................................    34
   Section 8.3.   Certain Rights of Property Trustee...............................    35
   Section 8.4.   Issuer Trustees Not Responsible for Recitals or Issuance of
                     Securities....................................................    36
   Section 8.5.   Issuer Trustees May Hold Securities..............................    36
   Section 8.6.   Compensation; Indemnity; Fees....................................    37
   Section 8.7.   Corporate Property Trustee Required; Eligibility of Issuer
                     Trustees......................................................    38
   Section 8.8.   Conflicting Interests............................................    38
   Section 8.9.   Co Trustees and Separate Trustee.................................    38
   Section 8.10.  Resignation and Removal; Appointment of Successor................    39
   Section 8.11.  Acceptance of Appointment by Successor...........................    41
   Section 8.12.  Merger, Conversion, Consolidation or Succession to Business......    41
   Section 8.13.  Preferential Collection of Claims Against Depositor or Issuer
                     Trust.........................................................    41
   Section 8.14.  Trustee May File Proofs of Claim.................................    41
   Section 8.15.  Reports by Property Trustee......................................    42
   Section 8.16.  Reports to the Property Trustee..................................    43
   Section 8.17.  Evidence of Compliance with Conditions Precedent.................    43
   Section 8.18.  Number of Issuer Trustees........................................    43
   Section 8.19.  Delegation of Power..............................................    43
ARTICLE IX - DISSOLUTION, LIQUIDATION AND MERGER...................................    44
   Section 9.1.   Dissolution Upon Expiration Date.................................    44
   Section 9.2.   Early Dissolution................................................    44
   Section 9.3.   Dissolution......................................................    44
   Section 9.4.   Liquidation......................................................    44
   Section 9.5.   Mergers, Consolidations, Amalgamations or Replacements of
                     Issuer Trust..................................................    46
ARTICLE X - MISCELLANEOUS PROVISIONS...............................................    47
   Section 10.1.  Limitation of Rights of Holders..................................    47
   Section 10.2.  Amendment........................................................    47
   Section 10.3.  Separability.....................................................    48
   Section 10.4.  Governing Law....................................................    48
   Section 10.5.  Payments Due on Non Business Day.................................    48
   Section 10.6.  Successors.......................................................    49
   Section 10.7.  Headings.........................................................    49
   Section 10.8.  Reports, Notices and Demands.....................................    49
   Section 10.9.  Agreement Not to Petition........................................    49
   Section 10.10. Trust Indenture Act; Conflict with Trust Indenture Act...........    50
   Section 10.11. Acceptance of Terms of Trust Agreement, Guarantee Agreement
                     and Indenture.................................................    50
   Section 10.12. Counterparts.....................................................    50
EXHIBIT A - CERTIFICATE OF TRUST...................................................     1
EXHIBIT B - FORM OF COMMON SECURITIES CERTIFICATE..................................     1
</TABLE>

                                       iv

<PAGE>

<TABLE>
<S>                                                                                   <C>
EXHIBIT C - FORM OF CAPITAL SECURITIES CERTIFICATE.................................     1
</TABLE>

                                        v
<PAGE>

     AMENDED AND RESTATED DECLARATION OF TRUST AND TRUST AGREEMENT, dated as of
February 28, 2006 among (i) Santander BanCorp, a Commonwealth of Puerto Rico
corporation (including any successors or assigns, the "Depositor"), (ii) Banco
Popular de Puerto Rico, a Commonwealth of Puerto Rico banking corporation, as
property trustee (in such capacity, the "Property Trustee"), (iii) Wilmington
Trust Company, a Delaware banking corporation, as Delaware trustee (in such
capacity, the "Delaware Trustee"), (iv) Juan J. Perez Hanley, an individual, and
Juan Diaz Soultaire, an individual, each of whose address is c/o Santander
BanCorp, 207 Ponce de Leon Avenue, Hato Rey, Puerto Rico 00917 (each, an
"Administrative Trustee," and collectively, the "Administrative Trustees") (the
Property Trustee, the Delaware Trustee, and the Administrative Trustees being
referred to collectively as the "Issuer Trustees"), and (v) the several Holders,
as hereinafter defined.

                                   WITNESSETH

     WHEREAS, the Depositor and certain of the Issuer Trustees have heretofore
duly declared and established a statutory trust (the "Issuer Trust") pursuant to
the Delaware Statutory Trust Act (as hereinafter defined) by entering into that
certain Declaration of Trust and Trust Agreement, dated as of February 24, 2006
(the "Original Trust Agreement"), and by the execution and filing with the
Secretary of State of the State of Delaware the Certificate of Trust, filed on
February 24, 2006, attached as Exhibit A (the "Certificate of Trust"); and

     WHEREAS, the Depositor and the Issuer Trustees desire to amend and restate
the Original Trust Agreement in its entirety as set forth herein to provide for,
among other things, (i) the issuance of the Common Securities by the Issuer
Trust to the Depositor, (ii) the issuance and sale of the Capital Securities by
the Issuer Trust pursuant to the Purchase Agreement, and (iii) the acquisition
by the Issuer Trust from the Depositor of all of the right, title and interest
in the Debentures;

     NOW THEREFORE, in consideration of the agreements and obligations set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each party, for the benefit of the
other parties and for the benefit of the Holders, hereby amends and restates the
Original Trust Agreement in its entirety and agrees as follows:

                                    ARTICLE I
                                  DEFINED TERMS

     Section 1.1. Definitions.

          For all purposes of this Trust Agreement, except as otherwise
expressly provided or unless the context otherwise requires:

          The terms defined in this Article have the meanings assigned to them
in this Article, and include the plural as well as the singular;

          All other terms used herein that are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;

          The words "include," "includes" and "including" shall be deemed to be
followed by the phrase "without limitation";

          All accounting terms used but not defined herein have the meanings
assigned to them in accordance with United States generally accepted accounting
principles;

<PAGE>

          Unless the context otherwise requires, any reference to an "Article,"
a "Section" or an "Exhibit" refers to an Article, a Section or an Exhibit, as
the case may be, of or to this Trust Agreement; and

          The words "hereby," "herein," "hereof" and "hereunder" and other words
of similar import refer to this Trust Agreement as a whole and not to any
particular Article, Section or other subdivision.

          "Act" has the meaning specified in Section 6.8.

          "Additional Amount" means, with respect to Trust Securities of a given
Liquidation Amount and/or a given period, the amount of Additional Interest (as
defined in the Indenture) paid by the Depositor on a Like Amount of Debentures
for such period.

          "Additional Sums" has the meaning specified in Section 1007 of the
Indenture.

          "Administrative Trustee" means each of the individuals identified as
an "Administrative Trustee" in the preamble to this Trust Agreement solely in
such individual's capacity as Administrative Trustee of the Trust formed and
continued hereunder and not in such individual's individual capacity, or such
Administrative Trustee's successor in interest in such capacity, or any
successor trustee appointed as herein provided.

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

          "Bankruptcy Event" means, with respect to any Person:

               (a) the entry of a decree or order by a court having jurisdiction
          in the premises judging such Person bankrupt or insolvent, or
          approving as properly filed a petition seeking reorganization,
          arrangement, adjudication or composition of or in respect of such
          Person under any applicable federal, State or Puerto Rico bankruptcy,
          insolvency, reorganization or other similar law, or appointing a
          receiver, liquidator, assignee, trustee, sequestrator (or other
          similar official) of such Person or of any substantial part of its
          property or ordering the winding up or liquidation of its affairs, and
          the continuance of any such decree or order unstayed and in effect for
          a period of 60 consecutive days; or

               (b) the institution by such Person of proceedings to be
          adjudicated bankrupt or insolvent, or the consent by it to the
          institution of bankruptcy or insolvency proceedings against it, or the
          filing by it of a petition or answer or consent seeking reorganization
          or relief under any applicable federal, State or Puerto Rico
          bankruptcy, insolvency, reorganization or other similar law, or the
          consent by it to the filing of any such petition or to the appointment
          of a receiver, liquidator, assignee, trustee, sequestrator (or similar
          official) of such Person or of any substantial part of its property,
          or the making by it of an assignment for the benefit of creditors, or
          the admission by it in writing of its inability to pay its debts
          generally as they become

                                        2

<PAGE>

          due and its willingness to be adjudicated bankrupt, or the taking of
          corporate action by such Person in furtherance of any such action.

          "Bankruptcy Laws" has the meaning specified in Section 10.9.

          "Board of Directors" means the board of directors of the Depositor or
a committee designated by the board of directors of the Depositor (or any such
committee), comprised of one or more members of the board of directors of the
Depositor or officers of the Depositor, or both.

          "Book-Entry Capital Securities Certificate" means a Capital Securities
Certificate evidencing ownership of Book-Entry Capital Securities.

          "Book-Entry Capital Security" means a Capital Security, the ownership
and transfers of which shall be made through book entries by a Clearing Agency
as described in Section 5.12.

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

          "Capital Securities Certificate" means a certificate evidencing
ownership of Capital Securities, substantially in the form attached hereto as
Exhibit C.

          "Capital Security" means an undivided beneficial interest in the
assets of the Issuer Trust, having a Liquidation Amount of $25 and having the
rights provided therefor in this Trust Agreement, including the right to receive
Distributions and a Liquidation Distribution as provided herein.

          "Certificate Depository Agreement" means any agreement among the
Issuer Trust, the Paying Agent and DTC, as the initial Clearing Agency, in
connection with the registration of the Capital Securities under the Securities
Act pursuant to the Registration Rights Agreement.

          "Certificate of Trust" has the meaning specified in the recitals
hereof, as amended from time to time.

          "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. DTC will be the initial
Clearing Agency.

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

          "Closing Date" means the Time of Delivery, which date is also the date
of execution and delivery of this Trust Agreement.

          "Code" means the U.S. Internal Revenue Code of 1986, as amended.

          "Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act or, if at any time
after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.

          "Common Securities Certificate" means a certificate evidencing
ownership of Common Securities, substantially in the form attached as Exhibit B.

                                        3

<PAGE>

          "Common Security" means an undivided beneficial interest in the assets
of the Issuer Trust, having a Liquidation Amount of $25 and having the rights
provided therefor in this Trust Agreement, including the right to receive
Distributions and a Liquidation Distribution as provided herein.

          "Corporate Trust Office" means (i) when used with respect to the
Property Trustee, the principal office of the Property Trustee located at Banco
Popular de Puerto Rico, Trust Division, Banco Popular Center, 209 Munoz Rivera
Avenue, San Juan, Puerto Rico 00918, Attention: Senior Trust Officer, and (ii)
when used with respect to the Debenture Trustee, the principal office of the
Debenture Trustee located at Banco Popular de Puerto Rico, Trust Division, Banco
Popular Center, 209 Munoz Rivera Avenue, San Juan, Puerto Rico 00918, Attention:
Senior Trust Officer.

          "Debenture Event of Default" means any "Event of Default" specified in
Section 501 of the Indenture.

          "Debenture Redemption Date" means, with respect to any Debentures to
be redeemed under the Indenture, the date fixed for redemption of such
Debentures under the Indenture.

          "Debenture Trustee" means Banco Popular de Puerto Rico, a Commonwealth
of Puerto Rico banking corporation, solely in its capacity as trustee pursuant
to the Indenture and not in its individual capacity, or its successor in
interest in such capacity, or any successor trustee appointed as provided in the
Indenture.

          "Debentures" means the Depositor's 7.00% Junior Subordinated
Debentures, Series A due July 1, 2036, issued pursuant to the Indenture.

          "Definitive Capital Securities Certificates" means either or both (as
the context requires) of (i) Capital Securities Certificates issued as
Book-Entry Capital Securities Certificates as provided in Section 5.12, and (ii)
Capital Securities Certificates issued in certificated, fully registered form as
provided in Section 5.14.

          "Delaware Statutory Trust Act" means Chapter 38 of Title 12 of the
Delaware Code, 12 Del. C. Section 3801 et seq., as it may be amended from time
to time.

          "Delaware Trustee" means the Person identified as the "Delaware
Trustee" in the preamble to this Trust Agreement, solely in its capacity as
Delaware Trustee of the trust heretofore formed and continued hereunder and not
in its individual capacity, or its successor in interest in such capacity, or
any successor Delaware trustee appointed as herein provided.

          "Depositor" has the meaning specified in the preamble to this Trust
Agreement.

          "Depositor Bankruptcy Event" means (i) the entry of a decree or order
for relief in respect of the Depositor by a court having jurisdiction in the
premises in an involuntary case under the federal bankruptcy laws, as now or
hereafter constituted, and the continuance of any such decree or order unstayed
and in effect for a period of 60 consecutive days or (ii) the commencement by
the Depositor of a voluntary case under the federal bankruptcy laws, as now or
hereafter constituted, or the consent by the Depositor to the entry of a decree
or order for relief in an involuntary case under any such law.

          "Distribution Date" has the meaning specified in Section 4.1(a)(i).

                                        4

<PAGE>

          "Distribution Period" means the period of time beginning on any
Distribution Date and ending on the day immediately preceding the next
succeeding Distribution Date.

          "Distributions" means amounts payable in respect of the Trust
Securities as provided in Section 4.1.

          "DTC" means The Depository Trust Company.

          "Early Dissolution Event" has the meaning specified in Section 9.2.

          "Event of Default" means any one of the following events (whatever the
reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):

          (1) the occurrence of a Debenture Event of Default; or

          (2) default by the Issuer Trust in the payment of any Distribution
when it becomes due and payable, and continuation of such default for a period
of 30 days; or

          (3) default by the Issuer Trust in the payment of any Redemption Price
of any Trust Security when it becomes due and payable; or

          (4) default in the performance, or breach, in any material respect, of
any covenant or warranty of the Issuer Trustees in this Trust Agreement (other
than those specified in clause (b) or (c) above) and continuation of such
default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Issuer Trustees and to the Depositor by the
Holders of at least 25% in aggregate Liquidation Amount of the Outstanding
Capital Securities a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder; or

          (5) the occurrence of a Bankruptcy Event with respect to the Property
Trustee if a successor Property Trustee has not been appointed within 90 days
thereof.

          "Exchange Act" means the Securities Exchange Act of 1934, and any
successor statute thereto, in each case as amended from time to time.

          "Expiration Date" has the meaning specified in Section 9.1.

          "Federal Reserve" means the Federal Reserve or its district reserve
banks, as from time to time constituted, or if at any time after the execution
of this Trust Agreement the Federal Reserve is not existing and performing the
duties now assigned to it, then the body performing such duties at such time.

          "Guarantee" means the Guarantee Agreement executed and delivered by
the Depositor and Banco Popular de Puerto Rico, as trustee, contemporaneously
with the execution and delivery of this Trust Agreement, for the benefit of the
holders of the Capital Securities, as amended from time to time.

          "Holder" means a Person in whose name a Trust Security or Trust
Securities are registered in the Securities Register; any such Person shall be
deemed to be a beneficial owner within the meaning of the Delaware Statutory
Trust Act.

                                        5

<PAGE>

          "Indenture" means the Junior Subordinated Indenture, dated as of
February 26, 2006, between the Depositor and the Debenture Trustee, as trustee,
as amended or supplemented from time to time.

          "Initial Purchaser" means Santusa Holding, S.L., or any Affiliate of
Santusa Holding, S.L.

          "Investment Company Act" means the Investment Company Act of 1940, or
any successor statute thereto, in each case as amended from time to time.

          "Issuer Trust" means the Delaware statutory trust known as "Santander
PR Capital Trust I" which was created on February 24, 2006 under the Delaware
Statutory Trust Act pursuant to the Original Trust Agreement and the filing of
the Certificate of Trust, and continued pursuant to this Trust Agreement.

          "Issuer Trustees" means, collectively, the Property Trustee, the
Delaware Trustee, and the Administrative Trustees.

          "Lien" means any lien, pledge, charge, encumbrance, mortgage, deed of
trust, adverse ownership interest, hypothecation, assignment, security interest
or preference, priority or other security agreement or preferential arrangement
of any kind or nature whatsoever.

          "Like Amount" means (a) with respect to a redemption of any Trust
Securities, Trust Securities having a Liquidation Amount equal to the principal
amount of Debentures to be contemporaneously redeemed in accordance with the
Indenture, the proceeds of which will be used to pay the Redemption Price of
such Trust Securities, (b) with respect to a distribution of Debentures to
Holders of Trust Securities in connection with a dissolution or liquidation of
the Issuer Trust, Debentures having a principal amount equal to the Liquidation
Amount of the Trust Securities of the Holder to whom such Debentures are
distributed, and (c) with respect to any distribution of Additional Amounts to
Holders of Trust Securities, Debentures having a principal amount equal to the
Liquidation Amount of the Trust Securities in respect of which such distribution
is made.

          "Liquidation Amount" means the stated amount of $25 per Trust
Security.

          "Liquidation Date" means the date of the dissolution, winding-up or
dissolution of the Issuer Trust pursuant to Section 9.4.

          "Liquidation Distribution" has the meaning specified in Section
9.4(d).

          "Majority in Liquidation Amount of the Capital Securities" or
"Majority in Liquidation Amount of the Common Securities" means, except as
provided by the Trust Indenture Act, Capital Securities or Common Securities, as
the case may be, representing more than 50% of the aggregate Liquidation Amount
of all then Outstanding Capital Securities or Common Securities, as the case may
be.

          "Officers' Certificate" means, with respect to any Person, a
certificate signed by the Chairman of the Board of Directors of such Person, a
Vice Chairman of the Board of Directors of such Person, the President or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of such Person. Any Officers' Certificate delivered with
respect to compliance with a condition or covenant provided for in this Trust
Agreement shall include:

                                        6

<PAGE>

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

               (b) a brief statement of the nature and scope of the examination
          or investigation undertaken by such officer in rendering the Officers'
          Certificate;

               (c) a statement that 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

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

          "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for or an employee of the Depositor or any Affiliate of the Depositor.

          "Original Trust Agreement" has the meaning specified in the recitals
to this Trust Agreement.

          "Outstanding," when used with respect to Trust Securities, means, as
of the date of determination, all Trust Securities theretofore executed and
delivered under this Trust Agreement, except:

               (a) Trust Securities theretofore canceled by the Property Trustee
          or delivered to the Property Trustee for cancellation;

               (b) Trust Securities for whose payment or redemption money in the
          necessary amount has been theretofore deposited with the Property
          Trustee or any Paying Agent; provided that, if such Trust Securities
          are to be redeemed, notice of such redemption has been duly given
          pursuant to this Trust Agreement; and

               (c) Trust Securities that have been paid or in exchange for or in
          lieu of which other Capital Securities have been executed and
          delivered pursuant to Section 5.4, Section 5.6 and Section 5.12;
          provided, however, that in determining whether the Holders of the
          requisite Liquidation Amount of the Outstanding Capital Securities
          have given any request, demand, authorization, direction, notice,
          consent or waiver hereunder, Capital Securities owned by the
          Depositor, any Issuer Trustee, or any Affiliate of the Depositor or
          any Issuer Trustee shall be disregarded and deemed not to be
          Outstanding, except that (a) in determining whether any Issuer Trustee
          shall be protected in relying upon any such request, demand,
          authorization, direction, notice, consent or waiver, only Capital
          Securities that such Issuer Trustee knows to be so owned shall be so
          disregarded, and (b) the foregoing shall not apply at any time when
          all of the outstanding Capital Securities are owned by the Depositor,
          one or more of the Issuer Trustees, and/or any such Affiliate. Capital
          Securities so owned that have been pledged in good faith may be
          regarded as Outstanding if the pledgee establishes to the satisfaction
          of the Administrative Trustees the pledgee's right so to act with
          respect to such Capital Securities and that the pledgee is not the
          Depositor or any Affiliate of the Depositor.

          "Owner" means each Person who is the beneficial owner of Book-Entry
Capital Securities as reflected in the records of the Clearing Agency or, if a
Clearing Agency Participant is not the Owner, then as reflected in the records
of

                                        7

<PAGE>

a Person maintaining an account with such Clearing Agency (directly or
indirectly, in accordance with the rules of such Clearing Agency).

          "Paying Agent" means any paying agent or co-paying agent appointed
pursuant to Section 5.10 and shall initially be Banco Santander Puerto Rico.

          "Payment Account" means a segregated non-interest-bearing corporate
trust account maintained by the Property Trustee with Banco Popular de Puerto
Rico in its trust department for the benefit of the Holders in which all amounts
paid in respect of the Debentures will be held and from which the Property
Trustee, through the Paying Agent, shall make payments to the Holders in
accordance with Section 4.1 and Section 4.2.

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

          "Property Trustee" means the Person identified as the "Property
Trustee" in the preamble to this Trust Agreement, solely in its capacity as
Property Trustee of the trust heretofore formed and continued hereunder and not
in its individual capacity, or its successor in interest in such capacity, or
any successor property trustee appointed as herein provided.

          "Purchase Agreement" means the Purchase Agreement, dated as of
February 28, 2006, among the Trust, the Depositor and the Initial Purchaser, as
purchaser.

          "Redemption Date" means, with respect to any Trust Security to be
redeemed, the date fixed for such redemption by or pursuant to this Trust
Agreement; provided that each Debenture Redemption Date and the stated maturity
of the Debentures shall be a Redemption Date for a Like Amount of Trust
Securities.

          "Redemption Price" means, with respect to any Trust Security, the
Liquidation Amount of such Trust Security, plus accumulated and unpaid
Distributions to the Redemption Date, plus the related amount of the premium, if
any, paid by the Depositor upon the concurrent redemption of a Like Amount of
Debentures.

          "Registrable Securities" shall have the meaning assigned to it in
Section 5.5.

          "Registration Rights Agreement" means the Registration Rights
Agreement dated as of February 28, 2006, among the Depositor, the Issuer Trust
and the Initial Purchaser, relating to the Capital Securities.

          "Relevant Trustee" shall have the meaning specified in Section 8.10.

          "Responsible Officer" means, with respect to any Issuer Trustee, the
President, any Senior Vice President, any Vice President, any Assistant Vice
President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant
Treasurer, any Trust Officer or Assistant Trust Officer of such Issuer Trustee.

          "Restricted Securities Legend" shall have the meaning assigned to it
in Section 5.2.

          "Securities Act" means the Securities Act of 1933, and any successor
statute thereto, in each case as amended from time to time.

                                        8

<PAGE>

          "Securities Register" and "Securities Registrar" have the respective
meanings specified in Section 5.4.

          "Time of Delivery" means February 28, 2006.

          "Trust Agreement" means this Amended and Restated Trust Agreement, as
the same may be modified, amended or supplemented in accordance with the
applicable provisions hereof, including (i) all exhibits, and (ii) for all
purposes of this Trust Agreement and any such modification, amendment or
supplement, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this Trust Agreement and any such modification, amendment or
supplement, respectively.

          "Trust Indenture Act" means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"Trust Indenture Act" means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.

          "Trust Property" means (a) the Debentures, (b) any cash on deposit in,
or owing to, the Payment Account, and (c) all proceeds and rights in respect of
the foregoing and any other property and assets for the time being held or
deemed to be held by the Property Trustee pursuant to this Trust Agreement.

          "Trust Security" means any one of the Common Securities or the Capital
Securities.

          "Trust Securities Certificate" means any one of the Common Securities
Certificates or the Capital Securities Certificates.

          "Vice President," when used with respect to the Depositor, means any
duly appointed vice president, whether or not designated by a number or a word
or words added before or after the title "vice president."

                                   ARTICLE II
                        CONTINUATION OF THE ISSUER TRUST

     Section 2.1. Name.

          The trust continued hereby shall be known as "Santander PR Capital
Trust I," as such name may be modified from time to time by the Administrative
Trustees following written notice to the Holders and the other Issuer Trustees,
in which name the Administrative Trustees and the other Issuer Trustees may
conduct the business of the Issuer Trust, make and execute contracts and other
instruments on behalf of the Issuer Trust and sue and be sued on behalf of the
Trust.

     Section 2.2. Office of the Delaware Trustee; Principal Place of Business.

          The address of the Delaware Trustee in the State of Delaware is c/o
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, or such other address in the State of Delaware as
the Delaware Trustee may designate by written notice to the Depositor, the
Property Trustee and the Administrative Trustees. The principal executive office
of the Issuer Trust is c/o Santander BanCorp, 207 Ponce de Leon Avenue, Hato
Rey, Puerto Rico 00919, Attention: Santander PR Capital Trust I.

                                        9

<PAGE>

     Section 2.3. Initial Contribution of Trust Property; Organizational
Expenses.

          The Issuer Trustees acknowledge receipt from the Depositor in
connection with the Original Trust Agreement of the sum of $10, which
constituted the initial Trust Property. The Depositor shall pay organizational
expenses of the Issuer Trust as they arise or shall, upon request of any Issuer
Trustee, promptly reimburse such Issuer Trustee for any such expenses paid by
such Issuer Trustee. The Depositor shall make no claim upon the Trust Property
for the payment of such expenses.

     Section 2.4. Issuance of the Capital Securities.

          On February 28, 2006, the Depositor, both on its own behalf and on
behalf of the Issuer Trust pursuant to the Original Trust Agreement, executed
and delivered the Purchase Agreement, such execution and delivery being hereby
ratified in all respects. Contemporaneously with the execution and delivery of
this Trust Agreement, an Administrative Trustee, on behalf of the Trust, shall
execute in accordance with Section 5.3 and deliver to the Initial Purchaser a
Capital Securities Certificate, registered in the name of the Initial Purchaser
or its nominee, in an aggregate amount of 5,000,000 Capital Securities having an
aggregate Liquidation Amount of $125,000,000.00, against payment of the purchase
price therefor in immediately available funds, which funds such Administrative
Trustee shall promptly deliver to the Property Trustee.

     Section 2.5. Issuance of the Common Securities; Subscription and Purchase
of Debentures.

          Contemporaneously with the execution and delivery of this Trust
Agreement, an Administrative Trustee, on behalf of the Issuer Trust, shall
execute in accordance with Section 5.3 and deliver to the Depositor Common
Securities Certificates, registered in the name of the Depositor, in an
aggregate amount of 160,000 Common Securities having an aggregate Liquidation
Amount of $4,000,000 against payment by the Depositor of the purchase price
therefor in immediately available funds, which amount such Administrative
Trustee shall promptly deliver to the Property Trustee. Contemporaneously
therewith, an Administrative Trustee, on behalf the Issuer Trust, shall
subscribe to and purchase from the Depositor Debentures registered in the name
of the Issuer Trust and having an aggregate principal amount equal to
$129,000,000 and shall deliver to the Depositor the purchase price therefor
(being the sum of the amounts delivered to the Property Trustee pursuant to (i)
the second sentence of Section 2.4 and (ii) the first sentence of this Section
2.5).

     Section 2.6. Declaration of Trust.

          The exclusive purposes and functions of the Issuer Trust are (a) to
issue and sell Trust Securities, (b) to use the proceeds from such sale to
acquire the Debentures, and (c) to engage in those activities necessary,
convenient or incidental thereto. The Depositor hereby appoints the Issuer
Trustees as trustees of the Issuer Trust, to have all the rights, powers and
duties to the extent set forth herein, and the Issuer Trustees hereby accept
such appointment. The Property Trustee hereby declares that it will hold the
Trust Property upon and subject to the conditions set forth herein for the
benefit of the Issuer Trust and the Holders. The Administrative Trustees shall
have all rights, powers and duties set forth herein and in accordance with
applicable law with respect to accomplishing the purposes of the Issuer Trust.
The Delaware Trustee shall not be entitled to exercise any powers, nor shall the
Delaware Trustee have any of the duties and responsibilities of the Property
Trustee or the Administrative Trustees, or any of the duties and
responsibilities of the Issuer Trustees generally, set forth herein. The
Delaware Trustee shall be one of the trustees of the Issuer Trust for the sole
and limited purpose of fulfilling

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<PAGE>

the requirements of Section 3807(a) of the Delaware Statutory Trust Act and for
taking such actions as are required to be taken by a Delaware trustee under the
Delaware Statutory Trust Act.

          The duties and responsibilities of the Delaware Trustee shall be
limited solely to (a) accepting legal process served on the trust in the State
of Delaware and (b) the execution and delivery of all documents, and the
maintenance of all records, necessary to form and maintain the existence of the
Trust under the Statutory Trust Act. Except for the purpose of the foregoing
sentence, the Delaware Trustee shall not be deemed a trustee and shall have no
management responsibilities or owe any fiduciary duties to the Trust or the
Holders.

     Section 2.7. Authorization to Enter into Certain Transactions.

          (a) The Issuer Trustees shall conduct the affairs of the Issuer Trust
in accordance with the terms of this Trust Agreement. Subject to the limitations
set forth in paragraph (b) of this Section, and in accordance with the following
provisions (i) and (ii), the Issuer Trustees shall have the authority to enter
into all transactions and agreements determined by the Issuer Trustees to be
appropriate in exercising the authority, express or implied, otherwise granted
to the Issuer Trustees under this Trust Agreement, and to perform all acts in
furtherance thereof, including the following:

               (i) As among the Issuer Trustees, the Administrative Trustees,
     and each of them, shall have the power and authority to act on behalf of
     the Issuer Trust with respect to the following matters:

                    (A) the issuance and sale of the Trust Securities;

                    (B) to cause the Issuer Trust to perform on behalf of the
          Issuer Trust the Purchase Agreement and to cause the Issuer Trust to
          enter into, and to execute, deliver and perform on behalf of the
          Issuer Trust the Certificate Depository Agreement and such other
          agreements as may be necessary or desirable in connection with the
          purposes and function of the Issuer Trust;

                    (C) assisting in the registration of the Capital Securities
          under the Securities Act and under state securities or blue sky laws,
          and the qualification of this Trust Agreement under the Trust
          Indenture Act, if required;

                    (D) assisting in the listing of the Capital Securities upon
          such securities exchange or exchanges as shall be determined by the
          Depositor, with the registration of the Capital Securities under the
          Exchange Act, if required, and with the preparation and filing of all
          periodic and other reports and other documents pursuant to the
          foregoing;

                    (E) assisting in the sending of notices (other than notices
          of default) and other information regarding the Trust Securities and
          the Debentures to the Holders in accordance with this Trust Agreement;

                    (F) the appointment of a Paying Agent and Securities
          Registrar in accordance with this Trust Agreement;

                    (G) to the extent provided in this Trust Agreement, the
          winding up of the affairs of and liquidation of the Issuer Trust and
          the execution and filing of the certificate of cancellation with the
          Secretary of State of the State of Delaware;

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<PAGE>

                    (H) execution of the Trust Securities on behalf of the Trust
          in accordance with this Trust Agreement;

                    (I) execution and delivery of closing certificates, if any,
          pursuant to the Purchase Agreement and application for a taxpayer
          identification number for the Issuer Trust;

                    (J) unless otherwise determined by the Depositor, the
          Property Trustee, or the Administrative Trustees or as otherwise
          required by the Delaware Statutory Trust Act or the Trust Indenture
          Act, to execute on behalf of the Issuer Trust (either acting alone or
          together with any or all of the Administrative Trustees) any documents
          that the Administrative Trustees have the power to execute pursuant to
          this Trust Agreement; and

                    (K) the taking of any action incidental to the foregoing as
          the Issuer Trustees may from time to time determine is necessary or
          advisable to give effect to the terms of this Trust Agreement.

               (ii) As among the Issuer Trustees, the Property Trustee shall
     have the power, duty and authority to act on behalf of the Issuer Trust
     with respect to the following matters:

                    (A) the establishment of the Payment Account;

                    (B) the receipt of the Debentures;

                    (C) the collection of interest, principal and any other
          payments made in respect of the Debentures and the holding of such
          amounts in the Payment Account;

                    (D) the distribution through the Paying Agent of amounts
          distributable to the Holders in respect of the Trust Securities;

                    (E) the exercise of all of the rights, powers and privileges
          of a holder of the Debentures;

                    (F) the sending of notices of default and other information
          regarding the Trust Securities and the Debentures to the Holders in
          accordance with this Trust Agreement;

                    (G) the distribution of the Trust Property in accordance
          with the terms of this Trust Agreement;

                    (H) to the extent provided in this Trust Agreement, the
          winding up of the affairs of and liquidation of the Issuer Trust and
          the preparation, execution and filing of the certificate of
          cancellation with the Secretary of State of the State of Delaware;

                    (I) after an Event of Default (other than under paragraph
          (b),(c), (d) or (e) of the definition of such term if such Event of
          Default is by or with respect to the Property Trustee) the taking of
          any action incidental to the foregoing as the Property Trustee may
          from time to time determine is necessary or advisable to give effect
          to the terms of this Trust Agreement and protect and conserve the
          Trust Property for the benefit of the Holders (without consideration
          of the effect of any such action on any particular Holder); and

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<PAGE>

                    (J) except as otherwise provided in this Section 2.7(a)(ii),
          the Property Trustee shall have none of the duties, liabilities,
          powers or the authority of the Administrative Trustees set forth in
          Section 2.7(a)(i).

          (b) So long as this Trust Agreement remains in effect, the Issuer
Trust (or the Issuer Trustees acting on behalf of the Issuer Trust) shall not
undertake any business, activities or transactions except as expressly provided
herein or contemplated hereby. In particular, the Issuer Trustees (acting on
behalf of the Issuer Trust) shall not cause the Trust to (i) acquire any
investments or engage in any activities not authorized by this Trust Agreement,
(ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise
dispose of any of the Trust Property or interests therein, including to Holders,
except as expressly provided herein, (iii) take any action that would reasonably
be expected to cause the Issuer Trust to become taxable as a corporation or
classified as other than a grantor trust for United States federal or
Commonwealth of Puerto Rico income tax purposes, (iv) incur any indebtedness for
borrowed money or issue any other debt, (v) take or consent to any action that
would result in the placement of a Lien on any of the Trust Property, (vi)
invest any proceeds received by the Issuer Trust from holding the Debentures,
but shall distribute all such proceeds to Holders of Trust Securities pursuant
to the terms of this Trust Agreement and of the Trust Securities, (vii) acquire
any assets other than the Trust Property, (viii) possess any power or otherwise
act in such a way as to vary the Trust Property, (ix) possess any power or
otherwise act in such a way as to vary the terms of the Trust Securities in any
way whatsoever (except to the extent expressly authorized in this Trust
Agreement or by the terms of the Trust Securities) or (x) issue any securities
or other evidences of beneficial ownership of, or beneficial interest in, the
Issuer Trust other than the Trust Securities. The Property Trustee shall defend
all claims and demands of all Persons at any time claiming any Lien on any of
the Trust Property adverse to the interest of the Issuer Trust or the Holders in
their capacity as Holders.

          (c) In connection with the issuance and sale of the Capital
Securities, the Depositor shall have the right and responsibility to assist the
Issuer Trust with respect to, or effect on behalf of the Issuer Trust, the
following (and any actions taken by the Depositor in furtherance of the
following prior to the date of this Trust Agreement are hereby ratified and
confirmed in all respects):

               (i) the preparation and filing by the Issuer Trust with the
     Commission of and the execution on behalf of the Issuer Trust of a
     registration statement on the appropriate form in relation to the Capital
     Securities, including any amendments thereto;

               (ii) the determination of the states in which to take appropriate
     action to qualify or register for sale all or part of the Capital
     Securities and the determination of any and all such acts, other than
     actions that must be taken by or on behalf of the Issuer Trust, and the
     advice to the Issuer Trust of actions they must take on behalf of the
     Issuer Trust, and the preparation for execution and filing of any documents
     to be executed and filed by the Issuer Trust or on behalf of the Issuer
     Trust, as the Depositor deems necessary or advisable in order to comply
     with the applicable laws of any such states;

               (iii) the preparation for filing by the Issuer Trust and
     execution on behalf of the Issuer Trust of an application to the New York
     Stock Exchange or any other national stock exchange or the Nasdaq National
     Market or any other automated quotation system for listing upon notice of
     issuance of any Capital Securities and filing with such exchange or
     self-regulatory organization such notification and documents as may be
     necessary from time to time to maintain such listing;

                                       13

<PAGE>

               (iv) the negotiation of the terms of, and the execution and
     delivery of, the Purchase Agreement providing for the sale of the Capital
     Securities; and

               (v) the taking of any other actions necessary or desirable to
     carry out any of the foregoing activities.

          (d) Notwithstanding anything herein to the contrary, the
Administrative Trustees are authorized and directed to conduct the affairs of
the Issuer Trust and to operate the Issuer Trust so that the Issuer Trust will
not be deemed to be an "investment company" required to be registered under the
Investment Company Act, and will not be taxable as a corporation or classified
as other than a grantor trust for United States federal or Commonwealth of
Puerto Rico income tax purposes and so that the Debentures will be treated as
indebtedness of the Depositor for Commonwealth of Puerto Rico tax purposes. In
this connection, the Depositor and the Administrative Trustees are authorized to
take any action, not inconsistent with applicable law, the Certificate of Trust
or this Trust Agreement, that they determine in their discretion to be necessary
or desirable for such purposes, as long as such action does not adversely affect
in any material respect the interests of the Holders of the Outstanding Capital
Securities. In no event shall the Depositor or the Issuer Trustees be liable to
the Issuer Trust or the Holders for any failure to comply with this section that
results from a change in law or regulation or in the interpretation thereof.

     Section 2.8. Assets of Trust.

          The assets of the Issuer Trust shall consist solely of the Trust
Property.

     Section 2.9. Title to Trust Property.

          Legal title to all Trust Property shall be vested at all times in the
Property Trustee (in its capacity as such) and shall be held and administered by
the Property Trustee in trust for the benefit of the Issuer Trust and the
Holders in accordance with this Trust Agreement.

                                   ARTICLE III
                                 PAYMENT ACCOUNT

     Section 3.1. Payment Account.

          (a) On or prior to the Closing Date, the Property Trustee shall
establish the Payment Account. The Property Trustee and its agents shall have
exclusive control and sole right of withdrawal with respect to the Payment
Account for the purpose of making deposits in and withdrawals from the Payment
Account in accordance with this Trust Agreement. All monies and other property
deposited or held from time to time in the Payment Account shall be held by the
Property Trustee in the Payment Account for the exclusive benefit of the Holders
and for distribution as herein provided, including (and subject to) any priority
of payments provided for herein.

          (b) The Property Trustee shall deposit in the Payment Account,
promptly upon receipt, all payments of principal of or interest on, and any
other payments or proceeds with respect to, the Debentures. Amounts held in the
Payment Account shall not be invested by the Property Trustee pending
distribution thereof.

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<PAGE>

                                   ARTICLE IV
                            DISTRIBUTIONS; REDEMPTION

     Section 4.1. Distributions.

          (a) The Trust Securities represent undivided beneficial interests in
the Trust Property, and Distributions (including of Additional Amounts) will be
made on the Trust Securities at the rate and on the dates that payments of
interest (including Additional Interest, as defined in the Indenture) are made
on the Debentures. Accordingly:

               (i) Distributions on the Trust Securities shall be cumulative,
     and will accumulate whether or not there are funds of the Trust available
     for the payment of Distributions. Distributions shall accrue from February
     28, 2006 and, except in the event (and to the extent) that the Depositor
     exercises its right to defer the payment of interest on the Debentures
     pursuant to the Indenture, shall be payable semi-annually in arrears on the
     first day of each January and July, commencing on January 1, 2007. If any
     date on which a Distribution is otherwise payable on the Trust Securities
     is not a Business Day, then the payment of such Distribution shall be made
     on the next succeeding day that is a Business Day (and without any interest
     or other payment in respect of any such delay), with the same force and
     effect as if made on the date on which such payment was originally payable
     (each date on which distributions are payable in accordance with this
     Section 4.1(a), a "Distribution Date").

               (ii) In the event (and to the extent) that the Depositor
     exercises its right under the Indenture to defer the payment of interest on
     the Debentures, Distributions on the Trust Securities shall be deferred but
     shall continue to accumulate. Distributions on the Trust Securities shall
     be payable at a rate of 7.00% per annum of the Liquidation Amount of the
     Trust Securities. The amount of Distributions payable for any semi-annual
     interest period shall be computed on the basis of a 360-day year of twelve
     30-day months. The amount of Distributions for any partial period shall be
     computed on the basis of a 360-day year of twelve 30-day months and the
     actual number of days elapsed in that period. The amount of Distributions
     payable for any period shall include the Additional Amounts, if any.

               (iii) Distributions on the Trust Securities shall be made by the
     Property Trustee from the Payment Account and shall be payable on each
     Distribution Date only to the extent that the Issuer Trust has funds then
     on hand and available in the Payment Account for the payment of such
     Distributions.

          (b) Distributions on the Trust Securities with respect to a
Distribution Date shall be payable to the Holders thereof as they appear on the
Securities Register for the Trust Securities at the close of business on the
relevant record date for such Distribution Date, which shall be the 15th day,
whether or not a Business Day, of the month immediately preceding the
Distribution Date. Distributions payable on any Trust Securities that are not
punctually paid on any Distribution Date will cease to be payable to the Person
in whose name such Trust Securities are registered on the relevant record date,
and such defaulted Distribution will instead be payable to the Person in whose
name such Trust Securities are registered on the special record date or other
specified date for determining Holders entitled to such defaulted interest
established in accordance with the Indenture.

                                       15

<PAGE>

     Section 4.2. Redemption.

          (a) On each Debenture Redemption Date and on the stated maturity of
the Debentures, the Issuer Trust will be required to redeem a Like Amount of
Trust Securities at the Redemption Price.

          (b) Notice of redemption shall be given by the Property Trustee by
first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days
prior to the Redemption Date to each Holder of Trust Securities to be redeemed,
at such Holder's address appearing in the Security Register. All notices of
redemption shall state:

               (i) the Redemption Date;

               (ii) the Redemption Price or if the Redemption Price cannot be
     calculated prior to the time the notice is required to be sent, the
     estimate of the Redemption Price together with a statement that it is an
     estimate and that the actual Redemption Price will be calculated on the
     third Business Day prior to the Redemption Date (and if an estimate is
     provided, a further notice shall be sent of the actual Redemption Price on
     the date that such Redemption Price is calculated);

               (iii) the CUSIP number or CUSIP numbers of the Capital Securities
     affected;

               (iv) if less than all the Outstanding Trust Securities are to be
     redeemed, the identification and the aggregate Liquidation Amount of the
     particular Trust Securities to be redeemed;

               (v) that on the Redemption Date the Redemption Price will become
     due and payable upon each such Trust Security to be redeemed and that
     Distributions thereon will cease to accrue on and after said date, except
     as provided in Section 4.2(d) below; and

               (vi) if the Capital Securities are not in book-entry-only form,
     the place or places where the Capital Securities Certificates are to be
     surrendered for the payment of the Redemption Price.

          (c) The Trust Securities redeemed on each Redemption Date shall be
redeemed at the Redemption Price with the proceeds from the contemporaneous
redemption or payment at stated maturity of the Debentures. Redemptions of the
Trust Securities shall be made and the Redemption Price shall be payable on each
Redemption Date only to the extent that the Issuer Trust has funds then on hand
and available in the Payment Account for the payment of such Redemption Price.

          (d) If the Property Trustee gives a notice of redemption in respect of
any Capital Securities, then, by 12:00 noon, New York City time, on the
Redemption Date, subject to Section 4.2(c), the Property Trustee will, with
respect to Book-Entry Capital Securities, irrevocably deposit with the Clearing
Agency for such Book-Entry Capital Securities, to the extent available therefor
in the Payment Account, funds sufficient to pay the applicable Redemption Price
and will give such Clearing Agency irrevocable instructions and authority to pay
the Redemption Price to the Holders of the Capital Securities. With respect to
Capital Securities that are not Book-Entry Capital Securities, the Property
Trustee, subject to Section 4.2(c), will irrevocably deposit with the Paying
Agent, to the extent available therefor in the Payment Account, funds sufficient
to pay the applicable Redemption Price and will give the Paying Agent
irrevocable instructions and authority to pay the Redemption Price to the
Holders of the Capital Securities upon surrender of their Capital Securities
Certificates. Notwithstanding the foregoing, Distributions payable on or prior
to the Redemption Date for any Trust Securities called for redemption shall be
payable

                                       16

<PAGE>

to the Holders of such Trust Securities as they appear on the Securities
Register for the Trust Securities on the relevant record dates for the related
Distribution Dates. If notice of redemption shall have been given and funds
deposited as required, then upon the date of such deposit, all rights of Holders
holding Trust Securities so called for redemption will cease, except the right
of such Holders to receive the Redemption Price and any Distribution payable in
respect of the Trust Securities on or prior to the Redemption Date, but without
interest, and such Trust Securities will cease to be outstanding. In the event
that any date on which any Redemption Price is payable is not a Business Day,
then payment of the Redemption Price payable on such date will be made on the
next succeeding day that is a Business Day (without any interest or other
payment in respect of any such delay), with the same force and effect as if made
on such date. In the event that payment of the Redemption Price in respect of
any Trust Securities called for redemption is improperly withheld or refused and
not paid either by the Issuer Trust or by the Depositor pursuant to the
Guarantee, Distributions on such Trust Securities will continue to accumulate,
as set forth in Section 4.1, from the Redemption Date originally established by
the Issuer Trust for such Trust Securities to the date such Redemption Price is
actually paid, in which case the actual payment date will be the date fixed for
redemption for purposes of calculating the Redemption Price.

          (e) Subject to Section 4.3(a), if less than all the Outstanding Trust
Securities are to be redeemed on a Redemption Date, then the aggregate
Liquidation Amount of Trust Securities to be redeemed shall be allocated pro
rata to the Common Securities and the Capital Securities based upon the relative
Liquidation Amounts of such classes. The particular Capital Securities to be
redeemed shall be selected on a pro rata basis based upon their respective
Liquidation Amounts not more than 60 days prior to the Redemption Date by the
Property Trustee from the Outstanding Capital Securities not previously called
for redemption by any method the Property Trustee deems fair and appropriate,
provided that so long as the Capital Securities are in book-entry-only form,
such selection shall be made in accordance with the customary procedures for the
Clearing Agency for the Capital Securities. The Property Trustee shall promptly
notify the Securities Registrar in writing of the Capital Securities selected
for redemption and, in the case of any Capital Securities selected for partial
redemption, the Liquidation Amount thereof to be redeemed. For all purposes of
this Trust Agreement, unless the context otherwise requires, all provisions
relating to the redemption of Capital Securities shall relate, in the case of
any Capital Securities redeemed or to be redeemed only in part, to the portion
of the aggregate Liquidation Amount of Capital Securities that has been or is to
be redeemed.

     Section 4.3. Ranking of Trust Securities.

          (a) Payment of Distributions (including any Additional Amounts) on,
the Redemption Price of, and the Liquidation Distribution in respect of, the
Trust Securities, as applicable, shall be made, subject to Section 4.2(e), pro
rata among the Common Securities and the Capital Securities based on the
Liquidation Amount; provided, however, that if on any Distribution Date,
Redemption Date or Liquidation Date any Event of Default resulting from a
Debenture Event of Default specified in Section 501(1) or 501(2) of the
Indenture shall have occurred and be continuing, no payment of any Distribution
(including any Additional Amounts) on, Redemption Price of, or Liquidation
Distribution in respect of, any Common Security, and no other payment on account
of the redemption, liquidation or other acquisition of Common Securities, shall
be made unless payment in full in cash of all accumulated and unpaid
Distributions (including any Additional Amounts) on all Outstanding Capital
Securities for all Distribution Periods terminating on or prior thereto, or in
the case of payment of the Redemption Price the full amount of such Redemption
Price on all Outstanding Capital Securities then called for redemption, or in
the case of payment of the Liquidation Distribution the full amount of such
Liquidation

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Distribution on all Outstanding Capital Securities, shall have been made or
provided for, and all funds immediately available to the Property Trustee shall
first be applied to the payment in full in cash of all Distributions (including
any Additional Amounts) on, or the Redemption Price of, the Capital Securities
then due and payable.

          (b) In the case of the occurrence of any Event of Default resulting
from any Debenture Event of Default, the Holders of the Common Securities shall
have no right to act with respect to any such Event of Default under this Trust
Agreement until the effect of all such Events of Default with respect to the
Capital Securities have been cured, waived or otherwise eliminated. Until all
such Events of Default under this Trust Agreement with respect to the Capital
Securities have been so cured, waived or otherwise eliminated, the Property
Trustee shall act solely on behalf of the Holders of the Capital Securities and
not on behalf of the Holders of the Common Securities, and only the Holders of
the Capital Securities will have the right to direct the Property Trustee to act
on their behalf.

     Section 4.4. Payment Procedures.

          Payments of Distributions (including any Additional Amounts) in
respect of the Capital Securities shall, subject to the next succeeding
sentence, be made by check mailed to the address of the Person entitled thereto
as such address shall appear on the Securities Register or, if the Capital
Securities are held by a Clearing Agency, such Distributions shall be made to
the Clearing Agency in immediately available funds. A Holder of $1,000,000 or
more in aggregate Liquidation Amount of Capital Securities may receive payments
of Distributions (including any Additional Amounts) by wire transfer of
immediately available funds upon written request to the Property Trustee not
later than the 15th day, whether or not a Business Day, of the month immediately
preceding the relevant Distribution Date; provided, however, that payment of
Distributions to the Initial Purchaser shall be made by wire transfer in
immediately available funds to the account designated in writing by the Initial
Purchaser unless otherwise instructed by the Initial Purchaser by written
request to the Property Trustee not later than the 15th day, whether or not a
Business Day, of the month immediately preceding the relevant Distribution Date.
Payments in respect of the Common Securities shall be made in such manner as
shall be mutually agreed between the Property Trustee and the Holders of the
Common Securities.

     Section 4.5. Tax Returns and Reports.

          The Administrative Trustees shall prepare (or cause to be prepared),
at the Depositor's expense, and file all United States federal, Commonwealth of
Puerto Rico and any other state and local tax and information returns and
reports required to be filed by or in respect of the Issuer Trust. In this
regard, the Administrative Trustees shall (a) prepare and file (or cause to be
prepared and filed) all Internal Revenue Service and Puerto Rico Treasury
Department forms required to be filed in respect of the Issuer Trust in each
taxable year of the Issuer Trust, and (b) prepare and furnish (or cause to be
prepared and furnished) to each Holder all Internal Revenue Service or Puerto
Rico Treasury Department forms required to be provided by the Issuer Trust. The
Administrative Trustees shall provide the Depositor and the Property Trustee
with a copy of all such returns and reports promptly after such filing or
furnishing. The Issuer Trustees shall comply with United States federal and
Puerto Rico withholding and backup withholding tax laws and information
reporting requirements with respect to any payments to Holders under the Trust
Securities.

     Section 4.6. Payment of Expenses of the Issuer Trust.

          The Depositor shall pay to the Issuer Trust, and reimburse the Issuer
Trust for, the full amount of any costs, expenses or liabilities of the Issuer

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Trust (other than obligations of the Issuer Trust to pay the Holders of any
Capital Securities or other similar interests in the Issuer Trust the amounts
due such Holders pursuant to the terms of the Capital Securities or such other
similar interests, as the case may be), including, without limitation, any
taxes, duties or other governmental charges of whatever nature (other than
withholding taxes) imposed on the Issuer Trust by the United States or any other
taxing authority. Such payment obligation includes any such costs, expenses or
liabilities of the Issuer Trust that are required by applicable law to be
satisfied in connection with a dissolution of the Issuer Trust.

     Section 4.7. Payment of Taxes, Duties, Etc. of the Trust.

          Upon receipt under the Debentures of Additional Sums, the Property
Trustee shall promptly pay any taxes, duties or governmental charges of
whatsoever nature (other than withholding taxes) imposed on the Trust; provided,
however, that under no circumstances shall the Property Trustee have any
liability for such sums, including non-receipt of any Additional Sums under the
Debentures.

     Section 4.8. Payments under Indenture or Pursuant to Direct Actions.

          Any amount payable hereunder to any Holder of Capital Securities (or
any Owner with respect thereto) shall be reduced by the amount of any
corresponding payment such Holder (or Owner) has directly received pursuant to
Section 508 of the Indenture or Section 5.15 of this Trust Agreement.

                                    ARTICLE V
                          TRUST SECURITIES CERTIFICATES

     Section 5.1. Initial Ownership.

          Upon the formation of the Issuer Trust and the contribution by the
Depositor pursuant to Section 2.3 and until the issuance of the Trust
Securities, and at any time during which no Trust Securities are outstanding,
the Depositor shall be the sole beneficial owner of the Issuer Trust.

     Section 5.2. The Trust Securities Certificates.

          The Capital Securities Certificates shall be issued in minimum
denominations of $25 Liquidation Amount and integral multiples thereof, and the
Common Securities Certificates shall be issued in denominations of $25
Liquidation Amount and integral multiples thereof. The Trust Securities
Certificates shall be (i) executed on behalf of the Issuer Trust by manual or
facsimile signature of at least one Administrative Trustee and, if executed on
behalf of the Issuer Trust by facsimile, countersigned by the Securities
Registrar or its agent, (ii) authenticated by the Property Trustee by manual or
facsimile signature of an authorized signatory thereof and, if executed by such
authorized signatory of the Property Trustee by facsimile, countersigned by the
Securities Registrar or its agent, and (iii) and, until such time as otherwise
determined by the Depositor and the Property Trustee, bear the restricted
securities legend (the "Restricted Securities Legend"), substantially as set
forth in Section 5.5. The Capital Securities may have notations, legends or
endorsements required by law, stock exchange rules, agreements to which the
Depositor is subject, if any, or usage (provided that any such notation, legend
or endorsement is in a form acceptable to the Depositor).

          Trust Securities Certificates bearing the manual signatures of
individuals who were, at the time when such signatures shall have been affixed,
authorized to sign on behalf of the Issuer Trust or the Property Trustee or, if
executed on behalf of the Issuer Trust or the Property Trustee by facsimile,

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countersigned by the Securities Registrar or its agent, shall be validly issued
and entitled to the benefits of this Trust Agreement, notwithstanding that such
individuals or any of them shall have ceased to be so authorized prior to the
delivery of such Trust Securities Certificates or did not hold such offices at
the date of delivery of such Trust Securities Certificates. A transferee of a
Trust Securities Certificate shall become a Holder, and shall be entitled to the
rights and subject to the obligations of a Holder hereunder, upon due
registration of such Trust Securities Certificate in such transferee's name
pursuant to Section 5.4, Section 5.12 and Section 5.14.

     Section 5.3. Execution and Delivery of Trust Securities Certificates.

          At the Time of Delivery, the Administrative Trustees shall cause Trust
Securities Certificates, in an aggregate Liquidation Amount as provided in
Section 2.4 and Section 2.5, to be executed on behalf of the Issuer Trust and
delivered to or upon the written order of the Depositor, such written order
executed by one authorized officer thereof, without further corporate action by
the Depositor, in authorized denominations.

     Section 5.4. Registration of Transfer and Exchange of Capital Securities
Certificates.

          (a) The Depositor shall keep or cause to be kept, at the office or
agency maintained pursuant to Section 5.9, a register or registers for the
purpose of registering Trust Securities Certificates and transfers and exchanges
of Capital Securities Certificates (the "Securities Register") in which the
transfer agent and registrar designated by the Depositor (the "Securities
Registrar"), subject to such reasonable regulations as it may prescribe, shall
provide for the registration of Capital Securities Certificates and Common
Securities Certificates (subject to Section 5.11 in the case of the Common
Securities Certificates) and registration of transfers and exchanges of Capital
Securities Certificates as herein provided. Banco Santander Puerto Rico shall be
the initial Securities Registrar. The provisions of Section 8.1, Section 8.3 and
Section 8.6 herein shall apply to Banco Santander Puerto Rico in its role as
Securities Registrar, for so long as Banco Santander Puerto Rico shall act as
Securities Registrar.

          (b) Upon surrender for registration of transfer in compliance with the
provisions of Section 5.4 and Section 5.5 of any Capital Securities Certificate
at the office or agency maintained pursuant to Section 5.9, the Administrative
Trustees or any one of them shall execute on behalf of the Issuer Trust (and if
executed on behalf of the Issuer Trust by a facsimile signature, such
certificate shall be countersigned by the Securities Registrar or its agent) and
deliver, in the name of the designated transferee or transferees, one or more
new Capital Securities Certificates in authorized denominations of a like
aggregate Liquidation Amount dated the date of execution by such Administrative
Trustee or Trustees. The Securities Registrar shall not be required to register
the transfer of any Capital Securities that have been called for redemption
during a period beginning at the opening of business 15 days before the day of
selection for such redemption.

          (c) At the option of a Holder, Capital Securities Certificates may be
exchanged for other Capital Securities Certificates in authorized denominations
of the same class and of a like aggregate Liquidation Amount upon surrender of
the Capital Securities Certificates to be exchanged at the office or agency
maintained pursuant to Section 5.9.

          (d) Every Capital Securities Certificate presented or surrendered for
registration of transfer or exchange shall be accompanied by a written

                                       20

<PAGE>

instrument of transfer in form satisfactory to an Administrative Trustee and the
Securities Registrar duly executed by the Holder or his attorney duly authorized
in writing. Each Capital Securities Certificate surrendered for registration of
transfer or exchange shall be canceled and subsequently disposed of by an
Administrative Trustee or the Securities Registrar in accordance with such
Person's customary practice.

          (e) The Securities Registrar will refuse to register any transfer of
Capital Securities that is not made in accordance with the provisions of the
Restricted Securities Legend (as described in Section 5.5) and the provisions of
Rule 144A or pursuant to a registration statement that has been declared
effective under the Securities Act or pursuant to an available exemption from
the registration requirements of the Securities Act; provided that the
provisions of this paragraph shall not be applicable to any Capital Securities
that do not bear any Restricted Securities Legend.

          (f) No service charge shall be made for any registration of transfer
or exchange of Capital Securities Certificates, but the Securities Registrar may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Capital Securities
Certificates.

     Section 5.5. Transfer Procedures and Restrictions.

          (a) Except in connection with a registration statement contemplated by
and in accordance with the terms of the Registration Rights Agreement relating
to the Capital Securities (the "Registrable Securities"), if Capital Securities
are issued upon the transfer, exchange or replacement of Capital Securities
bearing the Restricted Securities Legend, or if a request is made to remove such
Restricted Securities Legend on Capital Securities, the Capital Securities so
issued shall bear the Restricted Securities Legend and the Restricted Securities
Legend shall not be removed unless there is delivered to the Depositor, the
Issuer Trust and the Securities Registrar such satisfactory evidence, which may
include an Opinion of Counsel, as may be reasonably required by the Depositor,
the Issuer Trustee or the Securities Registrar, that neither the legend nor the
restrictions on transfer set forth therein are required to ensure that transfers
thereof comply with the provisions of the Securities Act or that such Capital
Securities are not "restricted securities" within the meaning of Rule 144 under
the Securities Act. Upon provision of such satisfactory evidence, the Registrar,
at the direction of the Depositor, shall countersign and deliver Capital
Securities that do not bear the Restricted Securities Legend.

          (b) Except as permitted by Section 5.5(a), each Capital Security shall
bear a Restricted Securities Legend in substantially the following form:

     "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "SECURITIES ACT"), OR UNDER THE PUERTO RICO UNIFORM SECURITIES
     ACT OR ANY OTHER STATE OR COMMONWEALTH OF PUERTO RICO SECURITIES LAWS.
     NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
     REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
     DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
     IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT.

     THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF
     SANTANDER BANCORP THAT (a) THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR
     OTHERWISE TRANSFERRED OTHER THAN (1) TO SANTANDER BANCORP OR A SUBSIDIARY
     THEREOF OR TO THE TRUST, (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM
     REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
     (3) SO LONG AS

                                       21

<PAGE>

     THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
     SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY
     BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
     PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
     INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR
     OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (4) TO A "NON U.S.
     PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO REGULATION S UNDER THE
     SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
     SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF
     SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
     THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF
     SUCH AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
     TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
     OF THE SECURITIES ACT, OR (6) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
     REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (5)
     OR (6), TO THE RECEIPT BY SANTANDER BANCORP AND THE TRUST OF AN OPINION OF
     COUNSEL OR SUCH OTHER EVIDENCE ACCEPTABLE TO SANTANDER BANCORP AND THE
     TRUST THAT SUCH RESALE, PLEDGE OR TRANSFER IS EXEMPT FROM THE REGISTRATION
     REQUIREMENTS OF THE SECURITIES ACT OR (7) PURSUANT TO AN EFFECTIVE
     REGISTRATION STATEMENT AND THAT (b) THE HOLDER WILL, AND EACH SUBSEQUENT
     HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY OF THE RESALE
     RESTRICTIONS REFERRED TO IN THE AMENDED AND RESTATED DECLARATION OF TRUST
     AND DELIVER TO THE TRANSFEREE (OTHER THAN A QUALIFIED INSTITUTIONAL BUYER)
     PRIOR TO THE SALE A COPY OF THE TRANSFER RESTRICTIONS APPLICABLE HERETO
     (COPIES OF WHICH MAY BE OBTAINED FROM SANTANDER BANCORP).

     THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION
     RIGHTS AGREEMENT DATED AS OF FEBRUARY 28, 2006 AND, BY ITS ACCEPTANCE
     HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH
     REGISTRATION RIGHTS AGREEMENT.

     IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
     AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE
     REQUIRED BY THE DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
     FOREGOING RESTRICTIONS."

     Section 5.6. Mutilated, Destroyed, Lost or Stolen Trust Securities
Certificates.

          If (a) any mutilated Trust Securities Certificate shall be surrendered
to the Securities Registrar, or if the Securities Registrar shall receive
evidence to its satisfaction of the destruction, loss or theft of any Trust
Securities Certificate, and (b) there shall be delivered to the Securities
Registrar and the Administrative Trustees such security or indemnity as may be
required by them to save each of them harmless, then in the absence of notice
that such Trust Securities Certificate shall have been acquired by a bona fide
purchaser, the Administrative Trustees, or any one of them, on behalf of the
Issuer Trust shall execute and make available for delivery, in exchange for or
in lieu of any such mutilated, destroyed, lost or stolen Trust Securities
Certificate, a new Trust Securities Certificate of like class, tenor and
denomination. In connection with the issuance of any new Trust Securities
Certificate under this Section 5.6, the Administrative Trustees or the
Securities Registrar may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection therewith.
Any duplicate Trust Securities Certificate issued pursuant to this Section shall
constitute conclusive evidence of an undivided beneficial interest in the assets
of the Issuer Trust corresponding to that evidenced by the lost, stolen or
destroyed

                                       22

<PAGE>

Trust Securities Certificate, as if originally issued, whether or not the lost,
stolen or destroyed Trust Securities Certificate shall be found at any time.

     Section 5.7. Persons Deemed Holders.

          The Issuer Trustees and the Securities Registrar shall each treat the
Person in whose name any Trust Securities Certificate shall be registered in the
Securities Register as the owner of such Trust Securities Certificate for the
purpose of receiving Distributions and for all other purposes whatsoever, and
none of the Issuer Trustees, the Administrative Trustees and the Securities
Registrar shall be bound by any notice to the contrary.

     Section 5.8. Access to List of Holders' Names and Addresses.

          Each Holder and each Owner shall be deemed to have agreed not to hold
the Depositor, the Property Trustee, the Delaware Trustee or the Administrative
Trustees accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

     Section 5.9. Maintenance of Office or Agency.

          The Administrative Trustees shall designate an office or offices or
agency or agencies where Capital Securities Certificates may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Issuer Trustees in respect of the Trust Securities Certificates may be
served. The Administrative Trustees initially designate the Corporate Trust
Office of the Property Trustee, as its office and agency for such purposes. The
Administrative Trustee shall give prompt written notice to the Depositor, the
Property Trustees and to the Holders of any change in the location of the
Securities Register or any such office or agency.

     Section 5.10. Appointment of Paying Agent.

          The Paying Agent shall make Distributions to Holders from the Payment
Account and shall report the amounts of such Distributions to the Property
Trustee and the Administrative Trustees. Any Paying Agent shall have the
revocable power to withdraw funds from the Payment Account solely for the
purpose of making the Distributions referred to above. The Property Trustee may
revoke such power and remove the Paying Agent in its sole discretion. The Paying
Agent shall initially be Banco Santander Puerto Rico. Any Person acting as
Paying Agent shall be permitted to resign as Paying Agent upon 30 days' written
notice to the Administrative Trustees and the Property Trustee. If Banco
Santander Puerto Rico shall no longer be the Paying Agent or a successor Paying
Agent shall resign or its authority to act be revoked, the Administrative
Trustees shall appoint a successor (which shall be a bank or trust company) that
is reasonably acceptable to the Property Trustee and the Depositor to act as
Paying Agent. Such successor Paying Agent or any additional Paying Agent shall
execute and deliver to the Issuer Trustees an instrument in which such successor
Paying Agent or additional Paying Agent shall agree with the Issuer Trustees
that as Paying Agent, such successor Paying Agent or additional Paying Agent
will hold all sums, if any, held by it for payment to the Holders in trust for
the benefit of the Holders entitled thereto until such sums shall be paid to
such Holders. The Paying Agent shall return all unclaimed funds to the Property
Trustee and upon removal of a Paying Agent such Paying Agent shall also return
all funds in its possession to the Property Trustee. The provisions of Section
8.1, Section 8.3 and Section 8.6 herein shall apply to Banco Santander Puerto
Rico in its role as Paying Agent, for so long as Banco Santander Puerto Rico
shall act as Paying Agent and, to the extent applicable, to any other paying
agent appointed hereunder. Any reference in this Agreement to the Paying Agent
shall include any co-paying agent unless the context requires otherwise.

                                       23

<PAGE>

     Section 5.11. Ownership of Common Securities by Depositor.

          At the Time of Delivery, the Depositor shall acquire, and thereafter
shall retain, beneficial and record ownership of the Common Securities. To the
fullest extent permitted by law, other than a transfer in connection with a
consolidation or merger of the Depositor into another Person, or any conveyance,
transfer or lease by the Depositor of its properties and assets substantially as
an entirety to any Person, pursuant to Section 801 of the Indenture, any
attempted transfer of the Common Securities shall be void. The Administrative
Trustees shall cause each Common Securities Certificate issued to the Depositor
to contain a legend consistent with this Section 5.11.

     Section 5.12. Capital Securities Certificates; Common Securities
Certificate.

          (a) The Capital Securities Certificates, upon original issuance, will
be issued in the form of a Definitive Capital Securities Certificate.

          (b) At the request of a Holder in connection with the registration of
the Capital Securities under the Securities Act under the terms of the
Registration Rights Agreement, and with the consent of the Depositor, the
Administrative Trustees shall take such action reasonably required to exchange
the Definitive Capital Certificates for Capital Securities Certificates issued
in the form of a typewritten Capital Securities Certificate or Certificates
representing Book-Entry Capital Securities Certificates, to be delivered to, or
on behalf of, DTC, the initial Clearing Agency, by, or on behalf of, the Issuer
Trust. Such Capital Securities Certificate or Certificates shall initially be
registered on the Securities Register in the name of Cede & Co., the nominee of
the initial Clearing Agency, and, thereafter, no Owner will receive a Definitive
Capital Securities Certificate representing such Owner's interest in such
Capital Securities, except as provided in Section 5.14. If the Capital
Securities Certificates have been issued to Owners pursuant to Section 5.14(a):

               (i) the provisions of this Section 5.12(a) shall be in full force
     and effect;

               (ii) the Securities Registrar and the Issuer Trustees shall be
     entitled to deal with the Clearing Agency for all purposes of this Trust
     Agreement relating to the Book-Entry Capital Securities Certificates
     (including the payment of the Liquidation Amount of and Distributions on
     the Capital Securities evidenced by Book-Entry Capital Securities
     Certificates and the giving of instructions or directions to Owners of
     Capital Securities evidenced by Book-Entry Capital Securities Certificates)
     as the sole Holder of Capital Securities evidenced by Book-Entry Capital
     Securities Certificates and shall have no obligations to the Owners
     thereof;

               (iii) to the extent that the provisions of this Section 5.12(a)
     conflict with any other provisions of this Trust Agreement, the provisions
     of this Section 5.12(a) shall control; and

               (iv) the rights of the Owners of the Book-Entry Capital
     Securities Certificate shall be exercised only through the Clearing Agency
     and shall be limited to those established by law and agreements between
     such Owners and the Clearing Agency and/or the Clearing Agency
     Participants. Pursuant to the Certificate Depository Agreement, unless and
     until Definitive Capital Securities Certificates are issued pursuant to
     Section 5.14, the initial Clearing Agency will make book-entry transfers
     among the Clearing Agency Participants and receive and transmit payments on
     the Capital Securities to such Clearing Agency Participants.

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<PAGE>

          (c) A single Common Securities Certificate representing the Common
Securities shall be issued to the Depositor in the form of a definitive Common
Securities Certificate.

     Section 5.13. Notices to Clearing Agency.

          To the extent that a notice or other communication to the Holders is
required under this Trust Agreement, for so long as Capital Securities are
represented by a Book-Entry Capital Securities Certificates, the Administrative
Trustees and the Issuer Trustee shall give all such notices and communications
specified herein to be given to the Clearing Agency, and shall have no
obligations to the Owners.

     Section 5.14. Definitive Capital Securities Certificates.

          If the Capital Securities are no longer evidenced by Definitive
Capital Securities Certificates pursuant to Section 5.12(b) and have been
exchanged for Book-Entry Capital Securities Certificates, and if (a) the
Depositor advises the Issuer Trustees in writing that the Clearing Agency is no
longer willing or able to properly discharge its responsibilities with respect
to the Capital Securities Certificates, and the Depositor is unable to locate a
qualified successor, (b) the Depositor at its option advises the Issuer Trustees
in writing that it elects to terminate the book-entry system through the
Clearing Agency or (c) after the occurrence of a Debenture Event of Default,
Owners of Capital Securities Certificates representing beneficial interests
aggregating at least a majority of the Liquidation Amount advise the
Administrative Trustees in writing that the continuation of a book-entry system
through the Clearing Agency is no longer in the best interest of the Owners of
Capital Securities Certificates, then the Administrative Trustees shall notify
the other Issuer Trustees and the Clearing Agency, and the Clearing Agency, in
accordance with its customary rules and procedures, shall notify all Clearing
Agency Participants for whom it holds Capital Securities of the occurrence of
any such event and of the availability of the Definitive Capital Securities
Certificates to Owners of such class or classes, as applicable, requesting the
same. Upon surrender to the Administrative Trustees of the typewritten Capital
Securities Certificate or Certificates representing the Book-Entry Capital
Securities Certificates by the Clearing Agency, accompanied by registration
instructions, the Administrative Trustees, or any one of them, shall execute the
Definitive Capital Securities Certificates in accordance with the instructions
of the Clearing Agency, if executed on behalf of the Issuer Trust by facsimile,
countersigned by the Securities Registrar or its agent. Neither the Securities
Registrar nor the Trustees shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Capital Securities
Certificates, the Issuer Trustees shall recognize the Holders of the Definitive
Capital Securities Certificates as holders of Trust Securities. The Definitive
Capital Securities Certificates shall be typewritten, printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrative Trustees that meets the requirements of any stock exchange or
automated quotation system on which the Capital Securities are then listed or
approved for trading, as evidenced by the execution thereof by the
Administrative Trustees or any one of them.

     Section 5.15. Rights of Holders; Waivers of Past Defaults.

          (a) The legal title to the Trust Property is vested exclusively in the
Property Trustee (in its capacity as such) in accordance with Section 2.9, and
the Holders shall not have any right or title therein other than the undivided
beneficial interest in the assets of the Issuer Trust conferred by their Trust
Securities and they shall have no right to call for any partition or division of
property, profits or rights of the Issuer Trust except as described

                                       25

<PAGE>

below. The Trust Securities shall be personal property giving only the rights
specifically set forth therein and in this Trust Agreement. The Trust Securities
shall have no preemptive or similar rights and when issued and delivered to
Holders against payment of the purchase price therefor will be fully paid and,
to the fullest extent permitted by applicable law, nonassessable by the Issuer
Trust. The Holders of the Trust Securities, in their capacities as such, shall
be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware.

          (b) For so long as any Capital Securities remain Outstanding, if, upon
a Debenture Event of Default, the Debenture Trustee fails or the holders of not
less than 25% in principal amount of the outstanding Debentures fail to declare
the principal of all of the Debentures to be immediately due and payable as set
forth in the Indenture, the Property Trustee or the Holders of at least 25% in
Liquidation Amount of the Capital Securities then Outstanding shall have the
right to make such declaration by a notice in writing to the Depositor, the
Debenture Trustee and the Property Trustee, in the case of notice by the Holders
of the Capital Securities, or to the Depositor, the Debenture Trustee and the
Holders of the Capital Securities, in the case of notice by the Property
Trustee; and upon any such declaration such principal amount and the accrued
interest on all of the Debentures shall become immediately due and payable,
provided that the payment of principal, interest and premium, if any, on such
Debentures shall remain subordinated to the extent provided in the Indenture.

               At any time after a declaration of acceleration with respect to
the Debentures has been made and before a judgment or decree for payment of the
money due has been obtained by the Debenture Trustee as in the Indenture
provided, the Holders of at least a Majority in Liquidation Amount of the
Capital Securities, by written notice to the Property Trustee, the Depositor and
the Debenture Trustee, may rescind and annul such declaration and its
consequences if:

               (i) the Depositor has paid or deposited with the Debenture
     Trustee a sum sufficient to pay

                    (A) all overdue installments of interest on all of the
          Debentures,

                    (B) any accrued Additional Interest (as defined in the
          Indenture) on all of the Debentures,

                    (C) the principal of (and premium, if any, on) any
          Debentures that have become due otherwise than by such declaration of
          acceleration and interest and Additional Interest (as defined in the
          Indenture) thereon at the rate borne by the Debentures, and

                    (D) all sums paid or advanced by the Debenture Trustee under
          the Indenture and the reasonable compensation, expenses, disbursements
          and advances of the Debenture Trustee and the Property Trustee, their
          agents and counsel; and

               (ii) all Events of Default with respect to the Debentures, other
     than the non-payment of the principal of the Debentures that has become due
     solely by such acceleration, have been cured or waived as provided in
     Section 513 of the Indenture.

               The Holders of at least a Majority in Liquidation Amount of the
Capital Securities may, on behalf of the Holders of all the Capital Securities,
waive any past default under the Indenture, except a default in the payment of
principal or interest (unless such default has been cured and a sum sufficient
to

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<PAGE>

pay all matured installments of interest and principal due otherwise than by
acceleration has been deposited with the Debenture Trustee) or a default in
respect of a covenant or provision that under the Indenture cannot be modified
or amended without the consent of the holder of each outstanding Debenture. No
such rescission shall affect any subsequent default or impair any right
consequent thereon.

               Upon receipt by the Property Trustee of written notice declaring
such an acceleration, or rescission and annulment thereof, by Holders of any
part of the Capital Securities a record date shall be established for
determining Holders of Outstanding Capital Securities entitled to join in such
notice, which record date shall be at the close of business on the day the
Property Trustee receives such notice. The Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to join in
such notice, whether or not such Holders remain Holders after such record date;
provided that, unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day that is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 5.15(b).

          (c) For so long as any Capital Securities remain Outstanding, to the
fullest extent permitted by law and subject to the terms of this Trust Agreement
and the Indenture, upon a Debenture Event of Default specified in Section 501(1)
or 501(2) of the Indenture, any Holder of Capital Securities shall have the
right to institute a proceeding directly against the Depositor, pursuant to
Section 508 of the Indenture, for enforcement of payment to such Holder of any
amounts payable in respect of Debentures having an aggregate principal amount
equal to the aggregate Liquidation Amount of the Capital Securities of such
Holder (a "Direct Action"). Except as set forth in Section 5.15(b) and this
Section 5.15(c), the Holders of Capital Securities shall have no right to
exercise directly any right or remedy available to the holders of, or in respect
of, the Debentures.

          (d) Except as otherwise provided in paragraphs (a), (b) and (c) of
this Section 5.15(b), the Holders of at least a Majority in Liquidation Amount
of the Capital Securities may, on behalf of the Holders of all the Capital
Securities, waive any past default or Event of Default and its consequences.
Upon such waiver, any such default or Event of Default shall cease to exist, and
any default or Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Trust Agreement, but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any
right consequent thereon.

     Section 5.16. CUSIP Numbers.

          The Administrative Trustees in issuing the Capital Securities may use
"CUSIP" numbers (if then generally in use), and, if so, the Property Trustee
shall use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Capital Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Capital Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.

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<PAGE>

The Administrative Trustees will promptly notify the Property Trustee of any
change in the CUSIP numbers.

                                   ARTICLE VI
                        ACTS OF HOLDERS; MEETINGS; VOTING

     Section 6.1. Limitations on Voting Rights.

          (a) Except as expressly provided in this Trust Agreement and in the
Indenture and as otherwise required by law, no Holder of Capital Securities
shall have any right to vote or in any manner otherwise control the
administration, operation and management of the Issuer Trust or the obligations
of the parties hereto, nor shall anything herein set forth, or contained in the
terms of the Trust Securities Certificates, be construed so as to constitute the
Holders from time to time as partners or members of an association.

          (b) So long as any Debentures are held by the Property Trustee on
behalf of the Issuer Trust, the Issuer Trustees shall not (i) direct the time,
method and place of conducting any proceeding for any remedy available to the
Debenture Trustee, or execute any trust or power conferred on the Debenture
Trustee with respect to the Debentures, (ii) waive any past default that may be
waived under Section 513 of the Indenture, (iii) exercise any right to rescind
or annul a declaration that the principal of all the Debentures shall be due and
payable, or (iv) consent to any amendment, modification or termination of the
Indenture or the Debentures, where such consent shall be required, without, in
each case, obtaining the prior approval of the Holders of at least a Majority in
Liquidation Amount of the Capital Securities, provided, however, that where a
consent under the Indenture would require the consent of each holder of
Debentures affected thereby, no such consent shall be given by the Property
Trustee without the prior written consent of each Holder of Capital Securities.
The Property Trustee shall not revoke any action previously authorized or
approved by a vote of the Holders of the Capital Securities, except by a
subsequent vote of the Holders of the Capital Securities. The Property Trustee
shall notify all Holders of the Capital Securities of any notice of default
received with respect to the Debentures. In addition to obtaining the foregoing
approvals of the Holders of the Capital Securities, prior to taking any of the
foregoing actions, the Issuer Trustees shall, at the expense of the Depositor,
obtain an Opinion of Counsel experienced in such matters to the effect that such
action shall not cause the Issuer Trust to be taxable as a corporation or
classified as other than a grantor trust for United States federal or Puerto
Rico income tax purposes.

          (c) If any proposed amendment to the Trust Agreement provides for, or
the Issuer Trustees otherwise propose to effect, (i) any action that would
adversely affect in any material respect the powers, preferences or special
rights of the Capital Securities, whether by way of amendment to the Trust
Agreement or otherwise, or (ii) the dissolution and winding-up of the Issuer
Trust, other than pursuant to the terms of this Trust Agreement, then the
Holders of Outstanding Capital Securities as a class will be entitled to vote on
such amendment or proposal and such amendment or proposal shall not be effective
except with the approval of the Holders of at least a Majority in Liquidation
Amount of the Capital Securities. Notwithstanding any other provision of this
Trust Agreement, no amendment to this Trust Agreement may be made if, as a
result of such amendment, it would cause the Issuer Trust to be taxable as a
corporation or classified as other than a grantor trust for United States
federal or Puerto Rico income tax purposes.

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<PAGE>

     Section 6.2. Notice of Meetings.

          Notice of all meetings of the Holders of the Capital Securities,
stating the time, place and purpose of the meeting, shall be given by the
Property Trustee pursuant to Section 10.8 to each Holder of Capital Securities,
at such Holder's registered address, at least 15 days and not more than 90 days
before the meeting. At any such meeting, any business properly before the
meeting may be so considered whether or not stated in the notice of the meeting.
Any adjourned meeting may be held as adjourned without further notice.

     Section 6.3. Meetings of Holders of the Capital Securities.

          No annual meeting of Holders is required to be held. The Property
Trustee, however, shall call a meeting of the Holders of the Capital Securities
to vote on any matter upon the written request of the Holders of at least 25% in
aggregate Liquidation Amount of the Outstanding Capital Securities and the
Administrative Trustees or the Property Trustee may, at any time in their
discretion, call a meeting of the Holders of the Capital Securities to vote on
any matters as to which such Holders are entitled to vote.

          The Holders of at least a Majority in Liquidation Amount of the
Capital Securities, present in person or by proxy, shall constitute a quorum at
any meeting of the Holders of the Capital Securities.

          If a quorum is present at a meeting, an affirmative vote by the
Holders present, in person or by proxy, holding Capital Securities representing
at least a Majority in Liquidation Amount of the Capital Securities held by the
Holders present, either in person or by proxy, at such meeting shall constitute
the action of the Holders of the Capital Securities, unless this Trust Agreement
requires a greater number of affirmative votes.

     Section 6.4. Voting Rights.

          Holders shall be entitled to one vote for each $25 of Liquidation
Amount represented by their Outstanding Trust Securities in respect of any
matter as to which such Holders are entitled to vote.

     Section 6.5. Proxies, etc.

          At any meeting of Holders, any Holder entitled to vote thereat may
vote by proxy, provided that no proxy shall be voted at any meeting unless it
shall have been placed on file with the Property Trustee, or with such other
officer or agent of the Issuer Trust as the Property Trustee may direct, for
verification prior to the time at which such vote shall be taken. Pursuant to a
resolution of the Property Trustee, proxies may be solicited in the name of the
Property Trustee or one or more officers of the Property Trustee. Only Holders
of record shall be entitled to vote. When Trust Securities are held jointly by
several persons, any one of them may vote at any meeting in person or by proxy
in respect of such Trust Securities, but if more than one of them shall be
present at such meeting in person or by proxy, and such joint owners or their
proxies so present disagree as to any vote to be cast, such vote shall not be
received in respect of such Trust Securities. A proxy purporting to be executed
by or on behalf of a Holder shall be deemed valid unless challenged at or prior
to its exercise, and the burden of proving invalidity shall rest on the
challenger. No proxy shall be valid more than three years after its date of
execution.

     Section 6.6. Holder Action by Written Consent.

          Any action that may be taken by Holders at a meeting may be taken
without a meeting if Holders holding at least a Majority in Liquidation Amount
of all Capital Securities entitled to vote in respect of such action (or such
larger

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<PAGE>

proportion thereof as shall be required by any other provision of this Trust
Agreement) shall consent to the action in writing.

     Section 6.7. Record Date for Voting and Other Purposes.

          For the purposes of determining the Holders who are entitled to notice
of and to vote at any meeting or by written consent, or to participate in any
distribution on the Trust Securities in respect of which a record date is not
otherwise provided for in this Trust Agreement, or for the purpose of any other
action, the Administrative Trustees may from time to time fix a date, not more
than 90 days prior to the date of any meeting of Holders or the payment of a
Distribution or other action, as the case may be, as a record date for the
determination of the identity of the Holders of record for such purposes.

     Section 6.8. Acts of Holders.

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

          The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner that any Issuer Trustee receiving the same deems sufficient.

          The ownership of Trust Securities shall be proved by the Securities
Register.

          Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Trust Security shall bind every future Holder
of the same Trust Security and the Holder of every Trust Security issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof
in respect of anything done, omitted or suffered to be done by the Issuer
Trustees, or the Issuer Trust in reliance thereon, whether or not notation of
such action is made upon such Trust Security.

          Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Trust Security may do so with
regard to all or any part of the Liquidation Amount of such Trust Security or by
one or more duly appointed agents each of which may do so pursuant to such
appointment with regard to all or any part of such Liquidation Amount.

          If any dispute shall arise between the Holders and the Issuer Trustees
or among the Holders or the Issuer Trustees with respect to the authenticity,
validity or binding nature of any request, demand, authorization,

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<PAGE>

direction, consent, waiver or other Act of such Holder or Issuer Trustee under
this ARTICLE VI, then the determination of such matter by the Property Trustee
shall be conclusive with respect to such matter.

          A Holder may institute a legal proceeding directly against the
Depositor under the Guarantee to enforce its rights under the Guarantee without
first instituting a legal proceeding against the Guarantee Trustee (as defined
in the Guarantee), the Issuer Trust, any Issuer Trustee, or any person or
entity.

     Section 6.9. Inspection of Records.

          Upon reasonable notice to the Administrative Trustees and the Property
Trustee, the records of the Issuer Trust shall be open to inspection by Holders
during normal business hours for any purpose reasonably related to such Holder's
interest as a Holder.

                                   ARTICLE VII
                         REPRESENTATIONS AND WARRANTIES

     Section 7.1. Representations and Warranties of the Property Trustee and the
Delaware Trustee.

          The Property Trustee and the Delaware Trustee, each severally on
behalf of and as to itself, hereby represents and warrants for the benefit of
the Depositor and the Holders that:

          (a) the Property Trustee is a Commonwealth of Puerto Rico banking
corporation, duly organized, validly existing and in good standing under the
laws of the Commonwealth of Puerto Rico;

          (b) the Property Trustee has full corporate power, authority and legal
right to execute, deliver and perform its obligations under this Trust Agreement
and has taken all necessary action to authorize the execution, delivery and
performance by it of this Trust Agreement;

          (c) the Delaware Trustee is a banking corporation with its principal
place of business in the State of Delaware, duly organized, validly existing and
in good standing under the laws of the State of Delaware;

          (d) the Delaware Trustee has full corporate power, authority and legal
right to execute, deliver and perform its obligations under this Trust Agreement
and has taken all necessary action to authorize the execution, delivery and
performance by it of this Trust Agreement;

          (e) this Trust Agreement has been duly authorized, executed and
delivered by the Property Trustee and the Delaware Trustee and, assuming the due
authorization, execution and delivery hereof by, and the enforceability hereof
against, the other parties herero, constitutes the valid and legally binding
agreement of each of the Property Trustee and the Delaware Trustee enforceable
against each of them in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights and to general
equity principles;

          (f) the execution, delivery and performance of this Trust Agreement
have been duly authorized by all necessary corporate or other action on the part
of the Property Trustee and the Delaware Trustee and do not require any approval
of stockholders of the Property Trustee and the Delaware Trustee and such
execution, delivery and performance will not (i) violate the charter or by-laws
of the Property Trustee or the Delaware Trustee, (ii) violate any provision of,

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<PAGE>

or constitute, with or without notice or lapse of time, a default under, or
result in the creation or imposition of, any Lien on any properties included in
the Trust Property pursuant to the provisions of, any indenture, mortgage,
credit agreement, license or other agreement or instrument to which the Property
Trustee or the Delaware Trustee is a party or by which it is bound, or (iii)
violate any law, governmental rule or regulation of the Commonwealth of Puerto
Rico or the State of Delaware, as the case may be, governing the banking, trust
or general powers of the Property Trustee or the Delaware Trustee (as
appropriate in context) or any order, judgment or decree applicable to the
Property Trustee or the Delaware Trustee;

          (g) neither the authorization, execution or delivery by the Property
Trustee or the Delaware Trustee of this Trust Agreement nor the consummation of
any of the transactions by the Property Trustee or the Delaware Trustee (as the
case may be) contemplated herein requires the consent or approval of, the giving
of notice to, the registration with or the taking of any other action with
respect to any governmental authority or agency under any existing law of the
Commonwealth of Puerto Rico or the State of Delaware governing the banking,
trust or general powers of the Property Trustee or the Delaware Trustee (as
appropriate in context), other than the filing of the Certificate of Trust with
the Delaware Secretary of State; and

          (h) there are no proceedings pending or, to the best of each of the
Property Trustee's and the Delaware Trustee's knowledge, threatened against or
affecting the Property Trustee or the Delaware Trustee in any court or before
any governmental authority, agency or arbitration board or tribunal that,
individually or in the aggregate, would materially and adversely affect the
Issuer Trust or would question the right, power and authority of the Property
Trustee or the Delaware Trustee, as the case may be, to enter into or perform
its obligations as one of the Trustees under this Trust Agreement.

     Section 7.2. Representations and Warranties of Depositor.

          The Depositor hereby represents and warrants for the benefit of the
Holders that:

          (a) the Trust Securities Certificates issued at the Time of Delivery
on behalf of the Issuer Trust have been duly authorized and will have been duly
and validly executed, issued and delivered by the Issuer Trustees pursuant to
the terms and provisions of, and in accordance with the requirements of, this
Trust Agreement, and the Holders will be, as of such date, entitled to the
benefits of this Trust Agreement; and

          (b) there are no taxes, fees or other governmental charges payable by
the Issuer Trust (or the Issuer Trustees on behalf of the Issuer Trust) under
the laws of the State of Delaware or any political subdivision thereof in
connection with the execution, delivery and performance by any Issuer Trustee of
this Trust Agreement.

                                  ARTICLE VIII
                               THE ISSUER TRUSTEES

     Section 8.1. Certain Duties and Responsibilities.

          (a) The duties and responsibilities of the Issuer Trustees shall be as
provided by this Trust Agreement, subject to Section 10.10 hereof.
Notwithstanding the foregoing, no provision of this Trust Agreement shall
require any of the Issuer Trustees to expend or risk its or their own funds or
otherwise incur any financial liability in the performance of any of its or
their duties hereunder, or in the exercise of any of its or their rights or
powers, if it or

                                       32

<PAGE>

they shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it. Whether or not therein expressly so provided, every provision of this Trust
Agreement relating to the conduct or affecting the liability of or affording
protection to the Issuer Trustees shall be subject to the provisions of this
Section 8.1. To the extent that, at law or in equity, an Issuer Trustee has
duties and liabilities relating to the Issuer Trust or to the Holders, such
Issuer Trustee shall not be liable to the Issuer Trust or to any Holder for such
Issuer Trustee's good faith reliance on the provisions of this Trust Agreement.
The provisions of this Trust Agreement, to the extent that they restrict the
duties and liabilities of the Issuer Trustees otherwise existing at law or in
equity, are agreed by the Depositor and the Holders to replace such other duties
and liabilities of the Issuer Trustees.

          (b) All payments made by the Property Trustee or a Paying Agent in
respect of the Trust Securities shall be made only from the revenue and proceeds
from the Trust Property and only to the extent that there shall be sufficient
revenue or proceeds from the Trust Property to enable the Property Trustee or a
Paying Agent to make payments in accordance with the terms hereof. Each Holder,
by its acceptance of a Trust Security, agrees that it will look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Issuer Trustees are not
personally liable to such Holder for any amount distributable in respect of any
Trust Security or for any other liability in respect of any Trust Security. This
Section 8.1(b) does not limit the liability of the Issuer Trustees expressly set
forth elsewhere in this Trust Agreement or, in the case of the Property Trustee,
in the Trust Indenture Act.

          (c) The Property Trustee, before the occurrence of any Event of
Default and after the curing of all Events of Default that may have occurred,
shall undertake to perform only such duties as are specifically set forth in
this Trust Agreement (including pursuant to Section 10.10), and no implied
covenants shall be read into this Trust Agreement against the Property Trustee.
In the absence of bad faith on the part of the Property Trustee, the Property
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 Property Trustee and conforming to the requirements of this
Trust Agreement; but in the case of any such certificates or opinions that by
any provision hereof or of the Trust Indenture Act are specifically required to
be furnished to the Property Trustee, the Property Trustee shall be under a duty
to examine the same to determine whether or not they conform to the requirements
of this Trust Agreement.

          (d) If an Event of Default has occurred (that has not been cured or
waived pursuant to Section 5.15), the Property Trustee shall exercise such of
the rights and powers vested in it by this Trust Agreement, 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.

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

               (i) This subsection (e) shall not be deemed to limit the effect
     of subsection (c) of this Section;

               (ii) the Property Trustee shall not be liable for any error of
     judgment made in good faith by an authorized officer of the Property
     Trustee, unless it shall be proved that the Property Trustee was negligent
     in ascertaining the pertinent facts;

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<PAGE>

               (iii) the Property 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 at least a Majority in Liquidation
     Amount of the Capital Securities relating to the time, method and place of
     conducting any proceeding for any remedy available to the Property Trustee,
     or exercising any trust or power conferred upon the Property Trustee under
     this Trust Agreement;

               (iv) the Property Trustee's sole duty with respect to the
     custody, safe keeping and physical preservation of the Debentures and the
     Payment Account shall be to deal with such property in a similar manner as
     the Property Trustee deals with similar property for its own account,
     subject to the protections and limitations on liability afforded to the
     Property Trustee under this Trust Agreement and the Trust Indenture Act;

               (v) the Property Trustee shall not be liable for any interest on
     any money received by it except as it may otherwise agree with the
     Depositor; and money held by the Property Trustee need not be segregated
     from other funds held by it except in relation to the Payment Account
     maintained by the Property Trustee pursuant to Section 3.1 and except to
     the extent otherwise required by law;

               (vi) the Property Trustee shall not be responsible for monitoring
     the compliance by the Administrative Trustees or the Depositor with their
     respective duties under this Trust Agreement, nor shall the Property
     Trustee be liable for the default or misconduct of any other Issuer
     Trustee, the Administrative Trustees or the Depositor; and

               (vii) no provision of this Trust Agreement shall require the
     Property 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 Property 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
     Agreement or adequate indemnity against such risk or liability is not
     reasonably assured to it.

          (f) The Administrative Trustees and the Delaware Trustee shall not be
responsible for monitoring the compliance by the other Issuer Trustees or the
Depositor with their respective duties under this Trust Agreement, nor shall
either Administrative Trustee or the Delaware Trustee be liable for the default
or misconduct of any other Issuer Trustee or the Depositor.

     Section 8.2. Certain Notices.

          (a) Within ten days after the occurrence of any Event of Default
actually known to the Property Trustee, the Property Trustee shall transmit, in
the manner and to the extent provided in Section 10.8, notice of such Event of
Default to the Holders and the Administrative Trustees, unless such Event of
Default shall have been cured or waived.

          (b) Within five Business Days after the receipt of notice of the
Depositor's exercise of its right to defer the payment of interest on the
Debentures pursuant to the Indenture, the Property Trustee shall transmit, in
the manner and to the extent provided in Section 10.8, notice of such exercise
to the Holders and the Administrative Trustees, unless such exercise shall have
been revoked.

          (c) The Property Trustee shall not be deemed to have knowledge of any
Event of Default unless the Property Trustee shall have received written notice
or a Responsible Officer of the Property Trustee charged with the

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<PAGE>

administration of this Trust Agreement shall have obtained actual knowledge of
such Event of Default.

     Section 8.3. Certain Rights of Property Trustee.

          Subject to the provisions of Section 8.1:

          (a) the Property Trustee may rely and shall be protected in acting or
refraining from acting in good faith upon any resolution, Opinion of Counsel,
certificate, written representation of a Holder or transferee, certificate of
auditors or any other certificate, statement, instrument, opinion, report,
notice, request, consent, order, appraisal, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

          (b) if (i) in performing its duties under this Trust Agreement the
Property Trustee is required to decide between alternative courses of action,
(ii) in construing any of the provisions of this Trust Agreement the Property
Trustee finds the same ambiguous or inconsistent with any other provisions
contained herein, or (iii) the Property Trustee is unsure of the application of
any provision of this Trust Agreement, then, except as to any matter as to which
the Holders of the Capital Securities are entitled to vote under the terms of
this Trust Agreement, the Property Trustee shall deliver a notice to the
Depositor requesting the Depositor's opinion as to the course of action to be
taken and the Property Trustee shall take such action, or refrain from taking
such action, as the Property Trustee shall be instructed to take, or refrain
from taking, by the Depositor; provided, however, that if the Depositor fails to
deliver such opinion within ten Business Days after the Property Trustee has
delivered such notice, or such reasonably shorter period of time set forth in
such notice (which to the extent practicable shall not be less than two Business
Days), the Property Trustee shall take such action, or refrain from taking such
action, not inconsistent with this Trust Agreement, as the Property Trustee
shall deem advisable and in the best interests of the Holders, in which event
the Property Trustee shall have no liability except for its own bad faith,
negligence or willful misconduct;

          (c) any direction or act of the Depositor contemplated by this Trust
Agreement shall be sufficiently evidenced by an Officers' Certificate;

          (d) any direction or act of an Administrative Trustee contemplated by
this Trust Agreement shall be sufficiently evidenced by a certificate executed
by such Administrative Trustee and setting forth such direction or act;

          (e) the Property Trustee shall have no duty to see to any recording,
filing or registration of any instrument (including any financing or
continuation statement or any filing under tax or securities laws) or any
rerecording, refiling or re-registration thereof;

          (f) the Property Trustee may consult with counsel (which counsel may
be counsel to the Depositor or any of its Affiliates, and may include any of its
employees) and the advice of such counsel 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 reliance thereon and in accordance with
such advice; the Property Trustee shall have the right at any time to seek
instructions concerning the administration of this Trust Agreement from any
court of competent jurisdiction;

          (g) the Property Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Trust Agreement at the request or
direction of any of the Holders pursuant to this Trust Agreement, unless such
Holders shall have offered to the Property Trustee reasonable security or

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indemnity against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction;

          (h) the Property 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,
debenture, note or other evidence of indebtedness or other paper or document,
unless requested in writing to do so by one or more Holders, but the Property
Trustee may make such further inquiry or investigation into such facts or
matters as it may see fit;

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

          (j) whenever in the administration of this Trust Agreement the
Property Trustee shall deem it desirable to receive instructions with respect to
enforcing any remedy or right or taking any other action hereunder, the Property
Trustee (i) may request instructions from the Holders (which instructions may
only be given by the Holders of the same proportion in Liquidation Amount of the
Trust Securities as would be entitled to direct the Property Trustee under the
terms of the Trust Securities in respect of such remedy, right or action), (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 acting in
accordance with such instructions;

          (k) except as otherwise expressly provided by this Trust Agreement,
the Property Trustee shall not be under any obligation to take any action that
is discretionary under the provisions of this Trust Agreement; and

          (l) No provision of this Trust Agreement shall be deemed to impose any
duty or obligation on any Issuer 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 such Person 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 any Issuer Trustee shall be construed
to be a duty.

     Section 8.4. Issuer Trustees Not Responsible for Recitals or Issuance of
Securities.

          The recitals contained herein and in the Trust Securities Certificates
shall be taken as the statements of the Issuer Trust and the Depositor, and the
Issuer Trustees do not assume any responsibility for their correctness. The
Issuer Trustees shall not be accountable for the use or application by the
Depositor of the proceeds of the Debentures.

     Section 8.5. Issuer Trustees May Hold Securities.

          Any Issuer Trustee or any other agent of any Issuer Trustee or the
Issuer Trust, in its individual or any other capacity, may become the owner or
pledgee of Trust Securities and, subject to Section 8.8 and Section 8.13, and
except as provided in the definition of the term "Outstanding" in ARTICLE I, may
otherwise deal with the Issuer Trust with the same rights it would have if it
were not Issuer Trustee or such other agent.

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     Section 8.6. Compensation; Indemnity; Fees.

          The Depositor agrees:

          (a) to pay to the Issuer Trustees from time to time such reasonable
compensation for all services rendered by them hereunder as may be separately
agreed by the Depositor and the Issuer Trustees from time to time (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

          (b) except as otherwise expressly provided herein, to reimburse the
Issuer Trustees upon request for all reasonable expenses, disbursements and
advances incurred or made by the Issuer Trustees in accordance with any
provision of this Trust Agreement (including the reasonable compensation and the
expenses and disbursements of their agents and counsel), except any such
expense, disbursement or advance as may be attributable to their negligence, bad
faith or willful misconduct; and

          (c) to the fullest extent permitted by applicable law, to indemnify
and hold harmless (i) each Issuer Trustee, (ii) any Affiliate of any Issuer
Trustee, (iii) any officer, director, shareholder, employee, representative or
agent of any Issuer Trustee, and (iv) any employee or agent of the Issuer Trust
(referred to herein as an "Indemnified Person") from and against any loss,
damage, liability, tax, penalty, expense or claim of any kind or nature
whatsoever incurred by such Indemnified Person by reason of the creation,
operation or dissolution of the Issuer Trust or any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Issuer Trust
and in a manner such Indemnified Person reasonably believed to be within the
scope of authority conferred on such Indemnified Person by this Trust Agreement,
except that no Indemnified Person shall be entitled to be indemnified in respect
of any loss, damage or claim incurred by such Indemnified Person by reason of
negligence, bad faith or willful misconduct with respect to such acts or
omissions.

          The provisions of this Section 8.6 shall survive the termination of
this Trust Agreement and the removal or resignation of any Issuer Trustee.

          No Issuer Trustee may claim any Lien on any Trust Property as a result
of any amount due pursuant to this Section 8.6.

          The Depositor and any Issuer Trustee may engage in or possess an
interest in other business ventures of any nature or description, independently
or with others, similar or dissimilar to the business of the Issuer Trust, and
the Issuer Trust and the Holders of Trust Securities shall have no rights by
virtue of this Trust Agreement in and to such independent ventures or the income
or profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Issuer Trust, shall not be deemed wrongful
or improper. Neither the Depositor nor any Issuer Trustee shall be obligated to
present any particular investment or other opportunity to the Issuer Trust even
if such opportunity is of a character that, if presented to the Issuer Trust,
could be taken by the Issuer Trust, and the Depositor and any Issuer Trustee
shall have the right to take for its own account (individually or as a partner
or fiduciary) or to recommend to others any such particular investment or other
opportunity. Any Issuer Trustee may engage or be interested in any financial or
other transaction with the Depositor or any Affiliate of the Depositor, or may
act as depository for, trustee or agent for, or act on any committee or body of
holders of, securities or other obligations of the Depositor or its Affiliates.

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     Section 8.7. Corporate Property Trustee Required; Eligibility of Issuer
Trustees.

          (a) There shall at all times be a Property Trustee hereunder with
respect to the Trust Securities. The Property Trustee shall be a Person that is
a national, Puerto Rico or state chartered bank and eligible pursuant to the
Trust Indenture Act to act as such and that has a combined capital and surplus
of at least $50,000,000. If any such Person publishes reports of condition at
least annually, pursuant to law or to the requirements of its supervising or
examining authority, then for the purposes of this Section 8.7 and to the extent
permitted by the Trust Indenture Act, the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Property
Trustee with respect to the Trust Securities shall cease to be eligible in
accordance with the provisions of this Section 8.7, it shall resign immediately
in the manner and with the effect hereinafter specified in this ARTICLE VIII. At
the time of appointment, the Property Trustee must have securities rated in one
of the three highest rating categories by a nationally recognized statistical
rating organization.

          (b) There shall at all times be one or more Administrative Trustees
hereunder with respect to the Trust Securities. Each Administrative Trustee
shall be either a natural person who is at least 21 years of age or a legal
entity that shall act through one or more persons authorized to bind that
entity.

          (c) There shall at all times be a Delaware Trustee with respect to the
Trust Securities. The Delaware Trustee shall either be (i) a natural person who
is at least 21 years of age and a resident of the State of Delaware, or (ii) a
legal entity with its principal place of business in the State of Delaware and
that otherwise meets the requirements of applicable Delaware law and that shall
act through one or more persons authorized to bind such entity.

     Section 8.8. Conflicting Interests.

          (a) If the Property Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Property Trustee
shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the Trust Indenture Act and this
Trust Agreement.

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

     Section 8.9. Co-Trustees and Separate Trustee.

          Unless and until a Debenture Event of Default shall have occurred and
be continuing, at any time or times, for the purpose of meeting the legal
requirements of the Trust Indenture Act or of any jurisdiction in which any part
of the Trust Property may at the time be located, the Holder of Common
Securities and the Administrative Trustees shall have the power to appoint one
or more Persons either to act as co-trustee, jointly with the Property Trustee,
of all or any part of such Trust Property, or to the extent required by law to
act as separate trustee of any such property, in either case with such powers as
may be provided in the instrument of appointment, and to vest in such Person or
Persons in the capacity aforesaid, any property, title, right or power deemed
necessary or desirable, subject to the other provisions of this Section. If a
Debenture Event of Default shall have occurred and be continuing, the Property
Trustee shall have the sole power to so appoint such a co-trustee or separate
trustee, and upon the written request of the Property Trustee, the Depositor and
the Administrative Trustees shall for such purpose join with the Property
Trustee in

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<PAGE>

the execution, delivery, and performance of all instruments and agreements
necessary or proper to appoint, such co-trustee or separate trustee. Any
co-trustee or separate trustee appointed pursuant to this Section shall either
be (i) a natural person who is at least 21 years of age and a resident of the
United States or Puerto Rico, or (ii) a legal entity with its principal place of
business in the United States or Puerto Rico that shall act through one or more
persons authorized to bind such entity.

          Should any written instrument from the Depositor be required by any
co-trustee or separate trustee so appointed for more fully confirming to such
co-trustee or separate trustee such property, title, right, or power, any and
all such instruments shall, on request, be executed, acknowledged and delivered
by the Depositor.

          Every co-trustee or separate trustee shall, to the extent permitted by
law, but to such extent only, be appointed subject to the following terms,
namely:

          (a) All rights, powers, duties, and obligations hereunder in respect
of the custody of securities, cash and other personal property held by, or
required to be deposited or pledged with, the Property Trustee specified
hereunder shall be exercised solely by the Property Trustee and not by such
co-trustee or separate trustee.

          (b) The rights, powers, duties, and obligations hereby conferred or
imposed upon the Property Trustee in respect of any property covered by such
appointment shall be conferred or imposed upon and exercised or performed by the
Property Trustee or by the Property Trustee and such co-trustee or separate
trustee jointly, as shall be provided in the instrument appointing such
co-trustee or separate trustee, except to the extent that under any law of any
jurisdiction in which any particular act is to be performed, the Property
Trustee shall be incompetent or unqualified to perform such act, in which event
such rights, powers, duties and obligations shall be exercised and performed by
such co-trustee or separate trustee.

          (c) The Property Trustee at any time, by an instrument in writing
executed by it, with the written concurrence of the Depositor, may accept the
resignation of or remove any co-trustee or separate trustee appointed under this
Section 8.9, and, in case a Debenture Event of Default has occurred and is
continuing, the Property Trustee shall have power to accept the resignation of,
or remove, any such co-trustee or separate trustee without the concurrence of
the Depositor. Upon the written request of the Property Trustee, the Depositor
shall join with the Property Trustee in the execution, delivery and performance
of all instruments and agreements necessary or proper to effectuate such
resignation or removal. A successor to any co-trustee or separate trustee so
resigning or removed may be appointed in the manner provided in this Section
8.9.

          (d) No co-trustee or separate trustee hereunder shall be personally
liable by reason of any act or omission of the Property Trustee or any other
trustee hereunder.

          (e) The Property Trustee shall not be liable by reason of any act of a
co-trustee or separate trustee.

          (f) Any Act of Holders delivered to the Property Trustee shall be
deemed to have been delivered to each such co-trustee and separate trustee.

     Section 8.10. Resignation and Removal; Appointment of Successor.

          No resignation or removal of any Issuer Trustee (the "Relevant
Trustee") and no appointment of a successor Issuer Trustee pursuant to this

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<PAGE>

ARTICLE VIII shall become effective until the acceptance of appointment by the
successor Issuer Trustee in accordance with the applicable requirements of
Section 8.11.

          Subject to the immediately preceding paragraph, the Relevant Trustee
may resign at any time by giving written notice thereof to the Holders. If the
instrument of acceptance by the successor Issuer Trustee required by Section
8.11 shall not have been delivered to the Relevant Trustee within 60 days after
the giving of such notice of resignation, the Relevant Trustee may petition, at
the expense of the Depositor, in the case of the Property Trustee, any court of
competent jurisdiction for the appointment of a successor Relevant Trustee.

          The Administrative Trustees, or any of them, may be removed at any
time by Act of the Holders of Common Securities delivered to the Relevant
Trustee.

          The Property Trustee or the Delaware Trustee, or both of them, may be
removed by Act of the Holders of at least a Majority in Liquidation Amount of
the Capital Securities, delivered to the Relevant Trustee (in its individual
capacity and, in the case of the Property Trustee, on behalf of the Issuer
Trust) (i) for cause (including upon the occurrence of an Event of Default
described in subparagraph (d) of the definition thereof with respect to the
Relevant Trustee), or (ii) at any time if a Debenture Event of Default shall
have occurred and be continuing. Unless and until a Debenture Event of Default
shall have occurred and be continuing, the Property Trustee or the Delaware
Trustee, or both of them, may be removed at any time by Act of the Holders of
the Common Securities.

          If any Issuer Trustee shall resign, be removed or become incapable of
acting as an Issuer Trustee, or if a vacancy shall occur in the office of any
Issuer Trustee for any cause, at any time when no Debenture Event of Default
shall have occurred and be continuing, the Holders of the Common Securities, by
Act of such Holders delivered to the Relevant Trustee, shall promptly appoint
such successor Issuer Trustee or Trustees, and the Relevant Trustee shall comply
with the applicable requirements of Section 8.11. If the Property Trustee or
Delaware Trustee shall resign, be removed or become incapable of acting as
Issuer Trustee, as the case may be and a Debenture Event of Default shall have
occurred and be continuing, the Holders of the Capital Securities, by Act of the
Holders of not less than 25% in aggregate Liquidation Amount of the Capital
Securities then Outstanding delivered to such Relevant Trustee, may appoint a
successor Relevant Trustee or Trustees, and such successor Issuer Trustee shall
comply with the applicable requirements of Section 8.11. If no successor
Relevant Trustee shall have been so appointed by the Holders of the Common
Securities or Capital Securities, as the case may be, and accepted appointment
in the manner required by Section 8.11, any Holder, on behalf of such Holder and
all others similarly situated, or any other Issuer Trustee, may petition any
court of competent jurisdiction for the appointment of a successor Relevant
Trustee.

          The Property Trustee shall give notice of each resignation and each
removal of an Issuer Trustee and each appointment of a successor Issuer Trustee
to all Holders in the manner provided in Section 10.8 and shall give notice to
the Depositor and to the Administrative Trustees. Each notice shall include the
name of the successor Relevant Trustee and the address of its Corporate Trust
Office if it is the Property Trustee.

          Notwithstanding the foregoing or any other provision of this Trust
Agreement, if any Delaware Trustee who is a natural person dies or becomes, in
the opinion of the Holders of the Common Securities, incompetent or
incapacitated, the vacancy created by such death, incompetence or incapacity may
be filled by the Property Trustee following the procedures regarding expenses
and charges set forth above (with the successor being a Person who satisfies the
eligibility requirement for the Delaware Trustee set forth in Section 8.7).

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<PAGE>

     Section 8.11. Acceptance of Appointment by Successor.

          In case of the appointment hereunder of a successor Relevant Trustee,
the retiring Relevant Trustee and each successor Relevant Trustee with respect
to the Trust Securities shall execute and deliver an amendment hereto wherein
each successor Relevant Trustee shall accept such appointment and which (a)
shall contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Relevant Trustee all the rights,
powers, trusts and duties of the retiring Relevant Trustee with respect to the
Trust Securities and the Issuer Trust, and (b) shall add to or change any of the
provisions of this Trust Agreement as shall be necessary to provide for or
facilitate the administration of the Issuer Trust by more than one Relevant
Trustee, it being understood that nothing herein or in such amendment shall
constitute such Relevant Trustees co-trustees and upon the execution and
delivery of such amendment the resignation or removal of the retiring Relevant
Trustee shall become effective to the extent provided therein and each such
successor Relevant Trustee, without any further act, deed or conveyance, other
than the filing of an amendment to the Certificate of Trust to the extent
required under the Delaware Statutory Trust Act, shall become vested with all
the rights, powers, trusts and duties of the retiring Relevant Trustee; but, on
request of the Issuer Trust or any successor Relevant Trustee such retiring
Relevant Trustee shall duly assign, transfer and deliver to such successor
Relevant Trustee all Trust Property, all proceeds thereof and money held by such
retiring Relevant Trustee hereunder with respect to the Trust Securities and the
Issuer Trust.

          Upon request of any such successor Relevant Trustee, the Issuer Trust
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Relevant Trustee all such rights, powers and
trusts referred to in the preceding paragraph.

          No successor Relevant Trustee shall accept its appointment unless at
the time of such acceptance such successor Relevant Trustee shall be qualified
and eligible under this ARTICLE VIII.

     Section 8.12. Merger, Conversion, Consolidation or Succession to Business.

          Any Person into which the Property Trustee or the Delaware Trustee may
be merged or converted or with which it may be consolidated, or any Person
resulting from any merger, conversion or consolidation to which such Relevant
Trustee shall be a party, or any Person, succeeding to all or substantially all
the corporate trust business of such Relevant Trustee, shall be the successor of
such Relevant Trustee hereunder, provided that such Person shall be otherwise
qualified and eligible under this ARTICLE VIII, without the execution or filing
of any paper or any further act on the part of any of the parties hereto, other
than the filing of an amendment to the Certificate of Trust to the extent
required under the Delaware Statutory Trust Act.

     Section 8.13. Preferential Collection of Claims Against Depositor or Issuer
Trust.

          If and when the Property Trustee shall be or become a creditor of the
Depositor or the Issuer Trust (or any other obligor upon the Capital
Securities), the Property Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Depositor or
the Issuer Trust (or any such other obligor).

     Section 8.14. Trustee May File Proofs of Claim.

          In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other similar judicial

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<PAGE>

proceeding relative to the Issuer Trust or any other obligor upon the Trust
Securities or the property of the Issuer Trust or of such other obligor or their
creditors, the Property Trustee (irrespective of whether any Distributions on
the Trust Securities shall then be due and payable and irrespective of whether
the Property Trustee shall have made any demand on the Issuer Trust for the
payment of any past due Distributions) shall be entitled and empowered, to the
fullest extent permitted by law, by intervention in such proceeding or
otherwise:

          (a) to file and prove a claim for the whole amount of any
Distributions owing and unpaid in respect of the Trust Securities and to file
such other papers or documents as may be necessary or advisable in order to have
the claims of the Property Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Property Trustee, its
agents and counsel) and of the Holders allowed in such judicial proceeding, and

          (b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Property Trustee and, in the event the Property Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Property Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Property Trustee, its agents and counsel, and
any other amounts due the Property Trustee.

          (c) Nothing herein contained shall be deemed to authorize the Property
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement adjustment or compensation affecting the
Trust Securities or the rights of any Holder thereof or to authorize the
Property Trustee to vote in respect of the claim of any Holder in any such
proceeding.

     Section 8.15. Reports by Property Trustee.

          (a) Not later than February 28 of each year commencing with 2006, the
Property Trustee shall transmit to all Holders in accordance with Section 10.8,
and to the Depositor, a brief report dated as of the immediately preceding
December 31 with respect to:

               (i) its eligibility under Section 8.7 or, in lieu thereof, if to
     the best of its knowledge it has continued to be eligible under said
     Section, a written statement to such effect;

               (ii) a statement that the Property Trustee has complied with all
     of its obligations under this Trust Agreement during the twelve-month
     period (or, in the case of the initial report, the period since the Closing
     Date) ending with such December 31 or, if the Property Trustee has not
     complied in any material respect with such obligations, a description of
     such noncompliance; and

               (iii) any change in the property and funds in its possession as
     Property Trustee since the date of its last report and any action taken by
     the Property Trustee in the performance of its duties hereunder which it
     has not previously reported and which in its opinion materially affects the
     Trust Securities.

          (b) In addition, the Property Trustee shall transmit to Holders such
reports concerning the Property Trustee and its actions under this Trust
Agreement as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

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<PAGE>

          (c) A copy of each such report shall, at the time of such transmission
to Holders, be filed by the Property Trustee with each national stock exchange,
the Nasdaq National Market or such other exchange, interdealer quotation system
or self-regulatory organization upon which the Trust Securities are listed or
traded, with the Commission (unless the Capital Securities have not been
registered under the Securities Act) and with the Depositor.

     Section 8.16. Reports to the Property Trustee.

          Each of the Depositor and the Administrative Trustees shall provide to
the Property 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(a) of the Trust Indenture Act in the form, in the manner
and at the times required by Section 314 of the Trust Indenture Act. The
Depositor and the Administrative Trustees shall annually file with the Property
Trustee a certificate specifying whether such Person is in compliance with all
of the terms and covenants applicable to such Person hereunder.

     Section 8.17. Evidence of Compliance with Conditions Precedent.

          Each of the Depositor and the Administrative Trustees shall provide to
the Property Trustee such evidence of compliance with any conditions precedent,
if any, provided for in this Trust Agreement 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) of the
Trust Indenture Act shall be given in the form of an Officers' Certificate.

     Section 8.18. Number of Issuer Trustees.

          (a) The number of Issuer Trustees shall be four, unless the Property
Trustee also acts as the Delaware Trustee, in which case the number of Issuer
Trustees may be three.

          (b) If an Issuer Trustee ceases to hold office for any reason, a
vacancy shall occur. The vacancy shall be filled with an Issuer Trustee
appointed in accordance with Section 8.10.

          (c) The death, resignation, retirement, removal, bankruptcy,
incompetence or incapacity to perform the duties of an Issuer Trustee shall not
operate to annul or dissolve the Issuer Trust.

     Section 8.19. Delegation of Power.

          (a) Any Administrative Trustee may, by power of attorney consistent
with applicable law, delegate to any other natural person over the age of 21 his
or her power for the purpose of executing any documents contemplated in Section
2.7(a) or making any governmental filing; and

          (b) The Administrative Trustees shall have power to delegate from time
to time to such of their number the doing of such things and the execution of
such instruments either in the name of the Issuer Trust or the names of the
Administrative Trustees or otherwise as the Administrative Trustees may deem
expedient, to the extent such delegation is not prohibited by applicable law or
contrary to the provisions of this Trust Agreement.

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                                   ARTICLE IX
                       DISSOLUTION, LIQUIDATION AND MERGER

     Section 9.1. Dissolution Upon Expiration Date.

          Unless earlier dissolved, the Issuer Trust shall automatically
dissolve, and its affairs be wound up, on March 1, 2037 (the "Expiration Date"),
following the distribution of the Trust Property in accordance with Section 9.4.

     Section 9.2. Early Dissolution.

          The first to occur of any of the following events is an "Early
Dissolution Event":

          (a) the occurrence of a Depositor Bankruptcy Event in respect of, or
the dissolution or liquidation of, the Depositor, in its capacity as the Holder
of the Common Securities, unless the Depositor shall transfer the Common
Securities as provided by Section 5.11, in which case this provision shall refer
instead to any such successor Holder of the Common Securities;

          (b) the written direction to the Property Trustee from all of the
Holders of the Common Securities at any time to dissolve the Issuer Trust and to
distribute the Debentures to Holders in exchange for the Capital Securities
(which direction is optional and wholly within the discretion of the Holders of
the Common Securities);

          (c) the redemption of all of the Capital Securities in connection with
the redemption or repayment of all the Debentures; and

          (d) the entry of an order for dissolution of the Issuer Trust by a
court of competent jurisdiction.

     Section 9.3. Dissolution.

          (a) The respective obligations and responsibilities of the Issuer
Trustees and the Issuer Trust created and continued hereby shall terminate upon
the latest to occur of the following: (a) the distribution by the Property
Trustee to Holders of all amounts required to be distributed hereunder upon the
liquidation of the Issuer Trust pursuant to Section 9.4, or upon the redemption
of all of the Trust Securities pursuant to Section 4.2; (b) the payment of any
expenses owed by the Issuer Trust; and (c) the discharge of all administrative
duties of the Administrative Trustees, including the performance of any tax
reporting obligations with respect to the Issuer Trust or the Holders.

          (b) As soon as practicable after the occurrence of an event referred
to in clause (a) above, and after satisfaction of liabilities to creditors of
the trust as required by applicable law, including Section 3808 of the Statutory
Trust Act, the Delaware Trustee, when notified in writing by the Property
Trustee of the completion of the winding up of the Trust in accordance with the
Statutory Trust Act, shall terminate the Trust by filing, at the expense of the
Depositor, a certificate of cancellation with the Secretary of State of the
State of Delaware.

     Section 9.4. Liquidation.

          (a) If an Early Dissolution Event specified in clause (a), (b) or (d)
of Section 9.2 occurs or upon the Expiration Date, the Issuer Trust shall be
liquidated by the Issuer Trustees as expeditiously as the Issuer Trustees
determine to be possible by distributing, after satisfaction of liabilities to
creditors of the Issuer Trust as provided by applicable law, to each Holder a

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Like Amount of Debentures, subject to Section 9.4(d). Notice of liquidation
shall be given by the Property Trustee by first-class mail, postage prepaid,
mailed not less than 30 nor more than 60 days prior to the Liquidation Date to
each Holder of Trust Securities at such Holder's address appearing in the
Securities Register. All such notices of liquidation shall:

               (i) state the CUSIP Number of the Trust Securities;

               (ii) state the Liquidation Date;

               (iii) state that from and after the Liquidation Date, the Trust
     Securities will no longer be deemed to be Outstanding and any Trust
     Securities Certificates not surrendered for exchange will be deemed to
     represent a Like Amount of Debentures, or if Section 9.4(d) applies, a
     right to receive a Liquidating Distribution; and

               (iv) provide such information with respect to the mechanics by
     which Holders may exchange Trust Securities Certificates for Debentures, or
     if Section 9.4(d) applies, receive a Liquidation Distribution, as the
     Property Trustee (after consultation with the Administrative Trustees)
     shall deem appropriate.

          (b) Except where Section 9.2(c) or Section 9.4(d) applies, in order to
effect the liquidation of the Issuer Trust and distribution of the Debentures to
Holders, the Property Trustee, either itself acting as exchange agent or through
the appointment of a separate exchange agent, shall establish a record date for
such distribution (which shall be not more than 30 days prior to the Liquidation
Date) and, establish such procedures as it shall deem appropriate to effect the
distribution of Debentures in exchange for the Outstanding Trust Securities
Certificates.

          (c) Except where Section 9.2(c) or Section 9.4(d) applies, after the
Liquidation Date, (i) the Trust Securities will no longer be deemed to be
Outstanding, (ii) certificates representing a Like Amount of Debentures will be
issued to Holders of Trust Securities Certificates, upon surrender of such
Certificates to the exchange agent for exchange, (iii) the Depositor shall use
its best efforts to have the Debentures listed on a national stock exchange, the
Nasdaq National Market or such other exchange, interdealer quotation system or
self-regulatory organization as the Capital Securities are then listed, (iv) any
Trust Securities Certificates not so surrendered for exchange will be deemed to
represent a Like Amount of Debentures bearing accrued and unpaid interest in an
amount equal to the accumulated and unpaid Distributions on such Trust
Securities Certificates until such certificates are so surrendered (and until
such certificates are so surrendered, no payments of interest or principal will
be made to Holders of Trust Securities Certificates with respect to such
Debentures) and (v) all rights of Holders holding Trust Securities will cease,
except the right of such Holders to receive Debentures upon surrender of Trust
Securities Certificates.

          (d) If, notwithstanding the other provisions of this Section 9.4,
whether because of an order for dissolution entered by a court of competent
jurisdiction or otherwise, distribution of the Debentures in the manner provided
herein is determined by the Property Trustee not to be practical, or if an Early
Dissolution Event specified in Section 9.2(c) occurs, the Trust Property shall
be liquidated, and the Issuer Trust shall be dissolved and its affairs wound-up,
by the Property Trustee in such manner as the Property Trustee determines. In
such event, on the date of the dissolution, winding-up or other termination of
the Issuer Trust, Holders will be entitled to receive out of the assets of the
Issuer Trust available for distribution to Holders, after satisfaction of
liabilities to creditors of the Issuer Trust as provided by applicable law, an
amount equal to the Liquidation Amount per Trust Security plus accumulated and
unpaid

                                       45

<PAGE>

Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"). If, upon any such dissolution, winding up or termination, the
Liquidation Distribution can be paid only in part because the Issuer Trust has
insufficient assets available to pay in full the aggregate Liquidation
Distribution, then, subject to the next succeeding sentence, the amounts payable
by the Issuer Trust on the Trust Securities shall be paid on a pro rata basis
(based upon Liquidation Amounts). The Holders of the Common Securities will be
entitled to receive Liquidation Distributions upon any such dissolution,
winding-up or termination pro rata (determined as aforesaid) with Holders of
Capital Securities, except that, if a Debenture Event of Default specified in
Section 501(1) or 501(2) of the Indenture has occurred and is continuing, the
Capital Securities shall have a priority over the Common Securities as provided
in Section 4.3.

     Section 9.5. Mergers, Consolidations, Amalgamations or Replacements of
Issuer Trust.

          The Issuer Trust may not merge with or into, consolidate, amalgamate,
or be replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to any corporation or other body, except pursuant
to this Section 9.5. At the request of the Holders of the Common Securities,
with the consent of the Administrative Trustees, but without the consent of the
Holders of the Capital Securities, the Property Trustee or the Delaware Trustee,
the Issuer Trust may merge with or into, consolidate, amalgamate, or be replaced
by or convey, transfer or lease its properties and assets substantially as an
entirety to a trust organized as such under the laws of any state or Puerto
Rico; provided, that (i) such successor entity either (a) expressly assumes all
of the obligations of the Issuer Trust with respect to the Capital Securities,
or (b) substitutes for the Capital Securities other securities having
substantially the same terms as the Capital Securities (the "Successor
Securities") so long as the Successor Securities have the same priority as the
Capital Securities with respect to distributions and payments upon liquidation,
redemption and otherwise, (ii) a trustee of such successor entity possessing the
same powers and duties as the Property Trustee is appointed to hold the
Debentures, (iii) the Successor Securities are listed, or any Successor
Securities will be listed upon notice of issuance, on a national securities
exchange, the Nasdaq National Market or such other exchange, interdealer
quotation system of self-regulatory organization as the Capital Securities are
then listed, if any, (iv) such merger, consolidation, amalgamation, replacement,
conveyance, transfer or lease does not cause the Capital Securities (including
any Successor Securities) to be downgraded by any nationally recognized
statistical rating organization, (v) such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease does not adversely affect the rights,
preferences and privileges of the holders of the Capital Securities (including
any Successor Securities) in any material respect, (vi) such successor entity
has a purpose substantially identical to that of the Issuer Trust, (vii) prior
to such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease, the Depositor has received an Opinion of Counsel to the effect that
(a) such merger, consolidation, amalgamation, replacement, conveyance, transfer
or lease does not adversely affect the rights, preferences and privileges of the
Holders of the Capital Securities (including any Successor Securities) in any
material respect, and (b) following such merger, consolidation, amalgamation,
replacement, conveyance, transfer or lease, neither the Issuer Trust nor such
successor entity will be required to register as an "investment company" under
the Investment Company Act, and (viii) the Depositor or its permitted transferee
owns all of the Common Securities of such successor entity and guarantees the
obligations of such successor entity under the Successor Securities at least to
the extent provided by the Guarantee Agreement. Notwithstanding the foregoing,
the Issuer Trust shall not, except with the consent of Holders of all of the
Capital Securities, consolidate, amalgamate, merge with or into, or be replaced
by or convey, transfer or lease its properties

                                       46

<PAGE>

and assets substantially as an entirety to any other entity or permit any other
entity to consolidate, amalgamate, merge with or into, or replace it if such
consolidation, amalgamation, merger, replacement, conveyance, transfer or lease
would cause the Issuer Trust or the successor entity to be taxable as a
corporation or classified as other than a grantor trust for United States
federal or Puerto Rico income tax purposes.

                                    ARTICLE X
                            MISCELLANEOUS PROVISIONS

     Section 10.1. Limitation of Rights of Holders.

          Except as set forth in Section 9.2, the death or incapacity of any
person having an interest, beneficial or otherwise, in Trust Securities shall
not operate to terminate this Trust Agreement, nor entitle the legal
representatives or heirs of such person or any Holder for such person, to claim
an accounting, take any action or bring any proceeding in any court for a
partition or winding up of the arrangements contemplated hereby, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of
them.

     Section 10.2. Amendment.

          (a) This Trust Agreement may be amended from time to time by the
Administrative Trustees, the Property Trustee and the Holders of all of the
Common Securities, without the consent of any Holder of the Capital Securities,
(i) to cure any ambiguity, correct or supplement any provision herein that may
be inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Trust Agreement, which
shall not be inconsistent with the other provisions of this Trust Agreement, or
(ii) to modify, eliminate or add to any provisions of this Trust Agreement to
such extent as shall be necessary to ensure that the Issuer Trust will not be
taxable as a corporation or classified as other than a grantor trust for United
States federal or Puerto Rico income tax purposes at all times that any Trust
Securities are outstanding or to ensure that the Issuer Trust will not be
required to register as an "investment company" under the Investment Company
Act; provided, however, that in the case of either clause (i) or (ii), such
action shall not adversely affect in any material respect the interests of any
Holder.

          (b) Except as provided in Section 10.2(c), any provision of this Trust
Agreement may be amended by the Administrative Trustees, the Property Trustee,
and the Holders of all of the Common Securities and with (i) the consent of
Holders of at least a Majority in Liquidation Amount of the Capital Securities,
and (ii) receipt by the Issuer Trustees of an Opinion of Counsel to the effect
that such amendment or the exercise of any power granted to the Issuer Trustees
in accordance with such amendment will not affect the Trust's status as a
grantor trust or cause the Issuer Trust to be taxable as a corporation or as
other than a grantor trust for United States Federal or Puerto Rico income tax
purposes or affect the Issuer Trust's exemption from status as an "investment
company" under the Investment Company Act.

          (c) In addition to and notwithstanding any other provision in this
Trust Agreement, without the consent of each affected Holder (such consent being
obtained in accordance with Section 6.3 or Section 6.6 hereof), this Trust
Agreement may not be amended to (i) change the amount or timing of any
Distribution on the Trust Securities or otherwise adversely affect the amount of
any Distribution required to be made in respect of the Trust Securities as of a
specified date, or (ii) restrict the right of a Holder to institute suit for the
enforcement of any such payment on or after such date; and notwithstanding any
other provision herein, without the unanimous consent of the Holders (such

                                       47

<PAGE>

consent being obtained in accordance with Section 6.3 or Section 6.6 hereof),
this Section 10.2(c) may not be amended.

          (d) Notwithstanding any other provisions of this Trust Agreement, no
Issuer Trustee shall enter into or consent to any amendment to this Trust
Agreement that would cause the Issuer Trust to fail or cease to qualify for the
exemption from status as an "investment company" under the Investment Company
Act or to be taxable as a corporation or to be classified as other than a
grantor trust for United States federal or Puerto Rico income tax purposes.

          (e) Notwithstanding anything in this Trust Agreement to the contrary,
without the consent of the Depositor and the Administrative Trustees, this Trust
Agreement may not be amended in a manner that imposes any additional obligation
on the Depositor or the Administrative Trustees.

          (f) Notwithstanding anything in this Trust Agreement to the contrary,
without the consent of the Property Trustee, this Trust Agreement may not be
amended in a manner that imposes any additional obligation on the Property
Trustee.

          (g) Notwithstanding anything in this Trust Agreement to the contrary,
without the consent of the Delaware Trustee, this Trust Agreement may not be
amended in a manner that imposes any additional obligation on the Delaware
Trustee.

          (h) In the event that any amendment to this Trust Agreement is made,
the Administrative Trustees or the Property Trustee shall promptly provide to
the Depositor a copy of such amendment.

          (i) Neither the Property Trustee nor the Delaware Trustee shall be
required to enter into any amendment to this Trust Agreement that affects its
own rights, duties or immunities under this Trust Agreement. The Issuer Trustees
shall be entitled to receive an Opinion of Counsel and an Officers' Certificate
stating that any amendment to this Trust Agreement is in compliance with this
Trust Agreement.

     Section 10.3. Separability.

          In case any provision in this Trust Agreement or in the Trust
Securities Certificates shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     Section 10.4. Governing Law.

          THIS TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE
HOLDERS, THE ISSUER TRUST, THE DEPOSITOR, AND THE ISSUER TRUSTEES WITH RESPECT
TO THIS TRUST AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT
REFERENCE TO ITS CONFLICTS OF LAWS PROVISIONS.

     Section 10.5. Payments Due on Non-Business Day.

          If the date fixed for any payment on any Trust Security shall be a day
that is not a Business Day, then such payment need not be made on such date but
may be made on the next succeeding day that is a Business Day, with the same
force and effect as though made on the date fixed for such payment, and no
Distributions shall accumulate on such unpaid amount for the period after such
date.

                                       48

<PAGE>

     Section 10.6. Successors.

          This Trust Agreement shall be binding upon and shall inure to the
benefit of any successor to the Depositor, the Issuer Trust, and any Issuer
Trustee, including any successor by operation of law. Except in connection with
a consolidation, merger or sale involving the Depositor that is permitted under
Article Eight of the Indenture and pursuant to which the assignee agrees in
writing to perform the Depositor's obligations hereunder, the Depositor shall
not assign its obligations hereunder.

     Section 10.7. Headings.

          The Article and Section headings are for convenience only and shall
not affect the construction of this Trust Agreement.

     Section 10.8. Reports, Notices and Demands.

          Any report, notice, demand or other communication that by any
provision of this Trust Agreement is required or permitted to be given or served
to or upon any Holder or the Depositor may be given or served in writing by
deposit thereof, first-class postage prepaid, in the United States mail, hand
delivery or facsimile transmission, in each case, addressed, (a) in the case of
a Holder of Capital Securities, to such Holder as such Holder's name and address
may appear on the Securities Register; and (b) in the case of the Holder of the
Common Securities or the Depositor, to Santander BanCorp, 207 Ponce de Leon
Avenue, San Juan, Puerto Rico 00918, Attention: President, or to such other
address as may be specified in a written notice by the Holder of the Common
Securities or the Depositor, as the case may be, to the Property Trustee. Such
notice, demand or other communication to or upon a Holder shall be deemed to
have been sufficiently given or made, for all purposes, upon hand delivery,
mailing or transmission. Such notice, demand or other communication to or upon
the Depositor shall be deemed to have been sufficiently given or made only upon
actual receipt of the writing by the Depositor.

          Any notice, demand or other communication that by any provision of
this Trust Agreement is required or permitted to be given or served to or upon
the Issuer Trust, the Property Trustee, the Delaware Trustee, the Administrative
Trustees or the Issuer Trust shall be given in writing addressed to such Person
as follows: (a) with respect to the Property Trustee, to Banco Popular de Puerto
Rico, Trust Division, Banco Popular Center, 209 Munoz Rivera Avenue, San Juan,
Puerto Rico 00918, Attention: Senior Trust Officer; (b) with respect to the
Delaware Trustee, to Wilmington Trust Company, Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust
Administration; (c) with respect to the Administrative Trustees, to them at c/o
Santander BanCorp, 207 Ponce de Leon Avenue, Hato Rey, Puerto Rico 00918, marked
"Attention: Administrative Trustees of Santander PR Capital Trust I"; and (d)
with respect to the Issuer Trust, to its principal office specified in Section
2.2, with a copy to the Property Trustee. Such notice, demand or other
communication to or upon the Issuer Trust, the Property Trustee or the
Administrative Trustees shall be deemed to have been sufficiently given or made
only upon actual receipt of the writing by the Issuer Trust, the Property
Trustee or such Administrative Trustee.

     Section 10.9. Agreement Not to Petition.

          Each of the Issuer Trustees and the Depositor agree for the benefit of
the Holders that, until at least one year and one day after the Issuer Trust has
been dissolved in accordance with ARTICLE IX, they shall not file, or join in
the filing of, a petition against the Issuer Trust under any bankruptcy,
insolvency, reorganization or other similar law (including the United States
Bankruptcy Code) (collectively, "Bankruptcy Laws") or otherwise join in the

                                       49

<PAGE>

commencement of any proceeding against the Issuer Trust under any Bankruptcy
Law. If the Depositor takes action in violation of this Section 10.9, the
Property Trustee agrees, for the benefit of Holders, that at the expense of the
Depositor, it shall file an answer with the bankruptcy court or otherwise
properly contest the filing of such petition by the Depositor against the Issuer
Trust or the commencement of such action and raise the defense that the
Depositor has agreed in writing not to take such action and should be stopped
and precluded therefrom and such other defenses, if any, as counsel for the
Issuer Trustee or the Issuer Trust may assert.

     Section 10.10. Trust Indenture Act; Conflict with Trust Indenture Act.

          (a) This Trust Agreement is subject to the provisions of the Trust
Indenture Act that are required to be part of this Trust Agreement and shall, to
the extent applicable, be governed by such provisions. Except as otherwise
expressly provided herein, if and to the extent that any provision of this Trust
Agreement limits, qualifies or conflicts with the duties imposed by Sections 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

          (b) The Property Trustee shall be the only Issuer Trustee that is a
trustee for the purposes of the Trust Indenture Act.

          (c) The application of the Trust Indenture Act to this Trust Agreement
shall not affect the nature of the Trust Securities as equity securities
representing undivided beneficial interests in the assets of the Issuer Trust.

     Section 10.11. Acceptance of Terms of Trust Agreement, Guarantee Agreement
and Indenture.

          THE RECEIPT AND ACCEPTANCE OF A TRUST SECURITY OR ANY INTEREST THEREIN
BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL OWNER, WITHOUT ANY SIGNATURE OR
FURTHER MANIFESTATION OF ASSENT, SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE
BY THE HOLDER AND ALL OTHERS HAVING A BENEFICIAL INTEREST IN SUCH TRUST SECURITY
OF ALL THE TERMS AND PROVISIONS OF THIS TRUST AGREEMENT, THE GUARANTEE AGREEMENT
AND THE INDENTURE, AND AGREEMENT TO THE SUBORDINATION PROVISIONS AND OTHER TERMS
OF THE GUARANTEE AGREEMENT AND THE INDENTURE, AND SHALL CONSTITUTE THE AGREEMENT
OF THE ISSUER TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS AND PROVISIONS
OF THIS TRUST AGREEMENT SHALL BE BINDING, OPERATIVE AND EFFECTIVE AS BETWEEN THE
ISSUER TRUST AND SUCH HOLDER AND SUCH OTHERS.

     Section 10.12. Counterparts.

          This Trust Agreement may contain more than one counterpart of the
signature page and this Trust Agreement may be executed by the affixing of the
signature of each of the Trustees to one of such counterpart signature pages.
All of such counterpart signature pages shall be read as though one, and they
shall have the same force and effect as though all of the signers had signed a
single signature page.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       50

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Amended and
Restated Trust Agreement.

                                        SANTANDER BANCORP

                                        By:
                                            ------------------------------------
                                        Name: Carlos M. Garcia
                                        Title: Senior Executive Vice President
                                               and Chief Operating Officer

                                        By:
                                            ------------------------------------
                                        Name: Juan P. Perez Hanley
                                        Title: Senior Vice President and
                                               Treasurer

                                        BANCO POPULAR DE PUERTO RICO,
                                        as Property Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        WILMINGTON TRUST COMPANY,
                                        as Delaware Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        SANTANDER PR CAPITAL TRUST I

                                        By:
                                            ------------------------------------
                                        Name: Juan P. Perez Hanley
                                        Title: Administrative Trustee

                                        By:
                                            ------------------------------------
                                        Name: Juan Diaz Soultaire
                                        Title: Administrative Trustee

                                       51

<PAGE>

                                                                       EXHIBIT A

                              CERTIFICATE OF TRUST

                                    Exh. A-1

<PAGE>

                                                                       EXHIBIT B

                      FORM OF COMMON SECURITIES CERTIFICATE

THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT TO THE DEPOSITOR OR AN AFFILIATE OF
THE DEPOSITOR IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST
AGREEMENT

Certificate Number _______                   Number of Common Securities _______

                    Certificate Evidencing Common Securities

                         of Santander PR Capital Trust I

                             7.00% Common Securities

                  (liquidation amount $25 per Common Security)

     Santander PR Capital Trust I, a statutory trust created under the laws of
the State of Delaware (the "Issuer Trust"), hereby certifies that Santander
BanCorp (the "Holder") is the registered owner of _______________________
(___________) Common Securities of the Issuer Trust representing undivided
common beneficial interests in the assets of the Issuer Trust and designated the
7.00% Common Securities (liquidation amount $25 per Common Security) (the
"Common Securities"). Except in accordance with the Trust Agreement (as defined
below), the Common Securities are not transferable and any attempted transfer
hereof other than in accordance therewith shall be void. The designations,
rights, privileges, restrictions, preferences and other terms and provisions of
the Common Securities are set forth in, and this certificate and the Common
Securities represented hereby are issued and shall in all respects be subject to
the terms and provisions of, the Amended and Restated Declaration of Trust and
Trust Agreement of the Issuer Trust, dated as of February 28, 2006, as the same
may be amended from time to time (the "Trust Agreement"), among Santander
BanCorp, as Depositor, Banco Popular de Puerto Rico, as Property Trustee,
Wilmington Trust Company, as Delaware Trustee, and the Holders of Trust
Securities, including the designation of the terms of the Common Securities as
set forth therein. The Issuer Trust will furnish a copy of the Trust Agreement
to the Holder without charge upon written request to the Issuer Trust at its
principal place of business or registered office. Upon receipt of this
certificate, the Holder is bound by the Trust Agreement and is entitled to the
benefits thereunder.

     Terms used but not defined herein have the meanings set forth in the Trust
Agreement.

     IN WITNESS WHEREOF, one of the Administrative Trustees of the Issuer Trust
has executed this certificate this 28th day of February, 2006.

                                        SANTANDER PR CAPITAL TRUST I

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Administrative Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Administrative Trustee

                                    Exh. B-1

<PAGE>

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Common Securities referred to in the above mentioned
Trust Agreement.

Dated: February 28, 2006                BANCO POPULAR DE PUERTO RICO,
                                        as Property Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                    Exh. B-2

<PAGE>

                                                                       EXHIBIT C

                     FORM OF CAPITAL SECURITIES CERTIFICATE

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR UNDER THE PUERTO RICO UNIFORM SECURITIES ACT
OR ANY OTHER STATE OR COMMONWEALTH OF PUERTO RICO SECURITIES LAWS. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF
SANTANDER BANCORP THAT (a) THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED OTHER THAN (1) TO SANTANDER BANCORP OR A SUBSIDIARY THEREOF OR TO
THE TRUST, (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (3) SO LONG AS
THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT ("RULE 144A"), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (4) TO A "NON U.S. PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO
REGULATION S UNDER THE SECURITIES ACT, (5) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE
MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT, OR (6) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT, SUBJECT, IN THE CASE OF CLAUSES (5) OR
(6), TO THE RECEIPT BY SANTANDER BANCORP AND THE TRUST OF AN OPINION OF COUNSEL
OR SUCH OTHER EVIDENCE ACCEPTABLE TO SANTANDER BANCORP AND THE TRUST THAT SUCH
RESALE, PLEDGE OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT OR (7) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND THAT
(b) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO IN THE AMENDED
AND RESTATED DECLARATION OF TRUST AND DELIVER TO THE TRANSFEREE (OTHER THAN A
QUALIFIED INSTITUTIONAL BUYER) PRIOR TO THE SALE A COPY OF THE TRANSFER
RESTRICTIONS APPLICABLE HERETO (COPIES OF WHICH MAY BE OBTAINED FROM SANTANDER
BANCORP).

THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS
AGREEMENT DATED AS OF FEBRUARY 28, 2006 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO
BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS
AGREEMENT.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE
DECLARATION TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

[THIS CAPITAL SECURITIES CERTIFICATE IS A BOOK-ENTRY CAPITAL SECURITIES
CERTIFICATE WITHIN THE MEANING OF THE TRUST AGREEMENT HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A CLEARING AGENCY OR A NOMINEE OF A CLEARING
AGENCY. THIS CAPITAL SECURITIES CERTIFICATE IS EXCHANGEABLE FOR CAPITAL
SECURITIES CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
CLEARING AGENCY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE TRUST AGREEMENT AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE CLEARING
AGENCY TO A NOMINEE OF THE CLEARING AGENCY OR BY A NOMINEE OF THE CLEARING

                                    Exh. C-1
<PAGE>

AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE OF THE CLEARING AGENCY, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE TRUST AGREEMENT.][Add to
Certificate if Capital Security is a Book-Entry Capital Security]

[UNLESS THIS CAPITAL SECURITY CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO POPULAR CAPITAL TRUST II OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CAPITAL SECURITY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR 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 A PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.][Add to Certificate if Capital Security is a Book-Entry Capital
Security]

NO EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") (EACH, A "PLAN"), NO
ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY REASON OF ANY PLAN'S
INVESTMENT IN THE ENTITY (A "PLAN ASSET ENTITY"), AND NO PERSON INVESTING "PLAN
ASSETS" OF ANY PLAN, MAY ACQUIRE OR HOLD THIS CAPITAL SECURITIES CERTIFICATE OR
ANY INTEREST HEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION
CLASS EXEMPTION ("PTCE") 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER
APPLICABLE EXEMPTION WITH RESPECT TO SUCH PURCHASE OR HOLDING OR THE
REQUIREMENTS OF U.S. DEPARTMENT OF LABOR REGULATION SECTION 2550.401c-1 ARE
SATISFIED SUCH THAT THE CAPITAL SECURITIES CERTIFICATE HELD BY THE PURCHASER OR
HOLDER DOES NOT CONSTITUTE "PLAN ASSETS" AND, IN THE CASE OF ANY PURCHASER OR
HOLDER RELYING ON ANY EXEMPTION OTHER THAN PTCE 96-23, 95-60, 91-38, 90-1 OR
84-14 OR U.S. DEPARTMENT OF LABOR REGULATION SECTION 2550.401c-1, HAS COMPLIED
WITH ANY REQUEST BY THE DEPOSITOR OR THE ISSUER TRUST FOR AN OPINION OF COUNSEL
OR OTHER EVIDENCE WITH RESPECT TO THE AVAILABILITY OF SUCH EXEMPTION. ANY
PURCHASER OR HOLDER OF THIS CAPITAL SECURITIES CERTIFICATE OR ANY INTEREST
HEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING HEREOF
THAT IT EITHER (A) IS NOT A PLAN OR A PLAN ASSET ENTITY AND IS NOT PURCHASING
SUCH SECURITIES ON BEHALF OF OR WITH "PLAN ASSETS" OF ANY PLAN, OR (B) IS
ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER PTCE 96-23, 95-60, 91-38, 90-1
OR 84-14 OR ANOTHER APPLICABLE EXEMPTION WITH RESPECT TO SUCH PURCHASE OR
HOLDING OR U.S. DEPARTMENT OF LABOR REGULATION SECTION 2550.401c-1.

Certificate Number _____                      Number of Capital Securities _____

CUSIP NO.

                    Certificate Evidencing Capital Securities
                         of Santander PR Capital Trust I
                        7.00% Trust Preferred Securities
                  (liquidation amount $25 per Capital Security)

     Santander PR Capital Trust I, a statutory trust created under the laws of
the State of Delaware (the "Issuer Trust"), hereby certifies that Santusa
Holding, S.L. (the "Holder") is the registered owner of ________________
_________________ (____________) Capital Securities of the Trust representing an
undivided preferred beneficial interest in the assets of the Trust and
designated the Santander PR Capital Trust I 7.00% Trust Preferred Securities
(liquidation amount $25 per Capital Security) (the "Capital Securities"). The
Capital Securities are transferable on the books and records of the Issuer
Trust, in person or by a duly authorized attorney, upon surrender of this
certificate duly endorsed and in proper form for transfer as provided in the
Trust Agreement (as

                                    Exh. C-2

<PAGE>

defined below). The designations, rights, privileges, restrictions, preferences
and other terms and provisions of the Capital Securities are set forth in, and
this certificate and the Capital Securities represented hereby are issued and
shall in all respects be subject to the terms and provisions of, the Amended and
Restated Declaration of Trust and Trust Agreement of the Issuer Trust, dated as
of February 28 2006, as the same may be amended from time to time (the "Trust
Agreement"), among Santander BanCorp, as Depositor, Banco Popular de Puerto
Rico, as Property Trustee, Wilmington Trust Company, as Delaware Trustee, and
the Holders of Trust Securities, including the designation of the terms of the
Capital Securities as set forth therein. The Holder is entitled to the benefits
of the Guarantee Agreement, dated as of February 28, 2006, (the "Guarantee
Agreement"), by and between Santander BanCorp, as Guarantor, and Banco Popular
de Puerto Rico, as Guarantee Trustee, to the extent provided therein. The Issuer
Trust will furnish a copy of the Issuer Trust Agreement and the Guarantee
Agreement to the Holder without charge upon written request to the Issuer Trust
at its principal place of business or registered office.

     Upon receipt of this certificate, the Holder is bound by the Trust
Agreement and is entitled to the benefits thereunder.

     IN WITNESS WHEREOF, the Administrative Trustees of the Issuer Trust have
executed this certificate this 28th day of February, 2006.

                                        SANTANDER PR CAPITAL TRUST I

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Administrative Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title: Administrative Trustee

                                    Exh. C-3

<PAGE>

                PROPERTY TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Capital Securities referred to in the above mentioned
Trust Agreement.

Dated: February 28, 2006                BANCO POPULAR DE PUERTO RICO,
                                        as Property Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                   ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
Security to: _____________________________________________ (Insert assignee's
social security or tax identification number) ___________________ (Insert
address and zip code of assignee) and irrevocably appoints
____________________________________________ agent to transfer this Capital
Security Certificate on the books of the Issuer Trust. The agent may substitute
another to act for him or her.

Dated:                                  Signature:
       ------------------------                    -----------------------------

                                        (Sign exactly as your name appears on
                                        the other side of this Capital Security
                                        Certificate) The signature(s) should be
                                        guaranteed by an eligible guarantor
                                        institution (banks, stockbrokers,
                                        savings and loan associations and credit
                                        unions with membership in an approved
                                        signature guarantee medallion program),
                                        pursuant to S.E.C. Rule 17Ad-15.

                                    Exh. C-4

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