Document:

<PAGE>

                                                                   EXHIBIT 10.29

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$5,080,636.30                                                 JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of five million eighty thousand six
hundred thirty-six dollars and thirty cents (US$5,080,636.30) (the "ORIGINAL
PRINCIPAL AMOUNT") in lawful money of the United States of America with interest
on the principal amount outstanding from time to time to be computed from the
date hereof until such principal amount is paid in full at an annual rate equal
to the lesser of (i) the maximum non-usurious rate permitted by applicable law
and (ii) eight percent and seven hundred and eighty-seven thousandths of a
percent (8.787%) calculated monthly on a semi-annual basis (the "INTEREST
RATE"), said Original Principal Amount and interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2005 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

                                      - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>

                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                        BORROWER

                                        NB FINANCE, LTD.

                                        By:
                                                 -------------------------------

                                        LENDER

                                        NB CAPITAL CORPORATION

                                        By:
                                                 -------------------------------

<PAGE>

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$9,643,823.39                                                JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of nine million six hundred forty-three
thousand eight hundred twenty-three dollars and thirty-nine cents
(US$9,643,823.39) (the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the
United States of America with interest on the principal amount outstanding from
time to time to be computed from the date hereof until such principal amount is
paid in full at an annual rate equal to the lesser of (i) the maximum
non-usurious rate permitted by applicable law and (ii) eight percent and
ninety-six thousandths of a percent (8.096%) calculated monthly on a semi-annual
basis (the "INTEREST RATE"), said Original Principal Amount and interest to be
paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2006 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

                                     - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges
of any agents or attorneys which Lender may employ in connection with any
default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>

                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                        BORROWER

                                        NB FINANCE, LTD.

                                        By:
                                                 ------------------------------

                                        LENDER

                                        NB CAPITAL CORPORATION

                                        By:
                                                 ------------------------------

<PAGE>
                                 PROMISSORY NOTE
                                  (this "NOTE")

US$4,425,150.57                                                JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of four million four hundred twenty-five
thousand one hundred fifty dollars and fifty-seven cents (US$4,425,150.27) (the
"ORIGINAL PRINCIPAL AMOUNT") in lawful money of the United States of America
with interest on the principal amount outstanding from time to time to be
computed from the date hereof until such principal amount is paid in full at an
annual rate equal to the lesser of (i) the maximum non-usurious rate permitted
by applicable law and (ii) eight percent and seven hundred and twenty-five
thousandths of a percent (8.725%) calculated monthly on a semi-annual basis (the
"INTEREST RATE"), said Original Principal Amount and interest to be paid as
follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2006 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>
                                     - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>
                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                         BORROWER

                                         NB FINANCE, LTD.

                                         By:
                                                  ------------------------------

                                         LENDER

                                         NB CAPITAL CORPORATION

                                         By:
                                                  ------------------------------

<PAGE>

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$6,300,323.22                                                 JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of six million three hundred thousand
three hundred twenty-three dollars and twenty-two cents (US$6,300,323.22) (the
"ORIGINAL PRINCIPAL AMOUNT") in lawful money of the United States of America
with interest on the principal amount outstanding from time to time to be
computed from the date hereof until such principal amount is paid in full at an
annual rate equal to the lesser of (i) the maximum non-usurious rate permitted
by applicable law and (ii) nine percent and three hundred and twenty-two
thousandths of a percent (9.322%) calculated monthly on a semi-annual basis (the
"INTEREST RATE"), said Original Principal Amount and interest to be paid as
follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2006 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (THE "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>
                                      -2-

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                      -3-

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>

                                      -4-

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                      -5-

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                      BORROWER

                                      NB FINANCE, LTD.

                                      By:
                                               ---------------------------------

                                      LENDER

                                      NB CAPITAL CORPORATION

                                      By:
                                               ---------------------------------

<PAGE>
                                 PROMISSORY NOTE
                                  (this "NOTE")

US$7,897,184.70                                                 JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of seven million eight hundred
ninety-seven thousand one hundred eighty-four dollars and seventy cents
(US$7,897,184.70) (the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the
United States of America with interest on the principal amount outstanding from
time to time to be computed from the date hereof until such principal amount is
paid in full at an annual rate equal to the lesser of (i) the maximum
non-usurious rate permitted by applicable law and (ii) eight percent and one
hundred and twenty-four thousandths of a percent (8.124%) calculated monthly on
a semi-annual basis (the "INTEREST RATE"), said Original Principal Amount and
interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on January 15, 2007 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>
                                      -2-

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>
                                      -3-

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>
                                      -4-

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>
                                      -5-

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                     BORROWER

                                     NB FINANCE, LTD.

                                     By:
                                              ----------------------------------

                                     LENDER

                                     NB CAPITAL CORPORATION

                                     By:
                                              ----------------------------------

<PAGE>

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$8,304,717.22                                                 JANUARY 25, 2002

         FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of eight million three hundred four
thousand seven hundred seventeen dollars and twenty-two cents (US$8,304,717.22)
(the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the United States of
America with interest on the principal amount outstanding from time to time to
be computed from the date hereof until such principal amount is paid in full at
an annual rate equal to the lesser of (i) the maximum non-usurious rate
permitted by applicable law and (ii) eight percent and seven hundred and
thirty-five thousandths of a percent (8.735%) calculated monthly on a
semi-annual basis (the "INTEREST RATE"), said Original Principal Amount and
interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on January 15, 2007 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

                                     - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>
                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

SECTION 9. Non Recourse. Except as otherwise provided herein and the Loan
Agreement and the Mortgage Loan Assignment Agreement, Lender shall not enforce
the liability and obligation of Borrower to perform and observe the obligations
contained in this Note, the Loan Agreement and the Mortgage Loan Assignment
Agreement by any action or proceeding wherein a money judgment shall be sought
against Borrower, except that Lender may bring an action or proceeding to enable
Lender to enforce and realize upon this Note, the

<PAGE>

                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                    BORROWER

                                    NB FINANCE, LTD.

                                    By:
                                        -----------------------------------

                                    LENDER

                                    NB CAPITAL CORPORATION

                                    By:
                                        -----------------------------------
<PAGE>

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$10,348,651.63                                               JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of ten million three hundred forty-eight
thousand six hundred fifty-one dollars and sixty-three cents (US$10,348,651.63)
(the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the United States of
America with interest on the principal amount outstanding from time to time to
be computed from the date hereof until such principal amount is paid in full at
an annual rate equal to the lesser of (i) the maximum non-usurious rate
permitted by applicable law and (ii) nine percent and three hundred and
sixty-two thousandths of a percent (9.362%) calculated monthly on a semi-annual
basis (the "INTEREST RATE"), said Original Principal Amount and interest to be
paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on January 15, 2007 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

                                     - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges
of any agents or attorneys which Lender may employ in connection with any
default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>

                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                 BORROWER

                                 NB FINANCE, LTD.

                                 By:
                                          -------------------------------------

                                 LENDER

                                 NB CAPITAL CORPORATION

                                 By:
                                          -------------------------------------

<PAGE>

                                 PROMISSORY NOTE
                                  (this "NOTE")

US$9,926,963.73                                                JANUARY 29, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of nine million nine hundred twenty-six
thousand nine hundred sixty-three dollars and seventy-three cents
(US$9,926,963.73) (the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the
United States of America with interest on the principal amount outstanding from
time to time to be computed from the date hereof until such principal amount is
paid in full at an annual rate equal to the lesser of (i) the maximum
non-usurious rate permitted by applicable law and (ii) eight percent and one
hundred and twenty-seven thousandths of a percent (8.127%) calculated monthly on
a semi-annual basis (the "INTEREST RATE"), said Original Principal Amount and
interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2008 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.

<PAGE>

                                     - 2 -

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have

<PAGE>

                                     - 3 -

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the

<PAGE>

                                     - 4 -

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.

<PAGE>

                                     - 5 -

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                 BORROWER

                                 NB FINANCE, LTD.

                                 By:
                                          -------------------------------------

                                 LENDER

                                 NB CAPITAL CORPORATION

                                 By:
                                          -------------------------------------

<PAGE>
                                 PROMISSORY NOTE
                                  (this "NOTE")

US$7,178,371.80                                                 JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of seven million one hundred
seventy-eight thousand three hundred seventy-one dollars and eighty cents
(US$7,178,371.80) (the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the
United States of America with interest on the principal amount outstanding from
time to time to be computed from the date hereof until such principal amount is
paid in full at an annual rate equal to the lesser of (i) the maximum
non-usurious rate permitted by applicable law and (ii) eight percent and
ninety-seven thousandths of a percent (8.097%) calculated monthly on a
semi-annual basis (the "INTEREST RATE"), said Original Principal Amount and
interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on January 15, 2009 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.
<PAGE>
                                      -2-

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have
<PAGE>
                                      -3-

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the
<PAGE>
                                      -4-

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.
<PAGE>
                                      -5-

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                           BORROWER

                           NB FINANCE, LTD.

                           By:   ______________________________

                           LENDER

                           NB CAPITAL CORPORATION

                           By:   ______________________________
<PAGE>
                                 PROMISSORY NOTE
                                  (this "NOTE")

US$2,760,257.31                                                 JANUARY 25, 2002

FOR VALUE RECEIVED, NB FINANCE, LTD., a Bermuda corporation, having its
registered office in Clarendon House, 2 Church Street, Hamilton, Bermuda
(hereinafter referred to as "BORROWER"), promises to pay to the order of NB
CAPITAL CORPORATION, a Maryland corporation, at its principal place of business
at 125 West 55th Street, New York, New York 10019 (hereinafter referred to as
"LENDER"), or at such other place as the holder thereof may from time to time
designate in writing, the principal sum of two million seven hundred sixty
thousand two hundred fifty-seven dollars and thirty-one cents (US$2,760,257.31)
(the "ORIGINAL PRINCIPAL AMOUNT") in lawful money of the United States of
America with interest on the principal amount outstanding from time to time to
be computed from the date hereof until such principal amount is paid in full at
an annual rate equal to the lesser of (i) the maximum non-usurious rate
permitted by applicable law and (ii) eight percent and ninety-four thousandths
of a percent (8.094%) calculated monthly on a semi-annual basis (the "INTEREST
RATE"), said Original Principal Amount and interest to be paid as follows:

(i)      With respect to each Interest Period, interest payments shall be paid
         in arrears on the fifteenth (15th) day of each calendar month
         immediately following such Interest Period; provided, however, that if
         such day is not a Business Day, interest payments shall be made on the
         immediately succeeding Business Day (the "INTEREST PAYMENT DATE").
         "INTEREST PERIOD" means each calendar month or portion thereof during
         the term of the Note or, in the case of the initial Interest Period,
         the date hereof through February 15, 2002. "BUSINESS DAY" means a day
         of the year on which banks are not required or authorized by law to
         close in Maryland, Bermuda and Quebec.

(ii)     The Original Principal Amount shall be due and payable, unless
         otherwise accelerated or prepaid in accordance with the terms of this
         Note or the Loan Agreement dated as of the date hereof, between
         Borrower and Lender (the "LOAN AGREEMENT"), on July 15, 2009 (the
         "MATURITY DATE") in whole.

         SECTION 1. Incorporation by Reference. All of the terms, covenants and
conditions contained in the Mortgage Loan Assignment Agreement and the Loan
Agreement with respect to the indebtedness evidenced by this Note are hereby
made a part of this Note to the same extent and with the same force as if they
were fully set forth herein.

         SECTION 2. Security. The indebtedness evidenced by this Note is secured
pursuant to that certain mortgage loan assignment agreement of even date
herewith (the "MORTGAGE LOAN ASSIGNMENT AGREEMENT"), assigning the mortgage
loans more particularly described therein as well as Borrower's interest in the
real property securing such Mortgage Loans (the "MORTGAGE LOANS") as security to
Lender, subject to a reassignment upon satisfaction in full of any indebtedness
evidenced by this Note.
<PAGE>
                                      -2-

         SECTION 3. Prepayment. The Original Principal Amount of this Note is
not subject to optional prepayment but is subject to mandatory prepayment prior
to the Maturity Date upon the terms and conditions specified in the Loan
Agreement.

         SECTION 4. Default and Acceleration. If an Event of Default (as defined
in the Loan Agreement), other than an Event of Default described in SECTION
6.1(G) of the Loan Agreement has occurred and is continuing, Lender may at any
time, in addition to any other rights or remedies available to it pursuant to
this Note, the Loan Agreement and the Mortgage Loan Assignment Agreement, or at
law or in equity, take such action, without notice or demand, that Lender deems
advisable to protect and enforce its rights against Borrower and in any of the
Collateral (as defined in the Loan Agreement), including, without limitation, by
notice to Borrower, declare the Debt to be forthwith due and payable, whereupon
such Debt shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by Borrower, and may enforce or avail itself of any or all rights or
remedies provided in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement against Borrower and/or the Collateral (including selling
the Mortgage Loans); and upon an Event of Default described in SECTION 6.1(G) of
the Loan Agreement, the Debt shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by Borrower. "DEBT" means (a) the outstanding principal
balance of this Note, (b) interest, default interest at the Default Rate, late
charges and other sums, as provided in this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, (c) all other monies agreed or provided to
be paid by Borrower in this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, and (d) all sums advanced and costs and expenses incurred
by Lender in connection with the Debt or any part thereof, any renewal,
extension, or change of or substitution of the Debt or any part thereof, or the
acquisition or perfection of the security therefor, whether made or incurred at
the request of Borrower or Lender.

         SECTION 5. Savings Clause. It is expressly stipulated and agreed to be
the intent of Borrower and Lender that this Note complies with the applicable
usury and other laws relating to this Note now or hereafter in effect. If any
such applicable laws render usurious any amount called for under this Note, or
contracted for, charged or received with respect to this Note, or if the
acceleration of the maturity of this Note or if any prepayment by Borrower
results in Borrower having paid any interest in excess of that permitted by
applicable law, then it is the express intent of the parties that all excess
amounts theretofore collected by Lender be refunded to Borrower, and the
provisions of this Note immediately be deemed reformed and the amounts
thereafter collected under this Note reduced, without the necessity of the
execution of any new document, so as to comply with the then applicable law, but
so as to permit the recovery of the fullest amount otherwise called for under
this Note.

         SECTION 6. Late Charges; Mortgage Default Interest Rate.

         (a) Subject to SECTION 5, in the event that any installment of interest
or principal shall become overdue for a period in excess of five (5) days, a
"late charge" in an amount equal to five percent (5%) of the amount so overdue
may be charged to Borrower by Lender for the purpose of defraying the expenses
incident to handling such delinquent payments. Subject to SECTION 5, such late
charge shall be in addition to, and not in lieu of, any other remedy Lender may
have
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                                      -3-

and is in addition to Lender's right to collect reasonable fees and charges of
any agents or attorneys which Lender may employ in connection with any default.

         (b) If Borrower shall default in any payment of principal or interest,
or any other amount owed by Borrower under this Note, the Loan Agreement or the
Mortgage Loan Assignment Agreement, Borrower shall pay interest on the unpaid
principal amount of this Note, payable in arrears on each Interest Payment Date
and on demand, at a rate per annum equal at all times to the lesser of (x) the
maximum non-usurious rate permitted by applicable law or (y) three percent (3%)
per annum above the applicable Interest Rate until such defaulted amount has
been paid by Borrower, together with interest thereon at the Default Rate.
Payment or acceptance of the increased rate as provided in this Section is not a
permitted alternative for timely payment and shall not constitute a waiver of a
Default or an Event of Default or an amendment to this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement and shall not otherwise prejudice or
limit any rights or remedies of Lender.

         SECTION 7. No Oral Change. This Note may not be modified, amended,
waived, extended, changed, discharged or terminated orally or by act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

         SECTION 8. Waivers. Except for any notices expressly provided for in
this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement,
Borrower and all others who may become liable for the payment of all or any part
of the Debt do hereby severally waive presentment and demand for payment, notice
of dishonor, protest and notice of protest and non-payment and all other notices
of any kind. No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof, and no alteration, amendment or
waiver of any provision of this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement between Lender or any other person or party shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other person or entity who may become liable for
the payment of all or any part of the Debt, under this Note, the Loan Agreement
or the Mortgage Loan Assignment Agreement. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of
Lender to take further action without further notice or demand as provided for
in this Note, the Loan Agreement or the Mortgage Loan Assignment Agreement. Any
failure of Lender to insist upon strict performance by Borrower of any of the
provisions of this Note, the Loan Agreement or the Mortgage Loan Assignment
Agreement shall not be deemed a waiver of any of the terms or provisions of this
Note, the Loan Agreement or the Mortgage Loan Assignment Agreement, and Lender
shall have the right thereafter to insist upon strict performance by Borrower of
any and all of them.

         SECTION 9. Non Recourse. Except as otherwise provided herein and the
Loan Agreement and the Mortgage Loan Assignment Agreement, Lender shall not
enforce the liability and obligation of Borrower to perform and observe the
obligations contained in this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement by any action or proceeding wherein a money judgment shall
be sought against Borrower, except that Lender may bring an action or proceeding
to enable Lender to enforce and realize upon this Note, the
<PAGE>
                                      -4-

Loan Agreement and the Mortgage Loan Assignment Agreement, and the interest in
the Mortgage Loans and in any Collateral (as defined in the Loan Agreement)
given to Lender created by this Note, the Loan Agreement or the Mortgage Loan
Assignment Agreement, provided, however, that any judgment in any action or
proceeding shall be enforceable against Borrower only to the extent of
Borrower's interest in the Mortgage Loans and other Collateral given to Lender.
The provisions of this Section shall not however (i) constitute a waiver,
release or impairment of any obligation evidenced or secured by this Note, the
Loan Agreement or the Mortgage Loan Assignment Agreement, (ii) affect the
validity or enforceability of any indemnity made in connection with this Note,
the Loan Agreement or the Mortgage Loan Assignment Agreement, or (iii) impair
the enforcement of the Mortgage Loan Assignment Agreement.

         SECTION 10. Authority. Borrower (and the undersigned representative of
Borrower, if any) represents that Borrower has full power, authority and legal
right to execute and deliver this Note, the Loan Agreement and the Mortgage Loan
Assignment Agreement and that this Note, the Loan Agreement and the Mortgage
Loan Assignment Agreement are valid and binding in accordance with their terms.

         SECTION 11. Applicable Law. This Note shall be governed, construed,
applied and enforced in accordance with the laws of Bermuda.

         SECTION 12. Counsel Fees. In the event that it should become necessary
to employ counsel to collect the Debt or to protect or foreclose the security
therefor, Borrower also agrees to pay all reasonable fees and expenses of
Lender, including, without limitation, reasonable attorney's fees for the
services of such counsel whether or not suit be brought.

         SECTION 13. Notices. All notices and other communications provided for
hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
Borrower, at its address c/o Codan Services Limited, Clarendon House, 2 Church
Street, Hamilton, HM 11 Bermuda, Attention: Roger Burgess; and if to Lender, at
its address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Executive Officer; with a copy to National Bank of Canada, as servicer of
Lender, at National Bank Tower, 600 de La Gauchetiere West, Montreal, Quebec H3B
4L2 or as to each other party, at such other address as shall be designated by
such party in a written notice to Borrower and Lender. All such notices and
communications shall, when mailed, telegraphed, telecopied or telexed, be
effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively.

         SECTION 14. Payment. Borrower shall make each payment, irrespective of
any right of counterclaim or set-off, not later than 11:00 a.m. (Eastern
Standard time) on each Interest Payment Date in United States dollars to Lender
at an account or accounts Lender may designate from time to time in same day
funds. All computations of interest and fees shall be made by Lender on the
basis of a year of 360 days consisting of twelve (12) months of thirty (30) days
each. Each determination by Lender of interest or fees hereunder shall be
conclusive and binding for all purposes, absent manifest error.
<PAGE>
                                      -5-

         IN WITNESS WHEREOF, Borrower has caused this instrument to be duly
executed as of the date in the year first above written.

                                BORROWER

                                NB FINANCE, LTD.

                                By:      _______________________________

                                LENDER

                                NB CAPITAL CORPORATION

                                By:      _______________________________<PAGE>
                                                                   EXHIBIT 10.30

                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 1 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :
                               - - - - - - - - - -

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 1 Loan (as defined in the Loan Agreement) a principal
amount of US$7,785,606.87 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 1 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.
<PAGE>

                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.
<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                          ASSIGNOR

                                          NB FINANCE, LTD.

                                          By:
                                                   ----------------------------
<PAGE>
                                      -9-

                                          ASSIGNEE

                                          NB CAPITAL CORPORATION

                                          By:
                                                   ----------------------------

                                          BANK

                                          NATIONAL BANK OF CANADA

                                          By:
                                                   ----------------------------

                                          By:
                                                   ----------------------------
<PAGE>
PROVINCE OF QUEBEC       )
                         )  ss.:
DISTRICT OF MONTREAL     )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                            ____________________________________
                                            NICOLE NOBERT, attorney
<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS
<PAGE>

                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 2 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 2 Loan (as defined in the Loan Agreement) a principal
amount of US$5,333,848.08 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 2 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                    ASSIGNOR

                                    NB FINANCE, LTD.

                                    By:
                                             -----------------------------------

<PAGE>
                                      -9-

                                    ASSIGNEE

                                    NB CAPITAL CORPORATION

                                    By:
                                             -----------------------------------

                                    BANK

                                    NATIONAL BANK OF CANADA

                                    By:
                                             -----------------------------------

                                    By:
                                             -----------------------------------

<PAGE>

PROVINCE OF QUEBEC                          )
                                            )  ss.:
DISTRICT OF MONTREAL                        )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                      ------------------------------------------
                                      NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 3 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 3 Loan (as defined in the Loan Agreement) a principal
amount of US$11,091,514.69 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 3 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE LOANS"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of this Assignment refer to the
corresponding paragraphs and subparagraphs of

<PAGE>
                                      -8-

this Assignment. All words used herein shall be construed to be of such gender
or number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                     ASSIGNOR

                                     NB FINANCE, LTD.

                                     By:
                                              ----------------------------------

<PAGE>
                                      -9-

                                     ASSIGNEE

                                     NB CAPITAL CORPORATION

                                     By:
                                              ----------------------------------

                                     BANK

                                     NATIONAL BANK OF CANADA

                                     By:
                                              ----------------------------------

                                     By:
                                              ----------------------------------

<PAGE>

PROVINCE OF QUEBEC                          )
                                            )  ss.:
DISTRICT OF MONTREAL                        )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                         ---------------------------------------
                                         NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 4 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                             W I T N E S S E T H :
                             - - - - - - - - - -

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 4 Loan (as defined in the Loan Agreement) a principal
amount of US$4,485,702.88 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 4 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1.       ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>

                                     - 2 -

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>

                                     - 3 -

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>

                                     - 4 -

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>

                                     - 5 -

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>

                                     - 6 -

         6.       FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>

                                     - 7 -

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>

                                     - 8 -

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                               ASSIGNOR

                               NB FINANCE, LTD.

                               By:
                                        ---------------------------------------

<PAGE>

                                     - 9 -

                               ASSIGNEE

                               NB CAPITAL CORPORATION

                               By:
                                        ---------------------------------------

                               BANK

                               NATIONAL BANK OF CANADA

                               By:
                                        ---------------------------------------

                               By:
                                        ---------------------------------------

<PAGE>

PROVINCE OF QUEBEC               )
                                 )  ss.:
DISTRICT OF MONTREAL             )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                              ---------------------------------
                                              NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>

                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 5 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 5 Loan (as defined in the Loan Agreement) a principal
amount of US$7,060,741.94 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 5 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                  1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.

<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been

<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;

<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.

<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such

<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of

<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                 ASSIGNOR

                                 NB FINANCE, LTD.

                                 By:
                                          --------------------------------------

<PAGE>
                                      -9-

                                 ASSIGNEE

                                 NB CAPITAL CORPORATION

                                 By:
                                          --------------------------------------

                                 BANK

                                 NATIONAL BANK OF CANADA

                                 By:
                                          --------------------------------------

                                 By:
                                          --------------------------------------

<PAGE>

PROVINCE OF QUEBEC                          )
                                            )  ss.:
DISTRICT OF MONTREAL                        )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                        ----------------------------------------
                                        NICOLE NOBERT, attorney

<PAGE>

                                    EXHIBIT A

                                 MORTGAGE LOANS

<PAGE>
                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 6 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 6 Loan (as defined in the Loan Agreement) a principal
amount of US$7,066,547.59 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 6 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.
<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its

<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.
<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of this Assignment refer to the
corresponding paragraphs and subparagraphs of

<PAGE>
                                      -8-

this Assignment. All words used herein shall be construed to be of such gender
or number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                 ASSIGNOR

                                 NB FINANCE, LTD.

                                 By:
                                       ---------------------------
<PAGE>
                                      -9-

                                 ASSIGNEE

                                 NB CAPITAL CORPORATION

                                 By:
                                       ---------------------------

                                 BANK

                                 NATIONAL BANK OF CANADA

                                 By:
                                       ---------------------------

                                 By:
                                       ---------------------------
<PAGE>
PROVINCE OF QUEBEC    )
                      )  ss.:
DISTRICT OF MONTREAL  )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                           _____________________________________
                                           NICOLE NOBERT, attorney
<PAGE>
                                    EXHIBIT A

                                 MORTGAGE LOANS
<PAGE>
                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 7 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 7 Loan (as defined in the Loan Agreement) a principal
amount of US$10,058,418.73 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 7 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.
<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(B) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.
<PAGE>
                                       -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of
<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                        ASSIGNOR

                                        NB FINANCE, LTD.

                                        By:
                                             -------------------------------
<PAGE>
                                      -9-

                                        ASSIGNEE

                                        NB CAPITAL CORPORATION

                                        By:
                                             -------------------------------

                                        BANK

                                        NATIONAL BANK OF CANADA

                                        By:
                                             -------------------------------

                                        By:
                                             -------------------------------
<PAGE>
PROVINCE OF QUEBEC    )
                      )  ss.:
DISTRICT OF MONTREAL  )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                             __________________________________
                                             NICOLE NOBERT, attorney
<PAGE>
                                    EXHIBIT A

                                 MORTGAGE LOANS
<PAGE>
                  JUNE 2002 MORTGAGE LOAN ASSIGNMENT AGREEMENT
                            (JUNE 2002 SERIES 8 LOAN)

         THIS MORTGAGE LOAN ASSIGNMENT AGREEMENT (this "ASSIGNMENT") made as of
June 20, 2002, constitutes an assignment from NB FINANCE, LTD., a Bermuda
corporation (the "ASSIGNOR"), to NB CAPITAL CORPORATION, a Maryland corporation,
(the "ASSIGNEE"), and an agreement by and among Assignor, Assignee and NATIONAL
BANK OF CANADA, a Canadian chartered bank, as custodian and servicer on behalf
of Assignee (the "BANK").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, Assignor and Assignee have entered into a certain Loan
Agreement, as of June 20, 2002 (such Loan Agreement, as it may be amended or
modified from time to time, the "LOAN AGREEMENT"), under the terms of which
Assignee has, subject to the terms and conditions thereof, lent with respect to
the June 2002 Series 8 Loan (as defined in the Loan Agreement) a principal
amount of US$11,338,982.20 to Assignor, as of June 20, 2002.

         WHEREAS, to evidence and secure its obligations with respect to the
June 2002 Series 8 Loan under the Loan Agreement, Assignor shall execute and
deliver certain Loan Documents (as defined in the Loan Agreement).

         WHEREAS, Assignee has required and Assignor has agreed that Assignor
shall assign all of its right, title and interest in, to and under the mortgage
loans listed on Exhibit A attached hereto (the "MORTGAGE Loans"), each such
Mortgage Loan evidenced by certain agreements, deeds and proceedings (the
"MORTGAGE LOAN DOCUMENT") to Assignee and permit Assignee or its agents, to
administer, perform and enforce the Mortgage Loans upon the terms and conditions
hereinafter set forth.

         NOW, THEREFORE, in consideration of the transactions hereinabove
described, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. ASSIGNMENT.

                  (a) Assignor as beneficial owner hereby assigns, charges and
         sets over to Assignee, and its successors and assigns, without recourse
         to Assignor, all of Assignor's right, title and interest now or
         hereafter acquired in, to and under the Mortgage Loans and all of the
         real property (together with any proceeds (including, but not limited
         to, any insurance, casualty and mortgage insurance proceeds), products,
         substitutions, additions or replacements of any collateral mortgaged,
         assigned or pledged under the Mortgage Loans) described therein
         (collectively, the "COLLATERAL").

                  (b) Assignee hereby accepts the foregoing assignment, on
         behalf of itself and its respective successors and assigns.
<PAGE>
                                      -2-

                  (c) Assignor hereby appoints Assignee the true and lawful
         attorney-in-fact of Assignor, with full power of substitution, in its
         own name, both before and/or after any Event of Default (as defined in
         the Loan Agreement), to take any action under or in connection with the
         Mortgage Loans. This power shall be deemed to be coupled with an
         interest and shall be irrevocable.

                  (d) Assignor agrees that the assignment herein provided is
         absolute and from and after the date hereof, subject to SECTION 16,
         Assignee shall obtain legal title to the Mortgage Loans and Assignor
         shall not have, and shall not exercise, any rights in and to the
         Collateral, including, without limitation, any rights as payee,
         mortgagee or assignee under any of the Mortgage Loan Documents, or any
         rights to receive any payments or to exercise or omit to exercise,
         waive, compromise or make any other actions or determinations or give
         or receive any notices under or in respect of the Mortgage Loan
         Documents, except such as Assignee may direct in order to better
         effectuate the rights, remedies and security herein provided or
         contemplated.

                  (e) Assignee, as payee under the Mortgage Loans, shall have
         the right, both before and after an Event of Default (as defined in the
         Loan Agreement) to collect and receive all payments of principal and
         interest and any other amounts due and payable under the Mortgage Loan
         Documents. On each Interest Payment Date (as defined in the Loan
         Agreement), Assignee shall apply the US Dollar Equivalent (as defined
         in the Loan Agreement) of the funds collected under the Mortgage Loan
         Documents (i) first, to the payment of any interest due and payable
         under the Loan Documents, (ii) second, to the payment of any scheduled
         or unscheduled principal payments due and payable under the Loan
         Documents, (iii) third, to the payment of any Excess Loan Amount (as
         defined in the Loan Agreement) and (iv) fourth, to any other amounts
         due and payable under the Loan Documents and shall, to the extent
         available after payment of the amounts in clauses (i), (ii), (iii) and
         (iv) above, remit the balance of any collections or payments to
         Assignor.

                  TO HAVE AND TO HOLD the same unto Assignee, and its successors
         and assigns.

         2. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants as follows:

                  (a) Assignor (i) is the sole owner of the Mortgage Loans and
         such ownership is free and clear of any lien, security interest or
         other encumbrance, (ii) has not granted any participation or other
         interest or assignment, other option or rights to the Mortgage Loans,
         other than to Assignee, and (iii) has not pledged, collaterally
         assigned or otherwise hypothecated any interest therein or agreed to do
         so, other than to Assignee.

                  (b) The registered office and principal place of business of
         the Assignor is located in Hamilton, Bermuda.

                  (c) The execution, delivery and performance of this Assignment
         by Assignor are within Assignor's power and authority, have been duly
         authorized by all necessary action and do not and will not (i) require
         any authorization which has not been
<PAGE>
                                      -3-

         obtained, (ii) contravene the articles of incorporation or by-laws of
         the Assignor, any applicable laws or any agreement or restriction
         binding on or affecting Assignor or its property, or (iii) result in or
         require the creation or imposition of any lien or right of others upon
         or with respect to any property now or in the future owned by Assignor
         (other than liens created in favor of Assignee hereunder). No
         authorization which has not been obtained is required for the
         assignment hereunder or the enforcement by Assignee of its remedies
         under this Assignment. This Assignment, when executed and delivered,
         will constitute the legal, valid and binding obligation of Assignor
         enforceable against Assignor in accordance with its terms, except as
         enforcement may be limited by bankruptcy, insolvency or other similar
         laws affecting the rights of creditors generally.

                  (d) The originals (including duplicate originals, if any) of
         all the Mortgage Loan Documents, have been simultaneously herewith
         delivered to the Bank as custodian for Assignee (except for any loan
         documents which have been or will be submitted to public officials for
         filing or recording and policies of title or other insurance which have
         not yet been received by Assignor, which in either case will be
         delivered directly to the Bank or forthwith turned over to the Bank as
         and when received by the Assignor).

         3. SERVICING. Until the satisfaction in full of all obligations of
Assignor under the Loan Agreement shall have occurred:

                  (a) Assignee or its agents, shall have the sole power and
         authority to do or refrain from doing any act under or in connection
         with the Mortgage Loan Documents and the property described therein
         and/or this Assignment, including, without limitation, the sole power
         and authority in its sole discretion, to (i) advance funds thereunder,
         (ii) determine that all conditions to the advance of funds thereunder
         have been satisfied (or to waive some or all of the conditions to
         advance thereunder), and (iii) determine that a default or event of
         default has occurred thereunder and to give any notice, demand or
         protest in respect thereof;

                  (b) Assignor acknowledges that (i) the Bank, as agent of
         Assignee, shall be named as mortgagee and loss payee on all fire,
         extended coverage and other hazard insurance policies required under
         the Mortgage Loan Documents, to the extent set forth therein and (ii)
         Assignor and any mortgage and all other parties obligated to Assignor
         under the Mortgage Loan Documents shall deal solely with the Bank,
         acting on behalf of Assignee, under the Mortgage Loan Documents and
         this Assignment, Assignor and all other parties so obligated shall be
         entitled to rely on their actions so taken with respect to the Bank and
         upon the action taken by the Bank, acting on behalf of Assignee, with
         respect to them until the satisfaction in full of all obligations of
         Assignor under the Loan Agreement or until Assignee shall appoint
         another person to act on its behalf (or otherwise revoke the Bank's
         authority to act on behalf of Assignee);

                  (c) Assignor agrees that Assignee or it agents shall have the
         full power and authority, in its discretion, to take, or defer from
         taking, any and all actions with respect to the administration and
         enforcement of the Loan Documents, in order to effectuate the purposes
         contemplated herein and therein, including the right, power and
         authority to exercise any and all of the rights, remedies and options
         reserved to Assignee or its
<PAGE>
                                      -4-

         agents in, or given by law or equity to Assignee or it agents as holder
         of the Mortgage Loan Documents, to enforce the Mortgage Loan Documents,
         and to take such other actions for the protection and preservation of
         the lien of the Mortgages, and protect and preserve all property
         described therein should Assignee or its agents become the owner
         thereof by foreclosure or otherwise as may be necessary and/or
         appropriate.

         4. EVENT OF DEFAULT: REMEDIES. If an event of default shall occur under
any Mortgage Loan (an "EVENT OF DEFAULT"), Assignee or its agents shall have all
the rights and remedies which would be available to Assignor (but for this
Assignment) under the Mortgage Loan Documents as set forth therein and as
permitted thereunder or otherwise available to Assignor (but for this
Assignment) in law or in equity, including, without limitation but in each
instance to the extent provided in and as conditioned by the Mortgage Loan
Documents, the right:

                  (a) To accelerate the maturity of such Mortgage Loan and all
         other amounts due under the applicable Mortgage Loan Documents and to
         declare the same to be or become immediately due and payable and
         enforce payment thereof upon the happening of any Event of Default by
         the mortgagor under such Mortgage Loan, as permitted therein, after the
         giving of such applicable notice and/or the passage of such time as may
         be provided for in such Mortgage Loan;

                  (b) To take such steps, institute and prosecute such actions
         and proceedings and do or omit such acts which, in its judgment, are
         advisable in order to enforce payment of all amounts due under the
         Mortgage Loan Documents and realize upon the security provided
         therefor, including, without limitation, (i) to select any of the
         remedies available under the Mortgage Loan Documents or otherwise
         available at law or in equity, (ii) to enter into or consent to any
         amendment, modification and/or extension of the Mortgage Loan
         Documents, (iii) to enter into or consent to any release, substitution
         or exchange of all or any part of any security for such Mortgage Loan,
         (iv) to waive any claim against the mortgagor or any person or entity
         obligated under the Loan Documents and (v) to defer, extend, increase
         or decrease any payment, instalment or other sum required or on account
         of such Mortgage Loan and/or the applicable Mortgage Loan Documents;

                  (c) To discontinue any such action or proceeding commenced as
         provided in SUBSECTION 4(b) above or to stay, delay, defer, discontinue
         or withdraw the same;

                  (d) To enter or cause to be entered a bid at any foreclosure
         sale of the property mortgaged securing such Mortgage Loan pursuant to
         the applicable Mortgage Loan Documents (each such property a "MORTGAGED
         PROPERTY") or any portion thereof;

                  (e) To acquire title in and to any Mortgaged Property or any
         portion thereof in any foreclosure proceeding in its name or the name
         of its nominee or designee;

                  (f) To accept a deed to any Mortgaged Property or any portion
         thereof in lieu of foreclosure and to release the mortgagor from its
         obligations under the Mortgage Loan in consideration of such deed in
         lieu of foreclosure;
<PAGE>
                                      -5-

                  (g) To operate, manage and/or develop, or hire agents to
         operate, manage and/or develop, any foreclosed or acquired Mortgaged
         Property and to lease all or any portion thereof upon such terms and
         conditions as it deems to be in the best interests of Assignee;

                  (h) To sell any foreclosed or acquired Mortgaged Property or
         any portion thereof, upon such terms as it may deem to be in the best
         interests of Assignee, including, without limitation, the right to take
         back one or more purchase money notes and mortgages;

                  (i) To make advances for the payment for taxes, assessments,
         water, sewer and vault charges, and all interest and penalties thereon,
         insurance premiums and other similar or dissimilar items relating to
         any Mortgaged Property, to the extent permitted by the applicable
         Mortgage Loan Documents;

                  (j) To make advances for the account of the mortgagor under
         such Mortgage Loan, to the extent permitted by the applicable Mortgage
         Loan Documents;

                  (k) To collect, sue for, receive and, subject to applicable
         provisions of law, settle or compromise any claims for loss or damage
         covered by insurance and/or condemnation of all or any portion of any
         Mortgaged Property and to exercise its discretion in the proper
         application and disposition of the net proceeds of such insurance
         and/or condemnation award;

                  (l) To sell the Mortgage Loan at a fair market value; and

                  (m) Generally to do and take any and all actions which, but
         for this Assignment, the Assignor would be entitled to do and take
         under or with respect to the applicable Mortgage Loan Documents; it
         being understood and agreed that this Assignment does not confer upon
         the Assignee any greater rights with respect to the Mortgage Loan
         Documents than granted to Assignor or expand or extend such rights, the
         purpose of this Assignment being, inter alia, to assign, transfer and
         allocate such rights and not to create new rights against any mortgagor
         under the applicable Mortgage Loan, or to limit the rights or expand
         the obligations of any such mortgagor, and in the event of any conflict
         between the provisions of this Assignment and the provisions of the
         Mortgage Loan Documents, the provisions of the Mortgage Loan Documents,
         shall control.

         5. POSSESSION OF MORTGAGE LOAN DOCUMENTS. From and after the date of
this Assignment, the Bank shall no longer hold the duly executed originals of
the Mortgage Loan Documents on its own behalf or as custodian for Assignor, but
shall hold the same as custodian for Assignee, pursuant to the terms of (i) the
custodial agreement dated as of June 20, 2002 by and between the Bank and
Assignee and (ii) the Amended and Restated Servicing Agreement dated as of June
28, 2001 by and between the Bank and Assignee.
<PAGE>
                                      -6-

         6. FURTHER ASSURANCES.

                  (a) Assignor agrees that at any time and from time to time, at
         the expense of Assignor, Assignor will promptly execute and deliver all
         further instruments and documents, and take all further action, that
         may be necessary or desirable, or that Assignee may reasonably request,
         to effectuate the purpose or provisions of this Assignment or to
         confirm or perfect any transaction described or contemplated herein or
         to enable Assignee or its agents to exercise and enforce its rights and
         remedies hereunder with respect to any Mortgage Loan Document. Assignor
         and Assignee agree that Assignor shall reasonably cooperate (i) in
         preparing, executing, delivering or having prepared, delivered and
         executed by July 1, 2002 such documents or instruments which are
         necessary or desirable to register legal title to each Mortgage Loan in
         the name of Assignee in the appropriate land registry or other office
         of public record, and (ii) in registering legal title to each Mortgage
         Loan in the name of Assignee in the event the credit rating of the Bank
         (or such other agent as may hold the Mortgage Loans on behalf of
         Assignee) will fall below either "BBB-" by Standard & Poor's Rating
         Services or "Baa" by Moody's Investor Service, Inc.

                  (b) Assignor hereby authorizes Assignee or its agents to file
         and record one or more financing or continuation statements and
         amendments thereto, relative to all or any part of the Loan Documents
         without the signature of Assignor where permitted by the law.

         7. ASSIGNMENT. This Assignment shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns.

         8. NOTICES. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication) and
mailed, telegraphed, telecopied, telexed or delivered, if to Assignor, at its
address at c/o Codan Services Limited, Clarendon House, 2 Church Street,
Hamilton, HM 11, Bermuda, Attention: Roger Burgess; and if to Assignee, at its
address at 125 West 55th Street, New York, New York 10019, Attention: Chief
Financial Officer; or as to each other party, at such other address as shall be
designated by such party in a written notice to Assignee and Assignor. All such
notices and communications shall, when mailed, telegraphed, telecopied or
telexed, be effective when deposited in the mails, delivered to the telegraph
company, transmitted by telecopier or confirmed by telex answerback,
respectively.

         9. GOVERNING LAW. This Assignment and Agreement shall be governed by
and construed in accordance with the laws of Bermuda.

         10. JURISDICTION.

                  (a) Each of the parties hereto hereby irrevocably and
         unconditionally submits, for itself and its property, to the
         nonexclusive jurisdiction of any court sitting in Bermuda, and any
         appellate court thereof, in any action or proceeding arising out of or
         relating to this Assignment, or for recognition or enforcement of any
         judgment, and each of the parties hereto hereby irrevocably and
         unconditionally agrees that all claims in respect of any such action or
         proceeding may be heard and determined in any such
<PAGE>
                                      -7-

         Bermuda court. Each of the parties hereto agrees that a final judgment
         in any such action or proceeding shall be conclusive and may be
         enforced in other jurisdictions by suit on the judgment or in any other
         manner provided by law. Nothing in this Assignment shall affect any
         right that any party may otherwise have to bring any action or
         proceeding relating to this Assignment in the courts of any
         jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection that it may now or hereafter have to the laying of venue of
         any suit, action or proceeding arising out of or relating to this
         Assignment in any Bermuda court. Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of an inconvenient forum to the maintenance of such action or
         proceeding in any such court. Assignee hereby irrevocably appoints
         Codan Services Limited, Clarendon House, Church Street, Hamilton HM CX,
         Bermuda ("ASSIGNEE'S PROCESS AGENT"), as its agent to receive, on
         behalf of Assignee, service of copies of the summons and complaint and
         any other process which may be served in any such action or proceeding.
         Any such service may be made by mailing or delivering a copy of such
         process, if to Assignee, in care of Assignee's Process Agent at
         Assignee's Process Agent's above address. Assignee hereby irrevocably
         authorizes and directs its respective process agent to accept such
         service on its behalf.

         11. COUNTERPARTS. This Assignment may be executed in one or more
counterparts, each of which shall be considered an original. Delivery of an
executed counterpart of a signature page to this Assignment by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment.
Any delivery of a counterpart signature by telecopier shall, however, be
promptly followed by delivery of a manually executed counterpart.

         12. CHANGE AND MODIFICATIONS. This Assignment may not be changed,
terminated or modified orally or in any manner other than by an agreement in
writing signed by the party sought to be charged therewith.

         13. NO WAIVER. No waiver by any party of any provision of this
Assignment or any right, remedy or option hereunder shall be controlling, nor
shall it prevent or estop such party from thereafter enforcing such provision,
right, remedy or option, and the failure or refusal of any party hereto to
insist in any one or more instances upon the strict performance of any of the
terms or provisions of this Assignment by any other party hereto shall not be
construed as a waiver or relinquishment for the future of any such term or
provision, but the same shall continue in full force and effect, it being
understood and agreed that the rights, remedies and options of Assignee or the
Bank, acting as servicer on behalf of Assignee, hereunder are and shall be
cumulative and in addition to all other rights, remedies and options of Assignee
or the Bank, acting as servicer on behalf of Assignee, in law or in equity or
under any other agreement.

         14. RECITALS. All of the recitals hereinabove set forth are
incorporated in this Assignment by reference.

         15. PARAGRAPH HEADINGS, ETC. The headings of paragraphs contained in
this Assignment are provided for convenience only. They form no part of this
Assignment and shall not affect its construction or interpretation. All
references to paragraphs or subparagraphs of
<PAGE>
                                      -8-

this Assignment refer to the corresponding paragraphs and subparagraphs of this
Assignment. All words used herein shall be construed to be of such gender or
number as the circumstances require. This "Assignment" shall each mean this
Assignment as a whole and as the same may from time to time hereafter be amended
or modified. The words "herein," "hereby," "hereof," "hereto," "hereinabove" and
"hereinbelow," and words of similar import, refer to this Assignment as a whole
and not to any particular paragraph, clause or other subdivision hereof, unless
otherwise specifically noted.

         16. TERMINATION. Upon satisfaction in full of all obligations of
Assignor under the Loan Documents, this Assignment shall terminate and be of no
further force and effect and Assignee shall execute documents evidencing the
assignment of any outstanding Mortgage Loans to Assignor (without recourse),
provided however, that in the event an Event of Default under any Mortgage Loan
occurs, Assignee's obligation to assign such defaulted Mortgage Loan back to
Assignor as provided in this Section shall terminate, provided, further,
however, that to the extent any amounts collected by Assignee with respect to
such defaulted Mortgage Loan exceed an amount equal to the sum of (i) the amount
by which the principal amount of the Loan secured by such defaulted Mortgage
Loan was reduced pursuant to Section 2.04(b)(B) of the Loan Agreement, (ii) any
interest accrued on such amount at the applicable Interest Rate (as defined in
the Loan Agreement) compounded monthly, and (iii) the amount of any collection
expenses (including legal fees), such excess shall be applied against the Excess
Loan Amount and any remaining amount shall be remitted to Assignor.

         17. PARTIAL INVALIDITY. In case any provision in this Assignment 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.

         18. NATIONAL HOUSING ACT. Subject to the terms and provisions of the
Servicing Agreement referred to above, the Mortgage Loans hereby assigned will
be administered and serviced by the Bank, as agent of Assignee, in accordance
with the National Housing Act (Canada) and National Housing Regulations
(Canada).

         IN WITNESS WHEREOF, the Assignor and each other party hereto has duly
executed the Mortgage Loan Assignment Agreement as of the twentieth (20th) day
of June, Two thousand and two (2002).

                                                ASSIGNOR

                                                NB FINANCE, LTD.

                                                By:
                                                     --------------------------
<PAGE>
                                      -9-

                                                ASSIGNEE

                                                NB CAPITAL CORPORATION

                                                By:
                                                     --------------------------

                                                BANK

                                                NATIONAL BANK OF CANADA

                                                By:
                                                     --------------------------

                                                By:
                                                     --------------------------
<PAGE>
PROVINCE OF QUEBEC      )
                        )  ss.:
DISTRICT OF MONTREAL    )

         On the sixth (6th) day of November, Two thousand and two (2002), before
me personally came SOPHIE CLERMONT to me known, who, being by me duly sworn, did
depose and say that she resides at 383 Claremont Street, in the City of
Montreal, Province of Quebec, H3Z 2P6, that she is the Assistant Secretary of NB
Finance, Ltd., the corporation described in and which executed the foregoing
instrument; and that she signed her name thereto by authority of the board of
directors of said corporation.

                                       _____________________________________
                                       NICOLE NOBERT, attorney
<PAGE>
                                    EXHIBIT A

                                 MORTGAGE LOANS

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