Document:

<PAGE>

                                                                  EXECUTION COPY

                                                                     EXHIBIT 4.1

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
                                    Depositor

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION
                                     Trustee

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

                                 TRUST AGREEMENT

                          Dated as of November 1, 2003

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

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                               SERIES MLCC 2003-G

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   Page
<S>                                                                                                                <C>
ARTICLE I             DEFINITIONS...............................................................................    18

         Section 1.01          Definitions......................................................................    18

         Section 1.02          Calculations Respecting Mortgage Loans...........................................    53

ARTICLE II            DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES............................................    55

         Section 2.01          Creation and Declaration of Trust Fund; Conveyance of Mortgage Loans.............    55

         Section 2.02          Acceptance of Trust Fund by Trustee; Review of Documentation for Trust Fund......    57

         Section 2.03          Representations and Warranties of the Depositor..................................    58

         Section 2.04          Discovery of Breach; Repurchase or Substitution of Mortgage Loans................    60

         Section 2.05          Grant Clause.....................................................................    63

ARTICLE III           THE CERTIFICATES..........................................................................    64

         Section 3.01          The Certificates.................................................................    64

         Section 3.02          Registration.....................................................................    65

         Section 3.03          Transfer and Exchange of Certificates............................................    65

         Section 3.04          Cancellation of Certificates.....................................................    69

         Section 3.05          Replacement of Certificates......................................................    69

         Section 3.06          Persons Deemed Owners............................................................    69

         Section 3.07          Temporary Certificates...........................................................    71

         Section 3.08          Appointment of Paying Agent......................................................    71

         Section 3.09          Book-Entry Certificates..........................................................    71

ARTICLE IV            ADMINISTRATION OF THE TRUST FUND..........................................................    73

         Section 4.01          Custodial Accounts; Distribution Account.........................................    73

         Section 4.02          Reports to Trustee and Certificateholders........................................    74

ARTICLE V             DISTRIBUTIONS TO HOLDERS OF CERTIFICATES..................................................    76

         Section 5.01          Distributions Generally..........................................................    76

         Section 5.02          Distributions from the Distribution Account......................................    77

         Section 5.03          Allocation of Losses.............................................................    81

         Section 5.04          Advances.........................................................................    82

         Section 5.05          [RESERVED].......................................................................    82
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                <C>
         Section 5.06          [RESERVED].......................................................................    82

ARTICLE VI            CONCERNING THE TRUSTEE; EVENTS OF DEFAULT.................................................    83

         Section 6.01          Duties of Trustee................................................................    83

         Section 6.02          Certain Matters Affecting the Trustee............................................    85

         Section 6.03          Trustee Not Liable for Certificates..............................................    86

         Section 6.04          Trustee May Own Certificates.....................................................    87

         Section 6.05          Eligibility Requirements for Trustee.............................................    87

         Section 6.06          Resignation and Removal of Trustee...............................................    87

         Section 6.07          Successor Trustee................................................................    88

         Section 6.08          Merger or Consolidation of Trustee...............................................    88

         Section 6.09          Appointment of Co-Trustee, Separate Trustee or Custodian.........................    89

         Section 6.10          Authenticating Agents............................................................    90

         Section 6.11          Indemnification of Trustee.......................................................    91

         Section 6.12          Fees and Expenses of the Trustee.................................................    92

         Section 6.13          Collection of Monies.............................................................    92

         Section 6.14          Events of Default; Trustee To Act; Appointment of Successor......................    92

         Section 6.15          Additional Remedies of Trustee Upon Event of Default.............................    94

         Section 6.16          Waiver of Defaults...............................................................    94

         Section 6.17          Notification to Holders..........................................................    94

         Section 6.18          Directions by Certificateholders and Duties of Trustee During Event of Default...    94

         Section 6.19          Preparation of Tax Returns and Other Reports.....................................    95

         Section 6.20          Annual Certificate by Trustee....................................................    96

ARTICLE VII           PURCHASE OF MORTGAGE LOANS AND TERMINATION OF THE TRUST FUND..............................    96

         Section 7.01          Purchase of Mortgage Loans; Termination of Trust Fund Upon Purchase or
                               Liquidation of All Mortgage Loans................................................    96

         Section 7.02          Procedure Upon Termination of Trust Fund.........................................    97

         Section 7.03          Additional Trust Fund Termination Requirements...................................    98

         Section 7.04          [RESERVED].......................................................................    99

ARTICLE VIII          RIGHTS OF CERTIFICATEHOLDERS..............................................................   100

         Section 8.01          Limitation on Rights of Holders..................................................   100

         Section 8.02          Access to List of Holders........................................................   101
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                                <C>
         Section 8.03          Acts of Holders of Certificates..................................................   101

ARTICLE IX            [RESERVED]................................................................................   102

ARTICLE X             REMIC ADMINISTRATION......................................................................   102

         Section 10.01         REMIC Administration.............................................................   102

         Section 10.02         Prohibited Transactions and Activities...........................................   106

         Section 10.03         Indemnification with Respect to Prohibited Transactions or Loss of
                               REMIC Status.....................................................................   106

         Section 10.04         REO Property.....................................................................   106

ARTICLE XI            MISCELLANEOUS PROVISIONS..................................................................   107

         Section 11.01         Binding Nature of Agreement; Assignment..........................................   107

         Section 11.02         Entire Agreement.................................................................   107

         Section 11.03         Amendment........................................................................   107

         Section 11.04         Voting Rights....................................................................   109

         Section 11.05         Provision of Information.........................................................   109

         Section 11.06         Governing Law....................................................................   110

         Section 11.07         Notices..........................................................................   110

         Section 11.08         Severability of Provisions.......................................................   110

         Section 11.09         Indulgences; No Waivers..........................................................   110

         Section 11.10         Headings Not To Affect Interpretation............................................   110

         Section 11.11         Benefits of Agreement............................................................   111

         Section 11.12         Special Notices to the Rating Agencies...........................................   111

         Section 11.13         Conflicts........................................................................   112

         Section 11.14         Counterparts.....................................................................   112

         Section 11.15 No Petitions.............................................................................   112
</TABLE>

                                      iii

<PAGE>

ATTACHMENTS

Exhibit A       Forms of Certificates
Exhibit B       Form of Residual Certificate Transfer Affidavit (Transferee)
Exhibit C       Form of Residual Certificate Transfer Affidavit (Transferor)
Exhibit D       Mortgage Loan Servicing Agreement
Exhibit E       Mortgage Loan Purchase and Sale Agreement
Exhibit F       List of Limited Purpose Surety Bonds
Exhibit G       Form of Rule 144A Transfer Certificate
Exhibit H       Form of Purchaser's Letter for Institutional Accredited
                Investors
Exhibit I       Form of ERISA Transfer Affidavit
Exhibit J       Form of Letter of Representations with the Depository Trust
                Company
Exhibit K       Form of Initial Certification
Exhibit L       Form of Final Certification
Exhibit M       List of Servicing Officers
Exhibit N       Form of Request for Release
Exhibit O       Custody Agreement (without Exhibits)
Exhibit P       Amendment No. 1 to Custodial Agreement (without Exhibits)
Exhibit Q       Officer's Certificate - Trustee
Exhibit R       [Reserved]
Schedule A      Mortgage Loan Schedule
Schedule B      Mortgage Loan Representations and Warranties of the Seller

                                       iv

<PAGE>

         This TRUST AGREEMENT, dated as of November 1, 2003 (the "Agreement"),
by and among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware corporation, as
depositor (the "Depositor"), and WELLS FARGO BANK MINNESOTA, NATIONAL
ASSOCIATION, as Trustee (the "Trustee"), and acknowledged by MERRILL LYNCH
CREDIT CORPORATION a Delaware corporation, as seller (the "Seller"), for
purposes of Section 2.04.

                              PRELIMINARY STATEMENT

         The Depositor has acquired the Mortgage Loans from the Seller and at
the Closing Date is the owner of the Mortgage Loans and the other property being
conveyed by the Depositor to the Trustee hereunder for inclusion in the Trust
Fund. On the Closing Date, the Depositor will acquire the Certificates from the
Trustee as consideration for the Depositor's transfer to the Trust Fund of the
Mortgage Loans and the other property constituting the Trust Fund. The Depositor
has duly authorized the execution and delivery of this Agreement to provide for
the conveyance to the Trustee of the Mortgage Loans and the other property
constituting the Trust Fund. All covenants and agreements made by the Seller in
the Mortgage Loan Purchase and Sale Agreement, and in this Agreement and by the
Depositor and the Trustee herein with respect to the Mortgage Loans and the
other property constituting the Trust Fund are for the benefit of the Holders
from time to time of the Certificates. The Depositor and the Trustee are
entering into this Agreement, and the Trustee is accepting the Trust Fund
created hereby, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged.

         As provided herein, the Trustee shall elect that the Trust Fund be
treated for federal income tax purposes as comprising five real estate mortgage
investment conduits (each a "REMIC" or, in the alternative, "REMIC 1," "REMIC
2," "REMIC 3," "REMIC 4" and the "Upper Tier REMIC," respectively) in a tiered
structure. The Certificates, other than the Class A-R Certificate, shall
represent ownership of regular interests in the Upper Tier REMIC. For federal
income tax purposes, in addition to representing ownership of a REMIC regular
interest, (i) each of the Class A-1 Certificates represents the right to receive
payments in respect of interest accruals on the Class A-1 Certificates at rates
in excess of the Pool 1 Adjusted Net WAC, including all payments in respect of
Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls, (ii) each of the Class
A-2 Certificates represents the right to receive payments in respect of interest
accruals on the Class A-2 Certificates at rates in excess of the Pool 2 Adjusted
Net WAC, including all payments in respect of Basis Risk Shortfalls and Unpaid
Basis Risk Shortfalls and (iii) each of the Class B-1, Class B-2 and Class B-3
Certificates represents the right to receive payments in respect of Basis Risk
Shortfalls and Unpaid Basis Risk Shortfalls as provided in Section 5.06. For
federal income tax purposes, (i) each Class X-A-1 Certificate will represent two
REMIC regular interests, the rights to receive certain non-REMIC payments from
the holders of the Class X-A-2 Certificates and the obligation to make certain
non-REMIC payments to the holders of the Class A-1 and Class A-2 Certificates,
(ii) each Class X-A-2 Certificate will represent two REMIC regular interests and
the obligation to make certain non-REMIC payments to the holders of the Class
A-1, Class A-2 and Class X-A-1 Certificates and (iii) each Class X-B Certificate
will represent a REMIC regular interest and the obligation to make certain
payments to the holders of the Class B-2 Certificates in respect of Basis Risk
Shortfalls and Unpaid Basis Risk Shortfalls. The Class A-R Certificate
represents the sole class of residual interest in each of REMIC 1, REMIC 2,
REMIC 3, REMIC 4 and the Upper Tier REMIC.

<PAGE>

         The Upper Tier REMIC shall hold as its assets the several classes of
uncertificated REMIC 4 Regular Interests and the uncertificated REMIC 3 IO
Classes. REMIC 4 shall hold as its assets the several classes of uncertificated
REMIC 3 Regular Interests other than the REMIC 3 IO Classes. REMIC 3 shall hold
as its assets the several classes of uncertificated REMIC 2 Regular Interests.
REMIC 2 shall hold as its assets the several uncertificated classes of REMIC 1
Regular Interests. REMIC 1 shall hold as its assets the property of the Trust
Fund other than the REMIC 1 Interests, the REMIC 2 Interests, the REMIC 3
Interests, the REMIC 4 Interests and the interests in the grantor trusts
described herein.

         Each Upper Tier REMIC Regular Interest is hereby designated as a
regular interest in the Upper Tier REMIC for purposes of the REMIC Provisions.
Each REMIC 4 Regular Interest is hereby designated as a regular interest in
REMIC 4 for purposes of the REMIC provisions. Each REMIC 3 Regular Interest is
hereby designated as a regular interest in REMIC 3 for purposes of the REMIC
provisions. Each REMIC 2 Regular Interest is hereby designated as a regular
interest in REMIC 2 for purposes of the REMIC provisions. Each REMIC 1 Regular
Interest is hereby designated as a regular interest in REMIC 1 for purposes of
the REMIC Provisions.

         The Class LT1-R Interest is hereby designated as the sole class of
residual interest in REMIC 1 for purposes of the REMIC Provisions. The Class
LT2-R Interest is hereby designated as the sole class of residual interest in
REMIC 2 for purposes of the REMIC provisions. The Class LT3-R Interest is hereby
designated as the sole class of residual interest in REMIC 3 for purposes of the
REMIC Provisions. The Class LT4-R Interest is hereby designated as the sole
class of residual interest in REMIC 4 for purposes of the REMIC Provisions. The
Class A-R Certificate, other than the portion thereof representing the right to
receive payments in respect of the Class LT1-R Interest, the Class LT2-R
Interest, the Class LT3-R Interest or the Class LT4-R Interest, is hereby
designated as the sole class of residual interest in the Upper Tier REMIC for
purposes of the REMIC provisions and will also represent the Class LT1-R
Interest, the LT2-R Interest, the Class LT3-R Interest and the Class LT4-R
Interest.

THE REMIC 1 INTERESTS

         The following table sets forth (or describes) the class designation,
interest rate, initial principal amount, and related pool of Mortgage Loans for
each class of REMIC 1 Interests:

<TABLE>
<CAPTION>
                                           Interest     Related Mortgage Pool or
Class Designation     Principal Amount       Rate                Pools
-----------------   -------------------      ----                -----
<S>                 <C>                    <C>          <C>
LT11A               $      124,447.5377       (2)       Pool 1
LT11B               $    4,014,448.5377       (3)       Pool 1
LT12A               $      134,232.1051       (2)       Pool 2
LT12B               $    4,330,062.1051       (4)       Pool 2
LT13A               $       15,996.5628       (2)       Pool 3
LT13B               $      515,996.5628       (5)       Pool 3
LT14A               $       35,324.5713       (2)       Pool 4
LT14B               $    1,139,494.5713       (6)       Pool 4
LT1Z                $  989,690,175.1362       (2)       Pool 1, Pool 2, Pool 3 and Pool 4
</TABLE>

                                       2

<PAGE>
<TABLE>
<S>        <C>                   <C>    <C>
LT1-R      (1)                   (1)    N/A
</TABLE>

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

(1)  The Class LT1-R Interest represents the sole class of residual interest in
     REMIC 1 and has neither a principal amount nor an interest rate. The Class
     LT1-R Interest shall be represented by the Class A-R Certificate.

(2)  The Class LT11A Interest, the Class LT12A Interest, the Class LT13A
     Interest, the Class LT14A and the Class LT1Z Interest shall have an
     interest rate for each Distribution Date (and the related Accrual Period)
     equal to the Net WAC.

(3)  The Class LT11B Interest shall have an interest rate for any Distribution
     Date (and the related Accrual Period) equal to the Pool 1 Net WAC.

(4)  The Class LT12B Interest shall have an interest rate for any Distribution
     Date (and the related Accrual Period) equal to the Pool 2 Net WAC.

(5)  The Class LT13B Interest shall have an interest rate for any Distribution
     Date (and the related Accrual Period) equal to the Pool 3 Net WAC.

(6)  The Class LT14B Interest shall have an interest rate for any Distribution
     Date (and the related Accrual Period) equal to the Pool 4 Net WAC.

         On each Distribution Date, the Trustee shall first pay or charge as an
expense of REMIC 1 all expenses of the Trust for such Distribution Date.

Principal distributions shall be deemed to be made on the REMIC 1 Interests
first, so as to keep the uncertificated principal balance of each REMIC 1
Interest ending with the designation "A" equal to 1% of the excess of (x) the
aggregate Principal Balance of the Mortgage Loans in the related Mortgage Pool
over (y) the aggregate class principal amounts of the Certificates in the
Certificate Group related to such Mortgage Pool (except that if 1% of any such
excess is greater than the principal amount of the corresponding REMIC 1
Interest ending with the designation "A", the least amount of principal shall be
distributed to such REMIC 1 Interests such that the REMIC 1 Subordinated Balance
Ratio is maintained); second, to each REMIC 1 Interest ending with the
designation "B" so as to keep the uncertificated principal balance of each such
REMIC 1 Interest equal to 1% of the aggregate Principal Balance of the Mortgage
Loans in the related Mortgage Pool and finally, all remaining principal amounts
shall be distributed in respect of the Class LT1Z Interest. Realized Losses with
respect to principal shall be allocated among the REMIC 1 Interests first, so as
to keep the uncertificated principal balance of each REMIC 1 Interest ending
with the designation "A" equal to 1% of the excess of (x) the aggregate
Principal Balance of the Mortgage Loans in the related Mortgage Pool over (y)
the aggregate class principal amounts of the Certificates in the Certificate
Group related to such Mortgage Pool (except that if 1% of any such excess is
greater than the principal amount of the corresponding REMIC 1 Interest ending
with the designation "A", the least amount of losses shall be allocated to such
REMIC 1 Interests such that the REMIC 1 Subordinated Balance Ratio is
maintained); second, to each REMIC 1 Interest ending with the designation "B" so
as to keep the uncertificated principal balance of each such REMIC 1 Interest
equal to 1% of the aggregate Principal Balance of the Mortgage Loans in the
related Mortgage Pool and finally, all remaining Realized Losses with respect to
principal shall be distributed in respect of the Class LT1Z Interest.

                                       3

<PAGE>

         All computations with respect to the REMIC 1 Interests shall be
computed to eight decimal places.

THE REMIC 2 INTERESTS

         The following table sets forth (or describes) the class designation,
interest rate, and initial principal amount for each class of REMIC 2 Interests:

<TABLE>
<CAPTION>
                                                  Interest
Class Designation      Principal Amount             Rate
-----------------      ----------------             ----
<S>                   <C>                         <C>
LT21A1                $    14,155,593.92             (2)
LT21A2                $    13,656,537.76             (2)
LT21A3                $    13,174,982.79             (2)
LT21A4                $    12,710,408.33             (2)
LT21A5                $    12,262,215.63             (2)
LT21A6                $    11,829,827.06             (2)
LT21A7                $    11,412,685.30             (2)
LT21A8                $    11,010,252.74             (2)
LT21A9                $    10,622,010.70             (2)
LT21A10               $    10,247,458.80             (2)
LT21A11               $     9,886,114.31             (2)
LT21A12               $     9,537,511.48             (2)
LT21A13               $     9,201,201.05             (2)
LT21A14               $     8,876,749.54             (2)
LT21A15               $     8,563,738.81             (2)
LT21A16               $     8,261,765.42             (2)
LT21A17               $     7,970,440.16             (2)
LT21A18               $     7,689,387.59             (2)
LT21A19               $     7,418,245.44             (2)
LT21A20               $     7,156,664.28             (2)
LT21A21               $     6,684,893.19             (2)
LT21A22               $     6,445,302.93             (2)
LT21A23               $     6,214,229.26             (2)
LT21A24               $     5,991,370.69             (2)
LT21A25               $     5,776,436.36             (2)
LT21A26               $     5,569,145.65             (2)
LT21A27               $     5,369,227.94             (2)
LT21A28               $     5,176,422.09             (2)
LT21A29               $     4,990,476.24             (2)
LT21A30               $     4,811,147.41             (2)
LT21A31               $     4,638,201.19             (2)
LT21A32               $     4,471,411.51             (2)
</TABLE>

                                       4

<PAGE>

<TABLE>
<S>                   <C>                            <C>
LT21A33               $     4,310,560.22             (2)
LT21A34               $     4,155,436.94             (2)
LT21A35               $     4,005,838.68             (2)
LT21A36               $     3,861,569.68             (2)
LT21A37               $     3,557,374.59             (2)
LT21A38               $     3,431,934.94             (2)
LT21A39               $     3,310,918.51             (2)
LT21A40               $     3,194,169.35             (2)
LT21A41               $     3,081,536.99             (2)
LT21A42               $     2,972,876.25             (2)
LT21A43               $     2,868,047.09             (2)
LT21A44               $     2,766,914.40             (2)
LT21A45               $     2,669,347.85             (2)
LT21A46               $     2,575,221.66             (2)
LT21A47               $     2,484,414.54             (2)
LT21A48               $    67,971,782.74             (2)
LT21AR                $           100.00             (2)
LT22A1                $    15,268,606.20             (3)
LT22A2                $    14,730,206.67             (3)
LT22A3                $    14,210,792.13             (3)
LT22A4                $    13,709,693.11             (3)
LT22A5                $    13,226,263.77             (3)
LT22A6                $    12,759,881.06             (3)
LT22A7                $    12,309,943.86             (3)
LT22A8                $    11,875,872.29             (3)
LT22A9                $    11,457,106.89             (3)
LT22A10               $    11,053,107.95             (3)
LT22A11               $    10,663,354.76             (3)
LT22A12               $    10,287,344.99             (3)
LT22A13               $     9,924,594.03             (3)
LT22A14               $     9,574,634.34             (3)
LT22A15               $     9,237,014.88             (3)
LT22A16               $     8,911,300.52             (3)
LT22A17               $     8,597,071.45             (3)
LT22A18               $     8,293,922.69             (3)
LT22A19               $     8,001,463.51             (3)
LT22A20               $     7,719,316.99             (3)
LT22A21               $     7,210,455.53             (3)
LT22A22               $     6,952,028.83             (3)
LT22A23               $     6,702,788.29             (3)
LT22A24               $     6,462,408.71             (3)
</TABLE>

                                       5

<PAGE>

<TABLE>
<S>                   <C>                            <C>
LT22A25               $     6,230,576.35             (3)
LT22A26               $     6,006,988.60             (3)
LT22A27               $     5,791,353.46             (3)
LT22A28               $     5,583,389.33             (3)
LT22A29               $     5,382,824.52             (3)
LT22A30               $     5,189,396.97             (3)
LT22A31               $     5,002,853.82             (3)
LT22A32               $     4,822,951.24             (3)
LT22A33               $     4,649,453.91             (3)
LT22A34               $     4,482,134.93             (3)
LT22A35               $     4,320,775.36             (3)
LT22A36               $     4,165,163.99             (3)
LT22A37               $     3,837,053.28             (3)
LT22A38               $     3,701,751.63             (3)
LT22A39               $     3,571,220.96             (3)
LT22A40               $     3,445,293.06             (3)
LT22A41               $     3,323,805.60             (3)
LT22A42               $     3,206,602.02             (3)
LT22A43               $     3,093,531.26             (3)
LT22A44               $     2,984,447.57             (3)
LT22A45               $     2,879,210.39             (3)
LT22A46               $     2,777,684.07             (3)
LT22A47               $     2,679,737.74             (3)
LT22A48               $    73,315,626.49             (3)
LT23A                 $    50,000,000.00             (4)
LT24A                 $   110,417,000.00             (5)
LT2B                  $    31,000,077.69             (6)
LT2-R                           (1)                  (1)
</TABLE>

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

(1)  The Class LT2-R interest represents the sole class of residual interest in
     REMIC 2 and has neither a principal amount nor an interest rate. The Class
     LT2-R Interest shall be represented by the Class A-R Certificate.

(2)  The interest rate for each of the Class LT21A1 Interest through the Class
     LT21A48 Interest and the Class LT21AR Interest for any Distribution Date
     (and the related Accrual Period) is a per annum rate equal to the Pool 1
     Net WAC.

(3)  The interest rate for each of the Class LT22A1 Interest through the Class
     LT22A48 Interest for any Distribution Date (and the related Accrual Period)
     is a per annum rate equal to the Pool 2 Net WAC.

(4)  The interest rate for the Class LT23A Interest for any Distribution Date
     (and the related Accrual Period) is a per annum rate equal to the Pool 3
     Net WAC.

                                       6

<PAGE>

(5)  The interest rate for the Class LT24A Interest for any Distribution Date
     (and the related Accrual Period) is a per annum rate equal to the Pool 4
     Net WAC.

(6)  The interest rate for the Class LT2B Interest for any Distribution Date
     (and the related Accrual Period) is a per annum rate equal to the
     Subordinate Net WAC, which is the numerical equivalent of the weighted
     average of the interest rates on the Class LT11A Interest, the Class LT12A
     Interest and the Class LT13A Interest (treating, for purposes of computing
     this weighted average, the Class LT11A Interest as subject to a cap and a
     floor equal to the interest rate on the Class LT11B Interest, the Class
     LT12A Interest as subject to a cap and a floor equal to the interest rate
     on the Class LT12B Interest and the Class LT13A Interest as subject to a
     cap and a floor equal to the interest rate on the Class LT13B Interest).

         On each Distribution Date principal payments will be deemed made and
Realized Losses with respect to principal will be allocated among the REMIC 2
Regular Interests as follows: (i) an amount equal to the total principal
distributed in respect of the Class B-1, Class B-2, Class B-3, Class B-4, Class
B-5 and Class B-6 Certificates will be treated as having been distributed in
respect of the Class LT2B Interest in reduction of its principal amount
(treating the initial Class Principal Amount of the Class B-6 Certificates, for
purposes of this clause (i), as being $3,501,077.69 and treating the first $0.69
of payments to the Class A-R Certificate under Section 5.02(a)(vi) from
principal payments on the Mortgage Loans as paid in respect of the Class B-6
Certificates), (ii) the amount of all Realized Losses in respect of principal
allocated to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class
B-6 Certificates will be allocated to the Class LT2B Interest in reduction of
its principal amount (treating the initial Class Principal Amount of the Class
B-6 Certificates, for purposes of this clause (ii), as being $3,501,077.69 and
disregarding Section 5.03(c) hereof), (iii) an amount equal to the total
principal distributed in respect of the Class A-R Certificates will be treated
as having been distributed in respect of the Class LT21AR Interest in reduction
of its principal amount, (iv) the amount of all Realized Losses in respect of
principal allocated to the Class A-R Certificates will be allocated to the Class
LT21AR Interest in reduction of its principal amount, (v) an amount equal to the
total principal distributed in respect of the Class A-1 Certificates will be
treated as having been distributed in the aggregate in respect of the Class
LT21A1 Interest through the Class LT21A48 Interest in reduction of their
principal amount, (vi) the amount of all Realized Losses in respect of principal
allocated to the Class A-1 Certificates will be allocated in the aggregate to
the Class LT21A1 Interest through the Class LT21A48 Interest in reduction of
their principal amount, (vii) an amount equal to the total principal distributed
in respect of the Class A-2 Certificates will be treated as having been
distributed in the aggregate in respect of the Class LT22A1 Interest through the
Class LT22A48 Interest in reduction of their principal amount, (viii) the amount
of all Realized Losses in respect of principal allocated to the Class A-2
Certificates will be allocated in the aggregate to the Class LT22A1 Interest
through the Class LT22A48 Interest in reduction of their principal amount, (ix)
an amount equal to the total principal distributed in respect of the Class A-3
Certificates will be treated as having been distributed in respect of the Class
LT23A Interest in reduction of its principal amount, (x) the amount of all
Realized Losses in respect of principal allocated to the Class A-3 Certificates
will be allocated to the Class LT23A Interest in reduction of its principal
amount, (xi) an amount equal to the total principal distributed in respect of
the Class A-4A and Class A-4B Certificates will be treated as having been
distributed in respect of the Class LT24A Interest in reduction of its principal
amount and (xii) the amount of all Realized Losses in respect of principal
allocated to the Class A-4A and Class A-4B Certificates will be allocated to the
Class LT24A Interest in reduction of its principal amount. All principal deemed
paid and Realized Losses allocated to the

                                       7
<PAGE>

Class LT21A1 Interest through the Class LT21A48 Interest shall be deemed paid or
allocated first to the Class LT21A1 Interest until its principal balance has
been reduced to zero and to such other REMIC 2 Regular Interests in numerical
order until the principal balance of each in turn has been reduced to zero. All
principal deemed paid and Realized Losses allocated to the Class LT22A1 Interest
through the Class LT22A48 Interest shall be deemed paid or allocated first to
the Class LT22A1 Interest until its principal balance has been reduced to zero
and to such other REMIC 2 Regular Interests in numerical order until the
principal balance of each in turn has been reduced to zero.

THE REMIC 3 INTERESTS

         The following table sets forth (or describes) the class designation,
interest rate and initial principal amount for each class of REMIC 3 Interests:

<TABLE>
<CAPTION>
                                                                                          Corresponding
      Class                                           Interest                           REMIC 2 Regular
   Designation           Principal Amount               Rate          Change Date            Interest
-----------------        ----------------               ----         --------------      ---------------
<S>                      <C>                          <C>            <C>                 <C>
LT31A1                   $ 14,155,593.92                 (3)         December 2003           N/A
LT31A2                   $ 13,656,537.76                 (3)         January 2004            N/A
LT31A3                   $ 13,174,982.79                 (3)         February 2004           N/A
LT31A4                   $ 12,710,408.33                 (3)         March 2004              N/A
LT31A5                   $ 12,262,215.63                 (3)         April 2004              N/A
LT31A6                   $ 11,829,827.06                 (3)         May 2004                N/A
LT31A7                   $ 11,412,685.30                 (3)         June 2004               N/A
LT31A8                   $ 11,010,252.74                 (3)         July 2004               N/A
LT31A9                   $ 10,622,010.70                 (3)         August 2004             N/A
LT31A10                  $ 10,247,458.80                 (3)         September 2004          N/A
LT31A11                  $  9,886,114.31                 (3)         October 2004            N/A
LT31A12                  $  9,537,511.48                 (3)         November 2004           N/A
LT31A13                  $  9,201,201.05                 (3)         December 2004           N/A
LT31A14                  $  8,876,749.54                 (3)         January 2005            N/A
LT31A15                  $  8,563,738.81                 (3)         February 2005           N/A
LT31A16                  $  8,261,765.42                 (3)         March 2005              N/A
LT31A17                  $  7,970,440.16                 (3)         April 2005              N/A
LT31A18                  $  7,689,387.59                 (3)         May 2005                N/A
LT31A19                  $  7,418,245.44                 (3)         June 2005               N/A
LT31A20                  $  7,156,664.28                 (3)         July 2005               N/A
LT31A21                  $  6,684,893.19                 (3)         August 2005             N/A
LT31A22                  $  6,445,302.93                 (3)         September 2005          N/A
LT31A23                  $  6,214,229.26                 (3)         October 2005            N/A
LT31A24                  $  5,991,370.69                 (3)         November 2005           N/A
</TABLE>

                                       8
<PAGE>

<TABLE>
<S>                      <C>                             <C>         <C>                     <C>
LT31A25                  $  5,776,436.36                 (3)         December 2005           N/A
LT31A26                  $  5,569,145.65                 (3)         January 2006            N/A
LT31A27                  $  5,369,227.94                 (3)         February 2006           N/A
LT31A28                  $  5,176,422.09                 (3          March 2006              N/A
LT31A29                  $  4,990,476.24                 (3)         April 2006              N/A
LT31A30                  $  4,811,147.41                 (3)         May 2006                N/A
LT31A31                  $  4,638,201.19                 (3)         June 2006               N/A
LT31A32                  $  4,471,411.51                 (3)         July 2006               N/A
LT31A33                  $  4,310,560.22                 (3)         August 2006             N/A
LT31A34                  $  4,155,436.94                 (3)         September 2006          N/A
LT31A35                  $  4,005,838.68                 (3)         October 2006            N/A
LT31A36                  $  3,861,569.68                 (3)         November 2006           N/A
LT31A37                  $  3,557,374.59                 (3)         December 2006           N/A
LT31A38                  $  3,431,934.94                 (3)         January 2007            N/A
LT31A39                  $  3,310,918.51                 (3)         February 2007           N/A
LT31A40                  $  3,194,169.35                 (3)         March 2007              N/A
LT31A41                  $  3,081,536.99                 (3)         April 2007              N/A
LT31A42                  $  2,972,876.25                 (3)         May 2007                N/A
LT31A43                  $  2,868,047.09                 (3)         June 2007               N/A
LT31A44                  $  2,766,914.40                 (3)         July 2007               N/A
LT31A45                  $  2,669,347.85                 (3)         August 2007             N/A
LT31A46                  $  2,575,221.66                 (3)         September 2007          N/A
LT31A47                  $  2,484,414.54                 (3)         October 2007            N/A
LT31A48                  $ 67,971,782.74                 (3)         November 2007           N/A
LT31IO1                        (1)                       (4)         December 2003           LT21A1
LT31IO2                        (1)                       (4)         January 2004            LT21A2
LT31IO3                        (1)                       (4)         February 2004           LT21A3
LT31IO4                        (1)                       (4)         March 2004              LT21A4
LT31IO5                        (1)                       (4)         April 2004              LT21A5
LT31IO6                        (1)                       (4)         May 2004                LT21A6
LT31IO7                        (1)                       (4)         June 2004               LT21A7
LT31IO8                        (1)                       (4)         July 2004               LT21A8
LT31IO9                        (1)                       (4)         August 2004             LT21A9
LT31IO10                       (1)                       (4)         September 2004          LT21A10
LT31IO11                       (1)                       (4)         October 2004            LT21A11
LT31IO12                       (1)                       (4)         November 2004           LT21A12
LT31IO13                       (1)                       (4)         December 2004           LT21A13
LT31IO14                       (1)                       (4)         January 2005            LT21A14
LT31IO15                       (1)                       (4)         February 2005           LT21A15
LT31IO16                       (1)                       (4)         March 2005              LT21A16
LT31IO17                       (1)                       (4)         April 2005              LT21A17
</TABLE>

                                       9
<PAGE>

<TABLE>
<S>                      <C>                             <C>         <C>                     <C>
LT31IO18                       (1)                       (4)         May 2005                LT21A18
LT31IO19                       (1)                       (4)         June 2005               LT21A19
LT31IO20                       (1)                       (4)         July 2005               LT21A20
LT31IO21                       (1)                       (4)         August 2005             LT21A21
LT31IO22                       (1)                       (4)         September 2005          LT21A22
LT31IO23                       (1)                       (4)         October 2005            LT21A23
LT31IO24                       (1)                       (4)         November 2005           LT21A24
LT31IO25                       (1)                       (4)         December 2005           LT21A25
LT31IO26                       (1)                       (4)         January 2006            LT21A26
LT31IO27                       (1)                       (4)         February 2006           LT21A27
LT31IO28                       (1)                       (4)         March 2006              LT21A28
LT31IO29                       (1)                       (4)         April 2006              LT21A29
LT31IO30                       (1)                       (4)         May 2006                LT21A30
LT31IO31                       (1)                       (4)         June 2006               LT21A31
LT31IO32                       (1)                       (4)         July 2006               LT21A32
LT31IO33                       (1)                       (4)         August 2006             LT21A33
LT31IO34                       (1)                       (4)         September 2006          LT21A34
LT31IO35                       (1)                       (4)         October 2006            LT21A35
LT31IO36                       (1)                       (4)         November 2006           LT21A36
LT31IO37                       (1)                       (4)         December 2006           LT21A37
LT31IO38                       (1)                       (4)         January 2007            LT21A38
LT31IO39                       (1)                       (4)         February 2007           LT21A39
LT31IO40                       (1)                       (4)         March 2007              LT21A40
LT31IO41                       (1)                       (4)         April 2007              LT21A41
LT31IO42                       (1)                       (4)         May 2007                LT21A42
LT31IO43                       (1)                       (4)         June 2007               LT21A43
LT31IO44                       (1)                       (4)         July 2007               LT21A44
LT31IO45                       (1)                       (4)         August 2007             LT21A45
LT31IO46                       (1)                       (4)         September 2007          LT21A46
LT31IO47                       (1)                       (4)         October 2007            LT21A47
LT31IO48                       (1)                       (4)         November 2007           LT21A48
LT31AR                   $        100.00                 (5)         N/A                     N/A
LT32A1                   $ 15,268,606.20                 (6)         December 2003           N/A
LT32A2                   $ 14,730,206.67                 (6)         January 2004            N/A
LT32A3                   $ 14,210,792.13                 (6)         February 2004           N/A
LT32A4                   $ 13,709,693.11                 (6)         March 2004              N/A
LT32A5                   $ 13,226,263.77                 (6)         April 2004              N/A
LT32A6                   $ 12,759,881.06                 (6)         May 2004                N/A
LT32A7                   $ 12,309,943.86                 (6)         June 2004               N/A
LT32A8                   $ 11,875,872.29                 (6)         July 2004               N/A
LT32A9                   $ 11,457,106.89                 (6)         August 2004             N/A
</TABLE>

                                       10
<PAGE>

<TABLE>
<S>                      <C>                             <C>         <C>                     <C>
LT32A10                  $ 11,053,107.95                 (6)         September 2004          N/A
LT32A11                  $ 10,663,354.76                 (6)         October 2004            N/A
LT32A12                  $ 10,287,344.99                 (6)         November 2004           N/A
LT32A13                  $  9,924,594.03                 (6)         December 2004           N/A
LT32A14                  $  9,574,634.34                 (6)         January 2005            N/A
LT32A15                  $  9,237,014.88                 (6)         February 2005           N/A
LT32A16                  $  8,911,300.52                 (6)         March 2005              N/A
LT32A17                  $  8,597,071.45                 (6)         April 2005              N/A
LT32A18                  $  8,293,922.69                 (6)         May 2005                N/A
LT32A19                  $  8,001,463.51                 (6)         June 2005               N/A
LT32A20                  $  7,719,316.99                 (6)         July 2005               N/A
LT32A21                  $  7,210,455.53                 (6)         August 2005             N/A
LT32A22                  $  6,952,028.83                 (6)         September 2005          N/A
LT32A23                  $  6,702,788.29                 (6)         October 2005            N/A
LT32A24                  $  6,462,408.71                 (6)         November 2005           N/A
LT32A25                  $  6,230,576.35                 (6)         December 2005           N/A
LT32A26                  $  6,006,988.60                 (6)         January 2006            N/A
LT32A27                  $  5,791,353.46                 (6)         February 2006           N/A
LT32A28                  $  5,583,389.33                 (6)         March 2006              N/A
LT32A29                  $  5,382,824.52                 (6)         April 2006              N/A
LT32A30                  $  5,189,396.97                 (6)         May 2006                N/A
LT32A31                  $  5,002,853.82                 (6)         June 2006               N/A
LT32A32                  $  4,822,951.24                 (6)         July 2006               N/A
LT32A33                  $  4,649,453.91                 (6)         August 2006             N/A
LT32A34                  $  4,482,134.93                 (6)         September 2006          N/A
LT32A35                  $  4,320,775.36                 (6)         October 2006            N/A
LT32A36                  $  4,165,163.99                 (6)         November 2006           N/A
LT32A37                  $  3,837,053.28                 (6)         December 2006           N/A
LT32A38                  $  3,701,751.63                 (6)         January 2007            N/A
LT32A39                  $  3,571,220.96                 (6)         February 2007           N/A
LT32A40                  $  3,445,293.06                 (6)         March 2007              N/A
LT32A41                  $  3,323,805.60                 (6)         April 2007              N/A
LT32A42                  $  3,206,602.02                 (6)         May 2007                N/A
LT32A43                  $  3,093,531.26                 (6)         June 2007               N/A
LT32A44                  $  2,984,447.57                 (6)         July 2007               N/A
LT32A45                  $  2,879,210.39                 (6)         August 2007             N/A
LT32A46                  $  2,777,684.07                 (6)         September 2007          N/A
LT32A47                  $  2,679,737.74                 (6)         October 2007            N/A
LT32A48                  $ 73,315,626.49                 (6)         November 2007           N/A
LT32IO1                        (1)                       (7)         December 2003           LT22A1
LT32IO2                        (1)                       (7)         January 2004            LT22A2
</TABLE>

                                       11
<PAGE>

<TABLE>
<S>                            <C>                       <C>         <C>                     <C>
LT32IO3                        (1)                       (7)         February 2004           LT22A3
LT32IO4                        (1)                       (7)         March 2004              LT22A4
LT32IO5                        (1)                       (7)         April 2004              LT22A5
LT32IO6                        (1)                       (7)         May 2004                LT22A6
LT32IO7                        (1)                       (7)         June 2004               LT22A7
LT32IO8                        (1)                       (7)         July 2004               LT22A8
LT32IO9                        (1)                       (7)         August 2004             LT22A9
LT32IO10                       (1)                       (7)         September 2004          LT22A10
LT32IO11                       (1)                       (7)         October 2004            LT22A11
LT32IO12                       (1)                       (7)         November 2004           LT22A12
LT32IO13                       (1)                       (7)         December 2004           LT22A13
LT32IO14                       (1)                       (7)         January 2005            LT22A14
LT32IO15                       (1)                       (7)         February 2005           LT22A15
LT32IO16                       (1)                       (7)         March 2005              LT22A16
LT32IO17                       (1)                       (7)         April 2005              LT22A17
LT32IO18                       (1)                       (7)         May 2005                LT22A18
LT32IO19                       (1)                       (7)         June 2005               LT22A19
LT32IO20                       (1)                       (7)         July 2005               LT22A20
LT32IO21                       (1)                       (7)         August 2005             LT22A21
LT32IO22                       (1)                       (7)         September 2005          LT22A22
LT32IO23                       (1)                       (7)         October 2005            LT22A23
LT32IO24                       (1)                       (7)         November 2005           LT22A24
LT32IO25                       (1)                       (7)         December 2005           LT22A25
LT32IO26                       (1)                       (7)         January 2006            LT22A26
LT32IO27                       (1)                       (7)         February 2006           LT22A27
LT32IO28                       (1)                       (7)         March 2006              LT22A28
LT32IO29                       (1)                       (7)         April 2006              LT22A29
LT32IO30                       (1)                       (7)         May 2006                LT22A30
LT32IO31                       (1)                       (7)         June 2006               LT22A31
LT32IO32                       (1)                       (7)         July 2006               LT22A32
LT32IO33                       (1)                       (7)         August 2006             LT22A33
LT32IO34                       (1)                       (7)         September 2006          LT22A34
LT32IO35                       (1)                       (7)         October 2006            LT22A35
LT32IO36                       (1)                       (7)         November 2006           LT22A36
LT32IO37                       (1)                       (7)         December 2006           LT22A37
LT32IO38                       (1)                       (7)         January 2007            LT22A38
LT32IO39                       (1)                       (7)         February 2007           LT22A39
LT32IO40                       (1)                       (7)         March 2007              LT22A40
LT32IO41                       (1)                       (7)         April 2007              LT22A41
LT32IO42                       (1)                       (7)         May 2007                LT22A42
LT32IO43                       (1)                       (7)         June 2007               LT22A43
</TABLE>

                                       12
<PAGE>

<TABLE>
<S>                      <C>                             <C>         <C>                     <C>
LT32IO44                       (1)                       (7)         July 2007               LT22A44
LT32IO45                       (1)                       (7)         August 2007             LT22A45
LT32IO46                       (1)                       (7)         September 2007          LT22A46
LT32IO47                       (1)                       (7)         October 2007            LT22A47
LT32IO48                       (1)                       (7)         November 2007           LT22A48
LT33A                    $ 50,000,000.00                 (8)         N/A                     N/A
LT34A                    $110,417,000.00                 (9)         N/A                     N/A
LT3B1                    $ 10,500,000.00                (10)         N/A                     N/A
LT3B2                    $  7,999,000.00                (10)         N/A                     N/A
LT3B3                    $  4,500,000.00                (10)         N/A                     N/A
LT3B4                    $  2,500,000.00                (10)         N/A                     N/A
LT3B5                    $  2,000,000.00                (10)         N/A                     N/A
LT3B6                    $  3,501,077.69                (10)         N/A                     N/A
LT3-R                          (2)                      (10)         N/A                     N/A
</TABLE>

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

    (1)  Each of the REMIC 3 IO Classes shall be an "interest-only" interest
         that has no principal balance. The notional balance of each of the
         Class LT31IO1 Interest through the Class LT31IO48 Interest and each of
         the Class LT32IO1 Interest through the Class LT32IO48 Interest as of
         any Distribution Date on or prior to the applicable Change Date for
         such Class shall equal the principal balance of the Corresponding REMIC
         2 Regular Interest immediately prior to such Distribution Date and for
         subsequent Distribution Dates shall equal $0.

    (2)  The Class LT3-R interest represents the sole class of residual interest
         in REMIC 3 and has neither a principal amount nor an interest rate. The
         Class LT3-R Interest shall be represented by the Class A-R Certificate.

    (3)  For Distribution Dates on or prior to the applicable Change Date, the
         interest rate on each of the Class LT31A1 Interest through the Class
         LT31A48 Interest shall be the Pool 1 Net WAC minus 100 basis points,
         subject to a floor of 0%, and for subsequent Distribution Dates shall
         be the Pool 1 Net WAC.

    (4)  For each Distribution Date, the interest rate on each of the Class
         LT31IO1 Interest through the Class LT31IO48 Interest shall equal the
         lesser of (i) 1.00% and (ii) the Pool 1 Net WAC.

    (5)  For each Distribution Date, the interest rate on the Class LT31AR
         Interest shall equal the Pool 1 Net WAC.

    (6)  For Distribution Dates on or prior to the applicable Change Date, the
         interest rate on each of the Class LT32A1 Interest through the Class
         LT32A48 Interest shall be the Pool 2 Net WAC minus 100 basis points,
         subject to a floor of 0%, and for subsequent Distribution Dates shall
         be the Pool 2 Net WAC.

    (7)  For each Distribution Date, the interest rate on each of the Class
         LT32IO1 Interest through the Class LT32IO48 Interest shall equal the
         lesser of (i) 1.00% and (ii) the Pool 2 Net WAC.

    (8)  For each Distribution Date, the interest rate on the Class LT33A
         Interest shall equal the Pool 3 Net WAC.

    (9)  For each Distribution Date, the interest rate on the Class LT34A
         Interest will equal the Pool 4 Net WAC.

    (10) For each Distribution Date, the interest rate on each of the Class
         LT3B1 Interest, Class LT3B2 Interest, Class LT3B3 Interest, Class LT3B4
         Interest, Class LT3B5 Interest and Class LT3B6 Interest shall equal the
         Subordinate Net WAC.

                                       13
<PAGE>

         On each Distribution Date principal payments will be deemed made and
Realized Losses with respect to principal will be allocated among the REMIC 3
Regular Interests as follows: (i) an amount equal to the principal distributed
in respect of the Class B-1 Certificates, Class B-2 Certificates, Class B-3
Certificates, Class B-4 Certificates, Class B-5 Certificates and Class B-6
Certificates will be treated as having been distributed in respect of the Class
LT3B1 Interest, the Class LT3B2 Interest, the Class LT3B3 Interest, the Class
LT3B4 Interest, the Class LT3B5 Interest and the Class LT3B6 Interest,
respectively, in reduction of their principal amounts (treating the initial
Class Principal Amount of the Class B-6 Certificates, for purposes of this
clause (i), as being $3,501,077.69 and treating the first $0.69 distributed to
the A-R under Section 5.02(a)(vi) from principal payments on the Mortgage Loans
as distributed to the Class B-6 Certificates), (ii) the amount of all Realized
Losses in respect of principal allocated to the Class B-1 Certificates, Class
B-2 Certificates, Class B-3 Certificates, Class B-4 Certificates, Class B-5
Certificates and Class B-6 Certificates will be allocated to the Class LT3B1
Interest, Class LT3B2 Interest, Class LT3B3 Interest, Class LT3B4 Interest,
Class LT3B5 Interest and Class LT3B6 Interest, respectively, in reduction of
their principal amounts (treating the initial Class Principal Amount of the
Class B-6 Certificates, for purposes of this clause (ii), as being $3,501,077.69
and disregarding Section 5.03(c) hereof), (iii) an amount equal to the total
principal distributed in respect of the Class A-R Certificates will be treated
as having been distributed in respect of the Class LT31AR Interest in reduction
of its principal amount, (iv) the amount of all Realized Losses in respect of
principal allocated to the Class A-R Certificates will be allocated to the Class
LT31AR Interest in reduction of its principal amount, (v) an amount equal to the
total principal distributed in respect of the Class A-1 Certificates will be
treated as having been distributed in the aggregate in respect of the Class
LT31A1 Interest through the Class LT31A48 Interest in reduction of their
principal amount, (vi) the amount of all Realized Losses in respect of principal
allocated to the Class A-1 Certificates will be allocated in the aggregate to
the Class LT31A1 Interest through the Class LT31A48 Interest in reduction of
their principal amount, (vii) an amount equal to the total principal distributed
in respect of the Class A-2 Certificates will be treated as having been
distributed in the aggregate in respect of the Class LT32A1 Interest through the
Class LT32A48 Interest in reduction of their principal amount, (viii) the amount
of all Realized Losses in respect of principal allocated to the Class A-2
Certificates will be allocated in the aggregate to the Class LT32A1 Interest
through the Class LT32A48 Interest in reduction of their principal amount, (ix)
an amount equal to the total principal distributed in respect of the Class A-3
Certificates will be treated as having been distributed in respect of the Class
LT33A Interest in reduction of its principal amount, (x) the amount of all
Realized Losses in respect of principal allocated to the Class A-3 Certificates
will be allocated to the Class LT33A Interest in reduction of its principal
amount (xi) an amount equal to the total principal distributed in respect of the
Class A-4A and Class A-4B Certificates will be treated as having been
distributed in respect of the Class LT34A Interest in reduction of its principal
amount and (xii) the amount of all Realized Losses in respect of principal
allocated to the Class A-4A and Class A-4B Certificates will be allocated to the
Class LT34A Interest in reduction of its principal amount. All principal deemed
paid and Realized Losses allocated to the Class LT31A1 Interest through the
Class LT31A48 Interest shall be deemed paid or allocated first to the Class
LT31A1 Interest until its principal balance has been reduced to zero and to such
other REMIC 3 Regular Interests in numerical order until the principal balance
of each in turn has been reduced to zero. All principal deemed paid and Realized
Losses allocated to the Class LT32A1 Interest through the Class LT32A48 Interest
shall be deemed paid or allocated first to

                                       14
<PAGE>

the Class LT32A1 Interest until its principal balance has been reduced to zero
and to such other REMIC 3 Regular Interests in numerical order until the
principal balance of each in turn has been reduced to zero.

THE REMIC 4 INTERESTS

         The following table sets forth (or describes) the class designation,
interest rate, initial principal amount, and corresponding class of certificates
or components for each class of REMIC 4 Interests:

<TABLE>
<CAPTION>
                                                      Interest         Corresponding Class of
Class Designation        Principal Amount               Rate         Certificates or Components
-----------------        ----------------               ----         --------------------------
<S>                      <C>                          <C>            <C>
                                                                     Class A-1, Pool 1 Companion
LT4A1                    $ 389,000,000.00                (2)         Component
                                                                     Class A-2, Pool 2 Companion
LT4A2                    $ 419,583,000.00                (3)         Component
LT4A3                    $  50,000,000.00                (4)         Class A-3
LT4A4A                   $ 106,000,000.00                (5)         Class A-4A
LT4A4B                   $   4,417,000.00                (5)         Class A-4B
LT4B1                    $  10,500,000.00                (6)         Class B-1
LT4B2                    $   7,999,000.00                (6)         Class B-2, Class X-B
LT4B3                    $   4,500,000.00                (6)         Class B-3
LT4B4                    $   2,500,000.00                (6)         Class B-4
LT4B5                    $   2,000,000.00                (6)         Class B-5
LT4B6                    $   3,501,077.69                (6)         Class B-6
LT4AR                    $         100.00                (7)         Class A-R
LT4-R                                  (1)               (1)         N/A
</TABLE>

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

    (1)  The Class LT4-R Interest represents the sole class of residual interest
         in REMIC 4 and has neither a principal amount nor an interest rate. The
         Class LT4-R Interest shall be represented by the Class A-R Certificate.

    (2)  The Class LT4A1 Interest shall have an interest rate for each
         Distribution Date (and the related Accrual Period) equal to the
         weighted average of the interest rates on the Class LT31A1 Interest
         through the Class LT31A48 Interest, weighted on the basis of their
         principal amounts immediately prior to such Distribution Date.

    (3)  The Class LT4A2 Interest shall have an interest rate for each
         Distribution Date (and the related Accrual Period) equal to the
         weighted average of the interest rates on the Class LT32A1 Interest
         through the Class LT32A48 Interest, weighted on the basis of their
         principal amounts immediately prior to such Distribution Date.

    (4)  The Class LT4A3 Interest shall have an interest rate for each
         Distribution Date (and the related Accrual Period) equal to the Pool 3
         Net WAC.

    (5)  The Class LT4A4A and Class LT4A4B Interests shall have an interest rate
         for each Distribution Date (and the related Accrual Period) equal to
         the Pool 4 Net WAC.

                                       15
<PAGE>

    (6)  Each of the Class LT4B1 Interest, the Class LT4B2 Interest, the Class
         LT4B3 Interest, the Class LT4B4 Interest, the Class LT4B5 Interest and
         the Class LT4B6 Interest shall have an interest rate for each
         Distribution Date (and the related Accrual Period) equal to the
         Subordinate Net WAC.

    (7)  The Class LT4AR Interest shall have an interest rate for each
         Distribution Date (and the related Accrual Period) equal to the Pool 1
         Net WAC.

         Principal payments shall be deemed made and Realized Losses with
respect to principal shall be allocated among the REMIC 4 Interests in the same
manner as such payments are made or such Realized Losses are allocated among the
Corresponding Classes of Certificates (treating the initial Class Principal
Amount of the Class B-6 Certificates, for purposes of this sentence, as being
$3,501,077.69, treating the first $0.69 of distributions to the Class A-R
Certificate under Section 5.02(a)(vi) from principal payments on the Mortgage
Loans as distributed to the Class B-6 Certificates and disregarding Section
5.03(c)).

THE CERTIFICATES

         The following table sets forth (or describes) the Class designation,
Certificate Interest Rate, initial Class Principal Amount (or initial Class
Notional Amount), and minimum denomination for each Class of Certificates
comprising interests in the Trust Fund created hereunder.

<TABLE>
<CAPTION>
                       Related Class
                       or Classes of                          Initial Class
                      interests in the     Certificate       Principal Amount              Minimum
    Class                 Upper Tier         Interest        or Class Notional         Denominations or
 Designation                REMIC              Rate                Amount            Percentage Interest
------------         ------------------    ------------      -----------------       -------------------
<S>                  <C>                   <C>               <C>                     <C>
Class A-1             Upper Tier REMIC          (1)                                     $  25,000.00
                     Class A-1 Interest                         $389,000,000
Class A-2             Upper Tier REMIC          (2)                                     $  25,000.00
                     Class A-2 Interest                         $419,583,000
Class A-3                 Class A-3             (3)             $ 50,000,000            $  25,000.00
Class A-4A               Class A-4A             (4)             $106,000,000            $  25,000.00
Class A-4B               Class A-4B             (4)             $  4,417,000            $  25,000.00
Class X-A-1           Pool 1 REMIC NAS          (5)                                     $  25,000.00
                     Component and Pool
                         2 REMIC NAS
                          Component                                 (5)
Class X-A-2             Pool 1 REMIC            (6)                                     $  25,000.00
                          Companion
                     Component and Pool
                      2 REMIC Companion
                          Component                                 (6)
</TABLE>

                                       16
<PAGE>

<TABLE>
<S>                  <C>                       <C>              <C>                     <C>
Class X-B               Component XB2           (7)                  (7)                $  25,000.00
Class A-R                 Class A-R             (8)             $        100                     100%
Class B-1                 Class B-1             (9)             $ 10,500,000            $  25,000.00
Class B-2             Upper Tier REMIC         (10)                                     $  25,000.00
                     Class B-2 Interest                         $  7,999,000
Class B-3                 Class B-3             (9)             $  4,500,000            $ 100,000.00
Class B-4                 Class B-4             (9)             $  2,500,000            $ 100,000.00
Class B-5                 Class B-5             (9)             $  2,000,000            $ 100,000.00
Class B-6                 Class B-6             (9)             $  3,501,077            $ 100,000.00
</TABLE>

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

(1)      The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for the Class A-1 Certificates will be the
least of (i) LIBOR plus 0.32%; (ii) the Pool 1 Net WAC and (iii) 11.75%;
provided, however, if the Mortgage Loans and related property are not purchased
pursuant to Section 7.01(c) on the Initial Optional Purchase Date, then with
respect to each subsequent Distribution Date the per annum rate calculated
pursuant to clause (i) above with respect to the Class A-1 Certificates will be
LIBOR plus 0.64%.

(2)      The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for the Class A-2 Certificates will be the
least of (i) LIBOR plus 0.34%; (ii) the Pool 2 Net WAC and (iii) 11.75%;
provided, however, if the Mortgage Loans and related property are not purchased
pursuant to Section 7.01(c) on the Initial Optional Purchase Date, then with
respect to each subsequent Distribution Date the per annum rate calculated
pursuant to clause (i) above with respect to the Class A-2 Certificates will be
LIBOR plus 0.68%.

(3)      The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for the Class A-3 Certificates will be the
lesser of (i) the Pool 3 Net WAC and (ii) 11.75%.

(4)      The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for each of the Class A-4A and Class A-4B
Certificates will be the lesser of (i) the Pool 4 Net WAC and (ii) 11.75%.

(5)      The Class X-A-1 Certificates consist of two components, the Pool 1 NAS
Component and the Pool 2 NAS Component. On any Distribution Date, the Class
X-A-1 will have a Class Notional Amount equal to the sum of the Component
Notional Amount of the Pool 1 NAS Component and the Pool 2 NAS Component. The
Class X-A-1 Certificates are entitled to receive on each Distribution Date the
sum of the amount of interest accrued on the Pool 1 NAS Component and the Pool 2
NAS Component.

(6)      The Class X-A-2 Certificates consist of two components, the Pool 1
Companion Component and the Pool 2 Companion Component. On any Distribution Date
the Class Notional Amount of the Class X-A-2 Certificates will be equal to sum
of the Certificate Principal Amount of the Class A-1 and A-2 Certificates
immediately prior to such Distribution Date. The Class X-

                                       17
<PAGE>

A-2 Certificates are entitled to receive on each Distribution Date, the sum of
the amount of interest accrued on the Pool 1 Companion Component and the Pool 2
Companion Component.

(7)      The Class X-B Certificates will represent a 100% interest in Component
XB2. See the definition of "Component XB2" for the interest rate and notional
balance of this Component.

(8)      The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for the Class A-R Certificate will equal the
Pool 1 Net WAC.

(9)      The Certificate Interest Rates with respect to any Distribution Date
(and the related Accrual Period) for the Class B-1, Class B-3, Class B-4, Class
B-5 and Class B-6 Certificates will be equal to the Subordinate Net WAC.

(10)     The Certificate Interest Rate with respect to any Distribution Date
(and the related Accrual Period) for the Class B-2 Certificates will be the
least of (i) LIBOR plus 1.30%; (ii) the Subordinate Net WAC and (iii) 11.75%;
provided, however, if the Mortgage Loans and related property are not purchased
pursuant to Section 7.01(c) on the Initial Optional Purchase Date, then with
respect to each subsequent Distribution Date the per annum rate calculated
pursuant to clause (i) above with respect to the Class B-2 Certificates will be
LIBOR plus 1.95%.

         As of the Cut-off Date, the Mortgage Loans had an aggregate Scheduled
Principal Balance of $1,000,000,177.69.

         In consideration of the mutual agreements herein contained, the
Depositor and the Trustee hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01 Definitions.

         The following words and phrases, unless the context otherwise requires,
shall have the following meanings:

         Accountant: A Person engaged in the practice of accounting who (except
when this Agreement provides that an Accountant must be Independent) may be
employed by or affiliated with the Depositor or an Affiliate of the Depositor.

         Accrual Period: With respect to any Distribution Date and any Class of
LIBOR Certificates, the period commencing on the 25th day of the month preceding
the month in which the Distribution Date occurs and ending on the 24th day of
the month in which the Distribution Date occurs; provided, however, that the
first Accrual Period with respect to the LIBOR Certificates shall be the period
beginning on the Closing Date and ending on December 24, 2003. The Accrual
Period applicable to the Components, the Class A-3, Class A-4A, Class A-4B,
Class A-R, Class B-1, Class B-3, Class B-4, Class B-5, Class B-6 Certificates
and each Class of Lower Tier REMIC Interests shall be the calendar month
immediately preceding the month in which the

                                       18
<PAGE>

related Distribution Date occurs. Interest shall accrue on all Classes of
Certificates, all Components and on all Lower Tier REMIC Interests on the basis
of a 360-day year consisting of twelve 30-day months.

         Act: The Securities Act of 1933, as amended.

         Additional Collateral: With respect to any Additional Collateral
Mortgage Loan, the meaning assigned thereto in the Mortgage Loan Purchase and
Sale Agreement.

         Additional Collateral Mortgage Loan: Each Mortgage Loan identified as
such in the Mortgage Loan Schedule.

         Adjustment Date: As to any Mortgage Loan, the date on which the related
Mortgage Rate adjusts in accordance with the terms of the related Mortgage Note.

         Advance: With respect to a Mortgage Loan, the payments required to be
made by the Trustee solely in its capacity as successor Servicer or by the
Servicer with respect to any Distribution Date pursuant to this Agreement or the
Servicing Agreement, as applicable, the amount of any such payment being equal
to the aggregate of the payments of principal and interest (net of the
applicable Servicing Fee and net of any net income in the case of any REO
Property) on the Mortgage Loans that were due on the related Due Date and not
received as of the close of business on the related Determination Date, less the
aggregate amount of any such delinquent payment that either the Trustee or the
Servicer has determined would constitute Nonrecoverable Advances if advanced.

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

         Aggregate Senior Percentage: As to any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the aggregate of
the Class Principal Amounts of the Class A-1, Class A-2, Class A-3, Class A-4A,
Class A-4B and Class A-R Certificates and the denominator of which is the
Aggregate Stated Principal Balance, but in no event greater than 100%.

         Aggregate Stated Principal Balance: As to any Distribution Date, the
aggregate of the Stated Principal Balances for all Mortgage Loans (and when such
term is used with respect to a particular Mortgage Pool, the aggregate of the
Stated Principal Balances of the Mortgage Loans in such Mortgage Pool) which
were outstanding on the Due Date in the month preceding the month of such
Distribution Date.

         Aggregate Subordinate Percentage: As to any Distribution Date, the
difference between 100% and the Aggregate Senior Percentage for such
Distribution Date, but in no event less than zero.

                                       19
<PAGE>

         Aggregate Voting Interests: The aggregate of the Voting Interests of
all the Certificates under this Agreement.

         Agreement: This Trust Agreement and all amendments and supplements
hereto.

         Allocable Share: With respect to each Class of Subordinate Certificates
and any Distribution Date, the percentage equivalent of a fraction, the
numerator of which is the Class Principal Amount of such Class and the
denominator of which is the aggregate of the Class Principal Amounts of each
Class of Subordinate Certificates.

         Applicable Credit Support Percentage: As to any Class of Subordinate
Certificates and any Distribution Date, the sum of the Class Subordination
Percentages of such Class and the aggregate Class Subordination Percentage of
all other Classes of Subordinate Certificates having higher numerical Class
designations than such Class.

         Apportioned Principal Balance: As to any Distribution Date and each
Class of Subordinate Certificates and any Mortgage Pool, the Class Principal
Amount thereof multiplied by a fraction, the numerator of which is the
applicable Pool Subordinate Amount (i.e., the Pool 1 Subordinate Amount, the
Pool 2 Subordinate Amount, the Pool 3 Subordinate Amount or the Pool 4
Subordinate Amount, as the case may require), and the denominator of which is
the sum of such Pool Subordinate Amounts on such date.

         Appraised Value: With respect to any Mortgage Loan, the Appraised Value
of the related Mortgaged Property shall be: (i) with respect to a Mortgage Loan
other than a Refinancing Mortgage Loan, the lesser of (a) the value of the
Mortgaged Property based upon the appraisal made at the time of the origination
of such Mortgage Loan and (b) the sales price of the Mortgaged Property at the
time of the origination of such Mortgage Loan; and (ii) with respect to a
Refinancing Mortgage Loan, the value of the Mortgaged Property based upon the
appraisal made at the time of the origination of such Refinancing Mortgage Loan.

         Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument, in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
the sale of the Mortgage to the Trustee, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering the Mortgage Loans secured by Mortgaged Properties located in the same
jurisdiction, if permitted by law; provided, however, that the Trustee shall not
be responsible for determining whether any such assignment is in recordable
form.

         Authenticating Agent: The Trustee or any authenticating agent appointed
by the Trustee pursuant to Section 6.10 until any successor authenticating agent
for the Certificates is named, and thereafter "Authenticating Agent" shall mean
any such successor.

         Authorized Officer: Any Person who may execute an Officer's Certificate
on behalf of the Depositor.

         Available Distribution Amount: With respect to any Distribution Date
and each Mortgage Pool, the total amount of all cash received by the Trustee on
the Mortgage Loans in such Mortgage Pool from the Servicer or otherwise through
the Distribution Account Deposit

                                       20
<PAGE>

Date for deposit into the Distribution Account in respect of such Distribution
Date, including (1) all scheduled installments of interest (net of the related
Servicing Fee) and principal collected on the related Mortgage Loans and due
during the Due Period related to such Distribution Date, together with any
Advances in respect thereof, (2) all Insurance Proceeds, Liquidation Proceeds
and the proceeds of any Additional Collateral from the related Mortgage Loans,
in each case for such Distribution Date, (3) all partial or full Principal
Prepayments, together with any accrued interest thereon, identified as having
been received from the related Mortgage Loans during the related Prepayment
Period, (4) any amounts received from the Servicer in respect of Prepayment
Interest Shortfalls with respect to the related Mortgage Loans; and (5) the
aggregate Purchase Price of all Defective Mortgage Loans and Converted Mortgage
Loans (if any) in such Mortgage Pool purchased from the Trust Fund during the
related Prepayment Period, minus:

         (A)      all related fees, charges and amounts payable or reimbursable
to the Trustee under this Agreement, to the extent that, if paid by the Trust
Fund, such fees, charges or other amounts would constitute "unanticipated
expenses" (within the meaning of Treasury Regulations Section
1.860G-1(b)(3)(ii)) of any of the REMICs provided for herein and up to an
aggregate maximum amount equal to the product of (i) the applicable Pool
Percentage and (ii) $300,000 annually such aggregate maximum amount not to
include any Servicing Transfer Costs, or to the Servicer under the Servicing
Agreement;

         (B)      in the case of (2), (3), (4) and (5) above, any related
unreimbursed expenses incurred by the Servicer in connection with a liquidation
or foreclosure and any unreimbursed Advances or Servicing Advances due to the
Servicer (or, pursuant to Section 5.04, the Trustee);

         (C)      any related unreimbursed Nonrecoverable Advances due to the
Servicer (or, pursuant to Section 5.04, the Trustee); and

         (D)      in the case of (1) through (4) above, any related amounts
collected which are determined to be attributable to a subsequent Due Period or
Prepayment Period.

         Bankruptcy: As to any Person, the making of an assignment for the
benefit of creditors, the filing of a voluntary petition in bankruptcy,
adjudication as a bankrupt or insolvent, the entry of an order for relief in a
bankruptcy or insolvency proceeding, the seeking of reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief, or
seeking, consenting to or acquiescing in the appointment of a trustee, receiver
or liquidator, dissolution, or termination, as the case may be, of such Person
pursuant to the provisions of either the Bankruptcy Code or any other similar
state laws.

         Bankruptcy Code: The United States Bankruptcy Code of 1986, as amended.

         Basis Risk Shortfall: With respect to any Distribution Date and any
Class of LIBOR Certificates, the excess, if any, of (i) the amount of Current
Interest that would have been payable on such Class for such Distribution Date
if the Certificate Interest Rate for such Class as set forth in the Preliminary
Statement hereto were determined without regard to clause (ii) in the definition
thereof, over (ii) the actual Current Interest payable on such Class for such
Distribution Date.

         BBA: The British Banker's Association.

                                       21
<PAGE>

         Book-Entry Certificates: Beneficial interests in Certificates
designated as "Book-Entry Certificates" in this Agreement, ownership and
transfers of which shall be evidenced or made through book entries by a Clearing
Agency as described in Section 3.09; provided, that after the occurrence of a
Book-Entry Termination whereupon book-entry registration and transfer are no
longer permitted and Definitive Certificates are to be issued to Certificate
Owners, such Book-Entry Certificates shall no longer be "Book-Entry
Certificates." As of the Closing Date, the following Classes of Certificates
constitute Book-Entry Certificates: the Class A-1, Class A-2, Class A-3, Class
A-4A, Class A-4B, Class X-A-1, Class X-A-2, Class B-1, Class B-2, Class B-3,
Class B-4, Class B-5, Class B-6 and Class X-B.

         Book-Entry Termination: The occurrence of any of the following events:
(i) the Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Book Entry Certificates, and the Depositor
is unable to locate a qualified successor; or (ii) the Depositor at its option
advises the Trustee and the Certificate Registrar in writing that it elects to
terminate the book-entry system through the Clearing Agency.

         Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in New York, New York or, if other than New
York, the city in which the Corporate Trust Office of the Trustee is located, or
the States of Maryland or Minnesota, are authorized or obligated by law or
executive order to be closed.

         Cendant: Cendant Mortgage Corporation or its successors in interest.

         Certificate: Any one of the certificates signed by the Trustee and
authenticated by the Authenticating Agent in substantially the forms attached
hereto as Exhibit A.

         Certificate Group: Each of the Group 1 Certificates, the Group 2
Certificates, the Group 3 Certificates and the Group 4 Certificates.

         Certificate Interest Rate: With respect to each Class of Certificates
and any Distribution Date, the applicable per annum rate described in the
Preliminary Statement hereto.

         Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the owner of such Book-Entry Certificate, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly or as an indirect participant, in accordance with
the rules of such Clearing Agency).

         Certificate Principal Amount: With respect to any Certificate (other
than a Class X-A-1, Class X-A-2 or Class X-B Certificate), at the time of
determination, the maximum specified dollar amount of principal to which the
Holder thereof is then entitled hereunder, such amount being equal to the
initial principal amount set forth on the face of such Certificate, less (i) the
amount of all principal distributions previously made with respect to such
Certificate; (ii) all Realized Losses allocated to such Certificate; and (iii)
in the case of a Subordinate Certificate, any Subordinate Certificate Writedown
Amount allocated to such Certificates. For purposes of Article V hereof, unless
specifically provided to the contrary, Certificate Principal Amounts shall be
determined as of the close of business of the immediately preceding Distribution
Date, after giving effect to all distributions made on such date.

                                       22
<PAGE>

         Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed pursuant to Section 3.02.

         Certificateholder: The meaning provided in the definition of "Holder."

         Change Date: With respect to each REMIC 3 Regular Interest, the
Distribution Date in the calendar month appearing opposite such Lower Tier REMIC
Interest as described in the Preliminary Statement hereto.

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

         Class: Collectively, Certificates bearing the same class designation.
In the case of the REMIC 1, REMIC 2, REMIC 3, REMIC 4 and the Upper Tier REMIC,
the term "Class" refers to all REMIC Interests having the same alphanumeric
designation.

         Class A-R Certificate: The Class A-R Certificate executed by the
Trustee, and authenticated and delivered by the Authenticating Agent,
substantially in the form annexed hereto as Exhibit A, and evidencing the
ownership of the Class LT1-R Interest, the Class LT2-R Interest, the Class LT3-R
Interest, the Class LT4-R Interest and the residual interest in the Upper Tier
REMIC.

         Class Notional Amount: With respect to the Class X-A-1 or Class X-A-2
Certificates, the applicable class notional amount calculated as provided in the
Preliminary Statement hereto.

         Class Principal Amount: With respect to each Class of Certificates
(other than a Class X-A-1, Class X-A-2 or Class X-B Certificate) the aggregate
of the Certificate Principal Amounts of all Certificates of such Class at the
date of determination.

         Class X Certificates: Any of the Class X-A-1, Class X-A-2 or Class X-B
Certificates.

         Class Subordination Percentage: With respect to each Class of
Subordinate Certificates, for each Distribution Date, the percentage obtained by
dividing the Class Principal Amount of such Class immediately prior to such
Distribution Date by the sum of the Class Principal Amounts of all Classes of
Certificates immediately prior to such Distribution Date.

         Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. As
of the Closing Date, the Clearing Agency shall be The Depository Trust Company.

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

         Closing Date: December 12, 2003.

         Code: The Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

                                       23
<PAGE>

         Compensating Interest Payment: As to any Distribution Date, the lesser
of (1) the Servicing Fee for such date and (2) any Prepayment Interest Shortfall
for such date.

         Component Interest Rate: With respect to the Pool 1 NAS Component,
1.00% per annum subject to a cap equal to the Pool 1 Net WAC. With respect to
the Pool 1 Companion Component, the interest rate specified in the definition of
Pool 1 Companion Component. With respect to the Pool 2 NAS Component, 1.00% per
annum subject to a cap equal to the Pool 2 Net WAC. With respect to the Pool 2
Companion Component, the interest rate specified in the definition of Pool 2
Companion Component. With respect to Component XB2 and any Distribution Date,
the interest rate specified in the definition of Component XB2.

         Component Notional Amount: With respect to the Pool 1 NAS Component and
any Distribution Date, the Pool 1 NAS Notional Principal Amount. With respect to
the Pool 2 NAS Component and any Distribution Date, the Pool 2 NAS Notional
Principal Amount. With respect to the Pool 1 Companion Component and any
Distribution Date, the Pool 1 Companion Notional Principal Amount. With respect
to the Pool 2 Companion Component and any Distribution Date, the Pool 2
Companion Notional Principal Amount. With respect to Component XB2 and any
Distribution Date, the notional amount specified in the definition of Component
XB2.

         Component XB2: A regular interest in the Upper Tier REMIC having a
notional amount equal to the Class Principal Amount of the Class B-2
Certificates immediately before the related Distribution Date and having an
interest rate with respect to any Distribution Date (and the related Accrual
Period) equal to the excess of the Subordinate Net WAC over the Certificate
Interest Rate on the Class B-2 Certificates.

         Components: Each of the Pool 1 NAS Component, the Pool 1 Companion
Component, the Pool 2 NAS Component, the Pool 2 Companion Component and
Component XB2.

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

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

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, that includes the allocation of individual dwelling
units to the holders of the shares of the Cooperative Corporation.

         Cooperative Shares: Shares issued by a Cooperative Corporation.

         Corporate Trust Office: With respect to the presentment of Certificates
for registration of transfer, exchange or final payment, Wells Fargo Bank
Minnesota, National Association, Sixth Street and Marquette Avenue, Minneapolis,
Minnesota 55479, Attention: Merrill Lynch Mortgage Investors Trust Series MLCC
2003-G and for all other purposes, Wells Fargo Bank Minnesota, National
Association, 9062 Old Annapolis Road, Columbia, Maryland 21045,

                                       24
<PAGE>

Attention: Client Manager - MLCC 2003-G, or such other address as the Trustee
may designate from time to time by notice to the Certificateholders.

         Corresponding Classes of Certificates or Components: With respect to
each Lower Tier REMIC Interest, the Class or Classes of Certificates or
Components appearing opposite such Lower Tier REMIC Interest as described in the
Preliminary Statement hereto.

         Corresponding REMIC 2 Regular Interest: With respect to each REMIC 3
Regular Interest, the REMIC 2 Regular Interest appearing opposite such REMIC 3
Regular Interest as described in the Preliminary Statement hereto.

         Credit Support Depletion Date: The first Distribution Date, if any, on
which the aggregate Certificate Principal Amounts of the Subordinate
Certificates have been reduced to zero.

         Current Interest: With respect to each Class of Certificates and each
Component on each Distribution Date, the aggregate amount of interest accrued at
the applicable Certificate Interest Rate or Component Interest Rate during the
related Accrual Period on the Class Principal Amount or Component Notional
Amount of such Class or Component; provided, however, that on any Distribution
Date the Current Interest for the Pool NAS Component and Pool Companion
Component related to a particular Mortgage Pool is subject to the Current
Interest Restriction.

         Current Interest Restriction: As to any Distribution Date, the
aggregate Current Interest for a Pool NAS Component and related Pool Companion
Component for such Distribution Date cannot exceed the excess of (i) the Current
Interest that would have accrued on the related Class A Certificates for such
Distribution Date had the Certificate Interest Rate for such class of Class A-1
or Class A-2 Certificates been equal to the related Pool Net WAC over (ii) the
actual Current Interest on such class of Class A-1 or Class A-2 Certificates for
such Distribution Date. The determinations required by clauses (i) and (ii)
shall be made as though the first Accrual Period with respect to the Class A-1
or Class A-2 Certificates began on November 25, 2003. For purposes of the
Current Interest Restriction, the Class A-1 Certificates shall be related to the
Pool 1 Components and the Class A-2 Certificates will be related to the Pool 2
Components.

         Custodial Accounts: Each custodial account (other than an Escrow
Account) established and maintained by the Servicer pursuant to the Servicing
Agreement.

         Custody Agreement: The Custodial Agreement, dated as of December 15,
2000, between Merrill Lynch Credit Corporation and Wells Fargo Bank Minnesota,
N.A., as custodian, as amended by Amendment No. 1, dated as of January 16, 2002
a copy of which (excluding all exhibits thereto) is attached hereto as Exhibit
O.

         Cut-off Date: November 1, 2003.

         Cut-off Date Balance: With respect to the Mortgage Loans in the Trust
Fund on the Closing Date, the Aggregate Stated Principal Balance as of the
Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for

                                       25
<PAGE>

such Mortgage Loan which became final and non-appealable, except such a
reduction resulting from a Deficient Valuation or any reduction that results in
a permanent forgiveness of principal.

         Defective Mortgage Loan: The meaning specified in Section 2.04(a).

         Deficient Valuation: With respect to any Mortgage Loan, a valuation of
the related Mortgaged Property by a court of competent jurisdiction in an amount
less than the then outstanding indebtedness under the Mortgage Loan, or any
reduction in the amount of principal to be paid in connection with any Scheduled
Payment that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court which is final and non-appealable
in a proceeding under the Bankruptcy Code.

         Definitive Certificate: A Certificate of any Class issued in
definitive, fully registered, certificated form.

         Deleted Mortgage Loan: As defined in Section 2.04(a).

         Delinquent: Any Mortgage Loan with respect to which the Scheduled
Payment due on a Due Date is not received.

         Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware
corporation, having its principal place of business at 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, or its successors in
interest.

         Determination Date: With respect to each Distribution Date, the 15th
day of the month in which such Distribution Date occurs, or, if such 15th day is
not a Business Day, the next succeeding Business Day.

         Disqualified Organization: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code.

         Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 4.01 in the name of the Trustee
for the benefit of the Certificateholders and designated "Wells Fargo Bank
Minnesota, National Association, in trust for registered holders of Merrill
Lynch Mortgage Investors Trust Series MLCC 2003-G, Mortgage Pass-Through
Certificates." Funds in the Distribution Account (exclusive of any earnings on
investments made with funds deposited in the Distribution Account) shall be held
in trust for the Trustee and the Certificateholders for the uses and purposes
set forth in this Agreement.

         Distribution Account Deposit Date: The 18th day of each calendar month
after the initial issuance of the Certificates or, if such 18th day is not a
Business Day, the immediately preceding Business Day, commencing in December
2003.

         Distribution Date: The 25th day of each month or, if such 25th day is
not a Business Day, the next succeeding Business Day, commencing in December
2003.

                                       26
<PAGE>

         Due Date: With respect to any Mortgage Loan, the date on which a
Scheduled Payment is due under the related Mortgage Note as indicated in the
Mortgage Note.

         Due Period: As to any Distribution Date, the period beginning on the
second day of the month preceding the month of such Distribution Date, and
ending on the first day of the month of such Distribution Date.

         Effective Loan-to-Value Ratio: A fraction, expressed as a percentage,
the numerator of which is the original Stated Principal Balance of the Mortgage
Loan, less the amount of Additional Collateral required to secure such Mortgage
Loan at the time of origination, if any, and the denominator of which is the
Appraised Value of the related Mortgage Property at such date.

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

         ERISA: The Employee Retirement Income Security Act of 1974, as amended,
and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Labor regulations issued pursuant
thereto in temporary or final form.

         ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

         ERISA-Restricted Certificate: The Class A-R, Class B-4, Class B-5 or
Class B-6 Certificates.

         Escrow Account: As defined in the Servicing Agreement.

         Event of Default: The failure of the Servicer to perform any of its
obligations under the Servicing Agreement.

                                       27
<PAGE>

         Fannie Mae: The entity formerly known as the Federal National Mortgage
Association, a federally chartered and privately owned corporation organized and
existing under the Federal National Mortgage Association Charter Act, or any
successor thereto.

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

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

         Final Certification: As referred to in Section 2.02(c), the form of
which is set forth at Exhibit L.

         Fitch Ratings: Fitch, Inc., or any successor in interest.

         Global Securities: The global certificates representing the Book-Entry
Certificates.

         Group 1: All of the Group 1 Certificates.

         Group 1 Certificate: Any Class A-1 or Class A-R Certificate.

         Group 2: All of the Group 2 Certificates.

         Group 2 Certificate: Any Class A-2 Certificate.

         Group 3: All of the Group 3 Certificates.

         Group 3 Certificate: Any Class A-3 Certificate.

         Group 4: All of the Group 4 Certificates.

         Group 4 Certificate: Any Class A-4A or Class A-4B Certificates.

         Holder or Certificateholder: The registered owner of any Certificate as
recorded on the books of the Certificate Registrar except that, solely for the
purposes of taking any action or giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Depositor, the Trustee or the
Servicer, or any Affiliate thereof shall be deemed not to be outstanding in
determining whether the requisite percentage necessary to effect any such
consent has been obtained, except that, in determining whether the Trustee shall
be protected in relying upon any such consent, only Certificates which a
Responsible Officer of the Trustee knows to be so owned shall be disregarded.
The Trustee may request and conclusively rely on certifications by the Depositor
and the Servicer in determining whether any Certificates are registered to an
Affiliate of the Depositor or the Servicer.

         HUD: The United States Department of Housing and Urban Development, or
any successor thereto.

         Independent: When used with respect to any Accountants, a Person who is
"independent" within the meaning of Rule 2-01(b) of the Securities and Exchange
Commission's

                                       28
<PAGE>

Regulation S-X. When used with respect to any other Person, a Person who (a) is
in fact independent of another specified Person and any Affiliate of such other
Person, (b) does not have any material direct financial interest in such other
Person or any Affiliate of such other Person, and (c) is not connected with such
other Person or any Affiliate of such other Person as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar
functions.

         Index: As to each Mortgage Loan, the index from time to time in effect
for adjustment of the Mortgage Rate as set forth as such on the related Mortgage
Note.

         Initial Certification: As referred to Section 2.02(a), the form of
which is set forth at Exhibit K.

         Initial LIBOR Rate: 1.12% with respect to the Class A-1 and Class B-2
Certificates and 1.22% with respect to the Class A-2 Certificates.

         Initial Optional Purchase Date: The first Distribution Date following
the date on which the Aggregate Stated Principal Balance is less than 10.00% of
the Cut-off Date Balance.

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

         Insurance Proceeds: Proceeds paid by any Insurance Policy (excluding
proceeds required to be applied to the restoration and repair of the related
Mortgaged Property or released to the Mortgagor), in each case other than any
amount included in such Insurance Proceeds in respect of Insured Expenses and
(i) the proceeds from any Limited Purpose Surety Bond.

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

         Interest Distribution Amount: For each Class of Certificates or
Component, on any Distribution Date, the Current Interest for such Class or
Component, as reduced by such Class's or Component's share of Net Prepayment
Interest Shortfalls and Relief Act Reductions. Any such shortfalls and
reductions shall be allocated among (i) all Classes of Certificates (other than
the Interest Only Certificates) of the related Certificate Group from such
Mortgage Pool, (ii) the Pool 1 NAS Component, Pool 1 Companion Component, Pool 2
NAS Component or the Pool 2 Companion Component, as the case may be, and (iii)
the Subordinate Certificates proportionately on the basis of (1) in the case of
the Senior Certificates (other than the Class X Certificates), Current Interest
otherwise distributable thereon on such Distribution Date; (2) in the case of
the Pool NAS Component and the Pool Companion Component related to a Mortgage
Pool, Current Interest otherwise distributable in respect thereof on such
Distribution Date and (3) in the case of Subordinate Certificates, interest
accrued at the Net WAC of the applicable Mortgage Pool on their Apportioned
Principal Balance before taking into account any reductions in such amounts from
Net Interest Shortfalls for that Distribution Date.

         Interest-Only Certificates: Any of the Class X-A-1, Class X-A-2 and
Class X-B Certificates.

                                       29
<PAGE>

         Interest Shortfall: As to any Class of Certificates or Component and
any Distribution Date, (i) the amount by which the Interest Distribution Amount
(exclusive of any payments to such Class in respect of Basis Risk Shortfalls or
Unpaid Basis Risk Shortfalls) for such Class or Component on such Distribution
Date and all prior Distribution Dates exceeds (ii) amounts distributed in
respect thereof to such Class or Component on prior Distribution Dates (as
determined without reduction for amounts not paid to such Class or in respect of
such Component as a result of the provisos set forth in Sections 5.02(a)(i) and
5.02(b) hereof.

         Interest Transfer Amount: For any Distribution Date and for any
Undercollateralized Group, an amount equal to one month's interest on the
applicable Principal Transfer Amount at the weighted average Certificate
Interest Rate of the applicable Undercollateralized Group, plus any interest
accrued on such Undercollateralized Group remaining unpaid from prior
Distribution Dates.

         Intervening Assignments: The original intervening assignments of the
Mortgage, notices of transfer or equivalent instrument.

         Latest Possible Maturity Date: The Distribution Date in January 2029.

         LIBOR: With respect to the first Accrual Period, the Initial LIBOR
Rate. With respect to each subsequent Accrual Period, a per annum rate
determined on the LIBOR Determination Date in the following manner by the
Trustee on the basis of the "Interest Settlement Rate" set by the BBA for
one-month (or six-month with respect to the Class A-2 Certificates) United
States dollar deposits, as such rates appear on the Telerate Page 3750, as of
11:00 a.m. (London time) on such LIBOR Determination Date.

         (a)      If on such a LIBOR Determination Date, the BBA's Interest
Settlement Rate does not appear on the Telerate Page 3750 as of 11:00 a.m.
(London time), or if the Telerate Page 3750 is not available on such date, the
Trustee will obtain such rate from Reuters' "page LIBOR 01" or Bloomberg's page
"BBAM." If such rate is not published for such LIBOR Determination Date, LIBOR
for such date will be the most recently published Interest Settlement Rate. In
the event that the BBA no longer sets an Interest Settlement Rate, the Trustee
will designate an alternative index that has performed, or that the Trustee
expects to perform, in a manner substantially similar to the BBA's Interest
Settlement Rate. The Trustee will select a particular index as the alternative
index only if it receives an Opinion of Counsel, which opinion shall be an
expense reimbursed from the Distribution Account, that the selection of such
index will not cause any of the REMICs to lose their classification as REMICs
for federal income tax purposes.

         (b)      The establishment of LIBOR by the Trustee and the Trustee's
subsequent calculation of the Certificate Interest Rate applicable to the LIBOR
Certificates for the relevant Accrual Period, in the absence of manifest error,
will be final and binding.

         LIBOR Business Day: Any day on which banks in London, England and The
City of New York are open and conducting transactions in foreign currency and
exchange.

         LIBOR Certificate: Any Class A-1, Class A-2 and Class B-2 Certificate.

                                       30
<PAGE>

         LIBOR Determination Date: With respect to any LIBOR Certificates other
than the Class A-2 Certificates, the second LIBOR Business Day immediately
preceding the commencement of each Accrual Period and with respect to the Class
A-2 Certificates, the second LIBOR Business Day immediately preceding every
sixth Accrual Period beginning with the Accrual Period commencing during May
2004.

         Limited Purpose Surety Bond: Any Limited Purpose Surety Bond listed in
Exhibit F.

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

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

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

         Lower Tier REMIC Interests: Any of the REMIC 1 Interests, the REMIC 2
Interests, the REMIC 3 Interests or the REMIC 4 Interests.

         Lower Tier Regular Interests: Any of the REMIC 1 Regular Interests, the
REMIC 2 Regular Interests, the REMIC 3 Regular Interests or the REMIC 4 Regular
Interests.

         Margin: As to each Mortgage Loan, the percentage amount set forth on
the related Mortgage Note added to the Index in calculating the Mortgage Rate
thereon.

         Material Defect: As defined in Section 2.02(b).

         Maximum Rate: As to any Mortgage Loan, the maximum rate set forth on
the related Mortgage Note at which interest can accrue on such Mortgage Loan.

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

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

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

                                       31
<PAGE>

         Moody's: Moody's Investors Service, Inc., or any successor in interest.

         Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.02.

         Mortgage: A mortgage, deed of trust or other instrument encumbering a
fee simple interest in real property securing a Mortgage Note, together with
improvements thereto.

         Mortgage Documents: With respect to each Mortgage Loan, the mortgage
documents required to be delivered to the Trustee pursuant to the Trust
Agreement.

         Mortgage Loan: A Mortgage and the related notes or other evidences of
indebtedness secured by each such Mortgage conveyed, transferred, sold, assigned
to or deposited with the Trustee pursuant to Section 2.01 (including any
Replacement Loan and REO Property), including without limitation, each Mortgage
Loan listed on the Mortgage Loan Schedule, as amended from time to time.

         Mortgage Loan Purchase and Sale Agreement: The Mortgage Loan Purchase
and Sale Agreement, dated as of November 1, 2003, between the Seller and the
Depositor with respect to the sale and purchase of the Mortgage Loans.

         Mortgage Loan Schedule: The schedule attached hereto as Schedule A,
which shall identify each Mortgage Loan, as such schedule may be amended by the
Depositor or the Servicer from time to time to reflect the addition of
Replacement Mortgage Loans to, or the deletion of Deleted Mortgage Loans from,
the Trust Fund. Such schedule shall, among other things (1) identify the
designated Mortgage Pool in which such Mortgage Loan is included and (2)
separately identify One-Month LIBOR Loans, Six-Month LIBOR Loans and Additional
Collateral Mortgage Loans.

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

         Mortgage Pools: Any of Pool 1, Pool 2, Pool 3 and Pool 4.

         Mortgage Rate: As to any Mortgage Loan, the annual rate of interest
borne by the related Mortgage Notes.

         Mortgaged Property: The underlying property, including any Additional
Collateral, securing a Mortgage Loan which, with respect to a Cooperative Loan,
is the related Cooperative Shares and Property Lease.

         Mortgagor: The obligor on a Mortgage Note.

         Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan
or any other disposition of related Mortgaged Property, the related Liquidation
Proceeds net of Advances, Servicer Advances, related Servicing Fees and any
other accrued and unpaid fees received and retained in connection with the
liquidation of such Mortgage Loan or Mortgaged Property.

                                       32
<PAGE>

         Net Interest Shortfalls: With respect to any Distribution Date, any Net
Prepayment Interest Shortfalls for that Distribution Date and the amount of
interest that would otherwise have been received with respect to any Mortgage
Loan which was subject to (i) a Relief Act Reduction or (ii) the interest
portion of any Debt Service Reduction or Deficient Valuation, after exhaustion
of the respective amounts of coverage provided by the Subordinate Certificates
for those type of losses.

         Net Mortgage Rate: With respect to any Mortgage Loan and any
Distribution Date, the related Mortgage Rate as of the Due Date in the month
preceding the month of such Distribution Date reduced by the Servicing Fee Rate
for such Mortgage Loan.

         Net Prepayment Interest Shortfall: With respect to any Mortgage Loan
and any Distribution Date, the amount by which any Prepayment Interest Shortfall
for such date exceeds the amount payable by the Servicer in respect of such
shortfall.

         Net WAC: As to any Distribution Date, the weighted average of the Net
Mortgage Rates of the Mortgage Loans as of the Due Date of the month preceding
the month of such Distribution Date, weighted on the basis of their outstanding
Stated Principal Balances (after giving effect to the Scheduled Payments due on
or before such Due Date and Principal Prepayments received prior to such Due
Date) at such time. When the term "Net WAC" is used herein with reference to
only the One-Month LIBOR Loans or only the Six-Month LIBOR Loans, such weighted
average shall be computed with reference solely to the Mortgage Loans in the
relevant group.

         Non-Book-Entry Certificate: Any Certificate other than a Book-Entry
Certificate.

         Non-permitted Foreign Holder: As defined in Section 3.03(f).

         Nonrecoverable Advance: Any portion of an Advance or Servicer Advance
previously made or proposed to be made by the Servicer (as certified in an
Officer's Certificate of the Servicer) or by the Trustee pursuant to Section
5.04, which in the good faith judgment of such party, shall not be ultimately
recoverable by such party from the related Mortgagor, related Liquidation
Proceeds or otherwise.

         Non-U.S. Person: Any person other than a "United States person" within
the meaning of Section 7701(a)(30) of the Code.

         Notional Amount: With respect to any Notional Certificate and any
Distribution Date, such Certificate's Percentage Interest of the Class Notional
Amount of such Class of Certificates for such Distribution Date.

         Notional Certificate: Any Class X-A-1 or Class X-A-2 Certificate.

         Offering Document: The Prospectus.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a vice president (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries (or any other officer
customarily performing functions similar to those performed by any of the

                                       33
<PAGE>

above designated officers and also to whom, with respect to a particular matter,
such matter is referred because of such officer's knowledge of and familiarity
with a particular subject) of the Depositor or the Trustee, as the case may be,
and delivered to the Depositor or the Trustee, as the case may be, as required
by this Agreement.

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

         One-Month LIBOR Loan: Each Mortgage Loan bearing a Mortgage Rate that
adjusts in accordance with LIBOR for one-month U.S. dollar deposits.

         Opinion of Counsel: A written opinion of counsel, reasonably acceptable
in form and substance to the Trustee and who may be in-house or outside counsel
to the Depositor or the Trustee but which must be Independent outside counsel
with respect to any such opinion of counsel concerning the transfer of any
Residual Certificate or concerning certain matters with respect to ERISA, or the
taxation, or the federal income tax status, of each REMIC.

         Optional Termination Price: An amount equal to the sum of (i) 100% of
the Stated Principal Balance of the Mortgage Loans (other than any Mortgage Loan
that has become an REO Property) plus accrued interest thereon at the applicable
Mortgage Rate and the fair market value of any REO Property plus accrued
interest thereon; (ii) any unreimbursed costs and damages incurred by the Trust
Fund (or the Trustee on behalf of the Trust Fund) in connection with the
violation of any anti-predatory or anti-abusive lending laws; and (iii) the
payment of all amounts (including, without limitation, all previously
unreimbursed Advances and Servicing Advances and accrued and unpaid Servicing
Fees) payable or reimbursable to the Servicer or Trustee.

         Original Applicable Credit Support Percentage: With respect to each
Class of Subordinate Certificates, the corresponding percentage set forth
opposite its Class designation: Class B-1 - 3.10%; Class B-2 - 2.05%; Class B-3
- 1.25%; Class B-4 - 0.80%; Class B-5 - 0.55%; and Class B-6 - 0.35%.

         Original Subordinate Principal Amount: The aggregate of the initial
Class Principal Amounts of the Classes of Subordinated Certificates.

         Overcollateralized Group: On any Distribution Date, any Certificate
Group which is not an Undercollateralized Group.

         Parent Power(R) Guaranty and Security Agreement: With respect to any
Additional Collateral Loan, as defined in the Mortgage Loan Purchase and Sale
Agreement.

         Paying Agent: Any paying agent appointed by the Trustee pursuant to
Section 3.08.

         Percentage Interest: With respect to any Certificate, its percentage
interest in the undivided beneficial ownership interest in the Trust Fund
evidenced by all Certificates of the

                                       34
<PAGE>

same Class as such Certificate. With respect to any Certificate other
than a Notional Certificate, a Class X-B Certificate or the Class A-R
Certificate, the Percentage Interest evidenced thereby shall equal the initial
Certificate Principal Amount thereof divided by the initial Class Principal
Amount of all Certificates of the same Class. With respect to the Class A-R
Certificate, the Percentage Interest evidenced thereby shall be as specified on
the face thereof, or otherwise, be equal to 100%. With respect to any Notional
Certificate, the Percentage Interest evidenced thereby shall equal its initial
Notional Amount as set forth on the face thereof divided by the initial Class
Notional Amount of such Class. With respect to any Class X-B Certificate, the
Percentage Interest represented thereby shall equal the initial aggregate
Component Notional Amount thereof divided by the initial Component Notional
Amount of all of the Certificates of the same class.

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

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

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

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

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

                  (v)      guaranteed reinvestment agreements issued by any
         bank, insurance company or other corporation acceptable to the Rating
         Agencies at the time of the issuance of such agreements, as evidenced
         by a signed writing delivered by each Rating Agency;

                                       35
<PAGE>

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

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

                  (viii)   interests in any money market fund which at the date
         of acquisition of the interests in such fund and throughout the time
         such interests are held in such fund has the highest applicable rating
         by each Rating Agency rating such fund or such lower rating as shall
         not result in a change in the rating then assigned to the Certificates
         by each Rating Agency including funds for which the Trustee or any of
         its Affiliates is investment manager or adviser;

                  (ix)     short-term investment funds sponsored by any trust
         company or national banking association incorporated under the laws of
         the United States or any state thereof which on the date of acquisition
         has been rated by each applicable Rating Agency in their respective
         highest applicable rating category or such lower rating as shall not
         result in a change in the rating then specified stated maturity and
         bearing interest or sold at a discount acceptable to each Rating Agency
         as shall not result in the downgrading or withdrawal of the ratings
         then assigned to the Certificates by the Rating Agencies; and

                  (x)      such other investments having a specified stated
         maturity and bearing interest or sold at a discount acceptable to the
         Rating Agencies as shall not result in the downgrading or withdrawal of
         the ratings then assigned to the Certificates by the Rating Agencies;

provided, that no such instrument shall be a Permitted Investment if (i) such
instrument evidences the right to receive interest only payments with respect to
the obligations underlying such instrument, (ii) such instrument would require
the Depositor to register as an investment company under the Investment Company
Act of 1940, as amended, or (iii) such instrument would not be a "permitted
investment" within the meaning of such term as provided for in Section
860G(a)(5) of the Code and the Treasury Regulations thereunder.

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

         Pool Companion Component: The Pool 1 Companion Component or Pool 2
Companion Component, as the context may require.

                                       36
<PAGE>

         Pool NAS Component. The Pool 1 NAS Component or Pool 2 NAS Component,
as the context may require.

         Pool Net WAC: The Pool 1 Net WAC, Pool 2 Net WAC, Pool 3 Net WAC or
Pool 4 Net WAC, as the context may require.

         Pool 1: The aggregate of Mortgage Loans identified on the Mortgage Loan
Schedule as being included in Pool 1.

         Pool 1 Adjusted Net WAC: For each Distribution Date, the interest rate
on the Class LT4A1 Interest.

         Pool 1 Companion Component: An interest-only Component represented by
the Class X-A-2 Certificates which has a notional amount on any Distribution
Date equal to the Pool 1 Companion Notional Principal Amount and bears interest
at a rate equal to the excess, if any, of the Pool 1 Adjusted Net WAC over the
Certificate Interest Rate on the Class A-1 Certificates.

         Pool 1 Companion Notional Principal Amount: For any Distribution Date,
the Certificate Principal Amount of the Class A-1 Certificates immediately prior
to such Distribution Date.

         Pool 1 Components: The Pool 1 Companion Component and the Pool 1 NAS
Component.

         Pool 1 Mortgage Loans: Any Mortgage Loan in Pool 1.

         Pool 1 NAS Component: An interest only Component represented by the
Class X-A-1 Certificates which has a notional amount equal to the Pool 1 NAS
Notional Principal Amount and, subject to the Current Interest Restriction,
bears interest at a rate equal on any Distribution Date to the lesser of (i)
1.00% or (ii) the Pool 1 Net WAC.

         Pool 1 NAS Notional Principal Amount: For each Distribution Date, the
lesser of (i) the outstanding Class Principal Amount of the Class A-1
Certificates immediately prior to such Distribution Date and (ii) the amount
specified below for such Distribution Date:

<TABLE>
<CAPTION>
                                                                   Notional Amount
                 Distribution Date                                   Schedule ($)
-----------------------------------------------------              ---------------
<S>                                                                <C>
December 2003........................................              389,000,000.00
January 2004.........................................              374,844,406.08
February 2004........................................              361,187,868.32
March 2004...........................................              348,012,885.53
April 2004...........................................              335,302,477.20
May 2004.............................................              323,040,261.57
June 2004............................................              311,210,434.51
July 2004............................................              299,797,749.21
August 2004..........................................              288,787,496.47
September 2004.......................................              278,165,485.77
October 2004.........................................              267,918,026.97
</TABLE>

                                       37
<PAGE>

<TABLE>
<CAPTION>
                                                                   Notional Amount
                 Distribution Date                                   Schedule ($)
-----------------------------------------------------              ---------------
<S>                                                                <C>
November 2004........................................              258,031,912.66
December 2004........................................              248,494,401.18
January 2005.........................................              239,293,200.13
February 2005........................................              230,416,450.59
March 2005...........................................              221,852,711.78
April 2005...........................................              213,590,946.36
May 2005.............................................              205,620,506.20
June 2005............................................              197,931,118.61
July 2005............................................              190,512,873.17
August 2005..........................................              183,356,208.89
September 2005.......................................              176,671,315.70
October 2005.........................................              170,226,012.77
November 2005........................................              164,011,783.51
December 2005........................................              158,020,412.82
January 2006.........................................              152,243,976.46
February 2006........................................              146,674,830.81
March 2006...........................................              141,305,602.87
April 2006...........................................              136,129,180.78
May 2006.............................................              131,138,704.54
June 2006............................................              126,327,557.13
July 2006............................................              121,689,355.94
August 2006..........................................              117,217,944.43
September 2006.......................................              112,907,384.21
October 2006.........................................              108,751,947.27
November 2006........................................              104,746,108.59
December 2006........................................              100,884,538.91
January 2007.........................................               97,327,164.32
February 2007........................................               93,895,229.38
March 2007...........................................               90,584,310.87
April 2007...........................................               87,390,141.52
May 2007.............................................               84,308,604.53
June 2007............................................               81,335,728.28
July 2007............................................               78,467,681.19
August 2007..........................................               75,700,766.79
September 2007.......................................               73,031,418.94
October 2007.........................................               70,456,197.28
November 2007........................................               67,971,782.74
December 2007 and thereafter.........................                        0.00
</TABLE>

         Pool 1 Net WAC: With respect to any Distribution Date, the weighted
average of the Net Mortgage Rates of the Pool 1 Mortgage Loans as of the first
day of the calendar month immediately preceding the calendar month of such
Distribution Date, weighted on the basis of their Stated Principal Balances.

                                       38
<PAGE>

         Pool 1 REMIC Companion Component: An uncertificated "interest-only"
regular interest in the Upper Tier REMIC that, on each Distribution Date, has a
notional principal amount equal to the Class Principal Amount of the Class A-1
Certificates immediately prior to such Distribution Date and bears interest at a
rate equal to the excess of the Pool 1 Adjusted Net WAC over the Certificate
Interest Rate on the Class A-1 Certificates on such Distribution Date. For
federal income tax purposes, the Pool 1 REMIC Companion Component is represented
by the Class X-A-2 Certificates.

         Pool 1 REMIC NAS Component: An uncertificated "interest-only" regular
interest in the Upper Tier REMIC that is entitled to 100% of the amounts payable
in respect of the REMIC 3 Pool 1 IO Interests. For federal income tax purposes,
the Pool 1 REMIC NAS Component is represented by the Class X-A-1 Certificates.

         Pool 1 Subordinate Amount: For any Distribution Date, the excess of (a)
the Aggregate Stated Principal Balances of the Pool 1 Mortgage Loans and over
(b) the sum of the Class Principal Amounts of the Class A-1 and Class A-R
Certificates immediately before such Distribution Date.

         Pool 2: The aggregate of Mortgage Loans identified on the Mortgage Loan
Schedule as being included in Pool 2.

         Pool 2 Adjusted Net WAC: For each Distribution Date, the interest rate
on the Class LT4A2 Interest.

         Pool 2 Companion Component: An interest-only Component represented by
the Class X-A-1 Certificates which has a notional amount on any Distribution
Date equal to the Pool 2 Companion Notional Principal Amount and bears interest
at a rate equal to the excess, if any, of the Pool 2 Adjusted Net WAC over the
Certificate Interest Rate on the Class A-2 Certificates.

         Pool 2 Companion Notional Principal Amount: For any Distribution Date,
the Certificate Principal Amount of the Class A-2 Certificates immediately prior
to such Distribution Date.

         Pool 2 Components: The Pool 2 Companion Component and the Pool 2 NAS
Component.

         Pool 2 Mortgage Loans: Any Mortgage Loan in Pool 2.

         Pool 2 NAS Component: An interest-only Component represented by the
Class X-A-1 Certificates which has a notional amount equal to the Pool 2 NAS
Notional Principal Amount and, subject to the Current Interest Restriction,
bears interest at a rate equal on any Distribution Date to the lesser of (i)
1.00% or (ii) the Pool 2 Net WAC.

         Pool 2 NAS Notional Principal Amount: For each Distribution Date, the
lesser of (i) the outstanding Class Principal Amount of the Class A-2
Certificates immediately prior to such Distribution Date and (ii) the amount
specified below for such Distribution Date:

                                       39
<PAGE>

<TABLE>
<CAPTION>
                                                                    Notional Amount
                Distribution Date                                     Schedule ($)
-----------------------------------------------------               ---------------
<S>                                                                 <C>
December 2003........................................               419,583,000.00
January 2004.........................................               404,314,393.80
February 2004........................................               389,584,187.13
March 2004...........................................               375,373,395.00
April 2004...........................................               361,663,701.89
May 2004.............................................               348,437,438.12
June 2004............................................               335,677,557.06
July 2004............................................               323,367,613.20
August 2004..........................................               311,491,740.91
September 2004.......................................               300,034,634.02
October 2004.........................................               288,981,526.07
November 2004........................................               278,318,171.31
December 2004........................................               268,030,826.32
January 2005.........................................               258,106,232.29
February 2005........................................               248,531,597.95
March 2005...........................................               239,294,583.07
April 2005...........................................               230,383,282.55
May 2005.............................................               221,786,211.10
June 2005............................................               213,492,288.41
July 2005............................................               205,490,824.90
August 2005..........................................               197,771,507.91
September 2005.......................................               190,561,052.38
October 2005.........................................               183,609,023.55
November 2005........................................               176,906,235.26
December 2005........................................               170,443,826.55
January 2006.........................................               164,213,250.20
February 2006........................................               158,206,261.60
March 2006...........................................               152,414,908.14
April 2006...........................................               146,831,518.81
May 2006.............................................               141,448,694.29
June 2006............................................               136,259,297.32
July 2006............................................               131,256,443.50
August 2006..........................................               126,433,492.26
September 2006.......................................               121,784,038.35
October 2006.........................................               117,301,903.42
November 2006........................................               112,981,128.06
December 2006........................................               108,815,964.07
January 2007.........................................               104,978,910.79
February 2007........................................               101,277,159.16
March 2007...........................................                97,705,938.20
April 2007...........................................                94,260,645.14
May 2007.............................................                90,936,839.54
June 2007............................................                87,730,237.52
July 2007............................................                84,636,706.26
</TABLE>

                                       40
<PAGE>

<TABLE>
<CAPTION>
                                                                    Notional Amount
                Distribution Date                                     Schedule ($)
-----------------------------------------------------               ---------------
<S>                                                                 <C>
August 2007..........................................                81,652,258.69
September 2007.......................................                78,773,048.30
October 2007.........................................                75,995,364.23
November 2007........................................                73,315,626.49
December 2007 and thereafter.........................                         0.00
</TABLE>

         Pool 2 Net WAC: With respect to any Distribution Date, the weighted
average of the Net Mortgage Rates of the Pool 2 Mortgage Loans as of the first
day of the calendar month immediately preceding the calendar month of such
Distribution Date, weighted on the basis of their Stated Principal Balances.

         Pool 2 REMIC Companion Component: An uncertificated "interest-only"
regular interest in the Upper Tier REMIC that, on each Distribution Date, has a
notional principal amount equal to the Class Principal Amount of the Class A-2
Certificates immediately prior to such Distribution Date and bears interest at a
rate equal to the excess of the Pool 2 Adjusted Net WAC over the Certificate
Interest Rate on the Class A-2 Certificates on such Distribution Date. For
federal income tax purposes, the Pool 2 REMIC Companion Component is represented
by the Class X-A-2 Certificates.

         Pool 2 REMIC NAS Component: An uncertificated "interest-only" regular
interest in the Upper Tier REMIC that is entitled to 100% of the amounts payable
in respect of the REMIC 3 Pool 2 IO Interests. For federal income tax purposes,
the Pool 2 REMIC NAS Component is represented by the Class X-A-1 Certificates.

         Pool 2 Subordinate Amount: For any Distribution Date, the excess of (a)
the Aggregate Stated Principal Balance of the Pool 2 Mortgage Loans over (b) the
Class Principal Amount of the Class A-2 Certificates immediately before such
Distribution Date.

         Pool 3: The aggregate of Mortgage Loans identified on the Mortgage Loan
Schedule as being included in Pool 3.

         Pool 3 Mortgage Loans: Any Mortgage Loan in Pool 3.

         Pool 3 Net WAC: With respect to any Distribution Date, the weighted
average of the Net Mortgage Rates of the Pool 3 Mortgage Loans as of the first
day of the calendar month immediately preceding the calendar month of such
Distribution Date, weighted on the basis of their Stated Principal Balances.

         Pool 3 Subordinate Amount: For any Distribution Date, the excess of (a)
the Aggregate Stated Principal Balance of the Pool 3 Mortgage Loans over (b) the
Class Principal Amount of the Class A-3 Certificates immediately before such
Distribution Date.

         Pool 4: The aggregate of Mortgage Loans identified on the Mortgage Loan
Schedule as being included in Pool 4.

         Pool 4 Mortgage Loans: Any Mortgage Loan in Pool 4.

                                       41
<PAGE>

         Pool 4 Net WAC: With respect to any Distribution Date, the weighted
average of the Net Mortgage Rates of the Pool 4 Mortgage Loans as of the first
day of the calendar month immediately preceding the calendar month of such
Distribution Date, weighted on the basis of their Stated Principal Balances.

         Pool 4 Subordinate Amount: For any Distribution Date, the excess of (a)
the Aggregate Stated Principal Balance of the Pool 4 Mortgage Loans over (b) the
sum of the Class Principal Amounts of the Class A-4A and Class A-4B Certificates
immediately before such Distribution Date.

         Pool Percentage: With respect to each Mortgage Pool and any
Distribution Date, a fraction, expressed as a percentage, the numerator of which
is the Aggregate Stated Principal Balance of such Mortgage Pool and the
denominator of which is the Aggregate Stated Principal Balance as of such Due
Date.

         Pool Subordinate Amount: Any of the Pool 1 Subordinate Amount, Pool 2
Subordinate Amount, the Pool 3 Subordinate Amount or the Pool 4 Subordinate
Amount.

         Prepayment Interest Shortfall: With respect to any full or partial
Principal Prepayment of a Mortgage Loan, the excess, if any, of (i) one full
month's interest at the applicable Mortgage Rate on the outstanding principal
balance of such Mortgage Loan immediately prior to such Principal Prepayment
over (ii) the amount of interest actually received with respect to such Mortgage
Loan in connection with such Principal Prepayment.

         Prepayment Period: With respect to each Distribution Date, the calendar
month immediately preceding the month in which the Distribution Date occurs.

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

         Principal Distribution Amount: With respect to any Mortgage Pool and
any Distribution Date, the sum of (a) each Scheduled Payment of principal
collected or advanced on the related Mortgage Loans (before taking into account
any Deficient Valuations or Debt Service Reductions) and due during the related
Due Period, (b) that portion of the Purchase Price representing principal of any
Mortgage Loans in such Mortgage Pool purchased in accordance with Section 2.04
hereof and received during the related Prepayment Period, (c) the principal
portion of any related Substitution Amount received during the related
Prepayment Period, (d) the principal portion of all Insurance Proceeds received
during the related Prepayment Period with respect to Mortgage Loans in such
Mortgage Pool that are not yet Liquidated Mortgage Loans, (e) the principal
portion of all Net Liquidation Proceeds received during the related Prepayment
Period with respect to Liquidated Mortgage Loans in such Mortgage Pool, (f) the
principal portion of the proceeds of any Additional Collateral with respect to
the Mortgage Loans in such Mortgage Pool, (g) the principal portion of all
partial and full principal prepayments of Mortgage Loans in such Mortgage Pool
applied by the Servicer during the related Prepayment Period and (h) on the
Distribution Date on which the Trust Fund is to be terminated pursuant to
Article X hereof, that portion of the Optional Termination Price in respect of
principal for such Mortgage Pool.

                                       42
<PAGE>

         Principal Prepayment: Any Mortgagor payment of principal or other
recovery of principal on a Mortgage Loan that is recognized as having been
received or recovered in advance of its scheduled Due Date and applied to reduce
the principal balance of the Mortgage Loan in accordance with the terms of the
Mortgage Note or the Servicing Agreement.

         Principal Prepayment In Full: Any Principal Prepayment of the entire
principal balance of the Mortgage Loans.

         Principal Transfer Amount: For any Distribution Date and for any
Undercollateralized Group, the excess, if any, of the aggregate Class Principal
Amount of such Undercollateralized Group immediately prior to such Distribution
Date over the Aggregate Stated Principal Balance of the related Mortgage Pool
immediately prior to such Distribution Date.

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

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

         Pro Rata Senior Percentage: With respect to each Distribution Date and
each Mortgage Pool, the percentage equivalent of a fraction the numerator of
which is the aggregate Class Principal Amount of the Class or Classes of the
Related Certificate Group immediately prior to such Distribution Date and the
denominator of which is the Aggregate Stated Principal Balance of the related
Mortgage Pool for such Distribution Date.

         Prospectus: The prospectus supplement dated December 10, 2003, together
with the accompanying prospectus dated July 3, 2003, relating to the initial
sale of the Class A-1, Class A-2, Class A-3, Class A-4A, Class A-4B, Class A-R,
Class X-A-1, Class X-A-2 and Class B-2 Certificates.

         Purchase Date: Any Distribution Date on which Certificates may be
repurchased pursuant to Section 7.01(c).

         Purchase Price: With respect to any Mortgage Loan required or permitted
to be purchased by the Depositor pursuant to this Agreement, by the Servicer
pursuant to the Servicing Agreement, or by the Seller pursuant to the Mortgage
Loan Purchase Agreement, an amount equal to the sum of (i) 100% of the unpaid
principal balance of the Mortgage Loan on the date of such purchase, (ii)
accrued interest thereon at the applicable Net Mortgage Rate from the date
through which interest was last paid by the Mortgagor to the Due Date in the
month in which the Purchase Price is to be distributed to Certificateholders and
(iii) any unreimbursed costs, penalties and/or damages incurred by the Trust
Fund in connection with any violation relating to such Mortgage Loan of any
predatory or abusive lending law.

         Rapid Prepayment Conditions: As to any Distribution Date either of the
following conditions: if (1) the Aggregate Subordinate Percentage on such date
is less than 200% of the Aggregate Subordinate Percentage on the Closing Date or
(2) the outstanding Stated Principal Balance of the Mortgage Loans in any
Mortgage Pool delinquent 60 days or months, as a percentage of such Mortgage
Pool's Pool Subordinate Amount, is greater than or equal to 50%.

                                       43
<PAGE>

         Rating Agency: Each of Moody's, S&P and Fitch Ratings.

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

         Record Date: As to any Distribution Date (i) with respect to the LIBOR
Certificates, the last Business Day preceding such Distribution Date (or the
Closing Date, in the case of the first Distribution Date) unless such
Certificates shall no longer be Book-Entry Certificates, in which case the
Record Date shall be the last Business Day of the month preceding the month of
such Distribution Date and (ii) in the case of all other Certificates (including
LIBOR Certificates that are subsequently reissued as Definitive Certificates),
the last Business Day of the month preceding the month of each Distribution
Date.

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

         Related Certificate Group: The Certificate Group related to a
particular Mortgage Pool as indicated by the same numerical designation (i.e.,
Group 1 Certificates are related to Pool 1, Group 2 Certificates are related to
Pool 2, Group 3 Certificates are related to Pool 3 and Group 4 Certificates are
related to Pool 4).

         Related Class of Upper Tier REMIC Interest: With respect to any Class
of Certificates, the interest in the Upper Tier REMIC appearing opposite such
Class in the Preliminary Statement hereto.

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

         REMIC: Each pool of assets in the Trust Fund designated as a REMIC as
described in the Preliminary Statement.

                                       44
<PAGE>

         REMIC Components: Each of the Pool 1 REMIC NAS Component, the Pool 2
REMIC NAS Component, the Pool 1 REMIC Companion Component, the Pool 2 REMIC
Companion Component and Component XB2.

         REMIC Interests: Any regular or residual interest in any of REMIC 1,
REMIC 2, REMIC 3, REMIC 4 or the Upper Tier REMIC, as described in the
Preliminary Statement.

         REMIC Provisions: The provisions of the federal income tax law relating
to real estate mortgage investment conduits, which appear at Sections 860A
through 860G of Subchapter M of Chapter 1 of the Code, and related provisions,
and regulations, including proposed regulations and rulings, and administrative
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.

         REMIC 1: As described in the Preliminary Statement.

         REMIC 1 Interest: Each class of interest in REMIC 1 as described in the
Preliminary Statement.

         REMIC 1 Regular Interest: Each of the REMIC 1 Interests other than the
Class LT1-R Interest.

         REMIC 1 Subordinated Balance Ratio: The ratio among the uncertificated
principal balances of each of the REMIC 1 Interests ending with the designation
"A" that is equal to the ratio among, with respect to each such REMIC 1
Interest, the excess of (x) the aggregate Scheduled Principal Balance of the
Mortgage Loans in the related Mortgage Pool over (y) the aggregate Class
Principal Amounts of the Certificates in the Certificate Group related to such
Mortgage Pool.

         REMIC 2:  As described in the Preliminary Statement.

         REMIC 2 Interest: Each class of interest in REMIC 2 as described in the
Preliminary Statement.

         REMIC 2 Regular Interest: Each of the REMIC 2 Interests other than the
Class LT2-R Interest.

         REMIC 3: As described in the Preliminary Statement.

         REMIC 3 Interest: Each class of interest in REMIC 3 as described in the
Preliminary Statement.

         REMIC 3 IO Interests: Each class of interest in REMIC 3 that has the
letters "IO" in its class designation.

         REMIC 3 Pool 1 IO Interests: Each of the Class LT31IO1 Interest, Class
LT31IO2 Interest, Class LT31IO3 Interest, Class LT31IO4 Interest, Class LT31IO5
Interest, Class LT31IO6 Interest, Class LT31IO7 Interest, Class LT31IO8
Interest, Class LT31IO9 Interest, Class LT31IO10 Interest, Class LT31IO11
Interest, Class LT31IO12 Interest, Class LT31IO13

                                       45
<PAGE>

Interest, Class LT31IO14 Interest, Class LT31IO15 Interest, Class LT31IO16
Interest, Class LT31IO17 Interest, Class LT31IO18 Interest, Class LT31IO19
Interest, Class LT31IO20 Interest, Class LT31IO21 Interest, Class LT31IO22
Interest, Class LT31IO23 Interest, Class LT31IO24 Interest, Class LT31IO25
Interest, Class LT31IO26 Interest, Class LT31IO27 Interest, Class LT31IO28
Interest, Class LT31IO29 Interest, Class LT31IO30 Interest, Class LT31IO31
Interest, Class LT31IO32 Interest, Class LT31IO33 Interest, Class LT31IO34
Interest, Class LT31IO35 Interest, Class LT31IO36 Interest, Class LT31IO37
Interest, Class LT31IO38 Interest, Class LT31IO39 Interest, Class LT31IO40
Interest, Class LT31IO41 Interest, Class LT31IO42 Interest, Class LT31IO43
Interest, Class LT31IO44 Interest, Class LT31IO45 Interest, Class LT31IO46
Interest, Class LT31IO47 Interest and Class LT31IO48 Interest.

         REMIC 3 Pool 2 IO Interests: Each of the Class LT32IO1 Interest, Class
LT32IO2 Interest, Class LT32IO3 Interest, Class LT32IO4 Interest, Class LT32IO5
Interest, Class LT32IO6 Interest, Class LT32IO7 Interest, Class LT32IO8
Interest, Class LT32IO9 Interest, Class LT32IO10 Interest, Class LT32IO11
Interest, Class LT32IO12 Interest, Class LT32IO13 Interest, Class LT32IO14
Interest, Class LT32IO15 Interest, Class LT32IO16 Interest, Class LT32IO17
Interest, Class LT32IO18 Interest, Class LT32IO19 Interest, Class LT32IO20
Interest, Class LT32IO21 Interest, Class LT32IO22 Interest, Class LT32IO23
Interest, Class LT32IO24 Interest, Class LT32IO25 Interest, Class LT32IO26
Interest, Class LT32IO27 Interest, Class LT32IO28 Interest, Class LT32IO29
Interest, Class LT32IO30 Interest, Class LT32IO31 Interest, Class LT32IO32
Interest, Class LT32IO33 Interest, Class LT32IO34 Interest, Class LT32IO35
Interest, Class LT32IO36 Interest, Class LT32IO37 Interest, Class LT32IO38
Interest, Class LT32IO39 Interest, Class LT32IO40 Interest, Class LT32IO41
Interest, Class LT32IO42 Interest, Class LT32IO43 Interest, Class LT32IO44
Interest, Class LT32IO45 Interest, Class LT32IO46 Interest, Class LT32IO47
Interest and Class LT32IO48 Interest.

         REMIC 3 Regular Interest: Each of the REMIC 3 Interests other than the
Class LT3-R Interest.

         REMIC 4: As described in the Preliminary Statement.

         REMIC 4 Interest: Each class of interest in REMIC 4 as described in the
Preliminary Statement.

         REMIC 4 Regular Interest: Each of the REMIC 4 Interests other than the
Class LT4-R Interest.

         REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan or otherwise treated as having been acquired pursuant to the REMIC
Provisions.

         Replacement Mortgage Loan: A mortgage loan substituted by the Seller
for a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for Release substantially in the form attached to the
Trust Agreement, (i) have a Stated Principal Balance, after deduction of the
principal portion of the Scheduled Payment due in the month of

                                       46
<PAGE>

substitution, not in excess of, and not more than 10% less than, the Stated
Principal Balance of the Deleted Mortgage Loan; (ii) have a Maximum Rate not
less than (and not more than two percentage points greater than) the Maximum
Rate of the Deleted Mortgage Loan; (iii) have a gross margin not less than that
of the Deleted Mortgage Loan and, if Mortgage Loans equal to 1% or more of the
balance of the related Mortgage Pool as of the Cut-off Date have become Deleted
Mortgage Loans, not more than two percentage points more than that of the
Deleted Mortgage Loan; (iv) have an Effective Loan-to-Value Ratio no higher than
that of the Deleted Mortgage Loan; (v) have Adjustment Dates that are no more or
less frequent than the Deleted Mortgage Loan; (vi) have a remaining term to
maturity no greater than (and not more than one year less than that of) the
Deleted Mortgage Loan; (vii) not permit conversion of the related Mortgage Rate
to a permanent fixed Mortgage Rate; (viii) not be a Cooperative Loan unless the
Deleted Mortgage Loan was a Cooperative Loan; (ix) have the same or better FICO
credit score; (x) have an initial interest adjustment date no earlier than five
months before (and no later than five months after) the initial adjustment date
of the Deleted Mortgage Loan, (xi) comply with each representation and warranty
set forth in Schedule B of this Agreement; and (xii) shall be accompanied by an
Opinion of Counsel that such Replacement Mortgage Loan would not adversely
affect the REMIC status of the Trust Estate or would not otherwise be prohibited
by this Indenture.

         Request for Release: A request for release, substantially in the form
of Exhibit N attached hereto, properly completed and signed by a Servicing
Officer (or, if delivered on behalf of the Seller or Depositor, an Authorized
Officer thereof).

         Residual Certificate: The Class A-R Certificate.

         Residual Interest: The Residual Certificate, other than the portion
thereof representing the right to payments in respect of the Class LT1-R
Interest, the Class LT2-R Interest, the Class LT3-R Interest and the Class LT4-R
Interest.

         Responsible Officer: With respect to the Trustee, any officer in the
corporate trust department or similar group of the Trustee with direct
responsibility for the administration of this Agreement and also, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

         Restricted Certificate: Any Class B-4, Class B-5 or Class B-6
Certificate.

         Restricted Global Security: As defined in Section 3.01(c).

         S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
or any successor in interest.

         SAIF: The Saving's Association Insurance Fund, or any successor
thereto.

         Schedule of Exceptions: As defined in Section 2.02(a) of the Trust
Agreement.

         Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due
on any Due Date allocable to principal and/or interest on such Mortgage Loan
which, unless otherwise

                                       47
<PAGE>

specified in the Servicing Agreement, shall give effect to any related Debt
Service Reduction and any Deficient Valuation that affects the amount of the
monthly payment due on such Mortgage Loan.

         Seller: RWT Holdings, Inc., a Delaware corporation.

         Senior Certificate: Any one of the Class A-1, Class A-2, Class A-3,
Class A-4A, Class A-4B, Class X-A-1, Class X-A-2, Class X-B or Class A-R
Certificates.

         Senior Percentage: Except as provided in this definition, for each
Mortgage Pool with respect to any Distribution Date before December 2013, 100%.
The Senior Percentage for each Mortgage Pool for any Distribution Date occurring
(i) before the Distribution Date in December 2013 but in or after December 2006
on which the Two Times Test is satisfied, or (ii) in or after December 2013, is
the related Pro Rata Senior Percentage. If the Two Times Test is satisfied with
respect to any Distribution Date prior to the Distribution Date in December
2006, the Senior Percentage for such Mortgage Pool is the Pro Rata Senior
Percentage plus 50% of an amount equal to 100% minus the related Pro Rata Senior
Percentage. With respect to any Distribution Date after the Senior Termination
Date, the Senior Percentage for such Mortgage Pool will equal zero. If on any
Distribution Date the allocation to the Senior Certificates of the related
Certificate Group then entitled to distributions of principal of full and
partial principal prepayments and other amounts in the percentage required above
would reduce the sum of the Class Principal Amounts of those Certificates to
below zero, the Senior Percentage for such Distribution Date shall be limited to
the percentage necessary to reduce such Class Principal Amounts to zero.

         Senior Prepayment Percentage: With respect to any Distribution Date,
during the ten years beginning on the first Distribution Date, 100%. Except as
provided herein, the related Senior Prepayment Percentage for each Mortgage Pool
and any Distribution Date occurring on or after the tenth anniversary of the
first Distribution Date shall be as follows: (i) from December 2013 through
November 2014, the Senior Percentage plus 70% of the Subordinate Percentage for
that Distribution Date; (ii) from December 2014 through November 2015, the
Senior Percentage plus 60% of the Subordinate Percentage for that Distribution
Date; (iii) from December 2015 through November 2016, the Senior Percentage plus
40% of the Subordinate Percentage for that Distribution Date; (iv) from December
2016 through November 2017, the related Senior Percentage plus 20% of the
Subordinate Percentage for that Distribution Date; and (v) from and after
November 2017, the Senior Percentage for that Distribution Date; provided,
however, that there shall be no reduction in the Senior Prepayment Percentage
for a Mortgage Pool unless both Step Down Conditions are satisfied; and
provided, further, that if on any such Distribution Date the Pro Rata Senior
Percentage exceeds the initial Pro Rata Senior Percentage, the Senior Prepayment
Percentage for a Mortgage Pool for that Distribution Date shall again equal
100%.

         Notwithstanding the above, if on any Distribution Date the Two Times
Test is satisfied, the Senior Prepayment Percentage for a Mortgage Pool shall
equal the related Senior Percentage for such Distribution Date. In addition, if
on any Distribution Date the allocation to the Senior Certificates of the
related Certificate Group then entitled to distributions of principal of full
and partial principal prepayments and other amounts in the percentage required
above would reduce

                                       48
<PAGE>

the sum of the Class Principal Amounts of those Certificates to below zero, the
Senior Prepayment Percentage for a Mortgage Pool for such Distribution Date
shall be limited to the percentage necessary to reduce the related Class
Principal Amounts to zero.

         Senior Principal Distribution Amount: With respect to any Mortgage Pool
and Distribution Date, the sum of:

             (1)     the related Senior Percentage of all amounts described in
clauses (a) through (d) of the definition of "Principal Distribution Amount" for
that Distribution Date;

             (2)     with respect to each Mortgage Loan in the related Mortgage
Pool which became a Liquidated Mortgage Loan during the related Prepayment
Period, the lesser of

                  (x)      the related Senior Percentage of the Stated Principal
Balance of that Mortgage Loan and

                  (y)      the related Senior Prepayment Percentage of the
amount of the Net Liquidation Proceeds allocable to principal received with
respect to that Mortgage Loan; and

             (3)     the related Senior Prepayment Percentage of the
amounts described in clause (g) of the definition of "Principal Distribution
Amount".

         Senior Termination Date: For each Certificate Group, the Distribution
Date when the aggregate of the Class Certificate Principal Balances of that
Group has been reduced to zero.

         Servicer: Cendant and its successors and assigns.

         Servicer Advance: A "Servicing Advance" as defined in the Servicing
Agreement.

         Servicing Agreement: The Portfolio Servicing Agreement, dated as of
January 28, 2000, between the Seller and Cendant, as amended by Amendment
Agreement No. 1, dated as of January 2, 2001 and by the Reconstituted Servicing
Agreement, dated as of November 1, 2003, copies of which are attached hereto as
Exhibit D.

         Servicing Fee: As to any Distribution Date and each Mortgage Loan, an
amount equal to the product of (a) one-twelfth of the Servicing Fee Rate and (b)
the outstanding principal balance of such Mortgage Loan as of the first day of
the related Due Period.

         Servicing Fee Rate: With respect to each Mortgage Loan and any
Distribution Date, 0.25% per annum.

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

                                       49
<PAGE>

         Servicing Transfer Costs: As defined in Section 6.14(b).

         Six-Month LIBOR Loan: Each Mortgage Loan bearing a Mortgage Rate that
adjusts in accordance with LIBOR for six-month U.S. dollar deposits.

         Startup Day: The day designated as such pursuant to Section 10.01(b)
hereof.

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

         Step Down Conditions: As of the first Distribution Date as to which any
decrease in any Senior Prepayment Percentage applies, (i) the outstanding Stated
Principal Balance of all Mortgage Loans 60 days or more Delinquent (including
Mortgage Loans in bankruptcy, REO and foreclosure) (averaged over the preceding
six month period), as a percentage of the aggregate of the Class Principal
Amounts of the Classes of Subordinate Certificates on such Distribution Date,
does not equal or exceed 50% and (ii) cumulative Realized Losses with respect to
the Mortgage Loans do not exceed (a) with respect to each Distribution Date from
December 2013 through November 2014, 30% of the Original Subordinate Principal
Amount, (b) with respect to each Distribution Date from December 2014 through
November 2015, 35% of the Original Subordinate Principal Amount, (c) with
respect to each Distribution Date from December 2015 through November 2016, 40%
of the Original Subordinate Principal Amount, (d) with respect to each
Distribution Date from December 2016 through November 2017, 45% of the Original
Subordinate Principal Amount and (e) with respect to each Distribution Date from
and after November 2017, 50% of the Original Subordinate Principal Amount.

         Subordinate Certificate: Any of the Class B-1, Class B-2, Class B-3,
Class B-4, Class B-5 or Class B-6 Certificates.

         Subordinate Certificate Writedown Amount: The amount described in
Section 5.03(b)(iii).

         Subordinate Class Percentage: As to any Distribution Date and any Class
of Subordinate Certificates, a fraction, expressed as a percentage, the
numerator of which is the Class Principal Amount of such Class on such date, and
the denominator of which is the aggregate Class Principal Amount of all Classes
of Subordinate Certificates on such date.

         Subordinate Net WAC: For any Distribution Date, the weighted average of
the Pool 1 Net WAC, the Pool 2 Net WAC, the Pool 3 Net WAC, the Pool 4 Net WAC,
in each case weighted on the basis of the Pool Subordinate Amounts for Pool 1,
Pool 2, Pool 3 and Pool 4, respectively, immediately prior to such Distribution
Date.

                                       50
<PAGE>

         Subordinate Percentage: With respect to each Mortgage Pool and any
Distribution Date, the difference between 100% and the related Senior Percentage
for such Mortgage Pool for such Distribution Date.

         Subordinate Prepayment Percentage: With respect to any Distribution
Date and for any Mortgage Pool, the difference between 100% and the related
Senior Prepayment Percentage for such Mortgage Pool for that Distribution Date.

         Subordinate Principal Distribution Amount: With respect to any
Distribution Date and each Mortgage Pool, an amount equal to the sum of:

                           (1)      the related Subordinate Percentage of all
                  amounts described in clauses (a) through (d) of the definition
                  of "Principal Distribution Amount" for that Distribution Date;

                           (2)      with respect to each Mortgage Loan in the
                  related Mortgage Pool that became a Liquidated Mortgage Loan
                  during the related Prepayment Period the amount of the Net
                  Liquidation Proceeds allocated to principal received with
                  respect thereto remaining after application thereof pursuant
                  to clause (2) of the definition of "Senior Principal
                  Distribution Amount" for that Distribution Date, up to the
                  Subordinate Percentage of the Stated Principal Balance of such
                  Mortgage Loan; and

                           (3)      the related Subordinate Prepayment
                  Percentage of all amounts described in clause (g) of the
                  definition of "Principal Distribution Amount" for that
                  Mortgage Pool and that Distribution Date;

                           minus the sum of:

                           any Principal Transfer Amount paid from the Available
                  Distribution Amount of the Related Certificate Group to an
                  Undercollateralized Group; and

                           the amount of principal distributions made to the
                  Senior Certificates pursuant to Section 5.02(h);

         Substitution Amount: As defined in the second paragraph of Section
2.04(b).

         Tax Matters Person: The "tax matters person" as specified in the REMIC
Provisions which shall initially be the Holder of the Class A-R Certificate.

         Telerate Page 3750: The display currently so designated as "Page 3750"
on the Bridge Telerate Service (or such other page selected by the Trustee as
may replace Page 3750 on that service for the purpose of displaying daily
comparable rates on prices).

         Trust Fund: The corpus of the trust created pursuant to this Agreement,
consisting of (i) the Mortgage Loans, including the right to all payments of
principal and interest received on or with respect to the Mortgage Loans on and
after the Cut-off Date (other than Scheduled Payments due on or before such
date), and all such payments due after such date but received

                                       51
<PAGE>

prior to such date and intended by the related Mortgagors to be applied after
such date; (ii) all of the Depositor's right, title and interest in and to all
amounts from time to time credited to and the proceeds of the Distribution
Account, any Custodial Accounts or any Escrow Accounts established with respect
to the Mortgage Loans; (iii) all of the Depositor's rights under the Servicing
Agreement, the Mortgage Loan Purchase and Sale Agreement and the Mortgage Loan
Purchase Agreement; (iv) all of the Depositor's right, title or interest in REO
Property and the proceeds thereof; (v) all of the Depositor's rights under any
Insurance Policies relating to the Mortgage Loans; (vi) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or other
liquid assets, including without limitation, all Insurance Proceeds, Liquidation
Proceeds and condemnation awards; and (vii) the Depositor's security interest in
any collateral pledged to secure the Mortgage Loans, including the Mortgaged
Properties and any Additional Collateral relating to the Additional Collateral
Mortgage Loans, including, but not limited to, any pledge, control and guaranty
agreements and the Limited Purpose Surety Bond and any proceeds of the
foregoing.

         Trustee: Wells Fargo Bank Minnesota, National Association and any
Person succeeding the Trustee hereunder, or if any separate trustee or any
co-trustee shall be appointed as herein provided, then such separate trustee and
such co-trustee, as the case may be.

         Trustee Mortgage Files: With respect to each Mortgage Loan, the
Mortgage Documents to be retained in the custody and possession of the Trustee.

         Two Times Test: As to any Distribution Date, (i) the Aggregate
Subordinate Percentage is at least two times the Aggregate Subordinate
Percentage as of the Closing Date; (ii) the aggregate of the Stated Principal
Balances of all Mortgage Loans Delinquent 60 days or more (including Mortgage
Loans in bankruptcy, REO and foreclosure) (averaged over the preceding six-month
period), as a percentage of the aggregate of the Class Principal Amount of the
Subordinate Certificates on such Distribution Date, does not equal or exceed
50%; and (iii) cumulative Realized Losses with respect to the Mortgage Loans do
not exceed 20% of the Original Subordinate Principal Amount.

         UCC: The Uniform Commercial Code as enacted in the relevant
jurisdiction.

         Undercollateralized Group: With respect to any Distribution Date, and
any Certificate Group, the aggregate Class Principal Amount of such Certificate
Group is greater than the aggregate Stated Principal Balance of the Mortgage
Loans in the related Mortgage Pool immediately prior to such Distribution Date.

         Underwriters: Merrill Lynch, Pierce, Fenner & Smith Incorporated, Bank
of America Securities LLC and Countrywide Securities Corporation.

         Underwriter's Exemption: Prohibited Transaction Exemption ("PTE") 90-29
(Exemption Application No. D-8019, 55 Fed. Reg. 21459 (1990)) as amended, or any
substantially similar administrative exemption granted by the U.S. Department of
Labor to an Underwriter.

         Underwriting Agreement: The underwriting agreement, dated February 28,
2003 and the terms agreement, dated December 5, 2003, each between the Depositor
and the Underwriters, referred to collectively.

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<PAGE>

         Uniform Commercial Code: The Uniform Commercial Code as in effect in
any applicable jurisdiction from time to time.

         Unpaid Basis Risk Shortfall: With respect to any Distribution Date and
any Class of LIBOR Certificates, the aggregate of all Basis Risk Shortfalls with
respect to such Certificate remaining unpaid from previous Distribution Dates,
plus interest accrued thereon at the applicable Certificate Interest Rate
determined without regard to clause (ii) of the definition therefor to the
extent not paid on prior Distribution Dates.

         Upper Tier REMIC: As described in the Preliminary Statement.

         Upper Tier REMIC Class A-1 Interest: An uncertificated interest in the
Upper Tier REMIC having the same characteristics as the Class A-1 Certificates,
but without the right to receive payments in respect of Basis Risk Shortfalls
and Unpaid Basis Risk Shortfalls and with an interest rate cap equal to the Pool
1 Adjusted Net WAC.

         Upper Tier REMIC Class A-2 Interest: An uncertificated interest in the
Upper Tier REMIC having the same characteristics as the Class A-2 Certificates,
but without the right to receive payments in respect of Basis Risk Shortfalls
and Unpaid Basis Risk Shortfalls and with an interest rate cap equal to the Pool
2 Adjusted Net WAC.

         Upper Tier REMIC Class B-2 Interest: An uncertificated interest in the
Upper Tier REMIC having the same characteristics as the Class B-2 Certificates,
but without the right to receive payments in respect of Basis Risk Shortfalls
and Unpaid Basis Risk Shortfalls.

         Upper Tier REMIC Regular Interest: Each of the REMIC Components, the
Upper Tier REMIC Class A-1 Interest, the Upper Tier REMIC Class A-2 Interest,
the Upper-Tier Class B-2 Interest, the Class A-3 Certificates, the Class A-4
Certificates, the Class A-4B Certificates, the Class B-1 Certificates, the Class
B-3 Certificates, Class B-4 Certificates, the Class B-5 Certificates and the
Class B-6 Certificates.

         Voting Interests: The portion of the voting rights of all the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement,
97.00% of all Voting Interests shall be allocated to the Class A-1, Class A-2,
Class A-3, Class A-4A, Class A-4B, Class A-R, Class B-1, Class B-2, Class B-3,
Class B-4, Class B-5 and Class B-6 Certificates. Voting Interests shall be
allocated among such Certificates (other than the Class A-R Certificates) based
on the product of (i) 97.00% and (ii) the fraction, expressed as a percentage,
the numerator of which is the aggregate Class Principal Amounts for each Class
then outstanding and the denominator of which is the Aggregate Stated Principal
Balance outstanding, and the remainder of such percentage of Voting Interests
shall be allocated to the Class A-R Certificates. At all times during the term
of this Agreement, 3.00% of all Voting Interests shall be allocated among the
Class X-A-1, Class X-A-2, and Class X-B Certificates, while they remain
outstanding, in proportion to their relative Class Notional Amounts. Voting
Interests shall be allocated among the Certificates within each such Class in
proportion to their Certificate Principal Amounts or Percentage Interests.

         Section 1.02 Calculations Respecting Mortgage Loans.

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<PAGE>

         Calculations required to be made pursuant to this Agreement with
respect to any Mortgage Loan in the Trust Fund shall be made based upon current
information as to the terms of the Mortgage Loans and reports of payments
received from the Mortgagor on such Mortgage Loans and payments to be made to
the Trustee as provided by the Servicer. The Trustee shall not be required to
recompute, verify or recalculate the information supplied to it by the Servicer.

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<PAGE>

                                   ARTICLE II

                              DECLARATION OF TRUST;
                            ISSUANCE OF CERTIFICATES

         Section 2.01 Creation and Declaration of Trust Fund; Conveyance of
Mortgage Loans.

         (a) Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby establish the Trust Fund and transfer, assign, set over,
deposit with and otherwise convey to the Trustee, without recourse, subject to
Sections 2.02 and 2.04, in trust, all the right, title and interest of the
Depositor in and to the Trust Fund. Such conveyance includes, without
limitation, (i) the Mortgage Loans, including the right to all payments of
principal and interest received on or with respect to the Mortgage Loans on and
after the Cut-off Date (other than Scheduled Payments due on or before such
date), and all such payments due after such date but received prior to such date
and intended by the related Mortgagors to be applied after such date; (ii) all
of the Depositor's right, title and interest in and to all amounts from time to
time credited to and the proceeds of the Distribution Account, any Custodial
Accounts or any Escrow Account established with respect to the Mortgage Loans;
(iii) all of the Depositor's rights under the Servicing Agreement and the
Mortgage Loan Purchase and Sale Agreement; (iv) all of the Depositor's right,
title or interest in REO Property and the proceeds thereof; (v) all of the
Depositor's rights under any Insurance Policies relating to the Mortgage Loans;
(vi) all proceeds of the conversion, voluntary or involuntary, of any of the
foregoing into cash or other liquid assets, including, without limitation, all
Insurance Proceeds, Liquidation Proceeds and condemnation awards; and (vii) the
Depositor's security interest in any collateral pledged to secure the Mortgage
Loans, including the Mortgaged Properties and any Additional Collateral relating
to the Additional Collateral Mortgage Loans, including, but not limited to, any
pledge, control and guaranty agreements and the Limited Purpose Surety Bond and
any proceeds of the foregoing, to have and to hold, in trust; and the Trustee
declares that, subject to the review provided for in Section 2.02, it has
received and shall hold the Trust Fund, as trustee, in trust, for the benefit
and use of the Holders of the Certificates and for the purposes and subject to
the terms and conditions set forth in this Agreement, and, concurrently with
such receipt, has caused to be executed, authenticated and delivered to or upon
the order of the Depositor, in exchange for the Trust Fund, Certificates in the
authorized denominations evidencing the entire ownership of the Trust Fund.
Notwithstanding anything to the contrary in this Agreement, the Trust Fund shall
not obtain title to or beneficial ownership of any Additional Collateral as a
result of or in lieu of the disposition thereof or otherwise.

         The foregoing sale, transfer, assignment, set-over, deposit and
conveyance does not and is not intended to result in the creation or assumption
by the Trustee of any obligation of the Depositor, the Seller or any other
Person in connection with the Mortgage Loans or any other agreement or
instrument relating thereto except as specifically set forth therein.

         In connection with such transfer and assignment of the Mortgage Loans,
the Depositor shall deliver to, and deposit with, or cause to be delivered to
and deposited with, the Trustee, the documents or instruments described in
Section 2 of the Custody Agreement with respect to each Mortgage Loan; provided
that in Section 2a thereof, a lost note affidavit (including a copy of the

                                       55
<PAGE>

original Mortgage Note) may be delivered in lieu of the original Mortgage Note
(each a "Trustee Mortgage File") (the Custody Agreement to be deemed modified by
the foregoing) so transferred and assigned.

         (b) The Depositor shall cause the Mortgage Notes with respect to each
Mortgage Loan to be completed either (A) in blank, without recourse, or (B)
endorsed to "Wells Fargo Bank Minnesota, National Association, as Trustee of the
Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G, Mortgage Pass-Through
Certificates, without recourse" and the Depositor shall cause Assignments of
Mortgage with respect to each Mortgage Loan other than a Cooperative Mortgage
Loan to be completed either (A) in blank or (B) to "Wells Fargo Bank Minnesota,
National Association, as Trustee of the Merrill Lynch Mortgage Investors Trust
Series MLCC 2003-G, Mortgage Pass-Through Certificates," within 30 days of the
Closing Date for purpose of their recording; provided, however, that such
Assignments of Mortgage need not be recorded unless required in writing by the
Rating Agencies; provided, further, that with respect to each MERS Mortgage Loan
where MERS is not the Mortgagee of record, the original Assignment of Mortgage
showing MERS as the assignee of the Mortgage, with the evidence of recording
thereon or copies thereof certified by an officer of the Depositor to have been
submitted for recordation, shall be delivered to the Trustee.

         If any Mortgage has been recorded in the name of MERS or its designee,
no Assignment of Mortgage in favor of the Trustee will be required to be
prepared or delivered and instead, the Servicer shall take all actions as are
necessary to cause the Trustee to be shown as the owner of the related Mortgage
Loan on the records of MERS for the purpose of the system of recording transfer
of beneficial ownership of mortgages maintained by MERS.

         (c) In instances where a title insurance policy is required to be
delivered to the Trustee and is not so delivered, the Depositor will provide a
copy of such title insurance policy to the Trustee, as promptly as practicable
after the execution and delivery hereof, but in any case within 270 days of the
Closing Date.

         (d) For Mortgage Loans (if any) that have been prepaid in full after
the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of
delivering the above Trustee Mortgage File, shall deliver to the Trustee an
Officer's Certificate which shall include a statement to the effect that all
amounts received in connection with such prepayment that are required to be
deposited in the Distribution Account pursuant to Section 4.01 have been so
deposited. All original documents that are not delivered to the Trustee shall be
held by the Servicer in trust for the benefit of the Trustee and the
Certificateholders.

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<PAGE>

         Section 2.02 Acceptance of Trust Fund by Trustee; Review of
Documentation for Trust Fund.

         (a) The Trustee, by execution and delivery hereof, acknowledges receipt
by it of the Trustee Mortgage Files pertaining to the Mortgage Loans listed on
the Mortgage Loan Schedule, subject to review thereof as provided herein. Upon
receipt by the Trustee of each Trustee Mortgage File, the Trustee shall review
each Trustee Mortgage File in accordance with the review procedures set forth in
Section 2 of Amendment No. 1 to the Custody Agreement.

         In making such verifications, the Trustee may rely conclusively on the
Mortgage Loan Schedule and the documents constituting the Trustee Mortgage File,
and the Trustee shall have no obligation to independently verify the validity,
enforceability, recordability, sufficiency, due authorization or genuineness of
any document in any Trustee Mortgage File or any Mortgage Loan hereunder, nor
the collectibility, insurability, effectiveness or suitability of any Mortgage
Loan hereunder. The Trustee shall prepare an initial certification to be
delivered to the Depositor, the Seller and the Servicer on the Closing Date in
the form annexed hereto as Exhibit K (the "Initial Certification") with respect
to the Mortgage Loans (other than any Mortgage Loan paid in full or any Mortgage
Loan specifically identified on the Schedule of Exceptions attached to the
Initial Certification (the "Schedule of Exceptions") as not covered by such
Initial Certification) listed on the Mortgage Loan Schedule. If the Trustee
determines from such verification that any discrepancy or deficiency exists with
respect to a Trustee Mortgage File, the Trustee shall note such omission,
discrepancy or deficiency on the Schedule of Exceptions attached to the Initial
Certification, and shall deliver a copy (which shall be electronic, if
requested) of the Schedule of Exceptions to the Depositor on the Closing Date.
During the life of the Mortgage Loans (while subject to this Agreement), in the
event the Trustee discovers any defect with respect to any Trustee Mortgage
File, the Trustee shall give written specification of such defect to the
Depositor. Except as specifically provided above, the Trustee shall be under no
duty to review, inspect or examine such documents to determine that any of them
are enforceable or appropriate for their prescribed purpose.

         (b) If in the course of the review described in paragraph (a) of this
Section 2.02 the Trustee discovers any document or documents constituting a part
of a Trustee Mortgage File that is missing, does not appear regular on its face
(i.e., is mutilated, damaged, defaced, torn or otherwise physically altered) or
appears to be unrelated to the Mortgage Loans identified in the Mortgage Loan
Schedule (each, a "Material Defect"), the Trustee, upon discovering such
Material Defect shall promptly identify the Mortgage Loan to which such Material
Defect relates to the Depositor, the Seller and the Servicer. Within 90 days of
its receipt of such notice (but in no case prior to the 270th day following the
Closing Date), the Depositor shall be required to cure such Material Defect
(and, in such event, the Depositor shall provide the Trustee with an Officer's
Certificate confirming that such cure has been effected). If the Servicer
notifies the Depositor and the Trustee in writing that (i) a loss has occurred
and (ii) such loss relates to a Mortgage Loan for which the Trustee previously
identified a Material Defect or for which the Servicer has identified a Material
Defect and the Depositor has not cured such Material Defect, then the Depositor
shall repurchase such Mortgage Loan at the Purchase Price therefore in the event
that such loss would, if such Mortgage Loan is not repurchased by the Depositor,
constitute a Realized Loss and such loss is attributable to the failure of the
Depositor to have cured such Material Defect. A loss shall be deemed to be
attributable to the failure of the

                                       57
<PAGE>

Depositor to cure a Material Defect if, as determined by the Depositor, upon
mutual agreement with the Trustee each acting in good faith, absent such
Material Defect, such loss would not have been incurred. Within the two-year
period following the Closing Date, the Depositor may, in lieu of repurchasing a
Mortgage Loan pursuant to this Section 2.02(b), substitute for such Mortgage
Loan a Replacement Mortgage Loan subject to the provisions of Section 2.04.

         (c) Within 270 days following the Closing Date, the Trustee shall
deliver to the Depositor, the Seller and the Servicer, a final certification
substantially in the form attached as Exhibit L (the "Final Certification")
evidencing the completeness of the Trustee Mortgage Files in its possession or
control, with any exceptions noted on the Scheduled of Exceptions attached to
the Final Certification.

         (d) Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Fund, the Trustee or the Certificateholders of any
unsatisfied duty, claim or other liability on any Mortgage Loan or to any
Mortgagor.

         (e) Upon execution of this Agreement, the Depositor hereby delivers to
the Trustee and the Trustee acknowledges receipt of the Servicing Agreement and
the Mortgage Loan Purchase and Sale Agreement.

         Section 2.03 Representations and Warranties of the Depositor.

         The Depositor hereby represents and warrants to the Trustee, for the
benefit of the Certificateholders as of the Closing Date or such other date as
is specified, that:

                  (i)      the Depositor is a corporation duly organized,
         validly existing and in good standing under the laws governing its
         creation and existence and has full corporate power and authority to
         own its property, to carry on its business as presently conducted, to
         enter into and perform its obligations under this Agreement, and to
         create the trust pursuant hereto;

                  (ii)     the execution and delivery by the Depositor of this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Depositor; neither the execution and delivery of
         this Agreement, nor the consummation of the transactions herein
         contemplated, nor compliance with the provisions hereof, will conflict
         with or result in a breach of, or constitute a default under, any of
         the provisions of any law, governmental rule, regulation, judgment,
         decree or order binding on the Depositor or its properties or the
         certificate of incorporation or bylaws of the Depositor;

                  (iii)    the execution, delivery and performance by the
         Depositor of this Agreement and the consummation of the transactions
         contemplated hereby do not require the consent or approval of, the
         giving of notice to, the registration with, or the taking of any other
         action in respect of, any state, federal or other governmental
         authority or agency, except such as has been obtained, given, effected
         or taken prior to the date hereof;

                  (iv)     this Agreement has been duly executed and delivered
         by the Depositor and, assuming due authorization, execution and
         delivery by the Trustee, constitutes a

                                       58
<PAGE>

         valid and binding obligation of the Depositor enforceable against it in
         accordance with its terms except as such enforceability may be subject
         to (A) applicable bankruptcy and insolvency laws and other similar laws
         affecting the enforcement of the rights of creditors generally and (B)
         general principles of equity regardless of whether such enforcement is
         considered in a proceeding in equity or at law;

                  (v)      there are no actions, suits or proceedings pending
         or, to the knowledge of the Depositor, threatened or likely to be
         asserted against or affecting the Depositor, before or by any court,
         administrative agency, arbitrator or governmental body (A) with respect
         to any of the transactions contemplated by this Agreement or (B) with
         respect to any other matter which in the judgment of the Depositor will
         be determined adversely to the Depositor and will if determined
         adversely to the Depositor materially and adversely affect it or its
         business, assets, operations or condition, financial or otherwise, or
         adversely affect its ability to perform its obligations under this
         Agreement;

                  (vi)     immediately prior to the transfer and assignment of
         the Mortgage Loans to the Trustee, the Depositor was the sole owner of
         record and holder of each Mortgage Loan, and the Depositor had good and
         marketable title thereto, and had full right to transfer and sell each
         Mortgage Loan to the Trustee free and clear, subject only to (1) liens
         of current real property taxes and assessments not yet due and payable
         and, if the related Mortgaged Property is a condominium unit, any lien
         for common charges permitted by statute, (2) covenants, conditions and
         restrictions, rights of way, easements and other matters of public
         record as of the date of recording of such Mortgage acceptable to
         mortgage lending institutions in the area in which the related
         Mortgaged Property is located and specifically referred to in the
         lender's title insurance policy or attorney's opinion of title and
         abstract of title delivered to the originator of such Mortgage Loan,
         and (3) such other matters to which like properties are commonly
         subject which do not, individually or in the aggregate, materially
         interfere with the benefits of the security intended to be provided by
         the Mortgage, of any encumbrance, equity, participation interest, lien,
         pledge, charge, claim or security interest, and had full right and
         authority, subject to no interest or participation of, or agreement
         with, any other party, to sell and assign each Mortgage Loan pursuant
         to this Agreement;

                  (vii)    This Agreement creates a valid and continuing
         security interest (as defined in the applicable Uniform Commercial Code
         (the "UCC"), in the Mortgage Loans in favor of the Trustee, which
         security interest is prior to all other liens, and is enforceable as
         such against creditors of and purchasers from the Depositor;

                  (viii)   The Mortgage Loans constitute "instruments" within
         the meaning of the applicable UCC;

                  (ix)     Other than the security interest granted to the
         Trustee pursuant to this Agreement, the Depositor has not pledged,
         assigned, sold, granted a security interest in, or otherwise conveyed
         any of the Mortgage Loans. The Depositor has not authorized the filing
         of and is not aware of any financing statement against the Depositor
         that includes a description of the collateral covering the Mortgage
         Loans other than a financing statement relating to the security
         interest granted to the Trustee hereunder or that has

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         been terminated. The Depositor is not aware of any judgment or tax lien
         filings against the Depositor;

                  (x)      None of the Mortgage Loans have any marks or
         notations indicating that such Mortgage Loans have been pledged,
         assigned or otherwise conveyed to any Person other than the Trustee;
         and

                  (xi)     The Depositor has received all consents and approvals
         required by the terms of the Mortgage Loans to convey the Mortgage
         Loans hereunder to the Trustee;

                  (xii)    Each Mortgage Loan is a "qualified mortgage" within
         the meaning of Section 860G(a)(3) of the Code (without regard to
         Treasury Regulations Section 1.860G-2(f)) or any similar rule that
         provides that a defective obligation is a qualified mortgage for a
         temporary period;

                  (xiii)   No Mortgage Loan provides for interest other than at
         either (x) a single fixed rate in effect throughout the term of the
         Mortgage Loan or (y) a single "variable rate" (within the meaning of
         Treasury Regulations Section 1.860G-1(a)(3)) in effect throughout the
         term of the Mortgage Loan;

                  (xiv)    No Mortgage is the subject of pending or final
         foreclosure proceedings; and

                  (xv)     As of the Closing Date, the Depositor would not
         initiate foreclosure proceedings with respect to any Mortgage Loan
         based on such Mortgage Loan's delinquency status prior to the next
         scheduled payment date for such Mortgage Loan.

         The foregoing representations made in this Section 2.03 shall survive
the termination of this Agreement and shall not be waived by any party hereto.

         Section 2.04 Discovery of Breach; Repurchase or Substitution of
Mortgage Loans.

         (a) Pursuant to Sections 3(a) and 3(b) of the Mortgage Loan Purchase
and Sale Agreement, the Seller has made certain representations and warranties
as to the characteristics of the Mortgage Loans (such representations and
warranties are set out in full in Schedule B of this Agreement) as of the
Closing Date and the conveyance thereof from the Seller to the Depositor, for
the benefit of the Trustee and the Certificateholders, and the Seller has agreed
to comply with the provisions of this Section 2.04 in respect of a breach of any
of such representations and warranties.

         It is understood and agreed that (i) the representations and warranties
of the Depositor set forth in Section 2.03 and (ii) the representations and
warranties of the Seller set forth in Sections 3(a) and 3(b) of the Mortgage
Loan Purchase and Sale Agreement shall survive delivery of the Trustee Mortgage
Files and the Assignment of Mortgage of each Mortgage Loan to the Trustee and
shall continue throughout the term of this Agreement. Upon discovery (i) by the
Depositor, the Seller, or the Trustee of a breach of any representation or
warranty made by the Depositor under Section 2.03 which materially adversely
affects the value of a Mortgage Loan or the interest therein of the
Certificateholder (a "Defective Mortgage Loan"), or (ii) by the Depositor

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or the Seller of the breach by the Seller of any representation or warranty
under the Mortgage Loan Purchase and Sale Agreement in respect of any Mortgage
Loan, which breach results in the Mortgage Loan being a "Defective Mortgage
Loan" (each of such parties hereby agreeing to give written notice of such
breach to the Trustee and the other of such parties), the Trustee, or its
designee, shall promptly notify the Depositor in writing of such breach and
request that the Depositor cure or cause the cure of such breach within 90 days
from the date that the Depositor discovered or was notified of such breach, and
if the Depositor does not cure such breach in all material respects during such
period, the Trustee shall (i) in the case of an uncured breach under Section
2.03, cause the Depositor to repurchase such Defective Mortgage Loan at the
Purchase Price and (ii) in the case of an uncured breach by the Seller under the
Mortgage Loan Purchase and Sale Agreement, cause the Depositor to enforce the
Seller's obligation under the Mortgage Loan Purchase and Sale Agreement to
repurchase that Defective Mortgage Loan from the Trust Fund at the Purchase
Price, in each case on or prior to the Determination Date following the
expiration of such 90-day period (subject to Section 2.04(b) below); provided,
however, that, in connection with any such breach under clause (ii) above that
could not reasonably have been cured within such 90-day period, if the Seller
shall have commenced to cure such breach within such 90-day period and, if the
defective Mortgage Loan qualifies as a "qualified mortgage" within the meaning
of Section 860G(a)(3) of the Code following such 90-day period, the Seller shall
be permitted to proceed thereafter diligently and expeditiously to cure the same
within an additional 90-day period. The Purchase Price for the repurchased
Defective Mortgage Loan shall be deposited in the related Distribution Account,
and the Trustee, or its designee, upon receipt of such deposit and two copies of
a Request for Release with respect to such Defective Mortgage Loan, shall
release to the Seller or the Depositor, as applicable, the related Trustee
Mortgage File and shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, representation or warranties, as
either party shall furnish to it and as shall be necessary to vest in such party
any Defective Mortgage Loan released pursuant hereto and the Trustee, or its
designee, shall have no further responsibility with regard to such Trustee
Mortgage File (it being understood that the Trustee shall have no responsibility
for determining the sufficiency of such assignment for its intended purpose). In
lieu of repurchasing any such Defective Mortgage Loan as provided above, the
Seller may cause such Defective Mortgage Loan to be removed from the Trust Fund
(in which case it shall become a Deleted Mortgage Loan) and substitute one or
more Replacement Mortgage Loans in the manner and subject to the limitations set
forth in Section 2.04(b) below. It is understood and agreed that the obligation
of the Seller (or the Depositor, if applicable) to cure or to repurchase (or to
substitute for) any Mortgage Loan as to which a breach has occurred and is
continuing shall constitute the sole remedy against the Seller (or the
Depositor, if applicable) respecting such breach available to the Trustee on
behalf of the Certificateholders. With respect to the representations and
warranties described in Schedule B which are made to the best of the Seller's
knowledge, if it is discovered by any of the Depositor, the Seller or the
Trustee that the substance of such representation and warranty is inaccurate and
such inaccuracy materially and adversely affects the value of the related
Mortgage Loan, then notwithstanding the Seller's lack of knowledge with respect
to the substance of such representation and warranty, such inaccuracy shall be
deemed a breach of the applicable representation or warranty.

         (b) Any substitution of Replacement Mortgage Loans for Deleted Mortgage
Loans made pursuant to Section 2.04(a) above must be effected prior to the last
Business Day that is within two years after the Closing Date. As to any Deleted
Mortgage Loan for which the Seller

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<PAGE>

substitutes a Replacement Mortgage Loan or Loans, such substitution shall be
effected by delivering to the Trustee for such Replacement Mortgage Loan or
Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such
other documents and agreements, with all necessary endorsements thereon,
together with an Officers' Certificate stating that each such Replacement
Mortgage Loan satisfies the definition thereof and specifying the Substitution
Amount (as described below), if any, in connection with such substitution. The
Trustee shall acknowledge receipt for such Replacement Mortgage Loan and, within
45 days thereafter, shall review such Mortgage Documents as specified in this
Agreement under Section 2.02(a) and deliver to the Depositor, with respect to
such Replacement Mortgage Loans, a certification substantially in the form of a
revised Initial Certification, with any exceptions noted thereon. Within one
year of the date of substitution, the Trustee shall deliver to the Depositor a
certification substantially in the form of a revised Final Certification, with
respect to such Replacement Mortgage Loans, with any exceptions noted thereon.
Monthly Payments due with respect to Replacement Mortgage Loans in the month of
substitution shall not be included as part of the Trust Fund and shall be
retained by the Seller. For the month of substitution, distributions to
Certificateholders shall reflect the collections and recoveries in respect of
such Deleted Mortgage in the Due Period preceding the month of substitution and
the Seller shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Mortgage Loan. Upon such substitution, such
Replacement Mortgage Loan shall constitute part of the Trust Fund and shall be
subject in all respects to the terms of this Agreement and the Mortgage Loan
Purchase and Sale Agreement, including all representations and warranties
thereof included in the Mortgage Loan Purchase and Sale Agreement, in each case
as of the date of substitution.

         For any month in which the Seller substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Trustee, based upon
information provided by the Servicer, shall determine the excess (each, a
"Substitution Amount"), if any, by which the aggregate Purchase Price of all
such Deleted Mortgage Loans exceeds the aggregate Stated Principal Balance of
the Replacement Mortgage Loans replacing such Deleted Mortgage Loans, together
with one month's interest on such excess amount at the applicable Net Mortgage
Rate. On the date of such substitution, the Seller shall deliver or cause to be
delivered to the Servicer for deposit in the Custodial Account an amount equal
to the related Substitution Amount, if any, and the Trustee, upon receipt of the
related Replacement Mortgage Loan or Loans and two copies of a Request for
Release with respect to the Deleted Mortgage Loan or Loans, shall release to the
Seller the related Trustee Mortgage File or Files and shall execute and deliver
such instruments of transfer or assignment, in each case without recourse, as
the Seller shall deliver to it and as shall be necessary to vest therein any
Deleted Mortgage Loan released pursuant hereto.

         In addition, the Seller shall obtain at its own expense and deliver to
the Trustee an Opinion of Counsel to the effect that such substitution (either
specifically or as a class of transactions) shall not cause (a) any federal tax
to be imposed on the Trust Fund, including without limitation, any federal tax
imposed on "prohibited transactions" under Section 860F(a)(l) of the Code or on
"contributions after the startup date" under Section 860G(d)(l) of the Code, or
(b) any REMIC created hereunder to fail to qualify as a REMIC at any time that
any Certificate is outstanding. If such Opinion of Counsel can not be delivered,
then such substitution may only be effected at such time as the required Opinion
of Counsel can be given.

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<PAGE>

         (c) Upon discovery by the Seller, the Depositor or the Trustee that any
Mortgage Loan does not constitute a "qualified mortgage" within the meaning of
Section 860G(a)(3) of the Code, the party discovering such fact shall within two
Business Days give written notice thereof to the other parties. In connection
therewith, the Seller or Depositor, as applicable, shall repurchase, or the
Seller, subject to the limitations set forth in Section 2.04(b), shall
substitute one or more Replacement Mortgage Loans for the affected Mortgage Loan
within 90 days of the earlier of discovery or receipt of such notice with
respect to such affected Mortgage Loan. Any such repurchase or substitution
shall be made in the same manner as set forth in Sections 2.04(a) and 2.04(b)
above. The Trustee shall re-convey to the Seller the Mortgage Loan to be
released pursuant hereto in the same manner, and on the same terms and
conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.

         (d) The Seller indemnifies and holds the Trust Fund, the Trustee, the
Depositor and each Certificateholder harmless against any and all taxes, claims,
losses, penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Trust Fund, the
Trustee, the Depositor and any Certificateholder may sustain in connection with
any actions of such party relating to a repurchase of a Mortgage Loan other than
in compliance with the terms of this Section 2.04 and the Mortgage Loan Purchase
and Sale Agreement, to the extent that any such action causes (i) any federal or
state tax to be imposed on the Trust Fund, including without limitation, any
federal tax imposed on "prohibited transactions" under Section 860F(a)(1) of the
Code or on "contributions after the startup date" under Section 860G(d)(1) of
the Code, or (ii) any REMIC formed hereby to fail to qualify as a REMIC at any
time that any Certificate is outstanding.

         Section 2.05 Grant Clause.

         (a) It is intended that the conveyance of the Depositor's right, title
and interest in and to property constituting the Trust Fund pursuant to this
Agreement shall constitute, and shall be construed as, a sale of such property
and not a grant of a security interest to secure a loan. However, if such
conveyance is deemed to be in respect of a loan, it is intended that: (1) the
rights and obligations of the parties shall be established pursuant to the terms
of this Agreement; (2) the Depositor hereby grants to the Trustee for the
benefit of the Holders of the Certificates a first priority security interest in
all of the Depositor's right, title and interest in, to and under, whether now
owned or hereafter acquired, the Trust Fund and all proceeds of any and all
property constituting the Trust Fund to secure payment of the Certificates; and
(3) this Agreement shall constitute a security agreement under applicable law.
If such conveyance is deemed to be in respect of a loan and the trust created by
this Agreement terminates prior to the satisfaction of the claims of any Person
holding any Certificate, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent
for the benefit of such Person, and all proceeds shall be distributed as herein
provided.

         (b) The Depositor shall, to the extent consistent with this Agreement,
take such reasonable actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans and
the other property described above, such security interest would be deemed to be
a perfected security interest of first priority under applicable law and will be
maintained as such throughout the term of this Agreement. The Depositor will, at
its own expense, make all initial filings on or about the Closing Date and shall
forward a copy of

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<PAGE>

such filing or filings to the Trustee. Without limiting the generality of the
foregoing, the Depositor shall prepare and forward for filing, or shall cause to
be forwarded for filing, at the expense of the Depositor, all filings necessary
to maintain the effectiveness of any original filings necessary under the
relevant UCC to perfect the Trustee's security interest in or lien on the
Mortgage Loans and the other property described above, including without
limitation (x) continuation statements, and (y) such other statements as may be
occasioned by (1) any change of name of Seller, the Depositor or the Trustee,
(2) any change of location of the place of business or the chief executive
office of the Seller or the Depositor, (3) any transfer of any interest of the
Depositor in any Mortgage Loan or (4) any change under the relevant UCC or other
applicable laws. The Depositor shall not organize under the law of any
jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving 30 days prior written notice of
such action to its immediate and intermediate transferee, including the Trustee.
Before effecting such change, the Depositor proposing to change its jurisdiction
of organization shall prepare and file in the appropriate filing office any
financing statements or other statements necessary to continue the perfection of
the interests of its immediate and mediate transferees, including the Trustee,
in the Mortgage Loans and the other property described above. In connection with
the transactions contemplated by this Agreement, the Depositor authorizes its
immediate or mediate transferee to file in any filing office any initial
financing statements, any amendments to financing statements, any continuation
statements, or any other statements or filings described in this paragraph (b).

                                  ARTICLE III

                                THE CERTIFICATES

         Section 3.01 The Certificates.

         (a) The Certificates shall be issuable in registered form only and
shall be securities governed by Article 8 of the New York Uniform Commercial
Code. The Book-Entry Certificates will be evidenced by one or more certificates,
beneficial ownership of which will be held in the dollar denominations in
Certificate Principal Amount, or Class Notional Amount, as applicable, or in the
Percentage Interests, specified herein. Each Class of Book-Entry Certificates
will be issued in the minimum denominations in Certificate Principal Amount (or
Class Notional Amount) specified in the Preliminary Statement hereto and in
integral multiples of $1 in excess thereof. Each Class of Non-Book-Entry
Certificates other than the Residual Certificates shall be issued in definitive,
fully registered form in the minimum denominations in Certificate Principal
Amount specified in the Preliminary Statement hereto and in integral multiples
of $1 in excess thereof. The Residual Certificates shall be issued as single
Certificates and maintained in definitive, fully registered form in a
denomination equal to 100% of the Percentage Interest of each such Class. The
Class X-A-1, Class X-A-2 and Class X-B Certificates shall each be issued as
single Certificates in a denomination equal to 100% of the Percentage Interest
of each such Class.

         (b) The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Each Certificate shall, on
original issue, be authenticated by

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<PAGE>

the Trustee or an Authenticating Agent upon the order of the Depositor upon
receipt by the Trustee of the Trustee Mortgage Files described in Section 2.01.
No Certificate shall be entitled to any benefit under this Agreement, or be
valid for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein, executed by an
authorized officer of the Trustee or of an Authenticating Agent, by manual
signature, and such certification upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. At any time and from time to time after the execution
and delivery of this Agreement, the Depositor may deliver Certificates executed
by the Trustee to the Trustee or the Authenticating Agent for authentication and
the Trustee or the Authenticating Agent shall authenticate and deliver such
Certificates as in this Agreement provided and not otherwise.

         (c) The Class B-4, Class B-5 and Class B-6 certificates offered and
sold in reliance on the exemption from registration under Rule 144A under the
Act shall be issued initially in the form of one or more permanent global
Certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A added to the forms of such
Certificates (each, a "Restricted Global Security").

         Section 3.02 Registration.

         The Trustee is hereby appointed, and the Trustee hereby accepts its
appointment as, initial Certificate Registrar in respect of the Certificates and
shall maintain books for the registration and for the transfer of Certificates
(the "Certificate Register"). The Trustee may appoint a bank or trust company to
act as successor Certificate Registrar. A registration book shall be maintained
for the Certificates collectively. The Certificate Registrar may resign or be
discharged or removed and a new successor may be appointed in accordance with
the procedures and requirements set forth in Sections 6.06 and 6.07 hereof with
respect to the resignation, discharge or removal of the Trustee and the
appointment of a successor Trustee. The Certificate Registrar may appoint, by a
written instrument delivered to the Holders, any bank or trust company to act as
co-registrar under such conditions as the Certificate Registrar may prescribe;
provided, however, that the Certificate Registrar shall not be relieved of any
of its duties or responsibilities hereunder by reason of such appointment.

         Section 3.03 Transfer and Exchange of Certificates.

         (a) A Certificate (other than Book-Entry Certificates which shall be
subject to Section 3.09 hereof) may be transferred by the Holder thereof only
upon presentation and surrender of such Certificate at the office of the
Certificate Registrar duly endorsed or accompanied by an assignment duly
executed by such Holder or his duly authorized attorney in such form as shall be
satisfactory to the Certificate Registrar. Upon the transfer of any Certificate
in accordance with the preceding sentence, the Trustee shall execute, and the
Authenticating Agent shall authenticate and deliver to the transferee, one or
more new Certificates of the same Class and evidencing, in the aggregate, the
same aggregate Certificate Principal Amount (or Notional Amount) as the
Certificate being transferred. No service charge shall be made to a
Certificateholder for any registration of transfer of Certificates, but the
Certificate Registrar may

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<PAGE>

require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any registration of transfer of Certificates.

         (b) A Certificate may be exchanged by the Holder thereof for any number
of new Certificates of the same Class, in authorized denominations, representing
in the aggregate the same Certificate Principal Amount (or Notional Amount) as
the Certificate surrendered, upon surrender of the Certificate to be exchanged
at the office of the Certificate Registrar duly endorsed or accompanied by a
written instrument of transfer duly executed by such Holder or his duly
authorized attorney in such form as is satisfactory to the Certificate
Registrar. Certificates delivered upon any such exchange will evidence the same
obligations, and will be entitled to the same rights and privileges, as the
Certificates surrendered. No service charge shall be made to a Certificateholder
for any exchange of Certificates, but the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any exchange of Certificates. Whenever any
Certificates are so surrendered for exchange, the Trustee shall execute, and the
Authenticating Agent shall authenticate, date and deliver the Certificates which
the Certificateholder making the exchange is entitled to receive.

         (c) By acceptance of a Restricted Certificate, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will transfer such a Certificate only as provided herein.

         The following restrictions shall apply with respect to the transfer and
registration of transfer of a Restricted Certificate to a transferee that takes
delivery in the form of a Definitive Certificate:

                  (i)      The Certificate Registrar shall register the transfer
         of a Restricted Certificate if the requested transfer is (x) to the
         Depositor or an affiliate (as defined in Rule 405 under the 1933 Act)
         of the Depositor or (y) being made to a "qualified institutional buyer"
         (a "QIB") as defined in Rule 144A under the Securities Act of 1933, as
         amended (the "Act") by a transferor that has provided the Certificate
         Registrar with a certificate in the form of Exhibit G hereto; and

                  (ii)     The Certificate Registrar shall register the transfer
         of a Restricted Certificate if the requested transfer is being made to
         an "accredited investor" under Rule 501(a)(1), (2), (3) or (7) under
         the Act, or to any Person all of the equity owners in which are such
         accredited investors, by a transferor who furnishes to the Certificate
         Registrar a letter of the transferee substantially in the form of
         Exhibit H hereto.

         (d) No transfer of an ERISA-Restricted Certificate in the form of a
Definitive Certificate shall be made to any Person unless the Certificate
Registrar has received (A) a certificate substantially in the form of Exhibit I
hereto from such transferee or (B) an Opinion of Counsel satisfactory to the
Certificate Registrar to the effect that the purchase and holding of such a
Certificate will not constitute or result in the assets of the Trust Fund being
deemed to be "plan assets" subject to the prohibited transactions provisions of
ERISA, Section 4975 of the Code, or any provisions of applicable federal, state
or local law substantially similar to the foregoing provisions of ERISA or the
Code ("Similar Law"), and will not subject the Trustee, the

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Certificate Registrar or the Depositor to any obligation in addition to those
undertaken in the Agreement; provided, however, that the Certificate Registrar
will not require such certificate or opinion in the event that, as a result of a
change of law or otherwise, counsel satisfactory to the Certificate Registrar
has rendered an opinion to the effect that the purchase and holding of an
ERISA-Restricted Certificate by a plan or a Person that is purchasing or holding
such a Certificate with the assets of a plan will not constitute or result in a
prohibited transaction under ERISA, Section 4975 of the Code or Similar Law. The
preparation and delivery of the certificates and opinions referred to above
shall not be an expense of the Trust Fund, the Trustee, the Certificate
Registrar or the Depositor.

         Notwithstanding the foregoing, no Opinion of Counsel or certificate
shall be required for the initial issuance of the ERISA-Restricted Certificates.
Notwithstanding anything to the contrary herein, any purported transfer of an
ERISA-Restricted Certificate to or on behalf of an employee benefit plan subject
to Title I of ERISA or a plan subject to Section 4975 of the Code or a plan
subject to Similar Law without the delivery to the Certificate Registrar of a
certificate substantially in the form of Exhibit I hereto or an Opinion of
Counsel satisfactory to the Certificate Registrar as described above shall be
void and of no effect. The Trustee, the Certificate Registrar and the Depositor
shall be under no liability to any Person for any registration of transfer of
any ERISA-Restricted Certificate that is in fact not permitted by this Section
3.03(d) or for the Paying Agent making any payments due on such Certificate to
the Holder thereof or taking any other action with respect to such Holder under
the provisions of this Agreement so long as the transfer was registered by the
Certificate Registrar in accordance with the foregoing requirements. The last
preceding Holder of such Certificate that is not a plan or a Person acting on
behalf of a plan shall be entitled to recover from any purported Holder of any
ERISA-Restricted Certificate that was in fact an employee benefit plan subject
to Title I of ERISA or a plan subject to Section 4975 of the Code or a plan
subject to Similar Law or a Person acting on behalf of any such plan at the time
it became a Holder or, at such subsequent time as it became such a plan or
Person acting on behalf of such a plan, all payments made on such
ERISA-Restricted Certificate at and after either such time; provided that none
of the Depositor, the Certificate Registrar or the Trustee shall be responsible
for such recovery if they otherwise made a good faith effort to comply with this
Section 3.03(d).

         (e) As a condition of the registration of transfer or exchange of any
Certificate, the Certificate Registrar may require the certified taxpayer
identification number of the owner of the Certificate and the payment of a sum
sufficient to cover any tax or other governmental charge imposed in connection
therewith; provided, however, that the Certificate Registrar shall have no
obligation to require such payment or to determine whether or not any such tax
or charge may be applicable. No service charge shall be made to the
Certificateholder for any registration, transfer or exchange of a Certificate.

         (f) Notwithstanding anything to the contrary contained herein, no
Residual Certificate or beneficial interest therein may be owned, pledged or
transferred, directly or indirectly, by or to (i) a Disqualified Organization or
(ii) an individual, corporation or partnership or other person unless, in the
case of clause (ii), such person is (A) not a Non-U.S. Person or (B) is a
Non-U.S. Person that holds a Residual Certificate in connection with the conduct
of a trade or business within the United States and has furnished the transferor
and the Certificate Registrar with an effective Internal Revenue Service Form
W-8ECI or successor form at the time and in the

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<PAGE>

manner required by the Code (any such person who is not covered by clause (A) or
(B) above is referred to herein as a "Non-permitted Foreign Holder").

         Prior to and as a condition of the registration of any transfer, sale
or other disposition of a Residual Certificate or a beneficial interest therein,
the proposed transferee shall deliver to the Trustee and the Certificate
Registrar an affidavit in substantially the form attached hereto as Exhibit B
representing and warranting, among other things, that such transferee is neither
a Disqualified Organization, an agent or nominee acting on behalf of a
Disqualified Organization, nor a Non-permitted Foreign Holder (any such
transferee, a "Permitted Transferee"), and the proposed transferor shall deliver
to the Trustee and the Certificate Registrar an affidavit in substantially the
form attached hereto as Exhibit C. In addition, the Trustee or the Certificate
Registrar may (but shall have no obligation to) require, prior to and as a
condition of any such transfer, the delivery by the proposed transferee of an
Opinion of Counsel, addressed to the Trustee and the Certificate Registrar, that
such proposed transferee or, if the proposed transferee is an agent or nominee,
the proposed beneficial owner, is not a Disqualified Organization, agent or
nominee thereof, or a Non-permitted Foreign Holder. Notwithstanding the
registration in the Certificate Register of any transfer, sale, or other
disposition of a Residual Certificate to a Disqualified Organization, an agent
or nominee thereof, or Non-permitted Foreign Holder, such registration shall be
deemed to be of no legal force or effect whatsoever and such Disqualified
Organization, agent or nominee thereof, or Non-permitted Foreign Holder shall
not be deemed to be a Certificateholder for any purpose hereunder, including,
but not limited to, the receipt of distributions on such Residual Certificate.
The Depositor, the Certificate Registrar and the Trustee shall be under no
liability to any Person for any registration or transfer of a Residual
Certificate to a Disqualified Organization, agent or nominee thereof or
Non-permitted Foreign Holder or for the Paying Agent making any payments due on
such Residual Certificate to the Holder thereof or for taking any other action
with respect to such Holder under the provisions of the Agreement, so long as
the transfer was effected in accordance with this Section 3.03(f), unless the
Certificate Registrar shall have actual knowledge at the time of such transfer
or the time of such payment or other action that the transferee is a
Disqualified Organization, or an agent or nominee thereof, or Non-permitted
Foreign Holder. The Certificate Registrar shall be entitled to recover from any
Holder of a Residual Certificate that was a Disqualified Organization, agent or
nominee thereof, or Non-permitted Foreign Holder at the time it became a Holder
or at any subsequent time became a Disqualified Organization, agent or nominee
thereof, or Non-permitted Foreign Holder, all payments made on such Residual
Certificate at and after either of such times (and all costs and expenses,
including but not limited to attorneys' fees, incurred in connection therewith).
Any payment (not including any such costs and expenses) so recovered by the
Certificate Registrar shall be paid and delivered to the last preceding Holder
of such Residual Certificate.

         If any purported transferee shall become a registered Holder of a
Residual Certificate in violation of the provisions of this Section 3.03(f),
then upon receipt of written notice to the Trustee that the registration of
transfer of such Residual Certificate was not in fact permitted by this Section
3.03(f), such transfer shall be absolutely null and void and shall vest no
rights in the purported transferee and the last preceding Permitted Transferee
shall be restored to all rights as Holder thereof retroactive to the date of
such registration of transfer of such Residual Certificate. The Depositor, the
Certificate Registrar and the Trustee shall be under no liability to any Person
for any registration of transfer of a Residual Certificate that is in fact not
permitted by this

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<PAGE>

Section 3.03(f), or for the Paying Agent making any payment due on such
Certificate to the registered Holder thereof or for taking any other action with
respect to such Holder under the provisions of this Agreement so long as the
transfer was registered upon receipt of the affidavit described in the preceding
paragraph of this Section 3.03(f).

         (g) Each Holder or Certificate Owner of a Restricted Certificate,
ERISA-Restricted Certificate or Residual Certificate, or an interest therein, by
such Holder's or Owner's acceptance thereof, shall be deemed for all purposes to
have consented to the provisions of this section.

         Section 3.04 Cancellation of Certificates.

         Any Certificate surrendered for registration of transfer or exchange
shall be cancelled and retained in accordance with normal retention policies
with respect to cancelled certificates maintained by the Trustee or the
Certificate Registrar.

         Section 3.05 Replacement of Certificates.

         If (i) any Certificate is mutilated and is surrendered to the Trustee
or the Certificate Registrar or (ii) the Trustee or the Certificate Registrar
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Trustee and the Certificate Registrar
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Depositor, the Trustee or the
Certificate Registrar that such destroyed, lost or stolen Certificate has been
acquired by a protected purchaser, the Trustee shall execute and the
Authenticating Agent shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor and Certificate Principal Amount. Upon the issuance of any new
Certificate under this Section 3.05, the Trustee, the Depositor or the
Certificate Registrar may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee, the Depositor or
the Certificate Registrar) connected therewith. Any replacement Certificate
issued pursuant to this Section 3.05 shall constitute complete and indefeasible
evidence of ownership in the applicable Trust Fund, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

         If after the delivery of such new Certificate, a protected purchaser of
the original Certificate in lieu of which such new Certificate was issued
presents for payment such original Certificate, the Depositor, the Certificate
Registrar and the Trustee or any agent shall be entitled to recover such new
Certificate from the Person to whom it was delivered or any Person taking
therefrom, except a protected purchaser, and shall be entitled to recover upon
the security or indemnity provided therefor to the extent of any loss, damage,
cost or expenses incurred by the Depositor, the Certificate Registrar, the
Trustee or any agent in connection therewith.

         Section 3.06 Persons Deemed Owners.

         Subject to the provisions of Section 3.09 with respect to Book-Entry
Certificates, the Depositor, the Trustee, the Certificate Registrar, the Paying
Agent and any agent of any of them shall treat the Person in whose name any
Certificate is registered upon the books of the

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<PAGE>

Certificate Registrar as the owner of such Certificate for the purpose of
receiving distributions pursuant to Sections 5.01 and 5.02 and for all other
purposes whatsoever, and neither the Depositor, the Trustee, the Certificate
Registrar, the Paying Agent nor any agent of any of them shall be affected by
notice to the contrary.

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         Section 3.07 Temporary Certificates.

         (a) Pending the preparation of definitive Certificates, upon the order
of the Depositor, the Trustee shall execute and the Authenticating Agent shall
authenticate and deliver temporary Certificates that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Certificates in lieu of which they
are issued and with such variations as the authorized officers executing such
Certificates may determine, as evidenced by their execution of such
Certificates.

         (b) If temporary Certificates are issued, the Depositor will cause
definitive Certificates to be prepared without unreasonable delay. After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the office or agency of the Certificate Registrar without charge
to the Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Trustee shall execute and the Authenticating Agent shall
authenticate and deliver in exchange therefor a like aggregate Certificate
Principal Amount (or Notional Amount) of definitive Certificates of the same
Class in the authorized denominations. Until so exchanged, the temporary
Certificates shall in all respects be entitled to the same benefits under this
Agreement as definitive Certificates of the same Class.

         Section 3.08 Appointment of Paying Agent.

         The Trustee may appoint a Paying Agent (which may be the Trustee) for
the purpose of making distributions to Certificateholders hereunder. The Trustee
shall cause any Paying Agent to execute and deliver to the Trustee an instrument
in which such Paying Agent shall agree with the Trustee that such Paying Agent
will hold all sums held by it for the payment to Certificateholders in an
Eligible Account (which shall be the Distribution Account) in trust for the
benefit of the Certificateholders entitled thereto until such sums shall be paid
to the Certificateholders. All funds remitted by the Trustee to any such Paying
Agent for the purpose of making distributions shall be paid to
Certificateholders on each Distribution Date and any amounts not so paid shall
be returned on such Distribution Date to the Trustee. If the Paying Agent is not
the Trustee, the Trustee shall cause to be remitted to the Paying Agent on or
before the Business Day prior to each Distribution Date, by wire transfer in
immediately available funds, the funds to be distributed on such Distribution
Date. Any Paying Agent shall be either a bank or trust company or otherwise
authorized under law to exercise corporate trust powers.

         Section 3.09 Book-Entry Certificates.

         (a) Each Class of Book-Entry Certificates, upon original issuance,
shall be issued in the form of one or more typewritten Certificates representing
the Book-Entry Certificates. The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of the nominee of the
Clearing Agency, and no Certificate Owner will receive a definitive certificate
representing such Certificate Owner's interest in the Book-Entry Certificates,
except as provided in Section 3.09(c). Unless Definitive Certificates have been
issued to Certificate Owners of Book-Entry Certificates pursuant to Section
3.09(c):

                  (i)      the provisions of this Section 3.09 shall be in full
         force and effect;

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<PAGE>

                  (ii)     the Certificate Registrar, the Paying Agent and the
         Trustee shall deal with the Clearing Agency for all purposes (including
         the making of distributions on the Book-Entry Certificates) as the
         authorized representatives of the Certificate Owners and the Clearing
         Agency and shall be responsible for crediting the amount of such
         distributions to the accounts of such Persons entitled thereto, in
         accordance with the Clearing Agency's normal procedures;

                  (iii)    to the extent that the provisions of this Section
         3.09 conflict with any other provisions of this Agreement, the
         provisions of this Section 3.09 shall control; and

                  (iv)     the rights of Certificate Owners shall be exercised
         only through the Clearing Agency and the Clearing Agency Participants
         and shall be limited to those established by law and agreements between
         such Certificate Owners and the Clearing Agency and/or the Clearing
         Agency Participants. Unless and until Definitive Certificates are
         issued pursuant to Section 3.09(c), the initial Clearing Agency will
         make book-entry transfers among the Clearing Agency Participants and
         receive and transmit distributions of principal of and interest on the
         Book-Entry Certificates to such Clearing Agency Participants.

         (b) Whenever notice or other communication to the Certificateholders is
required under this Agreement, unless and until Definitive Certificates shall
have been issued to Certificate Owners pursuant to Section 3.09(c), the Trustee
shall give all such notices and communications specified herein to be given to
Holders of the Book-Entry Certificates to the Clearing Agency.

         (c) If (i) (A) the Clearing Agency or the Depositor advises the Paying
Agent in writing that the Clearing Agency is no longer willing or able to
discharge properly its responsibilities with respect to the Book-Entry
Certificates, and (B) the Depositor is unable to locate a qualified successor
satisfactory to the Depositor and the Paying Agent, (ii) the Depositor, at its
option, advises the Paying Agent in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, Certificate Owners representing beneficial interests
aggregating not less than 50% of the Class Principal Amount (or Class Notional
Amount) of a Class of Book-Entry Certificates advise the Paying Agent and the
Clearing Agency through the Clearing Agency Participants in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in
the best interests of the Certificate Owners of a Class of Book-Entry
Certificates, the Certificate Registrar shall notify the Clearing Agency to
effect notification to all Certificate Owners, through the Clearing Agency, of
the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Certificate Registrar of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency for
registration, the Certificate Registrar shall issue the Definitive Certificates.
Neither the Depositor, the Certificate Registrar nor the Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of
Definitive Certificates all references herein to obligations imposed upon or to
be performed by the Clearing Agency shall be deemed to be imposed upon and
performed by the Certificate Registrar, to the extent applicable, with respect
to such Definitive Certificates and the Certificate Registrar shall recognize
the holders of the Definitive Certificates as Certificateholders hereunder.
Notwithstanding the foregoing, the

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<PAGE>

Certificate Registrar, upon the instruction of the Depositor, shall have the
right to issue Definitive Certificates on the Closing Date in connection with
credit enhancement programs.

                                   ARTICLE IV

                        ADMINISTRATION OF THE TRUST FUND

         Section 4.01 Custodial Accounts; Distribution Account.

         (a) On or prior to the Closing Date, the Servicer shall establish and
maintain one or more Custodial Accounts, as provided in the Servicing Agreement,
into which all Scheduled Payments and unscheduled payments with respect to the
Mortgage Loans, net of any deductions or reimbursements permitted under the
Servicing Agreement, shall be deposited. Prior to 1:00 p.m. New York City time
on each Distribution Account Deposit Date, the Servicer shall remit to the
Trustee for deposit into the Distribution Account, all amounts so required to be
deposited into such account in accordance with the terms of the Servicing
Agreement.

         (b) The Trustee, shall establish and maintain an Eligible Account
entitled "Distribution Account of Wells Fargo Bank Minnesota, National
Association, as Trustee, for the benefit of Merrill Lynch Mortgage Investors
Trust Series MLCC 2003-G Holders of Mortgage Pass-Through Certificates." The
Trustee shall, promptly upon receipt from the Servicer on each Distribution
Account Deposit Date, deposit into the Distribution Account and retain on
deposit until the related Distribution Date the following amounts:

                  (i)      the aggregate of collections with respect to the
         Mortgage Loans remitted by the Servicer from the Custodial Accounts in
         accordance with the Servicing Agreement, including the amount of any
         Advances or Compensating Interest Payments with respect to the Mortgage
         Loans required to be paid by the Servicer; and

                  (ii)     any other amounts so required to be deposited in the
         Distribution Account in the related Due Period pursuant to this
         Agreement.

         (c) In the event Servicer has remitted in error to the Distribution
Account any amount not required to be remitted in accordance with the definition
of Available Distribution Amount, it may at any time direct the Trustee to
withdraw such amount from the Distribution Account for repayment to the
Servicer, as applicable, by delivery of an Officer's Certificate of the Servicer
to the Trustee which describes the amount deposited in error.

         (d) On each Distribution Date and Purchase Date, the Trustee shall
distribute the Available Distribution Amount to the Certificateholders and any
other parties entitled thereto in the amounts and priorities set forth in
Section 5.02. The Trustee may from time to time withdraw from the Distribution
Account and pay itself or the Servicer any amounts permitted to be paid or
reimbursed to such Person from funds in the Distribution Account pursuant to the
clauses (A) through (D) of the definition of Available Distribution Amount.

         (e) Funds in the Distribution Account may be invested in Permitted
Investments selected by the Trustee, which shall mature not later than one
Business Day prior to the Distribution Date

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<PAGE>

(except that if such Permitted Investment is an obligation of the Trustee or is
managed or advised by the Trustee or its affiliates, then such Permitted
Investment shall mature not later than such applicable Distribution Date) and
any such Permitted Investment shall not be sold or disposed of prior to its
maturity. All such Permitted Investments shall be made in the name of the
Trustee (in its capacity as such) or its nominee. All income and gain realized
from any Permitted Investment shall be for the benefit of the Trustee and shall
be subject to its withdrawal or order from time to time, and shall not be part
of the Trust Fund. The amount of any losses incurred in respect of any such
investments shall be deposited in such Distribution Account by the Trustee out
of its own funds, without any right of reimbursement therefor, immediately as
realized. Any such funds that are not invested in Permitted Investments may be
held uninvested.

         Section 4.02 Reports to Trustee and Certificateholders.

         On each Distribution Date, the Trustee shall have prepared and shall
make available to each Certificateholder and other interested parties a written
report setting forth the following information (on the basis of Mortgage Loan
level information obtained from the Servicer).

         (a) the amount of the distributions, separately identified, with
respect to each Class of Certificates;

         (b) the amount of the distributions set forth in the clause (a)
allocable to principal, separately identifying the aggregate amount of any
Principal Prepayments or other unscheduled recoveries of principal included in
that amount;

         (c) the amount of the distributions set forth in the clause (a)
allocable to interest and how it was calculated;

         (d) the amount of any unpaid Interest Shortfall, Basis Risk Shortfall
or Unpaid Basis Risk Shortfall (if applicable) and the related accrued interest
thereon, with respect to each Class of Certificates;

         (e) the Class Principal Amount of each Class of Certificates after
giving effect to the distribution of principal on that Distribution Date;

         (f) the Aggregated Stated Principal Balance of the Mortgage Loans in
each Mortgage Pool and the applicable Net WAC of the Mortgage Loans at the end
of the related Prepayment Period;

         (g) the Stated Principal Balance of the Mortgage Loans in each Mortgage
Pool whose Mortgage Rates adjust on the basis of the One-Month LIBOR index and
the Six-Month LIBOR index at the end of the related Prepayment Period;

         (h) the Pro Rata Senior Percentage, Senior Percentage and the
Subordinate Percentage for each Mortgage Pool for the following Distribution
Date;

         (i) the Senior Prepayment Percentage and Subordinate Prepayment
Percentage for each Mortgage Pool the following Distribution Date;

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<PAGE>

         (j) in the aggregate and with respect to each Mortgage Pool, the amount
of Servicing Fee paid to or retained by the Servicer;

         (k) in the aggregate and with respect to each Mortgage Pool, the amount
of Advances for the related Due Period;

         (l) in the aggregate and with respect to each Mortgage Pool, the number
and Stated Principal Balance of the Mortgage Loans that were (A) Delinquent
(exclusive of Mortgage Loans in foreclosure) (1) 30 to 59 days, (2) 60 to 89
days and (3) 90 or more days, (B) in foreclosure and Delinquent (1) 30 to 59
days, (2) 60 to 89 days and (3) 90 or more days and (C) in bankruptcy as of the
close of business on the last day of the calendar month preceding that
Distribution Date;

         (m) in the aggregate and with respect to each Mortgage Pool, for any
Mortgage Loan as to which the related Mortgaged Property was an REO property
during the preceding calendar month, the principal balance of that Mortgage Loan
as of the close of business on the last day of the related Due Period;

         (n) in the aggregate and with respect to each Mortgage Pool, the total
number and principal balance of any REO properties as of the close of business
on the last day of the preceding Due Period;

         (o) in the aggregate and with respect to each Mortgage Pool, the amount
of Realized Losses incurred during the preceding calendar month;

         (p) in the aggregate and with respect to each Mortgage Pool, the
cumulative amount of Realized Losses incurred since the Closing Date;

         (q) the Realized Losses, if any, allocated to each Class of
Certificates on that Distribution Date;

         (r) the Certificate Interest Rate for each Class of Certificates for
that Distribution Date;

         (s) the amount of any Principal Transfer Amounts or Interest Transfer
Amounts paid to an Undercollateralized Group or Principal Transfer Amounts
between Groups in the event of Rapid Prepayment Conditions; and

         (t) for each Class of Certificates, the amounts accrued and paid in
respect of each deemed interest rate cap agreement under which such Class of
Certificates is deemed entitled to receive or deemed obligated to make payments
as provided for in Section 10.01 hereof.

         The Trustee shall make such reports available each month via its
website at http://www.ctslink.com. Assistance in using the website may be
obtained by calling the Trustee's customer service desk at (301) 815-6600.
Certificateholders and other parties that are unable to use the website are
entitled to have a paper copy mailed to them via first class mail by contacting
the Trustee and indicating such. In preparing or furnishing the foregoing
information, the Trustee shall be entitled to rely conclusively on the accuracy
of the information or data regarding the Mortgage Loans and the related REO
Properties that has been provided to the Trustee by the

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<PAGE>

Servicer, and the Trustee shall not be obligated to verify, recompute, reconcile
or recalculate any such information or data.

         Upon receipt by the Trustee of the reasonable advance written request
of any Certificateholder that is a savings and loan, bank or insurance company,
the Trustee shall provide, or cause to be provided (or, to the extent that such
information or documentation is not required to be provided by a Servicer under
the Servicing Agreement, shall use reasonable efforts to obtain such information
and documentation from the Servicer, and provide) to such Certificateholders
such reports and access to information and documentation regarding the Mortgage
Loans as such Certificateholders may reasonably deem necessary to comply with
applicable regulations of the Office of Thrift Supervision or its successor or
other regulatory authorities with respect to an investment in the Certificates;
provided, however, that the Trustee shall be entitled to be reimbursed by such
Certificateholders for the Trustee's actual expenses incurred in providing such
reports and access.

         The Trustee shall prepare and file with the Internal Revenue Service
("IRS"), on behalf of the Trust Fund, an application for an employer
identification number on IRS Form SS-4 or by any other acceptable method. The
Trustee shall also file a Form 8811 as required. The Trustee, upon receipt from
the IRS of the Notice of Taxpayer Identification Number Assigned, shall upon
request promptly forward a copy of such notice to the Depositor. The Trustee
shall furnish any other information that is required by the Code and regulations
thereunder to be made available to Certificateholders. The Depositor shall cause
the Servicer to provide the Trustee with such information as is necessary for
the Trustee to prepare such reports.

                                   ARTICLE V

                    DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

         Section 5.01 Distributions Generally.

         (a) Subject to Section 7.01 respecting the final distribution on the
Certificates, on each Distribution Date the Trustee or the Paying Agent shall
make distributions in accordance with this Article V. Such distributions shall
be made by check mailed to each Certificateholder's address as it appears on the
Certificate Register of the Certificate Registrar or, upon written request made
to the Trustee at least five Business Days prior to the related Record Date by
any Certificateholder owning an aggregate initial Certificate Principal Amount
of at least $1,000,000, or in the case of a Class of Interest-Only Certificates
or Residual Certificate, a Percentage Interest of not less than 100%, by wire
transfer in immediately available funds to an account specified in the request
and at the expense of such Certificateholder; provided, however, that the final
distribution in respect of any Certificate shall be made only upon presentation
and surrender of such Certificate at the Certificate Registrar's Corporate Trust
Office; provided, further, that the foregoing provisions shall not apply to any
Class of Certificates as long as such Certificate remains a Book-Entry
Certificate in which case all payments made shall be made through the Clearing
Agency and its Clearing Agency Participants. Wire transfers will be made at the
expense of the Holder requesting such wire transfer by deducting a wire transfer
fee from the related distribution. Notwithstanding such final payment of
principal of any of the Certificates,

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<PAGE>

each Residual Certificate will remain outstanding until the termination of each
REMIC and the payment in full of all other amounts due with respect to the
Residual Certificates and at such time such final payment in retirement of any
Residual Certificate will be made only upon presentation and surrender of such
Certificate at the Certificate Registrar's Corporate Trust Office. If any
payment required to be made on the Certificates is to be made on a day that is
not a Business Day, then such payment will be made on the next succeeding
Business Day.

         (b) All distributions or allocations made with respect to
Certificateholders within each Class on each Distribution Date shall be
allocated among the outstanding Certificates in such Class equally in proportion
to their respective initial Class Principal Amounts or initial Class Notional
Amounts (or Percentage Interests).

         Section 5.02 Distributions from the Distribution Account.

         (a) Subject to Sections 5.02(h) and 5.02(i), on each Distribution Date,
the Available Distribution Amount for the related Mortgage Pool (in the case of
the Components of the Class X-A-1 and Class X-A-2 Certificates and the Senior
Certificates other than the Class X Certificates) and the Mortgage Pools in the
aggregate (in the case of the Subordinate Certificates and the Class X-B
Certificates) shall be withdrawn by the Trustee from the Distribution Account
and allocated among the classes of Senior Certificates and Subordinate
Certificates in the following order of priority:

                  (i)      Concurrently, to the payment of the Interest
         Distribution Amount and any accrued but unpaid Interest Shortfalls with
         respect to each class of Senior Certificates (other than the Class X
         Certificates) and the Components, with, subject to the proviso set
         forth below, (x) all amounts payable in respect of Component XB1,
         Component XB2 and Component XB3 being payable to the Class X-B
         Certificates, (y) all amounts payable in respect of the Pool 1 NAS
         Component and the Pool 2 NAS Component being payable to the Class X-A-1
         Certificates and (z) all amounts payable in respect of the Pool 1
         Companion Component and the Pool 2 Companion Component being payable to
         the Class X-A-2 Certificates; provided, however, that on each
         Distribution Date, amounts that would otherwise be payable to the Class
         X-A-1, Class X-A-2 or Class X-B Certificates under this clause (a)(i)
         will (A) in the case of amounts otherwise payable to the Class X-A-1 or
         Class X-A-2 Certificates in respect of the Pool 1 NAS Component or Pool
         1 Companion Component, be paid to the Class A-1 Certificates to the
         extent of any Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls
         for the Class A-1 Certificates as of such Distribution Date, (B) in the
         case of amounts otherwise payable to the Class X-A-1 and Class X-A-2
         Certificates in respect of the Pool 2 NAS Component or Pool 2 Companion
         Component, be paid to the Class A-2 Certificates to the extent of any
         Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls for the Class
         A-2 Certificates as of such Distribution Date, (C) in the case of
         amounts otherwise payable to the Class X-B Certificates, be paid to the
         Class B-2 Certificates to the extent of any Basis Risk Shortfalls and
         Unpaid Basis Risk Shortfalls for the Class B-2 Certificates,
         respectively, as of such Distribution Date, (D) in the case of amounts
         otherwise payable to the Class X-A-2 Certificates in respect of the
         Pool 1 Companion Component, be paid to the Class X-A-1 Certificates in
         respect of the Pool 1 NAS Component to the extent of any previously
         unreimbursed amounts not distributed in respect of the Pool 1 NAS
         Component as a

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<PAGE>

         result of clause (A) above or as a result of the Current Interest
         Restriction and (E) in the case of amounts otherwise payable to the
         Class X-A-2 Certificates in respect of the Pool 2 Companion Component,
         be paid to the Class X-A-1 Certificates in respect of the Pool 2 NAS
         Component to the extent of any previously unreimbursed amounts not
         distributed in respect of the Pool 2 NAS Component as a result of
         clause (B) above or as a result of the Current Interest Restriction;

                  (ii)     Concurrently, to the Senior Certificates from the
         Available Distribution Amount remaining in the related Mortgage Pool
         after application of amounts pursuant to clause (i) above, as follows:

                           (a)      sequentially to the Class A-R and Class A-1
                                    Certificates, in that order, the Senior
                                    Principal Distribution Amount for Pool 1,
                                    until their respective Class Principal
                                    Amounts have been reduced to zero;

                           (b)      to the Class A-2 Certificates, the Senior
                                    Principal Distribution Amount for Pool 2,
                                    until its Class Principal Amount has been
                                    reduced to zero;

                           (c)      to the Class A-3 Certificates, the Senior
                                    Principal Distribution Amount for Pool 3,
                                    until its Class Principal Amount has been
                                    reduced to zero; and

                           (d)      to the Class A-4A and Class A-4B
                                    Certificates, the Senior Principal
                                    Distribution Amount for Pool 4 as follows:
                                    to the Class A-4A Certificates until its
                                    Class Principal Amount has been reduced to
                                    zero and then to the Class A-4B
                                    Certificates, until its Class Principal
                                    Amount has been reduced to zero.

                  (iii)    From the Available Distribution Amount from the
         Mortgage Pools in the aggregate remaining after the application of
         amounts pursuant to clauses (i) and (ii) above, to the Class B-1, Class
         B-2 and Class B-3 Certificates, sequentially, in that order, the
         Interest Distribution Amount and any Interest Shortfalls, in each case,
         for such Class on such date;

                  (iv)     From the Available Distribution Amount from the
         Mortgage Pools in the aggregate remaining after application of amounts
         pursuant to clauses (i) through (iii) above, to the Class B-1, Class
         B-2 and Class B-3 Certificates, sequentially, in that order, such
         Class' Subordinate Class Percentage of the Subordinate Principal
         Distribution Amount for each Mortgage Pool, until its Class Principal
         Amount has been reduced to zero;

                  (v)      From the remaining Available Distribution Amount from
         the Mortgage Pools in the aggregate remaining after application of
         amounts pursuant to clauses (i) through (iv) in the following order of
         priority:

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<PAGE>

                  (A) to the Class B-4 Certificates, the payment of its Interest
         Distribution Amount and any outstanding Interest Shortfalls;

                  (B) to the Class B-4 Certificates, such Class' Subordinate
         Class Percentage of the Subordinate Principal Distribution Amount for
         each Mortgage Pool, until its Class Principal Amount has been reduced
         to zero;

                  (C) to the Class B-5 Certificates, the payment of its Interest
         Distribution Amount and any outstanding Interest Shortfalls;

                  (D) to the Class B-5 Certificates, such Class' Subordinate
         Class Percentage of the Subordinate Principal Distribution Amount for
         each Mortgage Pool, until its Class Principal Amount has been reduced
         to zero;

                  (E) to the Class B-6 Certificates, the payment of its Interest
         Distribution Amount and any outstanding Interest Shortfalls; and

                  (F) to the Class B-6 Certificates, such Class' Subordinate
         Class Percentage of the Subordinate Principal Distribution Amount for
         each Mortgage Pool, until its Class Principal Amount has been reduced
         to zero;

                  (vi) To the Class A-R Certificate, any remaining amount of the
         Available Distribution Amount from the Mortgage Pools in the aggregate
         allocated as provided in Section 5.02(d).

Amounts paid to the Class A-1 Certificates on any Distribution Date pursuant to
the proviso in clause (a)(i)(A) above shall reduce amounts otherwise payable on
such Distribution Date in respect of the Pool 1 Companion Component before
reducing any amounts otherwise payable to the Pool 1 NAS Component. Amounts paid
to the Class A-2 Certificates on any Distribution Date pursuant to the proviso
in clause (a)(i)(B) above shall reduce amounts otherwise payable on such
Distribution Date in respect of the Pool 2 Companion Component before reducing
any amounts otherwise payable to the Pool 2 NAS Component. Amounts that would
have been distributed in respect of the Class X-A-1, Class X-A-2 and Class X-B
Certificates, but for the proviso set forth in clause (a)(i) above shall, except
for purposes of determining unreimbursed amounts under clauses (a)(i)(D) and (E)
above, be treated as having been distributed to the Class X-A-1, Class X-A-2 and
Class X-B Certificates, as the case may be, for purposes of determining
subsequent Interest Shortfalls with respect to the Class X-A-1, Class X-A-2 and
Class X-B Certificates.

         (b) On each Distribution Date on and after the Credit Support Depletion
Date, the Available Distribution Amount for each Mortgage Pool shall be
distributed to the remaining Classes of Certificates of the related Certificate
Group and, in the case of Mortgage Pool 1 or Mortgage Pool 2, in respect of the
related Components of the Class X-A-1 and Class X-A-2 Certificates, as the case
may be, on a pro rata basis, first, to pay the Interest Distribution amount and
any accrued but unpaid Interest Shortfalls; provided, however, that on each
Distribution Date with respect to the Class A-1 or Class A-2

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Certificates (as applicable) (x) the amount of the Interest Distribution Amount
that would otherwise be payable to the related Pool Companion Component or Pool
NAS Component (in that order) will be paid to the Class A-1 or Class A-2
Certificates (as applicable) to the extent of any Basis Risk Shortfalls for the
Class A-1 or Class A-2 Certificates (as applicable) and (y) the amount of the
Interest Distribution Amount that would otherwise be payable on the related Pool
Companion Component (after the application of clause (x) above) will be payable
to the related Pool NAS Component to the extent of any remaining unreimbursed
amounts otherwise payable to the related Pool NAS Component that were
distributed to the Class A-1 or Class A-2 Certificates (as applicable) in
respect of Basis Risk Shortfalls or that were not paid with respect to the
related Pool NAS Component as a result of the Current Interest Restriction;
second, to pay the Senior Principal Distribution Amount for such Mortgage Pool;
and third, to the Class A-R Certificate, any remaining Available Distribution
Amount from such Mortgage Pool.

Amounts paid to the Class A-1 Certificates on any Distribution Date pursuant to
the proviso in this clause (b) shall reduce amounts otherwise payable on such
Distribution Date in respect of the Pool 1 Companion Component before reducing
any amounts otherwise payable to the Pool 1 NAS Component. Amounts paid to the
Class A-2 Certificates on any Distribution Date pursuant to the proviso in this
clause (b) shall reduce amounts otherwise payable on such Distribution Date in
respect of the Pool 2 Companion Component before reducing any amounts otherwise
payable to the Pool 2 NAS Component. Amounts that would have been distributed in
respect of the Class X-A-1 or Class X-A-2 Certificates but for the proviso set
forth in this Section 5.02(b) shall, except for purposes of determining
unreimbursed amounts under clause (b)(y) above, be treated as having been
distributed to the Class X-A-1 or Class X-A-2 Certificates, as the case may be,
for purposes of determining subsequent Interest Shortfalls with respect to the
Class X-A-1 or Class X-A-2 Certificates.

         (c) Notwithstanding the priority and allocation set forth in Section
5.02(a)(iv) and Section 5.02(a)(v) above, if with respect to any Class of
Subordinate Certificates on any Distribution Date the sum of the related Class
Subordination Percentages of such Class and of all other Classes of Subordinate
Certificates which have a higher numerical Class designation than such Class is
less than the Original Applicable Credit Support Percentage for such Class, no
distribution of Principal Prepayments shall be made to any such Classes and the
amount of such Principal Prepayment otherwise distributable to such Classes
shall be distributed to any Classes of Subordinate Certificates having lower
numerical Class designations than such Class, pro rata, based on the Class
Principal Amounts of the respective Classes immediately prior to such
Distribution Date and shall be distributed in the sequential order provided in
Section 5.02(a)(iv) and Section 5.02(a)(v) above.

         (d) Amounts distributed to the Residual Certificates pursuant to
subparagraph (a)(vi) of this Section 5.02 on any Distribution Date shall be
allocated among the REMIC residual interests represented thereby such that each
such interest is allocated the excess of funds available to the related REMIC
over required distributions to the regular interests in such REMIC on such
Distribution Date.

         (e) For purposes of distributions provided in paragraph (a) of this
Section 5.02, each Mortgage Pool shall "relate" to the Senior Class or Classes
of the applicable Related Certificate Group.

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         (f) For purposes of distributions of interest in paragraph (a) of this
Section 5.02 such distributions to a Class of Certificates on any Distribution
Date shall be made first, in respect of Current Interest; and second, in respect
of Interest Shortfalls.

         (g) Notwithstanding the priority of distributions set forth in
paragraph (a) of this Section 5.02, if on any Distribution Date prior to the
Credit Support Depletion (1) either one of the Rapid Prepayment Conditions is
satisfied on such date and (2) the Certificate Principal Amount of the Senior
Certificates relating to three of the Mortgage Pools have been reduced to zero,
then that portion of the Available Distribution Amount for such Mortgage Pools
described in Section 5.02(a)(ii) that represents principal collections on the
Mortgage Loans shall be applied as an additional distribution to the remaining
Classes of Senior Certificates in reduction of, and in proportion to, the Class
Principal Amounts thereof; provided, however, that (x) any such amounts
distributable to the Class A-R and Class A-1 Certificates shall be distributed
sequentially thereto in such order and (y) any such amounts distributable to the
Class A-4A and Class A-4B Certificates shall be distributed sequentially thereto
in such order.

         (h) If, on any Distribution Date, any Certificate Group or Groups would
constitute an Undercollateralized Group and the other Certificate Group or
Groups constitute an Overcollateralized Group, then notwithstanding Section
5.02(a)(ii), the Available Distribution Amount for the Overcollateralized Group
or Groups, to the extent remaining following distributions of interest and
principal to the related Senior Certificates of that Certificate Group or Groups
and to the related Components of the Class X-A-1 and Class X-A-2 Certificates,
if any, related to the Undercollateralized Group or Groups, shall be distributed
up to the sum of the Interest Transfer Amount and the Principal Transfer Amount
for the Undercollateralized Group or Groups to the Senior Certificates related
to the Undercollateralized Group or Groups and to the Components of the Class
X-A-1 and Class X-A-2 Certificates related to the Undercollateralized Group or
Groups in payment of accrued but unpaid interest, if any, and then to such
Senior Certificates as principal, in the same order and priority as such
Certificates would receive other distributions of principal.

         Section 5.03 Allocation of Losses.

         (a) On or prior to each Distribution Date, the Trustee shall aggregate
the information provided by the Servicer with respect to the total amount of
Realized Losses, with respect to the Mortgage Loans for the related Distribution
Date.

         (b) On each Distribution Date, the principal portion of Realized Losses
with respect to such Distribution Date shall be allocated as follows:

                  (i)      Realized Losses shall be allocated in the following
         order:

                           first, to the Classes of Subordinate Certificates in
                  reverse order of their respective numerical Class designations
                  (beginning with the Class of Subordinate Certificates with the
                  highest numerical Class designation) until the Class Principal
                  Amount of each such Class is reduced to zero; and

                           second, to each Class of Senior Certificates relating
                  to the Mortgage Pool which sustained such loss (allocated
                  among the related Senior Classes on a pro

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                  rata basis), in each case, until the Class Principal Amount of
                  each Class of Senior Certificates is reduced to zero;
                  provided, however, that any portion of any Realized Loss that
                  would otherwise be allocated to the Class A-4A Certificates in
                  accordance with this section will instead be allocated to the
                  Class A-4B Certificates until the Class Principal Amount
                  thereof has been reduced to zero.

                  (ii)     Reserved.

                  (iii)    The Class Principal Amount of the Class of
         Subordinate Certificates then outstanding with the highest numerical
         Class designation shall be reduced on each Distribution Date by the
         amount, if any, by which the aggregate of the Class Principal Amounts
         of all outstanding Classes of Certificates (after giving effect to the
         distribution of principal and the allocation of Realized Losses, on
         such Distribution Date) exceeds the Aggregate Stated Principal Balance
         for the following Distribution Date.

                  (iv)     Any allocation of a loss pursuant to this section to
         a Class of Certificates shall be achieved by reducing the Class
         Principal Amount thereof by the amount of such loss.

         (c) Notwithstanding the other provisions of Section 5.03, the first
$0.69 of Realized Losses shall not be allocated to any Class of Certificates.

         Section 5.04 Advances.

         If the Servicer fails to remit any Advance required to be made under
the Servicing Agreement, the Trustee solely in its capacity as successor
Servicer shall itself make, or shall cause the successor Servicer to make, such
Advance. If the Trustee solely in its capacity as successor Servicer determines
that an Advance is required, it shall on the Business Day preceding the related
Distribution Date immediately following such Determination Date remit from its
own funds (or funds advanced by the successor Servicer) for deposit in the
Distribution Account immediately available funds in an amount equal to such
Advance. Each of the Trustee and the Servicer shall be entitled to be reimbursed
for all Advances made by it, respectively. Notwithstanding anything to the
contrary herein, in the event the Trustee (or successor servicer) determines in
its reasonable judgment that an Advance is Nonrecoverable, the Trustee (or
successor servicer) shall be under no obligation to make such Advance.

         Section 5.05 [RESERVED].

         Section 5.06 [RESERVED].

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                                   ARTICLE VI

                    CONCERNING THE TRUSTEE; EVENTS OF DEFAULT

         Section 6.01 Duties of Trustee.

         (a) The Trustee, except during the continuance of an Event of Default,
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement. Any permissive right of the Trustee provided for in
this Agreement shall not be construed as a duty of the Trustee. If an Event of
Default has occurred and has not otherwise been cured or waived, the Trustee
shall exercise such of the rights and powers vested in it by this Agreement and
use the same degree of care and skill in their exercise as a prudent Person
would exercise or use under the circumstances in the conduct of such Person's
own affairs.

         (b) The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that the Trustee shall
not be responsible for the accuracy or content of any such resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Servicer to the Trustee pursuant to this Agreement or the
Servicing Agreement, and shall not be required to recalculate or verify any
numerical information furnished to the Trustee pursuant to this Agreement.
Subject to the immediately preceding sentence, if any such resolution,
certificate, statement, opinion, report, document, order or other instrument is
found not to conform to the form required by this Agreement in a material manner
the Trustee shall take such action as it deems appropriate to cause the
instrument to be corrected, and if the instrument is not corrected to the
Trustee's satisfaction, the Trustee will provide notice thereof to the
Certificateholders and will, at the expense of the Trust Fund, which expense
shall be reasonable given the scope and nature of the required action, take such
further action as directed by the Certificateholders.

         (c) The Trustee shall not have any liability arising out of or in
connection with this Agreement, except for its negligence or willful misconduct.
Notwithstanding anything in this Agreement to the contrary, the Trustee shall
not be liable for special, indirect or consequential losses or damages of any
kind whatsoever (including, but not limited to, lost profits). No provision of
this Agreement shall be construed to relieve the Trustee of liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct; provided, however, that:

                  (i)      The Trustee shall not be liable with respect to any
         action taken, suffered or omitted to be taken by it in good faith in
         accordance with the direction of Holders of Certificates as provided in
         Section 6.18 hereof;

                  (ii)     For all purposes under this Agreement, the Trustee
         shall not be deemed to have notice of any Event of Default (other than
         resulting from a failure by the Servicer (i) to remit funds (or to make
         Advances) or (ii) to furnish information to the Trustee when required
         to do so) unless a Responsible Officer of the Trustee has actual
         knowledge

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<PAGE>

         thereof or unless written notice of any event which is in fact such a
         default is received by the Trustee at the Corporate Trust Office of the
         Trustee, and such notice references the Holders of the Certificates and
         this Agreement;

                  (iii)    No provision of this Agreement shall require the
         Trustee to expend or risk its own funds or otherwise incur any
         financial liability in the performance of any of its duties hereunder,
         or in the exercise of any of its rights or powers, if it shall have
         reasonable grounds for believing that repayment of such funds or
         adequate indemnity against such risk or liability is not reasonably
         assured to it; and none of the provisions contained in this Agreement
         shall in any event require the Trustee to perform, or be responsible
         for the manner of performance of, any of the obligations of the
         Servicer under the Servicing Agreement;

                  (iv)     The Trustee shall not be responsible for any act or
         omission of the Servicer, the Depositor or the Seller.

         (d) The Trustee shall have no duty hereunder with respect to any
complaint, claim, demand, notice or other document it may receive or which may
be alleged to have been delivered to or served upon it by the parties as a
consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall promptly remit to the Servicer upon receipt any such
complaint, claim, demand, notice or other document (i) which is delivered to the
Corporate Trust Office of the Trustee, (ii) of which a Responsible Officer has
actual knowledge, and (iii) which contains information sufficient to permit the
Trustee to make a determination that the real property to which such document
relates is a Mortgaged Property.

         (e) The Trustee shall not be personally liable with respect to any
action taken, suffered or omitted to be taken by it in good faith in accordance
with the direction of the Certificateholders of any Class holding Certificates
which evidence, as to such Class, Percentage Interests aggregating not less than
25% as to the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred upon the
Trustee under this Agreement.

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

         (g) The Trustee shall not be held liable by reason of any insufficiency
in the Distribution Account resulting from any investment loss on any Permitted
Investment included therein (except to the extent that the Trustee is the
obligor and has defaulted thereon).

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         (h) Except as otherwise provided herein, the Trustee shall not have any
duty (A) to see to any recording, filing, or depositing of this Agreement or any
agreement referred to herein or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any
such recording or filing or depositing or to any re-recording, refiling or
redepositing of any thereof, (B) to see to the provision of any insurance, (C)
to see to the payment or discharge of any tax, assessment, or other governmental
charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Trust Fund other than from funds available in
the Distribution Account, or (D) to confirm or verify the contents of any
reports or certificates of the Servicer delivered to the Trustee pursuant to the
Servicing Agreement believed by the Trustee to be genuine and to have been
signed or presented by the proper party or parties.

         (i) The Trustee shall not be liable in its individual capacity for an
error of judgment made in good faith by a Responsible Officer or other officers
of the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts.

         (j) Notwithstanding anything in this Agreement to the contrary, Trustee
shall not be liable for special, indirect or consequential losses or damages of
any kind whatsoever (including, but not limited to, lost profits), even if the
Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action.

         Section 6.02 Certain Matters Affecting the Trustee.

         Except as otherwise provided in Section 6.01:

                  (i)      The Trustee may request, and may rely and shall be
         protected in acting or refraining from acting upon any resolution,
         Officer's Certificate, certificate of auditors or any other
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, approval, bond or other paper or document believed by
         it to be genuine and to have been signed or presented by the proper
         party or parties;

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

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

                  (iv)     Unless an Event of Default shall have occurred and be
         continuing, the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, approval, bond or other paper or document (provided the same
         appears regular on its face), unless requested in writing to do so by
         the Holders of at least a majority in Class Principal Amount (or
         Percentage Interest) of each Class of Certificates; provided, however,
         that, if the payment within a reasonable time to the Trustee of the
         costs, expenses or liabilities likely to be incurred by it in the
         making of such investigation is, in

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<PAGE>

         the opinion of the Trustee, not reasonably assured to the Trustee by
         the security afforded to it by the terms of this Agreement, the Trustee
         may require reasonable indemnity against such expense or liability or
         payment of such estimated expenses from the Certificateholders as a
         condition to proceeding. The reasonable expense thereof shall be paid
         by the party requesting such investigation and if not reimbursed by the
         requesting party shall be reimbursed to the Trustee by the Trust Fund;

                  (v)      The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents, custodians or attorneys, which agents, custodians or
         attorneys shall have any and all of the rights, powers, duties and
         obligations of the Trustee conferred on it by such appointment,
         provided that the Trustee shall continue to be responsible for its
         duties and obligations hereunder to the extent provided herein, and
         provided further that the Trustee shall not be responsible for any
         misconduct or negligence on the part of any such agent or attorney
         appointed with due care by the Trustee;

                  (vi)     The Trustee shall not be under any obligation to
         exercise any of the trusts or powers vested in it by this Agreement or
         to institute, conduct or defend any litigation hereunder or in relation
         hereto, in each case at the request, order or direction of any of the
         Certificateholders pursuant to the provisions of this Agreement, unless
         such Certificateholders shall have offered to the Trustee reasonable
         security or indemnity against the costs, expenses and liabilities which
         may be incurred therein or thereby;

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

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

         Section 6.03 Trustee Not Liable for Certificates.

         The Trustee make no representations as to the validity or sufficiency
of this Agreement or of the Certificates (other than the certificate of
authentication on the Certificates) or of any Mortgage Loan, or related document
save that the Trustee represents that, assuming due execution and delivery by
the other parties hereto, this Agreement has been duly authorized, executed and
delivered by it and constitutes its valid and binding obligation, enforceable
against it in accordance with its terms except as such enforceability may be
subject to (A) applicable bankruptcy and insolvency laws and other similar laws
affecting the enforcement of the rights of creditors generally, and (B) general
principles of equity regardless of whether such enforcement is considered in a
proceeding in equity or at law. The Trustee shall not be accountable for the use
or application by the Depositor of funds paid to the Depositor in consideration
of the assignment of the Mortgage Loans to the Trust Fund by the Depositor or
for the use or application of any funds deposited into the Distribution Account
or any other fund or account maintained with respect to the Certificates. The
Trustee shall not be responsible for the legality or validity of this Agreement
or the validity, priority, perfection or sufficiency of the security for the
Certificates issued or intended to be issued hereunder. Except as otherwise
provided herein,

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the Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to record this Agreement.

         Section 6.04 Trustee May Own Certificates.

         The Trustee and any Affiliate or agent of the Trustee in its individual
or any other capacity may become the owner or pledgee of Certificates and may
transact banking and trust business with the other parties hereto and their
Affiliates with the same rights it would have if it were not Trustee or such
agent.

         Section 6.05 Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times (i) be an institution insured
by the FDIC, (ii) a corporation or national banking association, organized and
doing business under the laws of the United States of America or any state
thereof, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by federal or state authority and (iii) not be an
Affiliate of the Servicer. If such corporation or national banking association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then, for the
purposes of this Section, the combined capital and surplus of such corporation
or national banking association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 6.06.

         Section 6.06 Resignation and Removal of Trustee.

         (a) The Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Depositor and the
Servicer. Upon receiving such notice of resignation, the Depositor will promptly
appoint a successor trustee by written instrument, one copy of which instrument
shall be delivered to the resigning Trustee, one copy to the successor trustee
and one copy to the Servicer. If no successor trustee shall have been so
appointed and shall have accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee.

         (b) If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 6.05 and shall fail to resign after
written request therefor by the Depositor, (ii) the Trustee shall become
incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver
of the Trustee of its property shall be appointed, or any public officer shall
take charge or control of the Trustee or of either of their property or affairs
for the purpose of rehabilitation, conservation or liquidation, (iii) a tax is
imposed or threatened with respect to the Trust Fund by any state in which the
Trustee or the Trust Fund held by the Trustee is located, or (iv) the continued
use of the Trustee would result in a downgrading of the rating by any Rating
Agency of any Class of Certificates with a rating, then the Depositor shall
remove the Trustee and the Depositor shall appoint a successor trustee by
written instrument, one copy of which instrument

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shall be delivered to the Trustee so removed, one copy each to the successor
trustee and one copy to the Servicer.

         (c) The Holders of more than 50% of the Class Principal Amount (or
Percentage Interest) of each Class of Certificates may at any time upon 30 days'
written notice to the Trustee and to the Depositor remove the Trustee by such
written instrument, signed by such Holders or their attorney-in-fact duly
authorized, one copy of which instrument shall be delivered to the Depositor and
one copy to the Trustee; the Depositor shall thereupon appoint a successor
trustee in accordance with this Section.

         (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance by the successor trustee of appointment, as provided
in Section 6.07.

         Section 6.07 Successor Trustee.

         (a) Any successor trustee appointed as provided in Section 6.06 shall
execute, acknowledge and deliver to the Depositor and to its predecessor
trustee, an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee. The
predecessor trustee shall deliver to the successor trustee all Trustee Mortgage
Files and documents and statements related to each Trustee Mortgage File held by
it hereunder, and shall duly assign, transfer, deliver and pay over to the
successor trustee the entire Trust Fund, together with all necessary instruments
of transfer and assignment or other documents properly executed necessary to
effect such transfer and such of the records or copies thereof maintained by the
predecessor trustee in the administration hereof as may be requested by the
successor trustee and shall thereupon be discharged from all duties and
responsibilities under this Agreement. In addition, the Depositor and the
predecessor trustee shall execute and deliver such other instruments and do such
other things as may reasonably be required to more fully and certainly vest and
confirm in the successor trustee all such rights, powers, duties and
obligations.

         (b) No successor trustee shall accept appointment as provided in this
Section unless at the time of such appointment such successor trustee shall be
eligible under the provisions of Section 6.05.

         (c) Upon acceptance by a successor trustee of appointment as provided
in this Section, the predecessor trustee shall mail notice of the succession of
such successor trustee hereunder to all Holders of Certificates at their
addresses as shown in the Certificate Register and to any Rating Agency. The
expenses of such mailing shall be borne by the Depositor.

         Section 6.08 Merger or Consolidation of Trustee.

         Any Person into which the Trustee may be merged or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Persons succeeding
to the business of the Trustee shall be the successor to the Trustee hereunder,
without the execution or filing of any paper or any further act on the part of

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any of the parties hereto, anything herein to the contrary notwithstanding,
provided that, in the case of the Trustee, such Person shall be eligible under
the provisions of Section 6.05.

         Section 6.09 Appointment of Co-Trustee, Separate Trustee or Custodian.

         (a) Notwithstanding any other provisions hereof, at any time, the
Trustee, the Depositor or the Certificateholders evidencing more than 50% of the
Class Principal Amount (or Percentage Interest) of every Class of Certificates
shall have the power from time to time to appoint one or more Persons, approved
by the Trustee, to act either as co-trustees jointly with the Trustee, or as
separate trustees, or as custodians, for the purpose of holding title to,
foreclosing or otherwise taking action with respect to any Mortgage Loan outside
the state where the Trustee has its principal place of business where such
separate trustee or co-trustee is necessary or advisable (or the Trustee has
been advised by the Servicer that such separate trustee or co-trustee is
necessary or advisable) under the laws of any state in which a property securing
a Mortgage Loan is located or for the purpose of otherwise conforming to any
legal requirement, restriction or condition in any state in which a property
securing a Mortgage Loan is located or in any state in which any portion of the
Trust Fund is located. The separate trustees, co-trustees, or custodians so
appointed shall be trustees or custodians for the benefit of all the
Certificateholders and shall have such powers, rights and remedies as shall be
specified in the instrument of appointment; provided, however, that no such
appointment shall, or shall be deemed to, constitute the appointee an agent of
the Trustee. The obligation of the Trustee to make Advances pursuant to Section
5.04 hereof shall not be affected or assigned by the appointment of a
co-trustee.

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

                  (i)      all powers, duties, obligations and rights conferred
         upon the Trustee in respect of the receipt, custody and payment of
         moneys shall be exercised solely by the Trustee;

                  (ii)     all other rights, powers, duties and obligations
         conferred or imposed upon the Trustee shall be conferred or imposed
         upon and exercised or performed by the Trustee and such separate
         trustee, co-trustee, or custodian jointly, except to the extent that
         under any law of any jurisdiction in which any particular act or acts
         are to be performed the Trustee shall be incompetent or unqualified to
         perform such act or acts, in which event such rights, powers, duties
         and obligations, including the holding of title to the Trust Fund or
         any portion thereof in any such jurisdiction, shall be exercised and
         performed by such separate trustee, co-trustee, or custodian at the
         sole discretion of the Trustee;

                  (iii)    no trustee or custodian hereunder shall be personally
         liable by reason of any act or omission of any other trustee or
         custodian hereunder; and

                  (iv)     the Trustee may at any time, by an instrument in
         writing executed by it, with the concurrence of the Depositor, accept
         the resignation of or remove any separate

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         trustee, co-trustee or custodian, so appointed by it or them, if such
         resignation or removal does not violate the other terms of this
         Agreement.

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

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

         (e) No separate trustee, co-trustee or custodian hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.05 hereunder and no notice to Certificateholders of the appointment shall be
required under Section 6.07 hereof.

         (f) The Trustee agrees to instruct the co-trustees, if any, to the
extent necessary to fulfill the Trustee's obligations hereunder.

         (g) The Trust shall pay the reasonable compensation of the co-trustees
(which compensation shall not reduce any compensation payable to the Trustee
under such Section).

         Section 6.10 Authenticating Agents.

         (a) The Trustee may appoint one or more Authenticating Agents which
shall be authorized to act on behalf of the Trustee in authenticating
Certificates. If such an agent is so appointed by the Trustee, wherever
reference is made in this Agreement to the authentication of Certificates by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication on behalf of the Trustee by an Authenticating
Agent and a certificate of authentication executed on behalf of the Trustee by
an Authenticating Agent. Each Authenticating Agent must be a corporation
organized and doing business under the laws of the United States of America or
of any state, having a combined capital and surplus of at least $15,000,000,
authorized under such laws to do a trust business and subject to supervision or
examination by federal or state authorities.

         (b) Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the

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Authenticating Agent without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.

         (c) Any Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and the Depositor.
The Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.10, the Trustee may appoint a
successor authenticating agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor authenticating agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor authenticating agent
shall be appointed unless eligible under the provisions of this Section 6.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

         Section 6.11 Indemnification of Trustee.

         The Trustee and its respective directors, officers, employees and
agents shall be entitled to indemnification from the Depositor and the Trust
Fund; provided that the Trust Fund's indemnification under this Section 6.11 is
limited by Section 4.01(d) for any loss, liability or expense (including,
without limitation, reasonable attorneys' fees and disbursements (and, in
connection with any custody agreement the Trustee may enter pursuant to this
Agreement, including the reasonable compensation and the expenses and
disbursements of its agents or counsel), incurred without negligence or willful
misconduct on its part, arising out of, or in connection with, the acceptance or
administration of the trusts created hereunder or in connection with the
performance of their duties hereunder including the costs and expenses of
defending themselves against any claim in connection with the exercise or
performance of any of their powers or duties hereunder, provided that:

                  (i)      with respect to any such claim, the Trustee shall
         have given the Depositor written notice thereof promptly after the
         Trustee shall have knowledge thereof;

                  (ii)     while maintaining control over its own defense, the
         Trustee shall cooperate and consult fully with the Depositor in
         preparing such defense;

                  (iii)    notwithstanding anything to the contrary in this
         Section 6.11, the Trust Fund shall not be liable for settlement of any
         such claim by the Trustee entered into without the prior consent of the
         Depositor, which consent shall not be unreasonably withheld; and

                  (iv)     the Trust's Fund's indemnification obligations
         hereunder shall be limited to losses, liability, costs or expenses,
         payments in respect of which by the Trust Fund would constitute
         "unanticipated expenses" within the meaning of Treasury Regulations
         Section 1.860G-1(b)(3)(ii)).

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         The provisions of this Section 6.11 shall survive any termination of
this Agreement and the resignation or removal of the Trustee and shall be
construed to include, but not be limited to, any loss, liability or expense
under any environmental law.

         Section 6.12 Fees and Expenses of the Trustee.

         As compensation for its services hereunder, the Trustee shall be
entitled to retain any and all investment earnings on amounts on deposit in the
Distribution Account pending the distribution of such funds to
Certificateholders on each Distribution Date (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust). Any expenses incurred by the Trustee shall be reimbursed in
accordance with Section 6.11.

         Section 6.13 Collection of Monies.

         Except as otherwise expressly provided in this Agreement, the Trustee
may demand payment or delivery of, and shall receive and collect, all money and
other property payable to or receivable by the Trustee pursuant to this
Agreement. The Trustee shall hold all such money and property received by it as
part of the Trust Fund and shall distribute it as provided in this Agreement.

         Section 6.14 Events of Default; Trustee To Act; Appointment of
Successor.

         (a) If an Event of Default described in the Servicing Agreement shall
occur and be continuing, then, in each and every case, subject to applicable
law, so long as any such Event of Default shall not have been remedied within
any period of time prescribed by the Servicing Agreement, the Trustee, by notice
in writing to the Servicer may, and shall, if so directed by Certificateholders
evidencing more than 50% of the Class Principal Amount (or Class Notional
Amount) of each Class of Certificates, terminate all of the rights and
obligations of the Servicer under the Servicing Agreement in accordance with the
terms of the Servicing Agreement. On or after the receipt by the Servicer of
such written notice, all authority and power of the Servicer, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee; and the Trustee is hereby authorized and empowered to execute and
deliver, on behalf of the defaulting Servicer as attorney-in-fact or otherwise,
any and all documents and other instruments, and to do or accomplish all other
acts or things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents or otherwise.

         If any Event of Default shall occur, the Trustee, upon becoming aware
of the occurrence thereof, shall promptly notify the Depositor and each Rating
Agency of the nature and extent of such Event of Default.

         (b) Within 90 days of the time the Servicer receives a notice of
termination from the Trustee pursuant to Section 6.14(a), the Trustee, unless
another Servicer shall have been appointed, shall be the successor in all
respects to the Servicer in its capacity as such under the Servicing Agreement
and the transactions set forth or provided for therein and shall have all the
rights and powers and be subject to all the responsibilities, duties and
liabilities relating thereto and arising thereafter placed on the Servicer
thereunder, including the obligation to make

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Advances; provided, however, that any failure to perform such duties or
responsibilities caused by the Servicer's failure to provide information
required by this Agreement or the Servicing Agreement shall not be considered a
default by the Trustee hereunder. In addition, the Trustee shall have no
responsibility for any act or omission of the Servicer prior to the issuance of
any notice of termination. The Trustee shall have no liability relating to any
representations and warranties of the Servicer set forth in the Servicing
Agreement. In the Trustee's capacity as such successor, the Trustee shall have
the same limitations on liability provided to the Servicer in the Servicing
Agreement. As compensation therefor, the Trustee shall be entitled to receive
all compensation payable to the Servicer under the Servicing Agreement.

         The Trustee shall be entitled to be reimbursed by the Depositor and the
Trust Fund (pursuant to Section 6.11 but without regard to any annual limitation
thereunder), in the event that the Servicer does not reimburse the Trustee under
the Servicing Agreement, for all costs associated with the transfer of servicing
from the predecessor Servicer, including, without limitation, any costs or
expenses associated with the termination of the predecessor Servicer, the
appointment of a successor servicer, the complete transfer of all servicing data
and the completion, correction or manipulation of such servicing data as may be
required by the Trustee or any successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans property and effectively (such
costs, "Servicing Transfer Costs").

         (c) Notwithstanding the above, the Trustee may, if it shall be
unwilling to continue to so act, or shall, if it is unable to so act, petition a
court of competent jurisdiction to appoint, or, with the consent of the
Depositor, appoint on its own behalf any established housing and home finance
institution servicer, or servicing or mortgage servicing institution having a
net worth of not less than $15,000,000 and meeting such other standards for a
successor servicer as are set forth in the Servicing Agreement and reasonably
satisfactory to the Depositor, as the successor to the Servicer in the
assumption of all of the responsibilities, duties or liabilities of a servicer,
like the Servicer. Any entity designated by the Trustee as a successor servicer
may be an Affiliate of the Trustee; provided, however, that, unless such
Affiliate meets the net worth requirements and other standards set forth herein
for a successor servicer, the Trustee, in its individual capacity shall agree,
at the time of such designation, to be and remain liable to the Trust Fund for
such Affiliate's actions and omissions in performing its duties under the
Servicing Agreement. In connection with such appointment and assumption, the
Trustee may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted to the
Servicer under the Servicing Agreement. The Trustee and such successor shall
take such actions, consistent with this Agreement and the Servicing Agreement,
as shall be necessary to effectuate any such succession and may make other
arrangements with respect to the servicing to be conducted hereunder which are
not inconsistent herewith and therewith. Neither the Trustee nor any other
successor servicer shall be deemed to be in default hereunder by reason of any
failure to make, or any delay in making, any distribution hereunder or any
portion thereof caused by (i) the failure of the Servicer to deliver, or any
delay in delivering, cash, documents or records to it, (ii) the failure of the
Servicer to cooperate as required by the Servicing Agreement, (iii) the failure
of the Servicer to deliver the Mortgage Loan data to the Trustee as required by
the Servicing Agreement or (iv) restrictions imposed by any regulatory authority
having jurisdiction over the Servicer.

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         Section 6.15 Additional Remedies of Trustee Upon Event of Default.

         During the continuance of any Event of Default, so long as such Event
of Default shall not have been remedied, the Trustee, in addition to the rights
specified in Section 6.14, shall have the right, in its own name and as trustee
of the Trust Fund, to take all actions now or hereafter existing at law, in
equity or by statute to enforce its rights and remedies and to protect the
interests, and enforce the rights and remedies, of the Certificateholders
(including the institution and prosecution of all judicial, administrative and
other proceedings and the filings of proofs of claim and debt in connection
therewith). Except as otherwise expressly provided in this Agreement, no remedy
provided for by this Agreement or the Servicing Agreement shall be exclusive of
any other remedy, and each and every remedy shall be cumulative and in addition
to any other remedy, and no delay or omission to exercise any right or remedy
shall impair any such right or remedy or shall be deemed to be a waiver of any
Event of Default.

         Section 6.16 Waiver of Defaults.

         More than 50% of the Aggregate Voting Interests of Certificateholders
may waive any default or Event of Default by the Servicer in the performance of
its obligations hereunder, except that a default in the making of any required
deposit to the Distribution Account that would result in a failure of the
Trustee to make any required payment of principal of or interest on the
Certificates may only be waived with the consent of 100% of the affected
Certificateholders. Upon any such waiver of a past default, such default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent thereon
except to the extent expressly so waived.

         Section 6.17 Notification to Holders.

         Upon termination of the Servicer or appointment of a successor to the
Servicer, in each case as provided herein, the Trustee shall promptly mail
notice thereof by first class mail to the Certificateholders at their respective
addresses appearing on the Certificate Register. The Trustee shall also, within
45 days after the occurrence of any Event of Default known to the Trustee, give
written notice thereof to the Certificateholders, unless such Event of Default
shall have been cured or waived prior to the issuance of such notice and within
such 45-day period.

         Section 6.18 Directions by Certificateholders and Duties of Trustee
During Event of Default.

         Subject to the provisions of Section 8.01 hereof, during the
continuance of any Event of Default, Holders of Certificates evidencing not less
than 25% of the Class Principal Amount (or Percentage Interest) of each Class of
Certificates affected thereby may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Agreement or the
Servicing Agreement; provided, however, that the Trustee shall be under no
obligation to pursue any such remedy, or to exercise any of the trusts or powers
vested in it by this Agreement or the Servicing Agreement (including, without
limitation, (i) the conducting or defending of any administrative action or
litigation hereunder or in relation hereto and (ii) the terminating of the
Servicer or any

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successor servicer from its rights and duties as servicer) at the request, order
or direction of any of the Certificateholders, unless such Certificateholders
shall have offered to the Trustee reasonable security or indemnity against the
cost, expenses and liabilities which may be incurred therein or thereby; and,
provided further, that, subject to the provisions of Section 8.01, the Trustee
shall have the right to decline to follow any such direction if the Trustee, in
accordance with an Opinion of Counsel, determines that the action or proceeding
so directed may not lawfully be taken or if the Trustee in good faith determines
that the action or proceeding so directed would involve it in personal liability
for which it is not indemnified to its satisfaction or be unjustly prejudicial
to the non-assenting Certificateholders.

         Section 6.19 Preparation of Tax Returns and Other Reports.

         (a) The Trustee shall prepare or cause to be prepared on behalf of the
Trust Fund, based upon information calculated in accordance with this Agreement
pursuant to instructions given by the Depositor, and the Trustee shall file
federal tax returns, all in accordance with Article X hereof. The Trustee shall
prepare and file such state income tax returns and such other returns as may be
required by applicable law relating to the Trust Fund, and, if required by state
law, and shall file any other documents to the extent required by applicable
state tax law (to the extent such documents are in the Trustee's possession).
The Trustee shall forward copies to the Depositor of all such returns and Form
1099 supplemental tax information and such other information within the control
of the Trustee as the Depositor may reasonably request in writing, and shall
distribute to each Certificateholder such forms and furnish such information
within the control of the Trustee as are required by the Code and the REMIC
Provisions to be furnished to them, and will prepare and distribute to
Certificateholders Form 1099 (supplemental tax information) (or otherwise
furnish information within the control of the Trustee) to the extent required by
applicable law.

         (b) The Trustee shall prepare and file with the Internal Revenue
Service ("IRS"), on behalf of each of REMIC 1, REMIC 2, REMIC 3, REMIC 4 and the
Upper Tier REMIC, an application on IRS Form SS-4 or shall obtain a Taxpayer
Identification Number for each of REMIC 1, REMIC 2, REMIC 3, REMIC 4 and the
Upper Tier REMIC using another reasonable method. If the application is filed on
Form SS-4, the Trustee, upon receipt from the IRS of the Notice of Taxpayer
Identification Number Assigned for each REMIC, shall promptly forward copies of
such notices to the Depositor, upon request. The Trustee will file an IRS Form
8811.

         (c) The Depositor shall prepare or cause to be prepared the initial
current report on Form 8-K. Thereafter, within 15 days after each Distribution
Date, the Trustee shall, in accordance with industry standards, file with the
Securities and Exchange Commission (the "Commission") via the Electronic Data
Gathering and Retrieval System (EDGAR), a Form 8-K with a copy of the statement
to the Certificateholders for such Distribution Date as an exhibit thereto.
Prior to January 31, 2004, the Trustee shall, in accordance with industry
standards, file a Form 15 Suspension Notification with respect to the Trust
Fund, if applicable. Prior to March 31, 2004, the Trustee shall file a Form 10-K
executed by the Depositor, in substance conforming to industry standards, with
respect to the Trust Fund. The Depositor shall be responsible for preparing all
filings and certificates required by the Sarbanes-Oxley Act of 2002. The Trustee
agrees to promptly furnish to the Depositor, from time to time upon request,
such further information, reports, and financial statements within its control
related to this Agreement and the

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Mortgage Loans as the Depositor reasonably deems appropriate to prepare and file
all necessary reports with the Commission.

         Section 6.20 Annual Certificate by Trustee.

         (a) By March 15th of each year for which a Form 10-K is to be filed
with a certification by the Depositor, an officer of the Trustee shall execute
and deliver an Officer's Certificate, signed by the senior officer in charge of
the Trustee or any officer to whom that officer reports, to the Depositor for
the benefit of such Depositor and its officers, directors and affiliates,
certifying as to the matters described in the Officer's Certificate attached
hereto as Exhibit P.

         (b) The Trustee shall indemnify and hold harmless the Depositor and its
officers, directors, agents and affiliates from and against any losses, damages,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments and other costs and expenses arising out of or based upon a breach by
the Trustee or any of its officers, directors, agents or affiliates of its
obligations under this Section 6.20 any material misstatement or omission in the
Officer's Certificate required under this Section or the negligence, bad faith
or willful misconduct of the Trustee in connection therewith. If the
indemnification provided for herein is unavailable or insufficient to hold
harmless the Depositor, then the Trustee agrees that it shall contribute to the
amount paid or payable by the Depositor as a result of the losses, claims,
damages or liabilities of the Depositor in such proportion as is appropriate to
reflect the relative fault of the Trustee on the one had and the Depositor on
the other in connection with a breach of the Trustee's obligations under this
Section 6.20, any material misstatement or omission in the Officer's Certificate
required under this Section or the Trustee's negligence, bad faith or willful
misconduct in connection therewith.

                                  ARTICLE VII

                         PURCHASE OF MORTGAGE LOANS AND
                          TERMINATION OF THE TRUST FUND

         Section 7.01 Purchase of Mortgage Loans; Termination of Trust Fund Upon
Purchase or Liquidation of All Mortgage Loans.

         (a) The respective obligations and responsibilities of the Trustee
created hereby (other than the obligation of the Trustee to make payments to
Certificateholders as set forth in Section 7.02), shall terminate on the
earliest of (i) the final payment or other liquidation of the last Mortgage Loan
remaining in the Trust Fund and the disposition of all REO Property, (ii) the
sale of the property held by the Trust Fund at auction in accordance with
Section 7.01(c) and (iii) the Latest Possible Maturity Date; provided, however,
that in no event shall the Trust Fund created hereby continue beyond the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof. Any termination of the Trust Fund shall be
carried out in such a manner so that the termination of each REMIC included
therein shall qualify as a "qualified liquidation" under the REMIC Provisions.

         (b) [Reserved]

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         (c) Any termination of the Trust Fund pursuant to clause (a)(ii) above
shall be effected by the auction by the Trustee of all of the Mortgage Loans and
REO Properties via a solicitation of bids in accordance with procedures to be
agreed upon by the Trustee and the Depositor. The Trustee shall accept the
highest such bid, provided that such bid equals or exceeds the amount described
in the definition of "Optional Termination Price." Notwithstanding anything to
the contrary herein, the Optional Termination Price received by the Trustee
shall be deposited by the Trustee directly into the Certificate Account
immediately upon such termination.

         The right of the Trustee to conduct an auction pursuant to the
preceding paragraph shall be conditioned upon the aggregate outstanding Stated
Principal Balance of the Mortgage Loans, at the time of such auction,
aggregating ten (10) percent or less of the Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.

         (d) The Servicer and the Trustee shall be reimbursed from the Optional
Termination Price for any Advances, Servicer Advances, accrual and unpaid
Servicing Fees or other amounts with respect to the Mortgage Loans that are
reimbursable to such parties under this Agreement or the Servicing Agreement.

         Section 7.02 Procedure Upon Termination of Trust Fund.

         (a) Notice of any optional termination pursuant to the provisions of
Section 7.01(c) specifying the Distribution Date upon which the final
distribution shall be made or the Purchase Date, shall be given promptly by the
Trustee by first class mail to Certificateholders mailed no less than the first
day of the month in which the Distribution Date selected for purchase of the
Mortgage Loans occurs or upon (x) the sale of all of the property of the Trust
Fund by the Trustee or in the case of a sale of assets of the Trust Fund, or (y)
upon the final payment or other liquidation of the last Mortgage Loan or REO
Property in the Trust Fund. Such notice shall specify (A) the Purchase Date and
the Distribution Date upon which final distribution on the Certificates of all
amounts required to be distributed to Certificateholders pursuant to Section
5.02 will be made upon presentation and surrender of the Certificates at the
Certificate Registrar's Corporate Trust Office, and (B) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distribution
being made only upon presentation and surrender of the Certificates at the
office or agency of the Trustee therein specified. The Trustee shall give such
notice to the Certificate Registrar at the time such notice is given to Holders
of the Certificates. Upon any such termination, the duties of the Trustee and
the Certificate Registrar with respect to the Certificates shall terminate and
the Trustee shall terminate the Distribution Account and any other account or
fund maintained with respect to the Certificates, subject to the Trustee's
obligation hereunder to hold all amounts payable to Certificateholders in trust
without interest pending such payment.

         (b) In the event that all of the Holders do not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee may take appropriate steps to contact
the remaining Certificateholders concerning surrender of such Certificates, and
the cost thereof shall be paid out of the amounts distributable

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to such Holders. If within two years after the second notice any Certificates
shall not have been surrendered for cancellation, the Trustee shall, subject to
applicable state law relating to escheatment, hold all amounts distributable to
such Holders for the benefit of such Holders. No interest shall accrue on any
amount held by the Trustee and not distributed to a Certificateholder due to
such Certificateholder's failure to surrender its Certificate(s) for payment of
the final distribution thereon in accordance with this Section.

         (c) Any reasonable expenses incurred by the Trustee, to the extent that
such expenses, if paid or reimbursed by the Trust Fund, would constitute
"unanticipated expenses" within the meaning of Treasury Regulations Section
1.860G-1(b)(3)(ii), in connection with any redemption or termination or
liquidation of the Trust Fund shall be reimbursed from proceeds received from
the liquidation of the Trust Fund.

         Section 7.03 Additional Trust Fund Termination Requirements.

         (a) Any termination of the Trust Fund shall be effected in accordance
with the following additional requirements, unless the Trustee seeks (at the
request of the party exercising the option) to (i) redeem all of the
Certificates pursuant to Section 7.01(b) or (ii) purchase all of the Mortgage
Loans pursuant to Section 7.01(c) and subsequently receives an Opinion of
Counsel (at the expense of such requesting party), addressed to the Trustee, to
the effect that the failure of the Trust Fund to comply with the requirements of
this Section 7.03 will not (I) result in the imposition of taxes on any REMIC
under the REMIC Provisions or (II) cause any REMIC established hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding:

                  (i)      Within 89 days prior to the time of the making of the
         final payment on the Certificates, upon notification by the Depositor
         that it intends to exercise its option to cause the termination of the
         Trust Fund, the Trustee shall adopt a plan of complete liquidation
         prepared by the Depositor of the Trust Fund on behalf of each REMIC,
         meeting the requirements of a qualified liquidation under the REMIC
         Provisions;

                  (ii)     Any sale of the assets of the Trust Fund pursuant to
         Section 7.02 shall be a sale for cash and shall occur at or after the
         time of adoption of such a plan of complete liquidation and prior to
         the time of making of the final payment on the Certificates;

                  (iii)    On the date specified for final payment of the
         Certificates, the Trustee shall make final distributions of principal
         and interest on the Certificates in accordance with Section 5.02 and,
         after payment of, or provision for any outstanding expenses, distribute
         or credit, or cause to be distributed or credited, to the Holders of
         the Residual Certificates all cash on hand after such final payment
         (other than cash retained to meet claims), and the Trust Fund (and each
         REMIC) shall terminate at that time; and

                  (iv)     In no event may the final payment on the Certificates
         or the final distribution or credit to the Holders of the Residual
         Certificates be made after the 89th day from the date on which the plan
         of complete liquidation is adopted.

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         (b) By its acceptance of a Residual Certificate, each Holder thereof
hereby agrees to accept the plan of complete liquidation adopted by the Trustee
under this Section and to take such other action in connection therewith as may
be reasonably requested by the Trustee.

         Section 7.04 [RESERVED].

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                                  ARTICLE VIII

                          RIGHTS OF CERTIFICATEHOLDERS

         Section 8.01 Limitation on Rights of Holders.

         (a) The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or this Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or
take any action or proceeding in any court for a partition or winding up of this
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them. Except as otherwise expressly provided herein, no
Certificateholder, solely by virtue of its status as a Certificateholder, shall
have any right to vote or in any manner otherwise control the Trustee or the
operation and management of the Trust Fund, or the obligations of the parties
hereto, nor shall anything herein set forth, or contained in the terms of the
Certificates, be construed so as to constitute the Certificateholders from time
to time as partners or members of an association, nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

         (b) No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing itself of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon, under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless
also the Holders of Certificates evidencing not less than 25% of the Class
Principal Amount or Class Notional Amount (or Percentage Interest) of
Certificates of each Class affected thereby shall have made written request upon
the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the cost, expenses and liabilities to be
incurred therein or thereby, and the Trustee, for sixty days after its receipt
of such notice, request and offer of indemnity, shall have neglected or refused
to institute any such action, suit or proceeding and no direction inconsistent
with such written request has been given such Trustee during such sixty-day
period by such Certificateholders; it being understood and intended, and being
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of Certificates
shall have any right in any manner whatever by virtue or by availing itself of
any provision of this Agreement to affect, disturb or prejudice the rights of
the Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the benefit
of all Certificateholders. For the protection and enforcement of the provisions
of this Section, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

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         Section 8.02 Access to List of Holders.

         (a) If the Trustee is not acting as Certificate Registrar, the
Certificate Registrar will furnish or cause to be furnished to the Trustee,
within fifteen days after receipt by the Certificate Registrar of a request by
the Trustee in writing, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Certificateholders of each Class as
of the most recent Record Date.

         (b) If three or more Holders or Certificate Owners (hereinafter
referred to as "Applicants") apply in writing to the Trustee, and such
application states that the Applicants desire to communicate with other Holders
with respect to their rights under this Agreement or under the Certificates and
is accompanied by a copy of the communication which such Applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, afford such Applicants reasonable access during the normal
business hours of the Trustee to the most recent list of Certificateholders held
by the Trustee or shall, as an alternative, send, at the Applicants' expense,
the written communication proffered by the Applicants to all Certificateholders
at their addresses as they appear in the Certificate Register.

         (c) Every Holder or Certificate Owner, if the Holder is a Clearing
Agency, by receiving and holding a Certificate, agrees with the Depositor, the
Certificate Registrar and the Trustee that neither the Depositor, the
Certificate Registrar nor the Trustee shall be held accountable by reason of the
disclosure of any information as to the names and addresses of the
Certificateholders hereunder, regardless of the source from which such
information was derived.

         Section 8.03 Acts of Holders of Certificates.

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

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments or deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by an officer of a corporation or a member of a partnership on
behalf of such corporation or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the individual
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

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         (c) The ownership of Certificates (whether or not such Certificates
shall be overdue and notwithstanding any notation of ownership or other writing
thereon made by anyone other than the Trustee) shall be proved by the
Certificate Register, and neither the Trustee nor the Depositor shall be
affected by any notice to the contrary.

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

                                   ARTICLE IX

                                   [RESERVED]

                                   ARTICLE X

                              REMIC ADMINISTRATION

         Section 10.01 REMIC Administration.

         (a) REMIC elections as set forth in the Preliminary Statement shall be
made on Forms 1066 or other appropriate federal tax or information return for
the taxable year ending on the last day of the calendar year in which the
Certificates are issued. The regular interests and residual interest in each
REMIC shall be as designated in the Preliminary Statement and Section 1.01.

         (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC within the meaning of section 860G(a)(9) of the Code. The latest possible
maturity date for purposes of Treasury Regulation 1.860G-1(a)(4) will be the
Latest Possible Maturity Date.

         (c) The Trustee shall represent the Trust Fund in any administrative or
judicial proceeding relating to an examination or audit by any governmental
taxing authority with respect thereto. The Trustee shall pay any and all
tax-related expenses (not including taxes) of each REMIC, including but not
limited to any professional fees or expenses related to audits or any
administrative or judicial proceedings with respect to such REMIC that involve
the Internal Revenue Service or state tax authorities, but only to the extent
that (i) such expenses are ordinary or routine expenses, including expenses of a
routine audit but not expenses of litigation (except as described in (ii)); or
(ii) such expenses or liabilities (including taxes and penalties) are
attributable to the negligence or willful misconduct of the Trustee in
fulfilling its duties hereunder (including its duties as tax return preparer).
The Trustee shall be entitled to reimbursement of expenses to the extent
provided in clause (i) above from the Distribution Account, provided, however,
the Trustee shall not be entitled to reimbursement for expenses incurred in
connection with the preparation of tax returns and other reports as required by
Section 6.19 and this Section.

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         (d) The Trustee shall prepare, sign and file all of each REMIC's
federal and appropriate state tax and information returns as such REMIC's direct
representative. The expenses of preparing and filing such returns shall be borne
by the Trustee.

         (e) The Trustee or its designee shall perform on behalf of each REMIC
all reporting and other tax compliance duties that are the responsibility of
such REMIC under the Code, the REMIC Provisions, or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, if required by the Code, the REMIC Provisions, or other
such guidance, the Trustee shall provide, upon receipt of additional reasonable
compensation, to the Treasury or other governmental authority such information
as is necessary for the application of any tax relating to the transfer of a
Residual Certificate to any disqualified person or organization pursuant to
Treasury Regulation 1.860E-2(a)(5) and any person designated in Section
860E(e)(3) of the Code.

         (f) The Trustee and the Holders of Certificates shall take any action
or cause any REMIC to take any action necessary to create or maintain the status
of any REMIC as a REMIC under the REMIC Provisions and shall assist each other
as necessary to create or maintain such status. Neither the Trustee nor the
Holder of any Residual Certificate shall knowingly take any action, cause any
REMIC to take any action or fail to take (or fail to cause to be taken) any
action that, under the REMIC Provisions, if taken or not taken, as the case may
be, could (i) endanger the status of any REMIC as a REMIC or (ii) result in the
imposition of a tax upon any REMIC (including but not limited to the tax on
prohibited transactions as defined in Code Section 860F(a)(2) and the tax on
prohibited contributions set forth on Section 860G(d) of the Code) (either such
event, an "Adverse REMIC Event") unless the Trustee has received an Opinion of
Counsel (at the expense of the party seeking to take such action) to the effect
that the contemplated action will not endanger such status or result in the
imposition of such a tax. In addition, prior to taking any action with respect
to any REMIC or the assets therein, or causing any REMIC to take any action,
which is not expressly permitted under the terms of this Agreement, any Holder
of a Residual Certificate will consult with the Trustee, in writing, with
respect to whether such action could cause an Adverse REMIC Event to occur with
respect to any REMIC, and no such Person shall take any such action or cause any
REMIC to take any such action as to which the Trustee has advised it in writing
that an Adverse REMIC Event could occur; provided, however, that if no Adverse
REMIC Event would occur but such action could result in the imposition of
additional taxes on the Residual Certificateholders, no such Person shall take
any such action, or cause any REMIC to take any such action without the written
consent of the Residual Certificateholders.

         (g) Each Holder of a Residual Certificate shall pay when due any and
all taxes imposed on the related REMIC by federal or state governmental
authorities. To the extent that such taxes are not paid by a Residual
Certificateholder, the Trustee or the Paying Agent shall pay any remaining REMIC
taxes out of current or future amounts otherwise distributable to the Holder of
the Residual Certificate in any such REMIC or, if no such amounts are available,
out of other amounts held in the Collection Account, and shall reduce amounts
otherwise payable to holders of regular interests in any such REMIC, as the case
may be.

         (h) The Trustee shall, for federal income tax purposes, maintain books
and records with respect to each REMIC on a calendar year and on an accrual
basis.

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         (i) No additional contributions of assets shall be made to any REMIC,
except as expressly provided in this Agreement.

         (j) The Trustee shall not enter into any arrangement by which any REMIC
will receive a fee or other compensation for services.

         (k)

                  (i)      The Trustee shall treat the Class A-1 Certificates as
         representing ownership, through a grantor trust, of the Upper Tier
         REMIC Class A-1 Interest. The Trustee shall treat the rights of the
         Holders of the Class A-1 Certificates to receive distributions
         attributable to accruals of interest at rates in excess of the Pool 1
         Adjusted Net WAC, including all payments in respect of Basis Risk
         Shortfalls and Unpaid Basis Risk Shortfalls, as interests in interest
         rate cap contracts written by the Holders of each of the Class X-A-1
         and Class X-A-2 Certificates (as holders of interests in the Pool 1
         REMIC NAS Component or the Pool 1 REMIC Companion Component) in favor
         of the Holders of the Class A-1 Certificates. Amounts otherwise payable
         with respect to the Pool 1 REMIC Companion Component will be treated as
         used to make payments in respect of the interest rate cap contracts
         written in favor of the holders of the Class A-1 Certificates before
         amounts payable with respect to the Pool 1 REMIC NAS Component are so
         treated.

                  (ii)     The Trustee shall treat the Class A-2 Certificates as
         representing ownership, through a grantor trust, of the Upper Tier
         REMIC Class A-2 Interest. The Trustee shall treat the rights of the
         Holders of the Class A-2 Certificates to receive distributions
         attributable to accruals of interest at rates in excess of the Pool 2
         Adjusted Net WAC, including all payments in respect of Basis Risk
         Shortfalls and Unpaid Basis Risk Shortfalls, as interests in interest
         rate cap contracts written by the Holders of each of the Class X-A-1
         and Class X-A-2 Certificates (as holders of interests in the Pool 2
         REMIC NAS Component or the Pool 2 REMIC Companion Component) in favor
         of the Holders of the Class A-2 Certificates. Amounts otherwise payable
         with respect to the Pool 2 REMIC Companion Component will be treated as
         used to make payments in respect of the interest rate cap contracts
         written in favor of the holders of the Class A-2 Certificates before
         amounts payable with respect to the Pool 2 REMIC NAS Component are so
         treated.

                  (iii)    The Trustee shall treat the Class X-A-1 Certificates
         as representing, through separate grantor trusts, the Pool 1 REMIC NAS
         Component and the Pool 2 REMIC NAS Component. The Trustee shall treat
         the Class X-A-2 Certificates as representing, through separate grantor
         trusts, the Pool 1 REMIC Companion Component and the Pool 2 REMIC
         Companion Component. The Trustee will treat all amounts distributed in
         respect of the Pool 1 NAS Component that either (x) reverse the effect
         of the provisos of Section 5.02(a)(i) or 5.02(b) on the amount of prior
         distributions in respect of the Pool 1 NAS Component or (y) reverse the
         effect of the Current Interest Restriction as amounts paid under an
         interest rate cap agreement written by the holders of the Class X-A-2
         Certificates in favor of the holders of the Class X-A-1 Certificates.
         The Trustee will treat all amounts distributed in respect of the Pool 2
         NAS Component that

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         either (x) reverse the effect of the provisos of Section 5.02(a)(i) or
         5.02(b) on the amount of prior distributions in respect of the Pool 2
         NAS Component or (y) reverse the effect of the Current Interest
         Restriction as amounts paid under an interest rate cap agreement
         written by the holders of the Class X-A-2 Certificates in favor of the
         holders of the Class X-A-1 Certificates.

                  (iv)     The Trustee shall treat the Class B-2 Certificates as
         representing ownership, through a grantor trust, of the Upper Tier
         REMIC Class B-2 Interest. The Trustee shall treat the rights of the
         Holders of the Class B-2 Certificates to receive payments in respect of
         Basis Risk Shortfalls and Unpaid Basis Risk Shortfalls as interests in
         cap contracts written by the Holders of the Class X-B Certificate in
         favor of the Holders of the Class B-2 Certificates.

                  (v)      For purposes of determining the issue prices of the
         REMIC regular interests or portions thereof represented by the
         Certificates, the interest rate cap contracts described in this Section
         10.01(k) shall be assumed to have a zero value unless and until
         required otherwise by an applicable taxing authority.

                  (vi)     Each holder or beneficial owner of a Class A-1, Class
         A-2, Class X-A-1, Class X-A-2, Class X-B or Class B-2 Certificate
         agrees, by its acceptance of such Certificate or a beneficial interest
         therein, to treat, for tax purposes, such Certificate in a manner
         consistent with the treatment described in this Section 10.01(k). For
         information reporting purposes, the Trustee shall treat the rights of
         the holders of the Class A-1, Class A-2, Class X-A-1 and Class B-2
         Certificates to receive payments that are treated under this Section
         10.01(k) as payments on cap contracts or interest rate cap agreements
         as having nominal value.

                  (vii)    For federal income tax purposes, the Trustee shall
         treat distributions from the Trust Fund as occurring as required by the
         terms of the Upper Tier REMIC Interests, with any difference between
         such and actual distributions being treated as resulting from payments
         in respect of the interest rate cap agreements described in this
         Section 10.01(k).

         (l) The Class A-R Holder shall act as "tax matters person" with respect
to each REMIC and irrevocably appoints the Trustee to act as its agent in such
roles.

         (m) Neither the Trustee nor the Depositor, as assignees under the
Servicing Agreement, shall provide any consent pursuant to the Servicing
Agreement or knowingly take any action under such Servicing Agreement that would
conflict with or violate the provisions of this Article X.

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         Section 10.02 Prohibited Transactions and Activities.

         Neither the Depositor nor the Trustee shall sell, dispose of, or
substitute for any of the Mortgage Loans, except in a disposition pursuant to
(i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the Trust Fund,
(iii) the termination of each REMIC pursuant to Article VII of this Agreement,
(iv) a substitution pursuant to Article II of this Agreement or (v) a repurchase
of Mortgage Loans pursuant to Article II of this Agreement, nor acquire any
assets for any REMIC, nor sell or dispose of any investments in the Distribution
Account for gain, nor accept any contributions to any REMIC after the Closing
Date, unless it has received an Opinion of Counsel (at the expense of the party
causing such sale, disposition, or substitution) that such disposition,
acquisition, substitution, or acceptance will not (a) affect adversely the
status of any such REMIC as a REMIC or of the interests therein other than the
Residual Certificate as the regular interests therein, (b) affect the
distribution of interest or principal on the Certificates, (c) result in the
encumbrance of the assets transferred or assigned to the Trust Fund (except
pursuant to the provisions of this Agreement) or (d) cause any such REMIC to be
subject to any tax including a tax on prohibited transactions or prohibited
contributions pursuant to the REMIC Provisions.

         Section 10.03 Indemnification with Respect to Prohibited Transactions
or Loss of REMIC Status.

         In the event that a REMIC fails to qualify as a REMIC, loses its status
as a REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to the
negligent performance by the Trustee of its duties and obligations set forth
herein, the Trustee shall indemnify the Certificateholders of the related
Residual Certificate against any and all losses, claims, damages, liabilities or
expenses ("Losses") resulting from such negligence; provided, however, that the
Trustee shall not be liable for any such Losses attributable to the action or
inaction of the Depositor or the Holder of the Residual Certificate, nor for any
such Losses resulting from misinformation provided by any of the foregoing
parties on which the Trustee has relied. Notwithstanding the foregoing, however,
in no event shall the Trustee have any liability (1) for any action or omission
that is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, the Mortgage Loan
Purchase and Sale Agreement or the Servicing Agreement, (2) for any Losses other
than arising out of malfeasance, willful misconduct or negligent performance by
the Trustee with respect to its duties and obligations set forth herein, and (3)
for any special or consequential damages to Certificateholders of the related
Residual Certificate (in addition to payment of principal and interest on the
Certificates).

         Section 10.04 REO Property.

         (a) Notwithstanding any other provision of this Agreement, the Trustee
shall not, except to the extent provided in the Servicing Agreement, knowingly
permit any Servicer to rent, lease, or otherwise earn income on behalf of any
REMIC with respect to any REO Property which might cause such REO Property to
fail to qualify as "foreclosure property" within the meaning of section
860G(a)(8) of the Code or result in the receipt by any REMIC of any "income from
non-permitted assets" within the meaning of section 860F(a)(2) of the Code or
any "net income from foreclosure property" which is subject to tax under the
REMIC Provisions unless the Servicer has provided to the Trustee an Opinion of
Counsel concluding that, under the REMIC

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Provisions, such action would not adversely affect the status of any REMIC as a
REMIC and any income generated for any REMIC by the REO Property would not
result in the imposition of a tax upon such REMIC.

         (b) The Depositor shall cause the Servicer (to the extent provided in
the Servicing Agreement) to make reasonable efforts to sell any REO Property for
its fair market value. In any event, however, the Depositor shall, or shall
cause the Servicer (to the extent provided in the Servicing Agreement) to,
dispose of any REO Property within three years of its acquisition by the Trust
Fund unless the Depositor or the Servicer (on behalf of the Trust Fund) has
received a grant of extension from the Internal Revenue Service to the effect
that, under the REMIC Provisions and any relevant proposed legislation and under
applicable state law, the REMIC may hold REO Property for a longer period
without adversely affecting the REMIC status of such REMIC or causing the
imposition of a Federal or state tax upon such REMIC. If such an extension has
been received, then the Depositor, acting on behalf of the Trustee hereunder,
shall, or shall cause the Servicer to, continue to attempt to sell the REO
Property for its fair market value for such period longer than three years as
such extension permits (the "Extended Period"). If such an extension has not
been received and the Depositor or the Servicer, acting on behalf of the Trust
Fund hereunder, is unable to sell the REO Property within 33 months after its
acquisition by the Trust Fund or if such an extension, has been received and the
Depositor or the Servicer is unable to sell the REO Property within the period
ending three months before the close of the Extended Period, the Depositor shall
cause the Servicer, before the end of the three year period or the Extended
Period, as applicable, to (i) purchase such REO Property at a price equal to the
REO Property's fair market value or (ii) auction the REO Property to the highest
bidder (which may be the Servicer) in an auction reasonably designed to produce
a fair price prior to the expiration of the three-year period or the Extended
Period, as the case may be.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01 Binding Nature of Agreement; Assignment.

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

         Section 11.02 Entire Agreement.

         This Agreement contains the entire agreement and understanding among
the parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof.

         Section 11.03 Amendment.

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         (a) This Agreement may be amended from time to time by the Depositor
and the Trustee, without notice to or the consent of any of the Holders, (i) to
cure any ambiguity or mistake, (ii) to cause the provisions herein to conform to
or be consistent with or in furtherance of the statements made with respect to
the Certificates, the Trust Fund or this Agreement in any Offering Document, or
to correct or supplement any provision herein which may be inconsistent with any
other provisions herein or with the provisions of the Servicing Agreement, (iii)
to add any other provisions with respect to matters or questions arising under
this Agreement, (iv) to modify alter, amend, add to or rescind any of the terms
or provisions contained in this Agreement or (v) to add, delete, or amend any
provisions to the extent necessary or desirable to comply with any requirements
imposed by the Code and the REMIC Provisions. No such amendment effected
pursuant to the preceding sentence shall, as evidenced by an Opinion of Counsel,
adversely affect the status of any REMIC created pursuant to this Agreement, nor
shall such amendment effected pursuant to clauses (iii) or (iv) of such sentence
adversely affect in any material respect the interests of any Holder unless such
Holder has consented thereto. Prior to entering into any amendment without the
consent of Holders pursuant to this paragraph, the Trustee shall be provided
with an Opinion of Counsel (at the expense of the party requesting such
amendment) to the effect that such amendment is permitted under this Section.
Any such amendment shall be deemed not to adversely affect in any material
respect any Holder, if the Trustee receives written confirmation from each
Rating Agency that such amendment will not cause such Rating Agency to reduce
the then current rating assigned to the Certificates.

         (b) This Agreement may also be amended from time to time by the
Depositor and the Trustee, with the consent of the Holders of not less than
66-2/3% of the Class Principal Amount (or Percentage Interest) of each Class of
Certificates affected thereby for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holders; provided, however, that no
such amendment shall be made unless the Trustee receives an Opinion of Counsel,
at the expense of the party requesting the change, that such change will not
adversely affect the status of any REMIC as a REMIC or cause a tax to be imposed
on such REMIC; and provided further, that no such amendment may (i) reduce in
any manner the amount of, or delay the timing of, payments received on Mortgage
Loans which are required to be distributed on any Certificate, without the
consent of the Holder of such Certificate or (ii) reduce the aforesaid
percentages of Class Principal Amount or Class Notional Amount (or Percentage
Interest) of Certificates of each Class, the Holders of which are required to
consent to any such amendment without the consent of the Holders of 100% of the
Class Principal Amount or Class Notional Amount (or Percentage Interest) of each
Class of Certificates affected thereby. For purposes of this paragraph,
references to "Holder" or "Holders" shall be deemed to include, in the case of
any Class of Book-Entry Certificates, the related Certificate Owners.

         (c) Promptly after the execution of any such amendment, the Trustee
shall furnish written notification of the substance of such amendment to each
Holder, the Depositor and the Rating Agencies.

         (d) It shall not be necessary for the consent of Holders under this
Section 11.03 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing

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the authorization of the execution thereof by Holders shall be subject to such
reasonable regulations as the Trustee may prescribe.

         (e) Notwithstanding anything to the contrary in the Servicing
Agreement, the Trustee shall not consent to any amendment of the Servicing
Agreement except pursuant to the standards provided in this Section with respect
to amendment of this Agreement.

         (f) Neither the Seller not the Trustee shall consent to the assignment
by the Servicer of the Servicer's rights and obligations under the Servicing
Agreement without the prior written consent of the Depositor, which consent
shall not be unreasonably withheld.

         Section 11.04 Voting Rights.

         Except to the extent that the consent of all affected
Certificateholders is required pursuant to this Agreement, with respect to any
provision of this Agreement requiring the consent of Certificateholders
representing specified percentages of aggregate outstanding Certificate
Principal Amount or Class Notional Amount (or Percentage Interest), Certificates
owned by the Depositor, the Trustee, the Servicer or any Affiliates thereof are
not to be counted so long as such Certificates are owned by the Depositor, the
Trustee, the Servicer or any Affiliate thereof.

         Section 11.05 Provision of Information.

         (a) For so long as any of the Certificates of any Series or Class are
"restricted securities" within the meaning of Rule 144(a)(3) under the Act, each
of the Depositor and the Trustee agree to cooperate with each other to provide
to any Certificateholders and to any prospective purchaser of Certificates
designated by such holder, upon the request of such holder or prospective
purchaser, any information required to be provided to such holder or prospective
purchaser to satisfy the condition set forth in Rule 144A(d)(4) under the Act.
Any reasonable, out-of-pocket expenses incurred by the Trustee in providing such
information shall be reimbursed by the Depositor.

         (b) The Trustee shall provide to any person to whom a Prospectus was
delivered, upon the request of such person specifying the document or documents
requested, (i) a copy (excluding exhibits) of any report on Form 8-K or Form
10-K filed with the Securities and Exchange Commission pursuant to Section
9.23(b) and (ii) a copy of any other document incorporated by reference in the
Prospectus. Any reasonable out-of-pocket expenses incurred by the Trustee in
providing copies of such documents shall be reimbursed by the Depositor.

         (c) On each Distribution Date, the Trustee shall deliver or cause to be
delivered by first class mail or make available on its website to the Depositor,
a copy of the report delivered to Certificateholders pursuant to Section 4.02.

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         Section 11.06 Governing Law.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.

         Section 11.07 Notices.

         All requests, demands, notices, authorizations, directions, consents,
waivers and communications hereunder shall be in writing and shall be deemed to
have been duly given when received by (a) in the case of the Depositor, Merrill
Lynch Mortgage Investors, Inc., 250 Vesey Street, 4 World Financial Center, 10th
Floor, New York, New York, 10080, telecopy number (212) 449-9015, Attention:
Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G, (b) in the case of
the Seller, Merrill Lynch Credit Corporation, 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York, 10080, telecopy number (212)
449-9015, Attention: Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G,
and (c) with respect to the Trustee or the Certificate Registrar, P.O. Box 98,
Columbia, Maryland 21046, Attention: Client Manager - MLMI Trust Series MLCC
2003-G, with a copy to it at its respective Corporate Trust Office, or as to
each party such other address as may hereafter be furnished by such party to the
other parties in writing. All demands, notices and communications to a party
hereunder shall be in writing and shall be deemed to have been duly given when
delivered to such party at the relevant address, facsimile number or electronic
mail address set forth above or at such other address, facsimile number or
electronic mail address as such party may designate from time to time by written
notice in accordance with this Section 11.07.

         Section 11.08 Severability of Provisions.

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

         Section 11.09 Indulgences; No Waivers.

         Neither the failure nor any delay on the part of a party to exercise
any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy,
power or privilege preclude any other or further exercise of the same or of any
other right, remedy, power or privilege, nor shall any waiver of any right,
remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed
by the party asserted to have granted such waiver.

         Section 11.10 Headings Not To Affect Interpretation.

                                      110
<PAGE>

         The headings contained in this Agreement are for convenience of
reference only, and they shall not be used in the interpretation hereof.

         Section 11.11 Benefits of Agreement.

         Nothing in this Agreement or in the Certificates, express or implied,
shall give to any Person, other than the parties to this Agreement and their
successors hereunder and the Holders of the Certificates, any benefit or any
legal or equitable right, power, remedy or claim under this Agreement, except to
the extent specified in Section 11.15.

         Section 11.12 Special Notices to the Rating Agencies.

         (a) The Depositor shall give prompt notice to the Rating Agencies of
the occurrence of any of the following events of which it has notice:

                  (i)      any amendment to this Agreement pursuant to Section
                           11.03;

                  (ii)     the occurrence of any Event of Default;

                  (iii)    any notice of termination given to the Servicer
                           pursuant to Section 6.14 or any resignation of the
                           Servicer pursuant to the Servicing Agreement;

                  (iv)     the appointment of any successor to the Servicer
                           pursuant to Section 6.14; and

                  (v)      the making of a final payment pursuant to Section
                           7.02.

         (b) All notices to the Rating Agencies provided for this Section shall
be in writing and sent by first class mail, telecopy or overnight courier, as
follows:

         If to Moody's, to:

         Moody's Investors Service, Inc.
         99 Church Street
         New York, New York 10007
         Attention: ABS Monitoring

         If to S&P, to:

         Standard & Poor's Ratings Service,
           a Division of The McGraw-Hill
           Companies, Inc.
         55 Water Street
         New York, New York 10041
         Attention: Residential Mortgages

         If to Fitch Ratings, to:

         Fitch, Inc.

                                      111
<PAGE>

         One State Street Plaza
         30th Floor
         New York, New York 10004
         Attention: Surveillance Group

         (c) The Trustee shall provide or make available to the Rating Agencies
reports prepared pursuant to Section 4.02. In addition, the Trustee shall, at
the expense of the Trust Fund, make available to each Rating Agency such
information as such Rating Agency may reasonably request regarding the
Certificates or the Trust Fund, to the extent that such information is
reasonably available to the Trustee.

         Section 11.13 Conflicts.

         To the extent that the terms of this Agreement conflict with the terms
of the Servicing Agreement, the Servicing Agreement shall govern.

         Section 11.14 Counterparts.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, and all of which together shall
constitute one and the same instrument.

         Section 11.15 No Petitions.

         The Trustee, by entering into this Agreement, hereby covenants and
agrees that it shall not at any time institute against the Depositor, or join in
any institution against the Depositor of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States federal or state bankruptcy or similar law in connection with
any obligations relating to this Agreement or any of the documents entered into
by the Depositor in connection with the transactions contemplated by this
Agreement.

                                      112
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed hereto by their respective officers hereunto duly authorized as of the
day and year first above written.

                                            MERRILL LYNCH MORTGAGE INVESTORS,
                                            INC., as Depositor

                                            By:_________________________________
                                               Name:  Matthew Whalen
                                               Title: President

                                            WELLS FARGO BANK MINNESOTA,
                                            NATIONAL ASSOCIATION,
                                            as Trustee

                                            By:_________________________________
                                               Name:  Sandra L. Whalen
                                               Title: Vice President

<PAGE>

Solely for purposes of Section 2.04,
accepted and agreed to by:

MERRILL LYNCH CREDIT CORPORATION

By:____________________________
   Name:  Kathy Ciaffa
   Title: Vice President

<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

                                      A-1
<PAGE>

                                    EXHIBIT B

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

STATE OF                   )
                           )       ss.:
COUNTY OF                  )

         [NAME OF OFFICER], _________________ being first duly sworn, deposes
and says:

         1.       That he [she] is [title of officer] ________________________
                  of [name of Purchaser] _____________________________________
                  (the "Purchaser"), a _______________________ [description of
                  type of entity] duly organized and existing under the laws of
                  the [State of __________] [United States], on behalf of which
                  he [she] makes this affidavit.

         2.       That the Purchaser's Taxpayer Identification Number is [    ].

         3.       That the Purchaser is not a "disqualified organization" within
                  the meaning of Section 860E(e)(5) of the Internal Revenue Code
                  of 1986, as amended (the "Code") and will not be a
                  "disqualified organization" as of [date of transfer], and that
                  the Purchaser is not acquiring a Residual Certificate (as
                  defined in the Agreement) for the account of, or as agent
                  (including a broker, nominee, or other middleman) for, any
                  person or entity from which it has not received an affidavit
                  substantially in the form of this affidavit. For these
                  purposes, a "disqualified organization" means the United
                  States, any state or political subdivision thereof, any
                  foreign government, any international organization, any agency
                  or instrumentality of any of the foregoing (other than an
                  instrumentality if all of its activities are subject to tax
                  and a majority of its board of directors is not selected by
                  such governmental entity), any cooperative organization
                  furnishing electric energy or providing telephone service to
                  persons in rural areas as described in Code Section
                  1381(a)(2)(C), any "electing large partnership" within the
                  meaning of Section 775 of the Code, or any organization (other
                  than a farmers' cooperative described in Code Section 521)
                  that is exempt from federal income tax unless such
                  organization is subject to the tax on unrelated business
                  income imposed by Code Section 511.

         4.       That the Purchaser either (x) is not, and on _________________
                  [date of transfer] will not be, an employee benefit plan
                  subject to Title I of the Employee Retirement Income Security
                  Act of 1974, as amended ("ERISA"), or Section 4975 of the Code
                  or any provisions of federal, state or local law substantially
                  similar to the foregoing provisions of ERISA or the Code
                  ("Similar Law"), the trustee of any such plan or a person
                  acting on behalf of any such plan or investing the assets of
                  any such plan to acquire a Residual Certificate; or (y)
                  herewith delivers to the Certificate Registrar an opinion of
                  counsel satisfactory to the Certificate Registrar, and upon
                  which the Certificate Registrar shall be entitled to

                                      B-1
<PAGE>

                  rely, to the effect that the purchase and holding of such
                  Residual Certificate by the Investor will not result in the
                  assets of the Trust Fund being deemed to be plan assets and
                  subject to the prohibited transaction provisions of ERISA or
                  the Code or Similar Law, and will not subject the Trustee or
                  the Depositor to any obligation in addition to those
                  undertaken by such entities in the Trust Agreement, which
                  opinion of counsel shall not be an expense of the Trust Fund,
                  the Trustee, the Certificate Registrar or the Depositor.

         5.       That the Purchaser hereby acknowledges that under the terms of
                  the Trust Agreement dated as of November 1, 2003 (the
                  "Agreement"), by and between Merrill Lynch Mortgage Investors,
                  Inc., as Depositor and Wells Fargo Bank Minnesota, National
                  Association, as Trustee with respect to Merrill Lynch Mortgage
                  Investors Trust Series MLCC 2003-G Mortgage Pass-Through
                  Certificates, no transfer of the Residual Certificates shall
                  be permitted to be made to any person unless the Certificate
                  Registrar and Trustee have received a certificate from such
                  transferee containing the representations in paragraphs 3 and
                  4 hereof.

         6.       That the Purchaser does not hold REMIC residual securities as
                  nominee to facilitate the clearance and settlement of such
                  securities through electronic book-entry changes in accounts
                  of participating organizations (such entity, a "Book-Entry
                  Nominee").

         7.       That the Purchaser does not have the intention to impede the
                  assessment or collection of any federal, state or local taxes
                  legally required to be paid with respect to such Residual
                  Certificate.

         8.       That the Purchaser will not transfer a Residual Certificate to
                  any person or entity (i) as to which the Purchaser has actual
                  knowledge that the requirements set forth in paragraph 3,
                  paragraph 6 or paragraph 10 hereof are not satisfied or that
                  the Purchaser has reason to believe does not satisfy the
                  requirements set forth in paragraph 7 hereof, and (ii) without
                  obtaining from the prospective Purchaser an affidavit
                  substantially in this form and providing to the Trustee and
                  the Certificate Registrar a written statement substantially in
                  the form of Exhibit C to the Agreement.

         9.       That the Purchaser understands that, as the holder of a
                  Residual Certificate, the Purchaser may incur tax liabilities
                  in excess of any cash flows generated by the interest and that
                  it intends to pay taxes associated with holding such Residual
                  Certificate as they become due.

         10.      That the Purchaser (i) is not a Non-U.S. Person or (ii) is a
                  Non-U.S. Person that holds a Residual Certificate in
                  connection with the conduct of a trade or business within the
                  United States and has furnished the transferor, the Trustee
                  and the Certificate Registrar with an effective Internal
                  Revenue Service Form W-8ECI (Certificate of Foreign Person's
                  Claim for Exemption From Withholding on Income Effectively
                  Connected With the Conduct of a Trade or Business in the

                                      B-2
<PAGE>

                  United States) or successor form at the time and in the manner
                  required by the Code. "Non-U.S. Person" means an individual,
                  corporation, partnership or other person other than (i) a
                  citizen or resident of the United States; (ii) a corporation,
                  partnership or other entity created or organized in or under
                  the laws of the United States or any state thereof, including
                  for this purpose, the District of Columbia; (iii) an estate
                  that is subject to U.S. federal income tax regardless of the
                  source of its income; (iv) a trust if a court within the
                  United States is able to exercise primary supervision over the
                  administration of the trust and one or more United States
                  trustees have authority to control all substantial decisions
                  of the trust; and, (v) to the extent provided in Treasury
                  regulations, certain trusts in existence on June August 20,
                  1996 that are treated as United States persons prior to such
                  date and elect to continue to be treated as United States
                  persons.

         11.      The Purchaser will not cause income from the Residual
                  Certificate to be attributable to a foreign permanent
                  establishment or fixed base (within the meaning of an
                  applicable income tax treaty) of the Purchaser or another U.S.
                  taxpayer.

         12.      That the Purchaser agrees to such amendments of the Trust
                  Agreement as may be required to further effectuate the
                  restrictions on transfer of any Residual Certificate to such a
                  "disqualified organization," an agent thereof, a Book-Entry
                  Nominee, or a person that does not satisfy the requirements of
                  paragraph 7 and paragraph 10 hereof.

         13.      That the Purchaser consents to the designation of the Trustee
                  to act as agent for the "tax matters person" of each REMIC
                  created by the Trust Fund pursuant to the Trust Agreement.

         14.      That the Purchaser agrees to be bound by Section 3.03(f) of
                  the Agreement.

                                      B-3
<PAGE>

         IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[title of officer] this _____ day of __________, 20__.

                                              _________________________________
                                              [name of Purchaser]

                                              By:______________________________
                                                 Name:
                                                 Title:

         Personally appeared before me the above-named [name of officer]
________________, known or proved to me to be the same person who executed the
foregoing instrument and to be the [title of officer] _________________ of the
Purchaser, and acknowledged to me that he [she] executed the same as his [her]
free act and deed and the free act and deed of the Purchaser.

         Subscribed and sworn before me this _____ day of __________ 20__.

NOTARY PUBLIC

______________________________

COUNTY OF_____________________

STATE OF______________________

My commission expires the _____ day of __________ 20__.

                                      B-4
<PAGE>

                                    EXHIBIT C

              RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

                                                    ____________________________
                                                              Date

Re:      Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G
         Mortgage Pass-Through Certificates

         _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true and has no reason to believe that the
information contained in paragraph 7 thereof is not true, and has no reason to
believe that the Transferee has the intention to impede the assessment or
collection of any federal, state or local taxes legally required to be paid with
respect to a Residual Certificate. In addition, the Transferor has conducted a
reasonable investigation at the time of the transfer and found that the
Transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the Transferee will not continue to pay
its debts as they become due.

                                                Very truly yours,

                                                _______________________________
                                                Name:
                                                Title:

                                      C-1
<PAGE>

                                    EXHIBIT D

                        MORTGAGE LOAN SERVICING AGREEMENT

         See Exhibit 99.2, Exhibit 99.3 and Exhibit 99.4, filed herewith

                                      D-1
<PAGE>

                                    EXHIBIT E

                    MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

                        See Exhibit 99.1, filed herewith

                                      E-1

<PAGE>

                                    EXHIBIT F

                      LIST OF LIMITED PURPOSE SURETY BONDS

         Ambac Assurance Corporation Surety Bond No. AB0039BE, issued February
26, 1996, for Merrill Lynch Credit Corporation.

                                      F-1
<PAGE>

                                    EXHIBIT G

                     FORM OF RULE 144A TRANSFER CERTIFICATE

Re:      Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G
         Mortgage Pass-Through Certificates

         Reference is hereby made to the Trust Agreement, dated as of November
1, 2003 (the "Trust Agreement"), by and between Merrill Lynch Mortgage
Investors, Inc., as Depositor and Wells Fargo Bank Minnesota, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Trust Agreement.

         This letter relates to $__________ initial Certificate Balance of
Class     Certificates which are held in the form of Definitive Certificates
registered in the name of        (the "Transferor"). The Transferor has
requested a transfer of such Definitive Certificates for Definitive Certificates
of such Class registered in the name of [insert name of transferee].

         In connection with such request, and in respect of such Certificates,
the Transferor hereby certifies that such Certificates are being transferred in
accordance with (i) the transfer restrictions set forth in the Trust Agreement
and the Certificates and (ii) Rule 144A under the Securities Act to a purchaser
that the Transferor reasonably believes is a "qualified institutional buyer"
within the meaning of Rule 144A purchasing for its own account or for the
account of a "qualified institutional buyer," which purchaser is aware that the
sale to it is being made in reliance upon Rule 144A, in a transaction meeting
the requirements of Rule 144A and in accordance with any applicable securities
laws of any state of the United States or any other applicable jurisdiction.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Underwriters and the Depositor.

                                           _____________________________________
                                           [Name of Transferor]

                                           By:__________________________________
                                              Name:
                                              Title:

Dated: ___________, ____

                                      G-1
<PAGE>

                                    EXHIBIT H

                         FORM OF PURCHASER'S LETTER FOR
                        INSTITUTIONAL ACCREDITED INVESTOR

                                                        Date

Dear Sirs:

         In connection with our proposed purchase of $______________ principal
amount of Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G Mortgage
Pass-Through Certificates (the "Privately Offered Certificates") of Merrill
Lynch Mortgage Investors, Inc. (the "Depositor"), we confirm that:

(1)      We understand that the Privately Offered Certificates have not been,
         and will not be, registered under the Securities Act of 1933, as
         amended (the "Securities Act"), and may not be sold except as permitted
         in the following sentence. We agree, on our own behalf and on behalf of
         any accounts for which we are acting as hereinafter stated, that if we
         should sell any Privately Offered Certificates within two years of the
         later of the date of original issuance of the Privately Offered
         Certificates or the last day on which such Privately Offered
         Certificates are owned by the Depositor or any affiliate of the
         Depositor we will do so only (A) to the Depositor, (B) to "qualified
         institutional buyers" (within the meaning of Rule 144A under the
         Securities Act) in accordance with Rule 144A under the Securities Act
         ("QIBs"), (C) pursuant to the exemption from registration provided by
         Rule 144 under the Securities Act, or (D) to an institutional
         "accredited investor" within the meaning of Rule 501(a)(1), (2), (3) or
         (7) of Regulation D under the Securities Act that is not a QIB (an
         "Institutional Accredited Investor") which, prior to such transfer,
         delivers to the Certificate Registrar under the Trust Agreement, dated
         as of September 1, 2003, by and between Merrill Lynch Mortgage
         Investors, Inc., as Depositor and Wells Fargo Bank Minnesota, National
         Association, as Trustee, a signed letter in the form of this letter;
         and we further agree, in the capacities stated above, to provide to any
         person purchasing any of the Privately Offered Certificates from us a
         notice advising such purchaser that resales of the Privately Offered
         Certificates are restricted as stated herein.

(2)      We understand that, in connection with any proposed resale of any
         Privately Offered Certificates to an Institutional Accredited Investor,
         we will be required to furnish to the Certificate Registrar a
         certification from such transferee in the form hereof to confirm that
         the proposed sale is being made pursuant to an exemption from, or in a
         transaction not subject to, the registration requirements of the
         Securities Act. We further understand that the Privately Offered
         Certificates purchased by us will bear a legend to the foregoing
         effect.

(3)      We are acquiring the Privately Offered Certificates for investment
         purposes and not with a view to, or for offer or sale in connection
         with, any distribution in violation of the

                                      H-1
<PAGE>

         Securities Act. We have such knowledge and experience in financial and
         business matters as to be capable of evaluating the merits and risks of
         our investment in the Privately Offered Certificates, and we and any
         account for which we are acting are each able to bear the economic risk
         of such investment.

(4)      We are an Institutional Accredited Investor and we are acquiring the
         Privately Offered Certificates purchased by us for our own account or
         for one or more accounts (each of which is an Institutional Accredited
         Investor) as to each of which we exercise sole investment discretion.

(5)      We have received such information as we deem necessary in order to make
         our investment decision.

(6)      If we are acquiring ERISA-Restricted Certificates, we understand that
         in accordance with ERISA, the Code and the Exemption, no Plan and no
         person acting on behalf of such a Plan may acquire such Certificate
         except in accordance with Section 3.03(d) of the Trust Agreement.

         Terms used in this letter which are not otherwise defined herein have
the respective meanings assigned thereto in the Trust Agreement.

                                      H-2
<PAGE>

         You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.

                                            Very truly yours,

                                            ____________________________________
                                            [Purchaser]

                                            By: ________________________________
                                                Name:
                                                Title:

                                      H-3
<PAGE>

                                   EXHIBIT I

                        FORM OF ERISA TRANSFER AFFIDAVIT

STATE OF NEW YORK          )
                           )       ss.:
COUNTY OF NEW YORK         )

         The undersigned, being first duly sworn, deposes and says as follows:

              1. The undersigned is the ______________________ of ______________
     (the "Investor"), a [corporation duly organized] and existing under the
     laws of __________, on behalf of which he makes this affidavit.

              2. The Investor either (x) is not, and on ___________ [date of
     transfer] will not be, an employee benefit plan subject to Title I of the
     Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
     Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code")
     or any provisions of applicable federal, state or local law substantially
     similar to the foregoing provisions of ERISA or the Code ("Similar Law"),
     the trustee of any such plan or a person acting on behalf of any such plan
     or investing the assets of any such plan; (y) if the Certificate (other
     than the Class A-R Certificate) has been the subject of an ERISA-Qualifying
     Underwriting, is an insurance company that is purchasing the Certificate
     with funds contained in an "insurance company general account" as defined
     in Section V(e) of Prohibited Transaction Class Exemption ("PTCE") 95-60
     and the purchase and holding of the Certificate are covered under Sections
     I and III of PTCE 95-60; or (z) herewith delivers to the Certificate
     Registrar an opinion of counsel satisfactory to the Certificate Registrar,
     and upon which the Certificate Registrar shall be entitled to rely, to the
     effect that the purchase and holding of such Certificate by the Investor
     will not result in the assets of the Trust Fund being deemed to be plan
     assets and subject to the prohibited transaction provisions of ERISA or the
     Code or Similar Law, and will not subject the Trustee or the Depositor to
     any obligation in addition to those undertaken by such entities in the
     Trust Agreement, which opinion of counsel shall not be an expense of the
     Trust Fund, the Trustee, the Certificate Registrar or the Depositor.

              3. The Investor hereby acknowledges that under the terms of the
     Trust Agreement dated as of November 1, 2003 (the "Agreement"), by and
     between Merrill Lynch Mortgage Investors, Inc., as Depositor and Wells
     Fargo Bank Minnesota, National Association, as Trustee, no transfer of the
     ERISA-Restricted Certificates shall be permitted to be made to any person
     unless the Certificate Registrar has received a certificate from such
     transferee in the form hereof.

                                      I-1
<PAGE>

         IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to proper authority, by its duly authorized
officer, duly attested, this ____ day of _______________ 20___.

                                           _________________________________
                                           [Investor]

                                           By:______________________________
                                              Name:
                                              Title:

ATTEST:

_____________________________

STATE OF                    )
                            )        ss.:
COUNTY OF                   )

                  Personally appeared before me the above-named
         ________________, known or proved to me to be the same person who
         executed the foregoing instrument and to be the ____________________ of
         the Investor, and acknowledged that he executed the same as his free
         act and deed and the free act and deed of the Investor.

                  Subscribed and sworn before me this _____ day of _________
         20___.

                                                 ______________________________
                                                 NOTARY PUBLIC

                                                 My commission expires the
                                                 _____ day of __________, 20___.

                                      I-2
<PAGE>

                                    EXHIBIT J

                        FORM OF LETTER OF REPRESENTATIONS
                        WITH THE DEPOSITORY TRUST COMPANY

                             [INTENTIONALLY OMITTED]

                                      J-1
<PAGE>

                                    EXHIBIT K

                              INITIAL CERTIFICATION
            MERRILL LYNCH MORTGAGE INVESTORS TRUST SERIES MLCC 2003-G

                                                              ____________, 2003

To:      Merrill Lynch Mortgage Investors, Inc.
         250 Vesey Street
         4 World Financial Center, 10th Floor
         New York, New York 10080

         Cendant Mortgage Corporation
         3000 Leadenhall Road
         Mt. Laurel, New Jersey 08054

         Merrill Lynch Credit Corporation
         4802 Deer Lake Drive East
         Jacksonville, FL 32246

         Reference is made to the Trust Agreement between Merrill Lynch Mortgage
Investors, Inc. (the "Depositor") and Wells Fargo Bank Minnesota, as Trustee
(the "Trustee"), dated as of November 1, 2003 (the "Trust Agreement"), pursuant
to which the Depositor has delivered to the Trustee, with respect to each
Mortgage Loan set forth on Schedule A hereto (the "Mortgage Loan Schedule"), the
documents set forth in Section 2.01 of the Trust Agreement.

         With respect to each Mortgage Loan listed on the Mortgage Loan Schedule
and except as otherwise noted on the Schedule of Exceptions set forth on
Schedule B hereto, the Trustee confirms that (1) the Trustee has received all of
the documents required to be delivered to the Trustee pursuant to Section 2.01
of the Trust Agreement, (2) the Trustee has reviewed each Trustee's Mortgage
File in accordance with Section 2.02(a) of the Trust Agreement, and the
documents contained in each Trustee's Mortgage File conform to the requirements
set forth in such Section 2.02(a), and (3) the Trustee has physical possession
of the documents in each Trustee's Mortgage File. The Trustee has not
independently verified the validity, enforceability, sufficiency, recordability,
due authorization or genuineness or any document in any Trustee's Mortgage File
or any related Mortgage Loan, nor the collectibility, insurability,
effectiveness or suitability of any related Mortgage Loan.

         All terms used herein and not otherwise defined herein shall have the
respective meaning ascribed to such term in the Trust Agreement.

                                            WELLS FARGO BANK MINNESOTA, N.A.,
                                            as Trustee

                                                 By:____________________________
                                                 Name:__________________________
                                                 Title:_________________________

                                      K-1
<PAGE>

                                    EXHIBIT L

                           FORM OF FINAL CERTIFICATION

                                                             _____________, 2003

To:      Merrill Lynch Mortgage Investors, Inc.
         250 Vesey Street
         4 World Financial Center, 10th Floor
         New York, New York 10080

         Cendant Mortgage Corporation
         3000 Leadenhall Road
         Mt. Laurel, New Jersey 08054

         Merrill Lynch Credit Corporation
         4802 Deer Lake Drive East
         Jacksonville, FL 32246

         Reference is made to the Trust Agreement between Merrill Lynch Mortgage
Investors, Inc. (the "Depositor") and Wells Fargo Bank Minnesota, National
Association, as Trustee (the "Trustee"), dated as of November 1, 2003 (the
"Trust Agreement"), pursuant to which the Depositor has delivered to the
Trustee, with respect to each Mortgage Loan set forth on Schedule A hereto (the
"Mortgage Loan Schedule"), the documents set forth in Section 2.01 of the Trust
Agreement.

         With respect to each Mortgage Loan listed on the Mortgage Loan Schedule
and except as otherwise noted on the Schedule of Exceptions set forth on
Schedule B hereto, the Trustee confirms that (1) the Trustee has received all of
the documents required to be delivered to the Custodian pursuant to Section 2.01
of the Trust Agreement, (2) the Trustee has reviewed each Trustee's Mortgage
File in accordance with Section 2 of Amendment No. 1 to the Custody Agreement,
and the documents contained in each Trustee's Mortgage File conform to the
requirements set forth in such Section 2, and (3) the Trustee has physical
possession of the documents in each Trustee's Mortgage File. The Trustee has not
independently verified the validity, enforceability, sufficiency, recordability,
due authorization or genuineness or any document in any Trustee's Mortgage File
or any related Mortgage Loan, nor the collectibility, insurability,
effectiveness or suitability of any related Mortgage Loan.

         All terms used herein and not otherwise defined herein shall have the
respective meaning ascribed to such term in the Trust Agreement.

                                            WELLS FARGO BANK MINNESOTA, N.A.,
                                            as Trustee

                                            By:_________________________________
                                            Name:_______________________________
                                            Title:______________________________

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                                    EXHIBIT M

                           LIST OF SERVICING OFFICERS

                             [INTENTIONALLY OMITTED]

                                       M-1
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                                    EXHIBIT N

                               REQUEST FOR RELEASE

To:      Wells Fargo Bank Minnesota,
         National Association
         1031 10th Avenue S.E.
         Minneapolis, Minnesota  55414
         (Attention:  Merrill Lynch Mortgage Investors Trust Series MLCC 2003-G)

                  Re:      Trust Agreement, dated as of November 1, 2003 by and
                           between Merrill Lynch Mortgage Investors, Inc. and
                           Wells Fargo Bank Minnesota, National Association, as
                           Trustee

         In connection with the administration of the pool of Mortgage Loans
held by you as Trustee for the benefit of Certificateholders, we request the
release of the (Trustee's Mortgage File/[specify documents]) for the Mortgage
Loan described below, for the reason indicated.

File/document to be sent to:
         [Company]
         [Address]
         [Attn:]
         [Telephone Number ____]

Mortgagor's Name, Address & Zip Code:

Mortgage Loan Number:

Reason for Requesting Documents (check one)

______ 1.         Mortgage Loan Paid in Full

                  ([Seller/Depositor] [Servicer], hereby certifies that all
                  amounts received in connection therewith have been credited to
                  the Custodial Account or the Distribution Account, as
                  applicable.)

______ 2.         Mortgage Loan in Foreclosure

______ 3.         Mortgage Loan Repurchased or Substituted For

                  ([Seller/Depositor] [Servicer], hereby certifies that any
                  applicable repurchase price or substitution shortfall amount
                  has been credited to the Custodial Account or the Distribution
                  Account, as applicable.)

______ 4.         Mortgage Loan Liquidated

                  ([Seller/Depositor] [Servicer], hereby certifies that all
                  proceeds of foreclosure, insurance or other liquidation have
                  been finally received and credited to the Custodial Account or
                  the Distribution Account, as applicable.)

______ 5.         Other (explain) ______________________________________________

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         If box 1, 2 or 3 above is checked, and if all or part of the Trustee's
Mortgage File was previously released to us, please release to us our previous
receipt on file with you, as well as any additional documents in your possession
relating to the above specified Mortgage Loan.

         If box 4 or 5 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

                                          [SELLER/DEPOSITOR]
                                           [SERVICER]

                                          By: __________________________________

                                          Date: ________________________________

Documents returned to Trustee:

______________________________,
as Trustee

By:____________________________

Date: _________________________

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                                    EXHIBIT O

                               CUSTODIAL AGREEMENT

                  THIS CUSTODIAL AGREEMENT dated as of December 15, 2000 (this
"Agreement"), between MERRILL LYNCH CREDIT CORPORATION ("MLCC") having an
address at 4802 Deer Lake Drive East, Jacksonville, Florida 32246 and WELLS
FARGO BANK MINNESOTA, N.A. ("Custodian"), having an address at Sixth and
Marquette, Minneapolis, Minnesota 55479- 0031.

                              PRELIMINARY STATEMENT

                  MLCC may, from time to time, purchase certain Mortgage Loans
from third party sellers pursuant to the terms and conditions of certain
mortgage loan purchase agreements entered into between MLCC and such third
parties (each, a "Purchase Agreement"). MLCC desires that the Custodian act as
custodian with respect to the documents for the Mortgage Loans delivered from
time to time to the Custodian hereunder, and the Custodian desires to act as
custodian with respect to the documents for the Mortgage Loans.

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

         1.       Definitions.

         "Additional Collateral Mortgage Loan": Each Mortgage Loan that is
either a Mortgage 100(sm) Loan or Parent Power(R) Mortgage Loan as to which the
Additional Collateral is provided. For purposes hereof, the term "Additional
Collateral" shall mean (i) with respect to any Mortgage 100(sm) Loan, the
marketable securities subject to a security interest pursuant to the related
Mortgage 100(sm) Pledge Agreement, or (ii) with respect to any Parent Power(R)
Mortgage Loan, the related Parent Power(R) Agreement.

         "Agreement": This Custodial Agreement and all amendments and
attachments hereto and supplements hereof.

         "Assignment": An assignment of the Mortgage, notice of transfer or
equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to give record
notice of the sale or transfer of the Mortgage Loan.

         "Business Day": Any day other than (i) a Saturday or Sunday, or (ii) a
day on which banking or savings associations in the State of New Jersey or the
State of Minnesota are authorized or obligated by law or executive order to be
closed.

         "Closing Date": With respect to each Mortgage Loan, the date upon which
the MLCC completes the purchase of such Mortgage Loan.

         "Custodian": Wells Fargo Bank Minnesota, N.A., or its successor in
interest or assigns.

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         "Custodian's Mortgage File": As to each Mortgage Loan, all Mortgage
Loan documents delivered to the Custodian pursuant hereto and held by the
Custodian with respect to each Mortgage Loan.

         "Custody Receipt": An Initial Custody Receipt and/or a Final Custody
Receipt.

         "Cut-off Date": With respect to each Mortgage Loan, the first day of
the month in which the related Delivery Date occurs or such other date specified
by the Registered Holder.

         "Delivery Date": The date on which MLCC delivers or causes to be
delivered to the Custodian the Mortgage Loans listed on the related Mortgage
Loan Schedule.

         "Exception Report": The Exception Report prepared by the Custodian as
part of the Initial Custody Receipt and as updated thereafter.

         "Final Custody Receipt": A final custody receipt as to each Mortgage
Loan, which final custody receipt is delivered to MLCC, or its successor in
interest or assigns, by the Custodian in the form annexed hereto as Exhibit Two.

         "First Mortgage Loan": A Mortgage Loan that is secured by a first lien
on the Mortgaged Property securing the related Mortgage Note.

         "Gross Margin": With respect to each adjustable rate Mortgage Loan, the
fixed number of basis points set forth in the Mortgage Loan Schedule that is
added to the Index on each Interest Rate Adjustment Date in accordance with the
terms of the related Mortgage Note to determine the Mortgage Interest Rate for
such Mortgage Loan, subject to any applicable Periodic Rate Cap or Lifetime Rate
Cap.

         "Index": With respect to each adjustable rate Mortgage Loan, a rate per
annum to which the Gross Margin is added on each Interest Rate Adjustment Date
to determine the new Mortgage Interest Rate for such Mortgage Loan.

         "Initial Custody Receipt": An initial custody receipt as to each
Mortgage Loan, which initial custody receipt is delivered to MLCC, or its
successor in interest or assigns, by the Custodian in the form annexed hereto as
Exhibit One.

         "Interest Rate Adjustment Date": With respect to each adjustable rate
Mortgage Loan, the date on which the Mortgage Interest Rate is adjusted in
accordance with the terms of the related Mortgage Note.

         "Lifetime Rate Cap": With respect to each adjustable rate Mortgage
Loan, the maximum Mortgage Interest Rate that may be borne thereby, as set forth
in the related Mortgage Note.

         "Loan-to-Value Ratio": With respect to any First Mortgage Loan, as of
any date of determination, the ratio on such date of the outstanding principal
balance of such Mortgage Loan to the Appraised Value of the related Mortgaged
Property.

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         "Mortgage": The mortgage, deed of trust or other instrument creating a
first or second lien on real property securing the Mortgage Note.

         "Mortgage Interest Rate": The annual rate at which interest accrues on
any Mortgage Loan and with respect to any adjustable rate Mortgage Loan, as such
annual rate may be adjusted on any Interest Rate Adjustment Date and subject to
the limitations on such interest rate imposed by any Lifetime Rate Cap or any
Periodic Rate Cap.

         "Mortgage Loan": An individual Mortgage Loan, including but not limited
to all documents included in the Custodian's Mortgage File, monthly payments,
principal prepayments, proceeds from REO dispositions and any and all rights,
benefits, proceeds and obligations arising therefrom or in connection therewith,
and which is the subject of this Agreement.

         "Mortgage Loan Schedule": The list of Mortgage Loans purchased by MLCC
from a third party seller from time to time that are subject to this Agreement
which list shall set forth the following information with respect to each
Mortgage Loan:

                  (i)      the loan number;

                  (ii)     the Mortgagor's name, social security number, and
                           FICO score;

                  (iii)    the street address of the Mortgaged Property,
                           including city, state and zip code, if available;

                  (iv)     the Mortgage Interest Rate at origination and, in the
                           case of an adjustable rate Mortgage Loan, the
                           Mortgage Interest Rate in effect as of the related
                           Cut-off Date, which rate may vary from that reflected
                           in the Mortgage and Note;

                  (v)      for each adjustable rate Mortgage Loan, the first
                           Interest Rate Adjustment Date;

                  (vi)     for each adjustable rate Mortgage Loan, the Gross
                           Margin;

                  (vii)    for each adjustable rate Mortgage Loan, the Lifetime
                           Rate Cap, if applicable;

                  (viii)   for each adjustable rate Mortgage Loan, the Periodic
                           Rate Cap, if applicable;

                  (ix)     the original term to maturity and remaining term to
                           maturity;

                  (x)      the original principal balance;

                  (xi)     the first payment due date;

                  (xii)    the maturity date;

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                  (xiii)   the monthly payment in effect as of the related
                           Cut-off Date;

                  (xiv)    the principal balance as of the related Cut-off Date;

                  (xv)     as to any First Mortgage Loan the Loan-to-Value Ratio
                           at origination;

                  (xvi)    a code indicating whether the Mortgaged Property is
                           occupied by the Mortgagor;

                  (xvii)   a code indicating the type of Residential Dwelling;

                  (xviii)  a code indicating the purpose of the Mortgage Loan;

                  (xix)    a code indicating the Mortgage Loan documentation
                           type (i.e. limited documentation, full documentation,
                           easy documentation, etc.); and

                  (xx)     for each adjustable rate Mortgage Loan, a code
                           indicating the type of Index.

         "Mortgage Note": The note evidencing the indebtedness of a Mortgagor
secured by a Mortgage.

         "Mortgaged Property": The underlying real property securing repayment
of a Mortgage Note, consisting of a fee simple estate in a single parcel of real
property improved by a Residential Dwelling.

         "Mortgagor": The obligor on a Mortgage Note, the owner of the Mortgaged
Property and the grantor or mortgagor named in the related Mortgage and such
grantor's or mortgagor's successor in title to the Mortgaged Property.

         "Opinion of Counsel": A document signed by an attorney, explaining the
attorney's understanding of the law as applicable to a state of facts submitted
for the purpose of an opinion.

         "Periodic Rate Cap": With respect to each adjustable rate Mortgage Loan
as to which the related Mortgage Loan Schedule indicates the existence of a
Periodic Rate Cap, the provision of the related Mortgage Note that provides for
a maximum amount by which the Mortgage Interest Rate may increase (or, if so
indicated on such Mortgage Loan Schedule, decrease) on an Interest Rate
Adjustment Date above (or below) the Mortgage Interest Rate in effect
immediately prior to such Interest Rate Adjustment Date.

         "Pledge Agreement": Any Mortgage 100 Pledge Agreement, Parent Power
Guaranty and Security Agreement for Securities Account, or Parent Power Guaranty
Agreement for Real Estate related to an Additional Collateral Mortgage Loan.

         "Registered Holder": MLCC, its successors in interest or assigns, in
whole or in part, as the case may be.

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         "Residential Dwelling": Any one of the following: (i) a detached
one-family dwelling, (ii) a detached two- to four-family dwelling, (iii) a
one-family dwelling unit in a Fannie Mae-eligible condominium project, or (iv) a
detached one-family dwelling in a planned unit development, none of which is a
co-operative.

         "Second Mortgage Loan": A Mortgage Loan that is secured by a second
lien on the Mortgaged Property securing the related Mortgage Note.

         2.       Delivery of Mortgage Loan Schedule and Custodian's Mortgage
                  File.

         MLCC may, from time to time, deliver or cause to be delivered to the
Custodian a Mortgage Loan Schedule and the following documents for each Mortgage
Loan listed on such Mortgage Loan Schedule, to be held by the Custodian for the
benefit of the Registered Holder, as the owner thereof:

              (a) The original Mortgage Note endorsed, "Pay to the order of
              ___________, without recourse" and signed in the name of the name
              of last endorsee, by an authorized officer of the last endorsee.
              If the Mortgage Loan was acquired by the last endorsee in a merger
              or other type of acquisition, the endorsement must be by "[name of
              last endorsee], successor [by merger to or in interest to, as
              applicable] [name of predecessor]"; and if the Mortgage Loan was
              acquired or originated by the last endorsee while doing business
              under another name, the endorsement must be by "[name of last
              endorsee], successor in interest to [previous name]." The Mortgage
              Note shall include all intervening endorsements showing a complete
              chain of title from the originator to the last endorsee.

              (b) The original recorded Mortgage, with evidence of recording
              thereon, or, if the original Mortgage has not yet been returned
              from the recording office, a copy of the original Mortgage
              certified by the previous owner to be a true copy of the original
              of the Mortgage which has been delivered for recording in the
              appropriate recording office of the jurisdiction in which the
              Mortgaged Property is located.

              (c) The original Assignment of each Mortgage, executed in blank by
              either MLCC or its Servicer. If the Mortgage Loan was acquired by
              the last endorsee in a merger or other type of acquisition, the
              assignment must be by "[name of last assignee], successor [by
              merger to or in interest to, as applicable] [name of
              predecessor]"; and if the Mortgage Loan was acquired or originated
              by the last endorsee while doing business under another name, the
              assignment must be by "[name of last assignee], successor in
              interest to [previous name]."

              (d) The original policy of title insurance (or a preliminary title
              report if the original title insurance policy has not been
              received from the title insurance company).

              (e) Originals of any intervening assignments of the Mortgage, with
              evidence of recording thereon or, if the original intervening
              assignment has not yet been returned from the recording office, a
              copy of such assignment certified by the Seller to be a true copy
              of the original of the assignment which has been delivered for
              recording in

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<PAGE>

              the appropriate recording office of the jurisdiction in which the
              Mortgaged Property is located.

              (f) With respect to a Mortgage Loan that, according to the
              Mortgage Loan Schedule is covered by a primary mortgage insurance
              policy, the original or a copy of primary mortgage insurance
              certificate, if any.

              (g) If indicated on the Mortgage Loan Schedule, originals of all
              assumption and modification agreements, if any, with originals or
              copies of the underlying instruments being modified.

With respect to each Additional Collateral Mortgage Loan,
Copy of the related Mortgage 100 Pledge Agreement for Securities Account or the
Parent Power Guaranty and Security Agreement for Securities Account or the
Parent Power Guaranty
Agreement for Real Estate, as the case may be;
copy of the UCC-1 (applicable for South Carolina and Rhode Island only);
an original form UCC-3, if applicable;
For loans originated by a correspondent lender, an original assignment of
security interest of the related Mortgage 100 Pledge Agreement or Parent Power
Agreement, as the case may be.

                  (i)      With respect to each Cooperative Loan:

                           1.       the original proprietary lease;

                           2.       the original recognition agreement;

                           3.       the original security agreement;

                           4.       the original or copy of the assignment of
                                    proprietary lease;

                           5.       the original cooperative stock certificate
                                    and stock power executed by borrower in
                                    blank;

                           6.       the original UCC-1 Financing Statements; and

                           7.       the original UCC-3 Financing Statements.

                  (j)      Power of Attorney, if applicable.

         From time to time, MLCC shall forward or cause to be forwarded to the
Custodian additional documents, original or otherwise, evidencing an assumption
or modification of a Mortgage Loan which documents shall become part of the
Custodian's Mortgage File.

         3.       Obligations of the Custodian.

         (a)      With respect to each Custodian's Mortgage File, the Custodian
is exclusively the custodian for the Registered Holder from and after the
related Delivery Date. The Custodian shall hold all documents constituting the
Custodian's Mortgage File received by it for the exclusive use and benefit of
the Registered Holder, and shall make disposition thereof only in accordance
with this Agreement and the instructions furnished by the Registered Holder. The
Custodian shall segregate and maintain continuous custody of all documents
constituting the Custodian's Mortgage File received by it in secure and
fire-resistant facilities in accordance with customary standards for such
custody. The Custodian represents and warrants that it will verify the receipt
of required documents, the accuracy of certain information, and indicate
discrepancies pursuant to the custody receipt requirements herein. The Custodian
makes no representations or

                                      O-6
<PAGE>

warranties as to, and shall not be responsible to, verify: (i) the validity,
legality, enforceability, sufficiency, recordability, due authorization or
genuineness of any of the documents contained in each Custodian's Mortgage File
or any of the Mortgage Loans or (ii) the collectibility, insurability,
effectiveness or suitability of any such Mortgage Loan. No provision of this
Agreement shall be construed to impose on the Custodian any obligation of a
third party seller under this Agreement or a Purchase Agreement under any
circumstances.

         (b)      The Custodian shall, at its own expense, maintain at all times
during the existence of this Agreement and keep in full force and effect a
fidelity bond, errors and omissions insurance, theft and documents insurance and
forgery insurance in amounts and with standard coverage as is customary for
insurance typically maintained by institutions that act as custodians. The
minimum coverage under any such bond and insurance policies shall be at least
equal to the corresponding amounts required by the Government National Mortgage
Association, Fannie Mae or Freddie Mac either of the Custodian or in their
respective Seller/Servicing Guides. A certificate of an authorized officer for
the Custodian shall be furnished to the Registered Holder upon request as
evidence of its compliance with any such requirement.

         4.       Custody Receipts.

         (a)      Initial Custody Receipt. The Custodian shall review the
documents delivered to it on each Delivery Date and shall deliver to MLCC as
initial Registered Holder within two (2) Business Days following the Delivery
Date, or within a mutually agreed upon time between the Bank and the Custodian,
but prior to the Closing Date, an Initial Custody Receipt with respect to the
Mortgage Loans, in which the Custodian shall certify that such Mortgage Loans
are held for MLCC (as Registered Holder) and that, as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full
or any Mortgage Loan specifically identified in such certification as not
covered by such certification), (a) all documents described in Paragraphs 2(a)
through 2(e) and to the extent provided in the Custodian's Mortgage Files
Paragraphs 2(f) through 2(j), if applicable, of this Agreement are in its
possession and (b) each Mortgage Note has been endorsed and each Assignment has
been executed as provided in Paragraph 2 hereof. If the Custodian determines
from such verification that any discrepancy or deficiency exists with respect to
a Custodian's Mortgage File, the Custodian shall note such discrepancy on the
schedule of exceptions attached to the Initial Custody Receipt as Schedule B
thereto (the "Exception Report").

         The Custodian shall also note on the Exception Report, with respect to
each Mortgage Loan, whether a certified copy of the related Mortgage was
delivered to the Custodian in lieu of the original of such Mortgage, whether a
certified copy of an intervening assignment of the related Mortgage was
delivered to the Custodian in lieu of the original of such assignment, and
whether a preliminary title report with respect to such Mortgage Loan was
delivered to the Custodian in lieu of the original policy of title insurance.

         On the first Business Day of each calendar month following delivery of
the Initial Custody Receipt until the month in which the Final Custody Receipt
is to be delivered pursuant to Subsection (b) below, the Custodian shall deliver
to the Registered Holder of the Initial Custody Receipt, an updated Exception
Report, revised to reflect any changes with respect to the status of the
exceptions noted for the related Mortgage Loans.

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         (b)      Final Custody Receipt. Not later than sixty (60) days
following the date of each delivery of an Initial Custody Receipt, the Custodian
shall deliver to the Registered Holder of the Initial Custody Receipt the Final
Custody Receipt, with respect to the Mortgage Loans related to such Initial
Custody Receipt, in which the Custodian shall certify to the Registered Holder
that, as to each Mortgage Loan listed in the related Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in such certification as not covered by such certification), (a) all
documents described in Paragraphs 2(a) through 2(e), and to the extent provided
in the Custodian's Mortgage Files Paragraphs 2(f) through 2(j), if applicable,
of this Agreement are in its possession, (b) such documents have been reviewed
by it and appear regular on their face and relate to such Mortgage Loan, (c)
based on its examination and only as to the foregoing documents, the information
set forth in items (i), (ii), (iii) excluding the zip code requirement, (iv),
(vi), (vii), (viii) and (x) of the definition of "Mortgage Loan Schedule"
respecting such Mortgage Loan is correct, and which as to items (iv), (vi),
(viii), and (x) for adjustable rate Mortgage Loans may reflect interest rates or
amounts that as of the Cutoff Date vary from those provided in the Mortgage Loan
Documents and (d) each Mortgage Note has been endorsed and each Assignment has
been executed as provided in Paragraph 2 hereof. If the Custodian determines
from such verification that any discrepancy or deficiency exists with respect to
a Custodian's Mortgage File, the Custodian shall note such discrepancy on the
Exception Report attached to the Final Custody Receipt as Schedule B thereto.
The Custodian shall also note on such Exception Report, with respect to each
Mortgage Loan, whether a certified copy of the related Mortgage was delivered to
the Custodian in lieu of the original of such Mortgage, whether a certified copy
of an intervening assignment of the related Mortgage was delivered to the
Custodian in lieu of the original of such assignment, and whether a preliminary
title report with respect to such Mortgage Loan was delivered to the Custodian
in lieu of the original policy of title insurance. Except as specifically
provided above, the Custodian shall be under no duty to review, inspect or
examine such documents to determine that any of them are enforceable or
appropriate for their prescribed purpose. Upon delivery of the Final Custody
Receipt to the Registered Holder of the Initial Custody Receipt, the Initial
Custody Receipt shall be of no further force or effect.

         (c)      Within five (5) days of receipt of written directions, in the
form attached hereto as Exhibit Six, from the Registered Holder with respect to
all or a portion of the Mortgage Loans owned by such Registered Holder, and upon
the prior tender by such Registered Holder of the applicable Initial and/or
Final Custody Receipt(s), as applicable, the Custodian shall deliver all or any
portion of the Custodian's Mortgage Files held by it to the Registered Holder,
or to such other party as the Registered Holder may direct, as provided in
Paragraph 19, at the place indicated in any such written direction from the
Registered Holder and shall deliver to the Registered Holder a new Initial or
Final Custody Receipt, as applicable, with respect to the Custodian's Mortgage
Files retained by the Custodian. The Registered Holder may require the Custodian
to complete the endorsements on any Mortgage Notes in its possession and to
complete the Assignment of Mortgages prepared by the Servicer in blank, within a
reasonable period of time. The cost of this shall be reimbursed by the
Registered Holder. A list of authorized signatures for such written directions
has been furnished to the Custodian by the Registered Holder pursuant to
Paragraph 20 hereof. Upon the Custodian's receipt of such written notification
from the Registered Holder that the Registered Holder has sold any or all of the
Mortgage Loans, which notification shall be accompanied by the Initial and/or
Final Custody Receipt(s), as applicable that relate to such Mortgage Loans, the
Custodian shall change its

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<PAGE>

records to reflect that such purchaser is the owner of such Mortgage Loans and
shall immediately, upon the direction of such Registered Holder, either deliver
the related Custodian's Mortgage Files to such purchaser at the expense of such
purchaser or issue an Initial or Final Custody Receipt in the name of such
purchaser. Such purchaser, as a Registered Holder, shall be required to
simultaneously furnish to the Custodian a list of authorized signatures for
written directions pursuant to Paragraph 20 hereof. The Custodian shall then
deliver to the Registered Holder a new Initial and/or Final Custody Receipt, as
applicable reflecting all Mortgage Loans with respect to which the Custodian
still holds the related Custodian's Mortgage Files on behalf of the Registered
Holder. The Registered Holder and the Custodian agree herein that any purchaser
of any or all of the Mortgage Loans shall succeed to the rights and obligations
of the Registered Holder under this Agreement with respect to such Mortgage
Loans upon receipt of the related Initial and/or Final Custody Receipt, as
applicable subject to the provisions of Paragraph 15 hereof.

         5.       Fees and Expenses of the Custodian.

         It is understood that the Custodian will charge such fees for its
services under this Agreement as are set forth in a separate agreement between
the Custodian and MLCC, the payment of which, together with the Custodian's
expenses in connection herewith, shall be solely the obligation of the
Registered Holder with respect to the related Mortgage Loans.

         6.       Removal of the Custodian.

         Any Registered Holder with respect to all or a portion of the Mortgage
Loans owned by such Registered Holder, with or without cause, may, upon thirty
(30) days' written notice to the Custodian, remove and discharge or any
successor Custodian thereafter appointed, as to such portion or all of the
Mortgage Loans the Custodian, from the performance of its duties under this
Agreement. In the event of any such removal, upon tender of the Custody Receipts
and satisfaction of any outstanding fees and expenses of the Custodian, the
Custodian shall promptly transfer to such Registered Holder or to a successor
Custodian appointed by such Registered Holder at the expense of such Registered
Holder, as directed by such Registered Holder in writing, all Custodian's
Mortgage Files related to the Mortgage Loans as to which the Custodian is being
terminated.

         7.       Examination of the Custodian's Mortgage File.

         Upon reasonable prior written notice to the Custodian, but not less
than two (2) Business Day, any Registered Holder with respect to all or a
portion of the Mortgage Loans owned by such Registered Holder and its agents,
accountants, attorneys, auditors, prospective purchasers, and third-party
contractors authorized by such Registered Holder will be permitted, during
normal business hours, to examine the Custodian's Mortgage Files, documents,
records and other papers in the possession of or under the control of the
Custodian relating to any or all of the Mortgage Loans for which the Custodian
holds the related Custodian's Mortgage File for such Registered Holder at the
expense of the inspecting party.

         8.       Counterparts.

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<PAGE>

         For the purpose of facilitating the execution of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original and all of which together shall constitute and be
one and the same instrument.

         9.       Periodic Statements.

         Upon the request of any Registered Holder at any other time with at
least two (2) Business Days' notice to the Custodian, the Custodian shall
provide to the Registered Holder with respect to all or a portion of the
Mortgage Loans owned by such Registered Holder, a list of all of the Mortgage
Loans for which the Custodian holds a Custodian's Mortgage File pursuant to this
Agreement. Such list may be in the form of a copy of the Mortgage Loan Schedule
with manual deletions to denote specifically any Mortgage Loans paid off,
liquidated or repurchased or otherwise released by the Custodian since the date
of this Agreement.

         10.      Governing Law.

         This Agreement shall be construed in accordance with the laws of the
State where MLCC is headquartered, and the obligations, rights and remedies of
the parties hereunder shall be determined in accordance with such laws.

         11.      Copies of Mortgage Documents.

         Upon the request of the Registered Holder with respect to all or a
portion of the Mortgage Loans owned by such Registered Holder, and at the cost
and expense of such party, the Custodian shall provide such Registered Holder
with copies or originals as provided in Section 21 hereof, of the Mortgage
Notes, Mortgages, Assignments and other documents to the extent that such
documents are part of the Custodian's Mortgage File relating to one or more of
the Mortgage Loans.

         12.      No Adverse Interest of Custodian.

         By execution of this Agreement, the Custodian represents, warrants and
covenants that it currently does not hold, and during the existence of this
Agreement shall not hold, any adverse interest, by way of security or otherwise,
in any Mortgage Loan.

         13.      Termination By Custodian.

         The Custodian may terminate its obligations under this Agreement upon
at least sixty (60) days' notice to the Registered Holder with respect to all or
a portion of the Mortgage Loans owned by such Registered Holder. The Custodian
shall then be responsible for all costs associated with such termination,
including costs associated with the transfer of the Custodial Files. If, in the
event of such termination, the Registered Holder shall appoint a successor
Custodian within such sixty day period, then upon such appointment and tender of
the related Custody Receipts, the Custodian shall promptly transfer to such
successor Custodian, as directed by the Registered Holder with respect to all or
a portion of the Mortgage Loans owned by such Registered Holder, all of the
Custodian's Mortgage Files being administered under this Agreement and shall
either complete the Assignments and endorse the Mortgage Notes as

                                      O-10
<PAGE>

directed by the Registered Holder or allow the Registered Holder or its agents
or attorneys, access to the Custodian's Mortgage Files for such purpose.
Notwithstanding the foregoing, if the Registered Holder fails to appoint a
Custodian within such sixty day period, the Custodian may petition any court of
competent jurisdiction for the appointment of a successor Custodian.

         14.      Termination of Agreement.

         This Agreement shall terminate upon the earlier of (a) the final
payment or other liquidation (or advance with respect thereto) of the last
Mortgage Loan, (b) the disposition of all property acquired upon foreclosure or
by deed in lieu of foreclosure of the last Mortgage Loan, or (c) the delivery by
the Custodian of the last Custodian's Mortgage File pursuant to the direction of
the Registered Holder hereunder. In such event the Registered Holder with
respect to all or a portion of the Mortgage Loans owned by such Registered
Holder shall so notify the Custodian and tender all Custody Receipts, and
thereafter all documents remaining in the Custodian's Mortgage Files shall be
forwarded to the Registered Holder.

         15.      Assignment of Agreement.

         The Registered Holder with respect to all or a portion of the Mortgage
Loans owned by such Registered Holder shall have the right to assign, in whole
or in part, its interests under this Agreement with respect to some or all of
the Mortgage Loans, and to designate any person or exercise any rights of the
Registered Holder hereunder, and such assignee or designee shall accede to the
rights and obligations hereunder of the Registered Holder with respect to such
Mortgage Loans. All references to the Registered Holder shall be deemed to
include its assignee or designee. In connection with any such assignment, the
Registered Holder with respect to all or a portion of the Mortgage Loans owned
by such Registered Holder may require that arrangements reasonably satisfactory
to it be made for the exchange of previously executed and outstanding Custody
Receipt(s) for a Custody Receipt representing such assignment. The Custodian may
not assign its interests or delegate its duties under this Agreement without the
prior written consent of the Registered Holder. In the event of any such
assignment or delegation, the Registered Holder shall not be responsible for any
fees of the successor Custodian in excess of the fees formerly paid by the
Registered Holder to the Custodian.

         16.      Notice.

         (a) All demands, notices and communications hereunder shall be in
writing and shall be sent to the other party at the address shown on the first
page hereof, or such other address as may hereafter be furnished to the other
party by written notice given to the other party hereto in a notice complying
with the terms and provisions of this Section 16 or on an Exhibit Six notice
provided pursuant to Section 4(c).

         (b) Any such demand, notice or communication hereunder shall be deemed
conclusively to have been given if personally delivered at or mailed by
registered mail, postage prepaid, and return receipt requested or transmitted by
telex, telegraph or facsimile transmission and by a similar writing to the other
party at its address as described in Subclause (a).

         17.      Indemnification.

                                      O-11
<PAGE>

         (a)      Neither the Custodian nor any of its directors, officers,
agents or employees, shall be liable for any action taken or omitted to be taken
by it or them hereunder or in connection herewith in good faith and believed by
it or them to be within the purview of this Agreement, except for its or their
own negligence, lack of good faith or willful misconduct.

         (b)      The Registered Holder and the Custodian agree to indemnify and
hold each other and their respective directors, officers, agents and employees
harmless against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever, including reasonable attorney's fees, that may be
imposed on, incurred by, or asserted against it or them in any action taken or
not taken by it or them hereunder. This indemnification shall include, but not
be limited to, the claims of third parties arising from or related to this
Agreement or the Mortgage Loans. This indemnification applies if such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses, disbursements, or claims were imposed on, incurred by or
asserted against the party seeking indemnification because of the breach of the
obligations, negligence, lack of good faith or willful misconduct of the other
party or any of its directors, officers, agents or employees. The foregoing
indemnification shall survive any termination of this Agreement and the
resignation or removal of the Custodian.

         (c)      In the event that the Custodian fails to produce a Mortgage
Note, Assignment of Mortgage or any other document related to a Mortgage Loan
that was in its possession pursuant to Section 2 within four (4) Business Days
after required or requested by the Registered Holder or its Servicer (a
"Custodial Delivery Failure"), and provided that (i) Custodian previously
delivered to the Registered Holder an Initial Custody Receipt which did not list
such document as an exception; (ii) such document is not outstanding pursuant to
a request for release in the form annexed hereto as Exhibit Five; and (iii) such
document was held by the Custodian on behalf of the Registered Holder, then the
Custodian shall: (a) with respect to any missing Mortgage Note, promptly deliver
to the Registered Holder upon request, a Lost Note Affidavit in the form of
Exhibit Seven hereto and (b) with respect to any missing document related to
such Mortgage Loan, including but not limited to a missing Mortgage Note, (1)
indemnify the Registered Holder, and its successor in interest, in accordance
with the succeeding paragraph and, (2) obtain and maintain an insurance bond in
the name of the Registered Holder, and its successors in interest and assigns,
insuring against any losses associated with the loss of such document, in an
amount equal to the then outstanding principal balance of the related Mortgage
Loan or such lesser amount requested by the Registered Holder, at the Registered
Holder's sole option, at any time the long term obligations of the Custodian are
rated below the second highest rating category of Moody's Investors Service,
Inc. or Standard and Poor's Ratings Group, a division of McGraw-Hill, Inc.

         (d)      The Custodian agrees to indemnify and hold the Registered
Holder, and its designees, harmless against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever, including reasonable
attorney's fees, that may be imposed on, incurred by, or asserted against it or
them in any way relating to or arising out of a Custodial Delivery Failure, as
defined herein, or the Custodian's negligence, lack of good faith or willful
misconduct. The forgoing indemnification shall survive any termination or
assignment of this Agreement.

                                      O-12
<PAGE>

         18.      Reliance of Custodian.

         In the absence of bad faith on the part of the Custodian, the Custodian
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any request, instructions, certificate,
opinion or other document furnished to the Custodian, reasonably believed by
Custodian to be genuine and to have been signed or presented by the proper party
or parties and conforming to the requirements of this Agreement. No
representations, warranties, covenants or obligations of the Custodian shall be
implied with respect to this Agreement or the Custodian's services hereunder.

         19.      Transmission of Custodian's Mortgage File.

         Written instructions as to the method of shipment and shipper(s)
Custodian is directed to utilize in connection with transmission of mortgage
files and loan documents in the performance of the Custodian's duties hereunder
shall be delivered by the Registered Holder (the "Requesting Party") with
respect to all or a portion of the Mortgage Loans owned by such Registered
Holder to the Custodian prior to any shipment of any mortgage files and loan
documents hereunder. The Registered Holder will arrange for the provision of
such services at its sole cost and expense (or, at Custodian's option, reimburse
Custodian for all costs and expenses incurred by Custodian consistent with such
instructions) and will maintain such insurance against loss or damage to
mortgage files and loan documents as the Requesting Party deems appropriate.
Without limiting the generality of the provisions of Paragraph 17 above, it is
expressly agreed that in no event shall the Custodian have any liability for any
losses or damages to any person, including, without limitation, the Requesting
Party, arising out of actions of the Custodian consistent with instructions of
the Requesting Party. In the absence of any written instructions with respect to
the transmission of the Custodian's Mortgage Files, the parties hereby agree
that the Custodian may utilize any nationally recognized overnight courier
service and shall be entitled to reimbursement from the Registered Holder.

         20.      Authorized Representative.

         Unless the Registered Holder shall have given the Custodian written
notice to the contrary, each individual designated as an authorized
representative of the Registered Holder with respect to all or a portion of the
Mortgage Loans owned by such Registered Holder, and the Custodian, respectively
(an "Authorized Representative"), is authorized to give and receive notices,
requests and instructions and to deliver certificates and documents in
connection with this Agreement on behalf of the Registered Holder with respect
to all or a portion of the Mortgage Loans owned by such Registered Holder, or
the Custodian, as the case may be, and the specimen signature for each such
Authorized Representative of MLCC as the initial Registered Holder and each such
Authorized Representative of the Custodian initially authorized hereunder is set
forth on Exhibit Three and Exhibit Four hereof, respectively. Any subsequent
Registered Holder of the Mortgage Loans shall provide the Custodian specimen
signatures for each Authorized Representative of such Registered Holder. From
time to time, the Registered Holder and the Custodian may, by delivering to the
other party a revised exhibit, change the information previously given pursuant
to this Paragraph, but each of the parties hereto shall be entitled to rely
conclusively on the then current exhibit until receipt of a superseding exhibit.

                                      O-13
<PAGE>

         21.      Release of Custodian's File for Servicing.

         Upon written request by the Registered Holder or its Servicer with
respect to all or a portion of the Mortgage Loans owned by such Registered
Holder, pursuant to the form attached hereto as Exhibit Five, the Custodian
shall use its best efforts to promptly, and in no event no later than two (2)
Business Days after receipt of such written request completed in accordance with
this Agreement, release to the Registered Holder or its Servicer for the
servicing or foreclosure of any of the Mortgage Loans the related Custodian's
Mortgage File. All Custodian's Mortgage Files so released to the Registered
Holder's Servicer shall be held by such Servicer in trust for the benefit of the
Registered Holder in accordance with the provisions of a servicing agreement
entered into between the Registered Holder and such Servicer. The Registered
Holder or its Servicer shall return to the Custodian the Custodian's Mortgage
File that has been released to the Registered Holder or its Servicer, when the
Registered Holder's or its Servicer's need therefor in connection with such
servicing or foreclosure no longer exists, unless the Mortgage Loan shall be
liquidated, in which case, upon receipt of a certification to this effect from
the Registered Holder or its Servicer to the Custodian in the form annexed
hereto as Exhibit Five, and the Custodian shall thereupon reflect any such
liquidation on the list of Mortgage Loans maintained by it pursuant to Paragraph
9 of this Agreement.

         Custodian shall not release more than 5% of the number of Mortgage
Loans at any time without additional written consent from Registered Holder.
This limitation shall not apply to the release of Custodial Files upon payment
in full.

         22.      Release of Custodian's Mortgage File for Payment.

         Upon the repurchase or substitution of any Mortgage Loan pursuant to a
Purchase Agreement or the payment in full of any Mortgage Loan, which shall be
evidenced by the Custodian's receipt of a request for release, receipt and
certification in the form annexed hereto as Exhibit Five (which certification
shall include a statement to the effect that all amounts received in connection
with such payment or repurchase have been credited to the account of the
Registered Holder), the Custodian shall use its best efforts promptly and in no
event later than two (2) Business Days after receipt of the written request
therefor completed in accordance with this Agreement, release the related
Custodian's Mortgage File to the Registered Holder or, at the request of the
Registered Holder, its Servicer, such repurchase thereupon to be noted on the
list maintained by the Custodian pursuant to Paragraph 9 of this Agreement.

         23.      Reproduction of Documents.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, and (b) certificates and other information previously or hereafter
furnished, may be reproduced by any photographic, photostatic, microfilm,
microcard, miniature photographic or other similar process. The parties agree
that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

                                      O-14
<PAGE>

         24.      Severability.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, the invalidity
of any such covenant, agreement, provision or term of this Agreement shall in no
way affect the validity or enforceability of the other provisions of this
Agreement; provided, however, that if the invalidity of any covenant, agreement
or provision shall deprive any party of the economic benefit intended to be
conferred by this Agreement, the parties shall negotiate in good faith to
develop a structure the economic effect of which is as nearly as possible the
same as the economic effect of this Agreement.

         25.      Amendment; Exhibits.

         This Agreement may be amended from time to time by the parties hereto
only by a written agreement signed by the parties hereto. The exhibits to this
Agreement are hereby incorporated and made a part hereof and are an integral
part of this Agreement.

         26.      Captions.

         Section headings are used herein for convenience only and do not limit
or expand the scope of the provisions herein.

Representations and Warranties of Custodian.

         Custodian represents and warrants to and covenants with MLCC as
follows:

Custodian is a corporation duly incorporated, validly existing and in good
standing under the laws of Minnesota.

Custodian has full corporate power to execute, deliver and perform the
obligations under this Agreement. MLCC may rely on the actions of Custodian
without further inquiry. No additional consent, authorization, or regulatory
filing is required in order for Custodian to legally perform its obligations.

This agreement constitutes a legal, valid and binding obligation of Custodian,
enforceable against Custodian in accordance with the terms herein except as
limited by bankruptcy, insolvency, liquidation or other similar laws affecting
generally the enforcement of creditor's rights.

                                      O-15
<PAGE>

         IN WITNESS WHEREOF, the Custodian and MLCC have caused this Agreement
to be executed as of the date and year first written above.

                           WELLS FARGO BANK MINNESOTA, N.A. ("Custodian")

                           By: ___________________________________________
                           Name: _________________________________________
                           Title: ________________________________________

                          MERRILL LYNCH CREDIT CORPORATION ("MLCC")

                           By: ___________________________________________
                           Name: _________________________________________
                           Title: ________________________________________

                                      O-16
<PAGE>

                                    EXHIBIT P

                       AMENDMENT NO. 1 CUSTODIAL AGREEMENT

                  Amendment No. 1, dated as of January 16, 2002 (this
"Amendment"), between Merrill Lynch Credit Corporation ("MLCC") and Wells Fargo
Bank Minnesota, N.A. (the "Custodian"), to the Custodial Agreement, dated as of
December 15, 2000 (the "Custodial Agreement").

                                    RECITALS

                  WHEREAS, MLCC may from time to time, purchase certain Mortgage
Loans from third party sellers pursuant to the terms and condition of certain
mortgage loan purchase agreements entered into between MLCC and such parties
(each, a "Purchase Agreement");

                  WHEREAS, pursuant to the Custodial Agreement, the Custodian
has agreed to take possession of mortgage notes evidencing Mortgage Loans and
certain other Mortgage Loan Documents delivered from time to time pursuant to
the Custodial Agreement;

                  WHEREAS, MLCC and the Custodian have agreed, subject to the
terms and conditions of this Amendment, that the Custodial Agreement be amended
to reflect the replacement of individual certifications with a Master Trust
Receipt; and

                  Accordingly, MLCC and Custodian hereby agree, in consideration
of the mutual promises and mutual obligations set forth herein, that the
Custodial Agreement is hereby amended as follows:

SECTION 1                  Definitions:

Section 1 of the Custodial Agreement is hereby amended by deleting the
definitions of "Custody Receipt", "Final Custody Receipt" and "Initial Custody
Receipt."

Section 1 of the Custodial Agreement is hereby amended by inserting the
following definition into its proper alphabetical order:

                   "Trust Receipt": A trust receipt in the form annexed hereto
                  as Exhibit One delivered to MLCC by the Custodian covering all
                  of the Mortgage Loans subject to this Custodial Agreement from
                  time to time, as reflected in the Mortgage Loan Schedule and
                  Exception Report attached thereto in accordance with Section
                  4(b).

Section 1 of the Custodial Agreement is hereby amended by deleting the
definition of " Exception Report" and replacing it in its entirety as follows:

                   "Exception Report": The Exception Report prepared by the
                  Custodian as an annex to the Trust Receipt which lists all
                  exceptions with respect to the Mortgage Loan Schedule and
                  attached thereto as Schedule B, as updated from time to time
                  in accordance with Section 4 hereof.

         (e) Trust Receipt. Section 4 is hereby deleted in its entirety and
replaced in its entirety with the following:

                                      P-1
<PAGE>

         (f) The Custodian shall review the documents delivered to it on each
Delivery Date and shall deliver to Registered Holder within the time frames
outlined in exhibit B to this amendment, but prior to Closing Date, a Mortgage
Loan Schedule and Exception Report with respect to the Mortgage Loans, and the
delivery of each Mortgage Loan Schedule and Exception Report by the Custodian
hereunder shall be the Custodian's certification that such Mortgage Loans are
held for MLCC (as Registered Holder) and that, as to each Mortgage Loan listed
in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full
or any Mortgage Loan specifically identified in such certification as not
covered by the Exception Report), (a) all documents described in Paragraphs 2(a)
through 2(e) and to the extent provided in the Custodian's Mortgage Files
Paragraphs 2(f) through 2(j), if applicable, of this Agreement are in its
possession, (b) such documents have reviewed by it and appear regular on their
face and relate to such Mortgage Loan, (c) based on its examination and only as
to the foregoing documents, the information set forth in terms (i), (ii), (iii)
excluding the zip code requirement, (iv), (vi), (vii), (viii) and (x) of the
definition of "Mortgage Loan Schedule" respecting such Mortgage Loan is correct,
and which as to items (iv) (vi), (viii) and (x) for adjustable rate Mortgage
Loan Documents and (d) each Mortgage Note has been endorsed and each Assignment
has been executed as provided in Paragraph 2 hereof. The Custodian shall
determine whether any discrepancy or deficiency exists with respect to a
Custodian's Mortgage File and shall note such discrepancy on the Exception
Report. The Custodian shall also note on such Exception Report, with respect to
each Mortgage Loan, whether a certified copy of the related Mortgage was
delivered to the Custodian in lieu of the original of such Mortgage, whether a
certified copy of an intervening assignment of the related Mortgage was
delivered to the Custodian in lieu of the original of such assignment, and
whether a preliminary title report with respect to such Mortgage Loan was
delivered to the Custodian in lieu of the original policy of title insurance.
Except as specifically provided above, the Custodian shall be under no duty to
review, inspect or examine such documents to determine that any of them are
enforceable or appropriate for their prescribed purpose.

         (g) On the date of this Amendment, the Custodian shall deliver to MLCC,
a Trust Receipt with a Mortgage Loan Schedule and Exception Report attached
thereto reflecting all Mortgage Loans subject to the Custodial Agreement as of
such date.

         (h) Each Mortgage Loan Schedule and Exception Report delivered by the
Custodian to MLCC shall supersede and cancel the Mortgage Loan Schedule and
Exception Report previously delivered by the Custodian to MLCC hereunder, and
shall replace the then existing Mortgage Loan Schedule and Exception Report to
be attached to the Trust Receipt. Notwithstanding anything to the contrary set
forth herein, in the event that the Mortgage Loan Schedule and Exception Report
attached to the Trust Receipt is different from the most recently delivered
Mortgage Loan Schedule and Exception Report, then the most recently delivered
Mortgage Loan Schedule and Exception Report shall control and be binding upon
the parties hereto.

         (i) The Custodian shall deliver to MLCC, electronically a Mortgage Loan
Schedule and Exception Report reflecting any additional Mortgage Loans received
and reviewed in accordance with the procedures set forth in Section 2(a) hereof.

         (j) Within five (5) days of receipt of written directions, in the form
attached hereto as Exhibit Six, from the Registered Holder with respect to all
or a portion of the Mortgage Loans

                                      P-2
<PAGE>

owned by such Registered Holder, the Custodian shall deliver all or any portion
of the Custodian's Mortgage Files held by it to Registered Holder, or to such
other party as the Registered Party may direct, as provided in Paragraph 19, at
the place indicated in any such written direction from the Registered Holder and
shall deliver to the Registered Holder a new Mortgage Loan Schedule and
Exception Report, with respect to the Custodian's Mortgage Files retained by the
Custodian. The Registered Holder may require the Custodian to complete the
endorsements on any Mortgage Notes in its possession and to complete the
Assignment of Mortgages prepared by the Servicer in blank, within a reasonable
period of time. The cost of this shall be reimbursed by the Registered Holder. A
list of authorized signatures for such written directions has been furnished to
the Custodian by the Registered Holder pursuant to Paragraph 20 hereof. Upon the
Custodian's receipt of such written notification from the Registered Holder that
the Registered Holder has sold any or all of the Mortgage Loans, which
notification shall be accompanied by a Mortgage Loan Schedule identifying such
Mortgage Loans, the Custodian shall change its records to reflect that such
purchaser is the owner of such Mortgage Loans and shall immediately, upon the
direction of such Registered Holder, either deliver the related Custodian's
Mortgage Files to such purchaser at the expense of such purchaser or issue a
Mortgage Loan Schedule and Exception Report in the name of such purchaser. Such
purchaser, as a Registered Holder, shall be required to simultaneously furnish
to the Custodian a list of authorized signatures for written directions pursuant
to Paragraph 20 hereof. The Custodian shall then deliver to the Registered
Holder a new Mortgage Loan Schedule and Exception Report, reflecting all
Mortgage Loans with respect to which the Custodian still holds the related
Custodian's Mortgage Files on behalf of the Registered Holder. The Registered
Holder and the Custodian agree herein that any purchaser of any or all of the
Mortgage Loans shall succeed to the rights and obligations of the Registered
Holder under this Agreement with respect to such Mortgage Loans upon receipt of
its own Trust Receipt and Mortgage Loan Schedule and Exception Report, as
further specified in Paragraph 15 hereof.

Termination of Agreement. Section 14 of the Custodial Agreement is hereby
amended by deleting "Custody Receipts" from the sixth line of the paragraph and
replacing it with "Mortgage Loan Schedule and Exception Report."

Assignment of Agreement. Section 15 of the Custodial Agreement is hereby deleted
in its entirety and replaced in its entirety with the following:

                  "The Registered Holder with respect to all or a portion of the
Mortgage Loans owned by such Registered Holder shall have the right to assign,
in whole or in part, its interests under this Agreement with respect to some or
all of the Mortgage Loans, and to designate any person (such person, an
"Assignee") or exercise any rights of the Registered Holder hereunder, and such
assignee or designee shall accede to the rights and obligations hereunder of the
Registered Holder with respect to such Mortgage Loans. All references to the
Registered Holder shall be deemed to include its assignee or designee. In
connection with any such assignment, the Registered Holder with respect to all
or a portion of the Mortgage Loans owned by such Registered Holder, the
Custodian shall issue (a) a Trust Receipt in the form of Exhibit One hereto with
a Mortgage Loan Schedule and Exception Report with respect to the Mortgage Loans
subject to such assignment to the Assignee and (b) an updated Mortgage Loan
Schedule and Exception Report to the assigning Registered Holder with respect to
the Mortgage Loans which the Custodian holds for the Registered Holder. The
Custodian may not assign its interest or delegate its duties under this
Agreement without the prior written consent of the Registered

                                      P-3
<PAGE>

Holder. In the event of any such assignment or delegation, the Registered Holder
shall not be responsible for any fees of the successor Custodian in excess of
the fees formerly paid by the Registered Holder to the Custodian."

Indemnification. Section 17 of the Custodial Agreement is hereby amended by
deleting "an Initial Custody Receipt" from the fifth line of subsection (c) and
replacing it with "a Mortgage Loan Schedule and Exception Report."

Exhibits. The Exhibits of the Custodial Agreement are hereby amended by deleting
"Exhibit One" and "Exhibit Two" and adding The Form of Trust Receipt attached as
Exhibit A to this Amendment as Exhibit One to the Custodial Agreement.

Delivered Documents. On the date hereof, MLCC shall have received the following
documents, each of which shall be satisfactory to the MLCC in form and
substance:

Amendment. This Amendment No. 1, executed and delivered by a duly authorized
officer of MLCC and the Custodian; and

Other Documents. Such other documents as the Purchaser or counsel to the
Purchaser may reasonably request.

Limited Effect. Except as expressly amended and modified by this Amendment, the
Custodial Agreement shall continue to be, and shall remain, in full force and
effect in accordance with its terms.

Counterparts. This Amendment may be executed by each of the parties hereto on
any number of separate counterparts, each of which shall be an original and all
of which taken together shall constitute one and the same instrument.

GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

                            [SIGNATURE PAGE FOLLOWS]

                                      P-4
<PAGE>

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

                           WELLS FARGO BANK MINNESOTA, N.A. ("CUSTODIAN")

                           By: ________________________________________________
                               Name: Sarah J. Kerr
                               Title: Assistant Vice President

                           MERRILL LYNCH CREDIT CORPORATION ("MLCC")

                           By: ________________________________________________
                               Name:
                               Title:

                                      P-5
<PAGE>

                                    EXHIBIT Q

                         OFFICER'S CERTIFICATE - TRUSTEE

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Re:      Trust Agreement (the "Agreement") dated as of November 1, 2003 between
         Merrill Lynch Mortgage Investors, Inc., as depositor and Wells Fargo
         Bank Minnesota, National Association, as trustee - Merrill Lynch
         Mortgage Investors Trust Series MLCC 2003-G Mortgage Loan Pass-Through
         Certificates

         I, [identify the certifying individual], a [title] of the Trustee
hereby certify to the Depositor, and its officers, directors and affiliates, and
with the knowledge and intent that they will rely upon this certification, that:

I have reviewed the Monthly Statements delivered pursuant to Section 4.02 the
Agreement since the last Officer's Certificate executed pursuant to Section 6.20
of the Agreement [or in the case of the first certification, since the Cut-off
Date] (the "Trustee Information").

Based on my knowledge, the information in the Monthly Statements , taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading as of the
date hereof;

Based on my knowledge, the Monthly Statements required to be prepared by the
Trustee under the Agreement has been prepared and provided in accordance with
the Agreement; and I am responsible for reviewing the activities performed by
the Trustee under the Agreement and the Trustee has, as of the date hereof
fulfilled its obligations under the Agreement and there are no significant
deficiencies relating to the Trustee's compliance with this Agreement.

Date:

                               Wells Fargo Bank Minnesota, National Association,
                               as Trustee

                               By:      ________________________________________
                               Name:    ________________________________________
                               Title:   ________________________________________

                                      Q-1
<PAGE>

                                    EXHIBIT R

                                   [Reserved]

                                      R-1
<PAGE>

                                   SCHEDULE A

                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                  Schedule A-1

<PAGE>

                                   SCHEDULE B

                  MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES
                                  OF THE SELLER

         The Seller hereby represents and warrants to the Depositor as to each
Mortgage Loan, as of the Closing Date as follows:

         (a) The information set forth in the Mortgage Loan Schedule is true and
correct in all material respects as of the Cut-off Date;

         (b) As of the related Closing Date, the Mortgage Loan is not delinquent
in payment more than 30 days and the Mortgage Loan has not been dishonored;
there are no material defaults under the terms of the Mortgage Loan; the Seller
has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to
the Mortgage, directly or indirectly, for the payment of any amount required by
the Mortgage Loan;

         (c) To the best of the Seller's knowledge, with respect to those
Mortgage Loans as to which the Mortgagors are required to deposit funds into an
escrow account for payment of taxes, assessments, insurance premiums and similar
items as they become due, there are no delinquent taxes, ground rents, water
charges, sewer rents, assessments or other outstanding charges which constitute
a lien on the related Mortgaged Property, and all escrow deposits have been
collected, are under the control of the Servicer, and have been applied to the
payment of such items in a timely fashion, in accordance with such Mortgage. No
escrow deposits or escrow payments or other charges or payments due the Servicer
have been capitalized under the related Mortgage or Mortgage Note. With respect
to those Mortgage Loans for which escrow deposits are not required, to the best
of the Seller's knowledge, there are no delinquent taxes or other outstanding
charges affecting the related Mortgaged Property which constitute a lien on the
related Mortgaged Property;

         (d) The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments contained in the Mortgage File, approved, if necessary, by the
insurer under any Primary Mortgage Insurance Policy and recorded in all places
necessary to maintain the first priority of the lien, the substance of which
waiver, alteration or modification is reflected on the Mortgage Loan Schedule.
No Mortgagor has been released, in whole or in part, except in connection with
an assumption agreement which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the Mortgage Loan Schedule;

         (e) Neither the Mortgage Note nor the Mortgage is subject to any right
of rescission, set-off, counterclaim or defense, including the defense of usury,
nor will the operation of any of the terms of the Mortgage Note and the
Mortgage, or the exercise of any right thereunder, render the Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury and to the best
of the Seller's

                                  Schedule B-1
<PAGE>

knowledge, no such right of rescission, set-off, counterclaim or defense has
been asserted by any Person with respect thereto;

         (f) All buildings upon the Mortgaged Property are required to be
insured by a generally acceptable insurer against loss by fire, hazards of
extended coverage and such other hazards as are customarily included in extended
coverage in the area where the Mortgaged Property is located, pursuant to
standard hazard insurance policies in an amount which is equal to the lesser of
(A) the replacement cost of the improvements securing such Mortgage Loan or (B)
the principal balance owing on such Mortgage Loan. To the best knowledge of the
Seller, all such standard hazard policies are in effect. On the date of
origination, such standard hazard policies contained a standard mortgagee clause
naming the Seller or the originator of the Mortgage Loan and their respective
successors in interest as mortgagee and, to the best knowledge of the Seller,
such clause is still in effect and, to the best of the Seller's knowledge, all
premiums due thereon have been paid. If the Mortgaged Property is located in an
area identified by the Federal Emergency Management Agency as having special
flood hazards under the National Flood Insurance Act of 1994, as amended, such
Mortgaged Property is covered by flood insurance in the amount required under
the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at Mortgagor's cost and expense, and
on the Mortgagor's failure to do so, authorizes the holder of the Mortgage to
maintain such insurance at Mortgagor's cost and expense and to seek
reimbursement therefor from the Mortgagor;

         (g) To the best of the Seller's knowledge, at the time of origination
of such Mortgage Loan and thereafter, all requirements of any federal, state or
local law including, without limitation, usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity or
disclosure laws required to be complied with by the Seller as the originator of
the Mortgage Loan and applicable to the Mortgage Loan have been complied with in
all material respects;

         (h) The Mortgage has not been satisfied as of the Closing Date,
canceled or subordinated, in whole, or rescinded, and the Mortgaged Property has
not been released from the lien of the Mortgage, in whole or in part (except for
a release that does not materially impair the security of the Mortgage Loan or a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule), nor to the best of
the Seller's knowledge has any instrument been executed that would effect any
such release, cancellation, subordination or rescission;

         (i) Ownership of the Mortgaged Property is held in fee simple or a
leasehold estate. With respect to Mortgage Loans that are secured by a leasehold
estate, (i) the lease is valid, in full force and effect, and conforms to all of
FNMA's requirements for leasehold estates; (ii) all rents and other payments due
under the lease have been paid; (iii) the lessee is not in default under any
provision of the lease; (iv) the term of the lease exceeds the maturity date of
the related Mortgage Loan by at least five (5) years; and (v) the terms of the
lease provide a Mortgagee with an opportunity to cure any defaults. Except as
permitted by the fourth sentence of this paragraph (i), the Mortgage is a valid,
subsisting and enforceable first lien on the Mortgaged Property, including all
buildings on the Mortgaged Property and all installations and mechanical,
electrical, plumbing, heating and air conditioning systems affixed to such
buildings,

                                  Schedule B-2
<PAGE>

and all additions, alterations and replacements made at any time with respect to
the foregoing securing the Mortgage Note's original principal balance. The
Mortgage and the Mortgage Note do not contain any evidence on their face of any
security interest or other interest or right thereto. Such lien is free and
clear of all adverse claims, liens and encumbrances having priority over the
first lien of the Mortgage subject only to (1) the lien of non-delinquent
current real property taxes and assessments not yet due and payable, (2)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording which are acceptable to
mortgage lending institutions generally, or which are specifically referred to
in the lender's title insurance policy delivered to the originator of the
Mortgage Loan and either (A) which are referred to or otherwise considered in
the appraisal made for the originator of the Mortgage Loan, or (B) which do not
in the aggregate adversely affect the appraised value of the Mortgaged Property
as set forth in such appraisal, and (3) other matters to which like properties
are commonly subject which do not in the aggregate materially interfere with the
benefits of the security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property. Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting and enforceable first lien and first priority security interest on
the property described therein. With respect to each Co-op Loan, the security
instruments create a valid, enforceable and subsisting first priority security
interest in the Co-op Lease and Co-op Stock securing the related Mortgage Note
subject to only to (a) the lien of the related cooperative for unpaid
assessments representing the Mortgagor's pro rata share of payments for a
blanket mortgage, if any, current and future real property taxes, insurance
premiums, maintenance fees and other assessments to which like collateral is
commonly subject, and (b) other matters to which the collateral is commonly
subject which do not materially interfere with the benefits of the security
intended to be provided; provided, however, that the related Co-op Loan may be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative
building;

         (j) The Mortgage Note is not subject to a third party's security
interest or other rights or interest therein;

         (k) The Mortgage Note and the related Mortgage are genuine and each is
the legal, valid and binding obligation of the maker thereof, enforceable in
accordance with its terms subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors. All parties to the
Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage
Note and the Mortgage have been duly and properly executed by such parties. The
proceeds of the Mortgage Loan have been fully disbursed and there is no
requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of
any escrow funds therefor have been complied with;

         (l) Seller has good title to, and the full right to transfer and sell,
the Mortgage Loan free and clear of any encumbrance, equity, lien, pledge,
charge, claim or security interest, including, to the best knowledge of the
Seller, any lien, claim or other interest arising by operation of law;

         (m) To the best of the Seller's knowledge, each Mortgage Loan is
covered by an ALTA lender's title insurance policy or other generally acceptable
form of policy or insurance acceptable to FNMA or FHLMC, issued by a title
insurer acceptable to FNMA or FHLMC and

                                  Schedule B-3
<PAGE>

qualified to do business in the jurisdiction where the Mortgaged Property is
located, insuring (subject to the exceptions contained in paragraph (ix)(1) (2)
and (3) above) the Seller, its successors and assigns, as to the first priority
lien of the Mortgage in the original principal amount of the Mortgage Loan. To
the best of the Seller's knowledge, the Seller is the sole insured of such
lender's title insurance policy, such title insurance policy has been duly and
validly endorsed to the purchaser or the assignment to the purchaser of the
Seller's interest therein does not require the consent of or notification to the
insurer and such lender's title insurance policy is in full force and effect and
will be in full force and effect upon the consummation of the transactions
contemplated by this Agreement. To the best of the Seller's knowledge, no claims
have been made under such lender's title insurance policy, and no prior holder
of the related Mortgage has done, by act or omission, anything which would
impair the coverage of such lender's title insurance policy;

         (n) To the best of the Seller's knowledge, there is no default, breach,
violation or event of acceleration existing under the Mortgage or the related
Mortgage Note and no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default, breach,
violation or event permitting acceleration, except for any Mortgage Loan payment
which is not late by more than 30 days, and the Seller has not waived any
default, breach, violation or event permitting acceleration;

         (o) To the best of the Seller's knowledge, there are no mechanics' or
similar liens or claims which have been filed for work, labor or material (and,
to the best of the Seller's knowledge, no rights are outstanding that under law
could give rise to such lien) affecting the related Mortgaged Property which are
or may be liens prior to, or equal or coordinate with, the lien of the related
Mortgage;

         (p) To the best of the Seller's knowledge, all improvements subject to
the Mortgage, lay wholly within the boundaries and building restriction lines of
the Mortgaged Property (and wholly within the project with respect to a
condominium unit) and no improvements on adjoining properties encroach upon the
Mortgaged Property except those which are insured against by the title insurance
policy referred to in paragraph (xiii) above and all improvements on the
property comply with all applicable zoning and subdivision laws and ordinances;

         (q) To the best of the Seller's knowledge, each Mortgage Loan was
originated by the Seller or by a savings association, a savings bank, a
commercial bank or similar banking institution that is supervised and examined
by a Federal or state banking authority, a mortgagee approved by the Secretary
of HUD pursuant to Section 203 and 211 of the National Housing Act, or a FNMA-
or FHLMC-approved seller. To the best of the Seller's knowledge, each Mortgage
Loan was underwritten generally in accordance with the Underwriting Standards as
in effect at the time of origination. To the best of the Seller's knowledge, the
Mortgage contains the usual and customary provision of the Seller at the time of
origination for the acceleration of the payment of the unpaid principal balance
of the Mortgage Loan if the related Mortgaged Property is sold without the prior
consent of the mortgagee thereunder;

         (r) The Mortgaged Property at origination or acquisition was and, to
the best of the Seller's knowledge, currently is free of material damage and
waste and at origination there was,

                                  Schedule B-4
<PAGE>

and to the best of the Seller's knowledge there currently is, no proceeding
pending for the total or partial condemnation thereof;

         (s) The related Mortgage contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (1) in the case of a Mortgage designated as a deed
of trust, by trustee's sale or judicial foreclosure, and (2) otherwise by
judicial foreclosure. The Seller has no knowledge of any homestead or other
exemption available to the Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose the
Mortgage;

         (t) To the best of the Seller's knowledge, if the Mortgage constitutes
a deed of trust, a trustee, duly qualified if required under applicable law to
act as such, has been properly designated and currently so serves and is named
in the Mortgage, and no fees or expenses are or will become payable to the
trustee under the deed of trust, except in connection with a trustee's sale or
attempted sale after default by the Mortgagor;

         (u) With respect to each Mortgage Loan, there is an appraisal on a
FNMA-approved form (or a narrative residential appraisal) of the related
Mortgaged Property that conforms to the applicable requirements of the Financial
Institutions Reform Recovery and Enforcement Act and that was signed prior to
the approval of such Mortgage Loan application by a qualified appraiser,
appointed by the Seller or the originator of such Mortgage Loan, as appropriate,
who has no interest, direct or indirect, in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by the
approval or disapproval of such Mortgage Loan;

         (v) No Mortgage Loan contains "subsidized buydown" or "graduated
payment" features;

         (w) The Mortgaged Property is a single-family (one- to four-unit)
dwelling residence erected thereon, or an individual condominium unit in a
condominium, or a Co-operative Apartment or an individual unit in a planned unit
development or in a de minimis planned unit development as defined by FNMA. No
such residence is a mobile home or a manufactured dwelling which is not
permanently attached to the land;

         (x) No Mortgage Loan provides for negative amortization;

         (y) No Mortgage Loan had an original term in excess of thirty (30)
years;

         (z) [RESERVED]

         (aa) As of the Closing Date, each Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G(a)(3) of the Code (without regard
to Treasury Regulations Section 1.860G-2(f) or any similar rule that provides
that a defective obligation is a qualified mortgage for a temporary period);

         (bb) As of the Closing Date, no Mortgage Loan provides for interest
other than at either (x) a single fixed rate in effect throughout the term of
the Mortgage Loan or (y) a single "variable rate" (within the meaning of
Treasury Regulations Section 1.860G-1(a)(3)) in effect throughout the term of
the Mortgage Loan.

                                  Schedule B-5
<PAGE>

         (cc) As of the Closing Date, no Mortgage Loan is the subject of pending
or final foreclosure proceedings.

         (dd) Based on delinquencies in payment on the Mortgage Loans as of the
Closing Date, Seller would not initiate foreclosure proceedings with respect to
any of the Mortgage Loans prior to the next scheduled payment date on such
Mortgage Loan.

         (ee) Each Mortgage Note is comprised of one original promissory note
and each such promissory note constitutes an "instrument" for purposes of
section 9-102(a)(65) of the UCC.

         (ff) No Mortgage Loan is covered by the Home Ownership and Equity
Protection Act of 1994 ("HOEPA") and no Mortgage Loan is "high cost" as defined
by any applicable federal, state or local predatory or abusive lending law. Any
breach of this representation shall be deemed to materially and adversely affect
the value of the Mortgage Loan and shall require a repurchase of the affected
Mortgage Loan.

         (gg) Each Mortgage Loan at the time it was made complied in all
material respects with applicable local, state and federal laws, including, but
not limited to, all applicable predatory or abusive lending laws.

                                  Schedule B-6<PAGE>

                                  EXHIBIT 10.3

                         AGREEMENT AND WAIVER OF RIGHTS
            UNDER SECTION 203 OF THE DELAWARE GENERAL CORPORATION LAW

<PAGE>

                         AGREEMENT AND WAIVER OF RIGHTS
            UNDER SECTION 203 OF THE DELAWARE GENERAL CORPORATION LAW

         THIS AGREEMENT AND WAIVER OF RIGHTS UNDER SECTION 203 OF THE DELAWARE
GENERAL CORPORATION LAW ("Agreement") is made effective as of the ___ day of
July, 2003, by and among Zions First National Bank ("Zions"), Atlas Management
Partners LLC ("Atlas") and MACC Private Equities Inc. ("Company").

         WHEREAS, Zions beneficially owns approximately 34.5% of the issued and
outstanding shares of common stock of the Company (the "Shares") and desires to
liquidate its investment in the Company;

         WHEREAS, Section 203 of the Delaware General Business Corporation Law
("Section 203") contains restrictions on any business combination (as such term
is defined therein, hereinafter referenced as a "Business Combinations") with
interested shareholders (as such term is defined therein); and

         WHEREAS, Atlas and its affiliated persons (as that term is defined in
the Investment Company Act of 1940, hereinafter "Affiliates") may currently own
shares of the Company and has expressed an interest in purchasing the Shares
owned by Zions and both Zions and Atlas have requested that the Company waive
the protections of Section 203 prior to any consummation of any such purchase;

         NOW, THEREFORE, in consideration of the mutual promises contained
herein, the parties mutually agree as follows:

         1.       Waiver. Subject to the condition set forth in Section 2 of
this Agreement, the Company hereby approves the anticipated purchase of the
Shares by Atlas and its Affiliates (the "Purchase") and waives the restrictions
of Section 203 with respect to the Purchase. The approval and waiver contained
in this Agreement are provided in accordance with the action of the Company's
Board of Directors at a meeting held July 10, 2003. This Agreement constitutes
conditional approval of the Purchase for purposes of Section 203 and represents
action intended ensure that the restrictions on Business Combinations set forth
in Section 203 do not and will not apply to Atlas by reason of the execution or
delivery of this Agreement or the consummation of the Purchase.

         2.       Condition. The waiver described above is granted on the
condition that for a period of three years from the date of the Purchase, Atlas
and its Affiliates shall not enter into any Business Combination with the
Company unless it first obtains the approval of no less than a majority of the
Company's disinterested directors. For purposes of this Agreement, a director
shall be considered disinterested only if the director and each of his or her
Affiliates, and each member of the family (spouse, parent, parent-in-law
sibling, sibling-in-law, child, step-child, grandchild or step-grandchild or
person with a similar relationship) of such director or Affiliate has no direct
or indirect interest in the Business Combination being considered (other than as
a director of the Company or as a shareholder of the Company beneficially owning
less than 10%

<PAGE>

of the Company stock outstanding). Atlas and Zions each agree that all Shares
which are transferred upon consummation of the Purchase shall be transferred
subject to the restriction described in this Section 2. Any attempted Business
Combination effected without the prior consent required by this Section 2 shall
be null and void. From and after the date of any such attempted Business
Combination, the Shares shall be subject to the restrictions of Section 203
without regard to this Agreement.

         3.       Release. In order to induce the Company to enter into this
Agreement, Atlas and Zions hereby release the Company, its officers and
directors, from any and all liabilities and claims relating to the waiver
described in this Agreement or relating to any other acts or omissions of the
Company or its agents occurring on or prior to the date of this Agreement.

         4.       Applicable Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware.

         5.       Binding Provisions The covenants and agreements contained
herein shall be binding upon, and inure to the benefit of and be enforceable by
the parties and their respective successors and assigns. Any assignee or
transferee of the Shares who may become an interested shareholder of the Company
under Section 203 shall not be considered a beneficiary of this Agreement and
shall be subject to the restrictions of Section 203 without regard to this
Agreement.

         6.       Counterparts This Agreement may be executed in several
counterparts, all of which together shall constitute one agreement binding on
all parties hereto, notwithstanding that all the parties have not signed the
same counterpart. A facsimile transmission by a party of a signed signature page
hereof shall have the same effect as delivery by such party of a manually
executed original counterpart hereof.

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement effective as of the date first above written.

MACC PRIVATE EQUITIES, INC.                ZIONS FIRST NATIONAL BANK

By:     /s/  Paul M. Bass, Jr.             By:    /s/  W. David Hemingway
   ----------------------------------         ----------------------------------
         Paul M. Bass, Jr.
         Chairman, Board of Directors          Executive Vice President
                                               (title)
ATLAS MANAGEMENT PARTNERS LLC

By:     /s/  Kent Madsen
   ----------------------------------
    Managing Member
    (title)

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