Document:

RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.

                                  as Depositor

                                       and

                            WILMINGTON TRUST COMPANY

                                as Owner Trustee

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

                      AMENDED AND RESTATED TRUST AGREEMENT

                           Dated as of March 26, 2002
                   ------------------------------------------

                         Home Loan-Backed Certificates,
                                 Series 2002-HI2

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<TABLE>
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                                      Table of Contents

Section                                                                                   Page

<S>     <C>                                                                                 <C>
Section 1.01. Definitions....................................................................1

Section 1.02. Other Definitional Provisions..................................................1

Section 2.01. Name...........................................................................2

Section 2.02. Office.........................................................................2

Section 2.03. Purposes and Powers............................................................2

Section 2.04. Appointment of Owner Trustee...................................................3

Section 2.05. Initial Capital Contribution of Owner Trust Estate.............................3

Section 2.06. Declaration of Trust...........................................................3

Section 2.07. Liability of the Holders of the Certificates...................................3

Section 2.08. Title to Trust Property........................................................3

Section 2.09. Situs of Trust.................................................................4

Section 2.10. Representations and Warranties of the Depositor................................4

Section 2.11. Payment of Trust Fees..........................................................5

Section 3.01. Conveyance of the Home Loans...................................................6

Section 3.02. Initial Ownership..............................................................6

Section 3.03. The Certificates...............................................................6

Section 3.04. Authentication of Certificates.................................................7

Section 3.05. Registration of and Limitations on Transfer and Exchange of Certificates.......7

Section 3.06. Mutilated, Destroyed, Lost or Stolen Certificates..............................9

Section 3.07. Persons Deemed Certificateholders.............................................10

                                             -i-

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Section 3.08. Access to List of Certificateholders' Names and Addresses.....................10

Section 3.09. Maintenance of Office or Agency...............................................10

Section 3.10. Certificate Paying Agent......................................................10

Section 3.11. Cooperation...................................................................12

Section 4.01. General Authority.............................................................13

Section 4.02. General Duties................................................................13

Section 4.03. Action upon Instruction.......................................................13

Section 4.04. No Duties Except as Specified under Specified Documents or in Instructions....14

Section 4.05. Restrictions..................................................................14

Section 4.06. Prior Notice to Certificateholders and the Credit Enhancer with Respect to Certain
        Matters.............................................................................14

Section 4.07. Action by Certificateholders with Respect to Certain Matters..................15

Section 4.08. Action by Certificateholders with Respect to Bankruptcy.......................15

Section 4.09. Restrictions on Certificateholders' Power.....................................15

Section 4.10. Majority Control..............................................................16

Section 4.11. Doing Business in Other Jurisdictions.........................................16

Section 5.01. Distributions.................................................................17

Section 5.02. Method of Payment.............................................................17

Section 5.03. Signature on Returns..........................................................18

Section 5.04. Statements to Certificateholders..............................................18

Section 5.05. Tax Reporting.................................................................18

Section 6.01. Acceptance of Trusts and Duties...............................................19

                                             -ii-

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Section 6.02. Furnishing of Documents.......................................................20

Section 6.03. Representations and Warranties................................................20

Section 6.04. Reliance; Advice of Counsel...................................................21

Section 6.05. Not Acting in Individual Capacity.............................................21

Section 6.06. Owner Trustee Not Liable for Certificates or Related Documents................21

Section 6.07. Owner Trustee May Own Certificates and Notes..................................22

Section 7.01. Owner Trustee's Fees and Expenses.............................................23

Section 7.02.  Indemnification..............................................................23

Section 8.01. Termination of Trust Agreement................................................25

Section 9.01.  Eligibility Requirements for Owner Trustee...................................27

Section 9.02. Replacement of Owner Trustee..................................................27

Section 9.03. Successor Owner Trustee.......................................................28

Section 9.04. Merger or Consolidation of Owner Trustee......................................28

Section 9.05. Appointment of CoTrustee or Separate Trustee..................................28

Section 10.01. Amendments...................................................................30

Section 10.02. No Legal Title to Owner Trust Estate.........................................31

Section 10.03. Limitations on Rights of Others..............................................31

Section 10.04. Notices......................................................................32

Section 10.05. Severability.................................................................32

Section 10.06. Separate Counterparts........................................................32

Section 10.07. Successors and Assigns.......................................................32

                                            -iii-

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Section 10.08. No Petition..................................................................32

Section 10.09. No Recourse..................................................................33

Section 10.10. Headings.....................................................................33

Section 10.11. GOVERNING LAW................................................................33

Section 10.12. Integration..................................................................33

Section 10.13. Rights of Credit Enhancer to Exercise Rights of Certificateholders...........33

                                             -iv-

<PAGE>

EXHIBIT

Exhibit A - Form of Certificate............................................................A-1
Exhibit B - Certificate of Trust of Residential Home Loan Trust 2002-HI2...................B-1
Exhibit C - Form of 144A Investment Representation.........................................C-1
Exhibit D - Form of Investor Representation Letter.........................................D-1
Exhibit E - Form of Transferor Representation Letter.......................................E-1
Exhibit F - Form of Certificate of Non-Foreign Status......................................F-1
Exhibit G - Form of ERISA Representation Letter............................................G-1

</TABLE>

                                             -v-

<PAGE>

        This Amended and Restated  Trust  Agreement,  dated as of March 26, 2002
(as amended  from time to time,  this "Trust  Agreement"),  between  RESIDENTIAL
FUNDING MORTGAGE SECURITIES II, INC., a Delaware corporation,  as depositor (the
"Depositor") and WILMINGTON TRUST COMPANY,  a Delaware banking  corporation,  as
owner trustee (the "Owner Trustee"),

                                       WITNESSETH THAT:

        WHEREAS,  the  Depositor  and the  Owner  Trustee  entered  into a trust
agreement  dated as of March 15, 2002,  in  connection  with the  formation of a
Delaware business trust (the "Original Trust Agreement");

     WHEREAS,  the Depositor and the Owner Trustee wish to amend and restate the
Original Trust Agreement;

        NOW,  THEREFORE,  in  consideration  of  the  mutual  agreements  herein
contained, the Depositor and the Owner Trustee agree as follows:

                                    ARTICLE I

                                   Definitions

        Section  1.01.  Definitions.  For all purposes of this Trust  Agreement,
except as otherwise  expressly  provided herein or unless the context  otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in Appendix A to the Indenture  dated March 26, 2002 (the
"Indenture"),  between Home Loan Trust 2002-HI2,  as issuer,  and JPMorgan Chase
Bank, as indenture  trustee.  All other capitalized terms used herein shall have
the meanings specified herein.

        Section 1.02. Other Definitional Provisions.

        (a) All terms  defined in this Trust  Agreement  shall have the  defined
meanings  when  used in any  certificate  or other  document  made or  delivered
pursuant hereto unless otherwise defined therein.

        (b) As used in this  Trust  Agreement  and in any  certificate  or other
document  made or delivered  pursuant  hereto or thereto,  accounting  terms not
defined in this Trust  Agreement or in any such  certificate or other  document,
and  accounting  terms  partly  defined in this Trust  Agreement  or in any such
certificate  or  other  document  to the  extent  not  defined,  shall  have the
respective   meanings  given  to  them  under  generally   accepted   accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms  under  generally  accepted  accounting  principles,  the
definitions  contained  in this Trust  Agreement or in any such  certificate  or
other document shall control.

                                             -1-

<PAGE>

        (c) The words  "hereof,"  "herein,"  "hereunder"  and  words of  similar
import when used in this Trust  Agreement shall refer to this Trust Agreement as
a whole and not to any particular  provision of this Trust  Agreement;  Article,
Section and Exhibit references  contained in this Trust Agreement are references
to  Articles,  Sections  and  Exhibits  in or to  this  Trust  Agreement  unless
otherwise  specified;  and the term  "including"  shall mean "including  without
limitation".

        (d) The definitions  contained in this Trust Agreement are applicable to
the singular as well as the plural  forms of such terms and to the  masculine as
well as to the feminine and neuter genders of such terms.

        (e) Any agreement,  instrument or statute  defined or referred to herein
or in any instrument or certificate  delivered in connection herewith means such
agreement,  instrument  or statute  as from time to time  amended,  modified  or
supplemented and includes (in the case of agreements or instruments)  references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                                  Organization

        Section  2.01.  Name.  The trust created  hereby (the "Trust")  shall be
known as "Home Loan Trust 2002-HI2," in which name the Owner Trustee may conduct
the business of the Trust,  make and execute  contracts and other instruments on
behalf of the Trust and sue and be sued.

        Section  2.02.  Office.  The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written  notice to the  Certificateholders
and the Depositor.

        Section 2.03. Purposes and Powers. The purpose of the Trust is to engage
in the following activities:(i) to issue the Notes pursuant to the Indenture and
the Certificates  pursuant to this Trust Agreement and to sell the Notes and the
Certificates;  (ii) to  purchase  the Home Loans and to pay the  organizational,
start-up  and  transactional  expenses  of the Trust;  (iii) to  assign,  grant,
transfer,  pledge and convey the Home Loans  pursuant  to the  Indenture  and to
hold, manage and distribute to the  Certificateholders  pursuant to Section 5.01
any  portion of the Home Loans  released  from the Lien of, and  remitted to the
Trust pursuant to, the Indenture; (iv) to enter into and perform its obligations
under the Basic  Documents to which it is to be a party;  (v) to engage in those
activities,  including entering into agreements, that are necessary, suitable or
convenient to accomplish  the foregoing or are  incidental  thereto or connected
therewith,  including, without limitation, to accept additional contributions of
equity that are not subject to the Lien of the  Indenture;  and (vi)  subject to
compliance with the Basic  Documents,  to engage in such other activities as may
be required in connection  with  conservation  of the Owner Trust Estate and the
making of distributions to the Certificateholders and the Noteholders. The Trust
is hereby authorized to engage in the foregoing

                                             -2-

<PAGE>

activities.  The Trust shall not engage in any activity other than in connection
with the  foregoing or other than as required or authorized by the terms of this
Trust Agreement or the Basic Documents while any Note is outstanding without the
consent of the Holders of a majority of the Certificate  Percentage  Interest of
the Certificates and the Indenture Trustee.

         Section  2.04.  Appointment  of Owner  Trustee.  The  Depositor  hereby
appoints  the Owner  Trustee as trustee  of the Trust  effective  as of the date
hereof, to have all the rights, powers and duties set forth herein.

        Section 2.05.  Initial Capital  Contribution of Owner Trust Estate.  The
Depositor hereby sells, assigns, transfers,  conveys and sets over to the Trust,
as of the date  hereof,  the sum of $1. The Owner  Trustee  hereby  acknowledges
receipt in trust from the  Depositor,  as of the date hereof,  of the  foregoing
contribution,  which shall  constitute the initial corpus of the Trust and shall
be deposited in the  Certificate  Distribution  Account.  The Owner Trustee also
acknowledges on behalf of the Issuer, the receipt in trust of the Home Loans and
a Credit Enhancement  Instrument assigned to the Trust pursuant to Section 3.01,
which shall constitute the Owner Trust Estate.

        Section 2.06.  Declaration of Trust.  The Owner Trustee hereby  declares
that it shall  hold the Owner  Trust  Estate in trust  upon and  subject  to the
conditions  set forth herein for the use and benefit of the  Certificateholders,
subject to the  obligations  of the Trust under the Basic  Documents.  It is the
intention of the parties hereto that the Trust constitute a business trust under
the  Business  Trust  Statute  and that  this  Trust  Agreement  constitute  the
governing  instrument of such business  trust.  Effective as of the date hereof,
the Owner Trustee shall have all rights,  powers and duties set forth herein and
in the Business Trust Statute with respect to accomplishing  the purposes of the
Trust. It is the intention of the parties hereto that, solely for federal, state
and local income and franchise  tax  purposes,  the Trust shall be treated as an
entity  disregarded  from the sole  holder  of 100% of the  Certificates,  which
Certificates  shall initially be owned by the Depositor or an affiliate thereof,
and the provisions of this Trust  Agreement shall be interpreted to further this
intention.  If more than one person owns the Certificates for federal income tax
purposes,  then it is the  intention  of the  parties  hereto,  that  solely for
federal,  state and local income and  franchise  tax purposes the Trust shall be
treated as a  partnership,  with the assets of the  partnership  being the Trust
Estate,  the partners of the partnership  being the  Certificateholders  and the
Notes being debt of the  partnership  and the provisions of this Trust Agreement
shall be interpreted to further this intention.  The parties agree that,  unless
otherwise  required by appropriate tax authorities,  the Owner Trustee will file
or cause to be filed annual or other necessary returns,  reports and other forms
consistent  with the  characterization  of the Owner  Trust as an entity  wholly
owned by the Depositor or an affiliate  thereof,  or, if two or more persons own
the Certificates, as a partnership for such tax purposes.

        Section 2.07. Liability of the Holders of the Certificates.  The Holders
of the  Certificates  shall be liable for any entity level taxes  imposed on the
Owner Trust.

     Section  2.08.  Title to Trust  Property.  Legal  title to the Owner  Trust
Estate  shall be vested at all times in the  Trust as a  separate  legal  entity
except where applicable law in any jurisdiction

                                             -3-

<PAGE>

requires  title to any part of the Owner Trust  Estate to be vested in a trustee
or  trustees,  in which  case  title  shall be  deemed to be vested in the Owner
Trustee, a co-trustee and/or a separate trustee, as the case may be.

        Section 2.09. Situs of Trust. The Trust will be located and administered
in the State of Delaware.  All bank accounts  maintained by the Owner Trustee on
behalf of the Trust  shall be located in the State of  Delaware  or the State of
New  York.  The Trust  shall not have any  employees  in any  state  other  than
Delaware;  provided, however, that nothing herein shall restrict or prohibit the
Owner Trustee from having  employees  within or without the State of Delaware or
taking  actions  outside the State of  Delaware in order to comply with  Section
2.03.  Payments will be received by the Trust only in Delaware or New York,  and
payments  will be made by the Trust  only from  Delaware  or New York.  The only
office of the Trust will be at the Corporate Trust Office in Delaware.

        Section  2.10.  Representations  and  Warranties of the  Depositor.  The
Depositor hereby represents and warrants to the Owner Trustee that:

     (i) The Depositor is duly  organized and validly  existing as a corporation
in good  standing  under  the laws of the  State of  Delaware,  with  power  and
authority to own its properties  and to conduct its business as such  properties
are currently owned and such business is presently conducted.

     (ii)  The  Depositor  is  duly  qualified  to  do  business  as  a  foreign
corporation  in good  standing  and has  obtained  all  necessary  licenses  and
approvals in all  jurisdictions  in which the ownership or lease of its property
or the conduct of its business  shall require such  qualifications  and in which
the failure to so qualify would have a material  adverse effect on the business,
properties,  assets or condition  (financial  or other) of the Depositor and the
ability of the Depositor to perform under this Trust Agreement.

     (iii) The Depositor has the power and authority to execute and deliver this
Trust  Agreement  and to carry out its terms;  the  Depositor has full power and
authority  to sell  and  assign  the  property  to be sold and  assigned  to and
deposited  with  the  Trust  as part of the  Trust  and the  Depositor  has duly
authorized  such sale and  assignment  and deposit to the Trust by all necessary
corporate  action;  and the  execution,  delivery and  performance of this Trust
Agreement have been duly authorized by the Depositor by all necessary  corporate
action.

     (iv)  The  consummation  of the  transactions  contemplated  by this  Trust
Agreement and the  fulfillment of the terms hereof do not conflict with,  result
in any  breach of any of the terms and  provisions  of, or  constitute  (with or
without notice or lapse of time) a default under,  the articles of incorporation
or bylaws of the Depositor,  or any indenture,  agreement or other instrument to
which  the  Depositor  is a party or by which it is  bound;  nor  result  in the
creation or  imposition of any Lien upon any of its  properties  pursuant to the
terms of any such indenture,  agreement or other instrument (other than pursuant
to the Basic Documents);  nor violate any law or, to the best of the Depositor's
knowledge, any order, rule or regulation applicable to the Depositor

                                             -4-

<PAGE>

of any court or of any federal or state regulatory body,  administrative  agency
or other governmental  instrumentality having jurisdiction over the Depositor or
its properties.

        Section  2.11.  Payment of Trust Fees.  The Owner  Trustee shall pay the
Trust's  fees and  expenses  incurred  with  respect to the  performance  of the
Trust's duties under the Indenture.

                                             -5-

<PAGE>

                                   ARTICLE III

                          Conveyance of the Home Loans;
                                  Certificates

        Section 3.01. Conveyance of the Home Loans. The Depositor,  concurrently
with the execution and delivery hereof,  does hereby transfer,  convey, sell and
assign to the Trust, on behalf of the Holders of the Notes and the  Certificates
and the Credit Enhancer,  without recourse, all its right, title and interest in
and to the Home Loans. The Depositor will also provide the Trust with the Credit
Enhancement Instrument.

        The parties  hereto  intend that the  transaction  set forth herein be a
sale by the  Depositor  to the Trust of all of its right,  title and interest in
and to the Home Loans. In the event that the transaction set forth herein is not
deemed  to be a sale,  the  Depositor  hereby  grants  to the  Trust a  security
interest  in all of its  right,  title and  interest  in, to and under the Owner
Trust Estate, all distributions thereon and all proceeds thereof; and this Trust
Agreement shall constitute a security agreement under applicable law.

        Section 3.02. Initial Ownership.  Upon the formation of the Trust by the
contribution by the Depositor  pursuant to Section 2.05 and until the conveyance
of the Home Loans pursuant to Section 3.01 and the issuance of the Certificates,
the Depositor shall be the sole Certificateholder.

     Section 3.03. The Certificates. The Certificates shall be issued in minimum
denominations  of a  Certificate  Percentage  Interest of 10.0000%  and integral
multiples of 0.0001% in excess thereof.

        The  Certificates  shall be executed on behalf of the Trust by manual or
facsimile   signature  of  an  authorized  officer  of  the  Owner  Trustee  and
authenticated in the manner provided in Section 3.04.  Certificates  bearing the
manual or facsimile  signatures of  individuals  who were, at the time when such
signatures  shall have been affixed,  authorized to sign on behalf of the Trust,
shall be validly  issued and  entitled to the  benefit of this Trust  Agreement,
notwithstanding  that such individuals or any of them shall have ceased to be so
authorized prior to the  authentication and delivery of such Certificates or did
not  hold  such  offices  at the date of  authentication  and  delivery  of such
Certificates. A Person shall become a Certificateholder and shall be entitled to
the rights and subject to the obligations of a Certificateholder  hereunder upon
such Person's acceptance of a Certificate duly registered in such Person's name,
pursuant to Section 3.05.

        A transferee of a Certificate shall become a Certificateholder and shall
be entitled to the rights and subject to the obligations of a  Certificateholder
hereunder upon such transferee's  acceptance of a Certificate duly registered in
such  transferee's  name pursuant to and upon satisfaction of the conditions set
forth in Section 3.05.

                                             -6-

<PAGE>

        Section 3.04.  Authentication  of  Certificates.  Concurrently  with the
acquisition of the Home Loans by the Trust, the Owner Trustee or the Certificate
Paying Agent shall cause the Certificates in an initial  Certificate  Percentage
Interest  of 100.00% to be executed  on behalf of the Trust,  authenticated  and
delivered to or upon the written order of the Depositor,  signed by its chairman
of the board,  its president or any vice president,  without  further  corporate
action by the  Depositor,  in authorized  denominations.  No  Certificate  shall
entitle its holder to any benefit under this Trust Agreement or be valid for any
purpose  unless  there  shall  appear  on  such  Certificate  a  certificate  of
authentication substantially in the form set forth in Exhibit A, executed by the
Owner  Trustee  or the  Certificate  Paying  Agent,  by manual  signature;  such
authentication shall constitute  conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder.  All Certificates shall be
dated the date of their authentication.

     Section 3.05.  Registration  of and Limitations on Transfer and Exchange of
Certificates.

        (a) The  Certificate  Registrar  shall keep or cause to be kept,  at the
office or agency maintained pursuant to Section 3.09, a Certificate  Register in
which,  subject  to  such  reasonable  regulations  as  it  may  prescribe,  the
Certificate  Registrar shall provide for the registration of Certificates and of
transfers  and  exchanges of  Certificates  as herein  provided.  The  Indenture
Trustee shall be the initial Certificate Registrar. If the Certificate Registrar
resigns or is removed,  the Owner Trustee shall appoint a successor  Certificate
Registrar.

        Subject  to  satisfaction  of  the  conditions  set  forth  below,  upon
surrender  for  registration  of  transfer of any  Certificate  at the office or
agency  maintained  pursuant to Section 3.09,  the Owner Trustee shall  execute,
authenticate  and  deliver  (or shall  cause the  Certificate  Registrar  as its
authenticating agent to authenticate and deliver), in the name of the designated
transferee  or  transferees,   one  or  more  new   Certificates  in  authorized
denominations of a like aggregate amount dated the date of authentication by the
Owner Trustee or any authenticating agent. At the option of a Certificateholder,
Certificates may be exchanged for other Certificates of authorized denominations
of a like aggregate amount upon surrender of the Certificates to be exchanged at
the office or agency maintained pursuant to Section 3.09.

        Every Certificate  presented or surrendered for registration of transfer
or exchange  shall be  accompanied  by a written  instrument of transfer in form
satisfactory to the Certificate Registrar duly executed by the Certificateholder
or  such   Certificateholder's   attorney  duly  authorized  in  writing.   Each
Certificate  surrendered  for  registration  of transfer  or  exchange  shall be
cancelled  and  subsequently   disposed  of  by  the  Certificate  Registrar  in
accordance with its customary practice.

        No service  charge  shall be made for any  registration  of  transfer or
exchange of Certificates, but the Owner Trustee or 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 transfer or exchange of Certificates.

                                             -7-

<PAGE>

        Except as described  below,  no transfer of any  Certificate or interest
therein  shall be made to any Person that is not a United  States  Person.  Each
Certificateholder  shall establish its  non-foreign  status by submitting to the
Certificate  Paying  Agent an IRS Form W-9 and the  Certificate  of Non- Foreign
Status set forth in Exhibit F hereto.

        A  Certificate  may be  transferred  to a  Certificateholder  unable  to
establish its non-foreign status as described in the preceding paragraph only if
such Certificateholder  provides an Opinion of Counsel, which Opinion of Counsel
shall not be an  expense  of the  Trust,  the  Owner  Trustee,  the  Certificate
Registrar  or the  Depositor,  satisfactory  to the  Depositor  and  the  Credit
Enhancer,  that such  transfer  (1) will not  affect the tax status of the Owner
Trust and (2) will not adversely affect the interests of any  Certificateholder,
Noteholder or the Credit Enhancer, including, without limitation, as a result of
the  imposition  of any United  States  federal  withholding  taxes on the Trust
(except to the extent that such  withholding  taxes would be payable solely from
amounts   otherwise   distributable   to  the  Certificate  of  the  prospective
transferee).  If such transfer occurs and such foreign Certificateholder becomes
subject to such United States federal  withholding taxes, any such taxes will be
withheld by the Indenture Trustee.  Each  Certificateholder  unable to establish
its non-foreign  status shall submit to the  Certificate  Paying Agent a copy of
its Form W-8BEN and shall resubmit such Form W-8BEN every three years.

        (b)(i) No transfer,  sale,  pledge or other disposition of a Certificate
shall be made unless such transfer,  sale, pledge or other disposition is exempt
from the  registration  requirements  of the  Securities  Act and any applicable
state  securities  laws or is made in accordance  with said Act and laws. In the
event of any such transfer,  the  Certificate  Registrar or the Depositor  shall
prior to such  transfer  require  the  transferee  to execute  (A) either (i) an
investment  letter in substantially the form attached hereto as Exhibit C (or in
such form and substance reasonably satisfactory to the Certificate Registrar and
the Depositor)  which  investment  letters shall not be an expense of the Trust,
the Owner  Trustee,  the  Certificate  Registrar,  the  Master  Servicer  or the
Depositor  and which  investment  letter states that,  among other things,  such
transferee (a) is a "qualified  institutional buyer" as defined under Rule 144A,
acting for its own  account or the  accounts of other  "qualified  institutional
buyers"  as  defined  under  Rule  144A,  and (b) is  aware  that  the  proposed
transferor intends to rely on the exemption from registration requirements under
the  Securities  Act,  provided  by Rule 144A or (ii) (a) a written  Opinion  of
Counsel acceptable to and in form and substance  satisfactory to the Certificate
Registrar  and the  Depositor  that such  transfer  may be made  pursuant  to an
exemption, describing the applicable exemption and the basis therefor, from said
Act and laws or is being made  pursuant to said Act and laws,  which  Opinion of
Counsel shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar,  the Master Servicer or the Depositor and (b) the transferee executes
are presentation letter,  substantially in the form of Exhibit D hereto, and the
transferor  executes  are  presentation  letter,  substantially  in the  form of
Exhibit E hereto,  each acceptable to and in form and substance  satisfactory to
the  Certificate  Registrar and the Depositor  certifying the facts  surrounding
such  transfer,  which  representation  letters  shall not be an  expense of the
Trust, the Owner Trustee, the Certificate Registrar,  the Master Servicer or the
Depositor and (B) the Certificate of Non-Foreign  Status (in  substantially  the
form  attached  hereto as Exhibit  F)  acceptable  to and in form and  substance
reasonably satisfactory to the Certificate Registrar and the Depositor, which

                                             -8-

<PAGE>

certificate  shall  not be an  expense  of the  Trust,  the Owner  Trustee,  the
Certificate  Registrar or the Depositor.  If the  Certificateholder is unable to
provide a Certificate of Non-Foreign Status, the Certificateholder  must provide
an  Opinion  of  Counsel  as  described   in  the   preceding   paragraph.   The
Certificateholder  desiring to effect such transfer shall, and does hereby agree
to,  indemnify the Trust,  the Owner Trustee,  the  Certificate  Registrar,  the
Master  Servicer and the Depositor  against any liability that may result if the
transfer  is not so exempt or is not made in  accordance  with such  federal and
state laws.

        (ii) No transfer of Certificates  or any interest  therein shall be made
to any Person unless the Depositor, the Owner Trustee, the Certificate Registrar
and  the  Master  Servicer  are  provided  with  an  Opinion  of  Counsel  which
establishes  to the  satisfaction  of the  Depositor,  the  Owner  Trustee,  the
Certificate  Registrar and the Master Servicer that the purchase of Certificates
is  permissible  under  applicable  law,  will not  constitute  or result in any
prohibited  transaction  under  ERISA or  Section  4975 of the Code and will not
subject the  Depositor,  the Owner  Trustee,  the  Certificate  Registrar or the
Master  Servicer  to any  obligation  or  liability  (including  obligations  or
liabilities  under  ERISA or  Section  4975 of the  Code) in  addition  to those
undertaken in this  Agreement,  which Opinion of Counsel shall not be an expense
of the Depositor,  the Owner Trustee,  the  Certificate  Registrar or the Master
Servicer.  In  lieu  of  such  Opinion  of  Counsel,  a  Person  acquiring  such
Certificates  may  provide  a  certification  in the form of  Exhibit  G to this
Agreement, which the Depositor, the Owner Trustee, the Certificate Registrar and
the Master  Servicer may rely upon  without  further  inquiry or  investigation.
Neither an Opinion of Counsel nor a certification will be required in connection
with  the  initial  transfer  of any such  Certificate  by the  Depositor  to an
affiliate  of the  Depositor  (in which case,  the  Depositor  or any  affiliate
thereof shall be deemed to have represented that such affiliate is not a Plan or
a Person  investing  Plan  Assets of any Plan)  and the Owner  Trustee  shall be
entitled to conclusively rely upon a representation  (which, upon the request of
the Owner Trustee, shall be a written  representation) from the Depositor of the
status of such transferee as an affiliate of the Depositor.

        (iii) In addition, no transfer of a Certificate shall be permitted,  and
no  such  transfer  shall  be  registered  by the  Certificate  Registrar  or be
effective  hereunder,   unless  evidenced  by  an  Opinion  of  Counsel,   which
establishes  that such transfer or the  registration  of such transfer would not
cause  the  Trust  to  be  classified  as  a  publicly  traded  partnership,  an
association  taxable as a corporation,  a corporation or a taxable mortgage pool
for federal and relevant  state income tax  purposes,  which  Opinion of Counsel
shall not be an expense of the Certificate  Registrar and shall be an expense of
the proposed transferee. No Opinion of Counsel will be required if such transfer
is made to a nominee of an existing beneficial holder of a Certificate.

        Section 3.06. Mutilated,  Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar,  or
if the Certificate  Registrar shall receive  evidence to its satisfaction of the
destruction,  loss or theft of any  Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required  by them to save each of them and the Issuer from harm,  then in
the absence of notice to the  Certificate  Registrar  or the Owner  Trustee that
such Certificate has been acquired by a bona

                                             -9-

<PAGE>

fide  purchaser,  the Owner Trustee shall execute on behalf of the Trust and the
Owner Trustee or the  Certificate  Paying Agent,  as the Trust's  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  denomination.  In connection with the issuance of any new Certificate
under this Section  3.06,  the Owner  Trustee 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 connection  therewith.  Any duplicate  Certificate
issued  pursuant to this Section 3.06 shall  constitute  conclusive  evidence of
ownership in the Trust, as if originally issued, whether or not the lost, stolen
or destroyed Certificate shall be found at any time.

        Section  3.07.   Persons   Deemed   Certificateholders.   Prior  to  due
presentation of a Certificate for  registration of transfer,  the Owner Trustee,
the Certificate  Registrar or any Certificate  Paying Agent may treat the Person
in whose name any Certificate is registered in the  Certificate  Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes  whatsoever,  and none of the Trust, the
Owner Trustee,  the Certificate  Registrar or any Paying Agent shall be bound by
any notice to the contrary.

        Section 3.08. Access to List of Certificateholders' Names and Addresses.
The  Certificate  Registrar  shall  furnish  or  cause  to be  furnished  to the
Depositor or the Owner Trustee,  within 15 days after receipt by the Certificate
Registrar of a written request therefor from the Depositor or the Owner Trustee,
a list, in such form as the Depositor or the Owner Trustee,  as the case may be,
may reasonably require, of the names and addresses of the  Certificateholders as
of the most  recent  Record  Date.  Each  Holder,  by  receiving  and  holding a
Certificate,  shall be deemed to have  agreed not to hold any of the Trust,  the
Depositor,  the Certificate Registrar or the Owner Trustee accountable by reason
of the  disclosure of its name and address,  regardless of the source from which
such information was derived.

        Section 3.09.  Maintenance of Office or Agency.  The Owner  Trustee,  on
behalf of the Trust, shall maintain in the City of New York an office or offices
or agency or agencies where  Certificates may be surrendered for registration of
transfer or exchange and where  notices and demands to or upon the Owner Trustee
in respect of the Certificates and the Basic Documents may be served.  The Owner
Trustee initially designates the Corporate Trust Office of the Indenture Trustee
as its office for such  purposes.  The Owner Trustee  shall give prompt  written
notice to the Depositor and the Certificateholders of any change in the location
of the Certificate Register or any such office or agency.

        Section 3.10. Certificate Paying Agent. (a) The Certificate Paying Agent
shall make distributions to Certificateholders from the Certificate Distribution
Account  on  behalf  of the  Trust  in  accordance  with the  provisions  of the
Certificates  and Section 5.01 hereof from payments  remitted to the Certificate
Paying Agent by the Indenture Trustee pursuant to Section 3.05 of the Indenture.
The Trust hereby appoints the Indenture Trustee as Certificate  Paying Agent and
the Indenture Trustee hereby accepts such appointment and further agrees that it
will  be  bound  by the  provisions  of this  Trust  Agreement  relating  to the
Certificate Paying Agent and shall:

                                             -10-

<PAGE>

                      (i) hold all sums held by it for the  payment  of  amounts
        due with  respect to the  Certificates  in trust for the  benefit of the
        Persons  entitled  thereto until such sums shall be paid to such Persons
        or otherwise disposed of as herein provided;

                      (ii) give the Owner  Trustee  notice of any default by the
        Trust of which it has  actual  knowledge  in the  making of any  payment
        required to be made with respect to the Certificates;

                      (iii)  at any  time  during  the  continuance  of any such
        default, upon the written request of the Owner Trustee, forthwith pay to
        the  Owner  Trustee  on behalf of the Trust all sums so held in Trust by
        such Certificate Paying Agent;

                      (iv)  immediately  resign as Certificate  Paying Agent and
        forthwith  pay to the Owner Trustee on behalf of the Trust all sums held
        by it in trust for the payment of  Certificates if at any time it ceases
        to meet the standards required to be met by the Certificate Paying Agent
        at the time of its appointment;

                      (v) comply with all  requirements of the Code with respect
        to the withholding  from any payments made by it on any  Certificates of
        any applicable withholding taxes imposed thereon and with respect to any
        applicable reporting requirements in connection therewith; and

                      (vi) deliver to the Owner  Trustee a copy of the report to
        Certificateholders  prepared  with  respect to each  Payment Date by the
        Master Servicer pursuant to Section 4.01 of the Servicing Agreement.

        (b) The Trust may revoke  such power and remove the  Certificate  Paying
Agent  if  the  Owner  Trustee  determines  in  its  sole  discretion  that  the
Certificate Paying Agent shall have failed to perform its obligations under this
Trust  Agreement  in any  material  respect.  The  Indenture  Trustee  shall  be
permitted to resign as Certificate  Paying Agent upon 30 days' written notice to
the Owner  Trustee;  provided the Indenture  Trustee is also resigning as Paying
Agent under the Indenture at such time. In the event that the Indenture  Trustee
shall no longer be the  Certificate  Paying Agent under this Trust Agreement and
Paying Agent under the Indenture, the Owner Trustee shall appoint a successor to
act as  Certificate  Paying Agent  (which shall be a bank or trust  company) and
which shall also be the successor  Paying Agent under the  Indenture.  The Owner
Trustee shall cause such  successor  Certificate  Paying Agent or any additional
Certificate  Paying Agent  appointed by the Owner Trustee to execute and deliver
to the Owner  Trustee an instrument to the effect set forth in this Section 3.10
as it relates to the  Certificate  Paying Agent.  The  Certificate  Paying Agent
shall return all unclaimed  funds to the Trust and upon removal of a Certificate
Paying  Agent such  Certificate  Paying Agent shall also return all funds in its
possession to the Trust.  The provisions of Sections 6.01,  6.03,  6.04 and 7.01
shall  apply to the  Certificate  Paying  Agent to the  extent  applicable.  Any
reference in this  Agreement to the  Certificate  Paying Agent shall include any
co- paying agent unless the context requires otherwise.

                                             -11-

<PAGE>

        (c) The  Certificate  Paying Agent shall  establish  and  maintain  with
itself the  Certificate  Distribution  Account in which the  Certificate  Paying
Agent  shall  deposit,  on the same  day as it is  received  from the  Indenture
Trustee,  each remittance  received by the Certificate Paying Agent with respect
to payments made pursuant to the Indenture.  The Certificate  Paying Agent shall
make all distributions of Certificate  Distribution Amounts on the Certificates,
from moneys on deposit in the Certificate Distribution Account.

        Section 3.11.  Cooperation.  The Owner  Trustee  shall  cooperate in all
respects  with any  reasonable  request  by the  Credit  Enhancer  for action to
preserve or enforce the Credit  Enhancer's  rights or interest  under this Trust
Agreement or the Insurance  Agreement,  consistent with this Trust Agreement and
without limiting the rights of the Certificateholders as otherwise expressly set
forth in this Trust Agreement.

                                             -12-

<PAGE>

                                   ARTICLE IV

                      Authority and Duties of Owner Trustee

        Section 4.01.  General  Authority.  The Owner Trustee is authorized  and
directed to execute and deliver the Basic  Documents to which the Trust is to be
a party and each  certificate  or other  document  attached  as an exhibit to or
contemplated  by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument  described  herein,  in each case, in
such form as the Owner Trustee shall approve,  as evidenced  conclusively by the
Owner  Trustee's  execution  thereof.  In addition to the  foregoing,  the Owner
Trustee is obligated to take all actions  required of the Trust  pursuant to the
Basic Documents.

        Section 4.02.  General Duties. The Owner Trustee shall be responsible to
administer the Trust pursuant to the terms of this Trust Agreement and the Basic
Documents   to  which  the  Trust  is  a  party  and  in  the  interest  of  the
Certificateholders,  subject to the Basic  Documents and in accordance  with the
provisions of this Trust Agreement.

        Section 4.03.  Action upon  Instruction.  (a) Subject to this Article IV
and in accordance with the terms of the Basic Documents,  the Certificateholders
may by written  instruction  direct the Owner  Trustee in the  management of the
Trust. Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to this Article IV.

        (b)  Notwithstanding  the  foregoing,  the  Owner  Trustee  shall not be
required to take any action  hereunder or under any Basic  Document if the Owner
Trustee shall have reasonably determined, or shall have been advised by counsel,
that such  action is  likely  to  result in  liability  on the part of the Owner
Trustee  or is  contrary  to the terms  hereof or of any  Basic  Document  or is
otherwise contrary to law.

        (c) Whenever the Owner Trustee is unable to decide  between  alternative
courses of action  permitted or required by the terms of this Trust Agreement or
under any Basic Document, or in the event that the Owner Trustee is unsure as to
the  application of any provision of this Trust  Agreement or any Basic Document
or any such provision is ambiguous as to its  application,  or is, or appears to
be, in conflict with any other applicable  provision,  or in the event that this
Trust Agreement  permits any  determination by the Owner Trustee or is silent or
is  incomplete  as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee shall promptly
give notice (in such form as shall be appropriate  under the  circumstances)  to
the  Certificateholders   (with  a  copy  to  the  Credit  Enhancer)  requesting
instruction  as to the  course of action to be  adopted,  and to the  extent the
Owner  Trustee acts in good faith in  accordance  with any written  instructions
received from Holders of Certificates representing a majority of the Certificate
Percentage Interest thereof, the Owner Trustee shall not be liable on account of
such  action  to any  Person.  If the  Owner  Trustee  shall  not have  received
appropriate  instruction  within 10 days of such notice (or within such  shorter
period of time as reasonably may be specified in such notice or may be necessary
under the  circumstances) it may, but shall be under no duty to, take or refrain
from

                                             -13-

<PAGE>

taking  such  action not  inconsistent  with this Trust  Agreement  or the Basic
Documents,   as  it   shall   deem  to  be  in  the   best   interests   of  the
Certificateholders,  and the Owner Trustee shall have no liability to any Person
for such action or inaction.

        Section 4.04. No Duties Except as Specified under Specified Documents or
in  Instructions.  The Owner  Trustee  shall not have any duty or  obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner  Trustee  is a party,  except as  expressly  provided  (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee  pursuant to this Trust  Agreement,  (ii) in  accordance  with the Basic
Documents and (iii) in accordance with any document or instruction  delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any Basic Document  against the Owner
Trustee. The Owner 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 prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Trust Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense,  promptly
take all action as may be necessary  to  discharge  any liens on any part of the
Owner Trust  Estate that result from  actions by, or claims  against,  the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.

        Section  4.05.  Restrictions.  (a) The Owner  Trustee shall not take any
action  (x) that is  inconsistent  with the  purposes  of the Trust set forth in
Section 2.03 or (y) that, to the actual  knowledge of the Owner  Trustee,  would
result in the Trust  becoming  taxable as a corporation  for federal  income tax
purposes.  The  Certificateholders  shall not direct  the Owner  Trustee to take
action that would violate the provisions of this Section 4.05.

        (b) The Owner  Trustee  shall not convey or transfer  any of the Trust's
properties  or assets,  including  those  included in the Trust  Estate,  to any
person  unless  (a) it shall have  received  an Opinion of Counsel to the effect
that such  transaction will not have any material adverse tax consequence to the
Trust or any  Certificateholder  and (b) such  conveyance or transfer  shall not
violate the provisions of Section 3.16(b) of the Indenture.

        Section 4.06. Prior Notice to Certificateholders and the Credit Enhancer
with Respect to Certain  Matters.  With respect to the  following  matters,  the
Owner Trustee shall not take action  unless,  at least 30 days before the taking
of such action, the Owner Trustee shall have notified the Certificateholders and
the  Credit   Enhancer  in  writing  of  the  proposed  action  and  Holders  of
Certificates  representing  a majority of the  Certificate  Percentage  Interest
thereof and the Credit  Enhancer  shall not have  notified the Owner  Trustee in
writing   prior  to  the  30th  day  after  such   notice  is  given  that  such
Certificateholders  and the Credit  Enhancer have  withheld  consent or provided
alternative direction:

                                             -14-

<PAGE>

        (a) the  initiation of any claim or lawsuit by the Trust (except  claims
or lawsuits brought in connection with the collection of cash  distributions due
and owing  under the Home  Loans) and the  compromise  of any  action,  claim or
lawsuit   brought  by  or  against  the  Trust   (except  with  respect  to  the
aforementioned  claims or lawsuits for collection of cash  distributions due and
owing under the Home Loans);

        (b) the election by the Trust to file an amendment to the Certificate of
Trust  (unless such  amendment is required to be filed under the Business  Trust
Statute);

     (c)  the  amendment  of  the  Indenture  by  a  supplemental  indenture  in
circumstances where the consent of any Noteholder is required;

        (d) the  amendment  of the  Indenture  by a  supplemental  indenture  in
circumstances  where the  consent of any  Noteholder  is not  required  and such
amendment materially  adversely affects the interest of the  Certificateholders;
and

        (e) the  appointment  pursuant  to the  Indenture  of a  successor  Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor  Certificate Registrar or Certificate Paying Agent or the consent
to the  assignment  by the Note  Registrar,  Paying  Agent,  Indenture  Trustee,
Certificate  Registrar or Certificate  Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.

        Section  4.07.  Action by  Certificateholders  with  Respect  to Certain
Matters.  The Owner Trustee shall not have the power,  except upon the direction
of  Certificateholders  evidencing  not less than a majority of the  outstanding
Certificate Percentage Interest of the Certificates, and with the consent of the
Credit Enhancer, to (a) remove the Master Servicer under the Servicing Agreement
pursuant  to Section  7.01  thereof or (b) except as  expressly  provided in the
Basic Documents, sell the Home Loans after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding  sentence only
upon written instructions signed by Certificateholders  evidencing not less than
a  majority  of  the  outstanding   Certificate   Percentage   Interest  of  the
Certificates and with the consent of the Credit Enhancer.

        Section 4.08. Action by  Certificateholders  with Respect to Bankruptcy.
The Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy  relating to the Trust  without the unanimous  prior  approval of all
Certificateholders  and with the consent of the Credit Enhancer and the delivery
to the Owner Trustee by each such  Certificateholder of a certificate certifying
that such Certificateholder reasonably believes that the Trust is insolvent.

        Section   4.09.   Restrictions   on   Certificateholders'   Power.   The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic
Documents or would be contrary to Section  2.03,  nor shall the Owner Trustee be
obligated to follow any such direction, if given.

                                             -15-

<PAGE>

        Section 4.10. Majority Control. Except as expressly provided herein, any
action that maybe taken by the Certificateholders under this Trust Agreement may
be taken by the  Certificateholders  evidencing  not less than a majority of the
outstanding  Certificate  Percentage  Interest  of the  Certificates.  Except as
expressly  provided  herein,  any  written  notice  of  the   Certificateholders
delivered  pursuant  to this Trust  Agreement  shall be  effective  if signed by
Certificateholders  evidencing  not  less  than a  majority  of the  outstanding
Certificate  Percentage Interest of the Certificates at the time of the delivery
of such notice.

        Section 4.11.  Doing  Business in Other  Jurisdictions.  Notwithstanding
anything contained herein to the contrary,  neither Wilmington Trust Company nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will,  even after the
appointment of a co-trustee or separate  trustee in accordance with Section 9.05
hereof,  (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration  with or the taking of any other action
in  respect  of,  any  state or other  governmental  authority  or agency of any
jurisdiction  other than the State of  Delaware;  (ii) result in any fee, tax or
other  governmental  charge  under  the laws of the State of  Delaware  becoming
payable by Wilmington Trust Company,  or (iii) subject  Wilmington Trust Company
to personal  jurisdiction in any  jurisdiction  other than the State of Delaware
for causes of action  arising  from acts  unrelated to the  consummation  of the
transactions by Wilmington  Trust Company or the Owner Trustee,  as the case may
be, contemplated hereby.

                                             -16-

<PAGE>

                                    ARTICLE V

                           Application of Trust Funds

        Section 5.01.  Distributions.  (a) On each Payment Date, the Certificate
Paying Agent shall distribute to the  Certificateholders all funds on deposit in
the  Certificate  Distribution  Account and  available  therefor (as provided in
Section 3.05 of the Indenture),  as the Certificate Distribution Amount for such
Payment  Date.  All  distributions  made  pursuant  to  this  Section  shall  be
distributed  to  the  Certificateholders  on a  pro  rata  basis  based  on  the
Certificate Percentage Interests thereof.

        (b)  In  the  event  that  any   withholding   tax  is  imposed  on  the
distributions (or allocations of income) to a Certificateholder,  such tax shall
reduce the amount otherwise distributable to the Certificateholder in accordance
with this Section 5.01. The  Certificate  Paying Agent is hereby  authorized and
directed to retain or cause to be retained from amounts otherwise  distributable
to the  Certificateholders  sufficient  funds for the payment of any tax that is
legally  owed by the Trust (but such  authorization  shall not prevent the Owner
Trustee from contesting any such tax in appropriate proceedings, and withholding
payment  of  such  tax,  if  permitted  by  law,  pending  the  outcome  of such
proceedings).  The  amount of any  withholding  tax  imposed  with  respect to a
Certificateholder shall be treated as cash distributed to such Certificateholder
at the time it is withheld by the  Certificate  Paying Agent and remitted to the
appropriate taxing authority.  If there is a possibility that withholding tax is
payable with respect to a  distribution  (such as a  distribution  to a non-U.S.
Certificateholder),  the  Certificate  Paying  Agent may in its sole  discretion
withhold such amounts in accordance with this paragraph (b).

     (c)  Distributions  to  Certificateholders  shall  be  subordinated  to the
creditors of the Trust, including the Noteholders.

        (d) Allocations of profits and losses,  as determined for federal income
tax purposes,  shall be made to the Certificateholders on a pro rata basis based
on the Certificate Percentage Interests thereof.

        Section   5.02.   Method  of  Payment.   Subject  to  Section   8.01(c),
distributions  required to be made to  Certificateholders on any Payment Date as
provided in Section  5.01 shall be made to each  Certificateholder  of record on
the preceding Record Date either by, in the case of any Certificateholder owning
Certificates  having  denominations  aggregating at least  10.0000%  Certificate
Percentage  Interest and integral  multiples of 0.0001% in excess thereof,  wire
transfer,  in immediately  available  funds,  to the account of such Holder at a
bank  or  other  entity  having  appropriate   facilities   therefor,   if  such
Certificateholder  shall have provided to the Certificate  Registrar appropriate
written  instructions at least five Business Days prior to such Payment Date or,
if not, by check mailed to such  Certificateholder at the address of such Holder
appearing in the Certificate Register.

                                             -17-

<PAGE>

        Section 5.03.  Signature on Returns.  To the extent  required and unless
otherwise  required by law, the Owner  Trustee shall sign on behalf of the Trust
the tax returns of the Trust.

        Section 5.04.  Statements to  Certificateholders.  On each Payment Date,
the Certificate Paying Agent shall send to each  Certificateholder the statement
or statements  provided to the Owner Trustee and the Certificate Paying Agent by
the Master  Servicer  pursuant to Section 4.01 of the Servicing  Agreement  with
respect to such Payment Date.

        Section 5.05. Tax  Reporting.  So long as the Depositor or any affiliate
of   the   Depositor   owns   100%   of   the   Certificates    (the   "Original
Certificateholder"),  then no separate  federal and state income tax returns and
information  returns or statements will be filed with respect to the Trust and a
federal employer identification number shall not be applied for from the IRS. If
the Original  Certificateholder is no longer the sole  Certificateholder and the
Certificates are held by the Original  Certificateholder and one or more persons
for federal income tax purposes,  the subsequent  holders of the Certificates by
their  acceptance  hereof,  agree to appoint the Original  Certificateholder  as
their agent for the tax matters partner and the Original  Certificateholder,  as
agent for such  holders,  agrees to perform  (itself  or through  its agent) all
duties  necessary to comply with federal and state income tax laws including but
not limited to applying for a federal employer  identification number and filing
tax returns.

                                             -18-

<PAGE>

                                   ARTICLE VI

                          Concerning the Owner Trustee

        Section 6.01. Acceptance of Trusts and Duties. The Owner Trustee accepts
the  trusts  hereby  created  and agrees to perform  its duties  hereunder  with
respect  to such  trusts but only upon the terms of this  Trust  Agreement.  The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually  received by it  constituting  part of the Owner Trust  Estate upon the
terms of the Basic Documents and this Trust  Agreement.  The Owner Trustee shall
not be answerable or accountable hereunder or under any Basic Document under any
circumstances,  except (i) for its own  willful  misconduct,  negligence  or bad
faith or negligent  failure to act or (ii) in the case of the  inaccuracy of any
representation or warranty contained in Section 6.03 expressly made by the Owner
Trustee.  In  particular,  but  not by way of  limitation  (and  subject  to the
exceptions set forth in the preceding sentence):

        (a) No provision of this Trust  Agreement  or any Basic  Document  shall
require  the  Owner  Trustee  to  expend or risk  funds or  otherwise  incur any
financial  liability in the  performance of any of its rights,  duties or powers
hereunder or under any Basic Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured or provided to it;

        (b)  Under no  circumstances  shall  the Owner  Trustee  be  liable  for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;

        (c) The Owner Trustee shall not be responsible  for or in respect of the
validity or sufficiency of this Trust Agreement or for the due execution  hereof
by the Depositor or for the form, character, genuineness,  sufficiency, value or
validity of any of the Owner Trust Estate,  or for or in respect of the validity
or sufficiency of the Basic Documents,  the Notes, the Certificates,  other than
the certificate of authentication on the Certificates,  if executed by the Owner
Trustee and the Owner Trustee  shall in no event assume or incur any  liability,
duty, or obligation to any Noteholder or to any Certificateholder, other than as
expressly provided for herein or expressly agreed to in the Basic Documents;

        (d) The execution,  delivery,  authentication  and  performance by it of
this Trust Agreement will not require the authorization, consent or approval of,
the giving of notice to, the filing or  registration  with, or the taking of any
other action with respect to, any governmental authority or agency;

        (e) The Owner  Trustee shall not be liable for the default or misconduct
of the Depositor,  the Indenture Trustee or the Master Servicer under any of the
Basic  Documents or otherwise  and the Owner Trustee shall have no obligation or
liability to perform the  obligations of the Trust under this Trust Agreement or
the Basic  Documents that are required to be performed by the Indenture  Trustee
under the Indenture or the Seller under the Home Loan Purchase Agreement; and

                                             -19-

<PAGE>

        (f) The Owner  Trustee  shall be under no  obligation to exercise any of
the rights or powers vested in it or duties imposed by this Trust Agreement,  or
to institute,  conduct or defend any  litigation  under this Trust  Agreement or
otherwise or in relation to this Trust Agreement or any Basic  Document,  at the
request,  order  or  direction  of any of the  Certificateholders,  unless  such
Certificateholders  have  offered to the Owner  Trustee  security  or  indemnity
satisfactory  to it against  the costs,  expenses  and  liabilities  that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any  discretionary  act enumerated in this Trust  Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its negligence,  bad faith or willful misconduct in
the performance of any such act.

        Section 6.02.  Furnishing of Documents.  The Owner Trustee shall furnish
to the  Securityholders  promptly upon receipt of a written  reasonable  request
therefor,  duplicates  or copies of all  reports,  notices,  requests,  demands,
certificates,  financial  statements and any other instruments  furnished to the
Trust under the Basic Documents.

     Section 6.03.  Representations  and  Warranties.  The Owner Trustee  hereby
represents   and   warrants   to  the   Depositor,   for  the   benefit  of  the
Certificateholders, that:

        (a) It is a banking  corporation  duly organized and validly existing in
good  standing  under the laws of the State of  Delaware.  It has all  requisite
corporate  power and authority to execute,  deliver and perform its  obligations
under this Trust Agreement;

        (b) It has  taken  all  corporate  action  necessary  to  authorize  the
execution and delivery by it of this Trust  Agreement,  and this Trust Agreement
will be executed and delivered by one of its officers who is duly  authorized to
execute and deliver this Trust Agreement on its behalf;

        (c)  Neither  the  execution  nor  the  delivery  by  it of  this  Trust
Agreement,  nor the consummation by it of the transactions  contemplated  hereby
nor compliance by it with any of the terms or provisions  hereof will contravene
any federal or Delaware  law,  governmental  rule or  regulation  governing  the
banking or trust powers of the Owner Trustee or any judgment or order binding on
it, or  constitute  any  default  under its charter  documents  or bylaws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound;

        (d) This Trust  Agreement,  assuming due  authorization,  execution  and
delivery by the Owner Trustee and the Depositor,  constitutes a valid, legal and
binding  obligation of the Owner Trustee,  enforceable  against it in accordance
with  the  terms   hereof   subject  to   applicable   bankruptcy,   insolvency,
reorganization,   moratorium  and  other  laws  affecting  the   enforcement  of
creditors' rights generally and to general  principles of equity,  regardless of
whether such enforcement is considered in a proceeding in equity or at law;

                                             -20-

<PAGE>

        (e) The Owner  Trustee  is not in default  with  respect to any order or
decree of any court or any order,  regulation  or demand of any federal,  state,
municipal or governmental  agency,  which default might have  consequences  that
would  materially  and adversely  affect the  condition  (financial or other) or
operations  of the Owner Trustee or its  properties  or might have  consequences
that would materially adversely affect its performance hereunder; and

        (f) No  litigation  is  pending  or, to the best of the Owner  Trustee's
knowledge,  threatened  against  the Owner  Trustee  which  would  prohibit  its
entering into this Trust  Agreement or  performing  its  obligations  under this
Trust Agreement.

        Section 6.04.  Reliance;  Advice of Counsel. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature,  instrument,  notice,
resolution,  request,  consent,  order,  certificate,  report, opinion, bond, or
other  document or paper  believed by it to be genuine and  believed by it to be
signed by the proper party or parties.  The Owner Trustee may accept a certified
copy of a resolution  of the board of directors or other  governing  body of any
corporate  party as  conclusive  evidence  that  such  resolution  has been duly
adopted  by such body and that the same is in full force and  effect.  As to any
fact or  matter  the  method  of  determination  of  which  is not  specifically
prescribed  herein,  the Owner  Trustee  may for all  purposes  hereof rely on a
certificate,  signed by the president or any vice  president or by the treasurer
or other  authorized  officers of the relevant  party, as to such fact or matter
and such  certificate  shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.

        (b) In the exercise or  administration of the Trust hereunder and in the
performance  of its duties and  obligations  under this Trust  Agreement  or the
Basic  Documents,  the Owner Trustee (i) may act directly or through its agents,
attorneys,  custodians or nominees  (including  persons  acting under a power of
attorney)  pursuant to agreements  entered into with any of them,  and the Owner
Trustee  shall not be liable  for the  conduct  or  misconduct  of such  agents,
attorneys,  custodians or nominees  (including  persons  acting under a power of
attorney)  if  such  persons  have  been  selected  by the  Owner  Trustee  with
reasonable  care,  and (ii) may  consult  with  counsel,  accountants  and other
skilled  persons to be selected with  reasonable  care and employed by it at the
expense of the Trust.  The Owner Trustee shall not be liable for anything  done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel,  accountants or other such Persons and not contrary to this
Trust Agreement or any Basic Document.

        Section 6.05. Not Acting in Individual  Capacity.  Except as provided in
this Article VI, in accepting the trusts hereby created Wilmington Trust Company
acts solely as Owner Trustee hereunder and not in its individual  capacity,  and
all  Persons  having  any  claim  against  the  Owner  Trustee  by reason of the
transactions  contemplated  by this Trust  Agreement or any Basic Document shall
look only to the Owner Trust Estate for payment or satisfaction thereof.

     Section  6.06.  Owner  Trustee  Not  Liable  for  Certificates  or  Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures  of the  Owner  Trustee  on the  Certificates)  shall be taken as the
statements of the Depositor, and the Owner Trustee assumes no

                                             -21-

<PAGE>

responsibility  for  the  correctness   thereof.  The  Owner  Trustee  makes  no
representations  as to the validity or sufficiency of this Trust  Agreement,  of
any Basic  Document or of the  Certificates  (other than the  signatures  of the
Owner Trustee on the  Certificates)  or the Notes, or of any Related  Documents.
The Owner Trustee  shall at no time have any  responsibility  or liability  with
respect to the  sufficiency of the Owner Trust Estate or its ability to generate
the payments to be distributed to Certificateholders  under this Trust Agreement
or the  Noteholders  under  the  Indenture,  including,  the  compliance  by the
Depositor or the Seller with any warranty or representation made under any Basic
Document or in any  related  document  or the  accuracy of any such  warranty or
representation,  or any action of the Certificate  Paying Agent, the Certificate
Registrar or the Indenture Trustee taken in the name of the Owner Trustee.

        Section 6.07.  Owner Trustee May Own  Certificates  and Notes. The Owner
Trustee in its  individual or any other capacity may become the owner or pledgee
of  Certificates  or Notes  and may deal with the  Depositor,  the  Seller,  the
Certificate Paying Agent, the Certificate Registrar and the Indenture Trustee in
transactions with the same rights as it would have if it were not Owner Trustee.

                                             -22-

<PAGE>

                                   ARTICLE VII

                          Compensation of Owner Trustee

        Section 7.01. Owner Trustee's Fees and Expenses. The Owner Trustee shall
receive  as  compensation  for its  services  hereunder  such  fees as have been
separately  agreed upon before the date hereof,  and the Owner  Trustee shall be
reimbursed for its reasonable  expenses hereunder and under the Basic Documents,
including  the  reasonable  compensation,  expenses  and  disbursements  of such
agents, representatives, experts and counsel as the Owner Trustee may reasonably
employ in  connection  with the exercise and  performance  of its rights and its
duties  hereunder  and under the Basic  Documents  which shall be payable by the
Master Servicer pursuant to Section 3.09 of the Servicing Agreement.

        Section  7.02.  Indemnification.  The  holder  of  the  majority  of the
Certificate Percentage Interest of the Certificates shall indemnify,  defend and
hold harmless the Owner Trustee and its successors, assigns, agents and servants
(collectively,  the  "Indemnified  Parties")  from  and  against,  any  and  all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs,  expenses and disbursements  (including reasonable
legal  fees  and  expenses)  of any kind and  nature  whatsoever  (collectively,
"Expenses")  which may at any time be  imposed  on,  incurred  by,  or  asserted
against the Owner  Trustee or any  Indemnified  Party in any way  relating to or
arising  out of this  Trust  Agreement,  the Basic  Documents,  the Owner  Trust
Estate,  the  administration of the Owner Trust Estate or the action or inaction
of the Owner Trustee hereunder, provided, that:

               (i) the  holder of the  majority  of the  Certificate  Percentage
        Interest  of the  Certificates  shall not be liable for or  required  to
        indemnify  an  Indemnified  Party from and against  Expenses  arising or
        resulting from the Owner Trustee's willful misconduct, negligence or bad
        faith or as a result of any inaccuracy of a  representation  or warranty
        contained in Section 6.03 expressly made by the Owner Trustee;

               (ii) with respect to any such claim, the Indemnified  Party shall
        have  given the holder of the  majority  of the  Certificate  Percentage
        Interest of the  Certificates  written notice thereof promptly after the
        Indemnified Party shall have actual knowledge thereof;

               (iii) while maintaining control over its own defense,  the holder
        of  the  majority  of  the  Certificate   Percentage   Interest  of  the
        Certificates  shall consult with the Indemnified Party in preparing such
        defense; and

               (iv) notwithstanding  anything in this Agreement to the contrary,
        the holder of the majority of the Certificate Percentage Interest of the
        Certificates  shall  not be  liable  for  settlement  of any claim by an
        Indemnified  Party  entered into without the prior consent of the holder
        of  the  majority  of  the  Certificate   Percentage   Interest  of  the
        Certificates which consent shall not be unreasonably withheld.

                                             -23-

<PAGE>

        The indemnities  contained in this Section shall survive the resignation
or termination of the Owner Trustee or the termination of this Trust  Agreement.
In the event of any claim,  action or  proceeding  for which  indemnity  will be
sought  pursuant  to this  Section  7.02,  the Owner  Trustee's  choice of legal
counsel,  if other  than the legal  counsel  retained  by the Owner  Trustee  in
connection  with the  execution and delivery of this Trust  Agreement,  shall be
subject  to the  approval  of the  holder  of the  majority  of the  Certificate
Percentage   Interest  of  the   Certificates,   which  approval  shall  not  be
unreasonably withheld. In addition, upon written notice to the Owner Trustee and
with the consent of the Owner Trustee  which  consent shall not be  unreasonably
withheld,  the holder of the majority of the Certificate  Percentage Interest of
the  Certificates  has the right to assume the  defense of any claim,  action or
proceeding against the Owner Trustee.

                                             -24-

<PAGE>

                                  ARTICLE VIII

                         Termination of Trust Agreement

        Section 8.01.  Termination of Trust Agreement.  (a) This Trust Agreement
(other  than  this  Article  VIII) and the Trust  shall  terminate  and be of no
further force or effect upon the earliest of (i) the final  distribution  of all
moneys or other  property or proceeds  of the Owner Trust  Estate in  accordance
with the terms of the Indenture and this Trust Agreement,  (ii) the Payment Date
in March 2032,  or (iii) the  purchase by the Master  Servicer of all Home Loans
pursuant  to  Section  8.08(a)  of  the  Servicing  Agreement.  The  bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(x) operate to terminate  this Trust  Agreement or the Trust or (y) entitle such
Certificateholder's  legal representatives or heirs to claim an accounting or to
take any action or  proceeding in any court for a partition or winding up of all
or any part of the Trust or the Owner Trust Estate or (z)  otherwise  affect the
rights, obligations and liabilities of the parties hereto.

        (b) Except as provided in Section 8.01(a), neither the Depositor nor any
Certificateholder shall be entitled to revoke or terminate the Trust.

        (c) Notice of any termination of the Trust,  specifying the Payment Date
upon  which   Certificateholders  shall  surrender  their  Certificates  to  the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate  Paying Agent by letter to  Certificateholders
and the Credit Enhancer mailed within five Business Days of receipt of notice of
such  termination  from the Owner Trustee,  stating (i) the Payment Date upon or
with  respect  to which  final  payment of the  Certificates  shall be made upon
presentation  and surrender of the Certificates at the office of the Certificate
Paying Agent therein  designated,  (ii) the amount of any such final payment and
(iii) that the Record Date  otherwise  applicable  to such  Payment  Date is not
applicable,  payments  being made only upon  presentation  and  surrender of the
Certificates at the office of the Certificate  Payment Agent therein  specified.
The Certificate Paying Agent shall give such notice to the Owner Trustee and the
Certificate  Registrar  at the time such notice is given to  Certificateholders.
Upon  presentation  and surrender of the  Certificates,  the Certificate  Paying
Agent shall cause to be distributed to Certificateholders  amounts distributable
on such Payment Date pursuant to Section 5.01.

        In the event  that all of the  Certificateholders  shall  not  surrender
their  Certificates for cancellation  within six months after the date specified
in the above mentioned written notice, the Certificate Paying Agent shall give a
second written  notice to the remaining  Certificateholders  to surrender  their
Certificates for cancellation  and receive the final  distribution  with respect
thereto.  Subject to applicable laws with respect to escheat of funds, if within
one year  following the Payment Date on which final payment of the  Certificates
was to have been made pursuant to Section 3.10, all the  Certificates  shall not
have been surrendered for  cancellation,  the Certificate  Paying Agent may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost  thereof  shall be paid out of the funds and other  assets  that  shall
remain subject to this Trust Agreement. Any funds remaining

                                             -25-

<PAGE>

in the Certificate  Distribution Account after exhaustion of such remedies shall
be distributed by the Certificate  Paying Agent to the holder of the majority of
the Certificate Percentage Interest of the Certificates.

        (d) Upon the  winding  up of the  Trust and its  termination,  the Owner
Trustee  shall  cause  the  Certificate  of Trust to be  cancelled  by  filing a
certificate of  cancellation  with the Secretary of State in accordance with the
provisions of Section 3810(c) of the Business Trust Statute.

                                             -26-

<PAGE>

                                   ARTICLE IX

             Successor Owner Trustees and Additional Owner Trustees

        Section 9.01.  Eligibility  Requirements  for Owner  Trustee.  The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Business Trust Statute;  authorized to exercise  corporate  trust
powers;  having a  combined  capital  and  surplus of at least  $50,000,000  and
subject to  supervision  or  examination  by federal or state  authorities;  and
having (or having a parent that has) long-term debt obligations with a rating of
at least A by  Moody's  and/or  Standard  & Poor's.  If such  corporation  shall
publish  reports  of  condition  at  least  annually  pursuant  to law or to the
requirements of the aforesaid  supervising or examining authority,  then for the
purpose of this Section,  the combined  capital and surplus of such  corporation
shall be deemed to be its combined  capital and surplus as set forth in its most
recent report of condition so  published.  In case at any time the Owner Trustee
shall cease to be eligible in  accordance  with the  provisions  of this Section
9.01,  the Owner  Trustee  shall resign  immediately  in the manner and with the
effect specified in Section 9.02.

        Section 9.02. Replacement of Owner Trustee. The Owner Trustee may at any
time resign and be discharged  from the trusts hereby created by giving 30 days'
prior written  notice  thereof to the Credit  Enhancer and the  Depositor.  Upon
receiving  such notice of  resignation,  the Indenture  Trustee  shall  promptly
appoint a successor  Owner Trustee with the consent of the Credit Enhancer which
will not be unreasonably withheld, by written instrument, in duplicate, one copy
of which  instrument  shall be delivered to the resigning  Owner Trustee and one
copy to the successor  Owner Trustee.  If no successor  Owner Trustee shall have
been so appointed and have accepted  appointment within 30 days after the giving
of such notice of  resignation,  the  resigning  Owner  Trustee may petition any
court  of  competent  jurisdiction  for the  appointment  of a  successor  Owner
Trustee.

        If at  any  time  the  Owner  Trustee  shall  cease  to be  eligible  in
accordance  with the  provisions  of Section 9.01 and shall fail to resign after
written request therefor by the Indenture  Trustee,  or if at any time the Owner
Trustee  shall be  legally  unable  to act,  or shall be  adjudged  bankrupt  or
insolvent,  or a  receiver  of the Owner  Trustee  or of its  property  shall be
appointed,  or any  public  officer  shall  take  charge or control of the Owner
Trustee  or of its  property  or  affairs  for the  purpose  of  rehabilitation,
conservation  or  liquidation,  then the Indenture  Trustee may and shall at the
direction of the Credit  Enhancer  remove the Owner  Trustee.  If the  Indenture
Trustee shall remove the Owner  Trustee  under the authority of the  immediately
preceding  sentence,  the Indenture  Trustee shall promptly  appoint a successor
Owner  Trustee  acceptable  to the Credit  Enhancer  by written  instrument,  in
duplicate, one copy of which instrument shall be delivered to the outgoing Owner
Trustee so removed and one copy to the successor  Owner  Trustee,  and shall pay
all fees owed to the outgoing Owner Trustee.  Any  resignation or removal of the
Owner Trustee and  appointment of a successor  Owner Trustee  pursuant to any of
the provisions of this Section shall not become  effective  until  acceptance of
appointment by the successor Owner Trustee  pursuant to Section 9.03 and payment
of all fees and expenses owed to the outgoing Owner Trustee.

                                             -27-

<PAGE>

        Section 9.03.  Successor  Owner  Trustee.  Any  successor  Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Indenture Trustee and to its predecessor  Owner Trustee an instrument  accepting
such appointment  under this Trust  Agreement,  and thereupon the resignation or
removal of the  predecessor  Owner  Trustee  shall  become  effective,  and such
successor  Owner  Trustee,  without any further act, deed or  conveyance,  shall
become fully vested with all the rights,  powers,  duties and obligations of its
predecessor under this Trust Agreement,  with like effect as if originally named
as Owner Trustee.  The predecessor  Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements
and monies  held by it under this Trust  Agreement;  and the  predecessor  Owner
Trustee shall execute and deliver such  instruments  and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.

        No successor Owner Trustee shall accept  appointment as provided in this
Section 9.03 unless at the time of such  acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

        Upon acceptance of appointment by a successor Owner Trustee  pursuant to
this  Section  9.03,  the  Indenture  Trustee  shall mail notice  thereof to all
Certificateholders,  the  Indenture  Trustee,  the  Noteholders  and the  Rating
Agencies. If the Indenture Trustee shall fail to mail such notice within 10 days
after  acceptance  of such  appointment  by the  successor  Owner  Trustee,  the
successor  Owner  Trustee shall cause such notice to be mailed at the expense of
the Indenture Trustee.

        Section 9.04. Merger or Consolidation of Owner Trustee.  Any Person into
which the Owner  Trustee  may be merged  or  converted  or with  which it may be
consolidated,   or  any  Person   resulting  from  any  merger,   conversion  or
consolidation  to which  the  Owner  Trustee  shall be a  party,  or any  Person
succeeding to all or  substantially  all of the corporate  trust business of the
Owner Trustee,  shall be the successor of the Owner Trustee  hereunder,  without
the execution or filing of any  instrument or any further act on the part of any
of  the  parties  hereto,  anything  herein  to  the  contrary  notwithstanding;
provided,  that such  Person  shall be eligible  pursuant  to Section  9.01 and,
provided,  further,  that the Owner  Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

        Section  9.05.   Appointment   of   Co-Trustee   or  Separate   Trustee.
Notwithstanding  any other provisions of this Trust Agreement,  at any time, for
the purpose of meeting any legal  requirements of any  jurisdiction in which any
part of the Owner  Trust  Estate may at the time be located,  the Owner  Trustee
shall have the power and shall  execute and deliver all  instruments  to appoint
one or more Persons to act as co-trustee,  jointly with the Owner Trustee, or as
separate trustee or trustees,  of all or any part of the Owner Trust Estate, and
to vest in such Person,  in such  capacity,  such title to the Trust or any part
thereof  and,  subject to the other  provisions  of this  Section,  such powers,
duties,  obligations,  rights  and  trusts as the  Owner  Trustee  may  consider
necessary  or  desirable.  No co- trustee or separate  trustee  under this Trust
Agreement shall be required to meet the terms of

                                             -28-

<PAGE>

eligibility as a successor Owner Trustee  pursuant to Section 9.01 and no notice
of the  appointment  of any  co-trustee  or separate  trustee  shall be required
pursuant to Section 9.03.

        Each separate  trustee and co-trustee  shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

        (a) All rights, powers, duties and obligations conferred or imposed upon
the Owner  Trustee  shall be  conferred  upon and  exercised or performed by the
Owner  Trustee  and such  separate  trustee  or  co-trustee  jointly  (it  being
understood  that such separate  trustee or  co-trustee is not  authorized to act
separately  without the Owner Trustee joining in such act), except to the extent
that under any law of any  jurisdiction  in which any particular act or acts are
to be performed,  the Owner  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 Owner  Trust  Estate or any
portion  thereof in any such  jurisdiction)  shall be  exercised  and  performed
singly by such separate  trustee or  co-trustee,  but solely at the direction of
the Owner Trustee;

        (b) No trustee under this Trust Agreement shall be personally  liable by
reason of any act or omission of any other trustee  under this Trust  Agreement;
and

        (c) The Owner  Trustee  may at any time  accept  the  resignation  of or
remove any separate trustee or co-trustee.

        Any notice, request or other writing given to the Owner 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 or  co-trustee  shall  refer to this Trust  Agreement  and the
conditions  of this  Article.  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 Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Trust  Agreement,  specifically  including every provision of this Trust
Agreement  relating to the conduct of,  affecting the liability of, or affording
protection to, the Owner Trustee.  Each such instrument  shall be filed with the
Owner Trustee.

        Any  separate  trustee or  co-trustee  may at any time appoint the Owner
Trustee as 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
Trust  Agreement  on its  behalf  and in its name.  If any  separate  trustee or
co-trustee shall die, become incapable of acting,  resign or be removed,  all of
its  estates,  properties,  rights,  remedies  and  trusts  shall vest in and be
exercised by the Owner  Trustee,  to the extent  permitted  by law,  without the
appointment of a new or successor co-trustee or separate trustee.

                                             -29-

<PAGE>

                                    ARTICLE X

                                  Miscellaneous

        Section 10.01. Amendments.  (a) This Trust Agreement may be amended from
time to time by the parties hereto as specified in this Section 10.01,  provided
that any amendment, except as provided in subparagraph (e) below, be accompanied
by an Opinion of Counsel, to the Owner Trustee to the effect that such amendment
(i)  complies  with the  provisions  of this Section and (ii) will not cause the
Trust to be subject to an entity level tax.

        (b) If the purpose of the amendment (as detailed  therein) is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not covered (i.e., to give effect to the intent of the parties), it shall
not be  necessary to obtain the consent of any  Holders,  but the Owner  Trustee
shall be furnished with (A) a letter from the Rating Agencies that the amendment
will not result in the  downgrading or withdrawal of the rating then assigned to
any Security if determined without regard to the Credit  Enhancement  Instrument
and (B) an Opinion of Counsel to the effect that such action will not  adversely
affect in any material respect the interests of any Holders,  and the consent of
the Credit Enhancer shall be obtained.

        (c) If the purpose of the amendment is to prevent the  imposition of any
federal  or state  taxes at any time that any  Security  is  outstanding  (i.e.,
technical  in nature),  it shall not be  necessary  to obtain the consent of any
Holder, but the Owner Trustee shall be furnished with an Opinion of Counsel that
such  amendment is necessary or helpful to prevent the  imposition of such taxes
and is not  materially  adverse  to any  Holder  and the  consent  of the Credit
Enhancer shall be obtained.

        (d) If the purpose of the amendment is to add or eliminate or change any
provision  of the Trust  Agreement  other  than as  contemplated  in (b) and (c)
above, the amendment shall require (A) the consent of the Credit Enhancer and an
Opinion of Counsel to the effect that such action will not  adversely  affect in
any  material  respect the  interests of any Holders and (B) either (a) a letter
from the Rating Agency that the amendment will not result in the  downgrading or
withdrawal  of the rating then  assigned to any security if  determined  without
regard to the Credit  Enhancement  Instrument  or (b) the  consent of Holders of
Certificates evidencing a majority of the Certificate Percentage Interest of the
Certificates  and  the  Indenture  Trustee;  provided,  however,  that  no  such
amendment  shall (i) reduce in any manner the amount of, or delay the timing of,
payments received that are required to be distributed on any Certificate without
the consent of the related  Certificateholder  and the Credit Enhancer,  or (ii)
reduce  the  aforesaid  percentage  of  Certificates  the  Holders  of which are
required to consent to any such amendment, without the consent of the Holders of
all such Certificates then outstanding.

        (e) If the purpose of the amendment is to provide for the holding of any
of the  Certificates in book-entry form, it shall require the consent of Holders
of all such Certificates then outstanding; provided, that the Opinion of Counsel
specified in subparagraph (a) above shall not be required.

                                             -30-

<PAGE>

        (f) If the purpose of the  amendment  is to provide for the  issuance of
additional  certificates  representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Holder,  but the Owner  Trustee  shall be
furnished with (A) an Opinion of Counsel to the effect that such action will not
adversely  affect in any material respect the interests of any Holders and (B) a
letter  from the  Rating  Agencies  that the  amendment  will not  result in the
downgrading  or  withdrawal  of the rating  then  assigned to any  Security,  if
determined without regard to the Credit  Enhancement  Instrument and the consent
of the Credit Enhancer shall be obtained.

        (g) Promptly after the execution of any such  amendment or consent,  the
Owner  Trustee  shall  furnish  written  notification  of the  substance of such
amendment  or consent to each  Certificateholder,  the  Indenture  Trustee,  the
Credit Enhancer and each of the Rating  Agencies.  It shall not be necessary for
the consent of  Certificateholders  or the  Indenture  Trustee  pursuant to this
Section  10.01 to approve  the  particular  form of any  proposed  amendment  or
consent,  but it shall be sufficient if such consent shall approve the substance
thereof.  The manner of  obtaining  such  consents  (and any other  consents  of
Certificateholders  provided  for in this Trust  Agreement or in any other Basic
Document)  and of  evidencing  the  authorization  of the  execution  thereof by
Certificateholders shall be subject to such reasonable requirements as the Owner
Trustee may prescribe.

        (h) In  connection  with the execution of any amendment to any agreement
to which  the  Trust is a party,  other  than this  Trust  Agreement,  the Owner
Trustee  shall be entitled to receive and  conclusively  rely upon an Opinion of
Counsel to the effect that such  amendment  is  authorized  or  permitted by the
documents  subject to such  amendment and that all  conditions  precedent in the
Basic Documents for the execution and delivery thereof by the Trust or the Owner
Trustee, as the case may be, have been satisfied.

        Promptly  after the  execution of any  amendment to the  Certificate  of
Trust,  the Owner  Trustee  shall  cause the filing of such  amendment  with the
Secretary of State of the State of Delaware.

        Section   10.02.   No   Legal   Title  to  Owner   Trust   Estate.   The
Certificateholders  shall not have  legal  title to any part of the Owner  Trust
Estate. The  Certificateholders  shall be entitled to receive distributions with
respect to their undivided  beneficial  interest therein only in accordance with
Articles V and VIII.  No  transfer,  by operation  of law or  otherwise,  of any
right,  title or interest of the  Certificateholders  to and in their  ownership
interest  in the Owner  Trust  Estate  shall  operate  to  terminate  this Trust
Agreement or the trusts  hereunder or entitle any transferee to an accounting or
to the transfer to it of legal title to any part of the Owner Trust Estate.

        Section 10.03. Limitations on Rights of Others. Except for Section 2.07,
the  provisions of this Trust  Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Certificateholders,  the Credit Enhancer and, to the
extent expressly provided herein, the Indenture Trustee and the Noteholders, and
nothing in this Trust  Agreement  (other than Section 2.07),  whether express or
implied,  shall be  construed to give to any other Person any legal or equitable
right,  remedy or claim in the Owner Trust Estate or under or in respect of this
Trust Agreement or any covenants, conditions or provisions contained herein.

                                             -31-

<PAGE>

        Section 10.04.  Notices.  (a) Unless  otherwise  expressly  specified or
permitted  by the terms  hereof,  all  notices  shall be in writing and shall be
deemed given upon  receipt,  if to the Owner  Trustee,  addressed to  Wilmington
Trust Company,  Corporate Trust Administration,  Rodney Square North, 1100 North
Market  Street,   Wilmington,   Delaware  19890,   Attention:   Corporate  Trust
Administration;  if to the Depositor,  addressed to Residential Funding Mortgage
Securities II, Inc., 8400 Normandale  Lake  Boulevard,  Suite 250,  Minneapolis,
Minnesota  55437;  if to the  Credit  Enhancer,  addressed  to  Ambac  Assurance
Corporation,  One State  Street  Plaza,  19th Floor,  New York,  New York 10004,
Attention:  Consumer  Asset-Backed  Securities Group; if to the Rating Agencies,
addressed to Moody's Investors  Service,  Inc., 99 Church Street, 4th Floor, New
York,  New York 10001 and Standard & Poor's,  55 Water Street - 41st Floor,  New
York, New York 10041,  Attention:  Structured Finance Department - MBS or, as to
each  party,  at such other  address as shall be  designated  by such party in a
written notice to each other party.

        (b) Any notice required or permitted to be given to a  Certificateholder
shall be given by  first-class  mail,  postage  prepaid,  at the address of such
Holder as shown in the  Certificate  Register.  Any notice so mailed  within the
time prescribed in this Trust  Agreement shall be conclusively  presumed to have
been duly given, whether or not the Certificateholder receives such notice.

        (c) A copy of any  notice  delivered  to the Owner  Trustee or the Trust
shall also be delivered to the Depositor.

        Section 10.05. Severability.  Any provision of this Trust Agreement that
is  prohibited  or  unenforceable   in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability  without  invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        Section  10.06.  Separate  Counterparts.  This  Trust  Agreement  may be
executed by the parties hereto in separate  counterparts,  each of which when so
executed and delivered  shall be an original,  but all such  counterparts  shall
together constitute but one and the same instrument.

        Section 10.07. Successors and Assigns. All representations,  warranties,
covenants and  agreements  contained  herein shall be binding upon, and inure to
the benefit of, each of the Depositor,  the Owner Trustee and its successors and
each  Certificateholder  and its successors and permitted assigns, all as herein
provided and the Credit  Enhancer.  Any  request,  notice,  direction,  consent,
waiver  or other  instrument  or action by a  Certificateholder  shall  bind the
successors and assigns of such Certificateholder.

        Section 10.08.  No Petition.  The Owner  Trustee,  by entering into this
Trust Agreement and each Certificateholder,  by accepting a Certificate,  hereby
covenant  and  agree  that  they  will not at any  time  institute  against  the
Depositor or the Trust, or join in any institution  against the Depositor or the
Trust of, any  bankruptcy  proceedings  under any United States federal or state
bankruptcy or

                                             -32-

<PAGE>

similar law in connection with any obligations with respect to the Certificates,
the Notes, this Trust Agreement or any of the Basic Documents.

        Section  10.09.  No  Recourse.  Each  Certificateholder  by  accepting a
Certificate  acknowledges that such  Certificateholder's  Certificates represent
beneficial  interests  in the Trust only and do not  represent  interests  in or
obligations  of the  Depositor,  the Seller,  the Owner  Trustee,  the Indenture
Trustee or any Affiliate thereof and no recourse may be had against such parties
or their assets,  except as may be expressly set forth or  contemplated  in this
Trust Agreement, the Certificates or the Basic Documents.

     Section 10.10.  Headings. The headings of the various Articles and Sections
herein are for  convenience  of reference only and shall not define or limit any
of the terms or provisions hereof.

        Section 10.11. GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF  DELAWARE,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        Section 10.12. Integration.  This Trust Agreement constitutes the entire
agreement  among the parties hereto  pertaining to the subject matter hereof and
supersedes all prior agreements and understanding pertaining thereto.

        Section  10.13.   Rights  of  Credit  Enhancer  to  Exercise  Rights  of
Certificateholders.  By accepting its Certificate, each Certificateholder agrees
that unless a Credit Enhancer Default exists, the Credit Enhancer shall have the
right to  exercise  all rights of the  Certificateholders  under this  Agreement
without any further consent of the Certificateholders.  Nothing in this Section,
however,  shall alter or modify in any way,  the  fiduciary  obligations  of the
Owner Trustee to the  Certificateholders  pursuant to this Agreement,  or create
any fiduciary obligation of the Owner Trustee to the Credit Enhancer.

                                             -33-

<PAGE>

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

                                            RESIDENTIAL FUNDING MORTGAGE
                                            SECURITIES II, INC.

                                            By: /s/ Lisa Lundsten
                                               --------------------------------
                                            Name:   Lisa Lundsten
                                            Title: Vice President

                                            WILMINGTON TRUST COMPANY, not in its
                                            individual  capacity  but  solely as
                                            Owner  Trustee,  except with respect
                                            to    the     representations    and
                                            warranties contained in Section 6.03
                                            hereof,

                                            By: /s/ James P. Lawler
                                                ------------------------------
                                            Name:  James P. Lawler
                                            Title: Vice President

Acknowledged and Agreed:

JPMORGAN CHASE BANK,
-------------------
as Indenture Trustee, Certificate Registrar
and Certificate Paying Agent

By: /s/ Mark McDermott
    -------------------------------------------
Name:   Mark McDermott
Title:  Assistant Vice President

                                             -34-

<PAGE>

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

                                            RESIDENTIAL FUNDING MORTGAGE
                                            SECURITIES II, INC.

                                            By:    __________________________
                                            Name:  Lisa Lundsten
                                            Title: Vice President

                                            WILMINGTON TRUST COMPANY, not in its
                                            individual  capacity  but  solely as
                                            Owner  Trustee,  except with respect
                                            to    the     representations    and
                                            warranties contained in Section 6.03
                                            hereof,

                                            By:    __________________________
                                            Name:
                                            Title:

Acknowledged and Agreed:

JPMORGAN CHASE BANK,
-------------------
as Indenture Trustee, Certificate Registrar
and Certificate Paying Agent

By:     __________________________
Name:   Mark McDermott
Title:  Assistant Vice President

                                             -35-

<PAGE>

                                    EXHIBIT A

                      FORM OF HOME LOAN-BACKED CERTIFICATE

        THIS  CERTIFICATE  IS  SUBORDINATED  IN RIGHT OF PAYMENT TO THE NOTES AS
DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

        THIS  CERTIFICATE  HAS NOT BEEN AND WILL  NOT BE  REGISTERED  UNDER  THE
SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR  TRANSFERRED  UNLESS IT IS REGISTERED  PURSUANT TO SUCH ACT AND
LAWS  OR  IS  SOLD  OR  TRANSFERRED  IN  TRANSACTIONS   WHICH  ARE  EXEMPT  FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE AMENDED AND RESTATED TRUST
AGREEMENT ("THE AGREEMENT").

        NO TRANSFER  OF THIS  CERTIFICATE  SHALL BE MADE UNLESS THE  CERTIFICATE
REGISTRAR SHALL HAVE RECEIVED EITHER (I) A CERTIFICATION  IN THE FORM OF EXHIBIT
G TO THE AGREEMENT  FROM THE  TRANSFEREE OF THIS  CERTIFICATE TO THE EFFECT THAT
SUCH  TRANSFEREE  IS NOT AN  EMPLOYEE  BENEFIT  PLAN  OR  OTHER  SUBJECT  TO THE
PROHIBITED   TRANSACTION   RESTRICTIONS   AND   THE   FIDUCIARY   RESPONSIBILITY
REQUIREMENTS OF THE EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"),  OR SECTION 4975 OF THE INTERNAL  REVENUE CODE OF 1986 (THE  "CODE"),
ANY PERSON  ACTING,  DIRECTLY OR  INDIRECTLY,  ON BEHALF OF ANY SUCH PLAN OR ANY
PERSON  USING  "PLAN  ASSETS,"  WITHIN THE  MEANING OF THE  DEPARTMENT  OF LABOR
REGULATION AT 29 C.F.R. SS.2510.3-101, TO ACQUIRE THIS CERTIFICATE (COLLECTIVELY
A "PLAN INVESTOR"), OR (II) IF THIS CERTIFICATE IS PRESENTED FOR REGISTRATION IN
THE NAME OF A PLAN  INVESTOR,  AN OPINION  OF  COUNSEL,  TO THE EFFECT  THAT THE
PURCHASE OR HOLDING OF THIS  CERTIFICATE IS PERMISSIBLE  UNDER  APPLICABLE  LAW,
WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED  TRANSACTION  UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE (OR  COMPARABLE  PROVISIONS OF ANY  SUBSEQUENT
ENACTMENTS)  AND WILL NOT SUBJECT THE  COMPANY,  THE OWNER  TRUSTEE,  THE MASTER
SERVICER OR THE CERTIFICATE REGISTRAR TO ANY OBLIGATION OR LIABILITY IN ADDITION
TO THOSE UNDERTAKEN IN THE AGREEMENT.

        THE  TRANSFEREE  OF THIS  CERTIFICATE  SHALL BE SUBJECT TO UNITED STATES
FEDERAL  WITHHOLDING TAX UNLESS THE CERTIFICATE  REGISTRAR SHALL HAVE RECEIVED A
CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS TO THE TRANSFEREE'S  STATUS AS A
U.S. PERSON AS DEFINED BY U.S. FEDERAL INCOME TAX LAW.

                                             A-1

<PAGE>

        THIS  CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE COMPANY,  THE MASTER SERVICER,  THE INDENTURE TRUSTEE,  OR THE OWNER
TRUSTEE OR ANY OF THEIR RESPECTIVE  AFFILIATES,  EXCEPT AS EXPRESSLY PROVIDED IN
THE AGREEMENT OR THE BASIC DOCUMENTS.

                                             A-2

<PAGE>

Certificate No. ____                        Assumed Final Payment Date:
                                                March 25, 2032

Cut-off Date:
March 1, 2002                               Certificate Percentage Interest of
                                            this Certificate: ____%

Date of Amended and
Restated Trust Agreement:
March 26, 2002

First Payment Date:
April 25, 2002

                                 HOME LOAN-BACKED CERTIFICATE
                                       Series 2002-HI2

        evidencing a fractional  undivided  interest in the Owner Trust  Estate,
the  property  of  which  consists  primarily  of the  Home  Loans,  created  by
RESIDENTIAL  FUNDING  MORTGAGE  SECURITIES  II,  INC.  (hereinafter  called  the
"Company," which term includes any successor entity under the Agreement referred
to below).

               This  Certificate  is payable solely from the assets of the Owner
Trust  Estate,  and does not  represent  an  obligation  of or  interest  in the
Company,  the Seller,  the Master  Servicer,  the Indenture  Trustee,  the Owner
Trustee  or  GMAC  Mortgage  Group,  Inc.  or  any  of  their  affiliates.  This
Certificate  is  not  guaranteed  or  insured  by  any  governmental  agency  or
instrumentality  or by  the  Company,  the  Seller,  the  Master  Servicer,  the
Indenture  Trustee,  the Owner  Trustee or GMAC Mortgage  Group,  Inc. or any of
their  affiliates.  None of the Company,  the Seller,  the Master Servicer,  the
Indenture Trustee, the Owner Trustee,  GMAC Mortgage Group, Inc. or any of their
affiliates  will have any  obligation  with respect to any  certificate or other
obligation secured by or payable from payments on the Certificates.

               This certifies  that [name of Holder] is the registered  owner of
the Certificate  Percentage Interest evidenced by this Certificate (as set forth
on the face  hereof) in certain  distributions  with  respect to the Owner Trust
Estate,  consisting  primarily of the Home Loans, created by Residential Funding
Mortgage  Securities II, Inc. The Trust (as defined herein) was created pursuant
to a Trust  Agreement,  dated as of March __, 2002 and an Amended  and  Restated
Trust Agreement, dated as specified above (as amended and supplemented from time
to time, the "Agreement")  between the Company and Wilmington Trust Company,  as
owner trustee (the "Owner  Trustee,"  which term  includes any successor  entity
under the Agreement),  a summary of certain of the pertinent provisions of which
is set forth hereafter.  To the extent not defined herein, the capitalized terms
used herein have the meanings  assigned in the  Agreement.  This  Certificate is
issued  under and is subject  to the terms,  provisions  and  conditions  of the
Agreement, to which

                                             A-3

<PAGE>

Agreement  the Holder of this  Certificate  by virtue of the  acceptance  hereof
assents and by which such Holder is bound.

               Pursuant to the terms of the Agreement,  a  distribution  will be
made on the 25th day of each month or, if such 25th day is not a  Business  Day,
the Business Day immediately  following (the "Payment Date"),  commencing on the
first Payment Date specified above, to the Person in whose name this Certificate
is  registered  at the close of business on the last day (or if such last day is
not a Business Day, the Business Day immediately preceding such last day) of the
month immediately  preceding the month of such distribution (the "Record Date"),
in an amount equal to the pro rata portion evidenced by this Certificate  (based
on the  Certificate  Percentage  Interest  stated  on the  face  hereon)  of the
Certificate  Distribution  Amount, if any, required to be distributed to Holders
of Certificates on such Payment Date.  Distributions on this Certificate will be
made as  provided  in the  Agreement  by the  Certificate  Paying  Agent by wire
transfer or check mailed to the  Certificateholder  of record in the Certificate
Register without the presentation or surrender of this Certificate or the making
of any notation hereon.

               Except as otherwise provided in the Agreement and notwithstanding
the above,  the final  distribution on this  Certificate  will be made after due
notice by the Certificate  Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the  Certificate  Registrar for that purpose in the City and State
of New York. The initial Certificate  Percentage Interest of this Certificate is
set forth above. The Certificate  Percentage  Interest hereof will be reduced to
the extent of the distributions allocable to principal.

               No transfer of this Certificate will be made unless such transfer
is exempt from the  registration  requirements of the Securities Act of 1933, as
amended,  and any applicable state securities laws or is made in accordance with
said Act and  laws.  In the  event  that  such a  transfer  is to be  made,  the
Certificate  Registrar or the Company shall require (A) either (i) an opinion of
counsel acceptable to and in form and substance  satisfactory to the Certificate
Registrar  and  the  Company  that  such  transfer  is  exempt  (describing  the
applicable  exemption and the basis  therefor) from or is being made pursuant to
the registration  requirements of the Securities Act of 1933, as amended, and of
any applicable statute of any state or (ii) an investment letter executed by the
Transferee  in the  form  described  in the  Agreement  and (B) the  Certificate
Registrar  shall require the  transferee  to execute an investment  letter and a
Certificate of Non-Foreign Status in the form described by the Agreement(or if a
Certificate  of  Non-Foreign  Status is not  provided,  an Opinion of Counsel as
described in the Agreement),  which investment letter and certificate or Opinion
of Counsel  shall not be at the  expense of the Trust,  the Owner  Trustee,  the
Certificate  Registrar or the Company. The Holder hereof desiring to effect such
transfer  shall,  and does  hereby  agree to,  indemnify  the  Trust,  the Owner
Trustee, the Company, the Master Servicer and the Certificate  Registrar against
any liability that may result if the transfer is not so exempt or is not made in
accordance  with  such  federal  and state  laws.  In  connection  with any such
transfer,  the Certificate  Registrar (unless otherwise directed by the Company)
will also require either (i) a representation  letter,  in the form described in
the Agreement, stating that the transferee is not an employee benefit

                                             A-4

<PAGE>

or  other  plan  subject  to  the  prohibited  transaction  restrictions  or the
fiduciary  responsibility  requirements  of  ERISA or  Section  4975 of the Code
("Plan"), any person acting, directly or indirectly,  on behalf of any such plan
or any person using the "plan  assets,"  within the meaning of the Department of
Labor  regulations  at 29  C.F.R.  ss.2510.3-101,  to  effect  such  acquisition
(collectively, a "Plan Investor") or (ii) if such transferee is a Plan Investor,
an opinion of counsel  acceptable to and in form and substance  satisfactory  to
the  Company,  the  Owner  Trustee,  the  Master  Servicer  and the  Certificate
Registrar,  to the effect  that the  purchase or holding of the  Certificate  is
permissible  under applicable law, will not constitute or result in a prohibited
transaction  under  Section  406 of  ERISA  or  Section  4975  of the  Code  (or
comparable  provisions of any  subsequent  enactments)  and will not subject the
Company, the Owner Trustee, the Master Servicer or the Certificate  Registrar to
any obligation or liability in addition to those undertaken in the Agreement.

               This   Certificate  is  one  of  a  duly   authorized   issue  of
Certificates designated as Home Loan-Backed Certificates of the Series specified
hereon (herein collectively called the  "Certificates").  All terms used in this
Certificate  which are defined in the Agreement shall have the meanings assigned
to them in the Agreement.

               The  Certificateholder,  by its  acceptance of this  Certificate,
agrees  that it will  look  solely to the funds on  deposit  in the  Certificate
Distribution  Account that have been released from the Lien of the Indenture for
payment hereunder and that neither the Owner Trustee in its individual  capacity
nor the Company is personally  liable to the  Certificateholders  for any amount
payable under this Certificate or the Agreement or, except as expressly provided
in the Agreement, subject to any liability under the Agreement.

               The Holder of this  Certificate  acknowledges and agrees that its
rights to receive  distributions in respect of this Certificate are subordinated
to the rights of the  Noteholders  as  described in the  Indenture,  dated as of
March 26, 2002 between Home Loan Trust 2002-HI2 (the "Trust") and JPMorgan Chase
Bank, as Indenture Trustee (the "Indenture").

               Each  Certificateholder,  by  its  acceptance  of a  Certificate,
covenants and agrees that such  Certificateholder will not at any time institute
against the Company, or join in any institution against the Company or the Trust
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 the
Certificates, the Notes, the Agreement or any of the Basic Documents.

               The Agreement  permits the amendment  thereof as specified below,
provided that any amendment be accompanied by the consent of the Credit Enhancer
and an Opinion of Counsel to the Owner Trustee to the effect that such amendment
complies with the provisions of the Agreement and will not cause the Trust to be
subject to an entity  level tax. If the purpose of the  amendment  is to correct
any mistake,  eliminate any  inconsistency,  cure any ambiguity or deal with any
matter not  covered,  it shall not be  necessary  to obtain  the  consent of any
Holder,  but the Owner Trustee shall be furnished  with a letter from the Rating
Agencies that the amendment will not result in the

                                             A-5

<PAGE>

downgrading  or  withdrawal  of the rating  then  assigned  to any  Security  if
determined without regard to the Credit  Enhancement  Instrument and the counsel
of the Credit Enhancer shall be obtained.  If the purpose of the amendment is to
prevent  the  imposition  of any  federal  or state  taxes at any time  that any
Security is outstanding,  it shall not be necessary to obtain the consent of any
Holder, but the Owner Trustee shall be furnished with an Opinion of Counsel that
such  amendment is necessary or helpful to prevent the  imposition of such taxes
and is not  materially  adverse  to any  Holder  and the  consent  of the Credit
Enhancer  shall  be  obtained.  If the  purpose  of the  amendment  is to add or
eliminate or change any provision of the  Agreement,  other than as specified in
the preceding two  sentences,  the amendment  shall require  either (a) a letter
from the Rating  Agencies that the amendment will not result in the  downgrading
or withdrawal of the rating then assigned to any Security, if determined without
regard to the Credit  Enhancement  Instrument or (b) the consent of Holders of a
majority of the Certificate Percentage Interests of the Controlling Certificates
and the Indenture Trustee;  provided,  however, that no such amendment shall (i)
reduce in any manner the amount of, or delay the time of, payments received that
are required to be  distributed  on any  Certificate  without the consent of the
related  Certificateholder and the Credit Enhancer, or (ii) reduce the aforesaid
percentage of  Certificates  the Holders of which are required to consent to any
such amendment  without the consent of the Holders of all such Certificates then
outstanding.

               As provided in the Agreement  and subject to certain  limitations
therein set forth,  the  transfer of this  Certificate  is  registerable  in the
Certificate  Register upon surrender of this  Certificate  for  registration  of
transfer at the offices or agencies of the Certificate  Registrar  maintained in
the City and State of New York,  accompanied by a written instrument of transfer
in form  satisfactory to the  Certificate  Registrar duly executed by the Holder
hereof or such Holder's  attorney duly authorized in writing,  and thereupon one
or more new Certificates of authorized  denominations  evidencing the same Class
and aggregate  Certificate  Percentage Interest will be issued to the designated
transferee.  The initial Certificate  Registrar appointed under the Agreement is
the Owner Trustee.

               Except  as  provided  in  the  Agreement,  the  Certificates  are
issuable  only in minimum  denominations  of a 10.0000%  Certificate  Percentage
Interest and in integral multiples of a 0.0001% Certificate  Percentage Interest
in  excess  thereof.  As  provided  in the  Agreement  and  subject  to  certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of   authorized   denominations,   as  requested  by  the  Holder
surrendering the same. This Certificate is issued in the Certificate  Percentage
Interest above.

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

               The Owner Trustee,  the Certificate Paying Agent, the Certificate
Registrar and any agent of the Owner Trustee,  the Certificate  Paying Agent, or
the Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes,  and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate  Registrar or any such agent shall
be affected by any notice to the contrary.

                                             A-6

<PAGE>

               This Certificate shall be governed by and construed in accordance
with the laws of the State of Delaware.

               The  obligations  created  by the  Agreement  in  respect  of the
Certificates  and the Trust created thereby shall terminate upon the earliest of
(i) the final  distribution  of all moneys or other  property or proceeds of the
Owner  Trust  Estate  in  accordance  with the  terms of the  Indenture  and the
Agreement,  (ii) the  Payment  Date in March 2032 or (iii) the  purchase  by the
Master  Servicer of all Home Loans pursuant to Section  8.08(a) of the Servicing
Agreement.

               Unless the certificate of  authentication  hereon shall have been
executed by an authorized  officer of the Owner  Trustee,  or an  authenticating
agent by manual signature, this Certificate shall not be entitled to any benefit
under the Agreement or be valid for any purpose.

                                             A-7

<PAGE>

               IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and
not in its individual capacity, has caused this Certificate to be duly executed.

                               HOME LOAN TRUST 2002-HI2

                               by     WILMINGTON TRUST COMPANY,
                                      not in its individual capacity but solely
                                      as Owner Trustee

                               Dated: ______________________________
                                      Authorized Signatory

                                CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Agreement.

WILMINGTON TRUST COMPANY,
not in its individual capacity
but solely as Owner Trustee

By:     ______________________________
        Authorized Signatory

or       ______________________________ ,
        as Authenticating Agent of the Trust

By:     ______________________________
        Authorized Signatory

                                             A-8

<PAGE>

                                          ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

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

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

the  within   Certificate,   and  all  rights  thereunder,   hereby  irrevocably
constituting and appointing

-----------------------------------------------------------------------------
to transfer said  Certificate on the books of the  Certificate  Registrar,  with
full power of substitution in the premises.

Dated:
                                     _________________________________*/
                                     Signature Guaranteed:

                                     ____________________*/

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

*/ NOTICE:  The signature to this assignment must correspond with the name as it
appears upon the face of the within  Certificate  in every  particular,  without
alteration,   enlargement  or  any  change  whatever.  Such  signature  must  be
guaranteed by a member firm of the New York Stock Exchange or a commercial  bank
or trust company.

                                             A-9

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

        The assignee  should  include the following for the  information  of the
Certificate Paying Agent:

     Distribution shall be made by wire transfer in immediately  available funds
to       ___________________________        for       the       account       of
________________________________________,  account number ______________, or, if
mailed by check, to ______________.

        Applicable statements should be mailed to __________________.

                           ______________________________________
                           Signature of assignee or agent
                           (for authorization of wire transfer only)

                                             A-10

<PAGE>

                                          EXHIBIT B

                                    TO THE TRUST AGREEMENT

                                     CERTIFICATE OF TRUST

                                              OF

                                   HOME LOAN TRUST 2002-HI2

     THIS  Certificate  of Trust of HOME LOAN TRUST  2002-HI2  (the  "Trust") is
being  duly  executed  and filed on behalf of the Trust by the  undersigned,  as
trustee, to form a business trust under the Delaware Business Trust Act (12 Del.
C.ss.3801 et seq.) (the "Act").

     1. Name. The name of the business trust formed by this Certificate of Trust
is HOME LOAN TRUST 2002-HI2.

     2. Delaware  Trustee.  The name and business  address of the trustee of the
Trust  in  the  State  of  Delaware  are  ________________,  __________________,
______________, Delaware.

     3.  Effective  Date.  This  Certificate  of Trust shall be  effective  upon
filing.

        IN WITNESS  WHEREOF,  the undersigned has duly executed this Certificate
of Trust in accordance with Section 3811(a)(1) of the Act.

                                       [NAME OF OWNER TRUSTEE],
                                       not in its individual capacity
                                       but solely as Trustee

                                       By:    _____________________
                                       Name:
                                       Title:

                                             B-1

<PAGE>

                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

                  ============================================
                  ============================================

               The  undersigned  seller,  as registered  holder (the  "Seller"),
intends to transfer the Rule 144A Securities  described above to the undersigned
buyer (the "Buyer").

               1. In connection  with such  transfer and in accordance  with the
agreements  pursuant to which the Rule 144A Securities  were issued,  the Seller
hereby  certifies the following  facts:  Neither the Seller nor anyone acting on
its behalf has offered, transferred,  pledged, sold or otherwise disposed of the
Rule 144A  Securities,  any  interest in the Rule 144A  Securities  or any other
similar security to, or solicited any offer to buy or accept a transfer,  pledge
or other disposition of the Rule 144A Securities,  any interest in the Rule 144A
Securities  or any other  similar  security  from,  or otherwise  approached  or
negotiated  with respect to the Rule 144A  Securities,  any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general  solicitation  by means of general  advertising or in any other
manner,  or taken any other action,  that would constitute a distribution of the
Rule 144A  Securities  under the  Securities  Act of 1933, as amended (the "1933
Act"),  or that  would  render the  disposition  of the Rule 144A  Securities  a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or  another  "qualified  institutional  buyer" as defined in Rule
144A under the 1933 Act.

               2. The Buyer warrants and represents to, and covenants  with, the
Owner Trustee and the  Depositor  (as defined in the Amended and Restated  Trust
Agreement  (the  "Agreement"),  dated as of March 26, 2002  between  Residential
Funding Mortgage  Securities II, Inc., as Depositor and Wilmington Trust Company
as Owner Trustee  pursuant to Section 3.05 of the  Agreement and JPMorgan  Chase
Bank as indenture trustee, as follows:

               a. The Buyer  understands  that the Rule 144A Securities have not
          been  registered  under  the  1933 Act or the  securities  laws of any
          state.

                      b. The Buyer considers itself a substantial, sophisticated
        institutional investor having such knowledge and experience in financial
        and  business  matters that it is capable of  evaluating  the merits and
        risks of investment in the Rule 144A Securities.

                                             C-1

<PAGE>

                      c. The  Buyer  has  been  furnished  with all  information
        regarding  the  Rule  144A  Securities  that it has  requested  from the
        Seller, the Indenture Trustee, the Owner Trustee or the Master Servicer.

                      d.  Neither the Buyer nor anyone  acting on its behalf has
        offered,  transferred,  pledged,  sold or otherwise disposed of the Rule
        144A  Securities,  any interest in the Rule144A  Securities or any other
        similar security to, or solicited any offer to buy or accept a transfer,
        pledge or other disposition of the Rule 144A Securities, any interest in
        the  Rule  144A  Securities  or any  other  similar  security  from,  or
        otherwise  approached  or  negotiated  with  respect  to the  Rule  144A
        Securities,  any  interest  in the Rule  144A  Securities  or any  other
        similar  security  with,  any person in any manner,  or made any general
        solicitation by means of general  advertising or in any other manner, or
        taken any other action, that would constitute a distribution of the Rule
        144A Securities  under the 1933 Act or that would render the disposition
        of the Rule 144A  Securities a violation of Section 5 of the 1933 Act or
        require  registration  pursuant  thereto,  nor  will it act,  nor has it
        authorized  or will it authorize  any person to act, in such manner with
        respect to the Rule 144A Securities.

                      e. The Buyer is a "qualified  institutional buyer" as that
        term is defined in Rule144A under the 1933 Act and has completed  either
        of the forms of  certification to that effect attached hereto as Annex 1
        or  Annex 2. The  Buyer  is aware  that the sale to it is being  made in
        reliance on Rule 144A.  The Buyer is acquiring the Rule 144A  Securities
        for its own  account or the  accounts of other  qualified  institutional
        buyers, understands that such Rule144A Securities may be resold, pledged
        or  transferred  only  (i)  to a  person  reasonably  believed  to  be a
        qualified  institutional buyer that purchases for its own account or for
        the account of a qualified  institutional  buyer to whom notice is given
        that the  resale,  pledge or  transfer is being made in reliance on Rule
        144A, or (ii) pursuant to another exemption from registration  under the
        1933 Act.

               3. The Buyer represents that:

(i)     either (a) or (b) is satisfied, as marked below:

               ____ a.  The  Buyer is not an  employee  benefit  or  other  plan
subject to the  Employee  Retirement  Income  Security  Act of 1974,  as amended
("ERISA"),or  Section 4975 of the Internal Revenue Code of 1986 (the "Code"),  a
Person acting, directly or indirectly,  on behalf of any such plan or any Person
acquiring such  Certificates  with "plan assets" of a Plan within the meaning of
the Department of Labor  regulation  promulgated at29 C.F.R.  ss.2510.3-101  and
will provide a certification  in the form of Exhibit G to the Trust Agreement to
that effect; or

               ____ b. The Buyer will provide the Depositor,  the Owner Trustee,
the  Certificate  Registrar and the Master  Servicer with an opinion of counsel,
satisfactory to the Depositor,  the Owner Trustee, the Certificate Registrar and
the  Master  Servicer,  to  the  effect  that  the  purchase  and  holding  of a
Certificate by or on behalf of the Buyer is permissible under applicable

                                             C-2

<PAGE>

law, will not constitute or result in a prohibited transaction under Section 406
of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments)  and  will  not  subject  the  Depositor,  the  Owner  Trustee,  the
Certificate  Registrar  or the Master  Servicer to any  obligation  or liability
(including  liabilities  under ERISA or Section 4975 of the Code) in addition to
those undertaken in the Trust  Agreement,  which opinion of counsel shall not be
an expense of the Depositor, the Owner Trustee, the Certificate Registrar or the
Master Servicer; and

        (ii) the Buyer is familiar with the prohibited transaction  restrictions
        and  fiduciary  responsibility  requirements  of Sections 406 and 407 of
        ERISA  and  Section  4975 of the Code and  understands  that each of the
        parties to which this certification is made is relying and will continue
        to rely on the statements made in this paragraph 3.

               4. This document may be executed in one or more  counterparts and
by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts,  together, shall
constitute one and the same document.

               IN  WITNESS  WHEREOF,  each  of the  parties  has  executed  this
document as of the date set forth below.

--------------------------                         --------------------------
Print Name of Seller                               Print Name of Buyer

By:     ____________________                       By:    ____________________
        Name:                                                    Name:
        Title:                                            Title:

Taxpayer Identification:                           Taxpayer Identification:

No.     ____________________                       No.    ____________________
Date:   ____________________                       Date:  ____________________

                                             C-3

<PAGE>

                              ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

        The undersigned  hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

     1. As indicated  below,  the undersigned is the President,  Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.

        2. In connection with purchases by the Buyer,  the Buyer is a "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act of 1933  ("Rule  144A")  because (i) the Buyer  owned  and/or  invested on a
discretionary  basis  $______________________  (1) in securities (except for the
excluded  securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

        ___    Corporation,  etc. The Buyer is a corporation (other than a bank,
               savings   and   loan   association   or   similar   institution),
               Massachusetts   or  similar  business  trust,   partnership,   or
               charitable  organization  described  in Section  501(c)(3) of the
               Internal Revenue Code.

        ___    Bank.  The Buyer (a) is a national  bank or  banking  institution
               organized under the laws of any State,  territory or the District
               of Columbia,  the business of which is substantially  confined to
               banking and is  supervised  by the State or  territorial  banking
               commission or similar official or is a foreign bank or equivalent
               institution,  and  (b)  has an  audited  net  worth  of at  least
               $25,000,000  as  demonstrated  in  its  latest  annual  financial
               statements, a copy of which is attached hereto.

---------------
(1) Buyer must own and/or invest on a discretionary  basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least$10,000,000 in securities.

                                             C-4

<PAGE>

         ___   Savings   and  Loan.   The  Buyer  (a)  is  a  savings  and  loan
               association,  building and loan  association,  cooperative  bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal  authority having  supervision
               over any  such  institutions  or is a  foreign  savings  and loan
               association or equivalent  institution and (b) has an audited net
               worth of at  least  $25,000,000  as  demonstrated  in its  latest
               annual financial statements.

          ___  Broker-Dealer.  The  Buyer is a  dealer  registered  pursuant  to
               Section 15 of the Securities Exchange Act of 1934.

        ___    Insurance  Company.  The  Buyer  is an  insurance  company  whose
               primary  and  predominant  business  activity  is the  writing of
               insurance or the  reinsuring of risks  underwritten  by insurance
               companies  and which is subject to  supervision  by the insurance
               commissioner  or a  similar  official  or  agency  of a State  or
               territory or the District of Columbia.

        ___    State  or  Local  Plan.  The  Buyer  is a  plan  established  and
               maintained by a State, its political subdivisions,  or any agency
               or  instrumentality  of the State or its political  subdivisions,
               for the benefit of its employees.

        ___    ERISA  Plan.  The Buyer is an  employee  benefit  plan within the
               meaning of Title I of the Employee Retirement Income Security Act
               of 1974.

          ___  Investment Adviser. The Buyer is an investment adviser registered
               under the Investment Advisers Act of 1940.

          ___  SBIC. The Buyer is a Small Business  Investment  Company licensed
               by the U.S. Small Business Administration under Section 301(c) or
               (d) of the Small Business Investment Act of 1958.

          ___  Business Development Company. The Buyer is a business development
               company  as  defined  in  Section  202(a)(22)  of the  Investment
               Advisers Act of 1940.

        ___    Trust Fund.  The Buyer is a trust fund whose trustee is a bank or
               trust company and whose  participants  are  exclusively (a) plans
               established   and   maintained   by  a   State,   its   political
               subdivisions,  or any agency or  instrumentality  of the State or
               its political subdivisions,  for the benefit of its employees, or
               (b) employee  benefit  plans within the meaning of Title I of the
               Employee  Retirement  Income  Security Act of 1974,  but is not a
               trust fund that includes as  participants  individual  retirement
               accounts or H.R. 10 plans.

     3. The term  "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer,  (ii) securities that are part of an
unsold allotment to or subscription by the

                                             C-5

<PAGE>

Buyer,  if the Buyer is a dealer,  (iii) bank deposit notes and  certificates of
deposit, (iv) loan participations,  (v) repurchase  agreements,  (vi) securities
owned but subject to a repurchase  agreement and (vii)  currency,  interest rate
and commodity swaps.

        4. For purposes of determining the aggregate  amount of securities owned
and/or invested on a discretionary  basis by the Buyer,  the Buyer used the cost
of such  securities  to the  Buyer  and did not  include  any of the  securities
referred to in the preceding  paragraph.  Further, in determining such aggregate
amount,  the Buyer may have included  securities  owned by  subsidiaries  of the
Buyer,  but only if such  subsidiaries  are  consolidated  with the Buyer in its
financial  statements  prepared in accordance with generally accepted accounting
principles  and if the  investments of such  subsidiaries  are managed under the
Buyer's direction.  However, such securities were not included if the Buyer is a
majority-owned,  consolidated  subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

        5.  The  Buyer  acknowledges  that it is  familiar  with  Rule  144A and
understands  that the  seller to it and other  parties  related to the Rule 144A
Securities are relying and will continue to rely on the  statements  made herein
because one or more sales to the Buyer may be in reliance on Rule 144A.

___     ___    Will the Buyer be purchasing the Rule 144A
Yes     No     Securities only for the Buyer's own account?

        6. If the answer to the  foregoing  question is "no",  the Buyer  agrees
that,  in connection  with any purchase of securities  sold to the Buyer for the
account of a third party  (including  any separate  account) in reliance on Rule
144A,  the Buyer will only purchase for the account of a third party that at the
time is a "qualified  institutional  buyer"  within the meaning of Rule 144A. In
addition,  the Buyer  agrees that the Buyer will not purchase  securities  for a
third party unless the Buyer has obtained a current  representation  letter from
such third party or taken other appropriate  steps  contemplated by Rule 144A to
conclude that such third party  independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

        7. The Buyer will notify each of the parties to which this certification
is made of any changes in the  information and  conclusions  herein.  Until such
notice is given,  the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.
                                            -----------------------------
                                            Print Name of Buyer

                                            By:    _______________________
                                                   Name:
                                                   Title:

                                            Date:  _______________________

                                             C-6

<PAGE>

                              ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

               The  undersigned  hereby  certifies as follows in connection with
the Rule 144A Investment Representation to which this Certification is attached:

               1. As indicated  below,  the undersigned is the President,  Chief
Financial  Officer or Senior Vice  President  of the Buyer or, if the Buyer is a
"qualified  institutional  buyer" as that term is defined in Rule 144A under the
Securities  Act of 1933  ("Rule  144A")  because  Buyer is part of a  Family  of
Investment Companies (as defined below), is such an officer of the Adviser.

               2.  In  connection  with  purchases  by  Buyer,  the  Buyer  is a
"qualified institutional buyer"as defined in SEC Rule 144A because (i) the Buyer
is an investment  company  registered under the Investment  Company Act of 1940,
and (ii) as marked below,  the Buyer alone,  or the Buyer's Family of Investment
Companies,  owned at least  $100,000,000 in securities  (other than the excluded
securities  referred to below) as of the end of the Buyer's  most recent  fiscal
year. For purposes of determining the amount of securities owned by the Buyer or
the Buyer's  Family of Investment  Companies,  the cost of such  securities  was
used.

        ____   The Buyer owned  $___________________  in securities  (other than
               the excluded  securities  referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being  calculated in
               accordance with Rule 144A).

        ____   The Buyer is part of a Family of Investment Companies which owned
               in the aggregate  $______________  in securities  (other than the
               excluded  securities  referred  to  below)  as of the  end of the
               Buyer's most recent fiscal year (such amount being  calculated in
               accordance with Rule 144A).

               3. The term "Family of Investment Companies" as used herein means
two or more  registered  investment  companies (or series thereof) that have the
same investment adviser or investment advisers that are affiliated (by virtue of
being majority owned  subsidiaries  of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

               4. The term  "securities"  as used  herein  does not  include (i)
securities  of  issuers  that are  affiliated  with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of  deposit,  (iii)  loan  participations,   (iv)  repurchase  agreements,   (v)
securities  owned but  subject  to a  repurchase  agreement  and (vi)  currency,
interest rate and commodity swaps.

                                             C-7

<PAGE>

               5. The Buyer is familiar with Rule 144A and understands that each
of the parties to which this certification is made are relying and will continue
to rely on the  statements  made  herein  because one or more sales to the Buyer
will be in reliance on Rule 144A. In addition,  the Buyer will only purchase for
the Buyer's own account.

               6. The undersigned  will notify each of the parties to which this
certification is made of any changes in the information and conclusions  herein.
Until such notice,  the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this  certification by the undersigned as of the date of such
purchase.

-----------------------------
Print Name of Buyer

By:     _______________________
        Name:
        Title:

IF AN ADVISER:

-----------------------------
Print Name of Buyer

Date:   _______________________

                                             C-8

<PAGE>

                                          EXHIBIT D

                            FORM OF INVESTOR REPRESENTATION LETTER

                                      ___________, 20__

Residential Funding Mortgage Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

JPMorgan Chase Bank
450 West 33rd Street, 14th Floor
New York, NY 10001

Attention: Capital Markets Fiduciary Services

                      Re:    Home Loan-Backed Certificates
                                Series 2002-HI2

Ladies and Gentlemen:

               __________________  (the  "Purchaser")  intends to purchase  from
(the "Seller") a ___% Certificate  Percentage Interest of Certificates of Series
2002-HI2 (the "Certificates"), issued pursuant to the Amended and Restated Trust
Agreement  (the  "Trust  Agreement"),   dated  as  of  March  26,  2002  between
Residential Funding Mortgage Securities II, Inc. as depositor (the"Company") and
Wilmington  Trust  Company,   as  owner  trustee  (the  "Owner   Trustee"),   as
acknowledged  and agreed by JPMorgan  Chase Bank as Certificate  Registrar.  All
terms used herein and not otherwise defined shall have the meanings set forth in
the Trust Agreement. The Purchaser hereby certifies, represents and warrants to,
and covenants with, the Company and the Certificate Registrar that:

                      1. The  Purchaser  understands  that (a) the  Certificates
               have not been and will not be registered  or qualified  under the
               Securities  Act of  1933,  as  amended  (the"Act")  or any  state
               securities law, (b) the Company is not required to so register or
               qualify the Certificates, (c) the Certificates may be resold only
               if registered and qualified pursuant to the provisions of the Act
               or  any  state  securities  law,  or if an  exemption  from  such
               registration  and  qualification  is  available,  (d)  the  Trust
               Agreement  contains  restrictions  regarding  the transfer of the
               Certificates and (e) the  Certificates  will bear a legend to the
               foregoing effect.

                    2. The Purchaser is acquiring the  Certificates  for its own
               account for investment only and not with a view to or for sale in
               connection with any distribution

                                             D-1

<PAGE>

               thereof  in  any  manner  that  would  violate  the  Act  or  any
               applicable state securities laws.

                      3.  The  Purchaser  is  (a) a  substantial,  sophisticated
               institutional  investor  having such  knowledge and experience in
               financial  and  business  matters,  and, in  particular,  in such
               matters related to securities  similar to the Certificates,  such
               that  it is  capable  of  evaluating  the  merits  and  risks  of
               investment  in the  Certificates,  (b) able to bear the  economic
               risks  of such an  investment  and (c) an  "accredited  investor"
               within the  meaning of Rule  501(a)  promulgated  pursuant to the
               Act.

                      4. The Purchaser has been  furnished  with, and has had an
               opportunity  to  review  (a) [a  copy  of the  Private  Placement
               Memorandum, dated ___________, 20__, relating to the Certificates
               (b)] a copy  of the  Trust  Agreement  and  [b]  [c]  such  other
               information  concerning the Certificates,  the Home Loans and the
               Company as has been  requested by the Purchaser  from the Company
               or the Seller and is  relevant  to the  Purchaser's  decision  to
               purchase the  Certificates.  The  Purchaser has had any questions
               arising from such review answered by the Company or the Seller to
               the  satisfaction  of the  Purchaser.  [If the  Purchaser did not
               purchase the Certificates  from the Seller in connection with the
               initial  distribution of the Certificates and was provided with a
               copy  of the  Private  Placement  Memorandum  (the  "Memorandum")
               relating  to the  original  sale  (the  "Original  Sale")  of the
               Certificates by the Company, the Purchaser acknowledges that such
               Memorandum was provided to it by the Seller,  that the Memorandum
               was prepared by the Company solely for use in connection with the
               Original  Sale  and  the  Company  did  not   participate  in  or
               facilitate  in any way the  purchase of the  Certificates  by the
               Purchaser from the Seller,  and the Purchaser agrees that it will
               look solely to the Seller and not to the Company  with respect to
               any damage, liability, claim or expense arising out of, resulting
               from or in  connection  with (a) error or  omission,  or  alleged
               error  or  omission,  contained  in the  Memorandum,  or (b)  any
               information,  development  or event arising after the date of the
               Memorandum.]

                      5.  The  Purchaser  has  not  and  will  not  nor  has  it
               authorized or will it authorize any person to (a) offer,  pledge,
               sell,  dispose of or  otherwise  transfer  any  Certificate,  any
               interest in any Certificate or any other similar  security to any
               person in any manner, (b) solicit any offer to buy or to accept a
               pledge,  disposition  of other transfer of any  Certificate,  any
               interest in any  Certificate  or any other similar  security from
               any person in any manner,  (c)  otherwise  approach or  negotiate
               with respect to any Certificate,  any interest in any Certificate
               or any other similar security with any person in any manner,  (d)
               make any general  solicitation by means of general advertising or
               in any other manner or (e) take any other action, that (as to any
               of (a) through (e) above) would  constitute a distribution of any
               Certificate  under the Act, that would render the  disposition of
               any  Certificate a violation of Section 5 of the Act or any state
               securities   law,   or  that  would   require   registration   or
               qualification pursuant

                                             D-2

<PAGE>

               thereto. The Purchaser will not sell or otherwise transfer any of
               the Certificates, except in compliance with the provisions of the
               Trust Agreement.

                      6.     The Purchaser represents:

(i) that either (a) or (b) is satisfied, as marked below:

               ____ a. The  Purchaser  is not an employee  benefit or other plan
subject to the  Employee  Retirement  Income  Security  Act of 1974,  as amended
("ERISA"),  or Section 4975 of the Internal Revenue Code of 1986 (the "Code"), a
Person acting, directly or indirectly,  on behalf of any such plan or any Person
acquiring such  Certificates  with "plan assets" of a Plan within the meaning of
the Department of Labor regulation  promulgated at 29 C.F.R.  ss.2510.3-101  and
will provide a certification  in the form of Exhibit G to the Trust Agreement to
that effect; or

               ____ b. The  Purchaser  will  provide  the  Depositor,  the Owner
Trustee,  the  Certificate  Registrar and the Master Servicer with an opinion of
counsel,  satisfactory  to the  Depositor,  the Owner Trustee,  the  Certificate
Registrar and the Master  Servicer,  to the effect that the purchase and holding
of a  Certificate  by or  on  behalf  of  the  Purchaser  is  permissible  under
applicable law, will not constitute or result in a prohibited  transaction under
Section 406 of ERISA or Section 4975 of the Code (or  comparable  provisions  of
any  subsequent  enactments)  and will not  subject  the  Depositor,  the  Owner
Trustee,  the Certificate  Registrar or the Master Servicer to any obligation or
liability  (including  liabilities  under ERISA or Section  4975 of the Code) in
addition to those  undertaken in the Trust  Agreement,  which opinion of counsel
shall not be an expense of the  Depositor,  the Owner Trustee,  the  Certificate
Registrar or the Master Servicer; and

(ii) the Purchaser is familiar with the prohibited transaction  restrictions and
fiduciary  responsibility  requirements  of  Sections  406 and 407 of ERISA  and
Section 4975 of the Code and understands  that each of the parties to which this
certification  is made is relying and will  continue  to rely on the  statements
made in this paragraph 6.

     7. The Purchaser is acquiring the Certificate for its own behalf and is not
acting as agent or custodian for any other person or entity in  connection  with
such acquisition;

     8. The Purchaser is not a non-United  States person for federal  income tax
purposes.

                                                   Very truly yours,

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

                                             D-3

<PAGE>

                                          EXHIBIT E

                           FORM OF TRANSFEROR REPRESENTATION LETTER

                                       __________, 20__

Residential Funding Mortgage Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

JPMorgan Chase Bank
450 West 33rd Street, 14th Floor
New York, NY 10001

Attention: Capital Markets Fiduciary Services

                      Re:    Home Loan-Backed Certificates
                                Series 2002-HI2

Ladies and Gentlemen:

               ____________________  (the "Purchaser")  intends to purchase from
(the "Seller") a ___% Certificate  Percentage Interest of Certificates of Series
2002-HI2 (the "Certificates"), issued pursuant to the Amended and Restated Trust
Agreement  (the  "Trust  Agreement"),   dated  as  of  March  26,  2002  between
Residential  Funding  Mortgage  Securities II, Inc. as depositor (the "Company")
and  Wilmington  Trust  Company,  as owner  trustee  (the "Owner  Trustee"),  as
acknowledged  and agreed by JPMorgan  Chase Bank as Certificate  Registrar.  All
terms used herein and not otherwise defined shall have the meanings set forth in
the Trust Agreement.  The Seller hereby  certifies,  represents and warrants to,
and covenants with, the Company and the Certificate Registrar that:

               Neither  the  Seller  nor  anyone  acting on its  behalf  has (a)
offered,  pledged,  sold, disposed of or otherwise  transferred any Certificate,
any interest in any  Certificate or any other similar  security to any person in
any  manner,  (b)  has  solicited  any  offer  to buy  or to  accept  a  pledge,
disposition  or  other  transfer  of  any  Certificate,   any  interest  in  any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar  security with any person in any manner,
(d) has made any general  solicitation by means of general advertising or in any
other manner, or (e) has taken any other action,  that (as to any of (a) through
(e)  above)  would  constitute  a  distribution  of the  Certificates  under the
Securities  Act of 1933 (the "Act"),  that would render the  disposition  of any
Certificate a violation of Section 5 of the Act or any state  securities law, or
that

                                             E-1

<PAGE>

would require  registration or qualification  pursuant thereto.  The Seller will
not act, in any manner set forth in the  foregoing  sentence with respect to any
Certificate.  The Seller has not and will not sell or otherwise  transfer any of
the  Certificates,  except  in  compliance  with  the  provisions  of the  Trust
Agreement.

                                                   Very truly yours,

                                                   --------------------------
                                                          (Seller)

                                                   By:    ____________________
                                                          Name:
                                                          Title:

                                             E-2

<PAGE>

                                          EXHIBIT F

                              CERTIFICATE OF NON-FOREIGN STATUS

        This  Certificate of  Non-Foreign  Status  ("certificate")  is delivered
pursuant to Section 3.05 of the Amended and Restated Trust  Agreement,  dated as
of March 26, 2002 (the "Trust  Agreement"),between  Residential Funding Mortgage
Securities  II, Inc.,  as  depositor  and  Wilmington  Trust  Company,  as Owner
Trustee, in connection with the acquisition of, transfer to or possession by the
undersigned, whether as beneficial owner (the "Beneficial Owner"), or nominee on
behalf of the Beneficial Owner of the Residential Home Loan-Backed Certificates,
Series 2002-HI2  (the"Certificate").  Capitalized  terms used but not defined in
this certificate have the respective meanings given them in the Trust Agreement.

        Each holder must  complete Part I, Part II (if the holder is a nominee),
and in all cases sign and otherwise complete Part III.

        In addition,  each holder shall submit with the  Certificate an IRS Form
W-9 relating to such holder.

        To confirm to the Trust that the provisions of Sections 871, 881 or 1446
of  the  Internal   Revenue  Code  (relating  to  withholding   tax  on  foreign
shareholders  and partners) do not apply in respect of the  Certificate  held by
the undersigned, the undersigned hereby certifies:

Part I -                     Complete Either A or B

               A.     Individual as Beneficial Owner

                    1.   I am  (The  Beneficial  Owner  is ) not a  non-resident
                         alien for purposes of U.S. income taxation;

                    2.   My (The Beneficial Owner's) name and home address are:

                             =============================
                             _____________________________; and

                    3.   My   (The    Beneficial    Owner's)    U.S.    taxpayer
                         identification   number  (Social  Security  Number)  is
                         _______________.

               B.     Corporate, Partnership or Other Entity as Beneficial Owner

                                             F-1

<PAGE>

                    1.   (Name  of  the  Beneficial  Owner)  is  not  a  foreign
                         corporation,  foreign  partnership,  foreign  trust  or
                         foreign  estate (as those terms are defined in the Code
                         and Treasury Regulations;

                    2.   The  Beneficial  Owner's  office  address  and place of
                         incorporation (if applicable) is ______________; and

                    3.   The  Beneficial  Owner's U.S.  employer  identification
                         number is.

Part II -             Nominees

        If  the  undersigned  is the  nominee  for  the  Beneficial  Owner,  the
undersigned  certifies  that this  certificate  has been made in  reliance  upon
information contained in:

               _____  an IRS Form W-9

               _____  a form such as this or substantially similar

provided to the  undersigned  by an appropriate  person and (i) the  undersigned
agrees to notify the Trust at least  thirty (30) days prior to the date that the
form  relied  upon  becomes  obsolete,  and (ii) in  connection  with  change in
Beneficial  Owners,  the  undersigned  agrees  to  submit a new  Certificate  of
Non-Foreign Status to the Trust promptly after such change.

Part III -            Declaration

        The undersigned, as the Beneficial Owner or a nominee thereof, agrees to
notify the Trust  within sixty (60) days of the date that the  Beneficial  Owner
becomes a foreign person. The undersigned  understands that this certificate may
be  disclosed  to the  Internal  Revenue  Service  by the  Trust  and any  false
statement contained therein could be punishable by fines, imprisonment or both.

                                             F-2

<PAGE>

        Under  penalties  of  perjury,  I  declare  that  I have  examined  this
certificate  and to the best of my knowledge and belief it is true,  correct and
complete and will further  declare that I will inform the Trust of any change in
the  information  provided above,  and, if applicable,  I further declare that I
have the authority* to sign this document.

------------------------
Name

------------------------
Title (if applicable)

------------------------
Signature and Date

*NOTE: If signed  pursuant to a power of  attorney,  the power of attorney  must
     accompany this certificate.

                                             F-3

<PAGE>

                                          EXHIBIT G

                             FORM OF ERISA REPRESENTATION LETTER

                                    _____________, 20__

Residential Funding Mortgage Securities II, Inc.
8400 Normandale Lake Boulevard
Suite 250
Minneapolis, Minnesota 55437

Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890

Residential Funding Corporation
2255 N. Ontario Street
Burbank, California 91504-3120

[CERTIFICATE REGISTRAR]

                      Re:    Residential Funding Mortgage Securities II, Inc.
                 Home Loan-Backed Certificates, Series 2002-HI2

Dear Sirs:

               __________________________________  (the "Transferee") intends to
acquire  from   _____________________  (the  "Transferor")  a  ___%  Certificate
Percentage Interest of Residential Mortgage Securities II, Inc. Home Loan-Backed
Certificates,  Series  2002-HI2  (the  "Certificates"),  issued  pursuant  to an
Amended and Restated  Trust  Agreement (the "Trust  Agreement")  dated March 26,
2002 among Residential  Funding Mortgage  Securities II, Inc., as depositor (the
"Depositor")  and Wilmington  Trust Company,  as trustee (the "Owner  Trustee").
Capitalized  terms used herein and not otherwise defined shall have the meanings
assigned thereto in the Trust Agreement.

               The Transferee hereby certifies,  represents and warrants to, and
covenants with, the Depositor,  the Owner Trustee, the Certificate Registrar and
the Master Servicer that:

               (1) The  Certificates (i) are not being acquired by, and will not
        be  transferred  to, any  employee  benefit  plan  within the meaning of
        section 3(3) of the Employee  Retirement Income Security Act of 1974, as
        amended ("ERISA") or other retirement arrangement,  including individual
        retirement accounts and annuities, Keogh plans and bank collective

                                             G-1

<PAGE>

        investment funds and insurance  company general or separate  accounts in
        which such plans, accounts or arrangements are invested, that is subject
        to Section 406 of ERISA or Section 4975 of the Internal  Revenue Code of
        1986 (the "Code") (any of the foregoing,  a "Plan"),  (ii) are not being
        acquired  with  "plan  assets"  of a  Plan  within  the  meaning  of the
        Department of Labor ("DOL")  regulation,  29 C.F.R. ss. 2510.3-101,  and
        (iii) will not be  transferred  to any Plan or any entity that is deemed
        to be investing in plan assets within the meaning of the DOL regulation,
        29 C.F.R.  ss.  2510.3-101;  and (2) The Transferee is familiar with the
        prohibited   transaction   restrictions  and  fiduciary   responsibility
        requirements  of Sections  406 and 407 of ERISA and Section  4975 of the
        Code  and   understands   that  each  of  the   parties  to  which  this
        certification  is made  is  relying  and  will  continue  to rely on the
        statements made herein.

                                                   Very truly yours,

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

                                                   By:    ______________________
                                                          Name:
                                                          Title:

                                             G-2

<PAGE>HOME LOAN TRUST 2002-HI2

                                     Issuer

                                       AND

                               JPMORGAN CHASE BANK

                                Indenture Trustee

                                    INDENTURE

                           Dated as of March 26, 2002

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

                             HOME LOAN-BACKED NOTES

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

Section                                                                                   Page

                                          Article I

                                         Definitions
<S>             <C>                                                                         <C>
        Section 1.01. Definitions............................................................2
        Section 1.02. Incorporation by Reference of Trust Indenture Act......................2
        Section 1.03. Rules of Construction..................................................2

                                          Article II

                                  Original Issuance of Notes
        Section 2.01. Form...................................................................4
        Section 2.02. Execution, Authentication and Delivery.................................4

                                         Article III

                                          Covenants
        Section 3.01. Collection of Payments with respect to the Home Loans..................5
        Section 3.02. Maintenance of Office or Agency........................................5
        Section 3.03. Money for Payments To Be Held in Trust; Paying Agent...................5
        Section 3.04. Existence..............................................................6
        Section 3.05. Payment of Principal and Interest; Defaulted Interest..................7
        Section 3.06. Protection of Trust Estate.............................................9
        Section 3.07. Opinions as to Trust Estate...........................................10
        Section 3.08. Performance of Obligations; Servicing Agreement.......................11
        Section 3.09. Negative Covenants....................................................11
        Section 3.10. Annual Statement as to Compliance.....................................12
        Section 3.11. Recording of Assignments..............................................12
        Section 3.12. Representations and Warranties Concerning the Home Loans..............12
        Section 3.13. Assignee of Record of the Home Loans..................................12
        Section 3.14. Master Servicer as Agent and Bailee of the Indenture Trustee..........12
        Section 3.15. Investment Company Act................................................13
        Section 3.16. Issuer May Consolidate, etc...........................................13
        Section 3.17. Successor or Transferee...............................................15
        Section 3.18. No Other Business.....................................................15
        Section 3.19. No Borrowing..........................................................15
        Section 3.20. Guarantees, Loans, Advances and Other Liabilities.....................15
        Section 3.21. Capital Expenditures..................................................15
        Section 3.22. Owner Trustee Not Liable for Certificates or Related Documents........15
        Section 3.23. Restricted Payments...................................................16
        Section 3.24. Notice of Events of Default...........................................16
        Section 3.25. Further Instruments and Acts..........................................16

                                              i

<PAGE>

        Section 3.26. Statements to Noteholders.............................................16
        Section 3.27. Payments under the Credit Enhancement Instrument......................16
        Section 3.28. Payments under the Limited Reimbursement Agreement....................17
        Section 3.29. Determination of Class A-I-1 Note Rate................................17

                                          Article IV

                      The Notes; Satisfaction and Discharge of Indenture
        Section 4.01. The Notes.............................................................18
        Section 4.02. Registration of and Limitations on Transfer and Exchange of Notes;
        Appointment of Certificate Registrar................................................18
        Section 4.03. Mutilated, Destroyed, Lost or Stolen Notes............................20
        Section 4.04. Persons Deemed Owners.................................................20
        Section 4.05. Cancellation..........................................................20
        Section 4.06. Book-Entry Notes......................................................21
        Section 4.07. Notices to Depository.................................................22
        Section 4.08. Definitive Notes......................................................22
        Section 4.09. Tax Treatment.........................................................22
        Section 4.10. Satisfaction and Discharge of Indenture...............................22
        Section 4.11. Application of Trust Money............................................24
        Section 4.12. Subrogation and Cooperation...........................................24
        Section 4.13. Repayment of Monies Held by Paying Agent..............................25
        Section 4.14. Temporary Notes.......................................................25

                                          Article V

                                     Default and Remedies
        Section 5.01. Events of Default.....................................................26
        Section 5.02. Acceleration of Maturity; Rescission and Annulment....................26
        Section 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
         ...................................................................................27
        Section 5.04. Remedies; Priorities..................................................29
        Section 5.05. Optional Preservation of the Trust Estate.............................30
        Section 5.06. Limitation of Suits...................................................31
        Section 5.07. Unconditional Rights of Noteholders to Receive Principal and Interest
         ...................................................................................31
        Section 5.08. Restoration of Rights and Remedies....................................32
        Section 5.09. Rights and Remedies Cumulative........................................32
        Section 5.10. Delay or Omission Not a Waiver........................................32
        Section 5.11. Control by Noteholders................................................32
        Section 5.12. Waiver of Past Defaults...............................................33
        Section 5.13. Undertaking for Costs.................................................33
        Section 5.14. Waiver of Stay or Extension Laws......................................33
        Section 5.15. Sale of Trust Estate..................................................34
        Section 5.16. Action on Notes.......................................................35
        Section 5.17. Performance and Enforcement of Certain Obligations....................35

                                              ii

<PAGE>

                                          Article VI

                                    The Indenture Trustee
        Section 6.01. Duties of Indenture Trustee...........................................37
        Section 6.02. Rights of Indenture Trustee...........................................38
        Section 6.03. Individual Rights of Indenture Trustee................................38
        Section 6.04. Indenture Trustee's Disclaimer........................................38
        Section 6.05. Notice of Event of Default............................................39
        Section 6.06. Reports by Indenture Trustee to Holders...............................39
        Section 6.07. Compensation and Indemnity............................................39
        Section 6.08. Replacement of Indenture Trustee......................................39
        Section 6.09. Successor Indenture Trustee by Merger.................................40
        Section 6.10. Appointment of Co-Indenture Trustee or Separate Indenture Trustee.....41
        Section 6.11. Eligibility; Disqualification.........................................42
        Section 6.12. Preferential Collection of Claims Against Issuer......................42
        Section 6.13. Representations and Warranties........................................42
        Section 6.14. Directions to Indenture Trustee.......................................43
        Section 6.15. Indenture Trustee May Own Securities..................................43

                                         Article VII

                                Noteholders' Lists and Reports
        Section 7.01. Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders
         ...................................................................................44
        Section 7.02. Preservation of Information; Communications to Noteholders............44
        Section 7.03. Reports by Issuer.....................................................44
        Section 7.04. Reports by Indenture Trustee..........................................45

                                         Article VIII

                             Accounts, Disbursements and Releases
        Section 8.01. Collection of Money...................................................46
        Section 8.02. Trust Accounts........................................................46
        Section 8.03. Officer's Certificate.................................................46
        Section 8.04. Termination Upon Distribution to Noteholders..........................47
        Section 8.05. Release of Trust Estate...............................................47
        Section 8.06. Surrender of Notes Upon Final Payment.................................47

                                          Article IX

                                   Supplemental Indentures
        Section 9.01. Supplemental Indentures Without Consent of Noteholders................48
        Section 9.02. Supplemental Indentures With Consent of Noteholders...................49
        Section 9.03. Execution of Supplemental Indentures..................................51
        Section 9.04. Effect of Supplemental Indenture......................................51

                                             iii

<PAGE>

        Section 9.05. Conformity with Trust Indenture Act...................................51
        Section 9.06. Reference in Notes to Supplemental Indentures.........................51

                                          Article X

                                        Miscellaneous
        Section 10.01.Compliance Certificates and Opinions, etc.............................52
        Section 10.02.Form of Documents Delivered to Indenture Trustee......................53
        Section 10.03.Acts of Noteholders...................................................54
        Section 10.04.Notices, etc., to Indenture Trustee, Issuer, Credit Enhancer and Rating
        Agencies............................................................................55
        Section 10.05.Notices to Noteholders; Waiver........................................55
        Section 10.06.Alternate Payment and Notice Provisions...............................56
        Section 10.07.Conflict with Trust Indenture Act.....................................56
        Section 10.08.Effect of Headings....................................................56
        Section 10.09.Successors and Assigns................................................56
        Section 10.10.Separability..........................................................56
        Section 10.11.Benefits of Indenture.................................................57
        Section 10.12.Legal Holidays........................................................57
        Section 10.13.GOVERNING LAW.........................................................57
        Section 10.14.Counterparts..........................................................57
        Section 10.15.Recording of Indenture................................................57
        Section 10.16.Issuer Obligation.....................................................57
        Section 10.17.No Petition...........................................................58
        Section 10.18.Inspection............................................................58

Signatures and Seals
Acknowledgments

EXHIBITS

Exhibit A-1       Form of Notes

Exhibit A-2       Form of Class A-IO Notes

Appendix A        Definitions

</TABLE>
                                              iv

<PAGE>

                  This is the  Indenture,  dated as of March 26,  2002,  between
HOME LOAN TRUST 2002-HI2,  a Delaware  business trust, as Issuer (the "Issuer"),
and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture Trustee"),

                                WITNESSETH THAT:

                  Each party  hereto  agrees as follows  for the  benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer's
Series 2002-HI2 Home Loan-Backed Notes (the "Notes").

                                 GRANTING CLAUSE

                  The  Issuer  hereby  Grants to the  Indenture  Trustee  at the
Closing Date, as trustee for the benefit of the Holders of the Notes, all of the
Issuer's  right,  title and interest in and to whether now existing or hereafter
created  (a) the Home Loans,  (b) all funds on deposit  from time to time in the
Payment  Account  and  in all  proceeds  thereof;  (c)  the  Credit  Enhancement
Instrument and (d) all present and future claims,  demands, causes and choses in
action in respect of any or all of the  foregoing  and all payments on or under,
and all proceeds of every kind and nature  whatsoever  in respect of, any or all
of the  foregoing  and all payments on or under,  and all proceeds of every kind
and nature whatsoever in the conversion thereof, voluntary or involuntary,  into
cash or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts,  acceptances,  checks, deposit accounts, rights to payment of any
and every kind, and other forms of obligations and receivables,  instruments and
other  property  which at any time  constitute all or part of or are included in
the proceeds of any of the foregoing  (collectively,  the "Trust  Estate" or the
"Collateral").

                  The foregoing  Grant is made in trust to secure the payment of
principal  of and interest  on, and any other  amounts  owing in respect of, the
Notes,  equally and ratably without prejudice,  priority or distinction,  and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture.

                  The  foregoing  Grant shall inure to the benefit of the Credit
Enhancer  in  respect of draws made on the  Credit  Enhancement  Instrument  and
amounts owing from time to time pursuant to the Insurance Agreement  (regardless
of whether such amounts relate to the Notes or the Certificates), and such Grant
shall  continue in full force and effect for the benefit of the Credit  Enhancer
until all such amounts owing to it have been repaid in full.

                  The Indenture Trustee,  as trustee on behalf of the Holders of
the Notes,  acknowledges  such Grant,  accepts the trust under this Indenture in
accordance  with the  provisions  hereof  and  agrees to  perform  its duties as
Indenture Trustee as required herein.

                                              1

<PAGE>

                                    Article I

                                   Definitions

        Section 1.01. Definitions. For all purposes of this Indenture, except as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such  terms  in the  Definitions  attached  hereto  as  Appendix  A which  is
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

        Section  1.02.  Incorporation  by  Reference  of  Trust  Indenture  Act.
Whenever this  Indenture  refers to a provision of the Trust  Indenture Act (the
"TIA"),  the provision is  incorporated  by reference in and made a part of this
Indenture.  The  following TIA terms used in this  Indenture  have the following
meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

               "indenture   trustee"  or   "institutional   trustee"  means  the
          Indenture Trustee.

               "obligor" on the  indenture  securities  means the Issuer and any
          other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined by
        the TIA,  defined  by TIA  reference  to  another  statute or defined by
        Commission rule have the meaning assigned to them by such definitions.

               Section 1.03. Rules of Construction. Unless the context otherwise
          requires:

                      (i)   a term has the meaning assigned to it;

                      (ii) an  accounting  term not  otherwise  defined  has the
        meaning assigned to it in accordance with generally accepted  accounting
        principles as in effect from time to time;

               (iii) "or" is not exclusive;

               (iv) "including" means including without limitation;

               (v) words in the  singular  include  the  plural and words in the
          plural include the singular; and

                                              2

<PAGE>

                      (vi) any  agreement,  instrument  or  statute  defined  or
        referred to herein or in any  instrument  or  certificate  delivered  in
        connection herewith means such agreement,  instrument or statute as from
        time to time amended, modified or supplemented and includes (in the case
        of agreements or instruments)  references to all attachments thereto and
        instruments incorporated therein; references to a Person are also to its
        permitted successors and assigns.

                                              3

<PAGE>

                                   Article II

                           Original Issuance of Notes

        Section 2.01.  Form.  The Notes,  together with the Indenture  Trustee's
certificate of  authentication,  shall be in substantially the form set forth in
Exhibit A-1 and A-2, with such appropriate insertions, omissions,  substitutions
and other variations as are required or permitted by this Indenture and may have
such  letters,  numbers or other  marks of  identification  and such  legends or
endorsements placed thereon as may, consistently  herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

        The Notes shall be  typewritten,  printed,  lithographed  or engraved or
produced by any  combination  of these methods  (with or without steel  engraved
borders),  all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.  The terms of the Notes set forth in
Exhibit A-1 and A-2 are part of the terms of this Indenture.

     Section 2.02.  Execution,  Authentication and Delivery.  The Notes shall be
executed  on  behalf  of the  Issuer  by any of  its  Authorized  Officers.  The
signature  of any  such  Authorized  Officer  on the  Notes  may  be  manual  or
facsimile.

        Notes bearing the manual or facsimile  signature of individuals who were
at  any  time  Authorized   Officers  of  the  Issuer  shall  bind  the  Issuer,
notwithstanding  that such  individuals  or any of them have ceased to hold such
offices prior to the  authentication  and delivery of such Notes or did not hold
such offices at the date of such Notes.

        The Indenture Trustee shall upon Issuer Request authenticate and deliver
Notes for original issue in an aggregate initial principal amount of $43,101,000
with  respect to the Class A-I-1  Notes,  $32,786,000  with respect to the Class
A-I-2 Notes, $32,808,000 with respect to the Class A-I-3 Notes, $21,193,000 with
respect to the Class A-I-4 Notes,  $21,418,000  with respect to the Class A-I- 5
Notes,  $40,489,000  with  respect to the Class A-I-6  Notes,  $33,205,000  with
respect to the Class A-I-7 Notes and $100,000,000 with respect to the Class A-II
Notes. The Indenture Trustee shall upon Issuer Request  authenticate and deliver
Notes for original issue in an aggregate  initial notional amount of $32,500,000
with respect to the Class A-IO Notes.

        The  Notes  shall be dated the date of their  authentication.  The Notes
shall be  issuable  as  registered  Notes and the Notes shall be issuable in the
minimum  initial  Note  Balances or Notional  Amounts of $25,000 and in integral
multiples of $1 in excess thereof.

        No Note shall be  entitled  to any benefit  under this  Indenture  or be
valid or  obligatory  for any  purpose,  unless  there  appears  on such  Note a
certificate  of  authentication  substantially  in the form  provided for herein
executed  by  the  Indenture  Trustee  by  the  manual  signature  of one of its
authorized  signatories,  and such certificate upon any Note shall be conclusive
evidence, and the only evidence,  that such Note has been duly authenticated and
delivered hereunder.

                                              4

<PAGE>

                                   Article III

                                    Covenants

        Section 3.01. Collection of Payments with respect to the Home Loans. The
Indenture  Trustee shall  establish and maintain with itself the Payment Account
in which the Indenture  Trustee shall,  subject to the terms of this  paragraph,
deposit,  on the  same day as it is  received  from the  Master  Servicer,  each
remittance received by the Indenture Trustee with respect to the Home Loans. The
Indenture  Trustee  shall make all  payments of principal of and interest on the
Notes,  subject to Section  3.03, as provided in Section 3.05 herein from monies
on deposit in the Payment Account.

        Section 3.02.  Maintenance of Office or Agency. The Issuer will maintain
in the City of New York, an office or agency where,  subject to  satisfaction of
conditions  set forth  herein,  Notes may be  surrendered  for  registration  of
transfer  or  exchange,  and where  notices and demands to or upon the Issuer in
respect  of the  Notes and this  Indenture  may be  served.  The  Issuer  hereby
initially appoints the Indenture Trustee to serve as its agent for the foregoing
purposes.  If at any time the Issuer  shall fail to maintain  any such office or
agency or shall fail to furnish the Indenture  Trustee with the address thereof,
such  surrenders,  notices and  demands  may be made or served at the  Corporate
Trust Office,  and the Issuer hereby appoints the Indenture Trustee as its agent
to receive all such surrenders, notices and demands.

        Section 3.03. Money for Payments To Be Held in Trust;  Paying Agent. (a)
As  provided in Section  3.01,  all  payments  of amounts  due and payable  with
respect to any Notes that are to be made from amounts withdrawn from the Payment
Account  pursuant  to Section  3.01 shall be made on behalf of the Issuer by the
Indenture  Trustee or by the Paying Agent,  and no amounts so withdrawn from the
Payment Account for payments of Notes shall be paid over to the Issuer except as
provided in this  Section  3.03.  The Issuer will cause each Paying  Agent other
than the Indenture  Trustee to execute and deliver to the  Indenture  Trustee an
instrument  in which such Paying  Agent shall agree with the  Indenture  Trustee
(and if the Indenture Trustee acts as Paying Agent it hereby so agrees), subject
to the provisions of this Section 3.03, that such Paying Agent will:

                      (i) hold all sums held by it for the  payment  of  amounts
        due with  respect to the Notes in trust for the  benefit of the  Persons
        entitled  thereto  until  such  sums  shall be paid to such  Persons  or
        otherwise  disposed  of as  herein  provided  and pay such  sums to such
        Persons as herein provided;

                      (ii) give the  Indenture  Trustee and the Credit  Enhancer
        written  notice of any  default  by the  Issuer  of which it has  actual
        knowledge in the making of any payment  required to be made with respect
        to the Notes;

                      (iii)  at any  time  during  the  continuance  of any such
        default,  upon the written request of the Indenture  Trustee,  forthwith
        pay to the  Indenture  Trustee  all sums so held in trust by such Paying
        Agent;

                                              5

<PAGE>

                      (iv) immediately  resign as Paying Agent and forthwith pay
        to the Indenture Trustee all sums held by it in trust for the payment of
        Notes if at any time it ceases to meet the standards  required to be met
        by a Paying Agent at the time of its appointment;

                      (v) comply with all  requirements of the Code with respect
        to the  withholding  from any  payments  made by it on any  Notes of any
        applicable  withholding  taxes  imposed  thereon and with respect to any
        applicable reporting requirements in connection therewith; and

                      (vi) deliver to the Indenture Trustee a copy of the report
        to Noteholders  prepared with respect to each Payment Date by the Master
        Servicer pursuant to Section 4.01 of the Servicing Agreement.

        The  Issuer  may  at  any  time,   for  the  purpose  of  obtaining  the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Request direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent,  such sums to be held by the Indenture  Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such  payment by any Paying  Agent to the  Indenture  Trustee,  such Paying
Agent shall be released from all further liability with respect to such money.

        Subject to applicable  laws with respect to escheat of funds,  any money
held by the  Indenture  Trustee or any Paying  Agent in trust for the payment of
any amount due with  respect to any Note and  remaining  unclaimed  for one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer  Request;  and the Holder of such Note shall
thereafter,  as an  unsecured  general  creditor,  look only to the  Issuer  for
payment  thereof  (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture  Trustee or such Paying Agent with respect to
such trust money shall thereupon cease;  provided,  however,  that the Indenture
Trustee or such Paying Agent,  before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published  once, in
an  Authorized  Newspaper,  notice that such money  remains  unclaimed and that,
after a date  specified  therein,  which shall not be less than 30 days from the
date of such  publication,  any unclaimed  balance of such money then  remaining
will be repaid to the Issuer.  The Indenture  Trustee may also adopt and employ,
at the  expense  and  direction  of the Issuer,  any other  reasonable  means of
notification of such repayment (including, but not limited to, mailing notice of
such  repayment  to  Holders  whose  Notes  have been  called  but have not been
surrendered  for  redemption  or whose  right to or  interest  in monies due and
payable  but not  claimed is  determinable  from the  records  of the  Indenture
Trustee  or of any  Paying  Agent,  at the last  address of record for each such
Holder).

        Section  3.04.  Existence.  The  Issuer  will  keep in full  effect  its
existence, rights and franchises as a business trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized  under the laws of any other state or of the United States of America,
in which case the Issuer  will keep in full  effect  its  existence,  rights and
franchises  under  the laws of such  other  jurisdiction)  and will  obtain  and
preserve its  qualification  to do business in each  jurisdiction  in which such
qualification   is  or  shall  be   necessary   to  protect  the   validity  and
enforceability  of this  Indenture,  the  Notes,  the Home  Loans and each other
instrument or agreement included in the Trust Estate.

                                              6

<PAGE>

        Section 3.05. Payment of Principal and Interest; Defaulted Interest. (a)
On each Payment Date from amounts on deposit in the Payment  Account (other than
amounts deposited  constituting  prepayment charges), the Paying Agent shall pay
to  the   Noteholders,   the   Certificate   Paying  Agent,  on  behalf  of  the
Certificateholders, and to other Persons the amounts to which they are entitled,
as set forth in the statements  delivered to the Indenture  Trustee  pursuant to
Section 4.01 of the  Servicing  Agreement,  as set forth below in the  following
order of priority:

                      (i) to the Noteholders,  interest at the related Note Rate
        for the related Interest Accrual Period on the related Note Balance,  in
        the case of the Notes  other  than the Class A- IO  Notes,  or  Notional
        Amount,  in the case of the Class A-IO Notes,  immediately prior to such
        Payment  Date,  on a pro rata  basis,  based on the  amount of  interest
        accrued during the related Interest Accrual Period;

                      (ii)  to  the  Noteholders,  other  than  the  Class  A-IO
        Noteholders,  as  principal  on  the  Notes,  the  Principal  Collection
        Distribution  Amount for such Payment  Date,  in the order  described in
        Section 3.05(b) below, until the Note Balances thereof have been reduced
        to zero;

                      (iii)  to the  Noteholders,  other  than  the  Class  A-IO
        Noteholders,   as  principal  on  the  Notes,   the   Liquidation   Loss
        Distribution  Amount for such  Payment  Date and any Excess  Loss Amount
        included in the Credit  Enhancement Draw Amount on such Payment Date, in
        the order  described in Section  3.05(b) below,  until the Note Balances
        thereof have been reduced to zero;

                      (iv) on a pro rata basis, (A) to the Credit Enhancer,  the
        Premium Amount for the Credit  Enhancement  Instrument,  plus any unpaid
        Premium  Amount from any prior  Payment Date (with  interest  thereon as
        provided  in the  Insurance  Agreement),  and  (B) to  the  designee  or
        designees of the Credit Enhancer pursuant to Section 3.28, the amount of
        any  payments  for the Limited  Reimbursement  Agreement,  plus any such
        unpaid  payments from any prior Payment Date (with  interest  thereon as
        provided in the Limited Reimbursement Agreement);

                      (v) to the  Credit  Enhancer,  to  reimburse  it for prior
        draws made on the Credit  Enhancement  Instrument (with interest thereon
        as provided in the Insurance  Agreement)  (except for draws attributable
        to Excess Loss Amounts) provided,  that no such  reimbursement  shall be
        made in respect of amounts that were paid to the Indenture Trustee under
        the Limited Reimbursement Agreement, or for which the Credit Enhancer is
        entitled to reimbursement under the Limited Reimbursement Agreement;

                      (vi)  to  the  Noteholders,  other  than  the  Class  A-IO
        Noteholders,  as principal on the Notes, the Reserve Increase Amount for
        such Payment  Date,  in the order  described in Section  3.05(b)  below,
        until the Note Balances thereof have been reduced to zero;

     (vii) to the Credit Enhancer, any other amounts owed to the Credit Enhancer
pursuant to the Insurance Agreement;

                                              7

<PAGE>

     (viii) to the Indenture Trustee, any amounts owing to the Indenture Trustee
pursuant to Section 6.07 remaining unpaid; and

                      (ix) any  remaining  amount and any  amounts  constituting
        prepayment  charges to the  Certificate  Paying Agent,  on behalf of the
        holders of the Certificates.

provided, however, in the event that on a Payment Date a Credit Enhancer Default
shall have  occurred  and be  continuing,  (a) no  payments  will be made to the
Credit  Enhancer  pursuant to clause (iv)(A) above until all Credit  Enhancement
Draw Amounts that are due and required to be paid by the Credit  Enhancer on the
Notes on such  Payment  Date or were due and  required  to be paid by the Credit
Enhancer  on any prior  Payment  Date have  been paid in full,  (b) any  amounts
payable  to the Credit  Enhancer  pursuant  to clause (v) shall  instead be paid
pursuant to clause  (vii) and (c) any Excess Loss Amounts will be allocated on a
pro  rata  basis to the  Notes  based on their  outstanding  Note  Balances,  in
reduction of the Note Balances  thereof,  until the Note  Balances  thereof have
been reduced to zero. In addition,  on the Final  Insured  Payment Date or other
final  Payment Date  (including  the Payment Date  following any purchase by the
Master  Servicer  of the Home Loans  pursuant to Section  8.08 of the  Servicing
Agreement),  the amount to be paid  pursuant to clause (ii) above shall be equal
to the  aggregate  Note Balance of the Notes  immediately  prior to such Payment
Date and, in addition to the  foregoing,  the Class A-IO Notes shall be paid the
Adjusted Issue Price, if any.

        On each Payment Date, the Certificate  Paying Agent shall deposit in the
Certificate  Distribution  Account  all  amounts it  received  pursuant  to this
Section   3.05   for  the   purpose   of   distributing   such   funds   to  the
Certificateholders.

        The amounts paid to Noteholders shall be paid to the Notes in accordance
with the  applicable  percentage as set forth in paragraph  (b) below.  Interest
will accrue on the Notes  (other  than the Class A-I-1  Notes) on the basis of a
360-day year  consisting  of twelve 30-day  months.  Interest will accrue on the
Class A-I-1 Notes on the basis of a 360-day  year and the actual  number of days
in the related Interest Accrual Period.

        Any  installment of interest or principal,  if any,  payable on any Note
that is  punctually  paid or duly  provided for by the Issuer on the  applicable
Payment  Date shall,  if such Holder  holds Notes of an  aggregate  initial Note
Balance or Notional Amount, as applicable,  of at least  $1,000,000,  be paid to
each  Holder of record on the  preceding  Record  Date,  by wire  transfer to an
account  specified  in writing by such  Holder  reasonably  satisfactory  to the
Indenture Trustee as of the preceding Record Date or in all other cases or if no
such  instructions  have been  delivered to the Indenture  Trustee,  by check or
money order to such Noteholder  mailed to such Holder's address as it appears in
the Note Register the amount  required to be  distributed to such Holder on such
Payment Date pursuant to such Holder's Securities;  provided,  however, that the
Indenture  Trustee  shall not pay to such  Holders  any  amount  required  to be
withheld from a payment to such Holder by the Code.

        (b) Any payments to the Notes pursuant to clauses 3.05(a)(ii), (iii) and
(vi) above plus amounts drawn on the Credit Enhancement Instrument in respect of
principal  and any amounts  paid under the Limited  Reimbursement  Agreement  in
respect of principal shall be distributed concurrently

                                              8

<PAGE>

to (i) the Class A-I Notes in the  aggregate  and (ii) the Class A-II Notes,  in
each  case  in  proportion  to the  pro  rata  percentage  of the sum of (i) the
Principal  Collections  derived from the related Loan Group on that Payment Date
and (ii) the aggregate  amount of Liquidation  Loss Amounts incurred on the Home
Loans in the related  Loan Group for that Payment  Date,  in each case until the
Note  Balances  of the Class A-I Notes or Class A-II Notes have been  reduced to
zero in accordance with the priorities described in this clause (b) below. After
either the Class A-I Notes in the  aggregate or the Class A-II Notes are reduced
to zero, all principal  payments will be  distributed to the remaining  Class or
Classes of Notes  (other  than the Class  A-IO  Notes)  until the Note  Balances
thereof have been reduced to zero,  in  accordance  with the  priorities in this
clause (b) immediately below.

        Any payments of principal allocable to the Class A-I Notes shall be paid
to the Class A-I-1  Notes,  Class A-I-2 Notes,  Class A-I-3  Notes,  Class A-I-4
Notes,  Class A-I-5  Notes,  Class A-I-6  Notes and Class A-I-7  Notes,  in that
order,  in each case  until the  outstanding  Note  Balances  thereof  have been
reduced to zero.

        Any  payments of principal  allocable to the Class A-II Notes,  shall be
paid to the Class A-II Notes until the Note Balance thereof is reduced to zero.

        (c) The principal of each Note,  other than a Class A-IO Note,  shall be
due and  payable in full on the Final  Insured  Payment  Date as provided in the
related form of Note set forth in Exhibit A-1 and A-2. All principal payments on
the Notes shall be made to the Noteholders  entitled  thereto in accordance with
the Percentage  Interests  represented by such Notes. Upon written notice to the
Indenture  Trustee by the Issuer  (or by the  Master  Servicer  on behalf of the
Issuer,  pursuant to Section  8.08(e) of the  Servicing  Agreement) of the Final
Insured  Payment Date for the Notes or other final Payment  Date,  the Indenture
Trustee  shall  notify the related  Noteholders  of record of the Final  Insured
Payment Date or other final Payment  Date,  by mail or facsimile,  no later than
five  Business  Days  prior to the Final  Insured  Payment  Date or other  final
Payment Date and shall specify:

               (i) that the Record Date  otherwise  applicable  to such  Payment
          Date is not applicable;

                      (ii) that payment of the principal amount and any interest
        due with respect to such Note at the Final Insured Payment Date or other
        final Payment Date will be payable only upon  presentation and surrender
        of such  Note  and  shall  specify  the  place  where  such  Note may be
        presented and surrendered for such final payment; and

                      (iii)   the amount of any such final payment, if known.

        Section 3.06.  Protection of Trust Estate. (a) The Issuer will from time
to time execute and deliver all such  supplements and amendments  hereto and all
such  financing  statements,  continuation  statements,  instruments  of further
assurance and other  instruments,  and will take such other action  necessary or
advisable to:

                      (i) maintain or preserve  the lien and  security  interest
        (and  the  priority  thereof)  of  this  Indenture  or  carry  out  more
        effectively the purposes hereof;

                                              9

<PAGE>

               (ii)  perfect,  publish  notice of or protect the validity of any
          Grant made or to be made by this Indenture;

               (iii) cause the Trust to enforce any of the Home Loans; or

                      (iv) preserve and defend title to the Trust Estate and the
        rights of the Indenture Trustee and the Noteholders in such Trust Estate
        against the claims of all persons and parties.

        (b)  Except as  otherwise  provided  in this  Indenture,  the  Indenture
Trustee  shall not remove any portion of the Trust Estate that consists of money
or is  evidenced  by an  instrument,  certificate  or  other  writing  from  the
jurisdiction  in which it was held at the  date of the most  recent  Opinion  of
Counsel delivered pursuant to Section 3.07 (or from the jurisdiction in which it
was held as  described  in the Opinion of Counsel  delivered at the Closing Date
pursuant to Section  3.07(a),  if no Opinion of Counsel  has yet been  delivered
pursuant to Section  3.07(b))  unless the Trustee  shall have first  received an
Opinion of Counsel to the effect that the lien and security  interest created by
this  Indenture  with respect to such  property  will  continue to be maintained
after giving effect to such action or actions.  The Issuer hereby designates the
Indenture  Trustee  its agent and  attorney-in-fact  to  execute  any  financing
statement,  continuation  statement or other instrument  required to be executed
pursuant to this Section 3.06.

        Section 3.07.  Opinions as to Trust Estate. (a) On the Closing Date, the
Issuer shall furnish to the  Indenture  Trustee and the Owner Trustee an Opinion
of Counsel at the expense of the Issuer  either  stating that, in the opinion of
such  counsel,  such  action has been taken with  respect to the  recording  and
filing of this  Indenture,  any indentures  supplemental  hereto,  and any other
requisite  documents,  and with  respect  to the  execution  and  filing  of any
financing  statements and continuation  statements,  as are necessary to perfect
and make effective the lien and security interest in the Home Loans and reciting
the details of such action, or stating that, in the opinion of such counsel,  no
such action is necessary to make such lien and security interest effective.

        (b) On or before December 31st in each calendar year, beginning in 2002,
the Issuer shall furnish to the  Indenture  Trustee an Opinion of Counsel at the
expense of the Issuer either stating that, in the opinion of such counsel,  such
action has been taken with respect to the  recording,  filing,  rerecording  and
refiling of this  Indenture,  any indentures  supplemental  hereto and any other
requisite  documents  and  with  respect  to the  execution  and  filing  of any
financing statements and continuation statements as is necessary to maintain the
lien and  security  interest in the Home Loans and  reciting the details of such
action  or  stating  that in the  opinion  of such  counsel  no such  action  is
necessary to maintain such lien and security  interest.  Such Opinion of Counsel
shall also describe the  recording,  filing,  re-recording  and refiling of this
Indenture,  any indentures supplemental hereto and any other requisite documents
and the  execution  and  filing of any  financing  statements  and  continuation
statements  that will, in the opinion of such  counsel,  be required to maintain
the lien and  security  interest  in the Home  Loans  until  December  31 in the
following calendar year.

                                              10

<PAGE>

     Section 3.08.  Performance of  Obligations;  Servicing  Agreement.  (a) The
Issuer will punctually perform and observe all of its obligations and agreements
contained in this  Indenture,  the Basic  Documents and in the  instruments  and
agreements included in the Trust Estate.

        (b)  The  Issuer  may  contract  with  other  Persons  to  assist  it in
performing its duties under this  Indenture,  and any performance of such duties
by a Person identified to the Indenture  Trustee in an Officer's  Certificate of
the Issuer shall be deemed to be action taken by the Issuer.

        (c) The Issuer will not take any action or permit any action to be taken
by others which would release any Person from any of such Person's  covenants or
obligations  under any of the documents  relating to the Home Loans or under any
instrument included in the Trust Estate, or which would result in the amendment,
hypothecation,  subordination,  termination  or  discharge  of,  or  impair  the
validity or effectiveness of, any of the documents relating to the Home Loans or
any such  instrument,  except such  actions as the Master  Servicer is expressly
permitted to take in the Servicing Agreement.

        (d) The Issuer may retain an administrator  and may enter into contracts
with other Persons for the  performance of the Issuer's  obligations  hereunder,
and  performance  of such  obligations  by such  Persons  shall be  deemed to be
performance of such obligations by the Issuer.

     Section 3.09. Negative Covenants. So long as any Notes are Outstanding, the
Issuer shall not:

                      (i) except as expressly permitted by this Indenture, sell,
        transfer,  exchange or  otherwise  dispose of the Trust  Estate,  unless
        directed to do so by the Indenture Trustee;

                      (ii) claim any credit on, or make any  deduction  from the
        principal  or  interest  payable in respect  of, the Notes  (other  than
        amounts  properly  withheld from such payments under the Code) or assert
        any claim  against  any  present or former  Noteholder  by reason of the
        payment  of the  taxes  levied  or  assessed  upon any part of the Trust
        Estate;

                      (iii) (A) permit the  validity  or  effectiveness  of this
        Indenture  to be  impaired,  or permit the lien of this  Indenture to be
        amended, hypothecated, subordinated, terminated or discharged, or permit
        any Person to be released from any covenants or obligations with respect
        to the Notes under this Indenture  except as may be expressly  permitted
        hereby,  permit any lien,  charge,  excise,  claim,  security  interest,
        mortgage or other encumbrance (other than the lien of this Indenture) to
        be created on or extend to or  otherwise  arise upon or burden the Trust
        Estate or any part  thereof  or any  interest  therein  or the  proceeds
        thereof or (B) permit the lien of this  Indenture  not to  constitute  a
        valid first priority security interest in the Trust Estate; or

                      (iv) waive or impair,  or fail to assert  rights under the
        Home  Loans,  or cause to be  impaired  the Home  Loans or the  Issuer's
        interest in the Home Loans,  the Home Loan Purchase  Agreement or in any
        Basic Document, if any such action would materially and adversely affect
        the interests of the Noteholders.

                                              11

<PAGE>

        Section 3.10. Annual Statement as to Compliance. The Issuer will deliver
to the Indenture  Trustee,  within 120 days after the end of each fiscal year of
the Issuer  (commencing  with the fiscal year 2002),  an  Officer's  Certificate
stating, as to the Authorized Officer signing such Officer's Certificate, that:

                      (i) a review of the  activities  of the Issuer during such
        year and of its performance under this Indenture and the Trust Agreement
        has been made under such Authorized Officer's supervision; and

                      (ii) to the best of such Authorized  Officer's  knowledge,
        based on such review,  the Issuer has complied with all  conditions  and
        covenants under this Indenture and the provisions of the Trust Agreement
        throughout  such year, or, if there has been a default in its compliance
        with any such condition or covenant,  specifying each such default known
        to such Authorized Officer and the nature and status thereof.

        Section  3.11.  Recording of  Assignments.  The Issuer shall enforce the
obligation  of the Seller  under the Home Loan  Purchase  Agreement to submit or
cause to be submitted for recording all Assignments of Mortgages  within 60 days
of receipt of recording information by the Master Servicer.

        Section 3.12.  Representations and Warranties Concerning the Home Loans.
The  Indenture  Trustee,  as pledgee of the Home  Loans,  has the benefit of the
representations  and warranties made by the Seller in Section 3.1(a) and Section
3.1(b) of the Home Loan  Purchase  Agreement  concerning  the Home Loans and the
right to enforce the remedies against the Seller provided in such Section 3.1(a)
or  Section  3.1(b)  to the same  extent  as  though  such  representations  and
warranties were made directly to the Indenture Trustee.

        Section  3.13.  Assignee of Record of the Home Loans.  The Issuer hereby
directs and  authorizes  the Indenture  Trustee to hold record title to the Home
Loans by being  named as payee in the  endorsements  of the  Mortgage  Notes and
assignee in the  Assignments of Mortgage to be recorded under Section 2.1 of the
Home Loan  Purchase  Agreement.  Except as  expressly  provided in the Home Loan
Purchase  Agreement or in the Servicing  Agreement  with respect to any specific
Home Loan, the Indenture Trustee shall not execute any endorsement or assignment
or  otherwise  release or transfer  such  record  title to any of the Home Loans
until such time as the  remaining  Trust  Estate  may be  released  pursuant  to
Section 8.05(b).  The Indenture  Trustee's holding of such record title shall in
all  respects  be  subject  to its  fiduciary  obligations  to  the  Noteholders
hereunder.

        Section  3.14.  Master  Servicer  as Agent and  Bailee of the  Indenture
Trustee.  Solely for purposes of  perfection  under Section 9-305 of the Uniform
Commercial Code or other similar applicable law, rule or regulation of the state
in which  such  property  is held by the  Master  Servicer,  the  Issuer and the
Indenture Trustee hereby acknowledge that the Master Servicer is acting as agent
and  bailee of the  Indenture  Trustee  in  holding  amounts  on  deposit in the
Custodial  Account pursuant to Section 3.02 of the Servicing  Agreement that are
allocable  to the Home  Loans,  as well as its agent and bailee in  holding  any
Related Documents released to the Master Servicer pursuant to Section 3.06(c) of
the Servicing  Agreement,  and any other items  constituting a part of the Trust
Estate which from time to time come into the possession of the Master  Servicer.
It is intended that, by the Master

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<PAGE>

Servicer's  acceptance of such agency  pursuant to Section 3.02 of the Servicing
Agreement, the Indenture Trustee, as a pledgee of the Home Loans, will be deemed
to have possession of such Related  Documents,  such monies and such other items
for  purposes of Section  9-305 of the Uniform  Commercial  Code of the state in
which such property is held by the Master Servicer.

        Section  3.15.  Investment  Company  Act. The Issuer shall not become an
"investment  company" or "controlled by" an investment company as such terms are
defined in the  Investment  Company Act of 1940, as amended (or any successor or
amendatory  statute),  and the rules and  regulations  thereunder  (taking  into
account not only the general  definition  of the term  "investment  company" but
also any available  exceptions to such general definition);  provided,  however,
that the Issuer shall be in  compliance  with this Section 3.15 if it shall have
obtained an order  exempting it from  regulation as an  "investment  company" so
long as it is in compliance with the conditions imposed in such order.

     Section  3.16.  Issuer  May  Consolidate,  etc.  (a) The  Issuer  shall not
consolidate or merge with or into any other Person, unless:

                      (i) the  Person (if other  than the  Issuer)  formed by or
        surviving such  consolidation  or merger shall be a Person organized and
        existing  under the laws of the United States of America or any state or
        the District of Columbia  and shall  expressly  assume,  by an indenture
        supplemental hereto, executed and delivered to the Indenture Trustee, in
        form  reasonably  satisfactory  to the  Indenture  Trustee,  the due and
        punctual  payment of the  principal  of and interest on all Notes and to
        the Certificate  Paying Agent, on behalf of the  Certificateholders  and
        the  performance  or observance of every  agreement and covenant of this
        Indenture on the part of the Issuer to be performed or observed,  all as
        provided herein;

               (ii)  immediately  after giving  effect to such  transaction,  no
          Event of Default shall have occurred and be continuing;

                      (iii) the Issuer  receives  consent of the Credit Enhancer
        and the  Rating  Agencies  shall  have  notified  the  Issuer  that such
        transaction  shall not cause the rating of the Notes or the Certificates
        to be reduced,  suspended  or withdrawn  or to be  considered  by either
        Rating Agency to be below  investment  grade without taking into account
        the Credit Enhancement Instrument;

                      (iv) the Issuer shall have  received an Opinion of Counsel
        (and shall have delivered  copies  thereof to the Indenture  Trustee and
        the Credit  Enhancer) to the effect that such  transaction will not have
        any material  adverse tax  consequence to the Issuer,  any Noteholder or
        any Certificateholder;

                      (v) any action that is  necessary to maintain the lien and
        security interest created by this Indenture shall have been taken; and

                      (vi) the Issuer  shall  have  delivered  to the  Indenture
        Trustee an Officer's  Certificate and an Opinion of Counsel each stating
        that such consolidation or merger and such supplemental indenture comply
        with this Article III and that all conditions precedent

                                              13

<PAGE>

        herein provided for relating to such transaction have been complied with
        (including any filing required by the Exchange Act).

        (b) The Issuer  shall not convey or transfer  any of its  properties  or
assets, including those included in the Trust Estate, to any Person, unless:

                      (i) the Person that acquires by conveyance or transfer the
        properties  and assets of the Issuer the conveyance or transfer of which
        is hereby  restricted  shall (A) be a United States  citizen or a Person
        organized and existing under the laws of the United States of America or
        any state, (B) expressly  assume, by an indenture  supplemental  hereto,
        executed and delivered to the Indenture Trustee, in form satisfactory to
        the Indenture Trustee,  the due and punctual payment of the principal of
        and interest on all Notes and the  performance  or  observance  of every
        agreement and covenant of this Indenture on the part of the Issuer to be
        performed or observed,  all as provided  herein,  (C) expressly agree by
        means of such supplemental  indenture that all right, title and interest
        so  conveyed or  transferred  shall be subject  and  subordinate  to the
        rights of Holders of the Notes,  (D) unless  otherwise  provided in such
        supplemental  indenture,  expressly agree to indemnify,  defend and hold
        harmless  the Issuer  against  and from any loss,  liability  or expense
        arising  under  or  related  to this  Indenture  and the  Notes  and (E)
        expressly agree by means of such supplemental indenture that such Person
        (or if a group of Persons,  then one  specified  Person)  shall make all
        filings with the Commission (and any other appropriate  Person) required
        by the Exchange Act in connection with the Notes;

                      (ii) immediately  after giving effect to such transaction,
        no Default or Event of Default shall have occurred and be continuing;

                      (iii) the Issuer  receives  consent of the Credit Enhancer
        and the  Rating  Agencies  shall  have  notified  the  Issuer  that such
        transaction  shall not cause the rating of the Notes,  without regard to
        the  Credit  Enhancement  Instrument,   to  be  reduced,   suspended  or
        withdrawn;

                      (iv) the Issuer shall have  received an Opinion of Counsel
        (and shall have delivered  copies  thereof to the Indenture  Trustee) to
        the effect that such  transaction will not have any material adverse tax
        consequence to the Issuer or any Noteholder;

                      (v) any action that is  necessary to maintain the lien and
        security interest created by this Indenture shall have been taken; and

                      (vi) the Issuer  shall  have  delivered  to the  Indenture
        Trustee an Officer's  Certificate and an Opinion of Counsel each stating
        that such conveyance or transfer and such supplemental  indenture comply
        with this Article III and that all conditions  precedent herein provided
        for relating to such  transaction have been complied with (including any
        filing required by the Exchange Act).

                                              14

<PAGE>

        Section 3.17.  Successor or Transferee.  (a) Upon any  consolidation  or
merger of the Issuer in accordance with Section 3.16(a), the Person formed by or
surviving such  consolidation or merger (if other than the Issuer) shall succeed
to, and be  substituted  for,  and may  exercise  every  right and power of, the
Issuer  under this  Indenture  with the same  effect as if such  Person had been
named as the Issuer herein.

        (b) Upon a conveyance  or transfer of all the assets and  properties  of
the Issuer pursuant to Section  3.16(b),  the Issuer will be released from every
covenant and agreement of this Indenture to be observed or performed on the part
of the Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee of such conveyance or transfer.

        Section  3.18.  No Other  Business.  The Issuer  shall not engage in any
business other than financing,  purchasing,  owning and selling and managing the
Home  Loans  and the  issuance  of the  Notes  and  Certificates  in the  manner
contemplated  by this  Indenture  and the  Basic  Documents  and all  activities
incidental thereto.

     Section  3.19.  No Borrowing.  The Issuer shall not issue,  incur,  assume,
guarantee  or  otherwise  become  liable,   directly  or  indirectly,   for  any
indebtedness except for the Notes.

        Section 3.20. Guarantees, Loans, Advances and Other Liabilities.  Except
as contemplated by this Indenture or the Basic  Documents,  the Issuer shall not
make any loan or advance or credit to, or guarantee  (directly or  indirectly or
by an instrument having the effect of assuring  another's payment or performance
on any obligation or capability of so doing or otherwise),  endorse or otherwise
become  contingently  liable,  directly or  indirectly,  in connection  with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or
any other interest in, or make any capital contribution to, any other Person.

     Section  3.21.  Capital  Expenditures.   The  Issuer  shall  not  make  any
expenditure  (by long-term or operating  lease or otherwise)  for capital assets
(either realty or personalty).

        Section  3.22.  Owner  Trustee  Not Liable for  Certificates  or Related
Documents. The recitals contained herein shall be taken as the statements of the
Depositor,  and the Owner Trustee assumes no responsibility  for the correctness
thereof.  The Owner  Trustee  makes no  representations  as to the  validity  or
sufficiency  of this  Indenture,  of any Basic  Document or of the  Certificates
(other than the  signatures  of the Owner  Trustee on the  Certificates)  or the
Notes, or of any Related Documents.  The Owner Trustee shall at no time have any
responsibility  or liability with respect to the  sufficiency of the Owner Trust
Estate  or  its  ability  to  generate  the  payments  to  be   distributed   to
Certificateholders  under the Trust  Agreement  or the  Noteholders  under  this
Indenture,  including,  the  compliance  by the Depositor or the Seller with any
warranty  or  representation  made under any Basic  Document  or in any  related
document or the accuracy of any such warranty or  representation,  or any action
of the  Certificate  Paying Agent,  the  Certificate  Registrar or the Indenture
Trustee taken in the name of the Owner Trustee.

                                              15

<PAGE>

        Section 3.23.  Restricted  Payments.  The Issuer shall not,  directly or
indirectly,  (i) pay any  dividend or make any  distribution  (by  reduction  of
capital or otherwise),  whether in cash,  property,  securities or a combination
thereof,  to the Owner  Trustee  or any owner of a  beneficial  interest  in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer,  (ii) redeem,  purchase,  retire or  otherwise  acquire for
value any such  ownership  or equity  interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose;  provided,  however,  that
the Issuer may make, or cause to be made, (x) distributions to the Owner Trustee
and the  Certificateholders  as  contemplated  by, and to the  extent  funds are
available  for such purpose under the Trust  Agreement,  and (y) payments to the
Master  Servicer  pursuant to the terms of the Servicing  Agreement.  The Issuer
will not,  directly or indirectly,  make payments to or  distributions  from the
Custodial  Account  except  in  accordance  with  this  Indenture  and the Basic
Documents.

        Section  3.24.  Notice of Events of Default.  The Issuer  shall give the
Indenture  Trustee,  the Credit  Enhancer and the Rating Agencies prompt written
notice of each Event of Default hereunder and under the Trust Agreement.

        Section  3.25.  Further  Instruments  and  Acts.  Upon  request  of  the
Indenture Trustee,  the Issuer will execute and deliver such further instruments
and do such further acts as may be  reasonably  necessary or proper to carry out
more effectively the purpose of this Indenture.

        Section 3.26.  Statements  to  Noteholders.  On each Payment  Date,  the
Indenture  Trustee  and  the  Certificate  Registrar  shall  forward  by mail or
otherwise make available electronically to each Noteholder and Certificateholder
and the ISDA Counterparty,  respectively,  the statement delivered to it, on the
Business Day following the related  Determination  Date pursuant to Section 4.01
of the Servicing Agreement.

        Section 3.27. Payments under the Credit Enhancement  Instrument.  (a) On
any Payment  Date,  including  the Final  Insured  Payment  Date,  the Indenture
Trustee shall make a draw on the Credit Enhancement  Instrument in an amount, if
any, equal to the Credit  Enhancement  Draw Amount.  On any Dissolution  Payment
Date,  the  Indenture  Trustee  shall  make a draw  on  the  Credit  Enhancement
Instrument  in an  amount,  if any,  equal  to the  Dissolution  Draw,  less any
payments  made to the  Indenture  Trustee  with  respect  to that date under the
Limited Reimbursement Agreement.

        (b) To the extent (i) a valid claim is made on the Indenture  Trustee by
the ISDA  Counterparty for  reimbursement or other payment of amounts paid under
the Limited Reimbursement Agreement in error or otherwise not in accordance with
the  terms of this  Indenture,  in each  case  with the  consent  of the  Credit
Enhancer,  which consent shall not be unreasonably  withheld, or (ii) a court of
competent jurisdiction orders the repayment by the Indenture Trustee to the ISDA
Counterparty  under the  Limited  Reimbursement  Agreement  of the amount of any
payment made pursuant to Section 3.28,  the Indenture  Trustee shall make a draw
on the Credit Enhancement Instrument pursuant to the terms hereof as if the ISDA
Counterparty under the Limited Reimbursement  Agreement had not made any payment
to the Indenture Trustee.

        (c) The Indenture  Trustee shall submit,  if a Credit  Enhancement  Draw
Amount or Dissolution Draw is specified in any Servicing Certificate prepared by
the Master Servicer pursuant

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<PAGE>

to Section 4.01 of the Servicing Agreement, the Notice of Non Payment and Demand
for Payment of Insured  Amounts (in the form attached as Exhibit A to the Credit
Enhancement  Instrument) in the amount of the Credit  Enhancement Draw Amount or
Dissolution  Draw to the Credit  Enhancer no later than 2:00 P.M., New York City
time, on the second  Business Day prior to the  applicable  Payment  Date.  Upon
receipt of such Credit  Enhancement  Draw Amount in accordance with the terms of
the Credit  Enhancement  Instrument or Dissolution  Draw, the Indenture  Trustee
shall  deposit such Credit  Enhancement  Draw Amount in the Payment  Account for
distribution to Noteholders  pursuant to Section 3.05 and shall  distribute such
Dissolution Draw in accordance with Section 5.04.

        Section 3.28. Payments under the Limited  Reimbursement  Agreement.  The
Indenture   Trustee  shall  deposit  any  amounts   received  from  the  Limited
Reimbursement  Agreement  into the Payment  Account.  Any such amounts  shall be
distributed  on the  immediately  following  Payment  Date  pursuant  to Section
3.05(a).  The  Indenture  Trustee  shall make the  payments  to the  designee or
designees of the Credit  Enhancer under Section  3.05(a)(iv)(B)  pursuant to the
letter from the Credit Enhancer to the Indenture Trustee dated as of the Closing
Date.

        Section  3.29.  Determination  of Class  A-I-1 Note Rate.  On the second
LIBOR Business Day immediately preceding (i) the Closing Date in the case of the
first Interest Accrual Period and (ii) the first day of each succeeding Interest
Accrual  Period,  the Indenture  Trustee shall determine LIBOR and the Note Rate
for the Class A-I-1 Notes for such Interest  Accrual Period and shall inform the
Issuer,  the Master  Servicer,  the Credit  Enhancer and the  Depositor at their
respective  facsimile  numbers  given to the Indenture  Trustee in writing.  All
determinations  of LIBOR by the  Indenture  Trustee  shall,  in the  absence  of
manifest error, be conclusive for all purposes, and each holder of a Class A-I-1
Note,  by  accepting  this  Class  A-I-1  Note,  agrees  to  be  bound  by  such
determination.

                                              17

<PAGE>

                                   Article IV

               The Notes; Satisfaction and Discharge of Indenture

        Section 4.01. The Notes.  The Notes shall be registered in the name of a
nominee  designated by the Depository.  Beneficial Owners will hold interests in
the Notes as set forth in Section 4.06 herein in minimum  initial Note  Balances
or Notional Amounts,  as applicable,  of $25,000 and integral multiples of $1 in
excess thereof.

        The  Indenture  Trustee may for all  purposes  (including  the making of
payments  due  on  the  Notes)  deal  with  the  Depository  as  the  authorized
representative  of the  Beneficial  Owners  with  respect  to the  Notes for the
purposes  of  exercising  the rights of Holders  of Notes  hereunder.  Except as
provided in the next  succeeding  paragraph of this Section 4.01,  the rights of
Beneficial  Owners  with  respect  to  the  Notes  shall  be  limited  to  those
established  by law  and  agreements  between  such  Beneficial  Owners  and the
Depository  and  Depository  Participants.  Except as provided in Section  4.08,
Beneficial Owners shall not be entitled to definitive certificates for the Notes
as to which they are the Beneficial  Owners.  Requests and directions  from, and
votes of, the Depository as Holder of the Notes shall not be deemed inconsistent
if they are made with  respect to different  Beneficial  Owners.  The  Indenture
Trustee may establish a reasonable record date in connection with  solicitations
of consents from or voting by  Noteholders  and give notice to the Depository of
such record date.  Without the consent of the Issuer and the Indenture  Trustee,
no Note may be transferred by the  Depository  except to a successor  Depository
that agrees to hold such Note for the account of the Beneficial Owners.

        In the event the  Depository  Trust  Company  resigns  or is  removed as
Depository,  the Indenture Trustee with the approval of the Issuer may appoint a
successor  Depository.  If no successor  Depository has been appointed within 30
days of the effective  date of the  Depository's  resignation  or removal,  each
Beneficial  Owner shall be entitled to  certificates  representing  the Notes it
beneficially owns in the manner prescribed in Section 4.08.

        The Notes shall,  on original issue, be executed on behalf of the Issuer
by the  Owner  Trustee,  not in its  individual  capacity  but  solely  as Owner
Trustee,  authenticated  by the Note  Registrar  and  delivered by the Indenture
Trustee to or upon the order of the Issuer.

        Section 4.02.  Registration  of and Limitations on Transfer and Exchange
of Notes;  Appointment  of Certificate  Registrar.  The Issuer shall cause to be
kept at the Indenture Trustee's Corporate Trust Office a Note Register in which,
subject to such reasonable  regulations as it may prescribe,  the Note Registrar
shall  provide for the  registration  of Notes and of transfers and exchanges of
Notes as herein provided.

        Subject  to the  restrictions  and  limitations  set forth  below,  upon
surrender  for  registration  of  transfer  of any Note at the  Corporate  Trust
Office,  the Issuer shall execute and the Note Registrar shall  authenticate and
deliver,  in the name of the designated  transferee or transferees,  one or more
new  Notes  in  authorized  initial  Note  Balances  or  Notional  Amounts,   as
applicable, evidencing the same aggregate Percentage Interests.

                                              18

<PAGE>

        Subject to the foregoing, at the option of the Noteholders, Notes may be
exchanged for other Notes of like tenor, in authorized  initial Note Balances or
Notional  Amounts,  as  applicable,  evidencing  the same  aggregate  Percentage
Interests  upon  surrender of the Notes to be exchanged at the  Corporate  Trust
Office  of the  Note  Registrar.  Whenever  any  Notes  are so  surrendered  for
exchange, the Issuer shall execute and the Note Registrar shall authenticate and
deliver  the Notes  which the  Noteholder  making the  exchange  is  entitled to
receive.  Each Note presented or  surrendered  for  registration  of transfer or
exchange shall (if so required by the Note Registrar) be duly endorsed by, or be
accompanied by a written instrument of transfer in form reasonably  satisfactory
to the Note  Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing with such  signature  guaranteed  by a commercial  bank or
trust company located or having a correspondent located in the city of New York.
Notes  delivered  upon any such  transfer or  exchange  will  evidence  the same
obligations,  and will be  entitled to the same  rights and  privileges,  as the
Notes surrendered.

        No service charge shall be imposed for any  registration  of transfer or
exchange  of  Notes,  but the Note  Registrar  shall  require  payment  of a sum
sufficient  to cover  any tax or  governmental  charge  that may be  imposed  in
connection with any registration of transfer or exchange of Notes.

        All Notes surrendered for registration of transfer and exchange shall be
cancelled  by the Note  Registrar  and  delivered to the  Indenture  Trustee for
subsequent destruction without liability on the part of either.

        The  Issuer  hereby  appoints  the  Indenture   Trustee  as  Certificate
Registrar to keep at its Corporate Trust Office a Certificate  Register pursuant
to Section  3.09 of the Trust  Agreement  in which,  subject to such  reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges  thereof pursuant to
Section 3.05 of the Trust Agreement.  The Indenture  Trustee hereby accepts such
appointment.

        Each purchaser of a Note, by its acceptance of the Note, shall be deemed
to have  represented that either (i) it is not a Plan nor is it acquiring a Note
with Plan Assets or (2) the  acquisition  of such Note by the purchaser does not
constitute or give rise to a prohibited  transaction  under Section 406 of ERISA
or  Section  4975  of  the  Code,   for  which  no   statutory,   regulatory  or
administrative exemption is available.

        The notes may not be  purchased  with the assets of an ERISA plan if the
depositor,  the master servicer,  the owner of the  Certificates,  the indenture
trustee, the owner trustee or any of their affiliates:

     (i) has investment or  administrative  discretion with respect to the ERISA
plan's assets;

     (ii)has authority or responsibility to give, or regularly gives, investment
advice  regarding the ERISA plan's  assets,  for a fee and under an agreement or
understanding  that the  advice  will  serve as a primary  basis for  investment
decisions  regarding the ERISA plan's assets and will be based on the particular
investment needs for the ERISA plan; or

     (iiiis an employer maintaining or contributing to the ERISA plan.

                                              19

<PAGE>

        Section 4.03.  Mutilated,  Destroyed,  Lost or Stolen Notes.  If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives  evidence to its satisfaction of the destruction,  loss or theft of any
Note,  and (ii) there is delivered  to the  Indenture  Trustee such  security or
indemnity as may be required by it to hold the Issuer and the Indenture  Trustee
harmless,  then, in the absence of notice to the Issuer,  the Note  Registrar or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
and  provided  that the  requirements  of Section 8- 405 of the UCC are met, the
Issuer  shall  execute,  and  upon  its  request  the  Indenture  Trustee  shall
authenticate  and  deliver,  in exchange  for or in lieu of any such  mutilated,
destroyed,  lost or stolen Note, a replacement Note; provided,  however, that if
any such destroyed,  lost or stolen Note, but not a mutilated  Note,  shall have
become or within  seven  days  shall be due and  payable,  instead  of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or  payable  without  surrender  thereof.  If,  after the  delivery  of such
replacement Note or payment of a destroyed,  lost or stolen Note pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which  such  replacement  Note was  issued  presents  for  payment  such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any  Person  taking  such  replacement  Note  from  such  Person to whom such
replacement  Note was  delivered or any  assignee of such Person,  except a bona
fide purchaser,  and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.

        Upon the issuance of any  replacement  Note under this Section 4.03, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other  governmental  charge  that may be  imposed  in  relation
thereto and any other  reasonable  expenses  (including the fees and expenses of
the Indenture Trustee) connected therewith.

        Every   replacement  Note  issued  pursuant  to  this  Section  4.03  in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original  additional  contractual  obligation of the Issuer,  whether or not the
mutilated,  destroyed,  lost or stolen Note shall be at any time  enforceable by
anyone,  and shall be entitled to all the benefits of this Indenture equally and
proportionately  with  any  and all  other  Notes  duly  issued  hereunder.  The
provisions of this Section 4.03 are exclusive and shall  preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Notes.

        Section  4.04.  Persons  Deemed  Owners.  Prior to due  presentment  for
registration of transfer of any Note, the Issuer,  the Indenture Trustee and any
agent of the Issuer or the Indenture  Trustee may treat the Person in whose name
any Note is  registered  (as of the day of  determination)  as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever,  whether or not such Note be
overdue,  and none of the  Issuer,  the  Indenture  Trustee  or any agent of the
Issuer or the Indenture Trustee shall be affected by notice to the contrary.

        Section  4.05.   Cancellation.   All  Notes   surrendered  for  payment,
registration  of transfer,  exchange or redemption  shall, if surrendered to any
Person other than the Indenture  Trustee,  be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee.  The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously

                                              20

<PAGE>

authenticated and delivered  hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes  cancelled  as  provided in this  Section  4.05,  except as  expressly
permitted by this  Indenture.  All cancelled Notes may be held or disposed of by
the  Indenture  Trustee in  accordance  with its standard  retention or disposal
policy as in effect at the time  unless  the  Issuer  shall  direct by an Issuer
Request that they be destroyed or returned to it;  provided  however,  that such
Issuer Request is timely and the Notes have not been  previously  disposed of by
the Indenture Trustee.

        Section 4.06.  Book-Entry  Notes. Each Class of Notes shall initially be
issued as one or more Notes held by the Book-Entry Custodian or, if appointed to
hold such Notes as provided  below,  the Depository  Trust Company,  the initial
Depository,  and  registered  in the name of its  nominee  Cede & Co.  Except as
provided  below,  registration  of  such  Notes  may not be  transferred  by the
Indenture  Trustee except to another  Depository  that agrees to hold such Notes
for the respective  Beneficial Owners. The Indenture Trustee is hereby initially
appointed  as the  Book-Entry  Custodian  and  hereby  agrees  to act as such in
accordance  herewith and in accordance  with the agreement  that it has with the
Depository  authorizing it to act as such. The Book-Entry Custodian may, and, if
it is no  longer  qualified  to act as such,  the  Book-Entry  Custodian  shall,
appoint, by a written instrument delivered to the Depositor, the Master Servicer
and, if the Indenture  Trustee is not the  Book-Entry  Custodian,  the Indenture
Trustee,  any other  transfer  agent  (including the Depository or any successor
Depository)  to  act  as  Book-Entry  Custodian  under  such  conditions  as the
predecessor  Book-Entry Custodian and the Depository or any successor Depository
may prescribe,  provided that the predecessor  Book-Entry Custodian shall not be
relieved  of any  of  its  duties  or  responsibilities  by  reason  of any  new
appointment,  except  if the  Depository  is  the  successor  to the  Book-Entry
Custodian. If the Indenture Trustee resigns or is removed in accordance with the
terms hereof,  the successor  trustee or, if it so elects,  the Depository shall
immediately  succeed to its predecessor's  duties as Book-Entry  Custodian.  The
Depositor  shall have the right to inspect,  and to obtain  copies of, any Notes
held as Book-Entry Notes by the Book-Entry  Custodian.  No Beneficial Owner will
receive a Definitive Note representing such Beneficial  Owner's interest in such
Note,  except as provided in Section 4.08.  Unless and until  definitive,  fully
registered Notes (the "Definitive  Notes") have been issued to Beneficial Owners
pursuant to Section 4.08:

     (i) the provisions of this Section 4.06 shall be in full force and effect;

     (ii) the Note Registrar and the Indenture Trustee shall be entitled to deal
with the Depository for all purposes of this Indenture (including the payment of
principal  of and  interest  on the Notes  and the  giving  of  instructions  or
directions  hereunder)  as the sole  holder  of the  Notes,  and  shall  have no
obligation to the Owners of Notes;

     (iii) to the extent that the  provisions of this Section 4.06 conflict with
any other  provisions  of this  Indenture,  the  provisions of this Section 4.06
shall control;

     (iv) the rights of  Beneficial  Owners shall be exercised  only through the
Depository  and shall be  limited  to those  established  by law and  agreements
between  such  Owners  of  Notes  and  the  Depository   and/or  the  Depository
Participants.  Unless and until  Definitive Notes are issued pursuant to Section
4.08, the initial Depository will make book-entry transfers among the

                                              21

<PAGE>

Depository  Participants  and receive and transmit  payments of principal of and
interest on the Notes to such Depository Participants; and

     (v) whenever this Indenture  requires or permits  actions to be taken based
upon  instructions  or  directions  of Holders of Notes  evidencing  a specified
percentage of the aggregate Note Balance or Notional Amount,  as applicable,  of
the Notes,  the Depository  shall be deemed to represent such percentage only to
the extent that it has  received  instructions  to such  effect from  Beneficial
Owners and/or Depository Participants owning or representing, respectively, such
required  percentage of the  beneficial  interest in the Notes and has delivered
such instructions to the Indenture Trustee.

        Section  4.07.  Notices  to  Depository.  Whenever  a  notice  or  other
communication  to the Note Holders is required under this Indenture,  unless and
until Definitive  Notes shall have been issued to Beneficial  Owners pursuant to
Section  4.08,   the   Indenture   Trustee  shall  give  all  such  notices  and
communications  specified  herein  to be given to  Holders  of the  Notes to the
Depository, and shall have no obligation to the Beneficial Owners.

        Section 4.08.  Definitive Notes. If (i) the Indenture Trustee determines
that the  Depository  is no longer  willing or able to  properly  discharge  its
responsibilities  with respect to the Notes and the Indenture  Trustee is unable
to locate a qualified successor,  (ii) the Indenture Trustee elects to terminate
the book-entry system through the Depository or (iii) after the occurrence of an
Event of Default,  Owners of Notes representing beneficial interests aggregating
at least a majority  of the  aggregate  Note  Balance  or  Notional  Amount,  as
applicable,  of the Notes advise the Depository in writing that the continuation
of a book-entry system through the Depository is no longer in the best interests
of the Beneficial Owners, then the Depository shall notify all Beneficial Owners
and the  Indenture  Trustee  of the  occurrence  of any  such  event  and of the
availability of Definitive Notes to Beneficial  Owners requesting the same. Upon
surrender to the Indenture  Trustee of the typewritten  Notes  representing  the
Book-Entry Notes by the Book-Entry  Custodian or the Depository,  as applicable,
accompanied  by  registration  instructions,  the Issuer  shall  execute and the
Indenture Trustee shall authenticate the Definitive Notes in accordance with the
instructions  of the Depository.  None of the Issuer,  the Note Registrar or the
Indenture 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 Notes, the Indenture Trustee shall
recognize the Holders of the Definitive Notes as Noteholders.

        Section 4.09. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued,  with the intention  that, for federal,  state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer. The Issuer, by entering into this Indenture,  and
each Noteholder, by its acceptance of its Note (and each Beneficial Owner by its
acceptance of an interest in the applicable Book-Entry Note), agree to treat the
Notes for federal,  state and local  income,  single  business and franchise tax
purposes as indebtedness of the Issuer.

        Section 4.10.  Satisfaction  and Discharge of Indenture.  This Indenture
shall cease to be of further  effect with  respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and

                                              22

<PAGE>

3.19,  (v) the rights,  obligations  and  immunities  of the  Indenture  Trustee
hereunder  (including the rights of the Indenture Trustee under Section 6.07 and
the obligations of the Indenture Trustee under Section 4.11) and (vi) the rights
of Noteholders as beneficiaries hereof with respect to the property so deposited
with the  Indenture  Trustee  payable to all or any of them,  and the  Indenture
Trustee,  on demand of and at the expense of the Issuer,  shall  execute  proper
instruments  acknowledging  satisfaction  and discharge of this  Indenture  with
respect to the Notes, when

                      (A)    either

                  (1) the Notes  theretofore  authenticated and delivered (other
        than (i) Notes  that have been  destroyed,  lost or stolen and that have
        been  replaced or paid as  provided  in Section  4.03 and (ii) Notes for
        whose  payment  money  has  theretofore   been  deposited  in  trust  or
        segregated and held in trust by the Issuer and thereafter  repaid to the
        Issuer or discharged  from such trust, as provided in Section 3.03) have
        been delivered to the Indenture Trustee for cancellation; or

          (2) the Notes not theretofore  delivered to the Indenture  Trustee for
     cancellation

               a. have become due and payable,

               b. will become due and payable at the Final Insured  Payment Date
          within one year, or

               c. have been  declared  immediately  due and payable  pursuant to
          Section 5.02.

        and the Issuer, in the case of a. or b. above, has irrevocably deposited
        or caused to be irrevocably deposited with the Indenture Trustee cash or
        direct obligations of or obligations  guaranteed by the United States of
        America  (which will mature prior to the date such amounts are payable),
        in trust for such purpose,  in an amount sufficient to pay and discharge
        the entire  indebtedness on such Notes then  outstanding not theretofore
        delivered  to the  Indenture  Trustee for  cancellation  when due on the
        Final Insured Payment Date;

                      (B) the  Issuer  has paid or  caused  to be paid all other
                  sums payable  hereunder and under the  Insurance  Agreement by
                  the Issuer; and

                      (C) the Issuer has delivered to the Indenture  Trustee and
                  the Credit Enhancer an Officer's Certificate and an Opinion of
                  Counsel,  each meeting the applicable  requirements of Section
                  10.01 and each stating that all  conditions  precedent  herein
                  provided for  relating to the  satisfaction  and  discharge of
                  this  Indenture have been complied with and, if the Opinion of
                  Counsel  relates to a deposit made in connection  with Section
                  4.10(A)(2)b.  above,  such  opinion  shall  further  be to the
                  effect that such deposit  will not have any  material  adverse
                  tax  consequences  to  the  Issuer,  any  Noteholders  or  any
                  Certificateholders.

                                              23

<PAGE>

        Section 4.11.  Application of Trust Money. All monies deposited with the
Indenture  Trustee  pursuant to Section  4.10 hereof  shall be held in trust and
applied  by it,  in  accordance  with  the  provisions  of the  Notes  and  this
Indenture,  to the  payment,  either  directly  or through  any Paying  Agent or
Certificate Paying Agent, as the Indenture Trustee may determine, to the Holders
of  Securities,  of all sums due and to become due  thereon  for  principal  and
interest;  but such monies need not be segregated from other funds except to the
extent required herein or required by law.

        Section  4.12.  Subrogation  and  Cooperation.  (a) The  Issuer  and the
Indenture  Trustee  acknowledge that (i) to the extent the Credit Enhancer makes
payments under the Credit  Enhancement  Instrument on account of principal of or
interest on the Home Loans,  the Credit Enhancer will be fully subrogated to the
rights of the  Noteholders  to receive such principal and interest from the Home
Loans,  and (ii) the Credit  Enhancer  shall be paid such principal and interest
but only from the sources and in the manner provided herein and in the Insurance
Agreement for the payment of such principal and interest.

        The  Indenture   Trustee  shall  cooperate  in  all  respects  with  any
reasonable  request by the Credit Enhancer for action to preserve or enforce the
Credit  Enhancer's  rights or interest  under this  Indenture  or the  Insurance
Agreement, consistent with this Indenture and without limiting the rights of the
Noteholders  as  otherwise  set  forth  in  the  Indenture,  including,  without
limitation, upon the occurrence and continuance of a default under the Insurance
Agreement, a request to take any one or more of the following actions:

                      (i)  institute  Proceedings  for  the  collection  of  all
        amounts then payable on the Notes, or under this Indenture in respect to
        the Notes and all amounts  payable under the Insurance  Agreement and to
        enforce  any  judgment  obtained  and  collect  from the  Issuer  monies
        adjudged due;

                      (ii)  sell the  Trust  Estate or any  portion  thereof  or
        rights or interest  therein,  at one or more public or private Sales (as
        defined in Section  5.15  hereof)  called  and  conducted  in any manner
        permitted by law;

               (iii) file or record  all  assignments  that have not  previously
          been recorded;

               (iv) institute  Proceedings from time to time for the complete or
          partial foreclosure of this Indenture; and

                      (v)  exercise  any  remedies of a secured  party under the
        Uniform Commercial Code and take any other appropriate action to protect
        and enforce the rights and remedies of the Credit Enhancer hereunder.

                  Following  the  payment  in  full  of the  Notes,  the  Credit
Enhancer shall  continue to have all rights and privileges  provided to it under
this Section and in all other  provisions of this  Indenture,  until all amounts
owing to the Credit Enhancer have been paid in full.

                                              24

<PAGE>

        Section 4.13.  Repayment of Monies Held by Paying  Agent.  In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Person other than the  Indenture  Trustee  under the
provisions of this  Indenture  with respect to such Notes shall,  upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.05 and thereupon  such Paying Agent shall be released from all further
liability with respect to such monies.

        Section 4.14. Temporary Notes. Pending the preparation of any Definitive
Notes,  the Issuer may  execute and upon its written  direction,  the  Indenture
Trustee may authenticate  and make available for delivery,  temporary Notes that
are printed,  lithographed,  typewritten,  photocopied or otherwise produced, in
any denomination,  substantially of the tenor of the Definitive Notes in lieu of
which  they  are  issued  and  with  such  appropriate  insertions,   omissions,
substitutions  and other  variations  as the officers  executing  such Notes may
determine, as evidenced by their execution of such Notes.

        If temporary Notes are issued, the Issuer will cause Definitive Notes to
be prepared without  unreasonable delay. After the preparation of the Definitive
Notes,  the temporary  Notes shall be  exchangeable  for  Definitive  Notes upon
surrender  of the  temporary  Notes at the  office or  agency  of the  Indenture
Trustee,  without charge to the Holder.  Upon surrender for  cancellation of any
one or more temporary Notes, the Issuer shall execute and the Indenture  Trustee
shall  authenticate  and make  available  for  delivery,  in exchange  therefor,
Definitive  Notes of  authorized  denominations  and of like tenor and aggregate
principal amount. Until so exchanged, such temporary Notes shall in all respects
be entitled to the same benefits under this Indenture as Definitive Notes.

                                              25

<PAGE>

                                    Article V

                              Default and Remedies

        Section  5.01.  Events of  Default.  The  Issuer  shall  deliver  to the
Indenture  Trustee and the Credit  Enhancer,  within five days after learning of
the  occurrence  any event which with the giving of notice and the lapse of time
would become an Event of Default under clause (iii) of the  definition of "Event
of Default" written notice in the form of an Officer's Certificate of its status
and what action the Issuer is taking or proposes to take with respect thereto.

        Section 5.02. Acceleration of Maturity;  Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of Notes  representing not less than a majority
of the  aggregate  Note  Balance of all Notes (for which  purpose the Class A-IO
Notes will be deemed to have a Note Balance equal to their Notional Amount) with
the written consent of the Credit  Enhancer,  or the Credit Enhancer may declare
the Notes to be  immediately  due and  payable,  by a notice in  writing  to the
Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued and
unpaid  interest  thereon  through  the  date  of  acceleration,   shall  become
immediately due and payable, together with the Adjusted Issue Price on the Class
A-IO Notes.

        At any time after such  declaration  of  acceleration  of maturity  with
respect to an Event of Default has been made and before a judgment or decree for
payment  of the  money  due  has  been  obtained  by the  Indenture  Trustee  as
hereinafter  in this  Article V provided,  the Holders of Notes  representing  a
majority of the aggregate Note Balance of all Notes (for which purpose the Class
A-IO  Notes  will be  deemed  to have a Note  Balance  equal to  their  Notional
Amount),  by written  notice to the Issuer and the  Indenture  Trustee  with the
written consent of the Credit Enhancer,  or the Credit Enhancer,  may in writing
waive the related  Event of Default and rescind and annul such  declaration  and
its consequences if:

               (i) the Issuer has paid or deposited with the Indenture Trustee a
          sum sufficient to pay:

                      (A) all payments of principal of and interest on the Notes
                  and all other amounts that would then be due hereunder or upon
                  the  Notes  if the  Event  of  Default  giving  rise  to  such
                  acceleration had not occurred; and

                      (B) all sums paid or  advanced  by the  Indenture  Trustee
                  hereunder   and   the   reasonable   compensation,   expenses,
                  disbursements  and advances of the  Indenture  Trustee and its
                  agents and counsel; and

                      (ii) all Events of Default,  other than the  nonpayment of
        the  principal  of  the  Notes  that  has  become  due  solely  by  such
        acceleration, have been cured or waived as provided in Section 5.12.

        No such  rescission  shall affect any  subsequent  default or impair any
right consequent thereto.

                                              26

<PAGE>

               Section   5.03.   Collection  of   Indebtedness   and  Suits  for
          Enforcement by Indenture Trustee.

        (a) The  Issuer  covenants  that if  default  in the  payment of (i) any
interest on any Note when the same  becomes due and  payable,  and such  default
continues for a period of five days, or (ii) the principal of or any installment
of the  principal of any Note when the same becomes due and payable,  the Issuer
shall, upon demand of the Indenture  Trustee,  pay to it, for the benefit of the
Holders  of  Notes,  the  whole  amount  then due and  payable  on the Notes for
principal  and  interest,  with  interest  upon the  overdue  principal,  and in
addition  thereto such further  amount as shall be sufficient to cover the costs
and expenses of  collection,  including the reasonable  compensation,  expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

        (b) In case the Issuer  shall fail  forthwith  to pay such  amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust,  subject to the  provisions  of Section  10.17  hereof  may  institute  a
Proceeding for the  collection of the sums so due and unpaid,  and may prosecute
such  Proceeding to judgment or final  decree,  and may enforce the same against
the Issuer or other obligor upon the Notes and collect in the manner provided by
law out of the property of the Issuer or other obligor upon the Notes,  wherever
situated, the monies adjudged or decreed to be payable.

        (c) If an Event of  Default  occurs  and is  continuing,  the  Indenture
Trustee  subject  to the  provisions  of  Section  10.17  hereof  may,  as  more
particularly provided in Section 5.04, in its discretion, proceed to protect and
enforce  its  rights  and the  rights of the  Noteholders,  by such  appropriate
Proceedings  as the Indenture  Trustee shall deem most  effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement  in this  Indenture  or in aid of the  exercise  of any power  granted
herein, or to enforce any other proper remedy or legal or equitable right vested
in the Indenture Trustee by this Indenture or by law.

        (d) In case there shall be pending,  relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust  Estate,  Proceedings  under Title 11 of the United States Code or any
other applicable  federal or state bankruptcy,  insolvency or other similar law,
or in case a receiver,  assignee  or trustee in  bankruptcy  or  reorganization,
liquidator,  sequestrator  or similar  official shall have been appointed for or
taken  possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial  Proceedings  relative to the Issuer
or other  obligor upon the Notes,  or to the creditors or property of the Issuer
or such other  obligor,  the  Indenture  Trustee,  irrespective  of whether  the
principal of any Notes shall then be due and payable as therein  expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any  demand  pursuant  to the  provisions  of this  Section,  shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

                      (i) to file and  prove a claim  or  claims  for the  whole
        amount of  principal  and  interest  owing and  unpaid in respect of the
        Notes and to file such other  papers or documents as may be necessary or
        advisable  in  order  to  have  the  claims  of  the  Indenture  Trustee
        (including  any  claim  for  reasonable  compensation  to the  Indenture
        Trustee and each  predecessor  Indenture  Trustee,  and their respective
        agents, attorneys and counsel, and for reimbursement of all expenses and
        liabilities incurred, and all advances made, by the

                                              27

<PAGE>

        Indenture Trustee and each predecessor  Indenture  Trustee,  except as a
        result  of  negligence,  willful  misconduct  or bad  faith)  and of the
        Noteholders allowed in such Proceedings;

                      (ii) unless  prohibited by applicable law and regulations,
        to vote on behalf of the Holders of Notes in any  election of a trustee,
        a standby  trustee or Person  performing  similar  functions in any such
        Proceedings;

                      (iii) to collect and receive any monies or other  property
        payable or  deliverable on any such claims and to distribute all amounts
        received  with  respect  to the  claims  of the  Noteholders  and of the
        Indenture Trustee on their behalf; and

                      (iv) to file such  proofs  of claim  and  other  papers or
        documents  as may be  necessary or advisable in order to have the claims
        of the Indenture Trustee or the Holders of Notes allowed in any judicial
        proceedings relative to the Issuer, its creditors and its property;  and
        any trustee, receiver,  liquidator,  custodian or other similar official
        in any such Proceeding is hereby  authorized by each of such Noteholders
        to make  payments to the Indenture  Trustee,  and, in the event that the
        Indenture  Trustee shall  consent to the making of payments  directly to
        such Noteholders,  to pay to the Indenture Trustee such amounts as shall
        be sufficient to cover reasonable compensation to the Indenture Trustee,
        each  predecessor   Indenture  Trustee  and  their  respective   agents,
        attorneys and counsel, and all other expenses and liabilities  incurred,
        and all advances  made,  by the Indenture  Trustee and each  predecessor
        Indenture Trustee except as a result of negligence,  willful  misconduct
        or bad faith.

        (e) Nothing herein  contained shall be deemed to authorize the Indenture
Trustee to  authorize  or consent to or vote for or accept or adopt on behalf of
any  Noteholder  any  plan  of   reorganization,   arrangement,   adjustment  or
composition  affecting  the Notes or the  rights  of any  Holder  thereof  or to
authorize  the  Indenture  Trustee  to  vote  in  respect  of the  claim  of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

        (f) All rights of action and of asserting  claims under this  Indenture,
or under any of the Notes, may be enforced by the Indenture  Trustee without the
possession of any of the Notes or the  production  thereof in any trial or other
Proceedings relative thereto,  and any such action or proceedings  instituted by
the Indenture  Trustee shall be brought in its own name as trustee of an express
trust,  and any  recovery of judgment,  subject to the payment of the  expenses,
disbursements  and  compensation  of the  Indenture  Trustee,  each  predecessor
Indenture  Trustee and their respective  agents and attorneys,  shall be for the
ratable benefit of the Holders of the Notes.

        (g) In any  Proceedings  brought by the Indenture  Trustee (and also any
Proceedings  involving the  interpretation of any provision of this Indenture to
which the Indenture  Trustee shall be a party),  the Indenture  Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

                                              28

<PAGE>

        Section  5.04.  Remedies;  Priorities.  (a) If an Event of Default shall
have occurred and be continuing, the Indenture Trustee subject to the provisions
of Section 10.17 hereof may with the written consent of the Credit Enhancer,  or
shall at the written  direction  of the Credit  Enhancer,  do one or more of the
following (subject to Section 5.05):

                      (i) institute  Proceedings  in its own name and as trustee
        of an express  trust for the  collection  of all amounts then payable on
        the Notes or under  this  Indenture  with  respect  thereto,  whether by
        declaration  or otherwise,  and all amounts  payable under the Insurance
        Agreement,  enforce any judgment  obtained,  and collect from the Issuer
        and any other obligor upon such Notes monies adjudged due;

                      (ii)  institute  Proceedings  from  time to  time  for the
        complete or partial  foreclosure  of this  Indenture with respect to the
        Trust Estate;

                      (iii)  exercise any remedies of a secured  party under the
        UCC and take any other  appropriate  action to protect  and  enforce the
        rights and  remedies  of the  Indenture  Trustee  and the Holders of the
        Notes; and

                      (iv)  sell the  Trust  Estate or any  portion  thereof  or
        rights or  interest  therein,  at one or more  public or  private  sales
        called and conducted in any manner permitted by law; provided,  however,
        that the Indenture Trustee may not sell or otherwise liquidate the Trust
        Estate following an Event of Default,  unless (A) the Indenture  Trustee
        obtains the consent of the Holders of 100% of the aggregate Note Balance
        and  Notional  Amount,  as  applicable,  of the  Notes  and  the  Credit
        Enhancer,  which  consent  will not be  unreasonably  withheld,  (B) the
        proceeds  of such  Sale  distributable  to  Holders  are  sufficient  to
        discharge  in full all  amounts  then due and unpaid  upon the Notes for
        principal  and  interest and to  reimburse  the Credit  Enhancer for any
        amounts  drawn  under the Credit  Enhancement  Instrument  and any other
        amounts due the Credit Enhancer under the Insurance Agreement or (C) the
        Indenture  Trustee  determines  that the Home Loans will not continue to
        provide sufficient funds for the payment of principal of and interest on
        the  Notes as they  would  have  become  due if the  Notes  had not been
        declared due and payable,  and the Indenture Trustee obtains the consent
        of the Credit Enhancer, which consent will not be unreasonably withheld,
        and of the Holders of 66 2/3% of the  aggregate  Note Balance (for which
        purpose the Class A-IO Notes will be deemed to have a Note Balance equal
        to their Notional  Amount) of the Notes. In determining such sufficiency
        or  insufficiency  with  respect  to clause (B) and (C),  the  Indenture
        Trustee  may,  but need  not,  obtain  and rely  upon an  opinion  of an
        Independent investment banking or accounting firm of national reputation
        as to the  feasibility of such proposed action and as to the sufficiency
        of the Trust Estate for such purpose. Following an Event of Liquidation,
        on the related Dissolution Payment Date the Indenture Trustee shall make
        a draw on the Credit  Enhancement  Instrument  in an amount equal to the
        Dissolution  Draw, less any payments made to the Indenture  Trustee with
        respect to that date under the Limited Reimbursement Agreement, pursuant
        to Section 3.27 and shall distribute such amount as set forth in Section
        5.04(b) below.  Notwithstanding  the  foregoing,  so long as a Servicing
        Default has not  occurred,  any Sale of the Trust  Estate  shall be made
        subject  to the  continued  servicing  of the Home  Loans by the  Master
        Servicer as provided in the Servicing Agreement.

                                              29

<PAGE>

        (b) If the Indenture  Trustee collects any money or property pursuant to
this Article V, it shall pay out the money or property in the following order:

               FIRST:  to the  Indenture  Trustee for amounts due under  Section
               6.07;

               SECOND: to the Holders of the Notes for amounts due and unpaid on
               the Notes for interest,  according to the amounts due and payable
               on such Notes for interest  from  amounts  available in the Trust
               Estate for such Noteholders;

               THIRD:  on a pro rata basis,  (A) to Holders of the Notes,  other
               than the Class A- IO Notes,  for  amounts  due and  unpaid on the
               Notes for principal,  from amounts  available in the Trust Estate
               for such Noteholders, according to the amounts due and payable on
               the Notes for  principal,  until the related Note Balances of the
               Notes are reduced to zero,  and (B) to the Class A-IO Notes,  the
               Adjusted Issue Price;

               FOURTH: [reserved];

               FIFTH:  to the payment of all amounts due and owing to the Credit
               Enhancer under the Insurance Agreement;

               SIXTH:  to the  Certificate  Paying  Agent for  amounts due under
               Article VIII of the Trust Agreement; and

               SEVENTH:  to the payment of the remainder,  if any, to the Issuer
               or any other person legally entitled thereto.

        The  Indenture  Trustee may fix a record  date and payment  date for any
payment to  Noteholders  pursuant to this Section  5.04. At least 15 days before
such record date, the Indenture  Trustee shall mail to each  Noteholder a notice
that states the record date, the payment date and the amount to be paid.

        Section 5.05.  Optional  Preservation of the Trust Estate.  If the Notes
have been declared to be due and payable  under Section 5.02  following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled,  the  Indenture  Trustee may, but need not,  (but shall at the written
direction of the Credit  Enhancer) elect to take and maintain  possession of the
Trust Estate.  It is the desire of the parties hereto and the  Noteholders  that
there be at all times  sufficient  funds for the  payment  of  principal  of and
interest on the Notes and other  obligations of the Issuer including  payment to
the Credit  Enhancer,  and the  Indenture  Trustee  shall take such  desire into
account when determining  whether or not to take and maintain  possession of the
Trust  Estate.  In  determining  whether to take and maintain  possession of the
Trust Estate,  the Indenture  Trustee may, but need not, obtain and rely upon an
opinion of an  Independent  investment  banking or  accounting  firm of national
reputation  as to  the  feasibility  of  such  proposed  action  and  as to  the
sufficiency of the Trust Estate for such purpose.

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        Section 5.06.  Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding,  judicial or otherwise,  with respect to this
Indenture,  or for the  appointment  of a receiver or trustee,  or for any other
remedy hereunder, unless and subject to the provisions of Section 10.17 hereof:

               (i) such  Holder  has  previously  given  written  notice  to the
          Indenture Trustee of a continuing Event of Default;

                      (ii) the  Holders  of not less  than 25% of the  aggregate
        Note Balance  (for which  purpose the Class A-IO Notes will be deemed to
        have a Note Balance  equal to their  Notional  Amount) of the Notes have
        made  written  request  to  the  Indenture  Trustee  to  institute  such
        Proceeding  in  respect  of such  Event  of  Default  in its own name as
        Indenture Trustee hereunder;

                      (iii) such Holder or Holders have offered to the Indenture
        Trustee reasonable indemnity against the costs, expenses and liabilities
        to be incurred in complying with such request;

                      (iv) the  Indenture  Trustee for 60 days after its receipt
        of such notice,  request and offer of indemnity  has failed to institute
        such Proceedings; and

                      (v) no direction  inconsistent  with such written  request
        has been given to the Indenture Trustee during such 60-day period by the
        Holders of a majority of the  aggregate  Note  Balance of the Notes (for
        which purpose the Class A-IO Notes will be deemed to have a Note Balance
        equal to their Notional Amount) or by the Credit Enhancer.

It is  understood  and intended  that no one or more Holders of Notes shall have
any right in any manner  whatever by virtue of, or by availing of, any provision
of this  Indenture  to  affect,  disturb  or  prejudice  the rights of any other
Holders of Notes or to obtain or to seek to obtain  priority or preference  over
any other  Holders or to enforce any right under this  Indenture,  except in the
manner herein provided.

        In  the  event  the  Indenture  Trustee  shall  receive  conflicting  or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each  representing  less than a majority of the  aggregate  Note  Balance of the
Notes  (for  which  purpose  the Class  A-IO Notes will be deemed to have a Note
Balance  equal to their  Notional  Amount),  the  Indenture  Trustee in its sole
discretion  may determine what action,  if any, shall be taken,  notwithstanding
any other provisions of this Indenture.

        Section 5.07.  Unconditional  Rights of Noteholders to Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note  shall have the  right,  which is  absolute  and  unconditional,  to
receive  payment of the  principal of and  interest,  if any, on such Note on or
after  the  respective  due  dates  thereof  expressed  in such  Note or in this
Indenture and to institute  suit for the  enforcement  of any such payment,  and
such right shall not be impaired without the consent of such Holder.

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<PAGE>

        Section  5.08.  Restoration  of Rights and  Remedies.  If the  Indenture
Trustee or any  Noteholder has instituted any Proceeding to enforce any right or
remedy  under  this  Indenture  and such  Proceeding  has been  discontinued  or
abandoned  for any  reason or has been  determined  adversely  to the  Indenture
Trustee  or to such  Noteholder,  then and in every  such case the  Issuer,  the
Indenture  Trustee and the Noteholders  shall,  subject to any  determination in
such  Proceeding,  be restored  severally and  respectively to their  respective
former  positions  hereunder,  and  thereafter  all rights and  remedies  of the
Indenture  Trustee  and  the  Noteholders  shall  continue  as  though  no  such
Proceeding had been instituted.

        Section 5.09. Rights and Remedies Cumulative.  No right or remedy herein
conferred upon or reserved to the Indenture  Trustee,  the Credit Enhancer or to
the  Noteholders  is intended to be exclusive of any other right or remedy,  and
every right and remedy shall, to the extent  permitted by law, be cumulative and
in addition to every other right and remedy given  hereunder or now or hereafter
existing at law or in equity or  otherwise.  The  assertion or employment of any
right or remedy  hereunder,  or  otherwise,  shall not  prevent  the  concurrent
assertion or employment of any other appropriate right or remedy.

        Section  5.10.  Delay or Omission Not a Waiver.  No delay or omission of
the Indenture Trustee, the Credit Enhancer or any Holder of any Note to exercise
any right or remedy  accruing  upon any Event of Default  shall  impair any such
right or  remedy  or  constitute  a waiver of any such  Event of  Default  or an
acquiescence  therein.  Every right and remedy given by this Article V or by law
to the Indenture  Trustee or to the  Noteholders  may be exercised  from time to
time, and as often as may be deemed  expedient,  by the Indenture  Trustee or by
the Noteholders, as the case may be.

        Section 5.11.  Control by Noteholders.  The Holders of a majority of the
aggregate  Note Balance of Notes (for which purpose the Class A-IO Notes will be
deemed to have a Note Balance equal to their  Notional  Amount) with the consent
of the Credit  Enhancer,  or the Credit  Enhancer (so long as no Credit Enhancer
Default  exists)  shall have the right to direct  the time,  method and place of
conducting any Proceeding for any remedy available to the Indenture Trustee with
respect to the Notes or exercising any trust or power conferred on the Indenture
Trustee; provided that:

               (i) such direction  shall not be in conflict with any rule of law
          or with this Indenture;

                      (ii)  subject to the express  terms of Section  5.04,  any
        direction to the Indenture Trustee to sell or liquidate the Trust Estate
        shall be by  Holders  of Notes  representing  not less  than 100% of the
        aggregate Note Balance of Notes, (for which purpose the Class A-IO Notes
        will be deemed to have a Note Balance  equal to their  Notional  Amount)
        with the consent of the Credit Enhancer, or the Credit Enhancer (so long
        as no Credit Enhancer Default exists);

                      (iii) if the  conditions  set forth in  Section  5.05 have
        been  satisfied  and the  Indenture  Trustee  elects to retain the Trust
        Estate  pursuant to such  Section,  then any  direction to the Indenture
        Trustee by Holders of Notes representing less than 100% of the aggregate
        Note Balance of Notes,  (for which  purpose the Class A-IO Notes will be
        deemed to have a

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<PAGE>

        Note Balance  equal to their  Notional  Amount) to sell or liquidate the
        Trust Estate shall be of no force and effect; and

                      (iv) the  Indenture  Trustee  may take  any  other  action
        deemed proper by the  Indenture  Trustee that is not  inconsistent  with
        such direction.

Notwithstanding the rights of Noteholders set forth in this Section,  subject to
Section 6.01, the Indenture  Trustee need not take any action that it determines
might involve it in liability or might materially adversely affect the rights of
any Noteholders not consenting to such action.

        Section 5.12.  Waiver of Past Defaults.  Prior to the declaration of the
acceleration  of the  maturity  of the Notes as provided  in Section  5.02,  the
Holders of Notes of not less than a majority of the  aggregate  Note  Balance of
the Notes (for which  purpose the Class A-IO Notes will be deemed to have a Note
Balance equal to their Notional Amount) with the consent of the Credit Enhancer,
or the Credit Enhancer (so long as no Credit Enhancer  Default exists) may waive
any past Event of Default  and its  consequences  except an Event of Default (a)
with  respect to payment of  principal of or interest on any of the Notes or (b)
in respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Note.  In the case of any such waiver,
the Issuer, the Indenture Trustee and the Holders of the Notes shall be restored
to their former positions and rights hereunder, respectively; but no such waiver
shall  extend to any  subsequent  or other  Event of Default or impair any right
consequent thereto.

        Upon any such waiver,  any Event of Default  arising  therefrom shall be
deemed to have been cured and not to have  occurred,  for every  purpose of this
Indenture;  but no such waiver shall extend to any  subsequent or other Event of
Default or impair any right consequent thereto.

        Section  5.13.  Undertaking  for Costs.  All  parties to this  Indenture
agree, and each Holder of any Note by such Holder's  acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture,  or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture  Trustee,  the  filing  by any  party  litigant  in  such  suit  of an
undertaking  to pay the  costs of such  suit,  and that  such  court  may in its
discretion  assess  reasonable  costs,  including  reasonable  attorneys'  fees,
against  any party  litigant  in such suit,  having due regard to the merits and
good  faith of the  claims or  defenses  made by such  party  litigant;  but the
provisions  of this Section 5.13 shall not apply to (a) any suit  instituted  by
the Indenture  Trustee,  (b) any suit instituted by any Noteholder,  or group of
Noteholders,  in  each  case  holding  in the  aggregate  more  than  10% of the
aggregate Note Balance (for which purpose the Class A-IO Notes will be deemed to
have a Note Balance equal to their Notional Amount) of the Notes or (c) any suit
instituted by any Noteholder for the  enforcement of the payment of principal of
or interest on any Note on or after the respective  due dates  expressed in such
Note and in this Indenture.

        Section 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension  law  wherever  enacted,  now or at any time  hereafter in
force,  that may affect the covenants or the performance of this Indenture;  and
the Issuer (to the extent that it may  lawfully do so) hereby  expressly  waives
all benefit or advantage of

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<PAGE>

any such law,  and  covenants  that it shall  not  hinder,  delay or impede  the
execution of any power herein granted to the Indenture Trustee,  but will suffer
and  permit  the  execution  of every  such power as though no such law had been
enacted.

        Section 5.15.  Sale of Trust  Estate.  (a) The power to effect any sale,
liquidation  or other  disposition (a "Sale") of any portion of the Trust Estate
pursuant to Section 5.04 is expressly  subject to the provisions of Section 5.05
and this Section 5.15.  The power to effect any such Sale shall not be exhausted
by any one or more Sales as to any portion of the Trust Estate remaining unsold,
but shall continue unimpaired until the entire Trust Estate shall have been sold
or all  amounts  payable  on the Notes and under  this  Indenture  and under the
Insurance Agreement shall have been paid. The Indenture Trustee may from time to
time postpone any public Sale by public  announcement made at the time and place
of such Sale.  The Indenture  Trustee hereby  expressly  waives its right to any
amount fixed by law as compensation for any Sale.

     (b) The  Indenture  Trustee  shall not in any  private  Sale sell the Trust
Estate, or any portion thereof, unless:

     (1) the Holders of all Notes and the Credit Enhancer  consent to, or direct
the Indenture Trustee to make, such Sale, or

                  (2) the  proceeds  of such  Sale  would be not  less  than the
entire  amount which would be payable to the  Noteholders  under the Notes,  the
Certificateholders  under the Certificates and the Credit Enhancer in respect of
amounts drawn under the Credit Enhancement  Instrument and any other amounts due
the Credit  Enhancer under the Insurance  Agreement,  in full payment thereof in
accordance  with Section 5.02, on the Payment Date next  succeeding  the date of
such Sale, or

                  (3) the Indenture Trustee determines,  in its sole discretion,
that the  conditions for retention of the Trust Estate set forth in Section 5.05
cannot be satisfied (in making any such determination, the Indenture Trustee may
rely upon an opinion of an  Independent  investment  banking  firm  obtained and
delivered as provided in Section 5.05), and the Credit Enhancer consents to such
Sale,  which  consent  will  not  be  unreasonably   withheld  and  the  Holders
representing  at least 66-2/3% of the aggregate  Note Balance (for which purpose
the  Class  A-IO  Notes  will be deemed  to have a Note  Balance  equal to their
Notional Amount) of the Notes consent to such Sale.

The purchase by the Indenture  Trustee of all or any portion of the Trust Estate
at a private  Sale shall not be deemed a Sale or other  disposition  thereof for
purposes of this Section 5.15(b).

        (c) Unless the Holders and the Credit Enhancer have otherwise  consented
or directed the Indenture  Trustee,  at any public Sale of all or any portion of
the Trust  Estate at which a minimum  bid equal to or  greater  than the  amount
described in paragraph (2) of  subsection  (b) of this Section 5.15 has not been
established  by the  Indenture  Trustee and no Person bids an amount equal to or
greater than such amount,  the  Indenture  Trustee  shall bid an amount at least
$1.00 more than the highest other bid.

     (d) In connection with a Sale of all or any portion of the Trust Estate:

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<PAGE>

                  (1) any  Holder or  Holders  of Notes may bid for and with the
consent of the Credit Enhancer  purchase the property offered for sale, and upon
compliance  with the terms of sale may hold,  retain and  possess and dispose of
such property,  without further accountability,  and may, in paying the purchase
money therefor, deliver any Notes or claims for interest thereon in lieu of cash
up to the amount  which  shall,  upon  distribution  of the net proceeds of such
sale, be payable thereon, and such Notes, in case the amounts so payable thereon
shall be less than the amount due  thereon,  shall be  returned  to the  Holders
thereof after being appropriately stamped to show such partial payment;

                  (2) the Indenture Trustee may bid for and acquire the property
offered  for Sale in  connection  with any Sale  thereof,  and,  subject  to any
requirements  of, and to the extent  permitted by,  applicable law in connection
therewith,  may  purchase  all or any  portion of the Trust  Estate in a private
sale, and, in lieu of paying cash therefor, may make settlement for the purchase
price by crediting  the gross Sale price against the sum of (A) the amount which
would be  distributable  to the Holders of the Notes and Holders of Certificates
and amounts owing to the Credit  Enhancer as a result of such Sale in accordance
with Section  5.04(b) on the Payment Date next  succeeding the date of such Sale
and (B) the expenses of the Sale and of any Proceedings in connection  therewith
which are  reimbursable  to it,  without being  required to produce the Notes in
order to  complete  any  such  Sale or in  order  for the net  Sale  price to be
credited  against  such Notes,  and any  property  so acquired by the  Indenture
Trustee shall be held and dealt with by it in accordance  with the provisions of
this Indenture;

                  (3)  the  Indenture  Trustee  shall  execute  and  deliver  an
appropriate instrument of conveyance transferring its interest in any portion of
the Trust Estate in connection with a Sale thereof;

                  (4) the Indenture Trustee is hereby irrevocably  appointed the
agent and attorney-in- fact of the Issuer to transfer and convey its interest in
any portion of the Trust Estate in connection  with a Sale thereof,  and to take
all action necessary to effect such Sale; and

                  (5) no purchaser or  transferee  at such a Sale shall be bound
to ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any monies.

        Section 5.16. Action on Notes. The Indenture Trustee's right to seek and
recover  judgment on the Notes or under this Indenture  shall not be affected by
the seeking,  obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture  Trustee  against the Issuer or by the levy of any
execution  under such  judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer.  Any money or property  collected by the  Indenture
Trustee shall be applied in accordance with Section 5.04(b).

        Section 5.17.  Performance and Enforcement of Certain  Obligations.  (a)
Promptly  following a written  request from the Credit Enhancer or the Indenture
Trustee with the written consent of the Credit Enhancer to do so, the Issuer, in
its capacity as holder of the Home Loans, shall, with the written consent of the
Credit Enhancer, take all such lawful action as the Indenture

                                              35

<PAGE>

Trustee may request to cause the Issuer to compel or secure the  performance and
observance  by the Seller and the Master  Servicer,  as  applicable,  of each of
their  obligations  to the  Issuer  under or in  connection  with the Home  Loan
Purchase  Agreement  and the  Servicing  Agreement,  and to exercise any and all
rights,  remedies,  powers and privileges lawfully available to the Issuer under
or in  connection  with the  Home  Loan  Purchase  Agreement  and the  Servicing
Agreement to the extent and in the manner directed by the Indenture Trustee,  as
pledgee of the Home Loans,  including the  transmission of notices of default on
the part of the Seller or the Master Servicer  thereunder and the institution of
legal or administrative  actions or proceedings to compel or secure  performance
by the Seller or the Master Servicer of each of their obligations under the Home
Loan Purchase Agreement and the Servicing Agreement.

        (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee,  as  pledgee  of the Home  Loans,  subject  to the rights of the Credit
Enhancer  under  the  Servicing  Agreement  may,  and  at the  direction  (which
direction  shall be in writing or by telephone  (confirmed  in writing  promptly
thereafter))  of the Holders of 66-2/3% of the aggregate Note Balance (for which
purpose  the Class  A-IO Notes  will be deemed to have a Note  Balance  equal to
their  Notional  Amount) of the Notes  shall,  exercise  all  rights,  remedies,
powers,  privileges  and claims of the Issuer  against  the Seller or the Master
Servicer  under or in connection  with the Home Loan Purchase  Agreement and the
Servicing  Agreement,  including the right or power to take any action to compel
or secure performance or observance by the Seller or the Master Servicer, as the
case may be, of each of their  obligations to the Issuer  thereunder and to give
any consent, request, notice, direction, approval, extension or waiver under the
Home Loan Purchase  Agreement and the Servicing  Agreement,  as the case may be,
and any right of the  Issuer  to take such  action  shall not be  suspended.  In
connection  therewith,  as determined by the Indenture Trustee, the Issuer shall
take all  actions  necessary  to effect  the  transfer  of the Home Loans to the
Indenture Trustee.

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<PAGE>

                                   Article VI

                              The Indenture Trustee

        Section 6.01.  Duties of Indenture  Trustee.  (a) If an Event of Default
has occurred and is continuing,  the Indenture Trustee shall exercise the rights
and powers  vested in it by this  Indenture  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)       Except during the continuance of an Event of Default:

                      (i) the  Indenture  Trustee  undertakes  to  perform  such
        duties  and only  such  duties  as are  specifically  set  forth in this
        Indenture  and no implied  covenants or  obligations  shall be read into
        this Indenture against the Indenture Trustee; and

                      (ii)  in  the  absence  of bad  faith  on  its  part,  the
        Indenture  Trustee  may  conclusively  rely,  as to  the  truth  of  the
        statements and the correctness of the opinions expressed  therein,  upon
        certificates  or  opinions   furnished  to  the  Indenture  Trustee  and
        conforming to the requirements of this Indenture; however, the Indenture
        Trustee shall examine the certificates and opinions to determine whether
        or not they conform to the requirements of this Indenture.

        (c) The Indenture Trustee may not be relieved from liability for its own
negligent  action,  its  own  negligent  failure  to  act  or  its  own  willful
misconduct, except that:

               (i) this  paragraph does not limit the effect of paragraph (b) of
          this Section 6.01;

                      (ii) the  Indenture  Trustee  shall not be liable  for any
        error of judgment made in good faith by a Responsible  Officer unless it
        is proved that the Indenture  Trustee was negligent in ascertaining  the
        pertinent facts; and

                      (iii) the  Indenture  Trustee  shall  not be  liable  with
        respect  to any  action  it  takes  or  omits  to take in good  faith in
        accordance with a direction  received by it (A) pursuant to Section 5.11
        or (B) from the Credit Enhancer,  which it is entitled to give under any
        of the Basic Documents.

        (d) The Indenture  Trustee shall not be liable for interest on any money
received by it except as the  Indenture  Trustee  may agree in writing  with the
Issuer.

        (e) Money held in trust by the Indenture  Trustee need not be segregated
from  other  funds  except to the  extent  required  by law or the terms of this
Indenture or the Trust Agreement.

        (f) No provision of this Indenture  shall require the Indenture  Trustee
to expend or risk its own funds or otherwise  incur  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 to

                                              37

<PAGE>

believe that repayment of such funds or adequate  indemnity against such risk or
liability is not reasonably assured to it.

        (g)  Every  provision  of this  Indenture  relating  to the  conduct  or
affecting  the liability of or affording  protection  to the  Indenture  Trustee
shall be subject to the  provisions of this Section and to the provisions of the
TIA.

     Section 6.02.  Rights of Indenture  Trustee.  (a) The Indenture Trustee may
rely on any  document  believed  by it to be genuine  and to have been signed or
presented by the proper person.  The Indenture  Trustee need not investigate any
fact or matter stated in the document.

        (b) Before the Indenture  Trustee acts or refrains  from acting,  it may
require an Officer's Certificate or an Opinion of Counsel. The Indenture Trustee
shall not be liable  for any  action it takes or omits to take in good  faith in
reliance on an Officer's Certificate or Opinion of Counsel.

        (c) The  Indenture  Trustee  may  execute  any of the  trusts  or powers
hereunder  or perform  any duties  hereunder  either  directly  or by or through
agents or attorneys or a custodian or nominee,  and the Indenture  Trustee shall
not be  responsible  for any misconduct or negligence on the part of, or for the
supervision of, any such agent,  attorney,  custodian or nominee  appointed with
due care by it hereunder.

        (d) The Indenture Trustee shall not be liable for any action it takes or
omits to take in good faith  which it believes  to be  authorized  or within its
rights or powers;  provided,  however, that the Indenture Trustee's conduct does
not constitute willful misconduct, negligence or bad faith.

        (e) The Indenture  Trustee may consult with  counsel,  and the advice or
opinion of counsel with respect to legal matters  relating to this Indenture and
the Notes shall be full and complete authorization and protection from liability
in respect to any action  taken,  omitted or  suffered by it  hereunder  in good
faith and in accordance with the advice or opinion of such counsel.

        Section  6.03.  Individual  Rights of Indenture  Trustee.  The Indenture
Trustee in its  individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates  with the same
rights  it would  have if it were not  Indenture  Trustee.  Any Note  Registrar,
co-registrar or co-paying agent may do the same with like rights.  However,  the
Indenture Trustee must comply with Sections 6.11 and 6.12.

        Section 6.04.  Indenture  Trustee's  Disclaimer.  The Indenture  Trustee
shall not be (i) responsible for and makes no  representation as to the validity
or adequacy of this Indenture or the Notes,  (ii)  accountable  for the Issuer's
use of the proceeds from the Notes or (iii) responsible for any statement of the
Issuer in the Indenture or in any document issued in connection with the sale of
the Notes or in the Notes  other than the  Indenture  Trustee's  certificate  of
authentication.

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<PAGE>

        Section 6.05. Notice of Event of Default.  If an Event of Default occurs
and is continuing  and if it is known to a Responsible  Officer of the Indenture
Trustee, the Indenture Trustee shall give notice thereof to the Credit Enhancer.
The  Indenture  Trustee  shall  mail to each  Noteholder  notice of the Event of
Default  within  90 days  after  it  occurs.  Except  in the case of an Event of
Default  in payment of  principal  of or  interest  on any Note,  the  Indenture
Trustee may withhold the notice if and so long as a committee of its Responsible
Officers  in  good  faith  determines  that  withholding  the  notice  is in the
interests of Noteholders.

        Section  6.06.  Reports by Indenture  Trustee to Holders.  The Indenture
Trustee shall deliver to each Noteholder such  information as may be required to
enable  such holder to prepare its  federal  and state  income tax  returns.  In
addition,  upon the  Issuer's  written  request,  the  Indenture  Trustee  shall
promptly  furnish  information  reasonably  requested  by  the  Issuer  that  is
reasonably  available to the  Indenture  Trustee to enable the Issuer to perform
its federal and state income tax reporting obligations.

        Section 6.07.  Compensation  and Indemnity.  The Issuer shall pay to the
Indenture Trustee on each Payment Date reasonable compensation for its services.
The  Indenture  Trustee  shall be  compensated  and  indemnified  by the  Master
Servicer in  accordance  with Section 6.06 of the Servicing  Agreement,  and all
amounts owing to the Indenture  Trustee hereunder in excess of such amount shall
be paid solely as provided in Section 3.05 hereof (subject to the priorities set
forth therein). The Indenture Trustee's compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Issuer shall reimburse
the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made
by it,  including costs of collection,  in addition to the  compensation for its
services.  Such expenses shall include the reasonable compensation and expenses,
disbursements  and  advances  of  the  Indenture   Trustee's  agents,   counsel,
accountants  and  experts.  The Issuer shall  indemnify  the  Indenture  Trustee
against  any and all loss,  liability  or expense  (including  attorneys'  fees)
incurred  by it in  connection  with the  administration  of this  trust and the
performance  of its duties  hereunder.  The  Indenture  Trustee shall notify the
Issuer  promptly  of any claim for which it may seek  indemnity.  Failure by the
Indenture  Trustee to so notify the Issuer  shall not  relieve the Issuer of its
obligations hereunder. The Issuer shall defend any such claim, and the Indenture
Trustee may have separate counsel and the Issuer shall pay the fees and expenses
of such  counsel.  The  Issuer is not  obligated  to  reimburse  any  expense or
indemnify  against any loss,  liability  or expense  incurred  by the  Indenture
Trustee through the Indenture  Trustee's own willful  misconduct,  negligence or
bad faith. The Issuer's payment obligations to the Indenture Trustee pursuant to
this  Section  6.07 shall  survive the  discharge  of this  Indenture.  When the
Indenture  Trustee  incurs  expenses after the occurrence of an Event of Default
specified  in clause (iv) or (v) of the  definition  thereof with respect to the
Issuer, the expenses are intended to constitute expenses of administration under
Title 11 of the  United  States  Code or any other  applicable  federal or state
bankruptcy, insolvency or similar law.

        Section  6.08.  Replacement  of Indenture  Trustee.  No  resignation  or
removal of the Indenture  Trustee and no  appointment  of a successor  Indenture
Trustee  shall become  effective  until the  acceptance  of  appointment  by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may resign at any time by so notifying the Issuer and the Credit  Enhancer.  The
Holders  of a majority  of the  aggregate  Note  Balance of the Notes (for which
purpose  the Class  A-IO Notes  will be deemed to have a Note  Balance  equal to
their Notional Amount) or the Credit

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<PAGE>

Enhancer may remove the Indenture  Trustee by so notifying the Indenture Trustee
and the Credit  Enhancer  and may appoint a  successor  Indenture  Trustee.  The
Issuer shall remove the Indenture Trustee if:

     (i) the Indenture Trustee fails to comply with Section 6.11;

     (ii) the Indenture Trustee is adjudged a bankrupt or insolvent;

     (iii) a receiver or other  public  officer  takes  charge of the  Indenture
Trustee or its property; or

     (iv) the Indenture Trustee otherwise becomes incapable of acting.

If the  Indenture  Trustee  resigns or is removed or if a vacancy  exists in the
office of the Indenture  Trustee for any reason (the  Indenture  Trustee in such
event being referred to herein as the retiring  Indenture  Trustee),  the Issuer
shall  promptly  appoint a successor  Indenture  Trustee with the consent of the
Credit  Enhancer which consent will not be unreasonably  withheld.  In addition,
the  Indenture  Trustee  will  resign  to avoid  being  directly  or  indirectly
controlled by the Issuer.

        A successor  Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer.  Thereupon, the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the rights, powers and duties
of the Indenture Trustee under this Indenture.  The successor  Indenture Trustee
shall mail a notice of its  succession to  Noteholders.  The retiring  Indenture
Trustee shall promptly  transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

        If a successor  Indenture  Trustee  does not take office  within 60 days
after the  retiring  Indenture  Trustee  resigns  or is  removed,  the  retiring
Indenture Trustee, the Issuer or the Holders of a majority of the aggregate Note
Balance of the Notes (for which  purpose  the Class A-IO Notes will be deemed to
have a Note Balance  equal to their  Notional  Amount) may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee.

        If the  Indenture  Trustee  fails  to  comply  with  Section  6.11,  any
Noteholder may petition any court of competent  jurisdiction  for the removal of
the Indenture Trustee and the appointment of a successor Indenture Trustee.

        Notwithstanding  the  replacement of the Indenture  Trustee  pursuant to
this Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.

     Section  6.09.  Successor  Indenture  Trustee by Merger.  If the  Indenture
Trustee  consolidates  with,  merges  or  converts  into,  or  transfers  all or
substantially all its corporate trust business or assets to, another corporation
or banking  association,  the  resulting,  surviving or  transferee  corporation
without any further act shall be the successor Indenture Trustee; provided, that
such  corporation  or  banking  association  shall be  otherwise  qualified  and
eligible under Section 6.11. The Indenture

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<PAGE>

Trustee shall provide the Rating Agencies written notice of any such transaction
after the Closing Date.

        In case at the time such  successor or successors by merger,  conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such  successor  to the  Indenture  Trustee  may  adopt the  certificate  of
authentication   of  any  predecessor   trustee,   and  deliver  such  Notes  so
authenticated;  and in case at that  time any of the  Notes  shall not have been
authenticated,  any successor to the  Indenture  Trustee may  authenticate  such
Notes  either  in the name of any  predecessor  hereunder  or in the name of the
successor  to the  Indenture  Trustee;  and in all such cases such  certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

        Section 6.10.  Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.  (a)  Notwithstanding  any other  provisions of this Indenture,  at any
time, for the purpose of meeting any legal  requirement of any  jurisdiction  in
which any part of the Trust  Estate may at the time be  located,  the  Indenture
Trustee  shall have the power and may execute and  deliver  all  instruments  to
appoint one or more Persons to act as a co-trustee or  co-trustees,  or separate
trustee or separate trustees, of all or any part of the Owner Trust, and to vest
in such  Person  or  Persons,  in such  capacity  and  for  the  benefit  of the
Noteholders,  such title to the Trust Estate, or any part thereof,  and, subject
to the other  provisions  of this  Section,  such powers,  duties,  obligations,
rights and trusts as the Indenture Trustee may consider  necessary or desirable.
No co-trustee or separate trustee  hereunder shall be required to meet the terms
of  eligibility  as a  successor  trustee  under  Section  6.11 and no notice to
Noteholders of the  appointment  of any co-trustee or separate  trustee shall be
required under Section 6.08 hereof.

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

                      (i) all rights,  powers,  duties and obligations conferred
        or imposed upon the Indenture Trustee shall be conferred or imposed upon
        and  exercised or performed by the  Indenture  Trustee and such separate
        trustee or co-trustee  jointly (it being  understood  that such separate
        trustee or co-trustee is not  authorized to act  separately  without the
        Indenture  Trustee joining in such act), except to the extent that under
        any law of any  jurisdiction  in which any particular act or acts are to
        be performed the Indenture  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 Estate or
        any portion  thereof in any such  jurisdiction)  shall be exercised  and
        performed singly by such separate  trustee or co-trustee,  but solely at
        the direction of the Indenture Trustee;

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

          (iii) the Indenture  Trustee may at any time accept the resignation of
     or remove any separate trustee or co-trustee.

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<PAGE>

        (c) Any notice,  request or other writing given to the Indenture 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 or co-trustee 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
Indenture Trustee or separately,  as may be provided therein, subject to all the
provisions of this  Indenture,  specifically  including  every provision of this
Indenture  relating to the conduct of,  affecting the liability of, or affording
protection to, the Indenture Trustee.  Every such instrument shall be filed with
the Indenture Trustee.

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

        Section 6.11. Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a).  The Indenture  Trustee
shall have a combined  capital and surplus of at least  $50,000,000 as set forth
in its most recent  published  annual  report of condition  and it or its parent
shall have a  long-term  debt rating of A or better by  Moody's.  The  Indenture
Trustee  shall comply with TIA ss.  310(b),  including  the  optional  provision
permitted by the second sentence of TIA ss. 310(b)(9);  provided,  however, that
there shall be excluded from the operation of TIA ss. 310(b)(1) any indenture or
indentures  under which other  securities of the Issuer are  outstanding  if the
requirements for such exclusion set forth in TIA ss. 310(b)(1) are met.

        Section 6.12.  Preferential  Collection of Claims  Against  Issuer.  The
Indenture  Trustee  shall  comply with TIA ss.  311(a),  excluding  any creditor
relationship  listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

     Section 6.13.  Representations and Warranties. The Indenture Trustee hereby
represents that:

                      (i)  The  Indenture  Trustee  is duly  organized,  validly
        existing  and in good  standing  under the laws of the State of New York
        with  power and  authority  to own its  properties  and to  conduct  its
        business as such  properties  are  currently  owned and such business is
        presently conducted.

                      (ii) The Indenture  Trustee has the power and authority to
        execute and deliver this  Indenture and to carry out its terms;  and the
        execution,  delivery and  performance  of this  Indenture have been duly
        authorized by the Indenture Trustee by all necessary corporate action.

                      (iii) The consummation of the transactions contemplated by
        this  Indenture and the  fulfillment of the terms hereof do not conflict
        with,  result in any  breach of any of the terms and  provisions  of, or
        constitute (with or without notice or lapse of time) a default

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<PAGE>

        under,  the articles of organization or bylaws of the Indenture  Trustee
        or any agreement or other instrument to which the Indenture Trustee is a
        party or by which it is bound.

                      (iv) To the Indenture Trustee's best knowledge,  there are
        no proceedings or investigations pending or threatened before any court,
        regulatory   body,   administrative   agency   or   other   governmental
        instrumentality  having  jurisdiction  over the Indenture Trustee or its
        properties:  (A) asserting the  invalidity of this Indenture (B) seeking
        to prevent the consummation of any of the  transactions  contemplated by
        this  Indenture  or (C) seeking any  determination  or ruling that might
        materially and adversely affect the performance by the Indenture Trustee
        of its  obligations  under, or the validity or  enforceability  of, this
        Indenture.

                      (v) The  Indenture  Trustee  does not have  notice  of any
        adverse  claim (as such terms are used in Delaware  UCC  Section  8-302)
        with respect to the Home Loans.

     Section 6.14.  Directions to Indenture  Trustee.  The Indenture  Trustee is
hereby directed:

     (a) to accept the pledge of the Home Loans and hold the assets of the Trust
in trust for the Noteholders and the Credit Enhancer;

     (b) to  authenticate  and  deliver  the  Notes  substantially  in the  form
prescribed  by  Exhibit  A-1  and  A-2 in  accordance  with  the  terms  of this
Indenture; and

     (c) to take all other actions as shall be required to be taken by the terms
of this Indenture.

        Section  6.15.  Indenture  Trustee  May Own  Securities.  The  Indenture
Trustee, in its individual or any other capacity may become the owner or pledgee
of  Securities  with the same  rights  it  would  have if it were not  Indenture
Trustee.

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<PAGE>

                                   Article VII

                         Noteholders' Lists and Reports

        Section 7.01. Issuer to Furnish Indenture Trustee Names and Addresses of
Noteholders.  The Issuer will furnish or cause to be furnished to the  Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably  require,  of the names and addresses of
the Holders of Notes as of such Record Date and,  (b) at such other times as the
Indenture Trustee and the Credit Enhancer may request in writing, within 30 days
after  receipt by the  Issuer of any such  request,  a list of similar  form and
content  as of a date not more  than 10 days  prior  to the  time  such  list is
furnished;  provided, however, that so long as the Indenture Trustee is the Note
Registrar, no such list shall be required to be furnished.

        Section   7.02.   Preservation   of   Information;   Communications   to
Noteholders.  (a) The Indenture Trustee shall preserve,  in as current a form as
is  reasonably  practicable,  the names and  addresses  of the  Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes  received by the
Indenture  Trustee in its capacity as Note Registrar.  The Indenture Trustee may
destroy any list  furnished  to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

        (b) Noteholders  may  communicate  pursuant to TIA ss. 312(b) with other
Noteholders  with  respect to their  rights  under this  Indenture  or under the
Notes.

     (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the
protection of TIAss.312(c).

        Section 7.03. Reports by Issuer.   (a)  The Issuer shall:

                      (i) file with the Indenture Trustee,  within 15 days after
        the Issuer is required to file the same with the  Commission,  copies of
        the annual reports and the information,  documents and other reports (or
        copies of such  portions of any of the foregoing as the  Commission  may
        from time to time by rules and  regulations  prescribe)  that the Issuer
        may be  required to file with the  Commission  pursuant to Section 13 or
        15(d) of the Exchange Act;

                      (ii) file with the Indenture  Trustee,  and the Commission
        in accordance with rules and regulations prescribed from time to time by
        the Commission such additional  information,  documents and reports with
        respect to compliance by the Issuer with the conditions and covenants of
        this  Indenture  as may be required  from time to time by such rules and
        regulations; and

                      (iii) supply to the  Indenture  Trustee (and the Indenture
        Trustee shall transmit by mail to all  Noteholders  described in TIA ss.
        313(c))  such  summaries  of  any  information,  documents  and  reports
        required  to be filed by the Issuer  pursuant to clauses (i) and (ii) of
        this Section 7.03(a) and by rules and  regulations  prescribed from time
        to time by the Commission.

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<PAGE>

     (b) Unless the Issuer otherwise  determines,  the fiscal year of the Issuer
shall end on December 31 of each year.

        Section  7.04.  Reports by  Indenture  Trustee.  If  required by TIA ss.
313(a),  within 60 days after each January 1 beginning with January 1, 2003, the
Indenture  Trustee  shall mail to each  Noteholder as required by TIA ss. 313(c)
and to the Credit  Enhancer a brief report  dated as of such date that  complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b). A copy of each report at the time of its mailing to Noteholders shall be
filed by the Indenture  Trustee with the Commission and each stock exchange,  if
any,  on which the Notes are  listed.  The Issuer  shall  notify  the  Indenture
Trustee if and when the Notes are listed on any stock exchange.

                                              45

<PAGE>

                                  Article VIII

                      Accounts, Disbursements and Releases

        Section  8.01.  Collection  of  Money.  Except  as  otherwise  expressly
provided  herein,  the Indenture  Trustee may demand payment or delivery of, and
shall receive and collect,  directly and without  intervention  or assistance of
any fiscal agent or other intermediary,  all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture,  if any default occurs
in the making of any payment or  performance  under any  agreement or instrument
that is part of the Trust Estate,  the Indenture Trustee may take such action as
may be  appropriate  to enforce  such  payment  or  performance,  including  the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

        Section 8.02.  Trust Accounts.  (a) On or prior to the Closing Date, the
Issuer shall cause the Indenture Trustee to establish and maintain,  in the name
of the Indenture Trustee, for the benefit of the Noteholders and the Certificate
Paying Agent, on behalf of the  Certificateholders  and the Credit Enhancer, the
Payment Account as provided in Section 3.01 of this Indenture.

        (b) All  monies  deposited  from  time to  time in the  Payment  Account
pursuant to the Servicing  Agreement and all deposits  therein  pursuant to this
Indenture  are for the benefit of the  Noteholders  and the  Certificate  Paying
Agent, on behalf of the  Certificateholders  and all investments  made with such
monies  including  all  income or other gain from such  investments  are for the
benefit of the Master Servicer as provided by the Servicing Agreement.

        On each Payment Date, the Indenture Trustee shall distribute all amounts
on deposit in the Payment  Account to Noteholders in respect of the Notes and in
its capacity as Certificate Paying Agent to  Certificateholders  in the order of
priority  set forth in Section  3.05  (except as  otherwise  provided in Section
5.04(b).

        The Master  Servicer  shall direct the  Indenture  Trustee in writing to
invest any funds in the Payment  Account in  Permitted  Investments  maturing no
later than the Business Day preceding each Payment Date and shall not be sold or
disposed of prior to the maturity.

        Section 8.03. Officer's Certificate. The Indenture Trustee shall receive
at least  seven  days  notice  when  requested  by the Issuer to take any action
pursuant to Section  8.05(a),  accompanied  by copies of any  instruments  to be
executed,  and the Indenture Trustee shall also require,  as a condition to such
action,  an Officer's  Certificate,  in form and substance  satisfactory  to the
Indenture  Trustee,  stating the legal effect of any such action,  outlining the
steps  required  to  complete  the  same,  and  concluding  that all  conditions
precedent to the taking of such action have been complied with.

                                              46

<PAGE>

        Section  8.04.  Termination  Upon  Distribution  to  Noteholders.   This
Indenture and the respective  obligations and responsibilities of the Issuer and
the Indenture  Trustee created hereby shall  terminate upon the  distribution to
the   Noteholders,   the   Certificate   Paying   Agent   (on   behalf   of  the
Certificateholders)  and the  Indenture  Trustee of all  amounts  required to be
distributed pursuant to Article III; provided,  however,  that in no event shall
the trust created  hereby  continue  beyond the  expiration of 21 years from the
death  of the  survivor  of the  descendants  of  Joseph  P.  Kennedy,  the late
ambassador of the United  States to the Court of St.  James,  living on the date
hereof.

        Section 8.05. Release of Trust Estate. (a) Subject to the payment of its
fees  and  expenses,  the  Indenture  Trustee  may,  and  when  required  by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture,  or convey the Indenture  Trustee's  interest in the
same, in a manner and under  circumstances  that are not  inconsistent  with the
provisions of this  Indenture.  No party relying upon an instrument  executed by
the Indenture  Trustee as provided in Article VIII  hereunder  shall be bound to
ascertain the Indenture  Trustee's  authority,  inquire into the satisfaction of
any conditions precedent, or see to the application of any monies.

        (b) The Indenture  Trustee shall, at such time as (i) there are no Notes
Outstanding,  (ii) all sums due the Indenture Trustee pursuant to this Indenture
have been  paid,  and (iii) all sums due the  Credit  Enhancer  have been  paid,
release any  remaining  portion of the Trust  Estate that secured the Notes from
the lien of this Indenture.

        (c) The Indenture  Trustee shall release  property from the lien of this
Indenture  pursuant to this Section 8.05 only upon receipt of a request from the
Issuer  accompanied  by an  Officers'  Certificate  and a letter from the Credit
Enhancer, stating that the Credit Enhancer has no objection to such request from
the Issuer.

        (d) The  Indenture  Trustee  shall,  at the request of the Issuer or the
Depositor,  surrender the Credit  Enhancement  Instrument to the Credit Enhancer
for cancellation, upon final payment on the Notes.

        Section 8.06.  Surrender of Notes Upon Final  Payment.  By acceptance of
any Note,  the Holder  thereof  agrees to surrender  such Note to the  Indenture
Trustee  promptly,  prior to such  Noteholder's  receipt  of the  final  payment
thereon.

                                              47

<PAGE>

                                   Article IX

                             Supplemental Indentures

        Section 9.01.  Supplemental  Indentures  Without Consent of Noteholders.
(a) Without the consent of the Holders of any Notes but with prior notice to the
Rating Agencies and the Credit Enhancer,  the Issuer and the Indenture  Trustee,
when  authorized by an Issuer  Request,  at any time and from time to time,  may
enter into one or more  indentures  supplemental  hereto (which shall conform to
the  provisions  of the  Trust  Indenture  Act as in  force  at the  date of the
execution  thereof),  in form satisfactory to the Indenture Trustee,  for any of
the following purposes:

                      (i) to correct or amplify the  description of any property
        at any time subject to the lien of this Indenture,  or better to assure,
        convey and confirm unto the  Indenture  Trustee any property  subject or
        required to be subjected to the lien of this Indenture, or to subject to
        the lien of this Indenture additional property;

                      (ii) to evidence the  succession,  in compliance  with the
        applicable  provisions  hereof, of another person to the Issuer, and the
        assumption  by any such  successor of the covenants of the Issuer herein
        and in the Notes contained;

                      (iii)  to add to the  covenants  of the  Issuer,  for  the
        benefit  of the  Holders  of the  Notes or the  Credit  Enhancer,  or to
        surrender any right or power herein conferred upon the Issuer;

          (iv) to convey,  transfer,  assign, mortgage or pledge any property to
     or with the Indenture Trustee;

                      (v) to cure any  ambiguity,  to correct  any error,  or to
        correct  or  supplement  any  provision  herein  or in any  supplemental
        indenture that may be inconsistent  with any other provision  herein, in
        any supplemental indenture or in the Prospectus Supplement;

                      (vi) to make any other  provisions with respect to matters
        or  questions  arising  under  this  Indenture  or in  any  supplemental
        indenture; provided, that such action shall not materially and adversely
        affect the interests of the Holders of the Notes or the Credit Enhancer;

                      (vii) to evidence  and provide for the  acceptance  of the
        appointment  hereunder by a successor  trustee with respect to the Notes
        and to add to or change any of the provisions of this Indenture as shall
        be necessary to facilitate the administration of the trusts hereunder by
        more than one trustee, pursuant to the requirements of Article VI; or

                      (viii) to modify,  eliminate or add to the  provisions  of
        this  Indenture  to such  extent as shall be  necessary  to  effect  the
        qualification  of this  Indenture  under  the TIA or under  any  similar
        federal  statute  hereafter  enacted and to add to this  Indenture  such
        other  provisions  as may be  expressly  required by the TIA;  provided,
        however, that no such indenture supplements shall be entered into unless
        the Indenture Trustee shall have received

                                              48

<PAGE>

        an Opinion of Counsel that entering into such indenture  supplement will
        not have any material adverse tax  consequences to the Noteholders.  The
        Indenture  Trustee is hereby  authorized to join in the execution of any
        such  supplemental   indenture  and  to  make  any  further  appropriate
        agreements and stipulations that may be therein contained.

        (b) The Issuer and the Indenture  Trustee,  when authorized by an Issuer
Request,  may,  also  without the consent of any of the Holders of the Notes but
with prior notice to the Rating Agencies and the Credit Enhancer,  enter into an
indenture  or  indentures  supplemental  hereto  for the  purpose  of adding any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, this  Indenture  or of  modifying in any manner the rights of the Holders of
the Notes under this Indenture;  provided,  however, that such action shall not,
as  evidenced  by an Opinion of Counsel,  (i)  adversely  affect in any material
respect the interests of any Noteholder or the Credit Enhancer or (ii) cause the
Issuer to be subject to an entity level tax.

        (c) The Issuer and the  Indenture  Trustee  shall,  as  directed  by the
Holders of  Certificates  which  represent not less than 100% of the Certificate
Percentage Interests thereof, enter into an indenture or indentures supplemental
hereto for the purpose of providing  for the issuance of one or more  additional
classes of Notes  entitled to payments  derived  solely from all or a portion of
the payments to which the  Certificates  issued on the Closing Date  pursuant to
the Trust Agreement are entitled; provided, however, that such action shall not,
as  evidenced  by an Opinion of Counsel,  (i)  adversely  affect in any material
respect the interests of any Noteholder or the Credit Enhancer or (ii) cause the
Issuer to be subject to an entity level tax. Each such class of Notes shall be a
non-recourse  obligation  of the Issuer and shall be entitled  to  interest  and
principal in such amounts,  and to such security for the repayment  thereof,  as
shall be specified in such amendment or amendments. Promptly after the execution
by the  Issuer and the  Indenture  Trustee of any  amendments  pursuant  to this
Section or the creation of a new indenture and the issuance of the related class
or classes of Notes,  the Issuer  shall  require the  Indenture  Trustee to give
notice to the  Holders of the Notes and the  Rating  Agencies  setting  forth in
general terms the substance of the provisions of such amendment.  Any failure of
the  Indenture  Trustee  to  provide  such  notice  as is  required  under  this
paragraph,  or any  defect  therein,  shall not,  however,  in any way impair or
affect the  validity of such  amendment  or any class of Notes  issued  pursuant
thereto.  Unless the Credit Enhancer agrees in writing, (i) any classes of Notes
issued  pursuant  to a  supplemental  indenture  shall  not be  entitled  to the
insurance provided by the Credit Enhancement  Instrument and (ii) the Holders of
any such  classes of Notes shall be  entitled  only to such  distributions  or a
portion of such  distributions  as the Holders would have received as Holders of
Certificates.

        Section 9.02. Supplemental  Indentures With Consent of Noteholders.  The
Issuer and the Indenture  Trustee,  when authorized by an Issuer  Request,  also
may,  with  prior  notice to the  Rating  Agencies  and with the  consent of the
Holders of not less than a majority of the  aggregate  Note Balance of the Notes
(for which  purpose  the Class A-IO Notes will be deemed to have a Note  Balance
equal to their Notional Amount) affected thereby and the Credit Enhancer, by Act
of such Holders delivered to the Issuer and the Indenture Trustee, enter into an
indenture  or  indentures  supplemental  hereto  for the  purpose  of adding any
provisions  to, or changing in any manner or  eliminating  any of the provisions
of, this  Indenture  or of  modifying in any manner the rights of the Holders of
the Notes under this Indenture;  provided,  however,  that no such  supplemental
indenture  shall,  without  the  consent  of the  Holder of each  Note  affected
thereby:

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                      (i)  change  the date of  payment  of any  installment  of
        principal  of or interest on any Note,  or reduce the  principal  amount
        thereof or the interest  rate  thereon,  change the  provisions  of this
        Indenture relating to the application of collections on, or the proceeds
        of the Sale of, the Trust  Estate to payment of principal of or interest
        on the  Notes,  or change  any place of  payment  where,  or the coin or
        currency  in which,  any Note or the  interest  thereon is  payable,  or
        impair the right to institute suit for the enforcement of the provisions
        of this Indenture requiring the application of funds available therefor,
        as  provided  in Article V, to the payment of any such amount due on the
        Notes on or after the respective due dates thereof;

                      (ii) reduce the  percentage of the related Note Balance or
        Notional  Amount,  as applicable,  of any Class of Notes, the consent of
        the Holders of which is required for any such supplemental indenture, or
        the  consent  of the  Holders  of which is  required  for any  waiver of
        compliance with certain provisions of this Indenture or certain defaults
        hereunder and their consequences provided for in this Indenture;

                      (iii) modify or alter the provisions of the proviso to the
        definition of the term "Outstanding" or modify or alter the exception in
        the definition of the term "Holder";

                      (iv) reduce the  percentage of the aggregate  Note Balance
        of the Notes  required  to direct  the  Indenture  Trustee to direct the
        Issuer to sell or liquidate the Trust Estate pursuant to Section 5.04;

                      (v) modify any  provision  of this  Section 9.02 except to
        increase  any  percentage  specified  herein or to provide  that certain
        additional provisions of this Indenture or the Basic Documents cannot be
        modified  or  waived  without  the  consent  of the  Holder of each Note
        affected thereby;

                      (vi) modify any of the  provisions  of this  Indenture  in
        such manner as to affect the calculation of the amount of any payment of
        interest or principal due on any Note on any Payment Date (including the
        calculation of any of the individual components of such calculation); or

                      (vii) permit the creation of any lien ranking  prior to or
        on a parity with the lien of this  Indenture with respect to any part of
        the Trust  Estate or,  except as  otherwise  permitted  or  contemplated
        herein, terminate the lien of this Indenture on any property at any time
        subject  hereto  or  deprive  the  Holder  of any  Note of the  security
        provided by the lien of this Indenture; and provided, further, that such
        action  shall not,  as  evidenced  by an Opinion of  Counsel,  cause the
        Issuer to be subject to an entity level tax.

        The Indenture Trustee may in its discretion determine whether or not any
Notes would be affected by any supplemental indenture and any such determination
shall be  conclusive  upon the  Holders of all  Notes,  whether  theretofore  or
thereafter  authenticated and delivered  hereunder.  The Indenture Trustee shall
not be liable for any such determination made in good faith.

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<PAGE>

        It shall not be  necessary  for any Act of  Noteholders  (as  defined in
Section  10.03) under this Section  9.02 to approve the  particular  form of any
proposed  supplemental  indenture,  but it shall be sufficient if such Act shall
approve the substance thereof.

        Promptly after the execution by the Issuer and the Indenture  Trustee of
any supplemental  indenture pursuant to this Section 9.02, the Indenture Trustee
shall mail to the Holders of the Notes and the Custodian to which such amendment
or  supplemental  indenture  relates a notice setting forth in general terms the
substance of such supplemental  indenture.  Any failure of the Indenture Trustee
to mail such  notice,  or any defect  therein,  shall not,  however,  in any way
impair or affect the validity of any such supplemental indenture.

        Section 9.03.  Execution of Supplemental  Indentures.  In executing,  or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the  modification  thereby of the trusts created
by this  Indenture,  the  Indenture  Trustee  shall be entitled to receive,  and
subject to Sections 6.01 and 6.02,  shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized or permitted by this  Indenture and conforms to the  requirements  of
the Trust  Indenture Act. The Indenture  Trustee may, but shall not be obligated
to,  enter into any such  supplemental  indenture  that  affects  the  Indenture
Trustee's own rights, duties,  liabilities or immunities under this Indenture or
otherwise.

        Section 9.04.  Effect of Supplemental  Indenture.  Upon the execution of
any supplemental  indenture  pursuant to the provisions  hereof,  this Indenture
shall be and shall be deemed to be modified and amended in accordance  therewith
with  respect  to  the  Notes  affected  thereby,  and  the  respective  rights,
limitations of rights,  obligations,  duties,  liabilities and immunities  under
this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined,  exercised and enforced hereunder subject in all
respects to such modifications and amendments,  and all the terms and conditions
of any such  supplemental  indenture  shall be and be  deemed  to be part of the
terms and conditions of this Indenture for any and all purposes.

        Section 9.05.  Conformity  with Trust  Indenture Act. Every amendment of
this  Indenture  and every  supplemental  indenture  executed  pursuant  to this
Article IX shall conform to the  requirements of the Trust Indenture Act as then
in effect so long as this  Indenture  shall  then be  qualified  under the Trust
Indenture Act.

        Section  9.06.  Reference  in Notes to  Supplemental  Indentures.  Notes
authenticated  and delivered after the execution of any  supplemental  indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a  notation  in form  approved  by the  Indenture  Trustee as to any matter
provided  for in such  supplemental  indenture.  If the Issuer or the  Indenture
Trustee shall so determine,  new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental  indenture may
be prepared and executed by the Issuer and  authenticated  and  delivered by the
Indenture Trustee in exchange for Outstanding Notes.

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<PAGE>

                                    Article X

                                  Miscellaneous

        Section  10.01.Compliance  Certificates and Opinions,  etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and to the Credit Enhancer (i) an Officer's Certificate stating that all
conditions  precedent,  if any,  provided for in this Indenture  relating to the
proposed  action have been complied with and (ii) an Opinion of Counsel  stating
that in the opinion of such counsel all such conditions precedent,  if any, have
been complied with,  except that, in the case of any such application or request
as to which the  furnishing of such  documents is  specifically  required by any
provision  of this  Indenture,  no  additional  certificate  or opinion  need be
furnished.  Every  certificate  or opinion  with  respect to  compliance  with a
condition or covenant provided for in this Indenture shall include:

                  (1) a statement  that each  signatory of such  certificate  or
        opinion has read or has caused to be read such covenant or condition and
        the definitions herein relating thereto;

                  (2) a  brief  statement  as to the  nature  and  scope  of the
        examination  or  investigation  upon which the  statements  or  opinions
        contained in such certificate or opinion are based;

                  (3) a statement  that, in the opinion of each such  signatory,
        such  signatory  has  made  such  examination  or  investigation  as  is
        necessary to enable such signatory to express an informed  opinion as to
        whether or not such covenant or condition has been complied with;

               (4) a  statement  as to  whether,  in the  opinion  of each  such
          signatory, such condition or covenant has been complied with; and

                  (5) if the Signer of such  Certificate  or Opinion is required
        to be Independent,  the Statement required by the definition of the term
        "Independent".

        (b) (i) Prior to the  deposit of any  Collateral  or other  property  or
securities  with the  Indenture  Trustee  that is to be made the  basis  for the
release of any property or securities subject to the lien of this Indenture, the
Issuer  shall,  in addition  to any  obligation  imposed in Section  10.01(a) or
elsewhere  in this  Indenture,  furnish to the  Indenture  Trustee an  Officer's
Certificate  certifying  or stating  the  opinion of each  person  signing  such
certificate  as to the fair value (within 90 days of such deposit) to the Issuer
of the Collateral or other property or securities to be so deposited.

                      (ii)  Whenever  the Issuer is  required  to furnish to the
        Indenture  Trustee an Officer's  Certificate  certifying  or stating the
        opinion of any signer thereof as to the matters  described in clause (i)
        above,  the  Issuer  shall  also  deliver  to the  Indenture  Trustee an
        Independent Certificate as to the same matters, if the fair value to the
        Issuer  of the  securities  to be so  deposited  and of all  other  such
        securities  made the basis of any such  withdrawal  or release since the
        commencement of the then-current fiscal year of the Issuer, as set forth
        in the  certificates  delivered  pursuant  to clause  (i) above and this
        clause  (ii),  is 10% or more of the  aggregate  Note Balance (for which
        purpose the

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<PAGE>

        Class A-IO Notes  will be deemed to have a Note  Balance  equal to their
        Notional  Amount)  of the  Notes,  but  such a  certificate  need not be
        furnished with respect to any securities so deposited, if the fair value
        thereof to the Issuer as set forth in the related Officer's  Certificate
        is less than  $25,000  or less than one  percent of the  aggregate  Note
        Balance of the Notes.

                      (iii)  Whenever  any  property  or  securities  are  to be
        released from the lien of this Indenture,  the Issuer shall also furnish
        to the Indenture Trustee an Officer's Certificate  certifying or stating
        the opinion of each person signing such certificate as to the fair value
        (within 90 days of such release) of the property or securities  proposed
        to be  released  and  stating  that in the  opinion  of such  person the
        proposed  release will not impair the security  under this  Indenture in
        contravention of the provisions hereof.

                      (iv)  Whenever  the Issuer is  required  to furnish to the
        Indenture  Trustee an Officer's  Certificate  certifying  or stating the
        opinion of any  signer  thereof as to the  matters  described  in clause
        (iii) above,  the Issuer shall also furnish to the Indenture  Trustee an
        Independent  Certificate as to the same matters if the fair value of the
        property or securities and of all other property, other than property as
        contemplated by clause (v) below or securities released from the lien of
        this Indenture since the commencement of the then-current calendar year,
        as set forth in the certificates required by clause (iii) above and this
        clause (iv), equals 10% or more of the aggregate Note Balance (for which
        purpose the Class A-IO Notes will be deemed to have a Note Balance equal
        to their Notional Amount) of the Notes, but such certificate need not be
        furnished  in the case of any release of property or  securities  if the
        fair value thereof as set forth in the related Officer's  Certificate is
        less than  $25,000 or less than one percent of the then  aggregate  Note
        Balance of the Notes.

                      (v) Notwithstanding  any provision of this Indenture,  the
        Issuer  may,  without  compliance  with the  requirements  of the  other
        provisions of this Section 10.01, (A) collect, sell or otherwise dispose
        of the Home  Loans as and to the extent  permitted  or  required  by the
        Basic  Documents or (B) make cash payments out of the Payment Account as
        and to the extent permitted or required by the Basic Documents,  so long
        as the Issuer shall deliver to the  Indenture  Trustee every six months,
        commencing June 30, 2002, an Officer's Certificate of the Issuer stating
        that all the dispositions of Collateral  described in clauses (A) or (B)
        above that occurred during the preceding six calendar months were in the
        ordinary course of the Issuer's  business and that the proceeds  thereof
        were applied in accordance with the Basic Documents.

        Section 10.02. Form of Documents  Delivered to Indenture Trustee. In any
case where  several  matters are required to be  certified  by, or covered by an
opinion of, any specified  Person,  it is not necessary that all such matters be
certified  by, or covered by the opinion of, only one such Person,  or that they
be so certified or covered by only one document, but one such Person may certify
or give an  opinion  with  respect  to some  matters  and one or more other such
Persons as to other matters,  and any such Person may certify or give an opinion
as to such matters in one or several documents.

        Any certificate or opinion of an Authorized Officer of the Issuer may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or  representations
with respect to the matters upon which his certificate or opinion is based are

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<PAGE>

erroneous.  Any such certificate of an Authorized  Officer or Opinion of Counsel
may be based,  insofar as it relates to factual  matters,  upon a certificate or
opinion of, or  representations  by, an officer or officers of the Seller or the
Issuer,  stating that the information with respect to such factual matters is in
the possession of the Seller or the Issuer, unless such counsel knows, or in the
exercise of  reasonable  care should know,  that the  certificate  or opinion or
representations with respect to such matters are erroneous.

        Where any  Person  is  required  to make,  give or  execute  two or more
applications,  requests, consents,  certificates,  statements, opinions or other
instruments  under this Indenture,  they may, but need not, be consolidated  and
form one instrument.

        Whenever  in this  Indenture,  in  connection  with any  application  or
certificate or report to the Indenture  Trustee,  it is provided that the Issuer
shall  deliver any document as a condition of the granting of such  application,
or as evidence of the Issuer's  compliance with any term hereof,  it is intended
that the truth and accuracy,  at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and  opinions  stated in such  document  shall in such case be  conditions
precedent to the right of the Issuer to have such application  granted or to the
sufficiency of such certificate or report. The foregoing shall not, however,  be
construed  to affect the  Indenture  Trustee's  right to rely upon the truth and
accuracy of any statement or opinion  contained in any such document as provided
in Article VI.

        Section  10.03.   Acts  of   Noteholders.   (a)  Any  request,   demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be  given or taken by  Noteholders  may be  embodied  in and
evidenced by one or more  instruments of  substantially  similar tenor signed by
such Noteholders in person or by agents 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 Indenture Trustee,  and, where it
is hereby expressly required, to the Issuer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "Act" of the Noteholders signing such instrument or instruments. Proof
of execution of any such  instrument or of a writing  appointing  any such agent
shall be  sufficient  for any purpose of this  Indenture and (subject to Section
6.01)  conclusive in favor of the Indenture  Trustee and the Issuer,  if made in
the manner provided in this Section 10.03.

        (b) The  fact  and  date of the  execution  by any  person  of any  such
instrument  or writing  may be proved in any manner that the  Indenture  Trustee
deems sufficient.

        (c)    The ownership of Notes shall be proved by the Note Registrar.

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

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<PAGE>

        Section  10.04.  Notices,  etc., to Indenture  Trustee,  Issuer,  Credit
Enhancer and Rating Agencies.  Any request,  demand,  authorization,  direction,
notice,  consent,  waiver or Act of Noteholders or other  documents  provided or
permitted by this  Indenture  shall be in writing and if such  request,  demand,
authorization, direction, notice, consent, waiver or Act of Noteholders is to be
made upon, given or furnished to or filed with:

                        (i) the  Indenture  Trustee by any  Noteholder or by the
        Issuer shall be sufficient for every purpose  hereunder if made,  given,
        furnished  or filed in writing to or with the  Indenture  Trustee at the
        Corporate Trust Office.  The Indenture  Trustee shall promptly  transmit
        any notice received by it from the Noteholders to the Issuer, or

                        (ii)  the  Issuer  by the  Indenture  Trustee  or by any
        Noteholder shall be sufficient for every purpose hereunder if in writing
        and mailed first-class, postage prepaid to the Issuer addressed to: Home
        Loan Trust  2002-HI2,  in care of Wilmington  Trust  Company,  or at any
        other address  previously  furnished in writing to the Indenture Trustee
        by the Issuer. The Issuer shall promptly transmit any notice received by
        it from the Noteholders to the Indenture Trustee, or

                        (iii) the Credit  Enhancer by the Issuer,  the Indenture
        Trustee or by any  Noteholders  shall be  sufficient  for every  purpose
        hereunder to in writing and mailed,  first class  postage  pre-paid,  or
        personally delivered or telecopied to: Ambac Assurance Corporation,  One
        State Street Plaza,  19th Floor,  New York,  New York 10004,  Attention:
        Consumer   Asset-Backed   Securities  Group,   telecopier  number  (212)
        363-1459.  The  Credit  Enhancer  shall  promptly  transmit  any  notice
        received by it from the Issuer, the Indenture Trustee or the Noteholders
        to the Issuer or Indenture Trustee, as the case may be.

        Notices  required to be given to the Rating Agencies by the Issuer,  the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified  mail,  return receipt  requested,  to (i) in the case of
Moody's,  at  the  following  address:  Moody's  Investors  Service,  Inc.,  ABS
Monitoring  Department,  99 Church Street,  New York, New York 10007 and (ii) in
the case of Standard & Poor's,  at the following  address:  Standard & Poor's, A
Division of the McGraw-Hill  Companies,  Inc., 55 Water Street - 41st Floor, New
York, New York 10041, Attention of Asset Backed Surveillance  Department;  or as
to each of the  foregoing,  at such  other  address  as shall be  designated  by
written notice to the other parties.

        Section  10.05.  Notices to  Noteholders;  Waiver.  Where this Indenture
provides  for  notice  to  Noteholders  of  any  event,  such  notice  shall  be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing
and mailed,  first-class,  postage prepaid to each  Noteholder  affected by such
event,  at such Person's  address as it appears on the Note Register,  not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Noteholders is given by mail,
neither  the  failure to mail such notice nor any defect in any notice so mailed
to any particular  Noteholder  shall affect the  sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall  conclusively  be presumed to have been duly given  regardless of
whether such notice is in fact actually received.

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<PAGE>

        Where this Indenture provides for notice in any manner,  such notice may
be waived in writing by any Person  entitled  to  receive  such  notice,  either
before or after the  event,  and such  waiver  shall be the  equivalent  of such
notice.  Waivers  of notice by  Noteholders  shall be filed  with the  Indenture
Trustee but such filing  shall not be a condition  precedent  to the validity of
any action taken in reliance upon such a waiver.

        In case, by reason of the suspension of regular mail service as a result
of a strike, work stoppage or similar activity,  it shall be impractical to mail
notice of any event to  Noteholders  when such  notice is  required  to be given
pursuant  to any  provision  of this  Indenture,  then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

        Where this Indenture provides for notice to the Rating Agencies, failure
to give such notice  shall not affect any other  rights or  obligations  created
hereunder, and shall not under any circumstance constitute an Event of Default.

        Section 10.06. Alternate Payment and Notice Provisions.  Notwithstanding
any provision of this Indenture or any of the Notes to the contrary,  the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment,  or notice by the Indenture  Trustee to such Holder,  that is different
from the methods  provided for in this  Indenture  for such payments or notices.
The Issuer shall furnish to the Indenture  Trustee a copy of each such agreement
and the  Indenture  Trustee  shall  cause  payments to be made and notices to be
given in accordance with such agreements.

        Section  10.07.  Conflict  with Trust  Indenture  Act. If any  provision
hereof  limits,  qualifies or conflicts  with another  provision  hereof that is
required to be included in this  Indenture by any of the provisions of the Trust
Indenture  Act, such required  provision  shall  control.  The provisions of TIA
ss.ss.  310  through  317  that  impose  duties  on any  Person  (including  the
provisions  automatically  deemed included herein unless  expressly  excluded by
this  Indenture)  are a part  of  and  govern  this  Indenture,  whether  or not
physically contained herein.

     Section 10.08. Effect of Headings.  The Article and Section headings herein
are for convenience only and shall not affect the construction hereof.

        Section 10.09.  Successors and Assigns.  All covenants and agreements in
this  Indenture  and the  Notes by the  Issuer  shall  bind its  successors  and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

        Section 10.10. Separability.  In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining  provisions shall not in any way be affected
or impaired thereby.

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<PAGE>

        Section  10.11.  Benefits of Indenture.  Nothing in this Indenture or in
the Notes, express or implied,  shall give to any Person, other than the parties
hereto and their successors hereunder, and the Noteholders, the Credit Enhancer,
and any other party  secured  hereunder,  and any other Person with an ownership
interest in any part of the Trust Estate,  any benefit or any legal or equitable
right, remedy or claim under this Indenture.

        Section 10.12.  Legal Holidays.  In any case where the date on which any
payment  is due shall not be a Business  Day,  then  (notwithstanding  any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next  succeeding  Business  Day with the same  force  and
effect as if made on the date on which  nominally  due,  and no  interest  shall
accrue for the period from and after any such nominal date.

        Section  10.13.  GOVERNING  LAW.  THIS  INDENTURE  SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 10.14.  Counterparts.  This Indenture may be executed in any number
of  counterparts,  each of which so executed  shall be deemed to be an original,
but all  such  counterparts  shall  together  constitute  but  one and the  same
instrument.

        Section 10.15.  Recording of Indenture.  If this Indenture is subject to
recording in any appropriate public recording  offices,  such recording is to be
effected by the Issuer and at its expense  accompanied  by an Opinion of Counsel
(which may be counsel to the Indenture  Trustee or any other counsel  reasonably
acceptable  to the  Indenture  Trustee)  to the effect  that such  recording  is
necessary  either for the  protection  of the  Noteholders  or any other  Person
secured  hereunder or for the  enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

        Section 10.16. Issuer Obligation.  No recourse may be taken, directly or
indirectly,  with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other  writing  delivered in connection  herewith or therewith,  against (i) the
Indenture  Trustee or the Owner  Trustee in its  individual  capacity,  (ii) any
owner of a  beneficial  interest  in the  Issuer  or (iii) any  partner,  owner,
beneficiary,  agent,  officer,  director,  employee  or agent  of the  Indenture
Trustee  or the  Owner  Trustee  in its  individual  capacity,  any  holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture  Trustee or the Owner Trustee in its
individual  capacity,  except as any such Person may have  expressly  agreed (it
being  understood that the Indenture  Trustee and the Owner Trustee have no such
obligations  in their  individual  capacity)  and except that any such  partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid  consideration  for stock,  unpaid capital  contribution  or
failure to pay any installment or call owing to such entity. For all purposes of
this  Indenture,  in the  performance of any duties or obligations of the Issuer
hereunder,  the Owner  Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

                                              57

<PAGE>

        Section 10.17. No Petition. The Indenture Trustee, by entering into this
Indenture,  and each Noteholder,  by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Depositor or the Issuer, or
join in any institution  against the Depositor or the Issuer 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 the Notes, this Indenture or any
of the Basic Documents.

        Section 10.18.  Inspection.  The Issuer agrees that, on reasonable prior
notice, it shall permit any representative of the Indenture Trustee,  during the
Issuer's normal  business  hours, to examine all the books of account,  records,
reports and other papers of the Issuer,  to make copies and extracts  therefrom,
to cause such books to be audited by Independent  certified public  accountants,
and to discuss the Issuer's  affairs,  finances  and accounts  with the Issuer's
officers,  employees, and Independent certified public accountants,  all at such
reasonable  times and as often as may be  reasonably  requested.  The  Indenture
Trustee shall and shall cause its representatives to hold in confidence all such
information  except to the extent  disclosure  may be  required  by law (and all
reasonable applications for confidential treatment are unavailing) and except to
the  extent  that the  Indenture  Trustee  may  reasonably  determine  that such
disclosure is consistent with its obligations hereunder.

                                              58

<PAGE>

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

                             HOME LOAN TRUST 2002-HI2,
                                  as Issuer

                                    By:    Wilmington Trust Company
                                           not in its individual capacity
                                           but solely as Owner Trustee

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

                             JPMORGAN CHASE BANK,
                             as Indenture Trustee

                             By:
                                -----------------------------
                             Name:  Mark McDermott
                             Title: Assistant Vice President

JPMORGAN CHASE BANK
hereby  accepts the  appointment as Paying Agent pursuant to Section 3.03 hereof
and as Note Registrar pursuant to Section 4.02 hereof.

By:
    ------------------------------
Name: Mark McDermott
Title: Assistant Vice President

<PAGE>

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

                             HOME LOAN TRUST 2002-HI2,
                                 as Issuer
                                    By:    Wilmington Trust Company
                                           not in its individual capacity
                                           but solely as Owner Trustee

                             By: /s/
                                 ---------------------------
                             Name:
                             Title:

                             JPMORGAN CHASE BANK,
                             as Indenture Trustee

                             By: /s/ Mark McDermott
                                 ---------------------------
                             Name:  Mark McDermott
                             Title: Assistant Vice President

JPMORGAN CHASE BANK
hereby  accepts the  appointment as Paying Agent pursuant to Section 3.03 hereof
and as Note Registrar pursuant to Section 4.02 hereof.

By: /s/ Mark McDermott
    ----------------------------------
Name:   Mark McDermott
Title:  Assistant Vice President

<PAGE>

STATE OF NEW YORK       )
                             ) ss.:
COUNTY OF NEW YORK      )

        On this 26th day of March,  2002,  before me  personally  appeared  Mark
McDermott,  to me known, who being by me duly sworn, did depose and say, that he
resides  at New  York , NY,  that  he is the  Assistant  Vice  President  of the
Indenture Trustee,  one of the corporations  described in and which executed the
above instrument; and that he signed his name thereto by like order.

                                                                 Notary Public

<PAGE>

STATE OF NEW YORK       )
                             ) ss.:
COUNTY OF NEW YORK      )

        On this  26th day of March,  2002,  before  me the  undersigned,  Notary
Public of said State, personally appeared Mark McDermott, personally known to me
to be a duly authorized  officer of JPMorgan Chase Bank that executed the within
instrument and  personally  known to me to be the person who executed the within
instrument on behalf of JPMorgan Chase Bank therein named,  and  acknowledged to
me such JPMorgan Chase Bank executed the within  instrument  pursuant to its by-
laws.

                                                                 Notary Public

<PAGE>

STATE OF DELAWARE            )
                                    ) ss.:
COUNTY OF NEW CASTLE         )

        On this 26th day of March,  2002, before me personally  appeared , to me
known,  who being by me duly  sworn,  did  depose  and say,  that he  resides at
Wilmington,  DE, that he is the of Wilmington  Trust Company,  as Owner Trustee,
one of the  corporations  described in and which executed the above  instrument;
and that he signed his name thereto by like order.

                                                                 Notary Public

NOTARIAL SEAL

<PAGE>

                                   EXHIBIT A-1

                                  FORM OF NOTES

                               CLASS A-__-__ NOTES

               UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC), ANY
TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

               THE  PRINCIPAL  OF THIS NOTE IS  PAYABLE IN  INSTALLMENTS  AS SET
FORTH HEREIN. ACCORDINGLY,  THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY
TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

               THIS NOTE DOES NOT  REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE DEPOSITOR,  THE MASTER SERVICER,  THE INDENTURE  TRUSTEE,  THE OWNER
TRUSTEE OR GMAC  MORTGAGE  GROUP,  INC. OR ANY OF THEIR  RESPECTIVE  AFFILIATES,
EXCEPT AS EXPRESSLY PROVIDED IN THE INDENTURE OR THE BASIC DOCUMENTS.

               THE HOLDER OF THIS NOTE IS DEEMED TO HAVE REPRESENTED THAT EITHER
(1) IT IS NOT A PLAN NOR IS IT  ACQUIRING  THIS NOTE WITH PLAN ASSETS OR (2) THE
ACQUISITION  OF THIS NOTE BY THE HOLDER  DOES NOT  CONSTITUTE  OR GIVE RISE TO A
PROHIBITED  TRANSACTION  UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE,
FOR WHICH NO STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                            HOME LOAN TRUST 2002-HI2
                              Home Loan-Backed Note

Registered                           Principal Amount: $___________

Class A-__-__
No. __                                Percentage Interest: _____%

CUSIP No. ___________                 Note Rate: _____%

                                              1

<PAGE>

               Home Loan Trust  2002-HI2,  a business  trust duly  organized and
existing  under the laws of the State of  Delaware  (herein  referred  to as the
"Issuer"),  for  value  received,  hereby  promises  to  pay to  Cede  & Co.  or
registered assigns,  the principal sum of $___________,  payable on each Payment
Date in an  amount  equal  to the  Percentage  Interest  specified  above of the
aggregate  amount,  if any,  payable  from the  Payment  Account  in  respect of
principal on the Class A-__-__  Notes  pursuant to Section 3.05 of the Indenture
dated as of March 26, 2002 (the "Indenture")  between the Issuer, as Issuer, and
JPMorgan Chase Bank, as Indenture Trustee (the "Indenture  Trustee");  provided,
however,  that the entire unpaid  principal amount of this Note shall be due and
payable on the Payment Date in March 2032, to the extent not previously  paid on
a prior Payment Date.  Capitalized terms used but not defined herein are defined
in Appendix A of the Indenture.

               [Interest on the Class A-__-__ Notes will be paid monthly on each
Payment Date at the Note Rate. The Note Rate for the Class A-__-__ Notes will be
_____% per annum. Interest will be computed on the basis of a 30-day month and a
360-day year. Principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof. On the Step-Up Date, the Note Rate on the Class
A-I-7 Notes and the Class A-II Notes will increase by 0.50% per annum.]

               [Interest  on the Class A-I-1 Notes will be paid  monthly on each
Payment Date at the Note Rate for the related Interest Accrual Period.  The Note
Rate for each Interest  Accrual  Period will be equal to the lesser of (i) LIBOR
plus  0.15% per  annum  and (ii)  8.00%  per  annum.  LIBOR for each  applicable
Interest  Accrual  Period will be  determined  on the second LIBOR  Business Day
immediately  preceding  (i) the Closing  Date in the case of the first  Interest
Accrual Period and (ii) the first day of each succeeding Interest Accrual Period
by the Indenture  Trustee as set forth in the Indenture.  All  determinations of
LIBOR by the  Indenture  Trustee  shall,  in the absence of manifest  error,  be
conclusive  for all  purposes,  and each  holder of this Class  A-I-1  Note,  by
accepting  this  Class  A-I-1  Note,  agrees to be bound by such  determination.
Interest  on this Class A-I-1 Note will  accrue for each  Payment  Date from the
most recent  Payment  Date on which  interest  has been paid (in the case of the
first Payment Date,  from the Closing Date) to but excluding  such Payment Date.
Interest  will be  computed  on the basis of the  actual  number of days in each
Interest Accrual Period and a year assumed to consist of 360 days.  Principal of
and  interest on this Class A-I-1 Note shall be paid in the manner  specified in
the Indenture.]

               Principal  of and  interest on this Note are payable in such coin
or currency  of the United  States of America as at the time of payment is legal
tender for payment of public and private debts.  All payments made by the Issuer
with respect to this Note shall be applied  first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note.

               Reference  is made to the  further  provisions  of this  Note set
forth on the reverse  hereof,  which shall have the same effect as though  fully
set forth on the face of this Note.

               Unless the certificate of authentication hereon has been executed
by the Indenture Trustee whose name appears below by manual signature, this Note
shall not be  entitled  to any benefit  under the  Indenture  referred to on the
reverse hereof, or be valid or obligatory for any purpose.

               This  Note is one of a duly  authorized  issue  of  Notes  of the
Issuer,  designated as its Home  Loan-Backed  Notes (herein called the "Notes"),
all issued under the Indenture, to which

                                              2

<PAGE>

Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Indenture  Trustee  and the  holders of the Notes.  The Notes are subject to all
terms of the Indenture.

               The Notes are and will be  equally  and  ratably  secured  by the
collateral pledged as security therefor as provided in the Indenture.

               This Note is  entitled  to the  benefits  of an  irrevocable  and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

               Principal  of and  interest  on this Note will be payable on each
Payment  Date,  commencing  on April 25, 2002,  as  described in the  Indenture.
"Payment Date" means the twenty-fifth day of each month, or, if any such date is
not a Business Day, then the next Business Day.

               The entire unpaid  principal amount of this Note shall be due and
payable in full on the Payment Date in March 2032 pursuant to the Indenture,  to
the extent not  previously  paid on a prior  Payment Date.  Notwithstanding  the
foregoing,  if an Event of Default shall have occurred and be  continuing,  then
the  Indenture  Trustee  or the  holders of Notes  representing  not less than a
majority of the  aggregate  Note Balance (for which purpose the Class A-IO Notes
will be deemed to have a Note  Balance  equal to their  Notional  Amount) of all
Notes with the  consent  of the Credit  Enhancer,  or the  Credit  Enhancer  may
declare the Notes to be  immediately  due and payable in the manner  provided in
Section 5.02 of the Indenture. All principal payments on the Notes shall be made
pro rata to the holders of Notes entitled thereto.

               Payments of interest on this Note due and payable on each Payment
Date,  together with the installment of principal,  if any, to the extent not in
full  payment of this Note,  shall be made by check  mailed to the Person  whose
name appears as the Registered  Holder of this Note (or one or more  Predecessor
Notes) on the Note  Register as of the close of  business  on each Record  Date,
except that with respect to Notes  registered  on the Record Date in the name of
the nominee of the Depository Agency (initially, such nominee to be Cede & Co.),
payments will be made by wire  transfer in  immediately  available  funds to the
account  designated by such  nominee.  Such checks shall be mailed to the Person
entitled  thereto  at the  address  of such  Person  as it  appears  on the Note
Register as of the  applicable  Record Date without  requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this
Note (or any one or more Predecessor Notes) effected by any payments made on any
Payment  Date shall be binding  upon all future  holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available,
as provided in the Indenture,  for payment in full of the then remaining  unpaid
principal amount of this Note on a Payment Date, then the Indenture Trustee,  in
the name of and on behalf of the  Issuer,  will  notify  the  Person who was the
Registered  Holder hereof as of the Record Date  preceding  such Payment Date by
notice mailed or  transmitted  by facsimile  prior to such Payment Date, and the
amount  then due and  payable  shall  be  payable  only  upon  presentation  and
surrender of this Note at the address specified in such notice of final payment.

                                              3

<PAGE>

               As provided in the Indenture  and subject to certain  limitations
set forth  therein,  the  transfer  of this Note may be  registered  on the Note
Register  upon  surrender  of this  Note for  registration  of  transfer  at the
Corporate Trust Office, duly endorsed by, or accompanied by a written instrument
of transfer in form  satisfactory to the Indenture Trustee duly executed by, the
holder hereof or such holder's  attorney duly  authorized in writing,  with such
signature  guaranteed  by  an  "eligible  guarantor   institution"  meeting  the
requirements of the Note Registrar,  which  requirements  include  membership or
participation in the Securities  Transfer Agent's Medallion Program ("STAMP") or
such  other  "signature  guarantee  program"  as may be  determined  by the Note
Registrar in addition to, or in substitution  for, STAMP, all in accordance with
the Securities  Exchange Act of 1934, as amended,  and thereupon one or more new
Notes in authorized  denominations  and in the same aggregate  principal  amount
will be issued to the designated  transferee or  transferees.  No service charge
will be charged for any  registration  of transfer or exchange of this Note, but
the Note Registrar shall require payment of a sum sufficient to cover any tax or
governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

               Each holder or  Beneficial  Owner of a Note,  by  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Seller,  the Master Servicer,  the Depositor or the Indenture Trustee on the
Notes or under the Indenture or any  certificate  or other writing  delivered in
connection therewith,  against (i) the Indenture Trustee or the Owner Trustee in
its individual  capacity,  (ii) any owner of a beneficial interest in the Issuer
or (iii) any partner, owner,  beneficiary,  agent, officer, director or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, owner or beneficiary shall be
fully  liable,  to  the  extent  provided  by  applicable  law  for  any  unpaid
consideration  for  stock,  unpaid  capital  contribution  or failure to pay any
installment or call owing to such entity.

               Each holder or  Beneficial  Owner of a Note,  by  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
holder or Beneficial Owner of a Note will not at any time institute  against the
Depositor,  the Seller,  the Master Servicer,  GMAC Mortgage Group,  Inc. or the
Issuer, or join in any institution against the Depositor, the Seller, the Master
Servicer,   GMAC  Mortgage  Group,  Inc.  or  the  Issuer  of,  any  bankruptcy,
reorganization,  arrangement,  insolvency or liquidation  proceedings  under any
United States federal or state  bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

               The Issuer has entered into the Indenture and this Note is issued
with the intention  that, for federal,  state and local income,  single business
and  franchise  tax  purposes,  the Notes will  qualify as  indebtedness  of the
Issuer.  Each holder of a Note,  by  acceptance  of a Note (and each  Beneficial
Owner of a Note by  acceptance  of a beneficial  interest in a Note),  agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

                                              4

<PAGE>

               Prior to the due presentment for registration of transfer of this
Note,  the  Issuer,  the  Indenture  Trustee  and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note is registered (as
of the day of  determination or as of such other date as may be specified in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

               The  Indenture  permits,   with  certain  exceptions  as  therein
provided,  the  amendment  thereof  and  the  modification  of  the  rights  and
obligations  of the  Issuer  and the  Indenture  Trustee  and the  rights of the
holders  of the Notes  under the  Indenture  at any time by the  Issuer  and the
Indenture  Trustee  with the  consent  of the  holders of Notes  representing  a
majority of the  aggregate  Note Balance (for which purpose the Class A-IO Notes
will be deemed to have a Note  Balance  equal to their  Notional  Amount) of all
Notes at the time  Outstanding  and the Credit Enhancer and with prior notice to
the Rating  Agencies.  The Indenture  also contains  provisions  permitting  the
holders  of Notes  representing  specified  percentages  of the  aggregate  Note
Balance  of all  Notes,  on behalf of the  holders  of all the  Notes,  to waive
compliance  by the Issuer with certain  provisions  of the Indenture and certain
past defaults  under the Indenture and their  consequences.  Any such consent or
waiver by the holder of this Note (or any one of more  Predecessor  Notes) shall
be conclusive  and binding upon such holder and upon all future  holders of this
Note and of any Note  issued  upon the  registration  of  transfer  hereof or in
exchange  hereof or in lieu hereof  whether or not  notation of such  consent or
waiver is made upon this Note.  The  Indenture  also  permits the Issuer and the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture  without the consent of holders of the Notes issued thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

               The term  "Issuer" as used in this Note includes any successor or
the Issuer under the Indenture.

               The  Issuer  is  permitted  by  the   Indenture,   under  certain
circumstances,  to merge or consolidate,  subject to the rights of the Indenture
Trustee and the holders of Notes under the Indenture.

               The Notes are issuable only in registered  form in  denominations
as provided in the Indenture, subject to certain limitations therein set forth.

               This Note and the Indenture shall be construed in accordance with
the laws of the State of New York,  without  reference  to its  conflict  of law
provisions and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

               No  reference  herein to the  Indenture  and no provision of this
Note or of the Indenture  shall alter or impair,  the  obligation of the Issuer,
which is absolute  and  unconditional,  to pay the  principal of and interest on
this  Note at the  times,  place and rate,  and in the coin or  currency  herein
prescribed.

               Anything  herein  to  the  contrary  notwithstanding,  except  as
expressly  provided in the Basic Documents,  none of Wilmington Trust Company in
its individual capacity, JPMorgan Chase

                                              5

<PAGE>

Bank,  in its  individual  capacity,  any owner of a beneficial  interest in the
Issuer, or any of their respective partners,  beneficiaries,  agents,  officers,
directors,  employees or successors  or assigns shall be personally  liable for,
nor shall  recourse be had to any of them for,  the payment of  principal  of or
interest on this Note or  performance  of, or  omission  to perform,  any of the
covenants,  obligations  or  indemnifications  contained in the  Indenture.  The
holder of this Note by its  acceptance  hereof agrees that,  except as expressly
provided in the Basic  Documents,  in the case of an Event of Default  under the
Indenture,  the holder shall have no claim  against any of the foregoing for any
deficiency,  loss or claim therefrom;  provided, however, that nothing contained
herein  shall be taken to prevent  recourse  to, and  enforcement  against,  the
assets of the Issuer for any and all  liabilities,  obligations and undertakings
contained in the Indenture or in this Note.

                                              6

<PAGE>

               IN WITNESS  WHEREOF,  the Owner Trustee,  on behalf of the Issuer
and not in its individual capacity, has caused this Note to be duly executed.

                          HOME LOAN TRUST 2002-HI2

                          By     WILMINGTON TRUST COMPANY, not in
                                 its individual capacity but solely as Owner
                                 Trustee
Dated: March [__], 2002
                          By
                                 -------------------------------------------
                                 Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

        This  is  one of the  Class  A-__-__  Notes  referred  to in the  within
mentioned Indenture.

                                   JPMORGAN CHASE BANK, not in its
                                   individual capacity but solely as Indenture
                                   Trustee

Dated: March [__], 2002

                            By
                                   -------------------------------------------
                                   Authorized Signatory

                              7

<PAGE>

                                          ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

                                (name and address of assignee)
the within Note and all rights thereunder,  and hereby  irrevocably  constitutes
and  appoints  ,  attorney,  to  transfer  said  Note  on  the  books  kept  for
registration thereof, with full power of substitution in the premises.

Dated:                                                              */
       -----------------         -----------------------------------
                                  Signature Guaranteed:

                                                                   / *
                                  ---------------------------------

_____________

1       NOTICE:  The signature to this  assignment must correspond with the name
        of the registered  owner as it appears on the face of the within Note in
        every  particular,   without  alteration,   enlargement  or  any  change
        whatever.  Such signature  must be guaranteed by an "eligible  guarantor
        institution"  meeting  the  requirements  of the Note  Registrar,  which
        requirements  include membership or participation in STAMP or such other
        "signature guarantee program" as may be determined by the Note Registrar
        in addition to, or in substitution  for,  STAMP,  all in accordance with
        the Securities Exchange Act of 1934, as amended.

                                              8

<PAGE>

                                   EXHIBIT A-2

                                  FORM OF NOTES

                                CLASS A-IO NOTES

               UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION  ("DTC"),  TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE  OF DTC), ANY
TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

               THIS NOTE DOES NOT  REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE DEPOSITOR,  THE MASTER SERVICER,  THE INDENTURE  TRUSTEE,  THE OWNER
TRUSTEE OR GMAC  MORTGAGE  GROUP,  INC. OR ANY OF THEIR  RESPECTIVE  AFFILIATES,
EXCEPT AS EXPRESSLY PROVIDED IN THE INDENTURE OR THE BASIC DOCUMENTS.

               THE HOLDER OF THIS NOTE IS DEEMED TO HAVE REPRESENTED THAT EITHER
(1) IT IS NOT A PLAN NOR IS IT  ACQUIRING  THIS NOTE WITH PLAN ASSETS OR (2) THE
ACQUISITION  OF THIS NOTE BY THE HOLDER  DOES NOT  CONSTITUTE  OR GIVE RISE TO A
PROHIBITED  TRANSACTION  UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE,
FOR WHICH NO STATUTORY, REGULATORY OR ADMINISTRATIVE EXEMPTION IS AVAILABLE.

                                              9

<PAGE>

                            HOME LOAN TRUST 2002-HI2
                              Home Loan-Backed Note

Registered                                      Notional Amount: $___________

Class A-IO

No. __                                          Percentage Interest: _____%

CUSIP No. ___________                           Note Rate: _____%

               Home Loan Trust  2002-HI2,  a business  trust duly  organized and
existing  under the laws of the State of  Delaware  (herein  referred  to as the
"Issuer"),  for  value  received,  hereby  promises  to  pay to  Cede  & Co.  or
registered  assigns,  the amount  payable on each Payment Date to the Class A-IO
Notes in an  amount  equal to the  Percentage  Interest  specified  above of the
aggregate  amount,  if any,  payable  from the  Payment  Account  in  respect of
interest on the Class A-IO Notes pursuant to Section 3.05 of the Indenture dated
as of March 26,  2002 (the  "Indenture")  between  the  Issuer,  as Issuer,  and
JPMorgan Chase Bank, as Indenture Trustee (the "Indenture Trustee"). Capitalized
terms used but not defined herein are defined in Appendix A of the Indenture.

               Interest  on the Class A-IO  Notes  will be paid  monthly on each
Payment  Date at the Note  Rate.  The Note Rate for the Class A-IO Notes will be
11.00% per annum for the April 2002 through March 2003 Payment Dates, 10.00% per
annum for the April 2003 through March 2004 Payment  Dates,  7.00% per annum for
the April 2004 through  September  2004  Payment  Dates,  and 0.00%  thereafter.
Interest  will be  computed on the basis of a 30-day  month and a 360-day  year.
Interest  on this Note  shall be paid in the  manner  specified  on the  reverse
hereof.

               Interest  on this Note is payable in such coin or currency of the
United  States of America as at the time of payment is legal  tender for payment
of public and private  debts.  All  payments  made by the Issuer with respect to
this Note shall be applied to interest  due and payable on this Note as provided
above.

               Reference  is made to the  further  provisions  of this  Note set
forth on the reverse  hereof,  which shall have the same effect as though  fully
set forth on the face of this Note.

               Unless the certificate of authentication hereon has been executed
by the Indenture Trustee whose name appears below by manual signature, this Note
shall not be  entitled  to any benefit  under the  Indenture  referred to on the
reverse hereof, or be valid or obligatory for any purpose. This Note is one of a
duly authorized issue of Notes of the Issuer, designated as its

               Home  Loan-Backed  Notes (herein called the "Notes"),  all issued
under the Indenture,  to which Indenture and all indentures supplemental thereto
reference  is  hereby  made  for  a  statement  of  the  respective  rights  and
obligations  thereunder of the Issuer,  the Indenture Trustee and the holders of
the Notes. The Notes are subject to all terms of the Indenture.

                                              10

<PAGE>

               The Notes are and will be  equally  and  ratably  secured  by the
collateral pledged as security therefor as provided in the Indenture.

               This Note is  entitled  to the  benefits  of an  irrevocable  and
unconditional  financial  guaranty  insurance  policy issued by Ambac  Assurance
Corporation.

               Interest  on this Note will be payable on each  Payment  Date for
the first 30 Payment  Dates,  commencing  on April 25, 2002, as described in the
Indenture.  "Payment Date" means the  twenty-fifth day of each month, or, if any
such date is not a Business Day, then the next Business Day.

               If an Event of Default  shall have  occurred  and be  continuing,
then the Indenture Trustee or the holders of Notes  representing not less than a
majority of the  aggregate  Note Balance (for which purpose the Class A-IO Notes
will be deemed to have a Note  Balance  equal to their  Notional  Amount) of all
Notes with the  consent  of the Credit  Enhancer,  or the  Credit  Enhancer  may
declare the Notes to be  immediately  due and payable in the manner  provided in
Section 5.02 of the Indenture.

               Payments of interest on this Note due and payable on each Payment
Date,  shall be made by check  mailed to the Person  whose  name  appears as the
Registered  Holder of this Note (or one or more  Predecessor  Notes) on the Note
Register  as of the close of  business  on each  Record  Date,  except that with
respect to Notes registered on the Record Date in the name of the nominee of the
Depository Agency (initially,  such nominee to be Cede & Co.),  payments will be
made by wire transfer in immediately  available funds to the account  designated
by such nominee.  Such checks shall be mailed to the Person entitled  thereto at
the  address  of such  Person  as it  appears  on the  Note  Register  as of the
applicable  Record  Date  without  requiring  that  this Note be  submitted  for
notation of payment.  If funds are expected to be available,  as provided in the
Indenture, for the last payment on this Class A-IO Note occurring on the Payment
Date in September 2004, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Registered Holder hereof as of
the Record Date  preceding  such Payment Date by notice mailed or transmitted by
facsimile  prior to such Payment Date, and the amount then due and payable shall
be payable  only upon  presentation  and  surrender  of this Note at the address
specified in such notice of final payment.

               As provided in the Indenture  and subject to certain  limitations
set forth  therein,  the  transfer  of this Note may be  registered  on the Note
Register  upon  surrender  of this  Note for  registration  of  transfer  at the
Corporate Trust Office, duly endorsed by, or accompanied by a written instrument
of transfer in form  satisfactory to the Indenture Trustee duly executed by, the
holder hereof or such holder's  attorney duly  authorized in writing,  with such
signature  guaranteed  by  an  "eligible  guarantor   institution"  meeting  the
requirements of the Note Registrar,  which  requirements  include  membership or
participation in the Securities  Transfer Agent's Medallion Program ("STAMP") or
such  other  "signature  guarantee  program"  as may be  determined  by the Note
Registrar in addition to, or in substitution  for, STAMP, all in accordance with
the Securities  Exchange Act of 1934, as amended,  and thereupon one or more new
Notes in authorized denominations and in the same aggregate notional amount will
be issued to the designated transferee or transferees. No service charge will be
charged for any  registration of transfer or exchange of this Note, but the Note
Registrar shall require payment of a sum sufficient to cover any tax or

                                              11

<PAGE>

governmental  charge that may be imposed in connection with any  registration of
transfer or exchange of this Note.

               Each holder or  Beneficial  Owner of a Note,  by  acceptance of a
Note, or, in the case of a Beneficial Owner of a Note, a beneficial  interest in
a Note,  covenants  and  agrees  that no  recourse  may be  taken,  directly  or
indirectly,  with respect to the  obligations of the Issuer,  the Owner Trustee,
the Seller,  the Master Servicer,  the Depositor or the Indenture Trustee on the
Notes or under the Indenture or any  certificate  or other writing  delivered in
connection therewith,  against (i) the Indenture Trustee or the Owner Trustee in
its individual  capacity,  (ii) any owner of a beneficial interest in the Issuer
or (iii) any partner, owner,  beneficiary,  agent, officer, director or employee
of the Indenture  Trustee or the Owner Trustee in its individual  capacity,  any
holder  of a  beneficial  interest  in the  Issuer,  the  Owner  Trustee  or the
Indenture  Trustee or of any successor or assign of the Indenture Trustee or the
Owner  Trustee in its  individual  capacity,  except as any such Person may have
expressly agreed and except that any such partner, owner or beneficiary shall be
fully  liable,  to  the  extent  provided  by  applicable  law  for  any  unpaid
consideration  for  stock,  unpaid  capital  contribution  or failure to pay any
installment or call owing to such entity.

               Each holder or  Beneficial  Owner of a Note,  by  acceptance of a
Note or, in the case of a Beneficial Owner of a Note, a beneficial interest in a
Note,  covenants and agrees by accepting the benefits of the Indenture that such
holder or Beneficial Owner of a Note will not at any time institute  against the
Depositor,  the Seller,  the Master Servicer,  GMAC Mortgage Group,  Inc. or the
Issuer, or join in any institution against the Depositor, the Seller, the Master
Servicer,   GMAC  Mortgage  Group,  Inc.  or  the  Issuer  of,  any  bankruptcy,
reorganization,  arrangement,  insolvency or liquidation  proceedings  under any
United States federal or state  bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

               The Issuer has entered into the Indenture and this Note is issued
with the intention  that, for federal,  state and local income,  single business
and  franchise  tax  purposes,  the Notes will  qualify as  indebtedness  of the
Issuer.  Each holder of a Note,  by  acceptance  of a Note (and each  Beneficial
Owner of a Note by  acceptance  of a beneficial  interest in a Note),  agrees to
treat the Notes  for  federal,  state and  local  income,  single  business  and
franchise tax purposes as indebtedness of the Issuer.

               Prior to the due presentment for registration of transfer of this
Note,  the  Issuer,  the  Indenture  Trustee  and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note is registered (as
of the day of  determination or as of such other date as may be specified in the
Indenture)  as the owner  hereof for all  purposes,  whether or not this Note be
overdue,  and none of the Issuer,  the Indenture Trustee or any such agent shall
be affected by notice to the contrary.

               The  Indenture  permits,   with  certain  exceptions  as  therein
provided,  the  amendment  thereof  and  the  modification  of  the  rights  and
obligations  of the  Issuer  and the  Indenture  Trustee  and the  rights of the
holders  of the Notes  under the  Indenture  at any time by the  Issuer  and the
Indenture  Trustee  with the  consent  of the  holders of Notes  representing  a
majority of the  aggregate  Note Balance (for which purpose the Class A-IO Notes
will be deemed to have a Note  Balance  equal to their  Notional  Amount) of all
Notes at the time Outstanding and the Credit Enhancer and with prior

                                              12

<PAGE>

notice to the Rating Agencies. The Indenture also contains provisions permitting
the holders of Notes  representing  specified  percentages of the aggregate Note
Balance  of all  Notes,  on behalf of the  holders  of all the  Notes,  to waive
compliance  by the Issuer with certain  provisions  of the Indenture and certain
past defaults  under the Indenture and their  consequences.  Any such consent or
waiver by the holder of this Note (or any one of more  Predecessor  Notes) shall
be conclusive  and binding upon such holder and upon all future  holders of this
Note and of any Note  issued  upon the  registration  of  transfer  hereof or in
exchange  hereof or in lieu hereof  whether or not  notation of such  consent or
waiver is made upon this Note.  The  Indenture  also  permits the Issuer and the
Indenture  Trustee to amend or waive certain terms and  conditions  set forth in
the Indenture  without the consent of holders of the Notes issued thereunder but
with prior notice to the Rating Agencies and the Credit Enhancer.

               The term  "Issuer" as used in this Note includes any successor or
the Issuer under the Indenture.

               The  Issuer  is  permitted  by  the   Indenture,   under  certain
circumstances,  to merge or consolidate,  subject to the rights of the Indenture
Trustee and the holders of Notes under the Indenture.

               The Notes are issuable only in registered  form in  denominations
as provided in the Indenture, subject to certain limitations therein set forth.

               This Note and the Indenture shall be construed in accordance with
the laws of the State of New York,  without  reference  to its  conflict  of law
provisions and the obligations, rights and remedies of the parties hereunder and
thereunder shall be determined in accordance with such laws.

               No  reference  herein to the  Indenture  and no provision of this
Note or of the Indenture  shall alter or impair,  the  obligation of the Issuer,
which is absolute  and  unconditional,  to pay the  interest on this Note at the
times, place and rate, and in the coin or currency herein prescribed.

               Anything  herein  to  the  contrary  notwithstanding,  except  as
expressly  provided in the Basic Documents,  none of Wilmington Trust Company in
its individual capacity,  JPMorgan Chase Bank, in its individual  capacity,  any
owner  of a  beneficial  interest  in the  Issuer,  or any of  their  respective
partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them
for,  the  payment of interest  on this Note or  performance  of, or omission to
perform, any of the covenants,  obligations or indemnifications contained in the
Indenture.  The holder of this Note by its acceptance hereof agrees that, except
as expressly provided in the Basic Documents, in the case of an Event of Default
under the Indenture, the holder shall have no claim against any of the foregoing
for any deficiency,  loss or claim therefrom;  provided,  however,  that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the  assets  of  the  Issuer  for  any  and  all  liabilities,  obligations  and
undertakings contained in the Indenture or in this Note.

                                              13

<PAGE>

               IN WITNESS  WHEREOF,  the Owner Trustee,  on behalf of the Issuer
and not in its individual capacity, has caused this Note to be duly executed.

                             HOME LOAN TRUST 2002-HI2

                             By     WILMINGTON TRUST COMPANY, not in
                                    its individual capacity but solely as Owner
                                    Trustee

Dated: March [__], 2002
                             By
                                    -------------------------------------------
                                    Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This  is one  of the  Class  A-IO  Notes  referred  to in the  within  mentioned
Indenture.

                                   JPMORGAN CHASE BANK, not in its
                                   individual capacity but solely as Indenture
                                   Trustee

Dated: March [__], 2002

                            By
                                   -------------------------------------------
                                   Authorized Signatory

                              14

<PAGE>

                                          ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto

(name and address of assignee)  the within Note and all rights  thereunder,  and
hereby  irrevocably  constitutes  and appoints  _______________  , attorney,  to
transfer said Note on the books kept for registration  thereof,  with full power
of substitution in the premises.

Dated:                                                                    */
       ----------------------        -------------------------------------
                                       Signature Guaranteed:

                                     _____________________________________ //

_______________

1       NOTICE:  The signature to this  assignment must correspond with the name
        of the registered  owner as it appears on the face of the within Note in
        every  particular,   without  alteration,   enlargement  or  any  change
        whatever.  Such signature  must be guaranteed by an "eligible  guarantor
        institution"  meeting  the  requirements  of the Note  Registrar,  which
        requirements  include membership or participation in STAMP or such other
        "signature guarantee program" as may be determined by the Note Registrar
        in addition to, or in substitution  for,  STAMP,  all in accordance with
        the Securities Exchange Act of 1934, as amended.

                                              15

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

     Administrative  Fees:  The Servicing Fees and the fees payable to the Owner
Trustee and the Indenture Trustee.

               Adjusted Issue Price: Upon the occurrence of an Event of Default,
or upon the  occurrence of an Optional  Redemption (i) with respect to the first
29 Payment Dates, as defined in Code Section 1272(a)(4) and (ii) with respect to
all Payment Dates thereafter, zero.

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

               Appraised  Value:  For any  Home  Loan the  value of the  related
Mortgaged Property  determined by the appraisal,  sales price for such Mortgaged
Property or alternative  valuation  method used in the  origination of such Home
Loan (which may have been  obtained at an earlier  time);  provided that if such
Home Loan was originated  simultaneously with or not more than 12 months after a
senior lien on the related Mortgaged Property which was originated in a purchase
or cash-out  refinance  transaction,  the appraised value shall be the lesser of
the appraised  value at the  origination  of the senior lien and the sales price
for such Mortgaged Property.

               Assignment  of  Mortgage:   With  respect  to  any  Mortgage,  an
assignment,  notice of transfer or equivalent  instrument,  in recordable  form,
sufficient  under the laws of the  jurisdiction  in which the related  Mortgaged
Property  is located  to reflect  the sale of the  Mortgage,  which  assignment,
notice of transfer or  equivalent  instrument  may be in the form of one or more
blanket assignments  covering Mortgages secured by Mortgaged  Properties located
in the same jurisdiction.

               Authorized  Officer:  With respect to the Issuer,  any officer of
the Owner  Trustee  who is  authorized  to act for the Owner  Trustee in matters
relating to the Issuer and who is identified on the list of Authorized  Officers
delivered by the Owner Trustee to the Indenture  Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter).

               Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

               Basic  Documents:  The Trust Agreement,  the Indenture,  the Home
Loan  Purchase  Agreement,  the  Insurance  Agreement,  the  Credit  Enhancement
Instrument,  the  Servicing  Agreement,  the  Custodial  Agreement and the other
documents and certificates delivered in connection with any of the above.

     Beneficial  Owner:  With  respect  to  any  Note,  the  Person  who  is the
beneficial  owner of such Note as reflected on the books of the Depository or on
the books of a Person maintaining an

                                             -1-

<PAGE>

account with such Depository (directly as a Depository Participant or indirectly
through  a  Depository  Participant,  in  accordance  with  the  rules  of  such
Depository).

               Book-Entry Custodian: The custodian appointed pursuant to Section
4.06 of the Indenture.

               Book-Entry Notes:  Beneficial  interests in the Notes,  ownership
and  transfers of which shall be made through book entries by the  Depository as
described in Section 4.06 of the Indenture.

               Business  Day:  Any day other than (i) a Saturday  or a Sunday or
(ii) a day on which banking institutions in the States of New York,  California,
Texas, Minnesota, Pennsylvania,  Illinois or Delaware are required or authorized
by law to be closed.

     Business  Trust  Statute:  Chapter 38 of Title 12 of the Delaware  Code, 12
Del. Code ss.ss.3801 et seq., as the same may be amended from time to time.

               Calendar Quarter:  A Calendar Quarter shall consist of one of the
following  time periods in any given year:  January 1 through  March 31, April 1
through June 30, July 1 though September 30, and October 1 through December 31.

               Certificate Distribution Account: The account or accounts created
and maintained by the  Certificate  Paying Agent pursuant to Section  3.10(c) of
the Trust Agreement. The Certificate Paying Agent will make all distributions on
the Certificates from money on deposit in the Certificate  Distribution Account.
The Certificate Distribution Account shall be an Eligible Account.

               Certificate  Distribution  Amount:  The  amount  payable  to  the
Certificate Paying Agent under Section  3.05(a)(ix) of the Indenture for payment
to the Certificates under the Trust Agreement.

     Certificate  Paying  Agent:  The meaning  specified  in Section 3.10 of the
Trust Agreement.

               Certificate Percentage Interest:  With respect to any Certificate
and any date of determination,  the percentage interest as stated on the face of
such  Certificate,  which  percentage  may be  recalculated  in accordance  with
Section 3.03 of the Trust Agreement.

               Certificate  Principal  Balance:  As of any  Payment  Date,  with
respect to any Certificate;  an amount equal to the then applicable  Certificate
Percentage  Interest of such Certificate  multiplied by the Outstanding  Reserve
Amount immediately prior to such Payment Date.

     Certificate Register:  The register maintained by the Certificate Registrar
in which  the  Certificate  Registrar  shall  provide  for the  registration  of
Certificates and of transfers and exchanges of Certificates.

     Certificate Registrar: Initially, the Indenture Trustee, in its capacity as
Certificate  Registrar,  or any  successor  to the  Indenture  Trustee  in  such
capacity.

                                             -2-

<PAGE>

               Certificate  of Trust:  The  Certificate  of Trust  filed for the
Trust pursuant to Section  3810(a) of the Business Trust Statute,  including all
amendments and restatements.

               Certificateholder:  The  Person in whose  name a  Certificate  is
registered in the Certificate  Register except that, any Certificate  registered
in the name of the Issuer,  the Owner  Trustee or the  Indenture  Trustee or any
Affiliate  of any  of  them  shall  be  deemed  not to be  outstanding  and  the
registered  holder will not be  considered a  Certificateholder  or a holder for
purposes  of giving  any  request,  demand,  authorization,  direction,  notice,
consent or waiver under the Indenture or the Trust  Agreement  provided that, in
determining  whether  the  Indenture  Trustee  or the  Owner  Trustee  shall  be
protected in relying upon any such request,  demand,  authorization,  direction,
notice,  consent or waiver,  only Certificates that the Indenture Trustee or the
Owner  Trustee  knows  to  be  so  owned  shall  be so  disregarded.  Owners  of
Certificates  that have been pledged in good faith may be regarded as Holders if
the pledgee  establishes  to the  satisfaction  of the Indenture  Trustee or the
Owner Trustee, as the case may be, the pledgee's right so to act with respect to
such Certificates and that the pledgee is not the Issuer, any other obligor upon
the Certificates or any Affiliate of any of the foregoing Persons.

     Certificates:  The  Certificates  in  substantially  the form set  forth in
Exhibit A to the Trust Agreement.

     Class: Collectively, all of the Notes bearing the same designation.

     Closing Date: March 26, 2002.

     Code:  The  Internal  Revenue Code of 1986,  as amended,  and the rules and
regulations promulgated thereunder.

     Collateral: The meaning specified in the Granting Clause of the Indenture.

     Collection  Period:  With respect to any Payment Date,  the calendar  month
immediately preceding the month of such Payment Date.

               Combined Loan-to-Value Ratio: With respect to each Home Loan, the
ratio,  expressed as a percentage,  of (i) the sum of (A) the original principal
balance  of such  Home  Loan,  and (B) any  outstanding  principal  balance,  at
origination of such Home Loan, of all other mortgage loans,  if any,  secured by
senior or  subordinate  liens on the  related  Mortgaged  Property,  to (ii) the
Appraised Value, or, if permitted by the Program Guide, a statistical  valuation
or the Stated Value.

               Corporate  Trust Office:  With respect to the Indenture  Trustee,
Certificate Registrar,  Certificate Paying Agent and Paying Agent, the principal
corporate  trust office of the Indenture  Trustee and Note Registrar at which at
any particular  time its corporate trust business shall be  administered,  which
office at the date of the  execution of this  instrument  is located at 450 West
33rd Street,  14th Floor, New York, New York 10001,  Attention:  Capital Markets
Fiduciary  Services.  With  th  respect  to the  Owner  Trustee,  the  principal
corporate  trust office of the Owner Trustee at which at any particular time its
corporate trust business shall be administered, which office at the

                                             -3-

<PAGE>

date of the execution of this Trust Agreement is located at Rodney Square North,
1100 North Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust
Administration.

               Credit  Enhancement Draw Amount:  (1) With respect to any Payment
Date, an amount,  if any, equal to the sum of (w) the excess, if any, of (A) the
aggregate  amount of accrued  interest on the Notes at the respective Note Rates
on such Payment Date over (B)(i) the amount on deposit in the Payment Account on
such  Payment  Date,  less  (ii) an  amount  equal to the  Principal  Collection
Distribution  Amount,  if any, for such Payment Date, (x) any  Liquidation  Loss
Amount (other than any Excess Loss Amount) for such Payment Date,  not currently
covered  by a  Liquidation  Loss  Distribution  Amount  or a  reduction  in  the
Outstanding Reserve Amount, and (y) any Excess Loss Amount, and (2) with respect
to the Final Insured  Payment Date,  the amount by which the Note Balance of the
Notes plus any amount  determined  pursuant  to clause  (1) hereof  exceeds  the
payments  otherwise  available  to be made to the  Holders  thereof on the Final
Insured  Payment Date. The Credit  Enhancement  Draw Amount for any Payment Date
shall be reduced by the amount of any  payments  made to the Trust  Estate  with
respect  to that  date  from  the  Limited  Reimbursement  Agreement.  A  Credit
Enhancement  Draw Amount  shall not include the Adjusted  Issue  Price,  if any,
payable  to the  Holders  of the Class  A-IO  Notes if the Class  A-IO Notes are
redeemed  pursuant  to  Section  8.08 of the  Servicing  Agreement  prior to the
Payment Date in September 2004.

               Credit Enhancement Instrument: The Certificate Guaranty Insurance
Policy  number  AB5401BE,  dated as of the  Closing  Date,  issued by the Credit
Enhancer to the Indenture Trustee.

     Credit Enhancer: Ambac Assurance Corporation,  a Wisconsin-domiciled  stock
insurance corporation or any successor thereto.

     Credit  Enhancer  Default:  If the Credit  Enhancer fails to make a payment
required under the Credit Enhancement Instrument in accordance with its terms.

               Credit  Scores:  The  figure  assigned  to a Home  Loan  that  is
designed to assess the Mortgagor's  credit history which is obtained from credit
reports provided by various credit reporting  organizations and obtained by many
lenders in connection  with Home Loan  applications to help assess a Mortgagor's
creditworthiness.

               Custodial Account: The account or accounts created and maintained
by the Master Servicer  pursuant to Section 3.02(b) of the Servicing  Agreement,
in which the Master  Servicer  shall  deposit or cause to be  deposited  certain
amounts in respect of the Home Loans.

               Custodial Agreement: Any Custodial Agreement among the Custodian,
the  Indenture  Trustee,  the  Issuer and the Master  Servicer  relating  to the
custody of the Home Loans and the Related Documents.

     Custodian:  Wells Fargo Bank Minnesota,  N.A., a national association,  and
its successors and assigns.

               Cut-off Date: March 1, 2002.

                                             -4-

<PAGE>

               Cut-off Date Loan  Balance:  With  respect to any Home Loan,  the
unpaid principal balance thereof as of the close of business on the Business Day
immediately prior to the Cut-off Date.

     Default:  Any  occurrence  which is or with  notice or the lapse of time or
both would become an Event of Default.

               Deficient  Valuation:  With respect to any Home Loan, a valuation
by a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding  indebtedness under the Home Loan, or any reduction in
the amount of principal to be paid in connection with any scheduled payment that
constitutes a permanent  forgiveness of principal,  which valuation or reduction
results from a proceeding under the Bankruptcy Code.

     Definitive Notes: The meaning specified in Section 4.06 of the Indenture.

     Deleted  Loan:  A Home Loan  replaced  or to be  replaced  with an Eligible
Substitute Loan.

               Delinquent:  As used herein,  a Home Loan is considered to be "30
to 59 days" or "30 or more days"  delinquent  when a payment due on any due date
remains  unpaid as of the close of  business on the next  following  monthly due
date.  Since  the  determination  as to  whether a Home Loan  falls  into  these
categories  is made as of the close of business on the last business day of each
month,  a Home Loan with a payment due on July 1 that remained  unpaid as of the
close of business on July 31 would still be considered current as of July 31. If
that payment  remained unpaid as of the close of business on August 31, the Home
Loan would then be considered 30-59 days delinquent.  Delinquency information as
of the Cut-off  Date is  determined  and prepared as of the close of business on
the last business day immediately prior to the Cut-off Date.

     Depositor:  Residential  Funding  Mortgage  Securities II, Inc., a Delaware
corporation, or its successor in interest.

               Depository or Depository  Agency: The Depository Trust Company or
a  successor  appointed  by the  Indenture  Trustee  with  the  approval  of the
Depositor.  Any successor to the Depository shall be an organization  registered
as a  "clearing  agency"  pursuant to Section  17A of the  Exchange  Act and the
regulations of the Securities and Exchange Commission thereunder.

     Depository  Participant:  A  Person  for  whom,  from  time  to  time,  the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

               Determination  Date:  With respect to any Payment Date,  the 20th
day of the  month in which  such  Payment  Date  occurs  or if such day is not a
Business Day, the next succeeding Business Day.

               Dissolution  Draw:  Following  an  Event of  Liquidation,  on the
related  Dissolution  Payment Date, the amount, if any, by which the proceeds of
the sale,  liquidation or other  disposition of the assets of the Owner Trust in
connection with the liquidation of the Trust Estate which are

                                             -5-

<PAGE>

available for distribution to the Securityholders is less than the sum of (1) an
amount equal to the aggregate of all accrued and unpaid interest on the Notes at
the  respective  Note  Rates  through  such  Payment  Date  and (2)  100% of the
aggregate  Note  Balance  of the  Notes  outstanding  immediately  prior to such
Dissolution Payment Date.

               Dissolution Payment Date: Following an Event of Liquidation,  the
Business Day following  the date on which the proceeds of the sale,  liquidation
or other  disposition  of the assets of the Owner Trust in  connection  with the
liquidation of the Trust Estate are paid to the Securityholders.

     Due Date: The date on which the Monthly Payment on the related Home Loan is
due in accordance with the terms of the related Mortgage Note.

               Eligible  Account:  An account that is any of the following:  (i)
maintained  with a depository  institution  the short-term  debt  obligations of
which have been  rated by each  Rating  Agency in its  highest  rating  category
available,  or (ii) an account or accounts in a depository  institution in which
such accounts are fully insured to the limits established by the FDIC,  provided
that any deposits not so insured shall, to the extent  acceptable to each Rating
Agency,  as evidenced in writing,  be  maintained  such that (as evidenced by an
Opinion of Counsel  delivered to the Indenture  Trustee and each Rating  Agency)
the Indenture  Trustee have a claim with respect to the funds in such account or
a perfected  first  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  with which
such  account  is  maintained,  or (iii) in the case of the  Custodial  Account,
either  (A) a trust  account  or  accounts  maintained  at the  corporate  trust
department of the Indenture Trustee or (B) an account or accounts  maintained at
the corporate trust  department of the Indenture  Trustee,  as long as its short
term debt obligations are rated P-1 by Moody's and A-1+ by Standard & Poor's (or
the  equivalent)  or  better  by each  Rating  Agency  and its  long  term  debt
obligations  are  rated A2 by  Moody's  and AA- by  Standard  &  Poor's  (or the
equivalent)  or  better,  by each  Rating  Agency,  or  (iv) in the  case of the
Custodial  Account  and  the  Payment  Account,  a  trust  account  or  accounts
maintained in the corporate trust division of the Indenture  Trustee,  or (v) an
account or accounts of a depository institution acceptable to each Rating Agency
(as  evidenced in writing by each Rating  Agency that use of any such account as
the Custodial Account or the Payment Account will not reduce the rating assigned
to any of the Securities by such Rating Agency (if determined  without regard to
the Credit Enhancement Instrument) below the lower of the then-current rating or
the rating  assigned to such  Securities  (if  determined  without regard to the
Credit Enhancement Instrument) as of the Closing Date by such Rating Agency).

               Eligible  Substitute  Loan: A Home Loan substituted by the Seller
for a Deleted Loan which must, on the date of such substitution, as confirmed in
an  Officers'  Certificate  delivered  to the  Indenture  Trustee,  (i)  have an
outstanding  principal balance,  after deduction of the principal portion of the
monthly  payment  due  in the  month  of  substitution  (or  in  the  case  of a
substitution  of more  than  one Home  Loan for a  Deleted  Loan,  an  aggregate
outstanding  principal  balance,  after  such  deduction),  not in excess of the
outstanding  principal  balance of the Deleted Loan (the amount of any shortfall
to be  deposited  by the  Seller  in the  Custodial  Account  in  the  month  of
substitution);  (ii) comply with each  representation  and warranty set forth in
clauses (iii) through (xxxv) of Section

                                             -6-

<PAGE>

3.1(b) of the Home Loan Purchase  Agreement other than clauses  (viii),  (xiii),
(xiv),  (xxiv),  (xxv),  (xxvi)(B),  and (xxvii) as of the date of substitution;
(iii)  have a Loan Rate no lower than and not more than 1% in excess of the Loan
Rate of such Deleted Loan; (iv) have a Combined  Loan-to-Value Ratio at the time
of  substitution  no  higher  than  that  of the  Deleted  Loan  at the  time of
substitution;  (v) have, at the time of substitution, a remaining term to stated
maturity  not  greater  than (and not more than one year less  than) that of the
Deleted  Loan;  (vi) be  ineligible  for  inclusion  in a real  estate  mortgage
investment conduit ("REMIC") (a "REMIC Ineligible Loan") if the Deleted Loan was
a REMIC Ineligible Loan (because (a) the value of the real property securing the
Deleted  Loan was not at least  equal to eighty  percent of the  adjusted  issue
price of such loan at the time of  origination,  calculated by  subtracting  the
amount of any liens that are senior to such Home Loan and a proportionate amount
of any lien of equal  priority  from the value of such property when the Deleted
Loan was  originated  and (b)  substantially  all of the proceeds of the Deleted
Loan were not used to  acquire,  improve  or  protect  an  interest  in the real
property  securing  such loan and such real  property was the only  security for
such Deleted Loan); and (vii) not be 30 or more days delinquent.

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

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

                      (i) a default in the  payment of any  interest on any Note
        when the same becomes due and payable,  and such default shall  continue
        for a period of five days; or

                      (ii) a default in the payment of the  principal  of or any
        installment  of the  principal of any Note when the same becomes due and
        payable, and such default shall continue for a period of five days; or

                      (iii)  there  occurs  a  default  in  the   observance  or
        performance  of any  covenant  or  agreement  of the Issuer  made in the
        Indenture,  or any  representation or warranty of the Issuer made in the
        Indenture or in any  certificate  or other  writing  delivered  pursuant
        hereto or in connection  herewith  proving to have been incorrect in any
        material respect as of the time when the same shall have been made which
        has a material adverse effect on Securityholders, and such default shall
        continue or not be cured, or the circumstance or condition in respect of
        which such  representation or warranty was incorrect shall not have been
        eliminated or otherwise cured, for a period of 30 days after there shall
        have been given,  by registered or certified  mail, to the Issuer by the
        Indenture  Trustee  or to the Issuer  and the  Indenture  Trustee by the
        Holders  of at least 25% of the  outstanding  Note  Balance  (for  which
        purpose the Class A-IO Notes will be deemed to have a Note Balance equal
        to their Notional Amount) of the Notes or the Credit Enhancer, a written
        notice  specifying such default or incorrect  representation or warranty
        and requiring it to be remedied and stating that such notice is a notice
        of default hereunder; or

                      (iv)  there  occurs  the  filing  of a decree or order for
        relief by a court having  jurisdiction in the premises in respect of the
        Issuer or any substantial part of the Trust Estate

                                             -7-

<PAGE>

        in an involuntary case under any applicable federal or state bankruptcy,
        insolvency  or  other  similar  law  now  or  hereafter  in  effect,  or
        appointing  a  receiver,   liquidator,   assignee,  custodian,  trustee,
        sequestrator  or similar  official of the Issuer or for any  substantial
        part of the Trust Estate,  or ordering the  winding-up or liquidation of
        the Issuer's affairs, and such decree or order shall remain unstayed and
        in effect for a period of 60 consecutive days; or

                      (v)  there  occurs  the  commencement  by the  Issuer of a
        voluntary  case  under  any  applicable  federal  or  state  bankruptcy,
        insolvency  or other  similar  law now or  hereafter  in effect,  or the
        consent  by the  Issuer  to the  entry  of an  order  for  relief  in an
        involuntary case under any such law, or the consent by the Issuer to the
        appointment or taking  possession by a receiver,  liquidator,  assignee,
        custodian,  trustee,  sequestrator or similar  official of the Issuer or
        for any  substantial  part of the  assets  of the Trust  Estate,  or the
        making by the  Issuer  of any  general  assignment  for the  benefit  of
        creditors,  or the failure by the Issuer  generally  to pay its debts as
        such  debts  become  due,  or the  taking of any action by the Issuer in
        furtherance of any of the foregoing.

               Event of  Liquidation:  Following  the  occurrence of an Event of
Default under the Indenture,  the  determination  by the Indenture  Trustee,  as
evidenced by a written notice provided to the Owner Trustee, the Depositor,  the
Issuer and the Credit  Enhancer,  that all  conditions  precedent to the sale or
other  liquidation of the Trust Estate pursuant to Section 5.04 of the Indenture
have been satisfied.

     Event of Servicer Termination:  With respect to the Servicing Agreement,  a
Servicing Default as defined in Section 7.01 of the Servicing Agreement.

               Excess Loss Amount: On any Payment Date, the "Excess Loss Amount"
will be equal to the sum of (i) any  Liquidation  Loss  Amounts  (other  than as
described in clauses  (ii)-(iv) below) for the related  Collection Period which,
when added to the aggregate of such  Liquidation  Loss Amounts for all preceding
Collection Periods exceed $104,000,792, (ii) any Special Hazard Losses in excess
of the Special Hazard Amount, (iii) any Fraud Losses in excess of the Fraud Loss
Amount,  and (iv) any losses  incurred on the Home Loans  caused by or resulting
from an Extraordinary Event.

     Exchange  Act: The  Securities  Exchange Act of 1934,  as amended,  and the
rules and regulations promulgated thereunder.

     Expenses: The meaning specified in Section 7.02 of the Trust Agreement.

               Extraordinary Event: Any of the following conditions with respect
to a Mortgaged Property or Home Loan causing or resulting in a loss which causes
the liquidation of such Home Loan:

               (b)  losses  that  are of a type  that  would be  covered  by the
        fidelity bond and the errors and omissions  insurance policy required to
        be maintained  pursuant to Section 3.13 of the  Servicing  Agreement but
        are in excess of the coverage maintained thereunder;

                                             -8-

<PAGE>

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

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

                    1.  by any  government  or  sovereign  power,  de jure or de
               facto, or by any authority  maintaining or using military,  naval
               or air forces; or

                    2. by military, naval or air forces; or

                    3. by an agent of any such government,  power,  authority or
               forces;

               (e) any weapon of war  employing  atomic  fission or  radioactive
          force whether in time of peace or war; or

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

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

     FHLMC:  The  Federal  Home  Loan  Mortgage  Corporation,  or any  successor
thereto.

     Final Insured Payment Date: The Payment Date in March 2032.

     FNMA: The Federal National Mortgage Association, or any successor thereto.

               Foreclosure  Profit:  With respect to a Liquidated Home Loan, the
excess, if any, of (x) Net Liquidation Proceeds over (y) the sum of (a) the Loan
Balance  of the  related  Home  Loan  immediately  prior to the date it became a
Liquidated Home Loan, less any Net Liquidation Proceeds previously received with
respect  to such Home Loan and  applied  as a  recovery  of  principal,  and (b)
accrued  and  unpaid  interest  on the  related  Home  Loan at the Net Loan Rate
through the date of receipt of the proceeds.

               Fraud  Loss  Amount:  As of any date of  determination  after the
Cut-off  Date,  the  Fraud  Loss  Amount  shall  equal  (X)  prior to the  first
anniversary  of the Cut-off  Date an amount equal to 5% of the Cut-off Date Loan
Balance  minus the aggregate of any  Liquidation  Loss Amounts on the Home Loans
due to Fraud Losses up to such date of determination;  (Y) from the first to the
second anniversary of the Cut-off Date, an amount equal to (1) the lesser of (a)
the Fraud Loss Amount as of the most recent  anniversary of the Cut-off Date and
(b) 3% of the Pool  Balance of the Home Loans as of the most recent  anniversary
of the Cut-off Date minus (2) the aggregate of any  Liquidation  Loss Amounts on
the Home Loans due to Fraud Losses since the most recent

                                             -9-

<PAGE>

anniversary of the Cut-off Date up to such date of  determination;  and (Z) from
the second to the fifth  anniversary of the Cut-off Date, an amount equal to (1)
the lesser of (a) the Fraud Loss Amount as of the most recent anniversary of the
Cut-off Date and (b) 2% of the Pool Balance as of the most recent anniversary of
the Cut-off Date minus (2) the aggregate of any Liquidation  Loss Amounts on the
Home Loans due to Fraud Losses since the most recent  anniversary of the Cut-off
Date up to such date of determination. On and after the fifth anniversary of the
Cut-off Date the Fraud Loss Amount shall be zero.  The initial Fraud Loss Amount
shall be equal to $16,250,124.

     Fraud  Losses:  Losses  on Home  Loans as to which  there  was fraud in the
origination of such Home Loan.

               Grant: Pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer,  create, and grant a lien upon and a security interest
in and right of set-off against,  deposit,  set over and confirm pursuant to the
Indenture.  A Grant of the  Collateral  or of any other  agreement or instrument
shall include all rights,  powers and options (but none of the  obligations)  of
the granting party  thereunder,  including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such  collateral or other  agreement or  instrument  and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other  agreements,  to exercise  all rights and  options,  to
bring proceedings in the name of the granting party or otherwise,  and generally
to do and receive  anything that the granting  party is or may be entitled to do
or receive thereunder or with respect thereto.

     Group I Loans: The Home Loans designated on the Home Loan Schedule as Group
I Loans.

     Group II Loans:  The Home Loans  designated  on the Home Loan  Schedule  as
Group II Loans.

     Holder: Any of the Noteholders or Certificateholders.

               Home  Loans:  At any time,  the Home Loans that have been sold by
the Seller under the Home Loan  Purchase  Agreement,  together  with the Related
Documents, and that remain subject to the terms thereof.

               Home Loan Purchase  Agreement:  The Home Loan Purchase Agreement,
between the Seller, as seller, and the Depositor, as purchaser,  with respect to
the Home Loans, dated as of the Cut-off Date.

               Home Loan Schedule:  The initial schedule of Home Loans as of the
Cut-off  Date set forth in Exhibit  A-1 (with  respect to the Group I Loans) and
Exhibit  A-2 (with  respect to the Group II Loans) of the  Servicing  Agreement,
which  schedule sets forth as to each Home Loan in each Loan Group,  among other
things:

               (i)    the Home Loan identifying number ("RFC LOAN #");

               (ii)   the state, city and zip code of the Mortgaged Property;

                                      -10-

<PAGE>

               (iii)  the maturity of the Mortgage Note ("MATURITY DATE");

               (iv)   the Loan Rate ("CUR RATE");

               (v)    the Principal Balance at origination ("ORG AMT");

     (vi) the type of property securing the Mortgage Note ("PROPERTY TYPE");

               (vii)  the appraised value ("APPRSL");

     (viii) the initial  scheduled  monthly  payment of  principal,  if any, and
interest ("ORIGINAL P & I");

               (ix)   the Cut-off Date Loan Balance ("CUT-OFF BAL");

               (x)    the Combined Loan-to-Value Ratio at origination ("CLTV");

               (xi)   the date of the Mortgage Note ("NOTE DATE");

     (xii) the original term to maturity of the Home Loan ("ORIGINAL TERM");

               (xiii) under the column  "OCCP CODE," a code  indicating  whether
                      the  Home  Loan  is  secured  by  a   non-owner   occupied
                      residence;

     (xiv) the Principal Balance of any Home Loan senior thereto ("SR BAL");

               (xv)   the Credit Score ("CR SCORE");

               (xvi)  the debt to income ratio ("DTI");

               (xvii) product code ("PRODUCT CODE");

               (xviii)loan purpose ("PURPOSE");

               (xix)  the lien position of the related Mortgage ("LIEN");

               (xx)   the Subservicer loan number (SERVICER LOAN #); and

               (xxi)  the remaining term of the Home Loan (REMAINING TERM).

Such schedule may consist of multiple reports that collectively set forth all of
the information required.

     Indemnified  Party:  The  meaning  specified  in Section  7.02 of the Trust
Agreement.

                                      -11-

<PAGE>

     Indenture:  The indenture dated as of March 26, 2002 between the Issuer, as
debtor, and the Indenture Trustee, as indenture trustee.

     Indenture  Trustee:  JPMorgan Chase Bank, and its successors and assigns or
any  successor  indenture  trustee  appointed  pursuant  to  the  terms  of  the
Indenture.

               Independent:  When used with respect to any specified Person, the
Person (i) is in fact independent of the Issuer, any other obligor on the Notes,
the Seller,  the Issuer, the Depositor and any Affiliate of any of the foregoing
Persons,  (ii)  does not have any  direct  financial  or any  material  indirect
financial  interest  in the Issuer,  any such other  obligor,  the  Seller,  the
Issuer, the Depositor or any Affiliate of any of the foregoing Persons and (iii)
is not  connected  with the Issuer,  any such other  obligor,  the  Seller,  the
Issuer,  the Depositor or any  Affiliate of any of the  foregoing  Persons as an
officer, employee, promoter,  underwriter,  trustee, partner, director or person
performing similar functions.

               Independent Certificate: A certificate or opinion to be delivered
to the  Indenture  Trustee under the  circumstances  described in, and otherwise
complying  with, the applicable  requirements of Section 10.01 of the Indenture,
made by an  Independent  appraiser or other expert  appointed by an Issuer Order
and approved by the Indenture  Trustee in the exercise of reasonable  care,  and
such opinion or certificate  shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

               Initial Certificates:  The Home Loan-Backed Certificates,  Series
2002-HI1,  issued on the Closing  Date,  each  evidencing  undivided  beneficial
interests in the Issuer and executed by the Owner Trustee.

               Initial  Note  Balance:  With  respect to the Class A-I-1  Notes,
$43,101,000, with respect to the Class A-I-2 Notes, $32,786,000, with respect to
the Class A-I-3  Notes,  $32,808,000,  with  respect to the Class  A-I-4  Notes,
$21,193,000, with respect to the Class A-I-5 Notes, $21,418,000, with respect to
the Class A-I-6  Notes,  $40,489,000,  with  respect to the Class  A-I-7  Notes,
$33,205,000, and with respect to the Class A-II Notes, $100,000,000.

               Insolvency  Event:  With respect to a specified  Person,  (a) the
filing of a decree or order for  relief by a court  having  jurisdiction  in the
premises in respect of such Person or any substantial part of its property in an
involuntary  case under any applicable  bankruptcy,  insolvency or other similar
law now or hereafter in effect, or appointing a receiver, liquidator,  assignee,
custodian,  trustee, sequestrator or similar official for such Person or for any
substantial  part of its property,  or ordering the winding-up or liquidation of
such  Person's  affairs,  and such decree or order shall remain  unstayed and in
effect for a period of 60  consecutive  days;  or (b) the  commencement  by such
Person of a voluntary case under any applicable bankruptcy,  insolvency or other
similar  law now or  hereafter  in effect,  or the consent by such Person to the
entry of an order for relief in an  involuntary  case under any such law, or the
consent by such Person to the appointment of or taking possession by a receiver,
liquidator,  assignee,  custodian, trustee, sequestrator or similar official for
such Person or for any substantial  part of its property,  or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which the Indenture Trustee shall

                                      -12-

<PAGE>

have notice) of its inability to pay its debts generally, or the adoption by the
Board of  Directors  or  managing  member of such Person of a  resolution  which
authorizes action by such Person in furtherance of any of the foregoing.

               Insurance Agreement:  The Insurance and Indemnity Agreement dated
as of March 26, 2002, among the Master Servicer, the Seller, the Depositor,  the
Issuer, the Indenture Trustee and the Credit Enhancer,  including any amendments
and supplements thereto.

               Insurance Proceeds:  Proceeds paid by any insurer (other than the
Credit Enhancer) pursuant to any insurance policy covering a Home Loan which are
required to be remitted to the Master  Servicer,  or amounts required to be paid
by the Master Servicer  pursuant to the next to last sentence of Section 3.04 of
the Servicing Agreement,  net of any component thereof (i) covering any expenses
incurred by or on behalf of the Master  Servicer in  connection  with  obtaining
such proceeds,  (ii) that is applied to the restoration or repair of the related
Mortgaged  Property,  (iii)  released to the  Mortgagor in  accordance  with the
Master Servicer's normal servicing procedures or (iv) required to be paid to any
holder of a mortgage senior to such Home Loan.

               Interest  Accrual  Period:  With respect to the Notes (other than
the Class A-I-1 Notes) and as to any Payment  Date,  will be the calendar  month
preceding  the month in which the related  Payment Date occurs.  With respect to
the Class A-I-1 Notes and any Payment  Date other than the first  Payment  Date,
the  period  beginning  on the  preceding  Payment  Date and  ending  on the day
preceding  such Payment Date,  and in the case of the first  Payment  Date,  the
period  beginning on the Closing Date and ending on the day  preceding the first
Payment Date.

               Interest  Collections:  With respect to any Payment Date, the sum
of (i) the portion  allocable to interest of all scheduled  monthly  payments on
the Home  Loans  received  during  the  related  Collection  Period,  minus  the
Administrative  Fees, (ii) the portion of all Net Liquidation Proceeds allocated
to  interest  pursuant  to the  terms  of the  Mortgage  Notes,  reduced  by the
Administrative  Fees for such Collection  Period,  (iii) the interest portion of
the Repurchase  Price for any Deleted Loans and the interest portion of the cash
purchase price paid in connection  with any optional  purchase of the Home Loans
by the Master  Servicer and (iv)  proceeds and  recoveries  received  during the
related  Collection  Period from a Home Loan after it becomes a Liquidated  Home
Loan allocated to Interest  Collections in accordance with the last paragraph of
Section 3.07 of the Servicing Agreement.

     ISDA  Counterparty:  The  counterparty  named in the Limited  Reimbursement
Agreement.

     Issuer or Trust: The Home Loan Trust 2002-HI2,  a Delaware  business trust,
or its successor in interest.

     Issuer Request: A written order or request signed in the name of the Issuer
by any one of its Authorized Officers and delivered to the Indenture Trustee.

     LIBOR:  For any  Interest  Accrual  Period  other  than the first  Interest
Accrual  Period,  the rate for United States dollar deposits for one month which
appears on the Dow Jones Telerate

                                      -13-

<PAGE>

Screen Page 3750 as of 11:00 A.M.,  London,  England  time,  on the second LIBOR
Business  Day prior to the  first  day of such  Interest  Accrual  Period.  With
respect to the first Interest Accrual Period,  the rate for United States dollar
deposits for one month which appears on the Dow Jones Telerate  Screen Page 3750
as of 11:00 A.M.,  London,  England time,  two LIBOR  Business Days prior to the
Closing  Date.  If such rate does not appear on such page (or such other page as
may replace that page on that service,  or if such service is no longer offered,
such other service for displaying LIBOR or comparable rates as may be reasonably
selected by the Indenture  Trustee after  consultation  with the Master Servicer
and the Credit  Enhancer),  the rate will be the Reference Bank Rate. If no such
quotations can be obtained and no Reference  Bank Rate is available,  LIBOR will
be LIBOR applicable to the preceding Payment Date.

               LIBOR Business Day: Any day other than (i) a Saturday or a Sunday
or (ii) a day on which banking  institutions in the city of London,  England are
required or authorized by law to be closed.

               Lien:   Any  mortgage,   deed  of  trust,   pledge,   conveyance,
hypothecation, assignment, participation, deposit arrangement, encumbrance, lien
(statutory or other),  preference,  priority right or interest or other security
agreement  or  preferential  arrangement  of  any  kind  or  nature  whatsoever,
including,  without  limitation,  any conditional  sale or other title retention
agreement,  any financing lease having substantially the same economic effect as
any of the  foregoing and the filing of any  financing  statement  under the UCC
(other than any such financing statement filed for informational  purposes only)
or  comparable  law of  any  jurisdiction  to  evidence  any  of the  foregoing;
provided, however, that any assignment pursuant to Section 6.02 of the Servicing
Agreement shall not be deemed to constitute a Lien.

               Limited Reimbursement Agreement: The ISDA Master Agreement, dated
June 1, 1999, as amended and restated as of January 9, 2002,  between the Credit
Enhancer and the ISDA Counterparty, with the related Confirmation.

               Liquidated  Home Loan: With respect to any Payment Date, any Home
Loan in respect of which the Master Servicer has determined,  in accordance with
the servicing procedures specified in the Servicing Agreement,  as of the end of
the related Collection Period, that substantially all Liquidation Proceeds which
it reasonably expects to recover, if any, with respect to the disposition of the
related Mortgaged Property have been recovered. In addition, the Master Servicer
will  treat  any Home Loan that is 180 days or more  delinquent  as having  been
finally liquidated.

               Liquidation  Expenses:   Out-of-pocket   expenses  (exclusive  of
overhead)  which  are  incurred  by or on  behalf  of  the  Master  Servicer  in
connection  with the  liquidation  of any Home Loan and not recovered  under any
insurance policy,  such expenses including,  without limitation,  legal fees and
expenses,  any  unreimbursed  amount expended  (including,  without  limitation,
amounts  advanced  to correct  defaults on any loan which is senior to such Home
Loan and amounts  advanced  to keep  current or pay off a loan that is senior to
such  Home  Loan)   respecting  the  related  Home  Loan  and  any  related  and
unreimbursed  expenditures  for  real  estate  property  taxes  or for  property
acquisition,  restoration,  preservation  or disposition,  or insurance  against
casualty loss or damage.

                                      -14-

<PAGE>

               Liquidation Loss Amount: With respect to any Payment Date and any
Home Loan that  became a  Liquidated  Home Loan  during the  related  Collection
Period,  the unrecovered  portion of the related Loan Balance thereof at the end
of such Collection Period,  after giving effect to the Net Liquidation  Proceeds
applied in reduction of the Loan Balance.

               Liquidation Loss Distribution Amount: With respect to any Payment
Date, the aggregate of (A) 100% of the Liquidation  Loss Amounts (other than any
Excess Loss Amounts) on the Home Loans on such Payment  Date,  plus (B) any such
Liquidation  Loss Amounts (other than any Excess Loss Amounts)  remaining unpaid
from any preceding  Payment Date, to the extent not reflected on such  preceding
Payment Date by a reduction of the Outstanding Reserve Amount.

               Liquidation Proceeds:  Proceeds (including Insurance Proceeds but
not including  amounts  drawn under the Credit  Enhancement  Instrument)  if any
received in  connection  with the  liquidation  of any Home Loan or related REO,
whether through  trustee's sale,  foreclosure sale, the exercise of the power of
eminent domain or condemnation or otherwise.

               Loan  Balance:  With  respect  to any  Home  Loan,  other  than a
Liquidated  Home Loan, and as of any day, the related Cut-off Date Loan Balance,
minus all  collections  in respect of principal in  accordance  with the related
Mortgage Note and applied in reduction of the Loan Balance thereof. For purposes
of this  definition,  a  Liquidated  Home  Loan  shall be  deemed to have a Loan
Balance equal to zero.

               Loan Group: Either or both Loan Group I or Loan Group II.

     Loan Group I: The group of Home Loans comprised of the Group I Loans.

     Loan Group II: The group of Home Loans comprised of the Group II Loans.

               Loan Rate or Mortgage Rate: With respect to any Home Loan and any
day, the per annum rate of interest set forth in the related Mortgage Note.

               Lost Note  Affidavit:  With  respect to any Home Loan as to which
the original  Mortgage Note has been  permanently  lost or destroyed and has not
been  replaced,  an  affidavit  from the  Seller  certifying  that the  original
Mortgage Note has been lost, misplaced or destroyed (together with a copy of the
related Mortgage Note).

     Master Servicer:  Residential Funding Corporation,  a Delaware corporation,
and its successors and assigns.

               Master  Servicing  Fee:  With  respect  to any Home  Loan and any
Collection  Period,  the product of (i) the Master Servicing Fee Rate divided by
12 and (ii) the Loan  Balance  of such  Home  Loan as of the  first  day of such
Collection Period.

     Master Servicing Fee Rate: With respect to any Home Loan, 0.08% per annum.

                                      -15-

<PAGE>

               Monthly Payment: With respect to any Home Loan (including any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization  schedule at the time applicable thereto (after
adjustment,  if  any,  for  partial  prepayments  and for  Deficient  Valuations
occurring prior to such Due Date but before any adjustment to such  amortization
schedule  by reason of any  bankruptcy,  other than a  Deficient  Valuation,  or
similar proceeding or any moratorium or similar waiver or grace period).

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

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

               Mortgage  File:  The  file   containing  the  Related   Documents
pertaining to a particular Home Loan and any additional documents required to be
added to the Mortgage File  pursuant to the Home Loan Purchase  Agreement or the
Servicing Agreement.

               Mortgage  Note:  With respect to a Home Loan,  the mortgage  note
pursuant to which the related mortgagor agrees to pay the indebtedness evidenced
thereby and secured by the related Mortgage as modified or amended.

     Mortgaged Property:  The underlying  property,  including real property and
improvements thereon, securing a Home Loan.

               Mortgagor: The obligor or obligors under a Mortgage Note.

               Net  Liquidation  Proceeds:  With respect to any Liquidated  Home
Loan,  Liquidation  Proceeds (including Insurance Proceeds but excluding amounts
drawn  on the  Credit  Enhancement  Instrument  or paid in  connection  with the
Limited Reimbursement Agreement) net of Liquidation Expenses.

               Note  Balance:  With respect to any Payment Date and any Class of
Notes, other than the Class A-IO Notes, the Initial Note Balance thereof reduced
by all payments of principal thereon prior to and as of such Payment Date.

               Note Owner:  The Beneficial Owner of a Note.

               Note Rate:  With  respect to the Class A-I-1  Notes,  will be the
lesser of (a) LIBOR plus 0.15% per annum and (b) 8.00% per annum.  With  respect
to the Class  A-I-2  Notes,  4.56% per annum.  With  respect to the Class  A-I-3
Notes,  5.17% per annum. With respect to the Class A-I-4 Notes, 5.64% per annum.
With  respect to the Class A-I-5  Notes,  5.98% per annum.  With  respect to the
Class A-I-6 Notes, 6.51% per annum. With respect to the Class A-I-7 Notes, 6.95%
per annum, and with respect to the Class A-II Notes, 6.06% per annum;  provided,
that on the Step-Up Date,  the Note Rate on the Class A-I-7 Notes and Class A-II
Notes shall  increase by 0.50% per annum.  With respect to the Class A-IO Notes,
11.00% per annum for the April 2002 through March 2003 payment dates, 10.00% per
annum for the April 2003 through  March 2004  payment  dates and 7.00% per annum
for the April 2004 through September 2004 Payment Dates.

                                      -16-

<PAGE>

     Notional  Amount:  With respect to the first 30 Payment  Dates of the Class
A-IO Notes, $32,500,000; thereafter, zero.

     Note Register:  The register  maintained by the Note Registrar in which the
Note Registrar shall provide for the  registration of Notes and of transfers and
exchanges of Notes.

     Note Registrar: The Indenture Trustee, in its capacity as Note Registrar.

               Noteholder:  The Person in whose name a Note is registered in the
Note Register,  except that,  any Note  registered in the name of the Depositor,
the Issuer or the  Indenture  Trustee or any  Affiliate  of any of them shall be
deemed not to be outstanding and the registered  holder will not be considered a
Noteholder or holder for purposes of giving any request, demand,  authorization,
direction,  notice, consent or waiver under the Indenture or the Trust Agreement
provided that, in determining  whether the Indenture  Trustee shall be protected
in relying upon any such  request,  demand,  authorization,  direction,  notice,
consent or waiver,  only Notes that the  Indenture  Trustee or the Owner Trustee
knows to be so owned  shall be so  disregarded.  Owners of Notes  that have been
pledged in good faith may be regarded as Holders if the pledgee  establishes  to
the  satisfaction  of the  Indenture  Trustee or the Owner Trustee the pledgee's
right so to act with  respect  to such  Notes  and that the  pledgee  is not the
Issuer,  any  other  obligor  upon  the  Notes  or any  Affiliate  of any of the
foregoing  Persons.  Any  Notes on which  payments  are made  under  the  Credit
Enhancement Instrument shall be deemed Outstanding until the Credit Enhancer has
been reimbursed with respect thereto and the Credit Enhancer shall be deemed the
Noteholder thereof to the extent of such unreimbursed payment.

               Notes:  Any one of the Class  A-I-1,  Class  A-I-2,  Class A-I-3,
Class A-I-4,  Class A-I- 5, Class A-I-6,  Class A-I-7,  Class A-IO or Class A-II
Notes issued and outstanding at any time pursuant to the Indenture.

               Officer's  Certificate:  With respect to the Master  Servicer,  a
certificate  signed by the  President,  Managing  Director,  a Director,  a Vice
President or an Assistant Vice  President,  of the Master Servicer and delivered
to the Indenture  Trustee.  With respect to the Issuer, a certificate  signed by
any Authorized Officer of the Issuer, under the circumstances  described in, and
otherwise  complying  with, the applicable  requirements of Section 10.01 of the
Indenture,  and delivered to the Indenture Trustee.  Unless otherwise specified,
any  reference  in the  Indenture  to an  Officer's  Certificate  shall be to an
Officer's Certificate of any Authorized Officer of the Issuer.

               Opinion of Counsel: A written opinion of counsel.  Any Opinion of
Counsel for the Master  Servicer  may be  provided  by in-house  counsel for the
Master Servicer if reasonably  acceptable to the Indenture  Trustee,  the Credit
Enhancer and the Rating  Agencies or counsel for the Depositor,  as the case may
be.

               Optional Redemption: The right of the Master Servicer to purchase
the Home Loans on any Payment Date on which the aggregate  Principal  Balance of
the Home Loans as of the end of the related  Collection  Period is less than 10%
of the  Cut-off  Date  Balance,  pursuant  to  Section  8.08  of  the  Servicing
Agreement.

                                      -17-

<PAGE>

     Original Trust Agreement: The Trust Agreement,  dated as of March 15, 2002,
between the Owner Trustee and the Depositor.

     Outstanding:  With respect to the Notes,  as of the date of  determination,
all Notes theretofore executed, authenticated and delivered under this Indenture
except:

               (i)  Notes  theretofore   cancelled  by  the  Note  Registrar  or
          delivered to the Indenture Trustee for cancellation; and

                      (ii) Notes in exchange for or in lieu of which other Notes
        have  been  executed,   authenticated  and  delivered  pursuant  to  the
        Indenture  unless  proof   satisfactory  to  the  Indenture  Trustee  is
        presented that any such Notes are held by a holder in due course;

provided, however, that for purposes of effectuating the Credit Enhancer's right
of  subrogation  as set forth in Section 4.12 of the Indenture  only,  all Notes
that have been paid with funds provided under the Credit Enhancement  Instrument
shall be deemed to be Outstanding  until the Credit Enhancer has been reimbursed
with respect thereto.

               Outstanding Reserve Amount: With respect to any Payment Date, the
amount,  if any, by which (i) the Pool Balance after applying  payments received
in the related  Collection Period exceeds (ii) the aggregate Note Balance of the
Notes on such Payment Date after  application of Principal  Collections for such
date. On each Payment Date, the  Outstanding  Reserve Amount  available to cover
Liquidation  Loss Amounts on such Payment  Date,  if any,  shall be deemed to be
reduced by an amount  equal to any  Liquidation  Loss  Amounts  (other  than any
Excess  Loss  Amounts)  for such  Payment  Date,  except to the extent that such
Liquidation Loss Amounts were covered on such Payment Date by a Liquidation Loss
Distribution Amount.

     Owner Trust: Home Loan Trust 2002-HI2,  created by the Certificate of Trust
pursuant to the Trust Agreement and the Original Trust Agreement.

     Owner Trust Estate: The corpus of the Issuer created by the Trust Agreement
which consists of the Home Loans and the Credit Enhancement Instrument.

               Owner  Trustee:  Wilmington  Trust Company not in its  individual
capacity  but  solely as Owner  Trustee  of the Trust,  and its  successors  and
assigns or any successor  owner trustee  appointed  pursuant to the terms of the
Trust Agreement.

     Paying Agent:  Any paying agent or co-paying  agent  appointed  pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.

               Payment Account: The account established by the Indenture Trustee
pursuant to Section  8.02 of the  Indenture  and Section  5.01 of the  Servicing
Agreement.  Amounts  deposited in the Payment Account will be distributed by the
Indenture Trustee in accordance with Section 3.05 of the Indenture.

                                      -18-

<PAGE>

     Payment Date: The 25th day of each month,  or if such day is not a Business
Day, then the next Business Day.

               Percentage  Interest:  With  respect  to any Note and any date of
determination,  the percentage obtained by dividing the Note Balance or Notional
Amount,  as  applicable,  of such Note by the  aggregate of the Note Balances or
Notional Amounts, as applicable, of all Notes of the same Class.

               Permitted Investments:  One or more of the following:

               (i)  obligations of or guaranteed as to principal and interest by
        the United  States or any agency or  instrumentality  thereof  when such
        obligations  are  backed  by the full  faith and  credit  of the  United
        States;

               (ii) repurchase agreements on obligations specified in clause (i)
        maturing not more than one month from the date of  acquisition  thereof,
        provided  that  the  unsecured  obligations  of the  party  agreeing  to
        repurchase such  obligations are at the time rated by each Rating Agency
        in its highest short-term rating category available;

               (iii) federal funds,  certificates of deposit,  demand  deposits,
        time  deposits  and  bankers'  acceptances  (which  shall  each  have an
        original  maturity of not more than 90 days and, in the case of bankers'
        acceptances,  shall in no event have an  original  maturity of more than
        365 days or a remaining  maturity of more than 30 days)  denominated  in
        United  States  dollars  of any  U.S.  depository  institution  or trust
        company  incorporated  under the laws of the United  States or any state
        thereof or of any domestic branch of a foreign depository institution or
        trust company;  provided that the debt  obligations  of such  depository
        institution  or trust company (or, if the only Rating Agency is Standard
        &  Poor's,  in the case of the  principal  depository  institution  in a
        depository   institution  holding  company,   debt  obligations  of  the
        depository  institution  holding  company)  at the  date of  acquisition
        thereof have been rated by each Rating Agency in its highest  short-term
        rating category available; and provided further that, if the only Rating
        Agency is Standard & Poor's and if the  depository or trust company is a
        principal  subsidiary of a bank holding company and the debt obligations
        of such subsidiary are not separately rated, the applicable rating shall
        be that of the bank holding company;  and, provided further that, if the
        original maturity of such short-term obligations of a domestic branch of
        a foreign depository  institution or trust company shall exceed 30 days,
        the short-term  rating of such institution  shall be A-1+ in the case of
        Standard & Poor's if Standard & Poor's is the Rating Agency;

               (iv)  commercial  paper (having  original  maturities of not more
        than 365  days) of any  corporation  incorporated  under the laws of the
        United States or any state thereof which on the date of acquisition  has
        been  rated by each  Rating  Agency  in its  highest  short-term  rating
        category  available;  provided that such  commercial  paper shall have a
        remaining maturity of not more than 30 days;

               (v) a money market fund or a qualified  investment  fund rated by
        each Rating Agency in its highest  long-term rating category  available;
        and

                                      -19-

<PAGE>

               (vi) other  obligations or securities that are acceptable to each
        Rating Agency as an Permitted  Investment  hereunder and will not reduce
        the rating  assigned to any  Securities  by such Rating Agency below the
        lower  of  the  then-current  rating  or the  rating  assigned  to  such
        Securities as of the Closing Date by such Rating  Agency,  and which are
        acceptable  to the Credit  Enhancer,  as evidenced in writing,  provided
        that if the Master Servicer or any other Person controlled by the Master
        Servicer  is the issuer or the  obligor of any  obligation  or  security
        described in this clause (vi) such  obligation  or security must have an
        interest  rate or  yield  that  is  fixed  or is  variable  based  on an
        objective  index that is not affected by the rate or amount of losses on
        the Home Loans;

provided,  however,  that no  instrument  shall be a Permitted  Investment if it
represents,  either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest  payments derived from  obligations  underlying such instrument and the
principal and interest payments with respect to such instrument  provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations  References  herein to the highest  rating  available  on  unsecured
long-term  debt shall  mean AAA in the case of  Standard & Poor's and Aaa in the
case of Moody's,  and  references  herein to the  highest  rating  available  on
unsecured  commercial paper and short-term debt  obligations  shall mean A-1+ in
the case of Standard & Poor's and P-1 in the case of Moody's.

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

     Plan:  Any employee  benefit plan subject to Title IV of ERISA and any plan
or other arrangement described in Section 4975(e)(1) of the Code.

     Plan Assets:  The assets of a Plan as determined  under Department of Labor
regulation section 2510.3-101 or other applicable law.

     Pool Balance:  With respect to any date, the aggregate of the Loan Balances
of all Home Loans as of such date.

               Predecessor  Note:  With respect to any  particular  Note,  every
previous Note  evidencing all or a portion of the same debt as that evidenced by
such  particular  Note;  and,  for the  purpose  of this  definition,  any  Note
authenticated  and  delivered  under  Section 4.03 of the Indenture in lieu of a
mutilated,  lost,  destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

     Premium  Amount:  The  amount of  premium  due to the  Credit  Enhancer  in
accordance with the terms of the Insurance Agreement.

               Premium Percentage: As set forth in the Insurance Agreement.

     Prepayment  Assumption:  A  100%  Prepayment  Assumption  used  solely  for
determining the accrual of original issue discount, market discount and premium,
if any, on the Notes

                                      -20-

<PAGE>

for federal income tax purposes. A 100% Prepayment Assumption assumes a constant
prepayment rate of 2% per annum for the first month, increasing each month by an
additional 0.789474% until the twentieth month. Beginning in the twentieth month
and in  each  month  thereafter  during  the  life  of the  Home  Loans,  a 100%
Prepayment  Assumption assumes a constant  prepayment rate of 17% per annum each
month.

               Principal  Collection  Distribution Amount: For any Payment Date,
the Principal  Collections  for such Payment  Date;  provided,  however,  on any
Payment Date with  respect to which the  Outstanding  Reserve  Amount that would
result, if determined without regard to this proviso, exceeds the Reserve Amount
Target,  the  Principal  Collection  Distribution  Amount will be reduced by the
amount of such excess, but not below zero, until the Outstanding  Reserve Amount
equals the Reserve Amount Target.

     Principal Collections: An amount equal to the sum of the following amounts:

               (i) the principal  portion of all scheduled  Monthly  Payments on
          the Home Loans received during the related Collection Period;

               (ii) the principal  portion of all proceeds of the  repurchase of
        any Home  Loans (or,  in the case of a  substitution,  any  Substitution
        Adjustment  Amounts) as required by the Servicing  Agreement  during the
        related Collection Period and the principal portion of the cash purchase
        price paid in connection with any optional purchase of the Home Loans by
        the Master Servicer; and

               (iii) the principal portion of all other unscheduled  collections
        received  on the Home Loans  during the  related  Collection  Period (or
        deemed to be received during the related Collection Period)  (including,
        without limitation,  full and partial Principal  Prepayments made by the
        respective Mortgagors, Insurance Proceeds and Net Liquidation Proceeds),
        to the extent not previously distributed;

provided,  however,  that Principal  Collections shall be reduced by any amounts
withdrawn from the Custodial Account pursuant to Section 3.03(ii), (v), (vi) and
(vii) of the Servicing Agreement.

               Principal  Prepayment:  Any  payment  of  principal  made  by the
Mortgagor on a Home Loan which is received in advance of its  scheduled Due Date
and which is not  accompanied  by an amount of interest  representing  scheduled
interest due on any date or dates in any month or months subsequent to the month
of prepayment.

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

     Program Guide:  Together, the Seller's Seller Guide and Servicing Guide, as
in effect from time to time.

     Prospectus  Supplement:  The prospectus  supplement,  dated March 20, 2002,
relating to the issuance of the Home Loan-Backed Notes, Series 2002-HI2.

                                      -21-

<PAGE>

     Purchase  Price:  The meaning  specified in Section 2.2(a) of the Home Loan
Purchase Agreement.

     Purchaser:  Residential  Funding  Mortgage  Securities II, Inc., a Delaware
corporation, and its successors and assigns.

               Qualified  Insurer:  A mortgage  guaranty  insurance company duly
qualified as such under the laws of the state of its principal place of business
and each state  having  jurisdiction  over such insurer in  connection  with the
insurance  policy issued by such insurer,  duly  authorized and licensed in such
states to transact a mortgage guaranty  insurance business in such states and to
write the insurance  provided by the insurance  policy issued by it, approved as
an insurer by the Master Servicer and as a FNMA-approved mortgage insurer.

               Rating  Agency:  Any  nationally  recognized  statistical  rating
organization,  or its successor, that rated the Securities at the request of the
Depositor at the time of the initial issuance of the Securities, which initially
shall be Moody's or Standard & Poor's. If such organization or a successor is no
longer  in  existence,  "Rating  Agency"  shall  be such  nationally  recognized
statistical rating organization,  or other comparable Person,  designated by the
Depositor,  notice of which designation shall be given to the Indenture Trustee.
References  herein to the  highest  short term  unsecured  rating  category of a
Rating  Agency shall mean A-1 or better in the case of Standard & Poor's and P-1
or better in the case of  Moody's  and in the case of any  other  Rating  Agency
shall mean such equivalent  ratings.  References herein to the highest long-term
rating  category of a Rating  Agency  shall mean "AAA" in the case of Standard &
Poor's  and "Aaa" in the case of  Moody's  and in the case of any  other  Rating
Agency, such equivalent rating.

               Record  Date:  With  respect  to the  Class  A-I-1  Notes and any
Payment Date, the Business Day next preceding such Payment Date and with respect
to the Notes  (other than the Class A-I-1  Notes) and the  Certificates  and any
Payment  Date,  the last  Business Day of the month  preceding the month of such
Payment Date.

               Reference Bank Rate: With respect to any Interest Accrual Period,
as follows:  the arithmetic mean (rounded upwards, if necessary,  to the nearest
one  sixteenth  of a percent)  of the  offered  rates for United  States  dollar
deposits  for one month  which are  offered by the  Reference  Banks as of 11:00
A.M., London,  England time, on the second LIBOR Business Day prior to the first
day of such  Interest  Accrual  Period to prime  banks in the  London  interbank
market  for a period of one month in amounts  approximately  equal to the sum of
the  outstanding  Note Balance of the Class A-I-1 Notes;  provided that at least
two such  Reference  Banks  provide such rate.  If fewer than two offered  rates
appear,  the Reference Bank Rate will be the arithmetic mean of the rates quoted
by one or more major banks in New York City,  selected by the Indenture  Trustee
after consultation with the Master Servicer and the Credit Enhancer, as of 11:00
a.m., New York time, on such date for loans in U.S.  Dollars to leading European
Banks for a period of one month in amounts  approximately equal to the aggregate
Note Balance of the Class A-I-1 Notes.  If no such  quotations  can be obtained,
the Reference Bank Rate shall be LIBOR applicable to the preceding Payment Date;
provided  however,  that if, under the priorities  indicated above,  LIBOR for a
Payment Date would be based on LIBOR for the previous Payment Date for the third
consecutive  Payment  Date,  the Indenture  Trustee shall select an  alternative
comparable index over which the Indenture Trustee has no control,

                                      -22-

<PAGE>

used for determining  one-month  Eurodollar lending rates that is calculated and
published or otherwise made available by an independent party.

     Reference Banks: Barclays Bank PLC, Credit Suisse and Abbey National PLC.

     Registered  Holder:  The Person in whose name a Note is  registered  in the
Note Register on the applicable Record Date.

               Related Documents:  With respect to each Home Loan, the documents
specified  in  Section  2.1(c)  of the  Home  Loan  Purchase  Agreement  and any
documents  required  to be added to such  documents  pursuant  to the Home  Loan
Purchase Agreement, the Trust Agreement or the Servicing Agreement.

     Release  Agreement:  A Release  Agreement as defined in Section 3.05 of the
Servicing Agreement.

     REO: A Mortgaged  Property that is acquired by the Issuer in foreclosure or
by deed in lieu of foreclosure.

               Repurchase  Event:  With  respect  to any Home  Loan,  one of the
following:  (i) a discovery  that, as of the Closing Date, the related  Mortgage
was not a valid lien on the related  Mortgaged  Property subject only to (A) the
lien of any prior mortgage indicated on the Home Loan Schedule,  (B) the lien of
real property  taxes and  assessments  not yet due and payable,  (C)  covenants,
conditions,  and  restrictions,  rights of way,  easements  and other matters of
public  record  as of the date of  recording  of such  Mortgage  and such  other
permissible  title  exceptions  as are listed in the Program Guide and (D) other
matters to which like  properties  are commonly  subject which do not materially
adversely  affect the value,  use,  enjoyment  or  marketability  of the related
Mortgaged Property, or (ii) with respect to any Home Loan as to which the Seller
delivers a Lost Note  Affidavit,  a subsequent  default on such Home Loan if the
enforcement  thereof or of the related  Mortgage  is  materially  and  adversely
affected by the absence of the original Mortgage Note.

               Repurchase  Price:  With respect to any Home Loan  required to be
repurchased  on any  date  pursuant  to the  Home  Loan  Purchase  Agreement  or
purchased by the Master Servicer pursuant to the Servicing Agreement,  an amount
equal to the sum of (i) 100% of the Loan Balance thereof (without  reduction for
any amounts  charged off) and (ii) unpaid accrued  interest at the Loan Rate (or
with respect to the last day of the month in the month of  repurchase,  the Loan
Rate will be the Loan Rate in effect as to the second to last day in such month)
on the outstanding principal balance thereof from the Due Date to which interest
was last paid by the Mortgagor to the first day of the month following the month
of purchase.

     Request  for  Release:  The form  attached  as  Exhibit 4 to the  Custodial
Agreement or an electronic request in a form acceptable to the Custodian.

               Reserve Amount Target:  On any Payment Date prior to the Stepdown
Date,  the Reserve  Amount  Target  will be 2.00% of the Pool  Balance as of the
Cut-off Date. On or after the Stepdown  Date,  the Reserve Amount Target will be
equal to the lesser of:

                                      -23-

<PAGE>

        (a)    the Reserve Amount Target as of the Cut-off Date and

        (b) 4.00% of the Pool Balance after  applying  payments  received in the
related  Collection  Period  (but not less  than  $1,625,012  (0.50% of the Pool
Balance as of the Cut-off Date));

provided,  however, that any scheduled reduction to the Reserve Amount Target on
or after the Stepdown  Date as described  above shall not be made on any Payment
Date unless:

        (i) either (a) the aggregate  cumulative  Liquidation Loss Amount on the
        Home Loans  from the  Cut-off  Date  through  the end of the  Collection
        Period immediately prior to such Payment Date is less than:

               (A) 7.0% of the Pool  Balance  as of the  Cut-off  Date,  if such
               Payment Date is the 38th through 48th Payment Dates,

               (B) 8.5% of the Pool  Balance  as of the  Cut-off  Date,  if such
               Payment Date is the 49th through 60th Payment Dates, or

               (C) 10.5% of the Pool  Balance as of the  Cut-off  Date,  if such
               Payment  Date is the  61st  Payment  Date  (or any  Payment  Date
               thereafter) or

               (b) the average of the aggregate  Liquidation  Loss Amount on the
        Home  Loans  that  became  Liquidated  Home  Loans  during  the  related
        Collection  Period,  as  determined  for the current  and five  previous
        Payment Dates,  is less than 50% of the average of the amount  remaining
        in the Payment  Account on such  Payment  Date  following  distributions
        pursuant to clauses (i)-(v) of Section 3.05 of the Indenture (other than
        distributions made pursuant to clause (iii) thereof),  as determined for
        the current and five previous Payment Dates and

        (ii) there has been no draw on the Credit Enhancement Instrument on such
        Payment Date that remains unreimbursed.

In addition,  the Reserve  Amount  Target may be reduced with the prior  written
consent of the Credit Enhancer and notice to the Rating Agencies.

               Reserve  Increase  Amount:  On each  Payment  Date other than the
Payment  Dates in April  2002,  May 2002 and June 2002,  an amount  equal to the
lesser  of  (i)  the  amount   remaining  in  the  Payment   Account   following
distributions  pursuant  to Section  3.05(a)(v)  of the  Indenture  and (ii) the
amount  necessary  to bring the  Outstanding  Reserve  Amount up to the  Reserve
Amount  Target.  On the Payment Dates in April 2002,  May 2002 and June 2002, an
amount equal to zero.

               Responsible  Officer:  With respect to the Indenture Trustee, any
officer  of  the   Indenture   Trustee  with  direct   responsibility   for  the
administration  of the Trust  Agreement  and also,  with respect to a particular
matter,  any other  officer  to whom such  matter is  referred  because  of such
officer's knowledge of and familiarity with the particular subject.

               Sale:  The meaning specified in Section 5.15 of the Indenture.
               ----

                                      -24-

<PAGE>

     Securities  Act: The Securities Act of 1933, as amended,  and the rules and
regulations promulgated thereunder.

               Security:  Any of the Certificates or Notes.

               Securityholder or Holder:  Any Noteholder or a Certificateholder.

               Security Instrument:  A written instrument creating a valid first
lien  on a  Mortgaged  Property  securing  a  Mortgage  Note,  which  may be any
applicable  form of  mortgage,  deed of trust,  deed to secure  debt or security
deed, including any riders or addenda thereto.

     Seller:  Residential Funding Corporation,  a Delaware corporation,  and its
successors and assigns.

     Servicing  Agreement:  The Servicing  Agreement  dated as of March 26, 2002
among the  Indenture  Trustee,  the Issuer and the  Master  Servicer,  as master
servicer.

     Servicing  Certificate:  A certificate  prepared by a Servicing  Officer on
behalf of the Master  Servicer in accordance  with Section 4.01 of the Servicing
Agreement.

     Servicing  Default:  The meaning specified in Section 7.01 of the Servicing
Agreement.

     Servicing Fee: With respect to any Home Loan, the sum of the related Master
Servicing Fee and the related Subservicing Fee.

     Servicing Fee Rate:  With respect to any Home Loan,  the sum of the related
Master Servicing Fee Rate and the related Subservicing Fee Rate.

               Servicing  Officer:  Any officer of the Master Servicer  involved
in, or responsible for, the administration and servicing of the Home Loans whose
name and specimen  signature appear on a list of servicing officers furnished to
the  Indenture  Trustee  (with  a copy to the  Credit  Enhancer)  by the  Master
Servicer, as such list may be amended from time to time.

               Special Hazard Amount: As of any date of determination  following
the Cut-off Date, the Special Hazard Amount shall equal  $3,250,025 less the sum
of (A) the  aggregate of any  Liquidation  Loss Amounts on the Home Loans due to
Special Hazard Losses and (B) the  Adjustment  Amount (as defined below) as most
recently  calculated.  For each  anniversary of the Cut-off Date, the Adjustment
Amount shall be equal to the amount,  if any, by which the amount  calculated in
accordance with the preceding  sentence  (without giving effect to the deduction
of the Adjustment Amount for such anniversary) exceeds the greatest of (i) twice
the  outstanding  principal  balance  of the Home  Loan  which  has the  largest
outstanding  principal  balance on the Payment Date  immediately  preceding such
anniversary,  (ii) the product of 1.00% multiplied by the outstanding  aggregate
credit limits of all Home Loans on the Payment Date  immediately  preceding such
anniversary  and (iii) the aggregate  outstanding  principal  balance (as of the
immediately preceding

                                      -25-

<PAGE>

Payment  Date) of the Home Loans in any single  five-digit  California  zip code
area with the largest amount of Home Loans by aggregate  principal balance as of
such anniversary.

               Special Hazard Loss: Any Liquidation Loss Amount not in excess of
the cost of the lesser of repair or replacement of a Mortgaged Property suffered
by such Mortgaged Property on account of direct physical loss,  exclusive of (i)
any  loss of a type  covered  by a hazard  policy  or a flood  insurance  policy
required to be  maintained  in respect of such  Mortgaged  Property  pursuant to
Section 3.04 of the Servicing Agreement,  except to the extent of the portion of
such loss not  covered  as a result of any  coinsurance  provision  and (ii) any
losses resulting from an Extraordinary Event.

     Standard  &  Poor's:  Standard  & Poor's,  a  Division  of The  McGraw-Hill
Companies, Inc. or its successor in interest.

     Stated Value: The value of the Mortgaged  Property as stated by the related
Mortgagor in his or her application.

               Step-Up Date: The second Payment Date  immediately  following the
Payment  Date on which the Master  Servicer can purchase all or some of the Home
Loans from the Trust pursuant to Section 8.08 of the Servicing Agreement.

               Stepdown  Date:  The later of (i) the Payment  Date in April 2005
and (ii) the Payment Date on which the Pool  Balance,  after  applying  payments
received in the related  Collection Period, is less than 50% of the Pool Balance
as of the Cut-off Date.

     Subservicer:  Any Person with whom the Master  Servicer  has entered into a
Subservicing Agreement as a Subservicer by the Master Servicer.

     Subservicing  Account:  An Eligible Account  established or maintained by a
Subservicer as provided for in Section 3.02(c) of the Servicing Agreement.

               Subservicing  Agreement:  The written contract between the Master
Servicer and any Subservicer relating to servicing and administration of certain
Home Loans as provided in Section 3.01 of the Servicing Agreement.

               Subservicing Fee: With respect to any Collection  Period, the fee
retained monthly by the Subservicer  (or, in the case of a  nonsubserviced  Home
Loan, by the Master  Servicer) equal to the product of (i) the  Subservicing Fee
Rate  divided  by 12 and (ii)  the  Pool  Balance  as of the  first  day of such
Collection Period.

     Subservicing  Fee Rate:  With respect to each Home Loan, the amount payable
to the related Subservicer, equal to 0.50% per annum.

               Substitution  Adjustment  Amounts:  With  respect to any Eligible
Substitute  Loan,  the  amount as  defined  in  Section  3.1(b) of the Home Loan
Purchase  Agreement and any Deleted Loan,  the amount,  if any, as determined by
the  Master  Servicer,  by which the  aggregate  principal  balance  of all such
Eligible  Substitute  Loans  as of the  date of  substitution  is less  than the
aggregate principal

                                      -26-

<PAGE>

balance of all such Deleted Loans (after application of the principal portion of
the Monthly Payments due in the month of substitution that are to be distributed
to the Payment Account in the month of substitution).

               Termination  Price:  In the event  that all of the Home Loans are
purchased by the Master Servicer,  the Termination Price will be an amount equal
to 100% of the unpaid Loan Balance of each Home Loan so purchased,  plus accrued
and unpaid  interest  thereon at the weighted  average of the Loan Rates through
the day  preceding  the Payment  Date on which such  purchase  occurs,  plus the
Adjusted Issue Price of the Class A-IO Notes,  plus any amounts due and owing to
the Credit Enhancer under the Insurance  Agreement and any amounts due and owing
to the ISDA Counterparty under the Limited Reimbursement  Agreement (such amount
to be determined  without  respect to the limitation in the definition of "Fixed
Amount" therein which limits the Fixed Amount to Available Funds).

               Treasury   Regulations:   Regulations,   including   proposed  or
temporary Regulations, promulgated under the Code. References herein to specific
provisions  of  proposed  or  temporary   regulations  shall  include  analogous
provisions  of  final   Treasury   Regulations  or  other   successor   Treasury
Regulations.

     Trust  Agreement:  The Amended and Restated  Trust  Agreement,  dated as of
March 26, 2002 between the Owner Trustee and the Depositor.

     Trust  Estate:  The  meaning  specified  in  the  Granting  Clause  of  the
Indenture.

               Trust  Indenture Act or TIA: The Trust  Indenture Act of 1939, as
amended from time to time, as in effect on any relevant date.

     UCC:  The Uniform  Commercial  Code,  as amended  from time to time,  as in
effect in any specified jurisdiction.

     Underwriters:  Bear, Stearns & Co. Inc. and Residential  Funding Securities
Corporation.

               Uniform  Single  Attestation  Program for Mortgage  Bankers:  The
Uniform Single  Attestation  Program for Mortgage  Bankers,  as published by the
Mortgage  Bankers  Association  of America and effective  with respect to fiscal
periods ending on or after December 15, 1995.

               United States Person: A citizen or resident of the United States,
a corporation, partnership or other entity created or organized in, or under the
laws of, the United  States or any state  thereof or the  District  of  Columbia
(except,  in the case of a partnership,  to the extent provided in regulations),
or an estate  whose  income is  subject  to United  States  federal  income  tax
regardless  of its source,  or a trust other than a "foreign  trust"  within the
meaning of Section 7701(a)(30) of the Code.

                                      -27-

<PAGE>

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