Document:

EXHIBIT 4.3

	

DEPOSIT TRUST AGREEMENT

BY AND AMONG

Residential Resources, Inc.

AS DEPOSITOR,

__________________________,

AS OWNER TRUSTEE

____________________________________________

AS TRUST PAYING AGENT AND BOND ADMINISTRATOR,

AND

____________________________________________,

AS SERVICER

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

  ________________________________ TRUST 

DATED AS OF ____________ 1, 200_

	
 

	 	 	 
	

	

TABLE OF CONTENTS

 

	 	 	
Page

	 	 	 
	
ARTICLE I
	
DEFINITIONS
	
4

	
Section 1.1.
	
Capitalized Terms.
	
4

	
Section 1.2.
	
Other Definitional Provisions.
	
7

 

	
ARTICLE II
	
ORGANIZATION
	
7

	
Section 2.1.
	
Name.
	
7

	
Section 2.2.
	
Office.
	
8

	
Section 2.3.
	
Purposes and Powers.
	
8

	
Section 2.4.
	
Appointment of Owner Trustee.
	
8

	
Section 2.5.
	
Initial Capital Contribution of Owner Trust Estate.
	
8

	
Section 2.6.
	
Declaration of Trust.
	
8

	
Section 2.7.
	
Liability of the Holders.
	
9

	
Section 2.8.
	
Title to Trust Property.
	
9

	
Section 2.9.
	
Situs of Trust.
	
9

	
Section 2.10.
	
Representations and Warranties of the Company; Covenant of the Company.
	
9

	
Section 2.11.
	
Federal Income Tax Provisions.
	
11

 

	
ARTICLE III
	
CERTIFICATES AND TRANSFER OF INTERESTS
	
13

	
Section 3.1.
	
Initial Ownership.
	
13

	
Section 3.2.
	
The Certificates.
	
13

	
Section 3.3.
	
Execution, Authentication and Delivery of Trust Certificates.
	
13

	
Section 3.4.
	
Registration of Transfer and Exchange of Trust Certificates.
	
14

	
Section 3.5.
	
Mutilated, Destroyed, Lost or Stolen Certificates.
	
14

	
Section 3.6.
	
Persons Deemed Owners.
	
15

	
Section 3.7.
	
Access to List of Holders' Names and Addresses.
	
15

	
Section 3.8.
	
Maintenance of Office or Agency.
	
15

	
Section 3.9.
	
Appointment of Trust Paying Agent.
	
15

	
Section 3.10.
	
Restrictions on Transfer of Certificates.
	
16

 

	
ARTICLE IV
	
ACTIONS BY OWNER TRUSTEE
	
17

	
Section 4.1.
	
Prior Notice to Holders with Respect to Certain Matters.
	
17

	
Section 4.2.
	
Action by Holders with Respect to Bankruptcy.
	
18

	
Section 4.3.
	
Restrictions on Holders' Power.
	
18

	
Section 4.4.
	
Majority Control.
	
19

	 	 	 
	
ARTICLE V
	
APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
	
19

	
Section 5.1.
	
Establishment of Certificate Distribution Account.
	
19

	
Section 5.2.
	
Application of Trust Funds.
	
19

	
Section 5.3.
	
Method of Payment.
	
20

	
Section 5.4.
	
Segregation of Moneys; No Interest.
	
20

	 	 	 
	
ARTICLE VI
	
AUTHORITY AND DUTIES OF OWNER TRUSTEE
	
20

	
Section 6.1.
	
General Authority.
	
20

	
Section 6.2.
	
General Duties.
	
21

	
Section 6.3.
	
Action upon Instruction.
	
21

	
Section 6.4.
	
No Duties Except as Specified in this Agreement, the Basic Documents or Any Instructions.
	
22

	
Section 6.5.
	
No Action Except Under Specified Documents or Instructions.
	
22

	
Section 6.6.
	
Restrictions.
	
22

	 	 	 
	
ARTICLE VII
	
CONCERNING THE OWNER TRUSTEE
	
22

	
Section 7.1.
	
Acceptance of Trusts and Duties.
	
22

	
Section 7.2.
	
Furnishing of Documents.
	
23

	
Section 7.3.
	
Representations and Warranties.
	
23

	
Section 7.4.
	
Reliance; Advice of Counsel.
	
24

	
Section 7.5.
	
Not Acting in Individual Capacity.
	
24

	
Section 7.6.
	
Owner Trustee Not Liable for Certificates or Mortgage Loans.
	
24

	
Section 7.7.
	
Owner Trustee May Own Certificates and Bonds.
	
25

	
Section 7.8.
	
Licenses.
	
25

 

	 
	 	 2	 
	

	 

	
ARTICLE VIII
	
COMPENSATION OF OWNER TRUSTEE
	
25

	
Section 8.1.
	
Owner Trustee's Fees and Expenses.
	
25

	
Section 8.2.
	
Indemnification.
	
25

	
Section 8.3.
	
Payments to the Owner Trustee.
	
26

	
Section 8.4.
	
Servicer Liability.
	
26

 

	
ARTICLE IX
	
TERMINATION OF TRUST AGREEMENT
	
26

	
Section 9.1.
	
Termination of Trust Agreement.
	
26

 

	
ARTICLE X
	
SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
	
27

	
Section 10.1.
	
Eligibility Requirements for Owner Trustee.
	
27

	
Section 10.2.
	
Resignation or Removal of Owner Trustee.
	
27

	
Section 10.3.
	
Successor Owner Trustee.
	
28

	
Section 10.4.
	
Merger or Consolidation of Owner Trustee.
	
28

	
Section 10.5.
	
Appointment of Co-Trustee or Separate Trustee.
	
28

 

	
ARTICLE XI
	
CONTRIBUTION OF MORTGAGE LOANS
	
29

	
Section 11.1.
	
Agreement to Contribute and Convey.
	
29

	
Section 11.2.
	
Conveyance of Mortgage Loans.
	
30

	
Section 11.3.
	
Assignment of Related Rights and Remedies.
	
30

	
Section 11.4.
	
Closing.
	
31

	
Section 11.5.
	
Servicing.
	
31

	
Section 11.6.
	
Grant of a Security Interest.
	
31

	 	 	 
	
ARTICLE XII
	
MANAGEMENT OF THE TRUST
	
32

	
Section 12.1.
	
Powers and Duties of the Bond Administrator.
	
32

	
Section 12.2.
	
Compensation; Payment of Certain Expenses.
	
34

	
Section 12.3.
	
Instruction of the Owner Trustee.
	
34

	
Section 12.4.
	
Benefit of the Agreement.
	
34

	
Section 12.5.
	
Limitation of Responsibility of the Bond Administrator.
	
34

	
Section 12.6.
	
Termination of Bond Administrator.
	
35

	
Section 12.7.
	
Bankruptcy Matters.
	
36

 

	
ARTICLE XIII
	
MISCELLANEOUS
	
36

	
Section 13.1.
	
Supplements and Amendments.
	
36

	
Section 13.2.
	
No Legal Title to Owner Trust Estate in Holders.
	
37

	
Section 13.3.
	
Limitations on Rights of Others.
	
37

	
Section 13.4.
	
Notices.
	
37

	
Section 13.5.
	
Severability.
	
37

	
Section 13.6.
	
Separate Counterparts.
	
38

	
Section 13.7.
	
Successors and Assigns.
	
38

	
Section 13.8.
	
No Petition.
	
38

	
Section 13.9.
	
No Recourse.
	
38

	
Section 13.10.
	
Headings.
	
38

	
Section 13.11.
	
GOVERNING LAW.
	
38

	
Section 13.12.
	
[Grant of Certificateholder Rights to Bond Insurer.
	
38

	
Section 13.13.
	
[Third Party Beneficiary.
	
39

	
Section 13.14.
	
[Suspension and Termination of Bond Insurer's Rights.
	
39

	
 

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DEPOSIT TRUST AGREEMENT

 

This DEPOSIT TRUST AGREEMENT, dated as of __________ 1, 200__, by and among ___________________________________, a ________                         corporation, as Depositor (the "Company"), __________________, a ___________________________, as Owner Trustee (the
"Owner Trustee") and ___________________________________________, a __________________________, as Trust Paying Agent and Bond Administrator (in each such capacity, the "Trust Paying Agent" or the "Bond Administrator"), and _______________________________, as Servicer (the "Servicer"), is entered into for the limited purposes set forth herein. 

 

ARTICLE I
DEFINITIONS

 

Section 1.1.   Capitalized Terms.

 

For all purposes of this Agreement, the following terms shall have the meanings set forth below:

 

"ACCOUNTS" shall mean, collectively, the Collection Account and the Bond Account.

 

"AGREEMENT" shall mean this Deposit Trust Agreement, as may be amended and supplemented from time to time.

 

"ANNUAL TAX REPORTS" shall have the meaning assigned thereto in Section 2.11(k).

 

"BASIC DOCUMENTS" shall mean this Agreement, the Servicing Agreement, the Sales Agreement, [the Insurance Agreement,] and the Indenture.

 

"BOND ACCOUNT" shall have the meaning assigned thereto in the Indenture.

 

"BOND ADMINISTRATOR" shall mean ___________________, or any successor thereto.

 

"BOND INSURER" shall mean _________________________.

 

"BOND INSURER DEFAULT" shall have the meaning assigned to such term in the Indenture.

 

"BONDS" shall mean the Issuer's Collateralized Mortgage Bonds, Series 2000_-__.

 

"BUSINESS DAY" shall mean any day other than (i) a Saturday or Sunday or (ii) a day that is either a legal holiday or a day on which banking institutions in the State of New York, the State of Delaware, or the state in which the Trust Paying Agent's office from which payments will be made to Certificateholders are authorized or obligated by law, regulation or executive order to be closed.

 

"BUSINESS TRUST STATUTE" shall mean Chapter 38 of Title 12I of the Delaware Code, 12 Del. Code S 3801 et seq., as the same may be amended from time to time.

 

"CAPITAL ACCOUNT" shall have the meaning assigned thereto in Section 2.11(a).

 

"CERTIFICATE" shall mean a certificate evidencing the beneficial interest of a Certificateholder in the Trust, substantially in the form attached hereto as Exhibit A.

 

"CERTIFICATE DISTRIBUTION ACCOUNT" shall have the meaning assigned to such term in Section 5.1.

 

	 
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"CERTIFICATE OF TRUST" shall mean the Certificate of Trust in the form of Exhibit B to be filed for the Trust pursuant to Section 3810(a) of the Business Trust Statute.

 

"CERTIFICATE REGISTER" and "CERTIFICATE REGISTRAR" shall mean the register mentioned and the registrar appointed pursuant to Section 3.4.

 

"CERTIFICATEHOLDER" or "HOLDER" shall mean a Person in whose name a Certificate is registered.

 

"CODE" shall mean the Internal Revenue Code of 1986, as amended, and, where appropriate in context, Treasury Regulations promulgated thereunder.

 

"COLLECTION ACCOUNT" shall have the meaning assigned thereto in the Servicing Agreement.

 

"COMPANY" shall mean _____________________________________, a Delaware corporation.

 

"CORPORATE TRUST OFFICE" shall mean, with respect to the Owner Trustee, the principal corporate trust office of the Owner Trustee located at _________; or at such other address in the State of Delaware as the Owner Trustee may designate by notice to the Certificateholders and the Company, or the principal corporate trust office of any successor Owner Trustee (the address (which shall be in the State of Delaware) of which the successor owner trustee will notify the Certificateholder and the Company).

 

"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

"EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

 

"EXPENSES" shall have the meaning assigned to such term in Section 8.2.

 

"HOLDER NONRECOURSE DEBT MINIMUM GAIN" shall have the meaning set forth for "partner nonrecourse debt minimum gain" in Treasury Regulations Section 1.704-2(i)(2). A Holder's share of Holder Nonrecourse Debt Minimum Gain shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(5).

 

"INDENTURE" shall mean the Indenture, dated as of ____________ 1, 200_, by and between the Issuer and the Indenture Trustee.

 

"INDENTURE TRUSTEE" means ________________________, as Indenture Trustee under the Indenture.

 

"ISSUER" shall mean _______________________________ Trust 200_-__, the Delaware business trust created pursuant to this Agreement.

 

"NON-U.S. PERSON" shall mean an individual, corporation, partnership or other person other than 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 political subdivision thereof, an estate that is subject to U.S. federal income tax regardless of the source of its income or a trust if (i) a court in the United States is able to exercise primary supervision over the administration of the trust and (ii) one or more United States fiduciaries have the authority to control all substantial decisions of the trust.

 

	 
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"OWNER TRUST ESTATE" shall mean the Trust Estate (as defined in the Indenture), including the contribution of $1 referred to in Section 2.5 hereof.

 

"OWNER TRUSTEE" shall mean _______________________, a __________________________, not in its individual capacity but solely as owner trustee under this Agreement, and any successor owner trustee hereunder.

 

"PAYMENT DATE" shall mean the twenty-fifth day of each month or, if such twenty-fifth day is not a Business Day, the next succeeding Business Day, commencing _______________.

 

"PERCENTAGE INTEREST" shall mean with respect to any Certificate the percentage portion of all of the Trust Interest evidenced thereby as stated on the face of such Certificate.

 

"PERMITTED INVESTMENTS" shall have the meaning assigned to such term in the Indenture.

 

"PROSPECTIVE HOLDER" shall have the meaning set forth in Section 3.11(a).

 

"RATING AGENCY CONDITION" means, with respect to any action to which a Rating Agency Condition applies, that each Rating Agency shall have been given 10 days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each of the Rating Agencies shall have notified the Company, the Servicer, the Owner Trustee, and the Issuer in writing that such action will not result in a reduction or withdrawal of the then current "implied" rating of the Bonds that it maintains.

 

"RECORD DATE" shall mean as to each Payment Date the last Business Day of the month immediately preceding the month in which such Payment Date occurs.

 

"SALES AGREEMENT" shall mean that certain Sales Agreement, dated as of _____________ 1, _____, among ________________________, as Seller, and the Company, as Purchaser.

 

"SERVICING AGREEMENT" shall mean the Servicing Agreement dated as of _________________, among the Trust, as Issuer, the Indenture Trustee, and _________, as Servicer.

 

"SECRETARY OF STATE" shall mean the Secretary of State of the State of Delaware.

 

"TAXABLE YEAR" shall have the meaning assigned thereto in Section 2.11(j).

 

“TAX MATTERS PARTNER" shall have the meaning assigned thereto in Section 2.11(l).

 

"TREASURY REGULATIONS" shall mean 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" shall mean the trust established by this Agreement.

 

"TRUST INTEREST" shall mean the right to receive, on each Payment Date, distributions of the amounts, if any, released to the Issuer pursuant to Section 8.02(d) of the Indenture or pursuant to Section 2.05 of the Servicing Agreement.

 

"TRUST MINIMUM GAIN" shall have the meaning set forth for "partnership minimum gain" in Treasury Regulations 1.704-2(b)(2) and 1.704-2(d). In accordance with Treasury Regulations Section 1.704- 2(d), the amount of Trust Minimum Gain is determined by first computing, for each nonrecourse liability of the Trust, any gain the Trust would realize if it disposed of the property subject to that liability for no consideration other than full satisfaction of the liability, and then aggregating the separately computed gains. A Holder's share of Trust Minimum Gain shall be determined in accordance with Treasury Regulations Section 1.704-2(g)(1).

 

	 
	 	6	 
	

	 

"TRUST PAYING AGENT" shall mean any paying agent or co-paying agent appointed pursuant to Section 3.9 and authorized by the Owner Trustee to make payments to and distributions from the Certificate Distribution Account.

 

Section 1.2.   Other Definitional Provisions.

 

(a)  Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Servicing Agreement or, if not defined therein, in the Indenture.

 

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

 

(c)  As used in this Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this 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 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 Agreement or in any such
certificate or other document shall control.

 

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

 

(e)  The definitions contained in this 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.

 

(f)  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 2.1.   Name.

 

The Trust created hereby shall be known as "Residential Mortgage Securities Trust Seventeen," 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.

 

	 
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Section 2.2.   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, the Bond Insurer and the Company.

 

Section 2.3.   Purposes and Powers.

 

The purpose of the Trust is to engage in the following activities:

 

(i)  to issue the Bonds pursuant to the Indenture and to sell such Bonds;

 

(ii)  with the proceeds of the sale of the Bonds, to pay the organizational, start-up, and transactional expenses of the Trust and to pay the balance to the Company pursuant to Article XI.

 

(iii)  to assign, grant, transfer, pledge, mortgage, and convey the Owner Trust Estate pursuant to the Indenture and to hold, manage, and distribute to the Holders any portion of the Owner Trust Estate 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 or 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;

 

(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 and payments to the Holders and the Bondholders; and

 

(vii)  to issue the Certificates pursuant to this Agreement.

 

The Trust is hereby authorized by the initial Certificateholders to engage in the foregoing 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 Agreement or the Basic Documents.

 

Section 2.4.   Appointment of Owner Trustee.

 

The Company 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 2.5.   Initial Capital Contribution of Owner Trust Estate.

 

The Company hereby sells, assigns, transfers, conveys, and sets over to the Owner Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges receipt in trust from the Company, as of the date hereof, of the foregoing contribution, which shall constitute the initial Owner Trust Estate and shall be deposited in the Certificate Distribution Account. The Certificateholders shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.

 

Section 2.6.   Declaration of Trust.

 

The Owner Trustee hereby declares that it will hold the Owner Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Holders, 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 Agreement constitute the governing instrument of such business trust. It is the intention of the parties hereto that, solely for income and franchise tax purposes, after issuance of the Certificates, the Trust shall be treated as a partnership, with the assets of the partnership being the Mortgage Loans and other assets held by the Trust, the partners of the partnership being the holders of the Certificates and the Bonds being non-recourse debt
of the partnership (or, if there is only one Certificateholder, that the Trust shall be disregarded as an entity separate from such Holder, with the assets held by the Trust being treated as assets of the Holder and the Bonds being treated as non-recourse debt of the Holder). The parties agree that, unless otherwise required by appropriate tax authorities or unless the Trust is disregarded as an entity separate from its sole Certificateholder for income and franchise tax purposes, 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 Trust as a partnership for such tax purposes pursuant to Section 2.11(k). The parties agree that no election will be made to treat the Trust or the Owner Trust Estate as a real estate mortgage investment conduit as defined in Section 860D of the Code. 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. The Owner Trustee shall file the Certificate of Trust with the Secretary of State.

 

	 
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Section 2.7.   Liability of the Holders.

 

No Holder shall have any personal liability for any liability or obligation of the Trust. The Certificates shall be fully paid and non-assessable.

 

Section 2.8.   Title to Trust Property.

 

(a)  Subject to the Indenture, legal title to all of 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 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 and/or a separate trustee, as the case may be.

 

(b)  The Certificateholders shall not have legal title to any part of the Owner Trust Estate. No transfer by operation of law or otherwise of any interest of the Certificateholders shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an Accounting or to the transfer to it of any part of the Owner Trust Estate.

 

Section 2.9.   Situs of Trust.

 

The Trust will be located and administered in the state of Delaware. All accounts maintained at a bank by the Owner Trustee on behalf of the Trust shall be located in the State of Delaware, the State of _____________________, or the State of _________. The Trust shall not have any employees; provided however, nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware. Payments will be received by the Trust only in Delaware, New York, ____________________, or _________, and payments will be made by the Trust only from Delaware, New York, _______________________, or _________. The only office of the Trust will be at the Corporate Trust Office in Delaware.

 

Section 2.10.   Representations and Warranties of the Company; Covenant of the Company.

 

(a)  The Company hereby represents and warrants to the Owner Trustee and the Bond Insurer that:

 

(i)  The Company 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.

 

	 
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(ii)  The Company has the power and authority to execute and deliver this Agreement and to carry out its terms; the Company has full power and authority to transfer and assign the property to be transferred and assigned to and deposited with the Trust and the Company has duly authorized such transfer and assignment and deposit to the Trust by all necessary corporate action; and the execution, delivery and performance of this Agreement has been duly authorized by the Company by all necessary corporate action.

 

(iii)  The consummation of the transactions contemplated by this 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 certificate of incorporation or by-laws of the Company, or any indenture, agreement, or other instrument to which the Company 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 Company's knowledge, any order,
rule, or regulation applicable to the Company of any court or of any Federal or state regulatory body, administrative agency, or other governmental instrumentality having jurisdiction over the Company or its properties.

 

(iv)  There are no proceedings or investigations pending or notice of which has been received in writing before any court, regulatory body, administrative agency, or other governmental instrumentality having jurisdiction over the Company or its properties: (x) asserting the invalidity of this Agreement, (y) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, or (z) seeking any determination or ruling that should reasonably be expected to materially and adversely affect the performance by the Company of its obligations under, or the validity or enforceability of, this Agreement.

 

(v)  The Company is not in violation of, and its execution and delivery of this Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law, any order, or decree of any court or arbiter, or any order, regulation, or demand of any federal, state, or local governmental or regulatory authority, which violation is likely to affect materially and adversely either the ability of the Company to perform its obligations under this Agreement or the financial condition of the Company.

 

(vi)  The assignment of the Mortgage Loans to the Trust as contemplated herein is not subject to any bulk transfer or similar law in effect in any applicable jurisdiction;

 

(vii)  The Company has no knowledge of any recent adverse financial condition or event with respect to itself that is likely to materially and adversely affect its ability to perform its obligations under this Agreement.

 

(viii)  The Company has not failed to obtain any consent, approval, authorization, or order of, and has not failed to cause any registration or qualification with, any court or regulatory authority or other governmental body having jurisdiction over the Company, which consent, approval, authorization, order, registration, or qualification is required for, and the absence of which would materially and adversely affect, the legal and valid execution, delivery, and performance of this Agreement by the Company. No consent or approval of any other person or entity is necessary for the Company to transfer the Mortgage Loans to the Trust as contemplated herein, or, if any such consent or approval is necessary,
such consent or approval has previously been obtained.

 

(ix)  Immediately prior to the transfer and assignment herein contemplated, the Company held good, marketable, and indefeasible title to, and was the sole owner of, each Mortgage Loan conveyed by the Company subject to no liens, charges, mortgages, encumbrances, or rights of others, except with respect to liens that will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein contemplated, the Trust will hold good, marketable, and indefeasible title to, and be the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances, or rights of others and the assignment of the Mortgage Loans contemplated hereby is valid and
effective.

 

	 
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(b)  The representations and warranties of __________ with respect to the Mortgage Loans set forth in the Sales Agreement are hereby incorporated by reference in their entirety and are assigned to the Trust in lieu of any other representations and warranties of the Company in respect of the Mortgage Loans. Nothing herein shall be deemed to limit in any respect either the representations and warranties of ____________ or the rights and remedies assigned by the Company to the Trust against _____________ on account of a breach thereof under the Sales Agreement.

 

(c)  Except for the representations and warranties of the Company in Section 2.10(a) hereof, the Company is contributing and conveying the Mortgage Loans, without recourse to the Company and without representations or warranties of any kind, express, or implied, by the Company, whether statutory or otherwise, including, without limitation, any warranties of transfer, merchantability, or fitness for a particular, or the Trust's intended, use, or purposes.

 

(d)  Each Certificateholder covenants with the Owner Trustee that during the continuance of this Agreement, and while it holds Certificates, it will comply in all respects with the provisions of its certificate of incorporation in effect from time to time.

 

Section 2.11.   Federal Income Tax Provisions.

 

If the Trust is treated as a partnership (rather than disregarded as a separate entity) for federal income tax purposes pursuant to Section 2.6, the following provisions shall apply:

 

(a)  A separate capital account (a "Capital Account") shall be established and maintained for each Certificateholder in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv). No Certificateholder shall be entitled to interest on its Capital Account or any capital contribution made by such Holder to the Trust.

 

(b)  Upon termination of the Trust pursuant to Article IX, any amounts available for distribution to Holders shall be distributed to the Holders with positive Capital Account balances in accordance with such balances. For purposes of this Section 2.11(b), the Capital Account of each Holder shall be determined after all adjustments made in accordance with this Section 2.11 resulting from the Trust's operations and from all sales and dispositions of all or any part of the assets of the Trust. Any distributions pursuant to this Section 2.11(b) shall be made by the end of the Taxable Year in which the termination occurs (or, if later, within 90 days after the date of the termination).

 

(c)  No Certificateholder shall be required to restore any deficit balance in its Capital Account. Furthermore, no Holder shall be liable for the return of the Capital Account of, or of any capital contribution made to the Trust by, another Holder.

 

(d)  Profit and loss of the Trust for each Taxable Year shall be allocated to the Certificateholders in accordance with their respective Percentage Interests.

 

(e)  Notwithstanding any provision to the contrary, (i) any expense of the Trust that is a "nonrecourse deduction" within the meaning of Treasury Regulations Section 1.704-2(b)(1) shall be allocated in accordance with the Holders' respective Percentage Interests, (ii) any expense of the Trust that is a "partner nonrecourse deduction" within the meaning of Treasury Regulations Section 1.704-2(i)(2) shall be allocated in accordance with Treasury Regulations Section 1.704-2(i)(1), (iii) if there is a net decrease in Trust Minimum Gain within the meaning of Treasury Regulations Section 1.704-2(f)(1) for any Taxable Year, items of gain and income shall be allocated among the Holders in accordance with Treasury
Regulations Section 1.704- 2(f) and the ordering rules contained in Treasury Regulations Section 1.704-2(j), and (iv) if there is a net decrease in Holder Nonrecourse Debt Minimum Gain within the meaning of Treasury Regulations Section 1.704-2(i)(4) for any Taxable Year, items of gain and income shall be allocated among the Holders in accordance with Treasury Regulations Section 1.704- 2(i)(4) and the ordering rules contained in Treasury Regulations Section 1.704-2(j). A Holder's "interest in partnership profits" for purposes of determining its share of the nonrecourse liabilities of the Trust within the meaning of Treasury Regulations Section 1.752-3(a)(3) shall be such Holder's Percentage Interest.

 

	 
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(f)  If a Holder receives in any Taxable Year an adjustment, allocation, or distribution described in subparagraphs (4), (5), or (6) of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) that causes or increases a negative balance in such Holder's Capital Account that exceeds the sum of such Holder's shares of Trust Minimum Gain and Holder Nonrecourse Debt Minimum Gain, as determined in accordance with Treasury Regulations Sections 1.704-2(g) and 1.704-2(i), such Holder shall be allocated specially for such Taxable Year (and, if necessary, later Taxable Years) items of income and gain in an amount and manner sufficient to eliminate such negative Capital Account balance as quickly as possible as provided in
Treasury Regulations Section 1.704-1(b)(2)(ii)(d). After the occurrence of an allocation of income or gain to a Holder in accordance with this Section 2.11(f), to the extent permitted by Regulations Section 1.704-1(b), items of expense or loss shall be allocated to such Holder in an amount necessary to offset the income or gain previously allocated to such Holder under this Section 2.11(f).

 

(g)  Loss shall not be allocated to a Holder to the extent that such allocation would cause a deficit in such Holder's Capital Account (after reduction to reflect the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such Holder's shares of Trust Minimum Gain and Holder Nonrecourse Debt Minimum Gain. Any loss in excess of that limitation shall be allocated to all the Holders in accordance with their respective Percentage Interests. After the occurrence of an allocation of loss to a Holder in accordance with this Section 2.11(g), to the extent permitted by Treasury Regulations Section 1.704-1(b), profit shall be allocated to such Holder in an amount
necessary to offset the loss previously allocated to such Holder under this Section 2.11(g).

 

(h)  If a Holder transfers any part or all of its Holdership Interest and the transferee is admitted as provided herein (a "Transferee Holder"), the distributive shares of the various items of profit and loss allocable among the Holders during such Taxable Year shall be allocated between the transferor and the Transferee Holder (at the election of the Holders (including the transferor, but excluding the Transferee Holder)) either (i) as if the Taxable Year had ended on the date of the transfer or (ii) based on the number of days of such Taxable Year that each was a Holder without regard to the results of Trust activities in the respective portions of such Taxable Year in which the transferor and
Transferee Holder were Holders.

 

(i)  "Profit" and "loss" and any items of income, gain, expense or loss referred to in this Section 2.11 shall be determined in accordance with federal income tax accounting principles as modified by Treasury Regulations Section 1.704-1(b)(2)(iv), except that profits and losses shall not include items of income, gain, and expense that are specially allocated pursuant to Sections 2.11(e), 2.11(f) or 2.11(g) hereof. All allocations of income, profits, gains, expenses, and losses (and all items contained therein) for federal income tax purposes shall be identical to all allocations of such items set forth in this Section 2.11, except as otherwise required by Section 704(c) of the Code and Section
1.704-1(b)(4) of the Treasury Regulations.

 

(j)  The taxable year of the Trust (the "Taxable Year") shall be the calendar year or such other taxable year as may be required by Section 706(b) of the Code.

 

(k)  At the Trust's expense, the Owner Trustee shall (i) prepare, or cause to be prepared, and file such tax returns relating to the Trust (including a partnership information return, IRS Form 1065) as are required by applicable federal, state, and local law, (ii) cause such returns to be signed in the manner required by law, (iii) make such elections as may from time to time be required or appropriate under any applicable law so as to maintain the Trust's classification as a partnership for tax purposes, (iv) prepare and deliver, or cause to be prepared and delivered, to the Holders, no later than 75 days after the close of each Taxable Year, a Schedule K-1, a copy of the Trust's informational tax return
(IRS Form 1065), and such other reports (collectively, the "Annual Tax Reports") setting forth in sufficient detail all such information and data with respect to the t transactions effected by or involving the Trust during such Taxable Year as shall enable the each Holder to prepare its federal, state, and local income tax returns in accordance with the laws then prevailing, and (v) collect, or cause to be collected, any withholding tax as described in Section 5.2(c) with respect to income or distributions to Certificateholders.

 

	 
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(l)  The Holders shall designate a Holder as the tax matters partner for the Trust within the meaning of Section 6231(a)(7) of the Code (the Tax Matters Partner"), and shall notify the Indenture Trustee, the Manager (as defined in Section 5.2(d)) and the Owner Trustee in writing of the name and address of such Tax Matters Partner. The Tax Matters Partner shall have the right and obligation to take all actions authorized and required, respectively, by the Code for the Tax Matters Partner. The Tax Matters Partner shall have the right to retain professional assistance in respect of any audit or controversy proceeding initiated with respect to the Trust by the Internal Revenue Service or any state or local
taxing authority, and all expenses and fees incurred by the Tax Matters Partner on behalf of the Trust shall constitute expenses of the Trust. In the event the Tax Matters Partner receives notice of a final partnership adjustment under Section 6223(a)(2) of the Code, the Tax Matters Partner shall either (i) file a court petition for judicial review of such adjustment within the period provided under Section 6226(a) of the Code, a copy of which petition shall be mailed to all other Holders on the date such petition is filed, or (ii) mail a written notice to all other Holders, within such period, that describes the Tax Matters Partner's reasons for determining not to file such a petition.

 

(m)  Except as otherwise provided in this Section 2.11, the Holders shall instruct the Owner Trustee as to whether to make any available election under the Code or any applicable state or local tax law on behalf of the Trust. Notwithstanding the foregoing, any Holder may request that the Owner Trustee make an election under section 754 of the Code; provided that the requesting Holder shall agree to bear the cost of preparing such election and any additional accounting expenses of the Trust incurred as a result of such election.

 

ARTICLE III
CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.1.   Initial Ownership.

 

Upon the formation of the Trust by the contribution by the Company pursuant to Section 2.5 and until the issuance of the Certificates, the Company shall be the sole beneficiary of the Trust.

 

Section 3.2.   The Certificates.

 

The Certificates shall be issued without a principal amount and shall evidence beneficial ownership interests in the Trust. The Certificates shall be printed, lithographed, or engraved or may be produced in any other manner as is reasonably acceptable to the Owner Trustee, as evidenced by its execution thereof. The Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Trust Officer of the Owner Trustee. 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 valid, 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 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 Section 3.4.

 

Section 3.3.   Execution, Authentication and Delivery of Trust Certificates.

 

Concurrently with the initial transfer of the Mortgage Loans to the Trust pursuant to Article XI hereof, the Owner Trustee shall cause the Certificates, representing 100% of the Percentage Interests of the Trust Interest, to be executed on behalf of the Trust, authenticated and delivered to ________________________, as the Company's designee. No Certificate shall entitle its holder to any benefit under this Agreement, or shall 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 Owner Trustee's authenticating agent, by manual or facsimile 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.

 

	 
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Section 3.4.   Registration of Transfer and Exchange of Trust Certificates.

 

The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.8, a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the Owner Trustee shall provide for the registration of Certificates and of transfers and exchanges of Certificates as herein provided. The Owner Trustee shall be the initial Certificate Registrar.

 

Upon surrender for registration of transfer of any Certificate at the office or agency maintained pursuant to Section 3.8, the Owner Trustee shall execute, authenticate and deliver (or shall cause its authenticating agent to authenticate and deliver), in the name of the designated transferee or transferees, one or more new Certificates of a like Percentage Interest 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 a like Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency maintained pursuant to Section 3.8.

 

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 Owner Trustee and the Certificate Registrar duly executed by the Certificateholder or his attorney duly authorized in writing. In addition, each Certificate presented or surrendered for registration of transfer and exchange must be accompanied by a letter from the Prospective Holder certifying as to the representations set forth in Section 3.11(a), (b), and (c). Each Certificate surrendered for registration of transfer or exchange shall be canceled and disposed of by the Owner Trustee 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.

 

The preceding provisions of this Section notwithstanding, the Owner Trustee shall not make and the Certificate Registrar shall not register transfer or exchanges of Certificates for a period of 15 days preceding the Payment Date with respect to the Certificates.

 

Section 3.5.   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 harmless, then in the absence of notice that such Certificate shall have been acquired by a bona fide purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner Trustee, or the Owner Trustee'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 Percentage Interest. In connection with the issuance of any new
Certificate under this Section, 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 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.

 

	 
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Section 3.6.   Persons Deemed Owners.

 

Each person by virtue of becoming a Certificateholder in accordance with this Agreement shall be deemed to be bound by the terms of this Agreement. Prior to due presentation of a Certificate for registration of transfer, the Owner Trustee or the Certificate Registrar may treat the Person in whose name any Certificate shall be registered in the Certificate Register as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.2 and for all other purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar shall be bound by any notice to the contrary.

 

Section 3.7.   Access to List of Holders' Names and Addresses. 

 

The Owner Trustee shall furnish or cause to be furnished to the Servicer, the Company and the Trust Paying Agent immediately prior to each Payment Date, a list of the names and addresses of the Certificateholders as of the most recent Record Date. If three or more Certificateholders or one or more Holders of Certificates, together evidencing Percentage Interests totaling not less than 25%, apply in writing to the Owner Trustee, and such application states that the applicants desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and such application is accompanied by a copy of the communication that such applicants propose to transmit, then the Owner Trustee shall, within five Business Days after the receipt of such application, afford such
applicants access during normal business hours to the current list of Certificateholders. Each Certificateholder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Company, 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 3.8.   Maintenance of Office or Agency.

 

The Owner Trustee shall maintain 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 ________________________ as its principal corporate trust office for such purposes. The Owner Trustee shall give prompt written notice to the Company and to the Certificateholders of any change in the location of the Certificate Register or any such office or agency.

 

Section 3.9.   Appointment of Trust Paying Agent.

 

The Owner Trustee hereby appoints ___________________, as Trust Paying Agent under this Agreement. The Trust Paying Agent shall make distributions to Certificateholders from the Certificate Distribution Account pursuant to Section 5.2 and shall report to the Owner Trustee on the Payment Date via facsimile transmission of a distribution statement the amounts of such distributions to the Certificateholders. The Trust Paying Agent shall have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of making the distributions referred to above. In the event that __________, shall no longer be the Trust Paying Agent hereunder, the Owner Trustee shall appoint a successor to act as Trust Paying Agent (which shall be a bank or trust company) acceptable to the Certificateholders and
the Bond Insurer. The Owner Trustee shall cause such successor Trust Paying Agent or any additional Trust Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Trust Paying Agent or additional Trust Paying Agent shall agree with the Owner Trustee that as Trust Paying Agent, such successor Trust Paying Agent or additional Trust Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders. After one year from the date of receipt, the Trust Paying Agent shall promptly return all unclaimed funds to the Owner Trustee, and upon removal of a Trust Paying Agent, such Trust Paying Agent shall also return all funds in its possession to the Owner Trustee. The provisions of Sections 7.1, 7.3(b), 7.4, 8.1, and 10.2 as to resignations, shall apply to the Trust Paying Agent to the same extent
as if it were named therein and, to the extent applicable, to any other paying agent appointed hereunder. Any reference in this agreement to the Trust Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

	 
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Section 3.10.   Restrictions on Transfer of Certificates.

 

(a)  Each prospective purchaser and any subsequent transferee of a Certificate (each, a "Prospective Holder"), other than ____________________, shall represent and warrant, in writing, to the Owner Trustee and the Certificate Registrar and any of their respective successors that:

 

(i)  Such Person is (A) a "qualified institutional buyer" as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and is aware that the seller of the Certificate may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is acquiring such Certificate for its own account or for the account of one or more qualified institutional buyers for whom it is authorized to act, or (B) a Person involved in the organization or operation of the Trust or an affiliate of such Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended (including, but not limited to, _____________________.

 

(ii)  Such Person understands that the Certificates have not been and will not be registered under the Securities Act and may be offered, sold, pledged, or otherwise transferred only to a person whom the seller reasonably believes is (C) a qualified institutional buyer or (D) a Person involved in the organization or operation of the Trust or an affiliate of such Person, in a transaction meeting the requirements of Rule 144A under the Securities Act and in accordance with any applicable securities laws of any state of the United States.

 

(iii)  Such Person understands that the Certificates bear a legend to the following effect:

 

"THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THIS CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO, _______________________________ IN A TRANSACTION THAT IS REGISTERED UNDER
THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS."

 

(b)  By its acceptance of a Certificate, each Prospective Holder agrees and acknowledges that no legal or beneficial interest in all or any portion of any Certificate may be transferred directly or indirectly to an entity that holds residual securities as nominee to facilitate the clearance and settlement of such securities through electronic book-entry changes in Accounts of participating organizations (a "Book-Entry Nominee") and any such purported transfer shall be void and have no effect. 

 

(c)  No transfer of this certificate or any beneficial interest therein shall be made to any person unless the Owner Trustee has received a certificate from the Transferee to the effect that such transferee (i) is not a person which is an employee benefit plan, trust, or account subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of the Code or a governmental plan, defined in Section 3(32) of ERISA subject to any federal, state or local law which is, to a material extent, similar to the foregoing provisions of ERISA or the Code (any such person being a "plan") and (ii) is not an entity, including an insurance company separate account or general
account, whose underlying assets include plan assets by reason of a plan's investment in the entity.

 

	 
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(d)  The Owner Trustee shall not execute, and shall not countersign and deliver, a Certificate in connection with any transfer thereof unless the transferor shall have provided to the Owner Trustee a certificate, substantially in the form attached as Exhibit C to this Agreement, signed by the transferee, which certificate shall contain the consent of the transferee to any amendments of this Agreement as may be required to effectuate further the foregoing restrictions on transfer of the Certificates to Book-Entry Nominees, and an agreement by the transferee that it will not transfer a Certificate without providing to the Owner Trustee a certificate substantially in the form attached as Exhibit C to this
Agreement.

 

(e)  The Certificates shall bear an additional legend referring to the restrictions contained in paragraph (b) above.

 

ARTICLE IV
ACTIONS BY OWNER TRUSTEE

 

Section 4.1.   Prior Notice to Holders with Respect to Certain Matters. 

 

With respect to the following matters, the Owner Trustee shall not take action, and the Certificateholders shall not direct the Owner Trustee to take any action, unless at least 30 days before the taking of such action, the Owner Trustee shall have notified the Certificateholders and the Bond Insurer in writing of the proposed action and neither the Certificateholders nor the Bond Insurer shall have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders and/or the Bond Insurer have withheld consent or the Certificateholders have provided alternative direction (any direction by the Certificateholders shall require the prior consent of the Bond Insurer):

 

(a)  the initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in connection with the collection of the Mortgage 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 the Mortgage 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 or other change to this Agreement or any Basic Document in circumstances where the consent of any Holder or the Bond Insurer is required;

 

(d)  the amendment or other change to this Agreement or any Basic Document in circumstances where the consent of any Holder or the Bond Insurer is not required and such amendment materially adversely affects the interest of the Certificateholders;

 

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

 

(f)  the consent to the calling or waiver of any default of any Basic Document; 

 

(g)  the consent to the assignment by the Indenture Trustee or Servicer of their respective obligations under any Basic Document;

 

(h)  except as provided in Article IX hereof, dissolve, terminate or liquidate the Trust in whole or in part;

 

(i)  merge or consolidate the Trust with or into any other entity, or convey or transfer all or substantially all of the Trust's assets to any other entity;

 

	 
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(j)  cause the Trust to incur, assume or guaranty any indebtedness other than as set forth in this Agreement or the Basic Documents;

 

(k)  do any act that conflicts with any other Basic Document; 

 

(l)  do any act which would make it impossible to carry on the ordinary business of the Trust as described in Section 2.3 hereof;

 

(m)  confess a judgment against the Trust;

 

(n)  possess Trust assets, or assign the Trust's right to property, for other than a Trust purpose;

 

(o)  cause the Trust to lend any funds to any entity; or 

 

(p)  change the Trust's purpose and powers from those set forth in this Trust Agreement.

 

In addition the Trust shall not commingle its assets with those of any other entity. The Trust shall maintain its financial and accounting books and records separate from those of any other entity. Except as expressly set forth herein, the Trust shall pay its indebtedness, operating expenses, and liabilities from its own funds, and the Trust shall not pay the indebtedness, operating expenses, and liabilities of any other entity. The Trust shall maintain appropriate minutes or other records of all appropriate actions and shall maintain its office separate from the offices of the Company and ________________.

 

The Owner Trustee shall not have the power, except upon the direction of the Certificateholders with the consent of the Bond Insurer, and to the extent otherwise consistent with the Basic Documents, to (i) remove or replace the Servicer or the Indenture Trustee, (ii) institute proceedings to have the Trust declared or adjudicated a bankruptcy or insolvent, (iii) consent to the institution of bankruptcy or insolvency proceedings against the Trust, (iv) file a petition or consent to a petition seeking reorganization or relief on behalf of the Trust under any applicable federal or state law relating to bankruptcy, (v) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, or any similar official of the Trust or a substantial portion of the property of the Trust, (vi) make any
assignment for the benefit of the Trust's creditors, (vii) cause the Trust to admit in writing its inability to pay its debts generally as they become due, and (viii) take any action, or cause the Trust to take any action, in furtherance of any of the foregoing (any of the above, a "Bankruptcy Action"). So long as the Indenture and the Insurance Agreement remain in effect and no Bond Insurer Default exists, no Certificateholder shall have the power to take, and shall not take, any Bankruptcy Action with respect to the Trust or direct the Owner Trustee to take any Bankruptcy Action with respect to the Trust.

 

Section 4.2.   Action by Holders 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 consent and approval of the Bond Insurer, the unanimous prior approval of all Certificateholders and the Bond Insurer and the delivery to the Owner Trustee by each such Certificateholder of a certification that such Certificateholder reasonably believes that the Trust is insolvent.

 

Section 4.3.   Restrictions on Holders' Power. 

 

The Certificateholders shall not direct the Owner Trustee to take or 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 Agreement or any of the Basic Documents or would be contrary to Section 2.3 nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

	 
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Section 4.4.   Majority Control.

 

Except as expressly provided herein, any action that may be taken by the Certificateholders under this Agreement may be taken by the Holders of Certificates evidencing more than 50% of the Percentage Interest in the Trust Interest and such action shall be binding upon all Certificateholders. Except as expressly provided herein, any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by Holders of Certificates evidencing more than 50% of the Percentage Interest in the Trust Interest at the time of the delivery of such notice and such action shall be binding upon all Certificateholders.

 

ARTICLE V
APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.1.   Establishment of Certificate Distribution Account.

 

The Owner Trustee shall cause the Trust Paying Agent, for the benefit of the Certificateholders, to establish and maintain with ________________________, for the benefit of the Owner Trustee one or more Accounts that while the Trust Paying Agent holds such Account shall be entitled "Certificate Distribution Account, _________________________, as Trust Paying Agent, in trust for the Holders of Certificates evidencing beneficial interests in _______________________________ Trust 200_-__." Funds shall be deposited in the Certificate Distribution Account as required by the Indenture or, following satisfaction and release of the Indenture, by the Servicing Agreement.

 

All of the right, title, and interest of the Owner Trustee in all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof shall be held for the benefit of the Certificateholders, the Bond Insurer, and such other persons entitled to distributions therefrom. Except as otherwise expressly provided herein, the Certificate Distribution Account shall be under the sole dominion and control of the Owner Trustee for the benefit of the Certificateholders and the Bond Insurer.

 

Section 5.2.   Application of Trust Funds.

 

(a)  On each Payment Date, the Trust Paying Agent shall distribute to the Certificateholders, on the basis of their respective Percentage Interests, all amounts then on deposit in the Certificate Distribution Account.

 

(b)  On each Payment Date, the Trust Paying Agent shall send to Certificateholders the statement provided to the Owner Trustee by the Indenture Trustee pursuant to Section 2.08(d) of the Indenture with respect to such Payment Date. If the Trust Paying Agent is an entity other than the Indenture Trustee, the Owner Trustee shall provide a copy of such statement to the Trust Paying Agent to enable it to perform its duties under this Section 5.2(b).

 

(c)  In the event that any withholding tax is imposed under federal, state, or local tax on the Trust's payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section. The Owner Trustee, and the Trust Paying Agent on its behalf, is hereby authorized and directed to retain in the Certificate Distribution Account 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 Certificate Registrar will provide the Trust Paying Agent with a statement indicating the amount of any such withholding tax. 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 Trust and remitted to the appropriate taxing authority from the Certificate Distribution Account at the direction of the Owner Trustee or the Trust Paying Agent on its behalf. If there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a Certificateholder who is a Non-U.S. Person), the Trust Paying Agent may in its sole discretion withhold such amounts in accordance with this paragraph (c). In the event that a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and the Trust Paying Agent shall reasonably cooperate with such
Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the Owner Trustee for any out-of-pocket expenses incurred.

 

	 
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(d)  Notwithstanding anything to the contrary herein, at any time after the Indenture is no longer in effect but while this Agreement remains in effect, the Bond Administrator shall be entitled to a fee on each Payment Date equal to the Indenture Trustee Fee that would have been payable to the Indenture Trustee on such Payment Date if the Indenture were still in effect. Such fee shall be distributed to the Bond Administrator from funds in the Certificate Distribution Account prior to distribution of any such funds to Certificateholders. Also, in such event, the Servicer shall provide the same information to the Bond Administrator that it would have provided to the Indenture Trustee pursuant to the
Servicing Agreement, as well as any other information concerning the Mortgage Loans as may be reasonably requested by the Bond Administrator to enable the Bond Administrator to perform its obligations hereunder. On each such Payment Date, the Trust Paying Agent shall mail to each Certificateholder a statement detailing the amount remitted to the Trust Paying Agent by the Servicer on the related Deposit Date and setting forth the amount of the Monthly Servicing Fee and fees paid to the Bond Administrator with respect to such Payment Date, and the aggregate amount distributed to Certificateholders on such Payment Date.

 

Section 5.3.   Method of Payment.

 

Distributions required to be made to Certificateholders on any Payment Date shall be made to each Certificateholder of record on the preceding Record Date either by wire transfer, in immediately available funds, to the account of such Holder at a bank or other entity having appropriate facilities therefore, if such Certificateholder shall have provided to the Trust Paying Agent 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.

 

Section 5.4.   Segregation of Moneys; No Interest.

 

Subject to Sections 5.1 and 5.2, moneys received by the Trust Paying Agent hereunder and deposited into the Certificate Distribution Account will be segregated except to the extent required otherwise by law and, if the Holders of more than 50% of the Certificates so direct, shall be invested in Permitted Investments maturing no later than one Business Day prior to the related Payment Date at the direction of such Certificateholders. The Trust Paying Agent shall not be liable for payment of any interest or losses in respect of such moneys. Investment gains shall be for the account of and paid to the Certificateholders.

 

ARTICLE VI
AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.1.   General Authority.

 

The Owner Trustee is authorized and directed to execute and deliver or cause to be executed and delivered the Bonds, the Certificates, and 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 in Article III, in each case, in such form as the Owner Trustee shall approve, as evidenced conclusively by the Owner Trustee's execution thereof. In addition, the Owner Trustee is authorized and directed, on behalf of the Trust, to execute and deliver to the Authenticating Agent, the Issuer Request and the Issuer Order referred to in Section 2.11 of the Indenture, in such form as the Company shall approve, as evidenced
conclusively by the Owner Trustee's or the Company's execution thereof, directly to the Authenticating Agent to authenticate and deliver Bonds in the aggregate principal amount of $___________. In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust, pursuant to the Basic Documents.

 

	 
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Section 6.2.   General Duties.

 

It shall be the duty of the Owner Trustee:

 

(a)  To discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the Basic Documents to which the Trust is a party and to administer the Trust in the interest of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Agreement; the Owner Trustee shall not be responsible for taking any action with respect to the Indenture or any other of the Basic Documents unless a Responsible Office of the Owner Trustee has actual knowledge of the facts which require such action or has received written notice of the need to take such action; the Owner Trustee shall not be responsible for any matter regarding the Investment
Company Act of 1940, as amended (or any successor statute) or the rules or regulations thereunder; and

 

(b)  To obtain and preserve the Issuer's qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Bonds, the Mortgage Loans, and each other instrument and agreement included in the Trust Estate.

 

Section 6.3.   Action upon Instruction.

 

(a)  Subject to 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 but only to the extent consistent with the limited purpose of the Trust. Such direction may be exercised at anytime by written instruction of the Certificateholders pursuant to Article IV. Without limiting the generality of the foregoing, the Owner Trustee shall act as directed by the Certificateholders in connection with Bond redemptions requested by the Certificateholders, and shall take all actions and deliver all documents that the Trust is required to take and deliver in accordance with Section 4.01 and Article X
of the Indenture in order to effect any redemption requested by the Certificateholders.

 

(b)  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 Agreement or under any Basic Document, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders and the Bond Insurer requesting instruction from the Certificateholders 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 instruction of the Certificateholders received, 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 taking such action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction.

 

(d)  In the event that the Owner Trustee is unsure as to the application of any provision of this 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 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 may give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction and, to the extent that the Owner Trustee acts or refrains from acting in good
faith in accordance with any such instruction received, the Owner Trustee shall not be liable, on account of such action or inaction, 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 taking such action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction.

 

	 
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Section 6.4.   No Duties Except as Specified in this Agreement, the Basic Documents or Any 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 by the terms of this Agreement, any Basic Document, or in any document or written instruction received by the Owner Trustee pursuant to Section 6.3; and no implied duties or obligations shall be read into this 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 record this 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 6.5.   No Action Except Under Specified Documents or Instructions.

 

The Owner Trustee shall not manage, control, use, sell, dispose of, or otherwise deal with any part of the Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this 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 6.3.

 

Section 6.6.   Restrictions.

 

The Owner Trustee shall not take any action (a) that is inconsistent with the purposes of the Trust set forth in Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee, would result in the Trust's 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.

 

ARTICLE VII
CONCERNING THE OWNER TRUSTEE

 

Section 7.1.   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 Agreement and the Basic Documents. The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Owner Trust Estate upon the terms of the Basic Documents and this 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 or negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 7.3 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)  the Owner Trustee shall not be liable for any error of judgment made by a responsible officer of the Owner Trustee;

 

(b)  the Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions of the Certificateholders; 

 

	 
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(c)  no provision of this 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 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;

 

(d)  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 Bonds;

 

(e)  the Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Company 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, other than the certificate of authentication on the Certificates, and the Owner Trustee shall in no event assume or incur any liability, duty, or obligation to any Bondholder or to any Certificateholder, other than as expressly provided for herein and in the Basic Documents; 

 

(f)  the Owner Trustee shall not be liable for the default or misconduct of the Seller, the Company, the Indenture Trustee or the 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 Agreement or the Basic Documents that are required to be performed by the Indenture Trustee under the Indenture or the Servicer under the Servicing Agreement; and

 

(g)  the Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct, or defend any litigation under this Agreement or otherwise or in relation to this 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 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 gross negligence or willful misconduct in the performance of any such act.

 

Section 7.2.   Furnishing of Documents.

 

The Owner Trustee shall furnish to the Certificateholders promptly upon receipt of a written request therefore, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements, and any other instruments furnished to the Owner Trustee under the Basic Documents. On behalf of the Owner Trustee, the Company shall furnish to Bondholders promptly upon written request therefore, copies of the Servicing Agreement and the Indenture.

 

Section 7.3.   Representations and Warranties.

 

(a)  The Owner Trustee hereby represents and warrants to the Company for the benefit of the Certificateholders, that:

 

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

 

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

 

(iii)  Neither the execution nor the delivery by it of this 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 by-laws.

 

	 
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(b)  The Trust Paying Agent hereby represents and warrants to the Company and the Bond Insurer for the benefit of the Certificateholders, that:

 

(i)  It is a [banking association] duly organized and validly existing in good standing under the laws of the _______________. It has all requisite corporate power and authority to execute, deliver, and perform its obligations under this Agreement.

 

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

 

(iii)  Neither the execution nor the delivery by it of this 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 law, governmental rule, or regulation governing the banking or trust powers of the Trust Paying Agent or any judgment or order binding on it, or constitute any default under its charter documents or by-laws.

 

Section 7.4.   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 the 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 trusts hereunder and in the performance of its duties and obligations under this Agreement or the Basic Documents, the Owner Trustee (i) may act directly or through its agents or attorneys 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 or attorneys if such agents or attorneys shall 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. The Owner Trustee shall not be liable for anything done, suffered, or omitted in good faith by it
in accordance with the written opinion or advice of any such counsel, Accountants, or other such persons and not contrary to this Agreement or any Basic Document.

 

Section 7.5.   Not Acting in Individual Capacity.

 

Except as provided in this Article VII, 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 Agreement or any Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof.

 

Section 7.6.   Owner Trustee Not Liable for Certificates or Mortgage Loans.

 

The recitals contained herein and in the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates) shall be taken as the statements of the Company, 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 Agreement, of any Basic Document, of the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates and as specified in Section 7.3), of the Bonds, or of any Mortgage Loans or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity, and enforceability of any Mortgage Loan, or the perfection and priority of any security interest created by any
Mortgage Loan or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to Certificateholders under this Agreement or the Bondholders under the Indenture, including, without limitation, the existence, condition and ownership of any Mortgaged Property, the existence and enforceability of any insurance thereon, the existence and contents of any Mortgage Loan on any computer or other record thereof, the validity of the assignment of any Mortgage Loan to the Trust or of any intervening assignment, the completeness of any Mortgage Loan, the performance or enforcement of any Mortgage Loan, the compliance by the Company or the Servicer 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 Indenture Trustee or the Servicer or any subservicer taken in the name of the Owner
Trustee.

 

	 
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Section 7.7.   Owner Trustee May Own Certificates and Bonds.

 

The Owner Trustee in its individual or any other capacity may become the owner or pledgee of Certificates or Bonds and may deal with the Company, the Indenture Trustee and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee.

 

Section 7.8.   Licenses.

 

The Owner Trustee shall cause the Trust to use its best efforts to obtain and maintain the effectiveness of any licenses required in connection with this Agreement and the Basic Documents and the transactions contemplated hereby and thereby until such time as the Trust shall terminate in accordance with the terms hereof.

 

ARTICLE VIII
COMPENSATION OF OWNER TRUSTEE

 

Section 8.1.   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 between ____________________________ and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by _______________________ for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts, and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder. Such fees and expenses are as set forth on Exhibit D hereto. The Certificateholders shall be responsible and liable for the payment of such fees and expenses, pro rata based upon their respective Percentage Interests, and shall pay such fees and
expenses promptly after receipt of a written invoice therefore from the Owner Trustee.

 

Section 8.2.   Indemnification.

 

The Certificateholders shall be liable as obligor for, and shall indemnify the Owner Trustee and the Trust Paying Agent and their respective 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 any Indemnified Party in any way relating to or arising out of this Agreement, the Basic Documents, the Owner Trust Estate, the administration of the Owner Trust Estate, or the action or inaction of the Owner Trustee or the Trust Paying Agent
hereunder, except only that the Certificateholders shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 7.1. The indemnities contained in this Section shall survive the resignation or termination of the Owner Trustee or the Trust Paying Agent or the termination of this Agreement. In any event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Certificateholders will be entitled to participate therein, with counsel selected by such Holders and reasonably satisfactory to the Indemnified Parties, and after notice from Certificateholders to the Indemnified Parties of its election to assume the defense thereof, the Certificateholders shall not be liable to the Indemnified Party under this Section 8.2 for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense of such action;
provided, however, that this sentence shall not be in effect if (1) the Certificateholders shall not have employed counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party within a reasonable time after notice of commencement of the action or (2) the Certificateholders shall have authorized the employment of counsel for the Indemnified Party at the expense of the Certificateholders. If the Certificateholders assume the defense of any such proceeding, they shall be entitled to settle such proceeding without any liability being assessed against any Indemnified Party or, if such settlement provides for release of any such Indemnified Party without any liability being assessed against any Indemnified Party in connection with all matters relating to the proceeding which have been asserted against such Indemnified Party in such proceeding by the other parties to such settlement, without the consent of such Indemnified Party, but otherwise only with the consent of such
Indemnified Party. Certificateholders shall be liable for this indemnification obligation pro rata, based upon their respective Percentage Interests.

 

	 
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Section 8.3.   Payments to the Owner Trustee.

 

Any amounts paid to the Owner Trustee or the Trust Paying Agent pursuant to this Article VIII shall be deemed not to be a part of the Owner Trust Estate immediately after such payment. 

 

Section 8.4.   Servicer Liability.

 

In the event the Certificateholders fail to pay all or any portion of any fees, expenses, or indemnification amounts to the Owner Trustee or the Trust Paying Agent for which they are liable under this Article VIII, the Servicer shall pay such amounts to the Owner Trustee or the Trust Paying Agent, as the case may be, promptly after receipt of an invoice therefore from the party entitled thereto.

 

ARTICLE IX
TERMINATION OF TRUST AGREEMENT

 

Section 9.1.   Termination of Trust Agreement.

 

(a)  This Agreement (other than Article VIII) and the Trust shall terminate and be of no further force or effect on the earlier of: (i) the final payment or other liquidation of the [Mortgage Loans and the disposition of all REO Properties] and the remittance of all funds due hereunder with respect to such [Mortgage Loans and REO Properties] or the disposition of the [Mortgage Loans and REO Properties] at the direction of a majority of the Certificateholders, in either case after the satisfaction and discharge of the Indenture pursuant to Section 4.01 of the Indenture; and (ii) the expiration of 21 years from the death of the last survivor of the descendants of John F. Kennedy (the President of the United
States). The bankruptcy, liquidation, dissolution, death, or incapacity of any Certificateholder or the Company shall not (x) operate to terminate this Agreement or the Trust, nor (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 Owner Trust Estate, nor (z) otherwise affect the rights, obligations, and liabilities of the parties hereto.

 

(b)  Except as provided in Section 9.1(a) above, none of the Company, the Servicer, the Bond Insurer, nor any Certificateholder shall be entitled to revoke or terminate the Trust.

 

	 
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(c)  Notice of any termination of the Trust, specifying the Payment Date upon which the Certificateholders shall surrender their Certificates to the Owner Trustee for payment of the final distributions and cancellation, shall be given by the Owner Trustee to the Certificateholders, the Bond Insurer, the Rating Agencies and the Trust Paying Agent mailed within five Business Days of receipt by the Owner Trustee of notice of such termination pursuant to Section 9.1(a) above, which notice given by the Owner Trustee shall state (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 Owner Trustee
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 Owner Trustee therein specified. The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Trust Paying Agent at the time such notice is given to Certificateholders. The Owner Trustee shall give notice to the Trust Paying Agent of each presentation and surrender of Certificates promptly, and the Trust Paying Agent shall promptly cause to be distributed to the related Certificateholders amounts distributable on such Payment Date pursuant to Section 5.2(a).

 

(d)  Upon the winding up of the Trust and its termination, the Owner Trustee shall cause the Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3820 of the Business Trust Statute.

 

ARTICLE X
SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 10.1.   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 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) a rating of at least "Baa3" by Moody's and "A-1" by Standard & Poor's [and being acceptable to the Bond Insurer]. 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, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 10.2. 

 

Section 10.2.   Resignation or Removal of Owner Trustee.

 

The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Servicer, the Indenture Trustee, and the Bond Insurer. Upon receiving such notice of resignation, the Servicer shall promptly appoint a successor Owner Trustee (acceptable to the Bond Insurer) 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 or the Bond Insurer 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 10.1 and shall fail to resign after written request therefore by the Certificateholders or the Servicer, 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 Bond Insurer, or the Certificateholders or the Servicer with the consent of the Bond Insurer, may remove the Owner Trustee. If the Certificateholders or the Servicer or the Bond Insurer shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Bond Insurer, or the Servicer with the consent of the Bond Insurer, shall promptly appoint a successor Owner Trustee 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 payment of all fees owed to the outgoing Owner Trustee.

 

	 
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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 10.3 written approval by the Bond Insurer and payment of all fees and expenses owed to the outgoing Owner Trustee. The Servicer shall provide notice of such resignation or removal of the Owner Trustee to each of the Rating Agencies, the Indenture Trustee, the Trust Paying Agent and the Bond Insurer.

 

Section 10.3.   Successor Owner Trustee.

 

Any successor Owner Trustee appointed pursuant to Section 10.2 shall execute, acknowledge, and deliver to the Company, the Indenture Trustee, the Bond Insurer, and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner Trustee (if acceptable to the Bond Insurer), without any further act, deed, or conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its predecessor under this 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 moneys held by it under this
Agreement; and the Company 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 unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 10.1.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Company shall mail notice of the successor of such Owner Trustee to all Certificateholders, the Indenture Trustee, the Trust Paying Agent, the Bondholders, the Bond Insurer and the Rating Agencies. If the Company fails to mail such notice within 10 days after acceptance of appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Company.

 

Section 10.4.   Merger or Consolidation of Owner Trustee.

 

Any corporation into which the Owner Trustee may be merged or converted or with which it may be consolidated or any corporation resulting from any merger, conversion, or consolidation to which the Owner Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such corporation shall be eligible pursuant to Section 10.1, 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 further that the Owner Trustee shall mail notice of such merger or consolidation to the Rating Agencies.

 

Section 10.5.   Appointment of Co-Trustee or Separate Trustee.

 

Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Mortgaged Property may at the time be located, and for the purpose of performing certain duties and obligations of the Owner Trustee with respect to the Trust and the Certificates, the Owner Trustee shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Owner Trustee and acceptable to the Bond Insurer to act as co-trustee, jointly with the Owner Trustee, or separate trustee or separate 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 Bond Insurer and the Owner Trustee may consider necessary or desirable. No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 10.1 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.3.

 

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

 

(i)  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 Trust 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;

 

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

 

(iii)  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 the separate trustees and co-trustees, as if given to each of them. Every instrument appointing any separate trustee or co-trustee, other than this Agreement, shall refer to this Agreement and to the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of appointment, shall be vested with the estates 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 Agreement, specifically including every provision of this 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 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 trustee.

 

ARTICLE XI
CONTRIBUTION OF MORTGAGE LOANS

 

Section 11.1.   Agreement to Contribute and Convey.

 

The Issuer will deliver the net proceeds from the sale of the Bonds and issue the Certificates to the order of the Company or its designee in consideration of the transfer of the Mortgage Loans and the related rights thereunder and the rights pursuant to the Sales Agreement (collectively, the "Consideration"). As and for the Consideration and subject to the terms and conditions set forth herein, the Company agrees to contribute and convey, and the Trust agrees to accept and acquire, all of the Company's right, title, and interest in and to the Mortgage Loans identified on the schedule (the "Loan Schedule") annexed hereto as Exhibit E. The Loan Schedule will set forth as to each Mortgage Loan the items specified in the definition of "Loan Schedule" in the Indenture. The aggregate of the principal balances of the
Mortgage Loans being contributed and conveyed pursuant to this Agreement as of the close of business on the applicable Cut-off Dates, after application of all payments of principal received in respect of such Mortgage Loans before the applicable Cut-off Dates (the "Initial Pool Balance"), is set forth on the Cross Receipt executed concurrently herewith in the form of Exhibit F attached hereto (the "Cross Receipt"). Simultaneously with and in consideration of the Company's contribution and conveyance of the Mortgage Loans to the Trust, the Trust shall cause the Bonds to be issued and delivered and shall transfer the net proceeds received from the sale of the Bonds to be delivered to the Company and the Trust shall cause the Certificates to be issued to the order of the Company or its designee. The Company shall be deemed automatically and for all purposes to have made a contribution to the capital of the Trust (which contribution shall be reflected in the value assigned to the certificates evidencing
equity interests in the Trust) in an aggregate amount specified on the Cross Receipt. The transfer and conveyance of the Mortgage Loans shall take place on the Closing Date.

 

	 
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Section 11.2.   Conveyance of Mortgage Loans.

 

(a)  Effective as of the Closing Date, subject only to delivery of the Mortgage Loan File (as defined in the Sales Agreement) for each Mortgage Loan pursuant to subsection (c) below, the Company does hereby contribute, assign, transfer, and otherwise convey to the Trust, without recourse, representation, or warranty (other than as expressly set forth in Section 2.10 (a) hereof), and the Trust does hereby accept, assume, and acquire, all of the Company's right, title, and interest in and to the Mortgage Loans identified on the Loan Schedule, and the Trust hereby assumes and agrees to perform and be bound by each and all of the covenants, agreements, duties, and obligations of the Company arising under or
relating to such Mortgage Loans.

 

(b)  The Trust and its assignees shall be entitled to receive all payments of principal and interest due on or with respect to the Mortgage Loans after the applicable Cut-off Date, and all other recoveries of principal and interest collected on or after the applicable Cut-off Date (other than in respect of interest that accrued on such Mortgage Loan during periods prior to the applicable Cut-off Date), and each of the rights of the Company pursuant to representations, warranties, and indemnities in favor of the Company contained in the Sales Agreement. All payments of interest and principal due before the applicable Cut-off Date, but collected after the applicable Cut-off Date, and recoveries of principal
and interest collected before the applicable Cut-off Date (other than amounts representing interest that accrued on the Mortgage Loans during any period on or after the applicable Cut-off Date), shall belong to, and be promptly remitted to, _____________________.

 

(c)  In connection with its contribution and conveyance of the Mortgage Loans pursuant to subsection (a) above, the terms of the Sales Agreement govern the delivery of the Mortgage Loan Files to the Indenture Trustee, as the Trust's designee, and the Company assigns all of its rights under the Sales Agreement to the Trust.

 

(d)  In connection with its conveyance of the Mortgage Loans pursuant to subsection (a) above, the Company shall deliver to the Trust or its designee in respect of such Mortgage Loans, on or before the Closing Date, all amounts, if any, received on each Mortgage Loan on or after the applicable Cut-off Date (other than amounts representing interest and principal due on or prior to the applicable Cut-off Date) held by or on behalf of the Company.

 

(e)  The Company shall, at any time upon the request of the Trust, without limiting the obligations of the Company under this Agreement, execute, acknowledge, and deliver all such additional documents and instruments and all such further assurances and will do or cause to be done all such further acts and things as may be proper or reasonably necessary to carry out the intent of this Agreement.

 

Section 11.3.   Assignment of Related Rights and Remedies.

 

(a)  Effective as of the Closing Date, subject only to delivery of the Mortgage Loan File for each Mortgage Loan pursuant to Section 11.2(c) hereof, the Company does hereby assign, transfer, and otherwise convey to Trust, without recourse, representation, or warranty (other than as expressly set forth in Section 2.10(a) hereof), and the Trust does hereby accept, assume, and acquire, to be held jointly and severally with the Company, all of the Company's rights and remedies under the Sales Agreement and the Trust hereby assumes and agrees to perform and be bound by each and all of the covenants and agreements of the Company arising under the Sales Agreement relating to such rights and remedies and the
exercise or enforcement thereof.

 

	 
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(b)  Simultaneously with the exercise of any rights and remedies or any notices given to ________________ by the Trust under the Sales Agreement, the Trust shall give the Company and the Bond Insurer notice thereof, including, without limitation, copies of all notices given to ________________________.

 

(c)  This Section 11.3 provides the sole remedies available to the Trust, its successors and assignees, respecting any breach (i) of representations and warranties with respect to the Mortgage Loans to which reference is made in Section 2.10(c) or (ii) on the part of the Company under Section 2(c) hereof.

 

Section 11.4.   Closing.

 

The closing of the conveyance of the Mortgage Loans (the "Closing") shall be held at the offices of _____________________________________ _______, on the Closing Date.

 

The Closing shall be subject to each of the following conditions: 

 

(a)  All terms and conditions of this Agreement required to be complied with on or before the Closing Date shall have been complied with and the Company shall have the ability to comply with all terms and conditions and perform all duties and obligations required to be complied with or performed after the Closing Date.

 

(b)  The Trust shall have paid all costs and expenses payable by it to the Company or otherwise pursuant to this Agreement.

 

Both parties shall use their best efforts to perform their respective obligations hereunder in a manner that will enable the Trust to acquire the Mortgage Loans on the Closing Date. Notwithstanding the foregoing, satisfaction by the Company or Trust of its respective obligations under the foregoing provisions of this Section 11.4 shall not be conditions precedent to the obligation of the Company or Trust, respectively, to close the transactions contemplated by this Agreement.

 

Section 11.5.   Servicing.

 

As of the applicable Cut-off Date, the Mortgage Loans will be serviced by _________________________ (in such capacity, the "Servicer") pursuant to the terms of a Servicing Agreement, to be dated as of __________ 1, 200__ (the "Servicing Agreement"), by and among the Trust, the Servicer and the Indenture Trustee.

 

Section 11.6.   Grant of a Security Interest.

 

It is the express intent of the parties hereto that the conveyance of the Mortgage Loans by the Company to the Trust as provided in Section 11.2(a) hereof be, and be construed as, a complete and absolute transfer by the Company to the Trust of all of the Company's right, title, and interest in and to the Mortgage Loans and not as a pledge of the Mortgage Loans by the Company to the Trust to secure a debt or other obligation of the Company. However, if, notwithstanding the aforementioned intent of the parties, the Mortgage Loans are held to be property of the Company, then (a) it is the express intent of the parties that such conveyance be deemed a pledge of the Mortgage Loans by the Company to the Trust to secure a debt or other obligation of the Company, and (b) (i) this Agreement shall also be deemed to be a
security agreement within the meaning of Article 9 of the ______________ Uniform Commercial Code; (ii) the conveyance provided for in Section 11.2(a) hereof shall be deemed to be a grant by the Company to the Trust of a security interest in all of the Company's right, title and interest in and to the Mortgage Loans, and all amounts payable to the holder of the Mortgage Loans in accordance with the terms thereof, and all proceeds of the conversion, voluntary, or involuntary, of the foregoing into cash, instruments, securities, or other property, including without limitation all such amounts, other than investment earnings from time to time held or invested pursuant to and in accordance with the provisions of the Servicing Agreement or the Indenture, as applicable, whether in the form of cash, instruments, securities, or other property; (iii) the subsequent pledge of the Mortgage Loans by the Trust to the Indenture Trustee as contemplated by the preamble hereto shall be deemed to be an assignment of any
security interest created hereunder; (iv) the possession by the Company or the Trust or any of their respective agents, including, without limitation, the Indenture Trustee or its agent, of the notes or other instruments evidencing the indebtedness of the mortgagors under the related Mortgage Loans (the "Mortgage Bonds") and such other items of property relating to the Mortgage Loans as constitute instruments, money, negotiable documents, or chattel paper shall be deemed to be "possession by the secured party" for purposes of perfecting the security interest pursuant to Section 9-305 of the _________ Uniform Commercial Code; and (v) notifications to persons (other than the Indenture Trustee) holding such property, and acknowledgments, receipts, or confirmations from persons holding such property, shall be deemed notifications to, or acknowledgments, receipts, or confirmations from, financial intermediaries, bailees, or agents (as applicable) of the secured party for the purpose of perfecting such
security interest under applicable law. The Company and the Trust shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement and the Indenture.

 

	 
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ARTICLE XII
MANAGEMENT OF THE TRUST

 

Section 12.1.   Powers and Duties of the Bond Administrator.

 

(a)  The Bond Administrator shall perform, on behalf of the Trust acting through the Owner Trustee, the duties of the Trust under the Indenture specified below, and shall consult with the Owner Trustee regarding such duties. The duties referred to above are as follows (section references are to sections of the Indenture):

 

(i)  The determination of the form of the Bonds (Section 2.01);

 

(ii)  Directing the Owner Trustee to execute the Bonds for the Trust and to return them to the Indenture Trustee for authentication and delivery (Section 2.05);

 

(iii)  Direction of the Owner Trustee to execute and deliver Bonds for registration of transfer and exchange (Section 2.06);

 

(iv)  Direction of the Owner Trustee as to actions to be taken with respect to Bonds alleged to have been lost, stolen, destroyed or mutilated (Section 2.07);

 

(v)  Maintenance of Bond Registrar's office and designation of any offices where Bonds may be presented or surrendered (Section 3.02);

 

(vi)  If an additional Trust Paying Agent is to be appointed, the solicitation and review of bids, examination of the qualifications of bidders, and submission to the Owner Trustee of a list of candidates from which such appointment may be made by the Owner Trustee; preparation and submission to each such Trust Paying Agent for execution of an agreement to the effect that such Trust Paying Agent holds funds in trust; the direction of a Trust Paying Agent to remit all funds it is holding to the Indenture Trustee; the direction of the Indenture Trustee to deposit moneys with such Trust Paying Agent; and notifications to Holders of Bonds of availability of their last payments (Section 3.03);

 

(vii)  The monitoring of and compliance with the Trust's obligations under Section 3.07(c) (Section 3.07(c));

 

(viii)  The monitoring of and compliance with the Trust's obligations under Sections 3.12 (but only to the extent of the Bond Administrator's obligations under Section (b)(i) hereof) and 3.13 of the Indenture (Sections 3.11 and 3.13);

 

	 
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(ix)  If necessary, the preparation and, upon execution by the Owner Trustee, delivery and (as necessary) filing of documents necessary for the satisfaction and discharge of the Indenture, except that, in the case of a redemption, the party calling for the redemption would be responsible for these matters (Section 4.01);

 

(x)  Direction of Owner Trustee in connection with anything required of the Issuer relating to the appointment of any co-Trustees (Section 6.13);

 

(xi)  If an Authenticating Agent is to be appointed, the solicitation and review of bids, examination of the qualifications of bidders, and submission to the Owner Trustee of a list of qualified candidates from which such appointment may be made by the Owner Trustee (Section 6.14);

 

(xii)  Furnishing to the Indenture Trustee the names and addresses of Bondholders to the extent required by Section 7.01 (Section 7.01);

 

(xiii)  [Preparing for execution by the Owner Trustee, direction to the Owner Trustee regarding execution, and filing reports with the Securities and Exchange Commission (Section 7.04);]

 

(xiv)  Direction of the Owner Trustee's execution of documents, if any, as provided by the Servicer as necessary to reconvey title to repurchased Mortgage Loans to _____ (Section 8.05);

 

(xv)  Appointment of any Custodian and ensuring Custodian complies with all applicable duties Section 8.13); and

 

(xvi)  Notifying the Owner Trustee when the Bond Administrator is of the opinion that a Supplemental Indenture may be necessary or appropriate and determining, based on advice of counsel, whether notations of amendments should be made on Bond Certificates (Sections 9.01, 9.02, and 9.06).

 

(b)  The Bond Administrator shall, subject at all times to Section 12.5 of this Agreement, take all appropriate action with respect to the following tasks, inter alia:

 

(i)  The preparation and delivery of the income tax returns, tax elections, financial statements, and such annual or other reports of the Trust pursuant to Section 2.11 (k) hereof; provided however, that the Bond Administrator shall not be required to compute the Trust's gross income except to the extent it can do so without unreasonable effort or expense based upon income statements furnished to it; and

 

(ii)  The review of documentation in connection with transfers of the Bonds, in the preparation and delivery of Bonds and the determination of whether a proposed transfer of a Bond is permissible under the terms of the Indenture.

 

(c)  The Bond Administrator shall carry out in timely fashion, and in accordance with the provisions of the Indenture, all duties which the Bond Administrator is required to perform under the Indenture on behalf of the Issuer pursuant to the terms of this Agreement. The Bond Administrator shall have absolute discretion in the performance of the function set forth in this subsection (c) and shall have no obligation to notify the Owner Trustee of its actions except as set forth in the Indenture.

 

	 
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(d)  [In addition to the filings required under Section 12.1(a)(xiii) above, as soon as practicable, but not later than eighteen months after ____________, 200__, the Bond Administrator shall prepare, direct the Owner Trustee as to the execution of, and file with the Securities and Exchange Commission a report on Form 8- K containing a copy of the annual Payment Date Statement described in Section 2.08 of the Indenture.]

 

(e)  The Indenture Trustee hereby agrees that it will not take any action that is not related to the administration of the Trust Estate to (i) impair the validity or effectiveness of the Indenture or the Grant of the Trust Estate thereunder or release any Person from any covenant or obligation under the Indenture, except as expressly permitted thereby, (ii) creating any lien, charge, security interest, or similar encumbrance (other than the lien of the Indenture or other permitted encumbrance or as otherwise permitted under the provisions of the Indenture) on the Trust Estate, or (iii) cause the lien of the Indenture not to constitute a valid perfected first priority security interest in the Trust Estate,
except as otherwise expressly permitted under the Indenture. The Indenture Trustee shall, in connection with its tax reporting obligations under Section (b)(i) above, comply with the provisions of Section 2.11 hereof and shall not take any action that, to the actual knowledge of the Bond Administrator, would result in the Issuer becoming taxable as a corporation for federal income tax purposes.

 

Section 12.2.   Compensation; Payment of Certain Expenses.

 

The Bond Administrator will provide the services called for under the enumerated subparagraphs of paragraphs 12.1(a), 12.1(b), and 12.1(d) hereof above without any separate compensation therefore for so long as the Indenture remains in effect and thereafter shall receive monthly compensation equal to the Indenture Trustee Fee payable under the Indenture from amounts otherwise payable to the Certificateholders as provided in the this Agreement. The Bond Administrator shall perform any other services as may be agreed between the Bond Administrator and the Owner Trustee for such compensation as may be agreed between the Bond Administrator and the Owner Trustee; provided that such compensation shall be paid to the Bond Administrator by the Owner Trustee solely from funds received by the Owner Trustee from the Owners
pursuant to the this Agreement. If the date of termination of this Agreement is not a date on which the Bond Administrator is entitled to be paid hereunder, the Bond Administrator shall be paid the amount due it pursuant to this Sections and Section 12.5(a) as of such termination promptly after such date of termination.

 

Section 12.3.   Instruction of the Owner Trustee.

 

If in performing its duties under this Agreement, the Bond Administrator is required to determine any matter or perform any function above which is non-ministerial in nature, then the Bond Administrator shall properly deliver notice to the Owner Trustee and the Certificateholders requesting written instructions as to the course of action to be taken. The Certificateholders shall instruct the Bond Administrator in writing as to the action to be taken by the Bond Administrator. If the Bond Administrator does not receive such instructions within ten days after it has delivered such notice, it may, but shall be under no duty to, take or refrain from taking such action not inconsistent with this Agreement or the Indenture as it shall deem advisable in the best interest of the holders of the Bonds and the
Trust.

 

Section 12.4.   Benefit of the Agreement.

 

It is expressly agreed that in performing its duties pursuant to Section 12.1 of this Agreement the Bond Administrator will act for the benefit of holders of the Bonds and the Bond Insurer as well as for the benefit of the Trust, and that such obligations on the part of the Bond Administrator shall be enforceable at the instance of the Indenture Trustee and the Trust.

 

Section 12.5.   Limitation of Responsibility of the Bond Administrator.

 

(a)  The Bond Administrator will have no responsibility under this Agreement other than to render the services provided for hereunder in good faith. The Bond Administrator, its affiliates, its directors, officers, shareholders, and employees will not be liable to the Trust, the Owner Trustee, the Indenture Trustee, the Bondholders, or others, except by reason of acts constituting bad faith, willful misfeasance, gross negligence, or reckless disregard of the duties of the Bond Administrator hereunder. The Owner Trustee will reimburse, indemnify, and hold harmless the Bond Administrator and its affiliates, shareholders, directors, officers, and employees with respect to all expenses, losses, damages,
liabilities, demands, charges, and claims of any nature in respect of any acts or omissions performed or omitted by the Bond Administrator in good faith and in accordance with the standard set forth above.

 

(b)  The Trust undertakes to pay or cause to be paid any amount due the Bond Administrator or its affiliates, shareholders, directors, officers and employees, under Section 12.2 or Section 12.5(a) and such amounts shall be paid as provided for under the Indenture or out of the assets of the Trust that are free of the lien of the Indenture (and in no event by _______________________ in its individual capacity).

 

	 
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Section 12.6.   Termination of Bond Administrator.

 

(a)  The Bond Administrator, at its election, may resign as Bond Administrator hereunder and be discharged of its duties hereunder upon at least 30 days' prior notice to the Owner Trustee, the Bond Insurer, and the Indenture Trustee; provided however, that at any time while the Bonds are outstanding no such resignation and discharge shall become effective until a Person selected by the Bond Administrator in its discretion and acceptable to the Owners, the Bond Insurer, and the Rating Agencies shall have assumed and agreed to perform the duties of the Bond Administrator hereunder as evidenced by a written instrument to such effect delivered to the Owner Trustee. Upon delivery of such written instrument to
the Owner Trustee, the Trust shall promptly deliver to the successor Bond Administrator a written instrument acknowledging and accepting the assignment of the resigning Bond Administrator's rights hereunder to the successor Bond Administrator. Each such successor Bond Administrator shall be deemed to be the Bond Administrator for all purposes of this Agreement.

 

(b)  If any of the following events shall occur and be continuing:

 

(i)  The Bond Administrator shall violate any provision of this Agreement and such default is not cured within ten days after notice thereof is given to the Bond Administrator by the Owner Trustee, [the Bond Insurer,] or the Indenture Trustee;

 

(ii)  A court having jurisdiction over the premises shall enter a decree or order for relief in respect of the Bond Administrator in an involuntary case under any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect, or appoint a receiver, liquidation, assignee, custodian, trustee, sequestrator (or other similar official) of the Bond Administrator or for any substantial part of its property, or order the winding-up or liquidation of its affairs; or

 

(iii)  The Bond Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Bond Administrator or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, then in any such event this Agreement may be terminated by the Owner Trustee upon notice to the Bond
Administrator; provided however, that the Bond Administrator shall nevertheless be entitled to any amounts due to it pursuant to Sections 12.2 and 12.5 accruing prior to the date of such termination.

 

(iv)  Following receipt of instructions from [the Bond Insurer or] the owners of the Bonds[, with the prior consent of the Bond Insurer, and] upon 30 days' written notice to the Bond Administrator, the Owner Trustee may remove the Bond Administrator; provided however, that the Bond Administrator shall nevertheless be entitled to any amounts due to it pursuant to sections 12.2 and 12.5 accruing prior to the date of such termination.

 

	 
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Section 12.7.   Bankruptcy Matters.

 

The Bond Administrator shall not take any action to cause the Trust to dissolve in whole or in part or file a voluntary petition or otherwise initiate proceedings to have the Trust adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against the Trust, or file a petition seeking or consenting to reorganization or relief of the Trust, as debtor, under any applicable federal or state law relating to bankruptcy, insolvency, or other relief for debtors with respect to the Trust; or seek or consent to the appointment of any trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator (or other similar official) of the Trust or of all or any substantial part of the properties and assets of the Trust, or cause the Trust to make any general assignment
for the benefit of creditors of the Trust, or take any action in furtherance of any of the above actions. 

 

ARTICLE XIII
MISCELLANEOUS

 

Section 13.1.   Supplements and Amendments.

 

This Agreement may be amended by the Company and the Owner Trustee, [with the prior consent of the Bond Insurer,] and with prior written notice to the Rating Agencies, but to cure any ambiguity, to correct or supplement any provisions in this Agreement, or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement without the consent of any of the Bondholders or the Certificateholders or the Indenture Trustee, or of modifying in any manner the rights of the Bondholders or the Certificateholders; provided however, such action shall not adversely affect in any material respect the interests of any Bondholder or Certificateholder or the rights of the Bond Insurer. An amendment described above shall be deemed not to adversely affect in any material
respect the interests of any Bondholder or Certificateholder if the party requesting the amendment satisfies the Rating Agency Condition with respect to such amendment. 

 

This Agreement may also be amended from time to time by the Company and the Owner Trustee, with the prior written consent of the Rating Agencies and with the prior written consent of the Indenture Trustee, [the Bond Insurer,] the Holders (as defined in the Indenture) of Bonds evidencing more than 50% of the Outstanding Amount of the Bonds, the Holders of Certificates evidencing more than 50% of the Percentage Interests of the Trust Interest and if the party requesting such amendment satisfies the Rating Agency Condition with respect to such amendment, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Bondholders or the Certificateholders; provided however, no such amendment shall (a) increase
or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Mortgage Loans or distributions that shall be required to be made for the benefit of the Bondholders, the Certificateholders [or the Bond Insurer,] or (b) reduce the aforesaid percentage of the Outstanding Amount of the Bonds or the Percentage Interests required to consent to any such amendment, in either case of clause (a) or (b) without the consent of the holders of all the outstanding Bonds [and the Bond Insurer,] and in the case of clause (b) without the consent of the Holders of all the outstanding Certificates.

 

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 Bond Insurer] and each of the Rating Agencies. 

 

It shall not be necessary for the consent of Certificateholders, the Bondholders, or the Indenture Trustee pursuant to this Section 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 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. 

 

	 
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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.

 

Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement. The Owner Trustee may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee's own rights, duties, or immunities under this Agreement or otherwise. 

 

Section 13.2.   No Legal Title to Owner Trust Estate in Holders.

 

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 ownership interest therein only in accordance with Articles V and IX. 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 Agreement or the Trust 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 13.3.   Limitations on Rights of Others.

 

Except for Section 2.7, the provisions of this Agreement are solely for the benefit of the Owner Trustee, the Company, the Certificateholders, [the Bond Insurer,] and to the extent expressly provided herein, the Indenture Trustee and the Bondholders, and nothing in this Agreement (other than Section 2.7), 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 Agreement or any covenants, conditions, or provisions contained herein. 

 

Section 13.4.   Notices.

 

(a)  Unless otherwise expressly specified or permitted by the terms hereof, all communications provided for or permitted hereunder shall be in writing and shall be deemed to have been given if (1) personally delivered, (2) upon receipt by the intended recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except that notice to the Owner Trustee shall be deemed given only upon actual receipt by the Owner Trustee), (3) sent by express courier delivery service and received by the intended recipient, or (4) except with respect to notices sent to the Owner Trustee, transmitted by telex or facsimile transmission (or any other type of electronic transmission agreed upon by
the parties and confirmed by a writing delivered by any of the means described in (1), (2) or (3), at the following addresses: (i) if to the Owner Trustee, its Corporate Trust Office; (ii) if to the Company, __________________, Attention: __________, Telecopy: ______; (iii) if to the Bond Insurer, ______________, Attention: __________, Telecopy: ______; (iv) if to the Trust Paying Agent, _________, Attention: __________, Telecopy: ______; (v) if to _____________________, Attention: __________, Telecopy: ______ or, as to each such 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 Certificateholder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice.

 

Section 13.5.   Severability.

 

Any provision of this 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.

 

	 
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Section 13.6.   Separate Counterparts.

 

This 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 13.7.   Successors and Assigns.

 

All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Company, [the Bond Insurer,] the Owner Trustee, and its successors and each owner and its successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver, or other instrument or action by a Certificateholder shall bind the successors and assigns of such Certificateholder.

 

Section 13.8.   No Petition.

 

The Owner Trustee, by entering into this Agreement, each Certificateholder, by accepting a Certificate, and the Indenture Trustee and each Bondholder by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against the Company or the Trust, 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 law in connection with any obligations relating to the Certificates, the Bonds, this Agreement, or any of the Basic Documents.

 

Section 13.9.   No Recourse.

 

Each Certificateholder by accepting a Certificate acknowledges that such Certificateholder's Certificate represents a beneficial interest in the Trust only and does not represent an interest in or an obligation of the Servicer, the Company, the Owner 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 Agreement, the Certificates, or the Basic Documents.

 

Section 13.10.   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 13.11.   GOVERNING LAW.

 

THIS 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.

 

	 
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IN WITNESS WHEREOF, the parties hereto have caused this Deposit Trust Agreement to be duly executed by their respective officers hereunto duly authorized, as of the day and year first above written.

 

_______________________________, 

as Depositor

By:

______________________________

Name:

______________________________

Title:

______________________________

______________________________, in

its individual capacity only as 

specifically set forth herein and

otherwise not in its individual

capacity, but solely as Owner Trustee

By:

_________________________________

Authorized Signatory

The Trust Paying Agent hereby acknowledges its appointment as Trust Paying Agent under this Agreement and agrees to act in such capacity as described herein and as Bond Administrator. 

 

____________________________________

By:

______________________________

Name:

______________________________

Title:

______________________________

The Servicer hereby acknowledges its obligations under this Agreement and agrees to act in accordance therewith.

 

___________________________________

By:

_____________________________

Name:

_____________________________

Title:

_____________________________ 

	
 

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EXHIBIT A-1

TO THE TRUST AGREEMENT

(FORM OF CERTIFICATE)

THE EQUITY INTEREST IN THE TRUST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THIS EQUITY INTEREST MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3A-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO,
________________________________) IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS EQUITY INTEREST UNDER THE ACT OR ANY STATE SECURITIES LAWS.

 

NO TRANSFER OF THIS CERTIFICATE OR ANY BENEFICIAL INTEREST THEREIN SHALL BE MADE TO ANY PERSON UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM THE TRANSFEREE TO THE EFFECT THAT SUCH TRANSFEREE (I) IS NOT A PERSON WHICH IS AN EMPLOYEE BENEFIT PLAN, TRUST OR ACCOUNT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR SECTION 4975 OF THE CODE OR A GOVERNMENTAL PLAN, DEFINED IN SECTION 3(32) OF ERISA SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE (ANY SUCH PERSON BEING A "PLAN") AND (II) IS NOT AN ENTITY, INCLUDING AN INSURANCE COMPANY SEPARATE ACCOUNT OR GENERAL ACCOUNT, WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S INVESTMENT IN THE ENTITY.

 

THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD, OR OTHERWISE DISPOSED OF UNLESS, PRIOR TO SUCH DISPOSITION, THE PROPOSED TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR A CERTIFICATE STATING THAT SUCH TRANSFEREE (A) AGREES TO BE BOUND BY AND TO ABIDE BY THE TRANSFER RESTRICTIONS APPLICABLE TO THIS CERTIFICATE; (B) IS NOT AN ENTITY THAT WILL HOLD THIS CERTIFICATE AS NOMINEE TO FACILITATE THE CLEARANCE AND SETTLEMENT OF SUCH SECURITY THROUGH ELECTRONIC BOOK-ENTRY CHANGES IN ACCOUNTS OF PARTICIPATING ORGANIZATIONS; AND (C) UNDERSTANDS THAT IT MUST TAKE INTO ACCOUNT ITS PERCENTAGE INTEREST OF THE TAXABLE INCOME RELATING TO THIS CERTIFICATE.

 

_______________________________

CERTIFICATE

No. 0001

 

THIS CERTIFIES THAT ______________________ (the "Owner") is the registered owner of a 100% Percentage Interest of the Trust Interest in _______________________________ __-____ (the "Trust") existing under the laws of the State of Delaware and created pursuant to that certain Deposit Trust Agreement, dated as of __________ 1, 200__ (the "Trust Agreement"), among __________________________________, as Depositor, _______________________ __________________, in its individual capacity and in its fiduciary capacity as Owner Trustee under the Trust Agreement (the "Owner Trustee"), _________________ ________________________________________, as Trust Paying Agent and Bond Administrator, and _________________ _____________________________, as Servicer. Capitalized terms used but not otherwise defined herein have
the meanings assigned to such terms in the Trust Agreement. The Owner Trustee, on behalf of the Issuer and not in its individual capacity, has executed this Certificate by one of its duly authorized signatories as set forth below. This Certificate is one of the Certificates referred to in the Trust Agreement and is issued under and is subject to the terms, provisions, and conditions of the Trust Agreement to which the holder of this Certificate by virtue of the acceptance hereof agrees and by which the holder hereof is bound. Reference is hereby made to the Trust Agreement for the rights of the holder of this Certificate, as well as for the terms and conditions of the Trust created by the Trust Agreement.

 

	 
	 	40	 
	

	 

The holder, by its acceptance hereof, agrees not to transfer this Certificate except in accordance with terms and provisions of the Agreement.

 

THIS CERTIFICATE 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.

 

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.

 

_______________________________

TRUST 200___-___

By: ________________________, not in its individual capacity but solely as Owner Trustee under the Trust Agreement 

By:

____________________________________

Authorized Signatory

DATED:___________, 200 

_________________ ___ __

 

	
	 	41	 
	

	 

CERTIFICATE OF AUTHENTICATION

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

 

____________________________________

as Authenticating Agent

By:

_______________________________

Authorized Signatory

	
	 	42	 
	

	 

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 Instrument, and all rights thereunder, hereby irrevocably constituting and appointing __________ Attorney to transfer said Instrument 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 Instrument 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.

 

 

 

	
 

	 	43	 
	

	

EXHIBIT B

TO THE TRUST AGREEMENT

CERTIFICATE OF TRUST OF

_______________________________ TRUST 200___-___

THIS CERTIFICATE OF TRUST OF _______________________ _______ TRUST 200___-___ (the "Trust"), dated as of _____________ __, 200___, is being duly executed and filed by ____________________, a _______________, as trustee, to form a business trust under the Delaware Business Trust Act (12 Del. Code, S 3801 et seq.).

 

1.  Name. The name of the business trust formed hereby is ________________________________ TRUST 200___-___.

 

2.  Delaware Trustee. The name and business address of the trustee of the Trust in the State of Delaware is _______________________________________________________________________.Attention:____________.

 

 

IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust, has executed this Certificate of Trust as of the date first above written.

 

_______________________________, not in its individual capacity but solely as Owner Trustee under a Deposit Trust Agreement, dated as of ________ 1, 200_.

 

By:

______________________________________

Name:

_____________________________________

Title:

____________________________________

	
 

	 	44	 
	

	

EXHIBIT C

FORM OF INVESTMENT LETTER

___________, 200_

_____________________________________

_____________________________________

_____________________________________

[OWNER TRUSTEE]

[ADDRESS]

Re: _______________________________ Trust 200__-__ (the     Issuer") Collateralized Mortgage Bonds

 

Ladies and Gentlemen:

___________________________________________________ (the "Holder") has purchased or acquired, or intends to purchase or acquire from ______________, the current Holder (the "Current Holder"), a Certificate representing a ___% Percentage Interest (the "__% Certificate") in the Trust Interest for the referenced Issuer, which represents an interest in the Issuer created pursuant to that certain Deposit Trust Agreement, dated as of ______________ 1, 200__ (the "Trust Agreement"), among ____________________________________., as Depositor, _______________, as Owner Trustee, _______________, as Trust Paying Agent and Bond Administrator, and _______________, as Servicer. Capitalized terms used and not otherwise defined herein have the meanings assigned to such terms in the Trust Agreement.

 

CERTIFICATION

the undersigned, as an authorized officer or agent of the Holder, hereby certifies, represents, warrants, and agrees on behalf of the Holder as follows:

 

1.  The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was formed and is authorized to invest in the __% Certificate. The person executing this letter on behalf of the Holder is duly authorized to do so on behalf of the Holder.

 

2.  The Holder hereby acknowledges that no transfer of the __% Certificate may be made unless such transfer is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), and applicable state securities laws, or is made in accordance with the Securities Act and such laws.

 

3.  The Holder understands that the __% Certificate has not been and will not be registered under the Securities Act and may be offered, sold, pledged or otherwise transferred only to a person whom the transferor reasonably believes is (A) a qualified institutional buyer (as defined in Rule 144A under the Securities Act) or (B) a Person involved in the organization or operation of the Trust or an affiliate of such Person, in a transaction meeting the requirements of Rule 144A under the Securities Act and in accordance with any applicable securities laws of any state of the United States. The Holder understands that the __% Certificate bears a legend to the
foregoing effect.

 

4.  The Holder is acquiring the __% Certificate for its own account or for accounts for which it exercises sole investment discretion, and not with a view to or for sale or other transfer in connection with any distribution of the __% Certificate in any manner that would violate Section 5 of the Securities Act or any applicable state securities laws, subject nevertheless to any requirement of law that the disposition of the Holder's property shall at all times be and remain within its control.

 

	 
	 	45	 
	

	 

5.  The Holder is (A) a "qualified institutional buyer" (a "QIB") as defined in Rule 144A under the Securities Act, and is aware that the transferor of the __% Certificate may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is acquiring such __% Certificate for its own Account or for the Account of one or more qualified institutional buyers for whom it is authorized to act, or (B) a Person involved in the organization or operation of the Trust or an affiliate of such Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended (including, but not limited to, the
Transferor). The Holder is able to bear the economic risks of such an investment. The Holder is a QIB because _____________________________________. 

 

6.  If the Holder sells or otherwise transfers the registered ownership of such __% Certificate, the Holder will comply with the restrictions and requirements with respect to the transfer of the ownership of the __% Certificate under the Trust Agreement, and the Holder will obtain from any subsequent purchaser or transferee substantially the same certifications, representations, warranties and covenants as required under the Trust Agreement in connection with such subsequent sale or transfer thereof.

 

7.  The Holder is not an entity that will hold a __% Certificate as nominee (a "Book Entry Nominee") to facilitate the clearance and settlement of such security through electronic book-entry changes in Accounts or participating organizations.

 

8.  The Holder is not (i) is not a person which is an employee benefit plan, trust or account subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of the Code or a governmental plan, defined in Section 3(32) of ERISA subject to any federal, state or local law which is, to a material extent, similar to the foregoing provisions of ERISA or the Code (any such person being a "plan") and (ii) is not an entity, including an insurance company separate account or general account, whose underlying assets include plan assets by reason of a plan's investment in the entity and is not directly or indirectly
purchasing such __% Certificate on behalf of, as investment manager of, as named fiduciary of, as trustee of, or with assets of a Plan. 

 

9.  The Holder hereby agrees to indemnify each of the Issuer, the Indenture Trustee and the Owner Trustee against any liability that may result if the Holder's transfer of a __% Certificate (or any portion thereof) is not exempt from the registration requirements of the Securities Act and any applicable state securities laws or is not made in accordance with such federal and state laws. Such indemnification of the Issuer, the Owner Trustee shall survive the termination of the related Trust Agreement.

 

IN WITNESS WHEREOF, the Holder has caused this instrument to be executed on its behalf, pursuant to the authority of its Board of Directors, by its duly authorized signatory this ___ day of _________, 200_.

 

[NAME OF HOLDER]

________________________________________

By:_____________________________________

Name:___________________________________

Title:__________________________________

 

 

	
 

	 	46	 
	

	

EXHIBIT D

FEES AND EXPENSES OF OWNER TRUSTEE

 

	
 

	 	47	 
	

	

EXHIBIT E

LOAN SCHEDULE

 

	
 

	 	48	 
	

	

EXHIBIT F

CROSS RECEIPT

[ATTACHED]

______________________________ TRUST 200___-__

COLLATERALIZED MORTGAGE BONDS, SERIES 200___-__

CROSS RECEIPT BETWEEN __________________________________. AND _____ _________________________ TRUST 200___-__ ACKNOWLEDGING RECEIPT OF MORTGAGE BONDS

 

Reference is made to that certain Deposit Trust Agreement, dated as of ______________ 1, 200__ (the "Trust Agreement"), among _____ ________ ___________________., as Depositor, ________________________, as Owner Trustee, ___________________, as Trust Paying Agent and Bond Administrator, and ___________, as Servicer. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Trust Agreement. 

 

The Trust hereby acknowledges receipt from the Company of the Mortgage Bonds relating to the Mortgage Loans identified on the Loan Schedule annexed as Exhibit E to the Trust Agreement (the "Mortgage Loans"). The Mortgage Loans have an Initial Pool Balance of $_________________________.

 

_______________________________ TRUST 200_-__

By: ________________________,

not in its individual capacity 

but solely as Owner Trustee 

of the Trust

By: __________________________________ 

Authorized Signatory

The Company hereby acknowledges receipt of the Consideration for the contribution of the Mortgage Loans by the Company to the Trust as specified in the Trust Agreement. The Consideration consists of (a) $_______________________, in immediately available funds, representing the aggregate net proceeds from the sale of the Bonds delivered to the Placement Agent pursuant to the Placement Agent Agreement, and (b) a Certificate, delivered to ____________________, a _____________________, representing a 100% beneficial interest in the Trust.

 

_________________________

By: ___________________________

Name:

Title:

Dated: ________ __ 200__

	 	 	 	 
	 	 	 	 
	
49RESIDENTIAL RESOURCES, INC.,

                                   Depositor,

                                       and

                       ----------------------------------,

                                     Trustee

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

                                 TRUST AGREEMENT

                            Dated ___________, 20___

                 Mortgage Pass-Through Certificates Series _____

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                       Page
                                                                                                       ----
<S>                                                                                                     <C>
ARTICLE I         DEFINITIONS............................................................................1
         Section 1.01.  Defined Terms....................................................................1
ARTICLE II        CONVEYANCE OF THE UNDERLYING CERTIFICATES; ORIGINAL ISSUANCE OF CERTIFICATES...........8
         Section 2.01.  Conveyance of the Underlying Certificates........................................8
         Section 2.02.  Issuance of Certificates Evidencing Interests in the Trust Fund..................9
         Section 2.03.  Representations, Warranties and Covenants of the Depositor.......................9
ARTICLE III       ADMINISTRATION OF THE UNDERLYING CERTIFICATES;  PAYMENTS AND REPORTS TO
                    CERTIFICATEHOLDERS                                                                  10
         Section 3.01.  Administration of the Trust Fund and the Underlying Certificates................10
         Section 3.02.  Collection of Monies............................................................10
         Section 3.03.  Establishment of Certificate Account; Deposits in Certificate Account...........11
         Section 3.04.  Permitted Withdrawals From the Certificate Account..............................11
         Section 3.05.  Payments........................................................................12
         Section 3.06.  Statements to Certificateholders................................................13
         Section 3.07.  Access to Certain Documentation and Information.................................14
         Section 3.08.  Permitted Investments...........................................................14
         Section 3.09.  Reports of Certificate Principal Balances to the Clearing Agency]...............14
ARTICLE IV        THE CERTIFICATES......................................................................15
         Section 4.01.  The Certificates................................................................15
         Section 4.02.  Registration of Transfer and Exchange of Certificates...........................15
         Section 4.03.  Mutilated, Destroyed, Lost or Stolen Certificates...............................19
         Section 4.04.  Persons Deemed Owners...........................................................20
         Section 4.05.  Appointment of Paying Agent.....................................................20
         Section 4.06.  [Book-Entry Certificates].......................................................20
ARTICLE V         THE TRUSTEE...........................................................................21
         Section 5.01.  Duties of Trustee...............................................................21
         Section 5.02.  Certain Matters Affecting the Trustee...........................................21
         Section 5.03.  Trustee Not Liable for Certificates or Underlying Certificates..................22
         Section 5.04.  Trustee May Own Certificates....................................................22
         Section 5.05.  Trustee's Fees; Indemnification.................................................22
         Section 5.06.  Eligibility Requirements for Trustee............................................23
         Section 5.07.  Resignation and Removal of the Trustee..........................................23
         Section 5.08.  Successor Trustee...............................................................24
         Section 5.09.  Merger or Consolidation of Trustee..............................................24
         Section 5.10.  Appointment of Co-Trustee or Separate Trustee...................................24
         Section 5.11.  [Appointment of Office or Agency]...............................................25
         Section 5.12.  Trustee May Enforce Claims Without Possession of Certificates...................25
         Section 5.13.  Filings with the Securities and Exchange Commission.............................25
ARTICLE VI        TERMINATION; EVENTS OF DEFAULT........................................................25
         Section 6.01.  Termination of the Trust Fund...................................................25
         Section 6.02.  Termination of Underlying Trusts................................................26
ARTICLE VII       THE DEPOSITOR.........................................................................26
         Section 7.01.  Liability of the Depositor......................................................26
         Section 7.02.  Merger, Consolidation or Conversion of the Depositor............................26
         Section 7.03.  Limitation on Liability of the Depositor........................................27
ARTICLE VIII      TAX PROVISIONS........................................................................27
         Section 8.01.  Trust Administration............................................................27
         Section 8.02.  Prohibited Activities...........................................................28
         Section 8.03.  Tax Matters Person of Underlying Trusts.........................................28
ARTICLE IX        MISCELLANEOUS PROVISIONS..............................................................28
         Section 9.01.  Amendment.......................................................................28
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                    <C>
         Section 9.02.  Counterparts....................................................................29
         Section 9.03.  Limitation on Rights of Certificateholders......................................29
         Section 9.04.  Governing Law...................................................................30
         Section 9.05.  Notices.........................................................................30
         Section 9.06.  Notices to Rating Agency........................................................30
         Section 9.07.  Severability of Provisions......................................................31
         Section 9.08.  Successors and Assigns..........................................................31
         Section 9.09.  Article and Section Headings....................................................31
</TABLE>

Exhibits

Exhibit A Form of Class __ Certificates
Exhibit B Form of Class __ Certificates
Exhibit C Underlying Certificate Schedule
[Exhibit D Form of Transferee Agreement]
[Exhibit E Form of Rule 144A Certificate]
[Exhibit F Form of Transfer Affidavit and Agreement]
[Exhibit G Form of ERISA Representation Letter for Insurance Companies and
Bank Collective Investment Funds]

                                       ii
<PAGE>

      THIS TRUST AGREEMENT, dated _____________ __, 20__, between RESIDENTIAL
RESOURCES, INC., as depositor (the "Depositor") and ________________________, as
trustee (the "Trustee").

                              PRELIMINARY STATEMENT

      The Depositor desires to transfer to the Trust Fund on the date hereof the
Underlying Certificates, and the Trustee will issue [two] new Classes of
Certificates, as provided herein.

      The Depositor intends to sell the Mortgage Pass-Through Certificates,
Series ____ (the "Certificates"), to be issued hereunder in [two] classes, which
in the aggregate will evidence the entire beneficial ownership in the Underlying
Certificates.

      The following table sets forth the designation, aggregate Initial
Certificate Principal Balance and Maturity Date for each Class of Certificates:

INITIAL CERTIFICATE  DESIGNATION                PRINCIPAL BALANCE MATURITY DATE

Class __$________________ _____ __, 20__        Class __(1)_____ __, 20__

      (1) Although the Class __ Certificates have no actual Certificate
Principal Balance, the initial notional Certificate Principal Balance of the
Class __ Certificates is $_____, which corresponds to the aggregate notional
Underlying Certificate Principal Balance of the Underlying Residual Certificates
as of the Cut-Off Date.

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

                                    ARTICLE I
                                   DEFINITIONS

Section 1.01. Defined Terms.

      Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

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

      "Anticipated Termination Date": Any Payment Date on which the Trustee
anticipates that the Trust Fund will be terminated pursuant to Section 6.01.

      "Available Distribution Amount": As of any date of determination, the
aggregate amount on deposit in the Certificate Account as of such date of
determination, net of any portion thereof which represents amounts payable
pursuant to clause (ii), (iii) or (iv) of Section 3.04.

      "Beneficial Owner": With respect to a Book-Entry Certificate, the Person
who is registered as owner of that Certificate in the books of the Clearing
Agency for that Certificate or in the books of a Person maintaining an account
with such Clearing Agency.

      "Book-Entry Certificates": The Class __ Certificates.

      "Business Day": Any day other than a Saturday or a Sunday, or a day on
which banking institutions in the State of _________________ or such other state
or states in which the Certificate Account or any account relating to the
Underlying Certificates, are located and are required or authorized by law or
executive order to be closed.

                                       1
<PAGE>

      "Certificate": Any Class __ Certificate or Class __ Certificate.

      "Certificate Account": The trust account or accounts, which shall at all
times be Eligible Accounts, created and maintained by the Trustee pursuant to
Section 3.03. Funds deposited in the Trust Certificate Account shall be held in
trust for the Certificateholders for the uses and purposes set forth in Article
III hereof.

      "Certificate Principal Balance": With respect to any Class __ Certificate,
on any date of determination, an amount equal to the Initial Certificate
Principal Balance of such Certificate as specified on the face thereof, as
adjusted pursuant to Section 3.05. The Class __ Certificates have no Certificate
Principal Balance.

      "Certificate Registrar and Certificate Register": Shall each have the
meanings provided in Section 4.02.

      "Certificateholder or Holder": The person in whose name a Certificate is
registered in the Certificate Register, except that, neither a Disqualified
Organization nor a non-United States Person shall be a Holder of a Class __
Certificates for any purposes hereof, and solely for the purpose of giving any
consent pursuant to this Agreement, any Certificate registered in the name of
the Depositor, the Trustee or any affiliate thereof shall be deemed not to be
Outstanding Certificates or counted in any way.

      "Class": Collectively, all of the Certificates bearing the same
designation.

      "Class __ Certificate": Any one of the Class __ Certificates executed,
authenticated and delivered by the Trustee substantially in the form annexed
hereto as Exhibit A.

      "Class __ Certificate": Any one of the Class __ Certificates executed,
authenticated and delivered by the Trustee substantially in the form annexed
hereto as Exhibit B.

      "Clearing Agency": The Depository Trust Company, or any successor
organization or any other organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended, and
the regulations of the Securities and Exchange Commission thereunder.

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

      "Closing Date": _____ __, 20__.

      "Code": The Internal Revenue Code of 1986, as amended.

      "Commission": The Securities and Exchange Commission, as from time to time
constituted, created under the Securities Exchange Act of 1934, as amended, or
if at any time such Commission is not existing and performing the duties now
assigned to it under the such Act, then the body performing such duties at such
time under such Act or similar legislation.

      "Corporate Trust Office": The principal corporate trust office of the
Trustee in the State of ____________ at which at any particular time its
corporate trust business with respect to this Agreement shall be administered,
which office at the date of the execution of this Agreement is located at
_______________, Attention: Corporate Trust Services.

      "Cut-Off Date": _____ 1, 200__ (after giving effect to distributions to be
made on the Underlying Certificates on _____ [25], 20__ pursuant to the
Underlying Agreements).

      "Depositor": Residential Resources, Inc., an Arizona corporation, or its
successor in interest.

                                       2
<PAGE>

      "Disqualified Organization": Any of the following: (i) the United States
or any possession thereof, any State or political subdivision thereof, or any
agency or instrumentality of the foregoing (other than an instrumentality that
is a corporation if all of its activities are subject to tax and, except for the
Freddie Mac, a majority of its board of directors is not selected by such
governmental unit), (ii) any foreign government, any international organization,
or any agency or instrumentality of any of the foregoing, (iii) any organization
(other than certain farmers' cooperatives described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code (unless such
organization is subject to the tax imposed by Section 511 of the Code on
unrelated business taxable income), or rural electric and telephone cooperatives
described in Section 1381(a)(2)(C) of the Code and (iv) any other Person so
designated by the Trustee based upon an Opinion of Counsel provided to the
Trustee that the holding of an ownership interest in a Class __ Certificate by
such Person may cause the Trust Fund or any Person having an ownership interest
in any Class of Certificates (other than such Person) to incur liability for any
federal tax imposed under the Code that would not otherwise be imposed but for
the transfer of an ownership interest in the Class __ Certificate to such
Person. The terms "United States," "State" and "international organization"
shall have the meanings set forth in Section 7701 of the Code.

      "Distribution Date": With respect to any Underlying Certificate,
"Distribution Date" shall have the meaning assigned thereto in the related
Underlying Agreement.

      "Distribution Date Statement": With respect to any Underlying Certificate
and any Distribution Date, the monthly remittance report forwarded to the holder
of such Underlying Certificate with respect to such Distribution Date pursuant
to the related Underlying Agreement.

      "Eligible Account": An account that is any of the following: (i)
maintained with a depository institution the short-term deposits of which have
been rated not lower than "___" by the Rating Agency and the long-term deposits
of which have been rated not lower than "___" by the Rating Agency, (ii) an
account or accounts the deposits in which such accounts are fully insured to the
limits established by the FDIC, provided that any such deposits not so insured
shall, to the extent acceptable to the Rating Agency, as evidenced in writing,
be otherwise maintained such that (as evidenced by an Opinion of Counsel
delivered to the Trustee and the Rating Agency) the registered Holders of
Certificates 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, (iii) a trust account or accounts maintained in the
corporate trust department of the Trustee, or (iv) an account or accounts of a
depository institution acceptable to the Rating Agency (as evidenced in writing
by the Rating Agency that use of any such account as the Certificate Account
will not have an adverse effect on the then-current ratings assigned to the
Classes of the Certificates then rated by the Rating Agency).

      "ERISA": The Employee Retirement Income Security Act of 1974, as amended.

      "ERISA Restricted Certificates": The Class __ Certificates.

      "Fannie Mae": Fannie Mae (formerly the Federal National Mortgage
Association) or any successor.

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

      "Final Payment Date": The Payment Date set forth in the notice delivered
by the Trustee of the final payment of the Certificates pursuant to Section
6.01.

      "Freddie Mac": Freddie Mac (Formerly known as The Federal Home Loan
Mortgage Corporation) or any successor.

      "Independent": When used with respect to any specified Person, such Person
who (i) is in fact independent of the Depositor, (ii) does not have any direct
financial interest in the Depositor or in an affiliate of the Depositor and
(iii) is not connected with the Depositor as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar functions.

                                       3
<PAGE>

      "Initial Certificate Principal Balance": With respect to any Class of
Certificates, the aggregate initial Certificate Principal Balance of such Class
of Certificates as of the Closing Date as set forth in the Preliminary Statement
hereto.

      "Servicer": With respect to each Underlying Certificate and the Mortgage
Loans in which such Underlying Certificate evidences a beneficial ownership
interest, _____________________, and its successors and assigns, as servicer
under the related Underlying Agreement.

      "Maturity Date": With respect to each Class of Certificates, the date as
designated in the Preliminary Statement hereof.

      "Mortgage Loans": With respect to any Underlying Certificate, the mortgage
loans in which such Underlying Certificate evidences a beneficial ownership
interest.

      "Non-United States Person": Any Person other than a United States Person.

      "Notice of Final Distribution": With respect to any Underlying
Certificate, the notice to be provided pursuant to the related Underlying
Agreement to the effect that final distribution on such Underlying Certificate
shall be made only upon presentation and surrender thereof.

      "Notice of Termination": Any of the notices given by the Trustee pursuant
to Section 6.01(b).

      "Officer's Certificate": As required by this Agreement, a certificate
signed by (i) with respect to the Depositor, the Chairman of the Board, the
President or a Vice President or and by the Secretary of the Depositor or (ii)
with respect to the Trustee, a Responsible Officer.

      "Opinion of Counsel": A written opinion of counsel, who may be counsel for
the Depositor, which opinion is reasonably acceptable to the Trustee; except
that any opinion of counsel relating to the qualification of any account
required to be maintained pursuant to this Agreement as an Eligible Account must
be an opinion of Independent counsel. No such opinion of counsel shall be deemed
unacceptable by the Trustee merely because such opinion is an opinion of counsel
who is an employee of the Person on whose behalf such opinion is rendered unless
such opinion of counsel is required to be an opinion of Independent counsel.

      "Outstanding Certificates": With respect to the Certificates, as of the
date of determination, all Certificates theretofore executed and delivered under
this Agreement except:

      (i)   Certificates theretofore canceled by the Trustee or delivered to the
            Trustee for cancellation; and

      (ii)  Certificates in exchange for which or in lieu of which other
            Certificates have been executed and delivered pursuant to this
            Agreement unless proof satisfactory to the Trustee is presented that
            any such Certificates are held by a holder in due course.

      "Ownership Interest": As to any Certificate or Underlying Certificate, any
ownership or security interest in such Certificate or Underlying Certificate,
including any interest in such Certificate as the Holder thereof and any other
interest therein, whether direct or indirect, legal or beneficial, as owner or
as pledgee.

      "Paying Agent": Any Paying Agent appointed by the Trustee in accordance
with Section 4.05 hereof.

                                       4
<PAGE>

      "Payment Date": The Business Day immediately following (a) the [25]th day
of each month or, (b) if such day is not a Business Day, then the Business Day
immediately following such [25]th day. The anticipated first Payment Date will
be _____ __, 20__.

      "Percentage Interest": With respect to any Class __ Certificate, the
undivided percentage ownership interest evidenced by such Certificate in all of
the Certificates of such Class, which percentage ownership interest shall be
equal to the Initial Certificate Principal Balance of such Certificate divided
by the aggregate Initial Certificate Principal Balance of all of the
Certificates of such Class. With respect to a Class __ Certificate, the
undivided percentage ownership interest in such Class, as stated on the face of
such Certificate.

      "Permitted Investments": One or more of the following:

      (i)   direct obligations of, or obligations fully guaranteed as to
            principal and interest by, the United States or any agency or
            instrumentality thereof, provided such obligations are backed by the
            full faith and credit of the United States;

      (ii)  repurchase obligations (the collateral for which is held by a third
            party or the Trustee) with respect to any security described in
            clause (i) above, provided that the long-term unsecured obligations
            of the party agreeing to repurchase such obligations are at the time
            rated by the Rating Agency in one of its two highest short-term
            rating categories 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) 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 at the date of acquisition thereof have been rated by
            the Rating Agency in one of its two highest short-term rating
            categories available;

      (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 the Rating Agency in its highest short-term rating
            available; provided that such commercial paper shall have a
            remaining maturity of not more than 30 days;

      (v)   a money market fund or mutual fund rated by the Rating Agency in the
            highest long-term rating category available; and

      (vi)  other obligations or securities that are acceptable to the Rating
            Agency as a Permitted Investment hereunder and will not reduce the
            rating assigned to the Certificates by such Rating Agency below the
            lower of the then-current rating or the rating assigned to such
            Certificates as of the Closing Date by such Rating Agency, as
            evidenced in writing; 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 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.

      "Permitted Transferee": Any transferee of a Class __ Certificate other
than a Non-United States Person or Disqualified Organization.

                                       5
<PAGE>

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

      "Plan": Any employee benefit plan or certain other retirement plans and
arrangements, including individual retirement accounts and annuities, Keogh
plans and bank collective investment funds and insurance company general or
separate accounts in which such plans, accounts or arrangements are invested,
that are subject to the ERISA and Section 4975 of the Code.

      "Rating Agency": _______________________ or its successors. If such agency
and its successor are no longer in existence, "Rating Agency" shall be such
nationally recognized statistical rating agency, or other comparable Person,
designated by the Depositor, notice of which designation shall be given to the
Trustee.

      "Realized Loss": With respect to any Underlying Certificate, "Realized
Loss" shall have the meaning assigned thereto in the related Underlying
Agreement.

      "Record Date": With respect to any Payment Date occurring in the same
month as the related Distribution Date, the last Business Day of the month
preceding the month in which the related Distribution Date on the Underlying
Certificates occurs, and with respect to any Payment Date occurring in the month
subsequent to the month in which the related Distribution Date occurs, the last
Business Day of the second month preceding the month in which such Payment Date
occurs.

      "REMIC": A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.

      "Responsible Officer": When used with respect to the Trustee, any officer
of the Corporate Trust Division of the Trustee, including any Senior Vice
President, any Vice President, any Assistant Vice President, any Assistant
Secretary, any Trust Officer or any other officer of the Trustee customarily
performing functions substantially similar to those performed by any of the
above designated officers to whom, with respect to a particular matter, such
matter is referred.

      "Rule 144A": Rule 144A under the Securities Act of 1933, as amended, as in
effect from time to time.

      "Termination Date": The Payment Date on which the Trust Fund is terminated
pursuant to Section 6.01.

      "Transfer": Any direct or indirect transfer, sale, pledge, hypothecation
or other form of assignment of any Ownership Interest in a Certificate.

      "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

      "Transferor": Any Person who is disposing by Transfer of any Ownership
Interest in a Certificate.

      "Trust Fund": The segregated pool of assets subject hereto, constituting
the primary trust created hereby and to be administered hereunder, consisting
of:

      (i)   the Underlying Certificates described in the Underlying Certificate
            Schedule, attached hereto as Exhibit C;

      (ii)  the Certificate Account; and

      (iii) all distributions on the Underlying Certificates after the Closing
            Date.

                                       6
<PAGE>

      "Trustee": _____________________, a [national banking association], its
successor in interest, or any successor trustee appointed as herein provided, as
trustee.

      "Trustee Fee": With respect to any Payment Date, the related monthly fee
payable to the Trustee as compensation for its activities hereunder, which shall
be payable from amounts on deposit in the Certificate Account and which shall be
equal to an amount payable at the Trustee Fee Rate on the aggregate Underlying
Certificate Principal Balance of the Underlying Certificates immediately prior
to the related Distribution Date.

      "Trustee Fee Rate": With respect to any Underlying Certificate, an annual
rate equal to _________%.

      "Underlying Agreement": With respect to any Underlying Certificate, the
related agreement, together with all exhibits thereto, pursuant to which such
Underlying Certificate was issued.

      "Underlying Certificate": Any one of the mortgage pass-through
certificates transferred to the Trustee by the Depositor pursuant to Section
2.01, as from time to time are held as a part of the Trust Fund and as are more
fully described in the Underlying Certificate Schedule attached hereto as
Exhibit C.

      "Underlying Certificateholder": The registered holder of any Underlying
Certificate, which following the execution and delivery of this Agreement by the
parties hereto, shall be the Trustee for the benefit of the Certificateholders.

      "Underlying Certificate Principal Balance": With respect to any Underlying
Certificate, as of any Distribution Date (following all distributions to be made
with respect to the Underlying Certificate on such Distribution Date), and as of
any date of determination thereafter until the next succeeding Distribution
Date, the principal balance of such Underlying Certificate as set forth in, or
calculated in accordance with the terms of the related Underlying Agreement on
the basis of, the Distribution Date Statement sent to the Trustee as Underlying
Certificateholder relating to such Distribution Date.

      "Underlying Certificate Schedule": The schedule attached as Exhibit C
hereto identifying the Underlying Certificates.

      "Underlying Event of Default": An "Event of Default" as defined in the
related Underlying Agreement.

      "Underlying Regular Certificates": The classes of Underlying Certificates
that represent regular interests in a REMIC.

      "Underlying Residual Certificates": The classes of Underlying Certificates
that represent residual interests in a REMIC.

      "Underlying Trust": With respect to any Underlying Certificate, the trust
created by the related Underlying Agreement.

      "Underlying Trustee": With respect to any Underlying Agreement, the
related trustee thereunder.

      "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 political subdivision thereof, or an estate
whose income is subject to United States federal income tax purposes regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more United States fiduciaries have the authority to control all decisions of
the trust. The term "United States" shall have the meaning set forth in Section
7701 of the Code or successor provisions.

                                       7
<PAGE>

      "Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. For so long as the related
Classes of Certificates remain outstanding, 99% of all of the Voting Rights
shall be allocated among Holders of the Class __ Certificates and 1% of the
Voting Rights shall be allocated to the Holders of the Class __ Certificates;
provided, however, that any Certificate registered in the name of the Depositor,
the Trustee or any affiliate thereof shall be deemed not to have any Voting
Rights.

      All other capitalized terms used herein, if not otherwise defined herein
and unless the context otherwise requires, shall have the respective meanings
set forth in the applicable Underlying Agreements.

                                   ARTICLE II
  CONVEYANCE OF THE UNDERLYING CERTIFICATES; ORIGINAL ISSUANCE OF CERTIFICATES

      Section 2.01. Conveyance of the Underlying Certificates.

      The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set-over and otherwise convey to the Trustee, in
trust, for the use and benefit of the Certificateholders, without recourse, all
the right, title and interest of the Depositor in and to any and all benefits
accruing to the Depositor from (a) the Underlying Certificates, and all payments
thereon to be made after _____ 1, 20__; (b) the Certificate Account and all
investments therein and proceeds thereof, whether in the form of cash,
instruments, securities or any other properties; and (c) proceeds of the
foregoing (including, but not by way of limitation, cash proceeds, accounts,
accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, rights to payment of any and every kind, and other forms of
obligations and receivables that at any time constitute all or part or are
included in the proceeds of any of the foregoing) (collectively, the "Trust
Fund").

      In connection with such transfer and assignment, the Depositor does hereby
deliver or cause to be delivered to, and deposit or cause to be deposited with,
the Trustee each of the Underlying Certificates, together with the following
documents or instruments relating to each Underlying Certificate:

      (i)   either (A) a duly issued and authenticated certificate endorsed to
            "____________, as trustee under the Trust Agreement, dated _____ __,
            20__, relating to the Residential Resources _____ Mortgage
            Pass-Through Certificates, Series ____-_," together with such
            documents as shall be necessary to cause registration of transfer of
            such certificate to be made and to obtain a duly issued and
            authenticated certificate in such name, or (B) definitive evidence
            that each Underlying Certificate in uncertificated or book-entry
            form, or held through a "clearing corporation" within the meaning of
            the New York Uniform Commercial Code, is registered directly or on
            the books of such clearing corporation or of a financial
            intermediary in the name of the Trustee for the benefit of the
            Certificateholders;

      (ii)  a copy of the related Underlying Agreement; and

      (iii) copies of the most recent Distribution Date Statements delivered to
            the related Underlying Certificateholder with respect to the
            Underlying Certificate.

      The Trustee hereby acknowledges the receipt by it of the Underlying
Certificates and the other documents and instruments referenced above, and
declares that it holds and will hold such Underlying Certificates, such other
documents and instruments and that it holds and will hold all other assets and
documents included in the Trust Fund, in trust for the exclusive use and benefit
of all present and future Certificateholders.

      The transfer of the Underlying Certificates and all other assets
constituting the Trust Fund is absolute and is intended by the parties hereto as
a sale. Except as provided in Sections 2.02, 3.02(b) and 6.01 hereof, the
Trustee shall not assign, sell, dispose of or transfer any interest in the
Underlying Certificates or any other asset constituting the Trust Fund or permit
the Underlying Certificates or any other asset constituting the Trust Fund to be
subjected to any lien, claim or encumbrance arising by, through or under the
Trustee or any person claiming by, through or under the Trustee.

                                       8
<PAGE>

      Promptly after the Closing Date, the Trustee shall cause registration of
transfer of each Underlying Certificate to be made and shall obtain, in exchange
for the documents and instruments specified in Section 2.01(i), a duly issued
and authenticated certificate registered in the name specified in Section 2.01
in respect of such Underlying Certificate. The Depositor shall promptly remit to
the Trustee (by wire transfer of immediately available funds on the date of
receipt) any amounts received by the Depositor in respect of any Underlying
Certificate on or following the date hereof. It is intended that the conveyance
of the Underlying Certificates by the Depositor to the Trustee as provided in
this Section be, and be construed as, an absolute sale of the Underlying
Certificates by the Depositor to the Trustee for the benefit of the
Certificateholders. Furthermore, it is not intended that such conveyance be
deemed a pledge of the Underlying Certificates by the Depositor to the Trustee
to secure a debt or other obligation of the Depositor. However, in the event
that, notwithstanding the intent of the parties, the Underlying Certificates are
held to be the property of the Depositor, or if for any other reason this
Agreement is held or deemed to create a security interest in the Underlying
Certificates, then it is intended that, (a) this Agreement shall also be deemed
to be a security agreement within the meaning of Articles 8 and 9 of the
____________ Uniform Commercial Code and the Uniform Commercial Code of any
applicable jurisdiction; (b) the conveyance provided for in this Section and
Section 2.02 shall be deemed to be a grant by the Depositor to the Trustee for
the benefit of the Certificateholders of a security interest in all of the
Depositor's right, title and interest in and to the Underlying Certificates and
all amounts payable to the Holders of the Underlying Certificates after the
Closing Date in accordance with the terms thereof, and all proceeds of the
conversion, voluntary or involuntary, of the foregoing into cash, instruments,
securities or other property, including without limitation all amounts from time
to time held or invested in the Certificate Account, whether in the form of
cash, instruments, securities or other property; (c) the possession by the
Trustee or its agent of Underlying Certificates and such other items of property
as constitute instruments, money, negotiable documents or chattel paper shall be
deemed to be "possession by the secured party" for purposes of perfecting the
security interest pursuant to the ______________ Uniform Commercial Code and the
Uniform Commercial Code of any applicable jurisdiction (including, without
limitation, Sections 9-305, 8-313 or 8-321 thereof); and (d) notifications to
persons holding such property, and acknowledgments, receipts or confirmations
from persons holding such property, shall be deemed notifications to, or
acknowledgments, receipts or confirmations from, financial intermediaries,
bailees, or agents (as applicable) of the Trustee for the purpose of perfecting
such security interest under applicable law. The Depositor and the Trustee, at
the Depositor's direction, shall to the extent consistent with this Agreement,
take such actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the Underlying Certificates and other
assets constituting the Trust Fund described above, such security interest would
be deemed to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of the Agreement.

Section 2.02. Issuance of Certificates Evidencing Interests in the Trust Fund.

      The Trustee acknowledges the assignment to it of the Underlying
Certificates and, concurrently therewith and in exchange therefor, pursuant to
the written request of the Depositor executed by an officer of the Depositor,
the Trustee has executed and caused to be authenticated and delivered to, or
upon the order of, the Depositor the Certificates in authorized denominations
which evidence ownership of the entire Trust Fund.

Section 2.03. Representations, Warranties and Covenants of the Depositor.

      The Depositor hereby represents and warrants to the Trustee for the
benefit of Certificateholders, as of the Closing Date, that immediately prior to
the assignment of the Underlying Certificates to the Trustee, the Depositor had
good title to, and was the sole owner of, each Underlying Certificate free and
clear of any pledge, lien, encumbrance or security interest and such assignment
validly transfers ownership of the Underlying Certificates to the Trustee, free
and clear of any pledge, lien, encumbrance or security interest. It is
understood and agreed that the representations and warranties set forth in this
Section 2.03 shall survive delivery of the Underlying Certificates to the
Trustee. Upon discovery by either the Depositor or the Trustee of a breach of
any representation or warranty set forth in this Section 2.03 which materially

                                       9
<PAGE>

and adversely affects the interests of the Certificateholders in any Underlying
Certificate, the party discovering such breach shall give prompt written notice
to the other party. In the event of such breach, the Depositor shall have 30
days, from the earlier of the discovery by the Depositor of such breach or the
receipt of such written notice, to cure such breach in all material respects or
repurchase such Underlying Certificate as provided below. If the Depositor fails
to cure such breach, the Depositor shall deposit into the Certificate Account on
the next succeeding Distribution Date an amount equal to 100% of the then
outstanding Underlying Certificate Principal Balance of such Underlying
Certificate, together with the sum of accrued interest on such Underlying
Certificate Principal Balance to the first day of the month in which the
proceeds of such repurchase are to be distributed and the aggregate of all
previously unpaid Available Interest Shortfall Amounts in respect of such
Underlying Certificate. Upon the deposit of such amount, the Trustee is hereby
authorized and shall, at the Depositor's written direction and expense, take
such actions and execute such documents and instruments as shall be necessary to
reconvey to the Depositor the Ownership Interest in such repurchased Underlying
Certificate.

                                  ARTICLE III
                 ADMINISTRATION OF THE UNDERLYING CERTIFICATES;
                   PAYMENTS AND REPORTS TO CERTIFICATEHOLDERS

      Section 3.01. Administration of the Trust Fund and the Underlying
Certificates.

      If at any time the Trustee, as an Underlying Certificateholder, is
requested in such capacity to take any action or to give any consent, approval
or waiver, including without limitation in connection with an amendment of the
related Underlying Agreement or if an Underlying Event of Default occurs under
the related Underlying Agreement, the Trustee, in its capacity as an Underlying
Certificateholder, may take such action in connection with the enforcement of
any rights and remedies available to it in such capacity with respect thereto,
but only in accordance with the written directions of Holders of Certificates
entitled to at least 51% of the Voting Rights. The Trustee shall promptly notify
all of the Certificateholders in writing of any such request.

      Section 3.02. Collection of Monies.

      (a) In connection with its receipt of any distribution on an Underlying
Certificate on any Distribution Date, the Trustee shall review the related
Distribution Date Statement and shall confirm that the information contained
therein is arithmetically consistent; provided, however, that the Trustee shall
have no obligation to recompute, recalculate or verify any underlying
information from which the information in the Distribution Date Statement is
derived. The Trustee shall review each Distribution Date Statement received with
respect to the Underlying Certificates and use its reasonable efforts to obtain
any Distribution Date Statement not timely received and any missing information
required to be disclosed in the Distribution Date Statement pursuant to the
Underlying Agreement to the extent such information is needed to its perform its
duties hereunder. In the event that the Trustee is unable to obtain any
Distribution Date Statement or any such information, the Trustee shall notify
the Depositor and the Trustee and the Depositor shall cooperate in obtaining the
Distribution Date Statement or missing information from the Underlying Trustee.
The Trustee shall not be under any obligation to contact any Underlying Trustee
for information in the Distribution Date Statements which is not required by the
Underlying Agreement.

      If the Trustee shall not have received a distribution on any Underlying
Certificate by the close of business on the date on which such distribution was
expected to be received by the Trustee, the Trustee shall notify the trustee or
other party responsible for effectuating distributions under the related
Underlying Agreement, and (i) if such distribution shall not have been received
by the Trustee one Business Day following such notice or (ii) a Responsible
Officer of the Trustee shall gain actual knowledge of any Underlying Event of
Default under and as defined in any Underlying Agreement, the Trustee shall
promptly notify the Depositor and the Certificateholders in writing and such
parties shall proceed in accordance with the terms and conditions of Section
3.01. The Trustee shall notify the Depositor if any trustee or other party
responsible for effecting distributions under the related Underlying Agreement
discontinues making payments by wire transfer and sends them by regular or
express mail. With respect to each Underlying Agreement for which the Trustee is
the underlying trustee, the Trustee shall make all payments with respect to the
related Underlying Certificate by wire transfer in immediately available funds.

                                       10
<PAGE>

      (b) Except as otherwise provided in Section 6.01, upon its receipt of a
Notice of Final Distribution, the Trustee shall present and surrender the
Underlying Certificate to which such notice applies for final payment thereon in
accordance with the terms and conditions of the related Underlying Agreement and
such Notice of Final Distribution. The Trustee shall promptly deposit in the
Certificate Account the final distribution received upon presentation and
surrender of any Underlying Certificate.

      Section 3.03. Establishment of Certificate Account; Deposits in
Certificate Account.

      (a) The Trustee, for the benefit of the Certificateholders, shall
establish and maintain one or more accounts (collectively, the "Certificate
Account"), each of which shall be an Eligible Account, entitled
"___________________, in trust for the registered holders of Residential
Resources, Inc. Mortgage Pass-Through Certificates, Series _-_," held in trust
by the Trustee for the benefit of the Certificateholders. The Trustee shall
cause the following payments and collections in respect of the Underlying
Certificates to be deposited directly into the Certificate Account on a daily
basis:

            (i) all distributions due and received on the Underlying
Certificates subsequent to the Cut-off Date;

            (ii) any amounts received in connection with the sale of the
Underlying Certificates pursuant to Section 6.01; and

            (iii) any other amounts specifically required to be deposited in the
Certificate Account hereunder.

      The foregoing requirements for deposit in the Certificate Account shall be
exclusive.

      (b) Funds in the Certificate Account may be invested by the Trustee in
Permitted Investments in accordance with the provisions set forth in Section
3.08.

      Section 3.04. Permitted Withdrawals From the Certificate Account.

      The Trustee may from time to time withdraw funds from the Certificate
Account for the following purposes:

            (i) to make payments in the amounts and in the manner provided for
in Section 3.05;

            (ii) to pay itself any Trustee Fee and, to the extent not previously
paid, any unpaid Trustee Fees, and the costs incurred by it in making certain
filings with the Commission pursuant to Section 5.12;

            (iii) to pay itself any investment income on amounts in the
Certificate Account;

            (iv) to reimburse the Depositor or the Trustee for expenses incurred
by and reimbursable to the Depositor or the Trustee pursuant to Section 5.05 or
Section 7.03 or to pay any tax pursuant to Section 860E(e)(6) of the Code,
except as otherwise provided in such Sections; and

            (v) to clear and terminate the Certificate Account upon the
termination of this Agreement.

                                       11
<PAGE>

      The Trustee shall determine the Payment Date in accordance with the
definition thereof. On each Payment Date (other than with respect to the
investment income in clause (iii) above, which may be paid on any date), the
Trustee shall withdraw all funds from the Certificate Account and shall use such
funds withdrawn from the Certificate Account only for the purposes described in
Sections 3.04 and 3.05.

      Section 3.05. Payments.

      (a) On each Payment Date, the Trustee shall withdraw from the Certificate
Account all Available Distribution Amount then on deposit, and the Trustee or
the Paying Agent appointed by the Trustee shall pay such Available Distribution
Amount in the following amounts and order of priority, in each case to the
extent of the remaining Available Distribution Amount:

      t 12 (i) to the Holders of the Class __ Certificates, an amount equal to
the excess of (A) interest and principal in respect of the Underlying Regular
Certificates to the extent received by the Trustee on or before the related
Distribution Date and not previously paid over (B) amounts paid since the prior
Payment Date pursuant to clauses (ii) and (iv) of Section 3.04; and

            (ii) to the Holders of the Class __ Certificates, an amount equal to
principal, interest and any other amounts in respect of the Underlying Residual
Certificates, to the extent received by the Trustee on or before the related
Distribution Date and not previously paid.

      After making the foregoing payments, the Trustee will adjust the
Certificate Principal Balance of the Class __ Certificates to equal the
aggregate outstanding principal balance of the Underlying Regular Certificates.

      (b) All payments made with respect to each Class on any Payment Date shall
be allocated pro rata among the Outstanding Certificates of such Class based
upon their respective Percentage Interests. Payments to the Certificateholders
of each Class on each Payment Date will be made to the Certificateholders of
record on the related Record Date. Payments to any Certificateholder on any
Payment Date shall be made by wire transfer of immediately available funds to
the account of such Certificateholder at a bank or other entity having
appropriate facilities therefor, if such Certificateholder shall have so
notified the Trustee or the Paying Agent in writing at least five Business Days
prior to the related Record Date (which notification shall need to be made only
once) and if such Certificateholder is the registered owner of Certificates with
an aggregate Initial Certificate Principal Balance of not less than
$_______________, or otherwise by check mailed by first class mail to the
address of such Certificateholder appearing in the Certificate Register. Final
payment on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the Corporate Trust Office or
such other location specified in the notice to Certificateholders of such final
payment.

      (c) Except as otherwise provided in Section 6.01, whenever the Trustee
expects that the final payment with respect to any Class of Certificates will be
made on the related Payment Date based on information in the Distribution Date
Statements, the Trustee shall mail on the Business Day prior to such Payment
Date to each Holder of such Class of Certificates a notice to the effect that:

            (i) the Trustee expects that the final payment with respect to such
Class of Certificates will be made on such Payment Date but only upon
presentation and surrender of such Certificates at the office of the Trustee
therein specified; and

            (ii) no interest shall accrue on such Certificates from and after
such Payment Date.

      Upon presentation and surrender of the Certificates by the
Certificateholders on the Termination Date, the Trustee shall distribute to the
Certificateholders the amounts otherwise distributable on such Payment Date
pursuant to Section 3.05(a). Any funds not distributed on such Payment Date
because of the failure of any Certificateholders to tender their Certificates
shall be set aside and held uninvested in trust for the account of the
appropriate non-tendering Certificateholders. If any Certificates as to which
notice has been given pursuant to this Section 3.05(c) shall not have been
surrendered for cancellation within six months after the time specified in such
notice, the Trustee shall mail a second notice to the remaining

                                       12
<PAGE>

Certificateholders, at their last addresses shown in the Certificate Register,
to surrender their Certificates for cancellation in order to receive, from such
funds held, the final payment with respect thereto. If within one year after the
second notice any Certificate shall not have been surrendered for cancellation,
the Trustee shall directly or through an agent, take reasonable steps to contact
the remaining Certificateholders concerning surrender of their Certificates. The
costs and expenses of maintaining such funds and of contacting
Certificateholders shall be paid out of the assets which remain held. If within
two years after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee shall segregate all amounts
distributable to the Holders thereof and shall thereafter hold such amounts
uninvested for the benefit of such Holders. No interest shall accrue or be
payable to any Certificateholder on any amount held as a result of such
Certificateholder's failure to surrender its Certificates for final payment
thereof in accordance with this Section 3.05(c). Notwithstanding the foregoing,
if in the Trustee's judgment, the escheat or unclaimed property laws of the
relevant jurisdiction provide for different procedures regarding unclaimed
funds, the Trustee shall abide by such procedures.

      Section 3.06. Statements to Certificateholders.

      On each Payment Date, the Trustee shall prepare (based, in part and as
applicable, on information in the Distribution Date Statements), and shall
forward by mail, a statement to each Certificateholder and to the Depositor
stating:

            (i) the Available Distribution Amount for such Payment Date;

            (ii) with respect to such Payment Date, amounts of interest and
principal (and other amounts if applicable) distributed to the
Certificateholders of each Class of Certificates on such Payment Date pursuant
to Section 3.05;

            (iii) the Certificate Principal Balance of the Class __ Certificates
after giving effect to payments and other adjustments on such Payment Date;

            (iv) the amount of the Trustee Fee for such Payment Date paid to the
Trustee on such Payment Date; the amounts of any previously unpaid Trustee Fees
paid to the Trustee on such Payment Date and any accrued but unpaid Trustee Fees
receivable by the Trustee on future Payment Dates; and amounts paid to the
Trustee on such Payment Date pursuant to Section 3.04(iv) and any unpaid amounts
receivable on future Payment Dates;

            (v) with respect to the Mortgage Loans in each Underlying Trust, the
amount and percent of delinquencies (broken down by 30 days, 60 days and 90
days), foreclosures and REO;

            (vi) the Realized Losses, if any, allocated to the Underlying
Certificates, by Underlying Trust, on the immediately preceding Distribution
Date and to the Class __ Certificates on that Payment Date and the aggregate
Realized Losses, if any, allocated to the Underlying Certificates, by Underlying
Trust, and to the Class __ Certificates through that Payment Date;

            (vii) with respect to each Underlying Trust, the coverage amount or
principal balance of the related pool insurance policy, special hazard policy,
special hazard fund and letter of credit, as applicable, after application of
any covered losses on the immediately preceding Distribution Date and the
cumulative covered losses applied to such type of credit enhancement through the
immediately preceding Distribution Date;

            (viii) the shortfall of interest, if any, allocated to Holders of
the Underlying Regular Certificates on the immediately preceding Distribution
Date that have reduced the amount of interest distributed to the holders of the
Class __ Certificates on that Payment Date and the aggregate amounts of
shortfall of interest, if any, allocated to Holders of the Underlying Regular
Certificates that have reduced the amount of interest distributed to the holders
of the Class __ Certificates through that Payment Date; and

                                       13
<PAGE>

            (ix) the aggregate Underlying Certificate Principal Balances of the
Underlying Certificates as of the close of business on the immediately preceding
Distribution Date.

      In the case of the information furnished pursuant to clause (ii) above,
the amounts shall also be expressed as a dollar amount per $1,000 of the
applicable Class.

      In addition, the Trustee promptly will furnish to Certificateholders and
the Depositor copies of any notices, statements, reports (other than any
servicing reports) or other communications, including any Distribution Date
Statements, for each Distribution Date received by the Trustee as the Underlying
Certificateholder.

      On or before [the date of this Agreement] of each calendar year, beginning
with calendar year 20__, the Trustee shall prepare, or cause to be prepared, and
deliver, or cause to be delivered, by first class mail to each Person who at any
time during the previous calendar year was a Certificateholder of record a
statement containing the information required to be contained in the regular
monthly report to Certificateholders, as set forth in clause (ii) above
aggregated for such calendar year or the applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code and regulations thereunder as from time to time are in force.

      [Upon the request of any Certificateholder, the Trustee shall furnish to
such holder such information with respect to the Trust Fund and the Certificates
as is reasonably requested by such holder for purposes of enabling such holder
to satisfy the applicable informational requirements under Rule 144A or
otherwise, to the extent that the Trustee possesses such information or can
obtain possession of such information without incurring undue burden or
expense.]

      Section 3.07. Access to Certain Documentation and Information.

      The Trustee shall provide to the Certificateholders access to the
Underlying Certificates and all reports, documents and records maintained by the
Trustee in respect of its duties hereunder, such access being afforded at a
reasonable charge but only upon reasonable written request and during normal
business hours at offices designated by the Trustee.

      Section 3.08. Permitted Investments.

      The Trustee may invest or direct any institution maintaining the
Certificate Account to invest the funds in such Certificate Account in Permitted
Investments, which shall mature not later than the Business Day immediately
preceding the next Payment Date (except that, any investment in the institution
with which the Certificate Account is maintained may mature on such Payment
Date) and shall not be sold or disposed of prior to its maturity. All such
Permitted Investments shall be made in the name of the Trustee or its nominee.
All income and gain received from any such investment shall be deposited in the
Certificate Account, and may only be withdrawn and applied for the purposes set
forth in Section 3.04. The Trustee in its individual capacity, shall deposit in
the Certificate Account the amount of any loss incurred in respect of such
Permitted Investments immediately upon realization of such loss.

      Section 3.09. Reports of Certificate Principal Balances to the Clearing
Agency].

      If and for so long as any Certificate is held by the Clearing Agency, on
the second Business Day before each Payment Date, the Trustee shall give oral
notice to the Clearing Agency (and shall promptly thereafter confirm in writing)
the following: (a) the amount of interest and principal to be distributed on the
Certificates of such Class on the upcoming Payment Date, as reported in the
related remittance report, (b) the Record Date for such distribution, (c) the
Payment Date for such distribution and (d) the aggregate Certificate Principal
Balance of each Class of Certificates reported in such month.]

                                       14
<PAGE>

                                   ARTICLE IV
                                THE CERTIFICATES

      Section 4.01. The Certificates.

      The Certificates will be substantially in the respective forms annexed
hereto as Exhibit A and Exhibit B. The Certificates will be issuable in
[registered form only]. The Class __ Certificates will be issuable in
denominations evidencing initial Certificate Principal Balances of not less than
$[100,000] and integral multiples of $[1,000] in excess thereof, except that one
Certificate of such Class may be issued in an amount evidencing the sum of the
authorized minimum denomination thereof and the remainder of the aggregate
initial Certificate Principal Balance of such Class. The Class __ Certificates
will each be issuable in denominations of any Percentage Interest representing
[5.00]% and multiples of [0.01]% in excess thereof, except that one Certificate
of such Class may be issued with a Percentage Interest representing 0.01%, as
provided in Section 8.03.

      The Certificates shall, on original issue, be executed and authenticated
by the Trustee, not in its individual capacity but solely as Trustee, and
delivered by the Trustee to or upon the order of the Depositor upon receipt by
the Trustee of the Underlying Certificates and any other documents that are
required by this Agreement or that the Trustee may reasonably request. The
Certificates shall be executed by manual signature on behalf of the Trustee in
its capacity as trustee hereunder by an authorized officer. Certificates bearing
the manual signatures of individuals who were at any time the proper officers of
the Trustee shall bind the Trustee, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and
delivery of such Certificates or did not hold such offices at the date of such
Certificates. No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

      Section 4.02. Registration of Transfer and Exchange of Certificates.

      (a) The Trustee shall cause to be kept at one of the offices or agencies
to be appointed by the Trustee in accordance with the provisions of this Section
4.02 a Certificate Register in which, subject to such reasonable regulations as
it may prescribe, the Trustee shall provide for the registration of Certificates
and of transfers and exchanges of Certificates as herein provided. The Trustee
is initially appointed Certificate Registrar for the purpose of registering
Certificates and transfers and exchanges of Certificates as herein provided. The
Certificate Registrar (if not the Trustee) shall provide the Trustee with a
certified list of Certificateholders as of each Record Date prior to the Payment
Date. Upon satisfaction of the conditions set forth below, the Trustee shall
execute and the Certificate Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Certificates
of a like Class and aggregate Percentage Interest. In addition, the Trustee
shall notify the Depositor of every proposed transfer or exchange of the
Certificates.

      (b) At the option of the Certificateholders, Certificates may be exchanged
for other Certificates of authorized denominations of a like Class and aggregate
Percentage Interest, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for exchange
the Trustee shall execute and the Certificate Registrar shall authenticate and
deliver the Certificates of such Class which the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for
transfer or exchange shall (if so required by the Trustee or the Certificate
Registrar) be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Certificate Registrar duly
executed by, the Holder thereof or his attorney duly authorized in writing.

                                       15
<PAGE>

      (c) [Except as provided in Section 4.02(d) 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 of 1933, as amended (the "1933 Act") and such transfer will not
result in the registration of the Trust Fund as an "investment company" under
the Investment Company Act of 1940, as amended (the "1940 Act"), and the
applicable securities laws of any state or other jurisdiction or is registered
or qualified in accordance with the 1933 Act and such laws. In the event that a
Transfer of a Certificate is to be made, (i) the Depositor may direct the
Trustee to require a written Opinion of Counsel acceptable to and in form and
substance satisfactory to the Trustee and the Depositor that such Transfer may
be made pursuant to an exemption, describing the applicable exemption and the
basis therefor, from the 1933 Act and such laws or is being made pursuant to the
1933 Act and such laws, and that such Transfer will not result in the Trust Fund
being deemed an "investment company" under the 1940 Act, which Opinion of
Counsel shall not be an expense of the Trustee or the Depositor and (ii) the
Trustee shall require the Transferee to execute an investor representation
letter, substantially in the form of Exhibit D hereto (a "Transferee
Agreement"), acceptable to and in form and substance satisfactory to the
Depositor and the Trustee certifying to the Trustee and the Depositor the facts
surrounding such Transfer, which Transferee Agreement shall not be an expense of
the Trustee or the Depositor; provided however that such Transferee Agreement
will not be required in connection with any transfer of any such Certificate by
the Depositor to an affiliate of the Depositor, and the Trustee shall be
entitled to conclusively rely upon a representation (which, upon the request of
the Trustee, shall be a written representation) from the Depositor of the status
of such transferee as an affiliate of the Depositor.]

      [The Holder (including the Depositor) of a Certificate desiring to effect
such transfer, sale, pledge or other disposition shall, and by acceptance of
such Certificate agrees to, indemnify the Trustee and the Depositor and the
Certificate Registrar against any liability that may result if the transfer,
sale, pledge or other disposition is not so exempt or is not made in accordance
with the 1933 Act and state laws or results in the registration of the Trust
Fund as an "investment company" under the 1940 Act. Moreover, the Holder
(including the Depositor) of each Certificate, by accepting such Certificate,
covenants with the Depositor and the Trustee that neither such Holder nor anyone
acting on its behalf will (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 or 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 the Certificates under the Securities Act of
1933, as amended (the "1933 Act"), that would render the disposition of any
Certificate a violation of Section 5 of the 1933 Act or any state securities
law, that would result in the registration of the Trust Fund as an "investment
company" under the Investment Company Act of 1940, that would require
registration or qualification pursuant thereto, or that would constitute a sale
or other transfer of the Certificates, except in compliance with the provisions
of this Agreement.]

      (d) No transfer of the Class __ Certificates may be made except to
"qualified institutional buyers" who have complied with the requirements of this
Section 4.02(d) hereof and who constitute Permitted Transferees or to the
Depositor or an Affiliate of the Depositor. Transfers of each Class of
Certificates may be made in accordance with this Section 4.02(d) if the
prospective transferee of a Certificate provides the Trustee and the Depositor
with an investment letter substantially in the form of Exhibit E attached hereto
(a "Rule 144A Certificate"), which Rule 144A Certificate shall not be an expense
of the Trustee or the Depositor, and which Rule 144A Certificate states that,
among other things, such transferee is a "qualified institutional buyer" as
defined under Rule 144A. Such transfers shall be deemed to have complied with
the requirements of Section 4.02(c) hereof; provided, however, that no Transfer
of any of the Certificates may be made pursuant to this Section 4.02(d) by the
Depositor. The Holder (including the Depositor) of a Certificate desiring to
effect any such Transfer hereunder does hereby agree to indemnify the Trustee
and the Depositor and the Certificate Registrar against any liability that may
result if the Transfer is not made in accordance with federal and state laws and
this Agreement.]

                                       16
<PAGE>

      (e) (i) Each Person who has or who acquires any Ownership Interest in a
Class __ Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to
have irrevocably authorized the Trustee or its designee under clause (iii)(A)
below to deliver payments to a Person other than such Person and to negotiate
the terms of any mandatory sale under clause (iii)(B) below and to execute all
instruments of transfer and to do all other things necessary in connection with
any such sale. The rights of each Person acquiring any Ownership Interest in a
Class __ Certificate are expressly subject to the following provisions:

            (A)   Each Person holding or acquiring any Ownership Interest in a
                  Class __ Certificate shall be a Permitted Transferee and shall
                  promptly notify the Trustee of any change or impending change
                  in its status as a Permitted Transferee.

            (B)   In connection with any proposed Transfer of any Ownership
                  Interest in a Class __ Certificate to a United States Person,
                  the Trustee shall require delivery to it, and shall not
                  register the Transfer of any Class __ Certificate until its
                  receipt of an affidavit and agreement (a "Transfer Affidavit
                  and Agreement" attached hereto as Exhibit F) from the proposed
                  Transferee, in form and substance satisfactory to the Trustee,
                  representing and warranting, among other things, such
                  Transferee is a Permitted Transferee, that it is not acquiring
                  its Ownership Interest in the Class __ Certificate that is the
                  subject of the proposed Transfer as a nominee, trustee or
                  agent for any Person who is not a Permitted Transferee, that
                  for so long as it retains its Ownership Interest in a Class __
                  Certificate, it will endeavor to remain a Permitted
                  Transferee, and that it has reviewed the provisions of this
                  Section 4.02(e) and agrees to be bound by them.

            (C)   Notwithstanding the delivery of a Transfer Affidavit and
                  Agreement by a proposed Transferee under clause (B) above, if
                  a Responsible Officer of the Trustee assigned to and working
                  in relation to this transaction has actual knowledge that the
                  proposed Transferee is not a Permitted Transferee or that the
                  proposed Transferee is acting as a nominee, trustee, or agent
                  for any Person who is not a Permitted Transferee in acquiring
                  an Ownership Interest in a Class __ Certificate, no Transfer
                  of an Ownership Interest in a Class __ Certificate to such
                  proposed Transferee shall be effected.

            (D)   Each Person holding or acquiring an Ownership Interest in a
                  Class __ Certificate shall agree to require a Transfer
                  Affidavit and Agreement from any other Person to whom such
                  Person attempts to transfer its Ownership Interest in a Class
                  __ Certificate.

            (E)   Each Person holding or acquiring an Ownership Interest in a
                  Class __ Certificate shall agree not to transfer such
                  Ownership Interest if (1) a purpose of such transfer is or
                  will be to impede the assessment or collection of any tax, (2)
                  the Transferor knows or believes that any representation
                  contained in the proposed Transferee's Transfer Affidavit and
                  Agreement is false, or (3) the Transferor has any actual
                  knowledge that the proposed Transferee is not a Permitted
                  Transferee.

            (F)   Each Person holding or acquiring an Ownership Interest in a
                  Class __ Certificate, by purchasing an Ownership Interest in
                  such Certificate, agrees to give the Trustee written notice
                  that it is a "pass-through interest holder" within the meaning
                  of temporary Treasury regulation Section 1.67-3T(a)(2)(i)(A)
                  immediately upon acquiring an Ownership Interest in a Class __
                  Certificate, if it is a "pass-through interest holder," or is
                  holding an Ownership Interest in a Class __ Certificate on
                  behalf of a "pass-through interest holder."

                                       17
<PAGE>

            (ii) The Trustee will register the Transfer of any Class __
Certificate only if it shall have received the Transfer Affidavit and Agreement
and all of such other documents as shall have been reasonably required by the
Trustee as a condition to such registration. Transfers of the Class __
Certificates to Non-United States Persons and Disqualified Organizations are
prohibited.

      (iii) (A)   If any Disqualified Organization or Non-United States Person
                  shall become a holder of a Class __ Certificate, then the last
                  preceding Permitted Transferee shall be restored, to the
                  extent permitted by law, to all rights as Holder thereof
                  retroactive to the date of registration of such Transfer of
                  such Class __ Certificate. If a transfer of a Class __
                  Certificate is disregarded pursuant to the provisions of
                  Treasury regulation Sections 1.860E-1(c) or 1.860G-3(a), then
                  the last preceding Permitted Transferee shall be restored, to
                  the extent permitted by law, to all rights and obligations as
                  Holder thereof retroactive to the date of registration of such
                  Transfer of such Class __ Certificate. The Trustee shall be
                  under no liability to any Person for any registration of
                  Transfer of a Class __ Certificate that is in fact not
                  permitted by this Section 4.02(e) or for making any payments
                  due on such Certificate to the holder thereof or for taking
                  any other action with respect to such holder under the
                  provisions of this Agreement.

            (B)   If any purported Transferee shall become a Holder of a Class
                  __ Certificate in violation of the restrictions in this
                  Section 4.02(e) and to the extent that the retroactive
                  restoration of the rights of the last preceding Permitted
                  Transferee of such Class __ Certificate as described in clause
                  (iii)(A) above shall be invalid, illegal or unenforceable,
                  then the Trustee shall have the right, without notice to the
                  holder or any prior holder of such Class __ Certificate, to
                  sell such Class __ Certificate to a purchaser selected by the
                  Trustee on such terms as the Trustee may choose. Such
                  purported Transferee shall promptly endorse and deliver each
                  Class __ Certificate in accordance with the instructions of
                  the Trustee. Such purchaser may be the Depositor, the Trustee
                  itself or any affiliate of the Depositor or the Trustee. The
                  proceeds of such sale, net of the commissions (which may
                  include commissions payable to the Trustee or its affiliates),
                  expenses and taxes due, if any, will be remitted by the
                  Trustee to such purported Transferee. The terms and conditions
                  of any sale under this clause (iii)(B) shall be determined in
                  the sole discretion of the Trustee, and the Trustee shall not
                  be liable to any Person having an Ownership Interest in a
                  Class __ Certificate as a result of its exercise of such
                  discretion. In addition, the purported Transferee shall be
                  obligated to reimburse the Trustee for any tax imposed on the
                  Trust Fund pursuant to Section 860E(e)(6) of the Code. The
                  Trustee may collect such reimbursement by withholding from the
                  proceeds of selling the Class __ Certificate to a Permitted
                  Transferee or by exercising any other remedies available at
                  law or equity against the purported Transferee.

            (iv) [The Trustee shall make available to the Internal Revenue
Service and those Persons specified by the REMIC Provisions all information
necessary to compute any tax imposed as a result of the Transfer of an Ownership
Interest in a Class __ Certificate to any Person that is a regulated investment
company, real estate investment trust, common trust fund, partnership, trust,
estate or organization described in Section 1381 of the Code having as among its
record holders at any time any Person that is a Disqualified Organization.]

                                       18
<PAGE>

            (v) The Trustee may charge and shall be entitled to reasonable
compensation for providing such information as may be required from those
Persons which may have had a tax imposed upon them as specified in Section
4.02(e)(iv).

      (f) Except as provided in Section 4.02(e)(v), no service charge shall be
made for any transfer or exchange of Certificates of any Class, but the Trustee
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.

      (g) All Certificates surrendered for transfer and exchange shall be
canceled and retained or destroyed by the Trustee in accordance with the
Trustee's standard procedures.

      (h) [(1) Certificated Certificates.] The Trustee shall require an Opinion
of Counsel from a transferee prior to the transfer of any Certificate to any
Plan subject to ERISA or Section 4975 of the Code, any 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 ("Plan Assets"). Such
Opinion of Counsel must establish to the satisfaction of the Depositor and the
Trustee or the Certificate Registrar 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 or the Trustee 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 or the Trustee. In lieu of such Opinion of Counsel, a
Plan, any Person acting, directly or indirectly, on behalf of any such Plan or
any Person acquiring such Certificates with Plan Assets of a Plan may provide a
certification in the form of Exhibit G to this Agreement, which the Trustee may
rely upon without further inquiry or investigation. Neither an Opinion of
Counsel or certification will not 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 have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets of any Plan) and the Trustee shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trustee,
shall be a written representation) from the Depositor of the status of such
transferee as an affiliate of the Depositor.

            [(2) Book-Entry Certificates. No transfer of all or any portion of
any Class of Book-Entry Certificates that are ERISA Restricted Certificates
shall be made to a transferee that is a Plan Investor.]

      Section 4.03. Mutilated, Destroyed, Lost or Stolen Certificates.

      Each Beneficial Owner of such a Certificate shall be deemed to have
represented, by virtue of its acquisition of such a Certificate, that it is not
a Plan Investor. If (i) any mutilated Certificate is surrendered to the
Certificate Registrar, or the Trustee and the Certificate Registrar receive
evidence to their satisfaction of the destruction, loss or theft of any
Certificate, and (ii) there is delivered to the Trustee and the Certificate
Registrar such security or indemnity as may be required by them to save each of
them harmless, then, in the absence of notice to the Trustee or the Certificate
Registrar that such Certificate has been acquired by a bona fide purchaser, the
Trustee shall execute and the Certificate Registrar shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of the same Class and initial Certificate
Principal Balance. Upon the issuance of any new Certificate under this Section,
the Trustee may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee and the Certificate
Registrar) connected therewith. Any replacement Certificate issued pursuant to
this Section shall constitute complete and indefeasible evidence of ownership in
the Trust Fund, as if originally issued, whether or not the lost, stolen or
destroyed Certificate shall be found at any time.

                                       19
<PAGE>

      Section 4.04. Persons Deemed Owners.

      Prior to due presentation of a Certificate for registration of transfer,
the Depositor, the Trustee, the Certificate Registrar and any agent of the
Depositor, the Trustee or the Certificate Registrar may treat the Person in
whose name any Certificate is registered as the owner of such Certificate for
the purpose of receiving payments pursuant to Section 3.05 and for all other
purposes whatsoever, and neither the Depositor, the Trustee, the Certificate
Registrar nor any agent of the Depositor, the Trustee or the Certificate
Registrar shall be affected by notice to the contrary except as provided in
Sections 4.02(c) or 4.02(d).

      Section 4.05. Appointment of Paying Agent.

      The Trustee initially shall be the Paying Agent. The Trustee may appoint a
Paying Agent for the purpose of making payments to Certificateholders pursuant
to Section 3.05. In the event of any such appointment, on or prior to each
Payment Date the Trustee shall deposit or cause to be deposited with the Paying
Agent a sum sufficient to make the payments to Certificateholders in the amounts
and in the manner provided for in Section 3.05, such sum to be held in trust for
the benefit of Certificateholders.

      The Trustee shall cause each Paying Agent (other than the Trustee) to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee that such Paying Agent will hold all sums held by
it for the payment to Certificateholders in trust for the benefit of the
Certificateholders entitled thereto until such sums shall be paid to such
Certificateholders. Any sums so held by such Paying Agent shall be held only in
Eligible Accounts to the extent such sums are not distributed to the
Certificateholders on the date of receipt by such Paying Agent.

      Section 4.06. [Book-Entry Certificates].

      (a) The Book-Entry Certificates will be represented initially by one or
more certificates registered in the name of CEDE & Co., as nominee of the
Clearing Agency. The Depositor and the Trustee may for all intents and purposes
(including the making of payments on the Book-Entry Certificates) deal with the
Clearing Agency as the authorized representative of the Beneficial Owners of the
Book-Entry Certificates for as long as those Certificates are registered in the
name of the Clearing Agency. The rights of Beneficial Owners of the Book-Entry
Certificates shall be limited to those established by law and agreements between
such Beneficial Owners and the Clearing Agency and Clearing Agency Participants.
The Beneficial Owners of the Book-Entry Certificates shall not be entitled to
certificates for the Book-Entry Certificates as to which they are the Beneficial
Owners, except as provided in subsection (c) below. Requests and directions
from, and votes of, the Clearing Agency, as Holder, shall not be deemed to be
inconsistent if they are made with respect to different Beneficial Owners.
Without the consent of the Depositor and the Trustee, a Book-Entry Certificate
may not be transferred by the Clearing Agency except to another Clearing Agency
that agrees to hold the Book-Entry Certificate for the account of the respective
Clearing Agency Participants and Beneficial Owners.\

      (b) Neither the Depositor nor the Trustee will have any liability for any
aspect of the records relating to or payment made on account of Beneficial
Owners of the Book-Entry Certificates held by the Clearing Agency, for
monitoring or restricting any transfer of beneficial ownership in a Book-Entry
Certificate or for maintaining, supervising or reviewing any records relating to
such Beneficial Owners.

      (c) The Book-Entry Certificates will be issued in fully-registered,
certificated form to Beneficial Owners of Book-Entry Certificates or their
nominees, rather than to the Clearing Agency or its nominee, only if (1) the
Depositor advises the Trustee in writing that the Clearing Agency is no longer
willing or able to discharge properly its responsibilities as depository with
respect to the Book-Entry Certificates and the Depositor is unable to locate a
qualified successor within 30 days or (2) the Depositor, at its option, elects
to terminate the book-entry system operating through the Clearing Agency. Upon
the occurrence of either such event, the Trustee shall notify the Clearing
Agency, which in turn will notify all Beneficial Owners of Book-Entry
Certificates through Clearing Agency Participants, of the availability of
certificated Certificates. Upon surrender by the Clearing Agency of the
certificates representing the Book-Entry Certificates and receipt of
instructions for re-registration, the Trustee will reissue the Book-Entry
Certificates as certificated Certificates to the Beneficial Owners identified in
writing by the Clearing Agency. Such certificated Certificates shall not
constitute Book-Entry Certificates. All reasonable costs associated with the
preparation and delivery of certificated Certificates shall be borne by the
Depositor.]

                                       20
<PAGE>

                                   ARTICLE V
                                   THE TRUSTEE

      Section 5.01. Duties of Trustee.

      (a) The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement and each of the Underlying
Agreements. The Trustee shall notify the Certificateholders of any such
documents which do not materially conform to the requirements of this Agreement
in the event that the Trustee, after so requesting, does not receive
satisfactorily corrected documents or a satisfactory explanation regarding any
such nonconformities.

      The Trustee shall forward or cause to be forwarded in a timely fashion the
notices, reports and statements required to be forwarded by the Trustee pursuant
to Sections 3.02, 3.06 and 6.01.

      (b) No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct; provided, however, that:

            (i) The duties and obligations of the Trustee shall be determined
solely by the express provisions of this Agreement, the Trustee shall not be
liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or obligations
shall be read into this Agreement against the Trustee and, in the absence of bad
faith on the part of the Trustee, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates, opinions or other documents (including, but not limited
to, all Distribution Date Statements) reasonably believed by the Trustee to be
genuine and to have been furnished by the proper party to the Trustee and which
on their face, do not contradict the requirements of this Agreement;

            (ii) The Trustee shall not be personally liable for an error of
judgment made in good faith by a Responsible Officer or Responsible Officers of
the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

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

            (iv) Except to the extent provided in Section 5.02, no provision in
this Agreement shall require the Trustee to expend or risk its own funds or
otherwise incur any personal financial liability in the performance of any of
its duties as Trustee hereunder, or in the exercise of any of its rights or
powers, if the Trustee shall have reasonable grounds for believing that
repayment of funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

      Section 5.02. Certain Matters Affecting the Trustee.

      Except as otherwise provided in Section 5.01:

                                       21
<PAGE>

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

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

            (iii) The Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Agreement or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or
direction of any of the Certificateholders, pursuant to the provisions of this
Agreement, unless such Certificateholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby;

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

            (v) The Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys.

      Section 5.03. Trustee Not Liable for Certificates or Underlying
Certificates.

      The recitals contained herein and in the Certificates (other than the
execution of the Certificates and relating to the acceptance and receipt of the
Underlying Certificates) shall be taken as the statements of the Depositor and
the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity or sufficiency of this Agreement or of the
Certificates (except that the Certificates shall be duly and validly executed
and authenticated by it as Certificate Registrar) or of the Underlying
Certificates of any related document. Except as otherwise provided herein, the
Trustee shall not be accountable for the use or application by the Depositor of
any of the Certificates or of the proceeds of such Certificates, or for the use
or application of any funds paid to the Depositor in respect of the Underlying
Certificates deposited in or withdrawn from the Certificate Account by the
Depositor.

      Section 5.04. Trustee May Own Certificates.

      The Trustee in its individual or any other capacity may become the owner
or pledgee of Certificates with the same rights it would have if it were not
Trustee.

      Section 5.05. Trustee's Fees; Indemnification.

      The Trustee shall be entitled to the Trustee Fee for each Payment Date
from amounts on deposit in the Certificate Account as compensation for all
services rendered by the Trustee and any co-trustee in the execution of the
trusts hereby created and in the exercise and performance of any of the powers
and duties hereunder of the Trustee and any co-trustee. Such compensation shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust. The Depositor covenants and agrees to pay or
reimburse the Trustee for all reasonable expenses, disbursements and advances
incurred or made by the Trustee or any co-trustee in accordance with any of the
provisions of this Agreement (including the reasonable compensation and the
reasonable expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
arise from the Trustee's or co-trustee's negligence, willful misconduct or bad
faith. The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified by the Trust Fund and held harmless against any claim,
loss, liability or expense (including costs and expenses of litigation, and of
investigation, counsel fees, damages, judgments and amounts paid in settlement)
incurred in connection with the Trustee's (i) enforcing its rights and remedies
and protecting the interests, and enforcing the rights and remedies, of the
Certificateholders during the continuance of an Event of Default, (ii) defending
or prosecuting any legal action in respect of this Agreement or the
Certificates, (iii) being the owner of record with respect to the Underlying
Certificates acquired for the benefit of Certificateholders, or (iv) acting or
refraining from acting in good faith at the direction of the holders of the
Certificates entitled to not less than 25% of the Voting Rights; provided,
however, that such indemnification will not extend to any loss, liability or
expense that constitutes a specific liability of the Trustee pursuant to this
Agreement, or to any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence on the part of the Trustee in the
performance of its obligations and duties hereunder, or by reason of its
reckless disregard of such obligations or duties, or as may arise from a breach
of any representation, warranty or covenant of the Trustee made herein. The
provisions of this Section 5.05 shall survive the termination of this Agreement.
Any payment made hereunder by the Depositor to the Trustee shall be from the
Depositor's own funds, without reimbursement from the Trust Fund therefor.

                                       22
<PAGE>

      Section 5.06. Eligibility Requirements for Trustee.

      The Trustee hereunder shall at all times be a corporation or a national
banking association having its principal office in City of ______________,
_____________ or in a state and city acceptable to the Depositor and organized
and doing business under the laws of such state or the United States of America,
authorized under such laws 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 authority. If such corporation or national
banking association publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 5.07.

      Section 5.07. Resignation and Removal of the Trustee.

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

      (b) If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 5.06 and shall fail to resign after written
request therefor by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver
of the Trustee or of its property shall be appointed, or any public officer
shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, then the Depositor
may remove the Trustee and appoint a successor trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee.

      (c) The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which instruments
shall be delivered to the Depositor, one complete set to the Trustee so removed
and one complete set to the successor so appointed.

      (d) Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 5.08.

                                       23
<PAGE>

      Section 5.08. Successor Trustee.

      (a) Any successor trustee appointed as provided in Section 5.07 shall
execute, acknowledge and deliver to the Depositor and to its predecessor trustee
an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee shall become effective and
such successor trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become fully vested with all
the rights, powers, duties and obligations of its predecessor hereunder, with
the like effect as if originally named as trustee herein. The predecessor
trustee shall deliver to the successor trustee all Underlying Certificates and
related documents and statements held by it hereunder, and the Depositor, the
Trustee and the predecessor trustee shall execute and deliver such instruments
and do such other things as may reasonably be required for more fully and
certainly vesting and confirming in the successor trustee all such rights,
powers, duties and obligations.

      (b) No successor trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 5.06.

      (c) Upon acceptance of appointment by a successor trustee as provided in
this Section, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates at their addresses as shown in the
Certificate Register. If the Depositor fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.

      Section 5.09. Merger or Consolidation of Trustee.

      Any corporation or national banking association into which the Trustee may
be merged or converted or with which it may be consolidated or any corporation
or national banking association resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation or
national banking association succeeding to all or substantially all of the
corporation trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation or national banking association shall be
eligible under the provisions of Section 5.06, without the execution or filing
of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding. The Trustee shall mail notice
of any such merger or consolidation to the Certificateholders at their address
as shown in the Certificate Register.

      Section 5.10. Appointment of Co-Trustee or Separate Trustee.

      (a) Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of the Trust Fund or property securing the same may at the time be located, the
Trustee shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Trustee to act as co-trustee or
co-trustees, jointly with the Trustee, or separate trustee or separate trustees,
of all or any part of the Trust Fund, and to vest in such Person or Persons, in
such capacity, such title to the Trust Fund, or any part thereof, and, subject
to the other provisions of this Section 5.10, such powers, duties, obligations,
rights and trusts as the 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 5.06 hereunder and no notice to
Holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 5.08 hereof.

      (b) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 5.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee, and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed (whether as Trustee hereunder
successor to the Trustee hereunder), the Trustee shall be incompetent or
unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust Fund or any
portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

                                       24
<PAGE>

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

      (d) Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee 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
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

      Section 5.11. [Appointment of Office or Agency].

      The Trustee will maintain an office or agency in the [City of _______]
where Certificates may be surrendered for registration of transfer or exchange.
The Trustee initially designates its offices located at
____________________________________________________ for the purpose of keeping
the Certificate Register. The Trustee will maintain an office at the address
stated in Section 9.05 hereof where notices and demands to or upon the Trustee
in respect of this Agreement may be served.

      Section 5.12. Trustee May Enforce Claims Without Possession of
Certificates.

      All rights of action and claims under this Agreement or the Certificates
may be prosecuted and enforced by the Trustee without the possession of any of
the Certificates or the production thereof in any proceeding relating thereto
and any such proceeding instituted by the Trustee shall be brought in its own
name or in its capacity as Trustee. Any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Certificateholders in respect of which such judgment has
been recovered.

      Section 5.13. Filings with the Securities and Exchange Commission.

      The Trustee shall, prepare and file with the Commission any and all
reports, statements and information respecting the Trust Fund and/or the
Certificates required to be filed. Notwithstanding the foregoing, within 15 days
following the Closing Date, the Depositor shall prepare, and the Trustee shall
execute and file with the Commission, a report on Form 8-K setting forth
information with respect to the Underlying Certificates included in the Trust
Fund on the Closing Date.]

                                   ARTICLE VI
                         TERMINATION; EVENTS OF DEFAULT

      Section 6.01. Termination of the Trust Fund.

      (a) The Trust Fund shall be terminated upon the earliest of (i) the
payment in full of the Certificates pursuant to Section 3.05 hereof, (ii)
termination of all of the Underlying Trusts pursuant to Section 6.02 hereof, or
(iii) the date that is twenty-one (21) years from the death of the survivor of
the descendants of Queen Elizabeth II, living on the date hereof.

      (b) The Trustee shall give notice (a "Notice of Termination") of the
Payment Date on which the Trustee anticipates that the final payment will be
made to the Certificateholders. Such Notice of Termination shall be mailed by
the Trustee to affected Certificateholders at their addresses shown in the
Certificate Register as soon as practicable, but in any event, not more than
thirty days, and not less than ten days, prior to the Anticipated Termination
Date. The notice mailed by the Trustee to affected Certificateholders shall:

                                       25
<PAGE>

            (i) specify the Anticipated Termination Date on which the final
payment is anticipated to be made to Holders of Certificates of the Classes
specified therein;

            (ii) specify the amount of any such final payment, if known; and

            (iii) state that the final payment to Certificateholders will be
made only upon presentation and surrender of Certificates at the office of the
Trustee therein specified.

      If the Trust Fund is not terminated on the Anticipated Termination Date
for any reason, the Trustee shall promptly mail notice thereof to each affected
Certificateholder.

      (c) Upon presentation and surrender of the Certificates by the
Certificateholders on the Termination Date, the Trustee shall distribute to the
Certificateholders the amounts otherwise distributable on such Payment Date
pursuant to Section 3.05(a). Any funds not distributed on the Termination Date
because of the failure of any Certificateholders to tender their Certificates
shall be set aside and held in trust for the account of the appropriate
non-tendering Certificateholders, whereupon the Trust Fund shall terminate. If
any Certificates as to which notice of the Termination Date has been given
pursuant to this Section 6.01 shall not have been surrendered for cancellation
within six months after the time specified in such notice, the Trustee shall
mail a second notice to the remaining Certificateholders, at their last
addresses shown in the Certificate Register, to surrender their Certificates for
cancellation in order to receive, from such funds held, the final payment with
respect thereto. If within one year after the second notice any Certificate
shall not have been surrendered for cancellation, the Trustee shall directly or
through an agent, take reasonable steps to contact the remaining
Certificateholders concerning surrender of their Certificates. The costs and
expenses of maintaining such funds and of contacting Certificateholders shall be
paid out of the assets which remain held. If within two years after the second
notice any Certificates shall not have been surrendered for cancellation, the
Trustee shall segregate all amounts distributable to the Holders thereof and
shall thereafter hold such amounts uninvested for the benefit of such Holders.
No interest shall accrue or be payable to any Certificateholder on any amount
held as a result of such Certificateholder's failure to surrender its
Certificate(s) for final payment thereof in accordance with this Section 6.01.

      Section 6.02. Termination of Underlying Trusts.

      As the Holder of the Underlying Residual Certificates, the Trustee has
certain rights to cause an optional termination of each of the Underlying Trusts
in accordance with the terms of the Underlying Agreements. The Trustee shall not
exercise any such right until (a) the Certificate Principal Balance of the Class
__ Certificates is reduced to 5% or less of the Initial Certificate Principal
Balance of the Class __ Certificates, (b) the Trustee's right to cause a
termination of each Underlying Trust is presently exercisable, and (c) a
majority in interest of the Class __ Certificates directs the Trustee in writing
to exercise all of such rights. The Trustee must exercise its rights to
terminate all of the Underlying Trusts if any such right is exercised.

                                  ARTICLE VII.
                                  THE DEPOSITOR

      Section 7.01. Liability of the Depositor.

      The Depositor shall be liable in accordance herewith only to the extent of
the respective obligations specifically imposed upon and undertaken by the
Depositor herein.

      Section 7.02. Merger, Consolidation or Conversion of the Depositor.

                                       26
<PAGE>

      Subject to the following paragraph, the Depositor will keep in full effect
its existence, rights and franchises as a corporation or association under the
laws of the jurisdiction of its incorporation, and will obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement and the Certificates and to perform its duties
under this Agreement.

      The Depositor may be merged or consolidated with or into any Person, or
transfer all or substantially all of its assets to any Person, in which case any
Person resulting from any merger or consolidation to which the Depositor shall
be a party, or any Person succeeding to the business of the Depositor, shall be
the successor of the Depositor hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

      Section 7.03. Limitation on Liability of the Depositor.

      Neither the Depositor, nor any of the directors, officers, employees or
agents of the Depositor, shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement, or for errors in judgment. The
Depositor, and any director, officer, employee or agent of the Depositor may
rely in good faith on any document of any kind which, prima facie, is properly
executed and submitted by any Person respecting any matters arising hereunder.
The Depositor and any director, officer, employee or agent of the Depositor
shall be indemnified and held harmless by the Trust Fund against any loss,
liability or expense incurred in connection with any legal action relating to
this Agreement or the Certificates, other than any loss, liability or expense
incurred by reason of willful misfeasance, bad faith or gross negligence in the
performance of duties or by reason of reckless disregard of obligations or
duties hereunder. The Depositor shall be under no obligation to appear in,
prosecute or defend any legal action unless such action is related to its duties
under this Agreement and which in its opinion does not involve it in any expense
or liability; provided, however, that the Depositor may in its discretion
undertake any such action which it may deem necessary or desirable with respect
to this Agreement and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, and provided that
such action has been consented to by the Holders of Certificates entitled to at
least 51% of the Voting Rights, the legal expenses and costs of such action and
any liability resulting therefrom shall be expenses, costs and liabilities of
the Trust Fund, and the Depositor shall be entitled to be reimbursed therefor
from the Certificate Account as provided in Section 3.04.

                                  ARTICLE VIII
                                 TAX PROVISIONS

      Section 8.01. Trust Administration.

      For federal income tax purposes, the Trust Fund formed pursuant to this
Agreement will be classified as a grantor trust under Subpart E, Part 1 of
Subchapter J of the Code and not as an association taxable as a corporation.

      (a) The Depositor, the Trustee, and the Certificateholders shall take any
action or cause the Trust Fund to take any action necessary to create and
maintain the status of the Trust Fund as a grantor trust for federal income tax
purposes and shall assist each other as necessary to create or maintain such
status.

      (b) The Depositor, the Trustee, and the Certificateholders shall not take
any action or cause the Trust Fund to take any action that could endanger the
status of the Trust Fund as a grantor trust for federal income tax purposes,
unless the Trustee and the Depositor have received an Opinion of Counsel (at the
expense of the party seeking to take such action) to the effect that the
contemplated action will not endanger such status.

      (c) The Trustee or its designee may employ counsel, accountants and
professional assistance to aid in the performance of the accounting necessary
for federal and state tax reporting and compliance or the performance of the
above powers and duties. The expenses incurred by the Trustee or its designee in
connection with the foregoing shall be reimbursed as part of the administrative
expenses of the Trust Fund described in Section 3.01 hereof.

                                       27
<PAGE>

      Section 8.02. Prohibited Activities.

      (a) No REMIC election has been or will be made with respect to the assets
of the Trust.

      (b) Neither the Trustee nor the Depositor shall permit any modification of
any term of any of the Underlying Certificates (including, but not limited to,
the interest rate, the principal balance, the amortization schedule, the
remaining term to maturity, or any other term affecting the amount or timing of
payments on the Underlying Certificates) unless the Trustee has received an
Opinion of Counsel (at the expense of the party seeking to modify any of the
Underlying Certificates) to the effect that such modification would not be
treated as giving rise to a new debt instrument for federal income tax purposes.

      (c) The Trustee shall not sell or dispose of the Underlying Certificates
(except in a disposition pursuant to (i) the default of any Underlying
Certificate, (ii) the bankruptcy of the Trust, (iii) the termination of the
Trust Fund as set forth in Section 6.01 hereof, or (iv) a disposition of an
Underlying Certificate pursuant to Section 2.03 hereof), nor acquire any assets
for the Trust, unless it has received an Opinion of Counsel that such sale,
disposition, or acquisition will not affect adversely the status of the Trust
Fund as a grantor trust under the Code.

      Section 8.03. Tax Matters Person of Underlying Trusts.

      _______________________, as servicer of each of the Underlying Trusts,
shall acquire a Class __ Certificate, representing a [0.01]% Percentage Interest
in such Class, in order to continue to act as the tax matters person (within the
meaning of the provisions of the Code relating to REMICs, which appear at
Sections 860A through 860G of the Code, related Code provisions, and
regulations, announcements and rulings thereunder, as the foregoing may be in
effect from time to time) of each of the REMICs related to the Underlying Trusts
as contemplated in the Underlying Agreements.

                                   ARTICLE IX
                            MISCELLANEOUS PROVISIONS

      Section 9.01. Amendment.

      (a) This Agreement may be amended from time to time by the Depositor and
the Trustee, without the consent of any of the Certificateholders, (i) to cure
any ambiguity, (ii) to correct, modify or supplement any provisions herein which
may be defective or inconsistent with any other provisions herein, (iii) to
amend this Agreement in any respect subject to the provisions below, or (iv) if
such amendment, as evidenced by an Opinion of Counsel (provided by the Person
requesting such amendment) delivered to the Trustee, is reasonably necessary to
comply with any requirements imposed by the Code or any successor or amendatory
statute or any temporary or final regulation, revenue ruling, revenue procedure
or other written official announcement or interpretation relating to federal
income tax laws or any proposed such action which, if made effective, would
apply retroactively to the Trust Fund at least from the effective date of such
amendment; provided that such action (except any amendment described in (iv)
above) shall not, as evidenced by an Opinion of Counsel (provided by the Person
requesting such amendment) or by confirmation of each Rating Agency that the
credit ratings assigned to the Certificates will not be downgraded or withdrawn,
delivered to the Trustee, adversely affect in any material respect the interests
of any Certificateholder (other than Certificateholders who shall consent to
such amendment).

      (b) This Agreement may also be amended from time to time by the Depositor,
and the Trustee with the consent of the Holders of Certificates evidencing in
the aggregate not less than 66 2/3% of the Percentage Interests of each Class of
Certificates affected thereby for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holders of Certificates of such
Class; provided, however, that no such amendment shall:

                                       28
<PAGE>

            (i) reduce in any manner the amount of, or delay the timing of,
payments which are required to be distributed on any Certificate without the
consent of the Holder of such Certificate,

            (ii) adversely affect in any material respect the interest of the
Holders of Certificates of any Class in a manner other than as described in
clause (i) hereof without the consent of all Holders of Certificates of such
Class, or

            (iii) reduce the aforesaid percentage of Certificates of any Class
the Holders of which are required to consent to any such amendment, in any such
case without the consent of the Holders of all Certificates of such Class then
outstanding.

      (c) Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel (at the expense of the party seeking such
amendment) to the effect that such amendment or the exercise of any power
granted to the Depositor or the Trustee in accordance with such amendment will
not result in a loss of grantor trust status for, or the imposition of a tax on,
the Trust Fund.

      (d) Promptly after the execution of any such amendment the Trustee shall
furnish written notification of the substance of such amendment to each
Certificateholder. It shall not be necessary for the consent of
Certificateholders under this Section 9.01 to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe. The cost of an Opinion
of Counsel delivered pursuant to this Section 9.01 shall be an expense of the
party requesting such amendment, but in any case shall not be an expense of the
Trustee.

      (e) The Trustee may, but shall not be obligated to enter into any
amendment pursuant to this Section that affects its rights, duties and
immunities under this Agreement or otherwise.

      Section 9.02. Counterparts.

      For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

      Section 9.03. Limitation on Rights of Certificateholders.

      (a) The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust Fund, nor 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 the Trust Fund, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

      (b) No Certificateholder shall have any right to vote (except as expressly
provided for herein) or in any manner otherwise control the operation and
management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of the Certificates,
be construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third party by reason of any action taken by the parties to
this Agreement pursuant to any provision hereof.

                                       29
<PAGE>

      (c) No Certificateholder shall have any right by virtue of any provision
of this Agreement to institute any suit, action or proceeding in equity or at
law upon or under or with respect to this Agreement, unless such Holder
previously shall have given to the Trustee a notice of a default by the
Depositor or the Trustee in the performance of any obligation hereunder, and of
the continuance thereof, as hereinbefore provided, and unless also the Holders
of Certificates entitled to at least 33% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

      Section 9.04. Governing Law.

      This Agreement and the Certificates shall be construed in accordance with
the laws of the State of _____________ and the obligations, rights and remedies
of the parties hereunder shall be determined in accordance with such laws.

      Section 9.05. Notices.

      All demands and notices hereunder shall be in writing and shall be deemed
effective upon receipt when delivered to (a) in the case of the Depositor,
Residential Resources, Inc., 333 North Wilshire Avenue, Anaheim, California
92801, Attention: President, or such other address as may hereafter be furnished
to the Trustee in writing by the Depositor, (b) in the case of the Trustee,
_______________________________, Attention: _______________________ or such
other address as may hereafter be furnished to the Depositor in writing by the
Trustee, and (c) in the case of the Rating Agency, _______________________, New
York, New York __________, Attention: ___________________, or such other address
as may hereafter be furnished to the Depositor and the Trustee in writing by the
Rating Agency. Any notice required or permitted to be mailed 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 Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder receives
such notice.

      Section 9.06. Notices to Rating Agency.

      The Depositor or the Trustee, as applicable, shall notify the Rating
Agency at such time as it is otherwise required pursuant to this Agreement to
give notice of the occurrence of any of the events described in clauses (a),
(b), (d), (e) or (f) below or provide a copy to the Rating Agency at such time
as otherwise required to be delivered pursuant to this Agreement of the
statements described in clause (c) below:

      (a) a material change or amendment to this Agreement,

      (b) the termination or appointment of a successor Trustee or a change in
the majority ownership of the Trustee,

      (c) the statement required to be delivered to the Holders of each Class of
Certificates pursuant to Section 3.06,

      (d) a change in the location of the Certificate Account,

                                       30
<PAGE>

      (e) the occurrence of the Final Payment Date, and

      (f) the repurchase of any Underlying Certificate.

      Section 9.07. Severability of Provisions.

      If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

      Section 9.08. Successors and Assigns.

      The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto, and all
such provisions shall inure to the benefit of the Certificateholders.

      Section 9.09. Article and Section Headings.

      The article and Section headings herein are for convenience of reference
only, and shall not limit or otherwise affect the meaning hereof.

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

                                  RESIDENTIAL RESOURCES, INC.,  as Depositor

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

                                  _______________________________,  as Trustee

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

                                       31
<PAGE>

STATE OF _____________________  )
                                ) ss:
COUNTY OF ____________________  )

      On the _____ day of _____, 20__ before me, a notary public in and for said
State, personally appeared , known to me to be the ______ of Residential
Resources, Inc., the Arizona corporation that executed the within instrument,
and also known to me to be the person who executed it on behalf of said
corporation, and acknowledged to me that such corporation executed the within
instrument.

      IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

----------------------------------
Notary Public

[Notarial Seal]

STATE OF _________________________  )
                                    )ss:
COUNTY OF ________________________  )

      On the ____ day of _____, 20__ before me, a notary public in and for said
State, personally appeared , known to me to be a of _______________________, the
[national banking association] that executed the within instrument, and also
known to me to be the person who executed it on behalf of said corporation, and
acknowledged to me that such corporation executed the within instrument.

      IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

-----------------------
Notary Public

[Notarial Seal]

                                       32
<PAGE>

                                    EXHIBIT A

                          FORM OF CLASS __ CERTIFICATE

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS 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.

      RESIDENTIAL RESOURCES, INC. MORTGAGE PASS-THROUGH CERTIFICATES, SERIES ___

                                      - - -

      NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN,
OR PERSON USING "PLAN ASSETS" OF ANY PLAN TO EFFECT SUCH ACQUISITION (INCLUDING
ANY INSURANCE COMPANY OR BANK COLLECTIVE INVESTMENT FUND UNDER THE CIRCUMSTANCES
DESCRIBED IN THE AGREEMENT), SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR THE INTERNAL REVENUE CODE
OF 1986 (THE "CODE"), UNLESS THE TRANSFEREE PROVIDES AN OPINION OF COUNSEL OR
CERTIFICATION OF FACTS UNDER THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
AGREEMENT), SATISFACTORY TO THE DEPOSITOR AND THE TRUSTEE OR THE CERTIFICATE
REGISTRAR, THAT SUCH DISPOSITION WILL NOT VIOLATE THE PROHIBITED TRANSACTION
PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

      Series ___ - - - Aggregate Initial Certificate Class Principal Balance of
all of the Class __ Certificates as[Rate]of the Closing Date: $_____________
Date of Trust Agreement and Closing Date: _____ __, 20__ Initial Certificate
Principal Balance of this Certificate:$_____________ Depositor: Residential
Resources _____ Anticipated First Payment Date: No. __________ [25], 20__
Trustee: _____________________ CUSIP:_____________________

      [THE PRINCIPAL OF THIS CERTIFICATE IS SUBJECT TO PREPAYMENT FROM TIME TO
TIME WITHOUT SURRENDER OF OR NOTATION ON THIS CERTIFICATE. ACCORDINGLY, THE
CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE LESS THAN THAT SET
FORTH ABOVE, AND MAY BE ZERO. ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN
ITS CURRENT CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE TRUSTEE.]

                                TRUST CERTIFICATE

evidencing a beneficial ownership interest in a trust fund (the "Trust Fund")
consisting primarily of mortgage pass-through certificates sold by
__________________________.

      THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND
DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE DEPOSITOR, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED OR
INSURED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY OR BY THE DEPOSITOR, THE
TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES.

                                       33
<PAGE>

      This certifies that _____________________________ is the registered owner
of the Percentage Interest evidenced by this Certificate (obtained by dividing
the Initial Certificate Principal Balance of this Certificate by the Aggregate
Initial Certificate Principal Balance of all of the Class __ Certificates, both
as specified above) in that certain beneficial ownership interest evidenced by
all of the Class __ Certificates in the Trust Fund, which consists primarily of
mortgage pass-through certificates (the "Underlying Certificates") sold by the
Depositor specified above (which term includes any successor entity under the
Agreement referred to below). The Trust Fund was created pursuant to an Trust
Agreement dated the date specified above (the "Agreement") between the
Depositor, as depositor, and the Trustee specified above, as trustee, a summary
of certain of the pertinent provisions of which is set forth hereinafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned thereto in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
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, the Trustee will pay or cause to
be paid on the Business Day immediately following (i) the [25]th day of each
month or, (ii) if such [25]th day is not a Business Day, then the next Business
Day (the "Payment Date"), commencing on the anticipated first Payment Date
specified above, to the Person in whose name this Certificate is registered (x)
with respect to any Payment Date that occurs in the same month as the related
Distribution Date, on the last Business Day of the month preceding the month of
the related Distribution Date for the Underlying Certificates or (y) with
respect to any Payment Date that occurs in the month subsequent to the month in
which the related Distribution Date occurs, the last Business Day in the second
month preceding the month in which such Payment Date occurs (the "Record Date").
Payments will be made from the Available Distribution Amount in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be paid to the Holders of Class __ Certificates on such
Payment Date. Reference is hereby made to the further provisions of this
Certificate and the Agreement set forth herein, which further provisions shall
for all purposes have the same effect as though fully set forth at this place.

      [So long as this Certificate is registered in the name of a Clearing
Agency or its nominee, the Trustee will make payments of principal and interest
on this Certificate by wire transfers of immediately available funds to the
Clearing Agency or its nominee. Otherwise, all distributions made on any
Certificate pursuant to the Agreement will be made by or on behalf of the
Trustee on each Distribution Date to the Holder of such Certificate as of the
related Record Date (i) by check mailed to such Holder at its address reflected
in the Certificate Register as of the related Record Date or (ii) if such Holder
is the Holder of Certificates of this Class with aggregate initial denominations
of at least $___________, by wire transfer of immediately available funds to the
account of such Holder, upon receipt by the Trustee of a written request of such
Holder accompanied by the appropriate wiring instructions at or before the
Closing Date or, in the case of any wire instructions delivered after the
Closing Date, at least five Business Days prior to the related Record Date. A
fee may be charged by the Trustee to a Holder of Certificates for any
distribution made to such Holder by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency of the Trustee specified
in the final distribution notice to Certificateholders.]

      [All payments will be made or caused to be made by the Trustee either (i)
by check mailed to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, or (ii) at the request of the
Person entitled thereto, if such Person shall have so notified the Trustee in
writing at least five Business Days prior to the related Record Date and such
Certificateholder is the registered holder of Certificates the aggregate Initial
Certificate Principal Balance of which is not less than $____________, in
immediately available funds by wire transfer to the account of such Person at a
bank or other entity having appropriate facilities therefor. Notwithstanding the
above, the final payment on this Certificate will be made after due notice by
the Trustee of the pendency of such payment and only upon presentation and
surrender of this Certificate at the office of the Trustee. The Certificate
Principal Balance hereof will be reduced to the extent of payments allocable to
principal and the principal portions of any Realized Losses allocable hereto.]

                                       34
<PAGE>

      This Certificate is one of a duly authorized issue of Certificates issued
in several Classes designated as Mortgage Pass-Through Certificates of the
Series specified above (herein collectively called the "Certificates"). The
Certificates are limited in right of payment to certain distributions in respect
of the Underlying Certificates, all as more specifically set forth herein and in
the Agreement.

      As provided in the Agreement, withdrawals from the Certificate Account
created for the benefit of Certificateholders may be made by the Trustee from
time to time for purposes other than payments to Certificateholders, such
purposes including reimbursement to the Depositor and the Trustee of certain
expenses incurred by either of them.

      The Agreement permits, with certain exceptions therein provided, the
amendment of the Agreement and the modification of the rights and obligations of
the Depositor and the Trustee and the rights of the Certificateholders under the
Agreement at any time by the Depositor and the Trustee with the consent of the
Holders of Certificates evidencing in the aggregate not less than 66% of the
Percentage Interests of each Class of Certificates affected thereby. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

      [As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at
Corporate Trust Office, duly endorsed by, or accompanied by an assignment in the
form below or other written instrument of transfer in form satisfactory to the
Trustee and 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 the same Class in authorized denominations evidencing the same
aggregate initial Certificate Principal Balance will be issued to the designated
transferee or transferees.]

      [As provided in the Agreement and subject to any limitations on transfer
of this Certificate by a Clearing Agency or its nominee and certain limitations
set forth in the Agreement, the transfer of this Certificate is registrable in
the Certificate Register upon surrender of this Certificate for registration of
transfer at the principal Corporate Trust Office of the Trustee or such other
offices or agencies appointed by the Trustee for that purpose or such other
locations, if any, provided in the Agreement, duly endorsed by, or accompanied
by an assignment in the form attached hereto or other written instrument of
transfer in form satisfactory to the Trustee and 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 the same Class in
authorized denominations will be issued to the designated transferee or
transferees.]

      [No transfer of this Certificate will be made unless such transfer is
exempt from or is made in accordance with the registration and qualification
requirements of the 1933 Act and any applicable state securities laws. In the
event that such transfer is to be made without such registration or
qualification, (i) the Trustee will require the transferee to execute an
investment letter in substantially the form required under the Agreement, which
investment letter shall not be an expense of the Depositor or the Trustee, and
(ii) in the event that such transfer is not made pursuant to Rule 144A under the
1933 Act, the Depositor may direct the Trustee to require an Opinion of Counsel
satisfactory to the Depositor and the Trustee that such transfer may be made
without such registration or qualification and that such transfer will not
result in the registration of the Trust Fund as an "investment company" under
the Investment Company Act of 1940 (the "1940 Act"), which Opinion of Counsel
shall not be an expense of the Depositor or the Trustee. Neither the Depositor,
the Trustee nor any other entity will register this Certificate under the 1933
Act, qualify this Certificate under any state securities law or provide
registration rights to any purchaser. The holder of this Certificate desiring to
effect such transfer shall indemnify the Trustee 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. This Certificate may not be
transferred to any Person other than a Person that is an "accredited investor"
of the type specified in Rule 3a-7(a)(2)(i) under the Investment Company Act of
1940, as amended, or to "qualified institutional buyers" within the meaning of
Rule 144A in accordance with the provisions of Section 4.02 of the Agreement.]

                                       35
<PAGE>

      [The Depositor, the Trustee and the Certificate Registrar and any agent of
the Depositor, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Depositor, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.]

      In addition, no transfer of this Certificate or any interest herein will
be made to any employee benefit plan or other retirement arrangement, including
individual retirement accounts and annuities, Keogh plans and collective
investment funds and separate accounts in which such plans, accounts or
arrangements are invested, or any entity that is deemed to be investing plan
assets, that is subject to the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"), or the Code (each a "Plan"), unless the prospective
transferee of this Certificate provides the Trustee with an Opinion of Counsel
(or, if such prospective transferee is an insurance company or a bank collective
investment fund, a certification of facts) which establishes to the satisfaction
of the Depositor and the Trustee that such transfer will not result in a
violation of Section 406 of ERISA or Section 4975 of the Code or subject the
Depositor or the Trustee to any obligation in addition to those undertaken in
the Agreement or result in the imposition of an excise tax under Section 4975 of
the Code. Neither the Depositor nor the Trustee will be required to obtain or
pay for any such Opinion of Counsel or certification of facts on behalf of any
prospective transferee of this Certificate.

      [The Certificates are issuable in fully registered form and in
denominations specified in the Agreement. As provided in the Agreement and
subject to certain limitations therein set forth, the Certificates are
exchangeable for new Certificates of the same Class in authorized denominations
evidencing the same aggregate Initial Certificate Principal Balance, as
requested by the Holder surrendering the same.]

      No service charge will be made for any such registration of transfer or
exchange, but the Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

      The Depositor, the Trustee and the Certificate Registrar and any agent of
the Depositor, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Depositor, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

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

      The obligations created by the Agreement in respect of the Certificates
and the Trust Fund created thereby shall terminate upon payment to the
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following receipt of the
final distribution to be made on the last remaining Underlying Certificate in
the Trust Fund upon presentation and surrender of such Underlying Certificate in
accordance with the terms and conditions of the related Underlying Trust
Agreement. The Agreement provides for the Trustee to terminate each of the
Underlying Trusts by a terminating purchase upon the direction of a majority in
interest of the Class __ Certificates. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate of the Certificate Principal Balances of the Certificates at
the time of purchase being less than or equal to 5% of the aggregate of the
Initial Certificate Principal Balances of the Certificates at the Closing Date.

      Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

      The recitals contained herein shall be taken as statements of the
Depositor or the Trustee, as the case may be.

                                       36
<PAGE>

      IN WITNESS WHEREOF, the Trustee in its capacity as trustee under the
Agreement has caused this Certificate to be duly executed.

Dated: ______ __, 20__

___________________________________,as Trustee

By:  _______________________________Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

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

______________________________,  as Certificate Registrar

By:___________________________  Authorized Officer

                                       37
<PAGE>

                                   ASSIGNMENT

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

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

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

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

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

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

----------------------------------------------------------
Social Security or other identifying number of assignee:

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

the beneficial interest evidenced by the within Trust Certificate and hereby
authorizes the registration of transfer of such interest to the above-named
assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Certificate Registrar to issue a new Certificate of a
like denomination and class to the above named assignee and deliver such
Certificate(s) to the following address:___________________________

Dated:

_______________________________________  Signature by or on behalf of assignor

_______________________________________  Signature Guaranteed

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever, and must be guaranteed by a
commercial bank or trust company on the continental United States or by a firm
or corporation having membership in any national securities exchange or in the
National Association of Securities Dealers, Inc.

                                       38
<PAGE>

                                                   PAYMENT INSTRUCTIONS

      The assignee should include the following for purposes of payment:

      Payments shall be made, by wire transfer or otherwise, in immediately
available funds to ______________________________________________________ for
the account of ______________ _________________________________ account number
_______________, or, if mailed by check, to ____________________. Applicable
statements should be mailed to ________________________________________________.
This information is provided by _______________________________, the assignee
named above, or _____________________________, as its agent.

                                       39
<PAGE>

                                    EXHIBIT B

                          FORM OF CLASS __ CERTIFICATE

  RESIDENTIAL RESOURCES, INC. MORTGAGE PASS-THROUGH CERTIFICATES, SERIES ____-_

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED OR QUALIFIED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF
ANY STATE AND MAY NOT BE TRANSFERRED UNLESS IT IS REGISTERED OR QUALIFIED
PURSUANT TO THE 1933 ACT AND SUCH LAWS OR IS TRANSFERRED IN A TRANSACTION WHICH
IS EXEMPT FROM REGISTRATION AND QUALIFICATION UNDER THE 1933 ACT AND UNDER
APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 4.02 OF THE TRUST AGREEMENT REFERRED TO HEREIN (THE "AGREEMENT"). THIS
CERTIFICATE MAY ONLY BE TRANSFERRED TO QUALIFIED INSTITUTIONAL BUYERS WITHIN THE
MEANING OF RULE 144A IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4.02 OF THE
AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO AN EMPLOYEE BENEFIT PLAN, OR
PERSON USING "PLAN ASSETS" OF ANY PLAN TO EFFECT SUCH ACQUISITION (INCLUDING ANY
INSURANCE COMPANY OR BANK COLLECTIVE INVESTMENT FUND UNDER THE CIRCUMSTANCES
DESCRIBED IN THE AGREEMENT), SUBJECT TO SECTION 406 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR THE INTERNAL REVENUE CODE
OF 1986 (THE "CODE"), UNLESS THE TRANSFEREE PROVIDES AN OPINION OF COUNSEL OR
CERTIFICATION OF FACTS UNDER THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
AGREEMENT), SATISFACTORY TO THE DEPOSITOR AND THE TRUSTEE OR THE CERTIFICATE
REGISTRAR, THAT SUCH DISPOSITION WILL NOT VIOLATE THE PROHIBITED TRANSACTION
PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES TO THE TRUSTEE A TRANSFER AFFIDAVIT TO THE
EFFECT THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED STATES, ANY STATE
OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES OR ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND, EXCEPT
FOR THE FEDERAL HOME LOAN MORTGAGE CORPORATION, A MAJORITY OF ITS BOARD OF
DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL AUTHORITY), (B) ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION OR ANY AGENCY OR INSTRUMENTALITY OF
ANY OF THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN A FARMERS' COOPERATIVE
DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY
CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY
SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME, (D) A RURAL
ELECTRIC AND TELEPHONE COOPERATIVE DESCRIBED IN SECTION 1381(A)(2)(C) OF THE
CODE OR (E) ANY OTHER PERSON DESIGNATED BY THE TRUSTEE BASED ON AN OPINION OF
COUNSEL, (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D)
OR (E) BEING HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (F) AN
AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO
IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES
CERTAIN ADDITIONAL CONDITIONS TO THE PROPOSED TRANSFER. NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER
DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A
DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL
FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE
RECEIPT OF PAYMENTS ON THIS CERTIFICATE. IF A TAX IS IMPOSED ON THE TRUST FUND
AS A RESULT OF THE ACQUISITION OF THIS CERTIFICATE BY A DISQUALIFIED
ORGANIZATION, SUCH DISQUALIFIED ORGANIZATION SHALL BE LIABLE TO REIMBURSE THE
TRUST FUND FOR SUCH TAX. EACH HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS
CERTIFICATE, SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

                                       40
<PAGE>

IF ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE IS MADE TO ANY
OF CERTAIN "PASS-THROUGH ENTITIES" DESCRIBED IN SECTION 860E(E)(6) OF THE CODE,
AND A DISQUALIFIED ORGANIZATION IS THE RECORD HOLDER OF AN INTEREST IN SUCH
ENTITY, THEN A TAX MAY BE IMPOSED ON SUCH ENTITY.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO A NON-UNITED STATES PERSON (AS
DEFINED IN THE AGREEMENT).

Series ___ - Depositor: Residential Resources _______ Class __Percentage
Interest Evidenced No. _____by this Certificate: _____; CUSIP: ___________
Anticipated First Payment Date: _____ __, 20__; Date of Trust Agreement and
Closing Date: _____ __, 20__ Trustee: ______________________

                                       41
<PAGE>

                                TRUST CERTIFICATE

evidencing a beneficial ownership interest in a trust fund (the "Trust Fund")
consisting primarily of mortgage pass-through certificates sold by
________________________________________.

THIS CERTIFICATE IS PAYABLE SOLELY FROM THE ASSETS OF THE TRUST FUND, AND DOES
NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE DEPOSITOR, THE TRUSTEE OR ANY
OF THEIR RESPECTIVE AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED OR INSURED BY
ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY OR BY THE DEPOSITOR, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES.

This certifies that _____________________________ is the registered owner of the
Percentage Interest specified above in that certain beneficial ownership
interest evidenced by all of the Class __ Certificates in the Trust Fund, which
consists primarily of mortgage pass-through certificates (the "Underlying
Certificates") sold by the Depositor specified above (which term includes any
successor entity under the Agreement referred to below). The Trust Fund was
created pursuant to a Trust Agreement dated the date specified above (the
"Agreement") between the Depositor, as depositor, and the Trustee specified
above, as trustee, a summary of certain of the pertinent provisions of which is
set forth hereinafter. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned thereto in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which 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, the Trustee will pay or cause to be paid
on the Business Day immediately following (i) the [25]th day of each month or,
(ii) if such [25]th day is not a Business Day, then the next Business Day (the
"Payment Date"), commencing on the anticipated first Payment Date specified
above, to the Person in whose name this Certificate is registered (x) with
respect to any Payment Date that occurs in the same month as the related
Distribution Date, on the last Business Day of the month preceding the month of
the related Distribution Date for the Underlying Certificates or (y) with
respect to any Payment Date that occurs in the month subsequent to the month in
which the related Distribution Date occurs, the last Business Day in the second
month preceding the month in which such Payment Date occurs (the "Record Date").
Payments will be made from the Available Distribution Amount in an amount equal
to the product of the Percentage Interest evidenced by this Certificate and the
amount required to be paid to the Holders of Class __ Certificates on such
Payment Date. Reference is hereby made to the further provisions of this
Certificate and the Agreement set forth herein, which further provisions shall
for all purposes have the same effect as though fully set forth at this place.

All payments will be made or caused to be made by the Trustee by check mailed to
the address of the Person entitled thereto, as such name and address shall
appear on the Certificate Register. Notwithstanding the above, the final payment
on this Certificate will be made after due notice by the Trustee of the pendency
of such payment and only upon presentation and surrender of this Certificate at
the office of the Trustee.

This Certificate is one of a duly authorized issue of Certificates issued in
several Classes designated as Mortgage Pass-Through Certificates of the Series
specified above (herein collectively called the "Certificates"). The
Certificates are limited in right of payment to certain distributions in respect
of the Underlying Certificates, all as more specifically set forth herein and in
the Agreement.

As provided in the Agreement, withdrawals from the Certificate Account created
for the benefit of Certificateholders may be made by the Trustee from time to
time for purposes other than payments to Certificateholders, such purposes
including reimbursement to the Depositor and the Trustee of certain expenses
incurred by either of them.

The Agreement permits, with certain exceptions therein provided, the amendment
of the Agreement and the modification of the rights and obligations of the
Depositor and the Trustee and the rights of the Certificateholders under the
Agreement at any time by the Depositor and the Trustee with the consent of the
Holders of Certificates evidencing in the aggregate not less than 66% of the
Percentage Interests of each Class of Certificates affected thereby. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                                       42
<PAGE>

As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at
Corporate Trust Office, duly endorsed by, or accompanied by an assignment in the
form below or other written instrument of transfer in form satisfactory to the
Trustee and 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 the same Class in authorized denominations evidencing the same
aggregate initial Certificate Principal Balance will be issued to the designated
transferee or transferees.

No transfer of this Certificate will be made unless such transfer is exempt from
or is made in accordance with the registration and qualification requirements of
the 1933 Act and any applicable state securities laws. In the event that such
transfer is to be made without such registration or qualification, (i) the
Trustee will require the transferee to execute an investment letter in
substantially the form required under the Agreement, which investment letter
shall not be an expense of the Depositor or the Trustee, and (ii) in the event
that such transfer is not made pursuant to Rule 144A under the 1933 Act, the
Depositor may direct the Trustee to require an Opinion of Counsel satisfactory
to the Depositor and the Trustee that such transfer may be made without such
registration or qualification and that such transfer will not result in the
registration of the Trust Fund as an "investment company" under the Investment
Company Act of 1940 (the "1940 Act"), which Opinion of Counsel shall not be an
expense of the Depositor or the Trustee. Neither the Depositor, the Trustee nor
any other entity will register this Certificate under the 1933 Act, qualify this
Certificate under any state securities law or provide registration rights to any
purchaser. The holder of this Certificate desiring to effect such transfer shall
indemnify the Trustee 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. This Certificate may not be transferred to any Person other than a
Person that is a "qualified institutional buyer" within the meaning of Rule 144A
in accordance with the provisions of Section 4.02 of the Agreement.

In addition, no transfer of this Certificate or any interest herein will be made
to any employee benefit plan or other retirement arrangement, including
individual retirement accounts and annuities, Keogh plans and collective
investment funds and separate accounts in which such plans, accounts or
arrangements are invested, or any entity that is deemed to be investing plan
assets, that is subject to the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"), or the Code (each a "Plan"), unless the prospective
transferee of this Certificate provides the Trustee with an Opinion of Counsel
(or, if such prospective transferee is an insurance company or a bank collective
investment fund, a certification of facts) which establishes to the satisfaction
of the Depositor and the Trustee that such transfer will not result in a
violation of Section 406 of ERISA or Section 4975 of the Code or subject the
Depositor or the Trustee to any obligation in addition to those undertaken in
the Agreement or result in the imposition of an excise tax under Section 4975 of
the Code. Neither the Depositor nor the Trustee will be required to obtain or
pay for any such Opinion of Counsel or certification of facts on behalf of any
prospective transferee of this Certificate.

The Certificates are issuable in fully registered form and in denominations
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Initial Certificate Principal Balance, as requested by the Holder
surrendering the same. No service charge will be made for any such registration
of transfer or exchange, but the Trustee may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                                       43
<PAGE>

The Depositor, the Trustee and the Certificate Registrar and any agent of the
Depositor, the Trustee or the Certificate Registrar may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes,
and neither the Depositor, the Trustee, the Certificate Registrar nor any such
agent shall be affected by notice to the contrary.

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

The obligations created by the Agreement in respect of the Certificates and the
Trust Fund created thereby shall terminate upon payment to the
Certificateholders of all amounts held by or on behalf of the Trustee and
required to be paid to them pursuant to the Agreement following receipt of the
final distribution to be made on the last remaining Underlying Certificate in
the Trust Fund upon presentation and surrender of such Underlying Certificate in
accordance with the terms and conditions of the related Underlying Trust
Agreement. The Agreement provides for the Trustee to terminate each of the
Underlying Trusts by a terminating purchase upon the direction of a majority in
interest of the Class __ Certificates. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate of the Certificate Principal Balances of the Certificates at
the time of purchase being less than or equal to 5% of the aggregate of the
Initial Certificate Principal Balances of the Certificates at the Closing Date.

Unless the certificate of authentication hereon has been executed by the
Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

The recitals contained herein shall be taken as statements of the Depositor or
the Trustee, as the case may be.

IN WITNESS WHEREOF, the Trustee in its capacity as trustee under the Agreement
has caused this Certificate to be duly executed.

Dated:  _____ __, 200__

-------------------------------,as Trustee

By:
  --------------------------------- Authorized Officer

CERTIFICATE OF AUTHENTICATION

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

------------------------------------,as Certificate Registrar

By:
  --------------------------------- Authorized Officer

                                       44
<PAGE>

                                   ASSIGNMENT

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

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

--------------------------------------------------------------------------------
________________________________________________________________________________
Social Security or other identifying number of assignee:

(Please print or typewrite name and address including postal zip code of
assignee)

the beneficial interest evidenced by the within Trust Certificate and hereby
authorizes the registration of transfer of such interest to the above-named
assignee on the Certificate Register of the Trust Fund.

I (we) further direct the Certificate Registrar to issue a new Certificate of a
like denomination and class to the above named assignee and deliver such
Certificate(s) to the following address:___________________________

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

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

Dated:

_______________________________________Signature by or on behalf of assignor

_______________________________________Signature Guaranteed

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular, without
alteration or enlargement or any change whatever, and must be guaranteed by a
commercial bank or trust company on the continental United States or by a firm
or corporation having membership in any national securities exchange or in the
National Association of Securities Dealers, Inc.

                                       45
<PAGE>

                              PAYMENT INSTRUCTIONS

Payments shall be made, by wire transfer or otherwise, in immediately available
funds to ______________________________________________________ for the account
of ______________ _________________________________ account number
_______________, or, if mailed by check, to ____________________. Applicable
statements should be mailed to ________________________________________________.
This information is provided by _______________________________, the assignee
named above, or _____________________________, as its agent.

                                       46
<PAGE>

                                    EXHIBIT C

                         UNDERLYING CERTIFICATE SCHEDULE

1.

2.

3.

4.

5.

                                       47
<PAGE>

                                    EXHIBIT D

                          FORM OF TRANSFEREE AGREEMENT

_____________, 20__

Residential Resources, Inc., 333 North Wilshire Avenue, Anaheim, California
92801, Attention: President

[Trustee] [Address] [Address] Attention: Corporate Trust Services

Re: Residential Resources, Inc. Mortgage Pass-Through Certificates Series ____,
Class __

Gentlemen:

      _____________________________________ (the "Transferee") intends to
acquire from ________________________________________ (the "Transferor")
$________________ Initial Certificate Principal Balance of Residential
Resources, Inc. Mortgage Pass-Through Certificates, Series ____-_, Class ___
(the "Certificates"), issued pursuant to the Trust Agreement (the "Agreement")
dated _____ __, 20__ between Residential Resources, Inc., as depositor (the
"Depositor"), and _________________, as trustee (the "Trustee"). Capitalized
terms used herein and not otherwise defined shall have the meanings assigned
thereto in the Agreement.

      In connection with such acquisition, the Transferee hereby certifies and
agrees:

      1. The Transferee is acquiring the Certificates either (a) for its own
account or for accounts for which it exercises sole investment discretion and
not with a view to or for sale in connection with any distribution thereof,
subject nevertheless to any requirement of law that the disposition of the
Transferee's property shall at all times be and remain within its control, or
(b) for resale to "Qualified Institutional Buyers" within the meaning of Rule
144A under the 1933 Act and in accordance with the provisions of the Agreement.

      2. The Transferee has received, and has had an opportunity to review, (a)
a copy of the [Offering Circular] dated _____ __, 20__ relating to the
Certificates (the "Memorandum"), (b) a copy of the Agreement and (b)(c) such
other information concerning the Certificates, the Trust Fund and the Depositor
as has been requested by the Transferee and is relevant to the Transferee's
decision to purchase the Certificates. The Transferee has had any questions
arising from such review answered by the Depositor to the satisfaction of the
Transferee. If the Transferee was provided with a copy of the Memorandum, the
Transferee acknowledges that the Underlying Memoranda and the Distribution Date
Statements (each as defined in the Memorandum) were not prepared by the
Depositor or any of its affiliates and that neither the Depositor nor any of its
affiliates has made any representation or warranty as to the accuracy or
completeness of the information contained therein, and the Transferee agrees
that it will not look to the Depositor or any of its affiliates with respect to
any damage, liability, claim or expense arising out of, resulting from or in
connection with (i) any error or omission, or alleged error or omission,
contained therein or (ii) any information, development or event arising after
the respective dates thereof. Further, if the Transferee did not acquire the
Certificates from the Transferor in connection with the initial distribution of
the Certificates and was provided with a copy of the Memorandum related to the
original sale (the "Original Sale") of the Certificates by the Depositor, the
Transferee acknowledges that such Memorandum was provided to it by the
Transferor, that the Memorandum was prepared by the Depositor solely for use in
connection with the Original Sale and neither the Depositor nor any of its
affiliates participated in or facilitated in any way the acquisition of the
Certificates by the Transferee from the Transferor, and the Transferee agrees
that it will look solely to the Transferor and not to the Depositor or any of
its affiliates with respect to any damage, liability, claim or expense arising
out of, resulting from or in connection with (i) any error or omission, or
alleged error or omission, contained in the Memorandum or (ii) any information,
development or event arising after the date of the Memorandum.

                                       48
<PAGE>

      3. The Transferee is an "accredited investor" of the type specified in
Rule 3a-7(a)(2)(i) under the Investment Company Act of 1940, as amended (the
"1940 Act"), and has such expertise, knowledge and sophistication in financial
and business matters generally, and in financial and business matters related to
securities similar to the Certificates in particular, as to be capable of
evaluating the merits and risks of an investment in the Certificates. The
Transferee (or any account referred to above) is able to bear the economic risks
of such an investment.

      4. The Transferee will comply with all applicable federal and state
securities laws in connection with any subsequent resale of the Certificates by
the Transferee.

      5. The Transferee understands that (a) the Certificates have not been and
will not be registered under the Securities Act of 1933, as amended (the "1933
Act"), (b) the Depositor is not required to so register the Certificates, (c)
the Certificates may be resold only if registered pursuant to the provisions of
the 1933 Act, or if an exemption from such registration is available, (d) the
Certificates may not be resold if such transfer would result in the registration
of the Trust Fund as an "investment company" under the 1940 Act, (e) the
Agreement contains restrictions regarding the transfer of the Certificates, (f)
the Certificates will bear a legend to the foregoing effect and (g) a stop order
may be placed in the certificate register relating to the Certificates against
the transfer of any Certificate subject to compliance with the 1933 Act, the
rules and regulations thereunder and state securities laws.

      6. The Transferee is not an employee benefit plan subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or the Internal
Revenue Code of 1986, as amended (the "Code"), nor a Person acting, directly or
indirectly, on behalf of any such plan, and understands that registration of
transfer of any Certificate to any such employee benefit plan, or to any person
acting on behalf of such plan, will not be made unless such employee benefit
plan delivers a certification of facts and an opinion of its counsel, addressed
and satisfactory to the Trustee and the Depositor to the effect that such
transfer will not result in a violation of Section 406 of ERISA or Section 4975
of the Code or subject the Trustee or the Depositor to any obligation in
addition to these undertaken in the Agreement or result in the imposition of an
excise tax under Section 4975 of the Code.

      7. The Transferee 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 or 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 1933 Act, that
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law, that would result in the registration of
the Trust Fund as an "investment company" under the 1940 Act, or that would
require registration or qualification pursuant thereto. The Transferee will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of the Agreement. Without limiting the generality of the
foregoing sentence, if the Transferee sells any of the Certificates, the
Transferee will comply with any applicable requirements set forth in Section
4.02 of the Agreement, and if the Transferee sells any of the Certificates, the
Transferee will obtain from any purchaser any representations required pursuant
to Section 4.02 of the Trust Agreement.

Very truly yours,

-------------------------------------(Transferee)

By:_________________________________
Name:
Title:

                                       49
<PAGE>

                                    EXHIBIT E

                          FORM OF RULE 144A CERTIFICATE

Description of Rule 144A Securities, including numbers:

RESIDENTIAL RESOURCES, INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES ____,
CLASS ___

$____________ INITIAL CERTIFICATE PRINCIPAL BALANCE

ISSUED PURSUANT TO A TRUST AGREEMENT DATED _____ __, 20__ BETWEEN RESIDENTIAL
RESOURCES, INC., AS DEPOSITOR(THE "DEPOSITOR"), AND ____________________, AS
TRUSTEE

      The undersigned seller, as registered holder (the "Transferor"), 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 Transferor hereby
certifies the following facts: Neither the Transferor 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, 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, which would constitute a distribution of the Rule
144A Securities under the Securities Act of 1933, as amended (the "1933 Act"),
or which 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
Transferor 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
Transferor, the Trustee and the Depositor pursuant to Section 4.02 of the
Agreement 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. The Buyer has been furnished with all information regarding the Rule
144A Securities that it has requested from the Transferor and the Trustee.

      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 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 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.

                                       50
<PAGE>

      e. The Buyer is a "qualified institutional buyer" as that term is defined
in Rule 144A 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 account of other
qualified institutional buyers and understands that such Rule 144A 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 is not an employee benefit plan subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or the Internal
Revenue Code of 1986, as amended (the "Code"), nor a Person acting, directly or
indirectly, on behalf of any such plan, and understands that registration of
transfer of any Certificate to any such employee benefit plan, or to any person
acting on behalf of such plan, will not be made unless such employee benefit
plan delivers a certification of facts and an opinion of its counsel, addressed
and satisfactory to the Trustee and the Depositor to the effect that such
transfer will not result in a violation of Section 406 of ERISA or Section 4975
of the Code or subject the Trustee or the Depositor to any obligation in
addition to these undertaken in the Agreement or result in the imposition of an
excise tax under Section 4975 of the Code.

      [3/4].If the Buyer was provided with a copy of the [Offering Circular]
dated _____ __, 20__ (the "Memorandum") relating to the Rule 144A Securities,
the Buyer acknowledges that the Underlying Memoranda and the Distribution Date
Statements (each as defined in the Memorandum) were not prepared by the
Depositor or any of its affiliates and that neither the Depositor nor any of its
affiliates has made any representation or warranty as to the accuracy or
completeness of the information contained therein, and the Buyer agrees that it
will not look to the Depositor or any of its affiliates with respect to any
damage, liability, claim or expense arising out of, resulting from or in
connection with (i) any error or omission, or alleged error or omission,
contained therein or (ii) any information, development or event arising after
the respective dates thereof.

      [4/5]. 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 Transferor  Print Name of Buyer

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

Taxpayer Identification: Taxpayer Identification:

No. ____________________________________

Date: __________________________________

Date:___________________________________

                                       51
<PAGE>

                              ANNEX 1 TO EXHIBIT E

            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.

      ___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.

      (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.

      ___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, 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.

                                       52
<PAGE>

      ___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 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 Certificates
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.

      6. Will the Buyer be purchasing the Rule 144A Securities only for the
Buyer's own account?

Yes____ No____.

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 during the
period between the date of this certification and the date

                                       53
<PAGE>

the Buyer purchases the Rule 144A Securities. Unless such notice is given, the
Buyer's purchase of the 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:
     ----------------------------------

                                       54
<PAGE>

                              ANNEX 2 TO EXHIBIT E

            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.

      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.

                                       55
<PAGE>

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

Print Name of Buyer

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

IF AN ADVISER:

Print Name of Buyer

Date:
     -----------------------------------

                                       56
<PAGE>

                                    EXHIBIT F

                        TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF  ______________________ )
                                 )ss.
COUNTY OF ______________________ )

      ___________________, being first duly sworn, deposes, represents and
warrants:

      1. That he is [Title of Officer] of [Name of Owner] a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ___________] [the United States], (the "Owner"), record or beneficial
owner of Residential Resources, Inc. Mortgage Pass-Through Certificates, Series
____, Class __ (the "Class __ Certificates"), on behalf of which he makes this
affidavit and agreement. The Class __ Certificates were issued pursuant to the
Trust Agreement dated _____ __, 20__ (the "Agreement") between Residential
Resources, Inc., as depositor, and __________, as trustee (the "Trustee").

      2. That the Owner (i) is and will be a "Permitted Transferee" as of
_______________, 200__ and (ii) is acquiring the Class __ Certificates for its
own account or for the account of another Owner from which it has received an
affidavit in substantially the same form as this affidavit. A "Permitted
Transferee" is any person other than a "disqualified organization" or a
Non-United States Person. For this purpose, a "disqualified organization" means
any of the following: (i) the United States, any State or political subdivision
thereof, any possession of the United States, or any agency or instrumentality
of any of the foregoing (other than an instrumentality which is a corporation if
all of its activities are subject to tax and, except for the Freddie Mac, a
majority of its board of directors is not selected by such governmental unit),
(ii) a foreign government, any international organization, or any agency or
instrumentality of any of the foregoing, (iii) any organization (other than
certain farmers' cooperatives described in Section 521 of the Internal Revenue
Code of 1986 (the "Code")) which is exempt from the tax imposed by Chapter 1 of
the Code (unless such organization is subject to the tax imposed by Section 511
of the Code on unrelated business taxable income), (iv) rural electric and
telephone cooperatives described in Section 1381(a)(2)(C) of the Code and (v)
any other Person so designated based upon an Opinion of Counsel that the holding
of an Ownership Interest in a Class __ Certificate by such Person may cause the
Trust Fund or any Person having an Ownership Interest in any Class of
Certificates, other than such Person, to incur a liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the Transfer
of an Ownership Interest in a Class __ Certificate to such Person. The terms
"United States", "State" and "international organization" shall have the
meanings set forth in Section 7701 of the Code or successor provisions.

      3. That the Owner is aware (i) of the tax that would be imposed on the
Trust Fund if a Class __ Certificate is transferred to a disqualified
organization under Section 860E(e)(6) of the Code and that any Owner that is a
disqualified organization will be obligated to reimburse the Trust Fund for any
such tax; (ii) that the Underlying Residual Certificates may be "noneconomic
residual interests" within the meaning of Treasury regulation Section 1.860E-
1(c)(2) and that the transferor of an ownership interest in a "noneconomic
residual interest" will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
is to enable the transferor to impede the assessment or collection of tax; and
(iii) that the Underlying Residual Certificates may have "tax avoidance
potential" within the meaning of Treasury regulation Section 1.860G-3(a)(2) and
that the transferor of an ownership interest in an Underlying Residual
Certificate with "tax avoidance potential" to a Non-United States Person will
remain liable for any taxes due with respect to the income on such certificate.

      4. That the Owner is aware of the tax imposed on a "pass-through entity"
holding the Class __ Certificates if at any time during the taxable year of the
pass-through entity a disqualified organization is the record holder of an
interest in such entity. For this purpose, a "pass through entity" includes a
regulated investment company, a real estate investment trust or common trust
fund, a partnership, trust or estate, and certain cooperatives.

                                       57
<PAGE>

      5. That the Owner is aware that the Trustee will not register the transfer
of any Class __ Certificates unless the transferee, or the transferee's agent,
delivers to the Trustee, among other things, an affidavit in substantially the
same form as this affidavit. The Owner expressly agrees that it will not
consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

      6. That the Owner consents to any additional restrictions or arrangements
that shall be deemed necessary upon advice of counsel to constitute a reasonable
arrangement to ensure that the Class __ Certificates will only be owned,
directly or indirectly, by Owners that are Permitted Transferees.

      7. That the Owner's taxpayer identification number is __________.

      8. That the Owner has reviewed the restrictions set forth on the face of
the Class __ Certificates and the provisions of Section 4.02 of the Agreement
under which the Class __ Certificates were issued (and, in particular, the Owner
is aware that such Section authorizes the Trustee to deliver payments to a
person other than the Owner and negotiate a mandatory sale by the Trustee in the
event that the Owner holds such Class __ Certificates in violation of Section
4.02 of the Agreement); and that the Owner expressly agrees to be bound by and
to comply with such restrictions and provisions.

      9. That the Owner is not acquiring and will not transfer the Class __
Certificates in order to impede the assessment or collection of any tax.

      10. That the Owner anticipates that it will, so long as it holds the Class
__ Certificates, have sufficient assets to pay any taxes owed by the holder of
such Class __ Certificates.

      11. That the Owner has no present knowledge that it may become insolvent
or subject to a bankruptcy proceeding for so long as it holds the Class __
Certificates.

      12. That the Owner has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as any of the Class __
Certificates remain outstanding. In this regard, the Owner hereby represents to
and for the benefit of the Person from whom it acquired the Class __
Certificates that the Owner intends to pay taxes associated with holding the
Class __ Certificates as they become due, fully understanding that it may incur
tax liabilities in excess of any cash flows generated by the Class __
Certificates.

      13. That the Owner is not acquiring the Class __ Certificates with the
intent to transfer the Class __ Certificates to any person or entity that will
not have sufficient assets to pay any taxes owed by the holder of such Class __
Certificates, or that may become insolvent or subject to a bankruptcy
proceeding, for so long as the Class __ Certificates remain outstanding.

      14. That Owner will, in connection with any transfer that it makes of the
Class __ Certificates, obtain from its transferee the representations required
by Section 4.02(d) of the Agreement under which the Class __ Certificates were
issued and will not consummate any such transfer if it knows, or knows facts
that should lead it to believe, that any such representations are false.

      15. That Owner will, in connection with any transfer that it makes of the
Class __ Certificates, represent and warrant that it is not transferring the
Class __ Certificates to impede the assessment or collection of any tax and that
it has no actual knowledge that the proposed transferee: (i) has insufficient
assets to pay any taxes owed by such transferee as holder of the Class __
Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding,
for so long as the Class __ Certificates remain outstanding and; (iii) is not a
"Permitted Transferee".

                                       58
<PAGE>

      16. That the Owner is a United States Person.

      IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on
its behalf, by its [TITLE OF OFFICER], attested by its [Assistant Secretary],
this ___ day of _______, 200__.

[NAME OF OWNER]

By:
   -----------------------------------
   Name: [NAME OF OFFICER]
   Title:[TITLE OF OFFICER]

ATTEST:

--------------------------------------
[Assistant] Secretary

      Personally appeared before me the above-named [NAME OF OFFICER], known or
proved to me to be the same person who executed the foregoing instrument and to
be a [TITLE OF OFFICER] of the Owner, and acknowledged to me that he or she
executed the same as his or her free act and deed and the free act and deed of
the Owner.

Subscribed and sworn before me this _____ day of _______, 200_.

 ________________________________________ NOTARY PUBLIC

COUNTY OF _________________________ )
ss:                                 )
STATE OF  _________________________ )

      My Commission expires the _______ day of __________________ , 20__.

                                       59
<PAGE>

                                    EXHIBIT G

           FORM OF ERISA REPRESENTATION LETTER FOR INSURANCE COMPANIES
                        BANK COLLECTIVE INVESTMENT FUNDS

 ______________, 200__

Residential Resources, Inc., 333 North Wilshire Avenue, Anaheim, California
92801 Attention: President

[Trustee] [Address] [Address] Attention: Corporate Trust Services

Re: Residential Resources, Inc. Mortgage Pass-Through Certificates Series
____-_, Class ___

Gentlemen:

      __________________________________ (the "Transferee") intends to acquire
from _____________________ (the "Transferor") $____________ Initial Certificate
Principal Balance of Residential Resources, Inc. Mortgage Pass-Through
Certificates, Series ____-_, Class ___ (the "Certificates"), issued pursuant to
a Trust Agreement (the "Agreement") dated _____ __, 20__ between Residential
Resources, Inc., as depositor (the "Depositor"), and ___________________, as
trustee (the "Trustee"). Capitalized terms used herein and not otherwise defined
shall have the meanings assigned thereto in the Agreement.

      The Transferee hereby certifies, represents and warrants to, and covenants
with, the Depositor and the Trustee that:

      1. The Certificates will not be transferred to any employee benefit plan
or other retirement arrangement including individual retirement accounts and
Keogh plans that is subject to Section 406 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 of the foregoing, a "Plan").

      2. Either (a) the Transferee is an insurance company and (i) the source of
funds used to purchase the Certificates, is an "insurance company general
account" (as such term is defined in Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60") issued by the United States Department of Labor (the "DOL")
and there is no plan with respect to which the amount of such general account's
reserves and liabilities for contracts held by or on behalf of such Plan and all
other plans maintained by the same employer (or "affiliate" thereof, as defined
in PTCE 95-60), or by the same employee organization, exceed 10% of the total
reserves and liabilities of such general account (as determined under PTCE
95-60) as of the date of acquisition of the Certificates or (ii) the source of
funds used to purchase the Certificates is an "insurance company pooled separate
account" (as such term is defined in Prohibited Transaction Class Exemption 90-1
issued by the DOL ("PTCE 90-1")) and that there is no Plan with respect to which
the amount of such general account's reserves and liabilities for contracts held
by or on behalf of such Plan and all other Plans maintained by the same employer
(or any "affiliate" thereof, as defined in PTCE 90-1), or by the same employee
organization, exceed 10% of the total of all reserves and liabilities of such
pooled separate account (as determined under PTCE 90-1) as of the date of
acquisition of the Certificates or (b) the Transferee is a bank collective
investment fund and the source of funds used to purchase the Certificates is a
"collective investment fund" (as defined in Prohibited Transaction Class
Exemption 91-38 issued by the DOL ("PTCE 91-38")) and that there is no Plan, the
interests of which together with the interests of any other Plans maintained by
the same employer or employee organization in the collective investment fund
does not exceed 10% of the total of all assets in the collective investment fund
(as determined under PTCE 91-38) as of the date of acquisition of the
Certificates.

                                       60
<PAGE>

Very truly yours,

(Transferee)

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

                                       61

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